RusAl:

A New Player in the Premier League

2001 Russian Equities Conference Moscow, 12 September 2001

• RusAl Foundation: Following the Global Trend • Company Overview • Corporate Strategy • Financial Strategy

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Recent Aluminium Industry Mergers

• RusAl foundation falls in line with a recent global industry trend March 1998 August 1999 Alcoa (USA) and Alumax (USA) Alcoa (USA) and Reynolds (USA) August 1999 Alcan (Canada) and Algroup (Switzerland) March 2000 March 2001

RusAl foundation through merger of largest CIS aluminium producers

BHP (Australia) and Billiton (S. Africa) 3

Industry Leader...

• Second largest in the world’s aluminium industry • Fourth largest in the global metals industry (by Metal Bulletin) 4.2

Primary Aluminium Capacity (mln MT) 2.2

1.9

1.1

1.0

0.8

Alcoa RusAl Source: Company reports Alcan Pechiney Billiton Norsk Hydro 4

… Not Only in Size

• High margin combined with low leverage EBITDA/Sales (2000) 26% 27% 22% 19% 18% Financial Debt/Equity (31 December 2000) 0.65

0.67

0.52

0.43

0.72

0.32

9% Pechiney Alcan Alcoa BHP Billiton Norsk Hydro RusAl Source: Company reports RusAl Pechiney Alcan BHP Billiton Alcoa Norsk Hydro 5

Reasons to Merge

• Increased shareholder value as a result of:

Synergy

Develop vertical integration Combine management experience Improve efficiency due to centralisation of product and cash flows Reduce administrative expenses Re-establish historical cooperation between production units &

Scale

Leading position in the national economy and world aluminium industry Multiply investment resources and political power Facilitate access to capital markets Potentially increase market capitalisation 6

• RusAl Foundation: Following the Global Trend • Company Overview • Corporate Strategy • Financial Strategy

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Production Assets

Nikolaev Alumina Refinery* (80%) Oradia Alumina Refinery* (100%) Rostar (100%) Krasnoyarsk Metals Plant (29%) Dmitrov Rolling Mill (79%) Bratsk Aluminium Krasnoyarsk Aluminium Smelter (66%) Smelter (98%) ArmenAl* (44%) SBK (Guinea) Belaya Kalitva Metals Plant (55%) Samara Metals Plant (88%) Achinsk Alumina Refinery (70%) Sayansk Aluminium Smelter (88%) Sayansk Foil Mill (88%)

Consolidated Production Capacity

• 2.5 mln MT of bauxite • 2.3 mln MT of alumina • 2.2 mln MT of primary aluminium and alloys • 0.7 mln MT of aluminium semi-products • 0.1 mln MT of aluminium foil and flexible aluminium packaging materials • 1.3 billion of aluminium beverage cans Note: Equity ownership shown in brackets * Owned by RusAl’s shareholders 8

Product Flow Mln MT Own nepheline

Achinsk

Bauxite

SBK 1.5

Nikolaev Others 2.0

Cemtrade Others

Alumina

0.9

1.1

0.2

2.5

Bratsk Krasnoyarsk Sayansk Others 0.9

0.8

0.4

0.4

Primary Aluminium

2.0

Export 0.2

Domestic market 0.3

Fabricated Products

Samara Belaya Kalitva KraMZ ArmenAl Sayansk Foil Dmitrov Rostar 0.2

Aluminium roll Foil C o n s u m r e s Cans, etc.

