SEVERSTAL Social and Cultural Investments

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» Company profile

» Corporate social responsibility

» Charity

» “Museums of the Russian North” charitable Program

Content

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» Company profile

» Corporate social responsibility

» Charity

» “Museums of the Russian North” charitable Program

Content

4

» SeverStal is an international steel producer with a listing on the Russian Trading System and the London Stock Exchange.

» Incorporated in 1993, the company focuses on high value-added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe.

Company Profile

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» Number of employees: 100.000. Including in Russia 86.500

» Volume of output: 17.6 mln tons of steel (16.8 mln tons in 2005) 14 mln tons of ore (12.7 mln tons in 2005) 9.7 mln tons of coal and coal concentrate (8.6 mln tons in 2005)» Revenues: USD 12.4 bn» Investments in production development: USD 1.2 bn

Including in Russia: USD 932 m» Some 10% of the stock listed as GDR`s on the London

Stock Exchange, November 2006» Dividend payments: 32.9% from net profit

Company Profile: 2006 Figures

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Company Profile: Severstal among largest steel-making companies

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Mln. tonnes of crude steel, Y2006

Source: companies’ reports

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Company Profile: SeverStal around the world

Piombino Dnepropetrovsk

Olenegorsk

Kostomuksha

St.Petersburg

Vorkuta

Volgograd

Kemerovo

Cherepovets

MoscowOrel

DearbornLes Dunes

Fos Sur Mer

Elland

Columbus *

* Consolidation into SeverStal is expected in late 2007

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Company Profile: Severstal Structure

RUSSIA

Cherepovets Metallurgical

Complex

EUROPENORTH

AMERICA

mining companiesmetallurgy

Severgal

Izhora Pipe Plant

Severstal-Metiz

OLKON

Karelskiy Okatysh

Berezovsi-based branch of Severstal-

Resource

Vorkutaugol

Ascometal

Piombino

SeverstalNorth America

Lucchini

Volgograd Plant

DneprometizCarrington

WireOrel Plant

Cherepovets Plant

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Company's value growth through:

» Production efficiency growth and low cost leadership at all markets

» Creation of new works and widening of product line

» Measured approach to M&A

» Production of niche and high value-added products

» Creation of experience- and technology-sharing system inside the company

Company Profile: Strategic Priorities

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» Company profile

» Corporate social responsibility

» Charity

» “Museums of the Russian North” charitable Program

Content

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Theory of Stakeholders Is a Cornerstone of the Corporate Philosophy

empoyees

Investorcommunity

management

Severstalsuppliers / consumers

local communitie

s

regional and

national authorities

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» USD 50.8 M allocated for social programs and charity projects in 2006

» In 2006, Severstal placed fourth in the first Russian corporate social responsibility rating for 2006 among 50 Russian companies according to AccountAbility – one of the most respectful organizations in the field of social reporting

» Severstal has a well-developed social infrastructure, programs of medical insurance and extra pension schemes for employees

» Severstal has been awarded a Certificate of Conformity with Environmental Management System in the context of the International Standard ISO 14001-2004

Corporate Responsibility

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Social Investments of the Company (Russian companies)*

18%

14%

14%13%

9%

4%

7%

12%

9%

health improvement

health and safety

housing

recreation activities

providing employees with food

social support of employees

retired employees

social infrastructure

charity

* According to Russian Accounting standarts

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» Company profile

» Corporate social responsibility

» Charity

» “Museums of the Russian North” charitable Program

Content

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Charity: key areas

Historical and Cultural Heritage

» Bolshoi Theatre

» Mariinskiy Theatre

» Tretiakov Art Gallery

» Russian Museum

» Valaam Monastery

» Cherepovets Museum Association

» Museum of Frescoes by Dionisius

Contemporary Culture» Open Competition of Small

Grants for Non-Profit Organizations

» Sergei Andriyaka's Watercolour School

» Moscow International Film Festival

» Theatrical Film Festival "Golden Knight"

» International Telecine Forum "All Together"

Children and future

» "Road to Home" Project

» Orphans Assistance Program of Severstal-resurs

» Participation of a student team of the SPGU in a WTO contest

Sport

» Russian Chess Federation

» Women's Volleyball Club "Dynamo" (Moscow)

» Hockey Team "Severstal“

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Charity Projects of Lucchini and SNA

» Lucchini• tour of Mariinsky Theatre in the legendary Santa Cecilia Academy in Italy

in 2006• donations to the aid fund for children living in poor regions of the planet• participation in programs of the Italian National Organization for Animal

Protection (ENPA)• Sponsorship of sport events in the places of business

» Severstal North America• Detroit Institute of Arts• tour of the Mariinsky Theatre across the USA in 2006• Avon Foundation – participation in unhealthy children support activities• Child Abuse & Neglect of Oakland County – organization of children's

holidays • United Way of Southeastern Michigan• Dearborn Symphony Orchestra

The companies are involved in a traditional for the international practice charity system through public funds, play an active role in the life of local communities:

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» Company profile

» Corporate social responsibility

» Charity

» “Museums of the Russian North” charitable Program

Content

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Museums of the Russian North

» The aim of this program is to enable museums to develop, enhancing their role as centres of cultural life, and lay foundations for a new social and cultural environment in the Russian regions

» The program is realized with the help of Federal Agency of culture and cinematography

» The grant funding for the program was fully financed by Severstal and constituted over $400,000 which will be distributed through an open tender among the museums of 12 regions of Russian North

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Museums of the Russian North: key categories of the tender

» Internet and multimedia

» Renovation of museums exhibitions

» Organisation in the Russian provinces of exhibitions from the funds of leading Russian and foreign museums or galleries using modern exhibition technologies

» Unveiling of arts masterpieces of the Russian provinces, scientific attribution of unknown works with the aid of renowned experts

» Curating exhibitions based on the research of cultural and artistic values of the Russian North provinces

» Publishing projects

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Museums of the Russian North: Winners

» The Kizhi state open-air museum of history, architecture and ethnography (Petrozavodsk, Republic of Karelia);

» National Gallery of the Republic of Komi (Syktyvkar, Republic of Komi);

» Fine Arts museum of Republic of Karelia (Petrozavodsk, Republic of Karelia);

» Kirillo-Belozersky museum of history, architecture arts museum (Kirillov, Vologda Region);

» Museum Association “Arts culture of Russian North” (Arkhangelsk, Arkhangelsk region);

» The Velikiy Ustyug state arts open-air museum of history, architecture (Velikiy Ustyug, Vologda Region)

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Thank you for attention!I would be happy to take your questions.

Investor Relations

Dmitry Druzhinin

druzhinin@severstal.ru

Tel: +7 (495) 540 7766, Fax: +7 (495) 150 8800

Media Relations

Olga Antonova

antonova@severstal.ruTel/fax: +7 (495) 540 7766

Corporate Social Responsibility

Alexei Germanovich, Deputy General Director

csr@severstal.ruTel/fax: +7 (495) 540 7766

www.severstal.com