Russian Metals Industries Report 2011 Contents

Russian Non Ferrous Metals Industries Report March 2011

TABLE OF CONTENTS

RUSSIA’S NON-FERROUS METALS INDUSTRY: STRUCTURE

RUSSIA’S NON-FERROUS METALS INDUSTRY: COMPARATIVE PROFITABILITY OF SUBINDUSTRIES IN 2008-2010

RUSSIA’S NON-FERROUS METALS INDUSTRY IN 2010-2011

Non-Ferrous Metals Reserves Non-Ferrous Metals Output Non-Ferrous Metals Exports

RUSSIA’S NON-FERROUS SECTOR: FINANCIAL PERFORMANCE OF MAJOR PRODUCERS

Revenue and income growth ROS, ROA, ROE

RUSSIA’S NON-FERROUS METALS INDUSTRY IN 2010-2011: KEY INDUSTRIES

Aluminum Industry Major Trends Bauxite Alumina Aluminum United Company Russian Aluminum in 2010-2011 Structure Operations summary UC RUSAL: Key Consolidated IFRS Financials and Ratios Financials and Ratios of Key Companies Copper Industry Major Trends Ural Mining and Metallurgical Company in 2010-2011 Structure Operations summary Urals Mining and Metals Company: Key Consolidated IFRS Financials and Ratios Financials and Ratios of Key Companies Russian Copper Company in 2010-2011 Structure Operations summary Financials and Ratios of Key Companies Nickel Industry Major Trends Norilsk Nickel Mining and Metallurgical Company in 2010-2011 Structure Operations Summary Norilsk Nickel: Key Consolidated IFRS Financials and Ratios Minor Nickel Producers in 2010-2011 Yuzhuralnickel Operations Summary Key Financials and Ratios Ufaleynickel Operations Summary Key Financials and Ratios Zinc and Lead Industry Major Trends Chelyabinsk Zinc Plant in 2010-2011 Operations Summary Chelyabinsk Zinc Plant: Key Consolidated IFRS Financials and Ratios Electrozinc in 2010-2011 Operations Summary Key Financials and Ratios Titanium and Magnesium Industry Major Trends VSMPO-Avisma in 2010-2011 Structure Operations Summary VSMPO-Avisma: Key Consolidated IFRS Financials and Ratios Key Financials and Ratios to RAS Solikamsk Magnesium Plant in 2010-2011 Operations Summary Key Financials and Ratios

LIST OF TABLES

Table 1 Comparative Profitability of Subindustries of Russia’s Non-Ferrous Metals Industry in 2008-2010 Table 2 Ranking of Key Ores and Concentrates of Russia’s Non-Ferrous Metals Industry by Growth Rate in Output in 2010 Table 3 Ranking of Key Metals and Rolled Stock of Russia’s Non-Ferrous Metals Industry by Growth Rate in Output in 2010 Table 4 Ranking of Russia’s Major Non-Ferrous Metals Producers* by Sales Revenue to RAS in Jan.-Sept. 2010, RuB mln Table 5 Ranking of Russia’s Major Non-Ferrous Metals Producers by Operating Income to RAS in Jan.-Sept. 2010, RuB mln Table 6 Ranking of Russia’s Major Ferrous Metals Producers by Net Income to RAS in Jan.-Sept. 2010, RuB mln Table 7 Ranking of Russia’s Major Ferrous Metals Producers by Return on Sales (ROS) in Jan.-Sept. 2010, RuB mln Table 8 Ranking of Russia’s Major Ferrous Metals Producers by Return on Assets (ROA) in Jan.-Sept. 2010, RuB mln Table 9 Ranking of Russia’s Major Ferrous Metals Producers by Return on Equity (ROE) in Jan.-Sept. 2010, RuB mln Table 10 Russia’s Output of Bauxite, Alumina, and Aluminum in 2005-2010, ’000 tonnes Table 11 Breakdown of Russia’s Bauxite Imports by Countries in 2009-2010 Table 12 Breakdown of Russia’s Alumina Imports by Countries in 2009-2010 Table 13 Breakdown of Russia’s Aluminum Exports by Countries in 2009-2010 Table 14 UC RUSAL Production Volumes in 2009-2010, thousand tonnes Table 15 UC RUSAL Rail Shipments of Aluminum by Plants in 2010, thousand tonnes Table 16 UC RUSAL Rail Shipments of Alumina by Plants in 2010, thousand tonnes Table 17 Breakdown of Russia’s Copper Exports by Countries in 2009-2010 Table 18 UMMC’s Production Volumes in 2008-2010, ’000 tonnes Table 19 UMMC’s Production Volumes in 2008-2009, tonnes Table 20 Karabashmed Production Volumes in 2009-2010, tonnes Table 21 Breakdown of Russia’s Nickel Exports by Countries in 2009-2010 Table 22 Norilsk Nickel’s Reserves Table 23 Norilsk Nickel Production Volumes* in 2008-2010, ’000 tonnes Table 24 Yuzhuralnickel Production Volumes in 2008-2010, ’000 tonnes Table 25 Breakdown of Russia’s Zinc Exports by Countries in 2009-2010 Table 26 Chelyabinsk Zinc Plant’s Production Volumes in 2008-2010, ’000 tonnes Table 27 Breakdown of Russia’s Titanium and Alloys Exports by Countries in 2009-2010 Table 28 Breakdown of Russia’s Magnesium and Alloys Exports by Countries in 2009-2010 Table 29 VSMPO-Avisma Production Volumes in 2007-2010, ’000 tonnes Table 30 Solikamsk Magnesium Plant Production Volumes in 2007-2009, ’000 tonnes

LIST OF GRAPHS

Graph 1 Ranking of Subindustries of Russia’s Non-Ferrous Metals Industry by Operating Margin in Jan-Sept 2010 Graph 2 Ranking of Subindustries of Russia’s Non-Ferrous Metals Industry by ROS in Jan.-Sept. 2010 Graph 3 Ranking of Subindustries of Russia’s Non-Ferrous Metals Industry by ROA in Jan.-Sept. 2010 Graph 4 Ranking of Subindustries of Russia’s Non-Ferrous Metals Industry by ROE in Jan.-Sept. 2010 Graph 5 Estimated Value of Key Non-Ferrous Metals Produced in Russia in 2009-2010, $ million Graph 6 Growth of Russia’s Non-Ferrous Metals Industry in 1990 – 2010, year-to-year increase Graph 7 Growth of Russia’s Non-Ferrous Metals Industry in 1998-2009, 1998=100 Graph 8 Russia’s Exports of Aluminum, Nickel and Copper in 2002-2010 by Value, $ ’000 Graph 9 Russia’s Exports of Aluminum, Nickel and Copper in 2002-2010 by Volume, ’000 tonnes Graph 10 Russia’s Production of Bauxite, Alumina, and Aluminum in 1996-2010, 1996=100 Graph 11 Russia’s Production of Aluminum in 1998-2010, 000’ tonnes Graph 12 Russia’s Monthly Growth Rates of Bauxite Production in 2010-February 2011 Graph 13 Russia’s Imports of Bauxite in 2004- 2010, thousand tonnes Graph 14 Breakdown of Russia’s Alumina Production by Producers Graph 15 Russia’s Monthly Growth Rates of Alumina Production in 2010-February 2011 Graph 16 Russia in World Aluminum Production in 2007-2010 Graph 17 Russia’s Monthly Growth Rates of Primary Aluminum Production in 2010-February 2011 Graph 18 Russia’s Monthly Growth Rates of Aluminum Products Output in 2010-February 2011 Graph 19 Russia’s Exports of Aluminum 2002-2010 by Volume, ’000 tonnes Graph 20 Breakdown of Russia’s Exports of Aluminum in by Items Graph 21 Russia’s Refined Copper Production in 1998-2010, 000′ tonnes Graph 22 Russia’s Monthly Growth Rates of Copper Production in 2010-February 2011 Graph 23 Russia’s Monthly Growth Rates of Copper Products Output in 2010-February 2011 Graph 24 Breakdown of Russia’s Copper Production by Companies in 2005-2009 Graph 25 Russia’s Exports of Refined Copper in 2002-2010, ’000 tonnes Graph 26 Breakdown of Russia’s Exports of Copper by Items Graph 27 Russia in World Nickel Production in 2005-2009, 000′ tonnes Graph 28 Russia’s Monthly Growth Rates of Nickel Production in 2010-February 2011 Graph 29 Breakdown of Russian Nickel Production by Companies Graph 30 Russia’s Nickel Output in 1998-2010, ‘000 tonnes Graph 31 Russia’s Nickel Exports in 2002-2010, ’000 tonnes Graph 32 Breakdown of Russia’s Exports of Nickel by Items Graph 33 Russia’s Lead and Zinc Output in 1998-2010, ‘000 tonnes Graph 34 Russia’s Monthly Growth Rates of Zinc Production in 2010-February 2011 Graph 35 Breakdown of Russia’s Zinc Production by Companies Graph 36 Russia’s Zinc Exports in 2004-2010, ’000 tonnes Graph 37 Russia’s Monthly Growth Rates of Titanium Production in 2010-February 2011 Graph 38 Russia’s Monthly Growth Rates of Magnesium Production in 2010-February 2011