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• • • • • • •

Targets and Achievements in the First Year of Operations Consolidate assets

• Established full control over subsidiaries through equity buy-out • Set up the holding company via contribution of aluminium assets • Acquired new capacities in bauxite, alumina and aluminium products

Introduce effective management structure

• Appointed professional management team and established Moscow Headquarters with over 500 staff members • Centralised product and cash flows

Reduce costs

• Decreased average power tariff paid by the Group’s smelters by 30% through new contracts with electricity providers • Introduced centralised purchases and competitive bidding system

Develop strategy

• Developed and approved corporate strategy and investment priorities

Increase transparency Introduce risk management

• US GAAP financial statements audited by PricewaterhouseCoopers • Technical appraisal reports on RusAl’s smelters produced by Kaiser Engineering • Independent asset appraisal performed by American Appraisal • Developed and implemented comprehensive insurance strategy (including property damage, business interruption and cargo insurance) with participation of top-tier insurance companies

Access bank financing

• Over $300 mln in trade finance by Western banks • Over $400 mln in credit facilities by Russian banks 10

• RusAl Foundation: Following the Global Trend • Company Overview • Corporate Strategy • Financial Strategy

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Key Strategic Objectives

• Balance production capacity • Expand margins • Reduce costs • Establish world-class management processes • Meet international standards of environmental management and quality control • Enter capital markets 12

Balance Production Capacity

• By 2005, RusAl intends to produce at own facilities 100% of the required alumina and up to 50% of the required bauxite via – expansion of existing alumina capacity by up to 30% – acquisition and building of new capacity in CIS, Guinea, etc.

– potential strategic partnerships to develop large scale greenfield projects Alumina Production 4.8

1.8

+13% 2.0

+15% 2.3

1999* 2000* * pro-forma combination of RusAl's production assets 13 2001F 2005F

Expand Margins

• Increase production of alloys and fabricated products at 26% and 12% annual rate respectively • Increase sales to end users and regional international traders from 30% in 2001 to 70% in 2003 Sales Structure 2,359 222 37 2,415 275 98 2,446 320 313 2,500 500 Fabricated products 800 Aluminium alloys 2,100 2,042 1,813 1,200 Primary aluminium 1999* 2000* * pro-forma combination of RusAl's production assets 2001F 14 2005F

Reduce Costs

• Secure against raw materials price volatility by raising own bauxite and alumina production • Enter long-term contracts with energy suppliers • Reduce transportation costs via launch of own expeditor • Further optimise logistics • Upgrade existing facilities (US$100-150 mln in annual capex) to achieve by 2005: – reduction of electric power consumption by 9% per MT of primary aluminium – reduction of anode consumption by 6% per MT of primary aluminium – increase in average pot life by 12% 15

• RusAl Foundation: Following the Global Trend • Company Overview • Corporate Strategy • Financial Strategy

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Financial Strategy

• Maintain working capital financing at up to $700-800 mln • Restructure existing debt by replacing short-term and high-interest loans for long-term low-interest financing • Use hard currency debt to match export revenues • Consider financing selected investment projects by international project finance institutions • Utilise internally generated cash flows for investment projects and acquisitions • Lower weighted average cost of capital through long-term unsecured finance including – corporate term loans – capital markets instruments 17

Experience In Raising Finance

• Over $300 mln in trade finance

including:

 $100 mln credit facility by WestLB  $125 mln club deal by European banks  $47 mln domestic syndication by Raiffeisenbank • Over $400 mln in corporate loans

including :

 $200 mln credit line by Sberbank  $100 mln loans by DIB  $75 mln loans by Rosbank  At least two club deals worth up to US$150 mln to be completed by the year end 18

Issues to Address

•

Transparency

• • • •

Completed

Issued US GAAP financial statements audited by PricewaterhouseCoopers Independent asset appraisal and engineering reports produced by Western consultants Received approval by Russian Ministry for Antimonopoly Policy Key assets contributed to the holding company • • •

To Be Done

Complete consolidation of all Group’s assets Credit rating by international rating agencies Establish transparent dividend policy •

Investor Awareness

• • Established Investor Relations function Appointed public relations consultants • Ensure enhanced information flow between the Company and investors – – regular investor meetings Web-site 19

Proposed Capital Markets Timeline

Early 2002 • Potential issuance of structured notes backed by export receivables End 2002 • Potential international bond offering (e.g. Eurobond) 2004 • Potential international equity offering 20

Statements made in the course of this presentation which describe the Company’s intentions, expectations or predictions may be «forward-looking statements». The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and that the Company’s actual actions or results could differ materially from those expressed or implied in such forward-looking statements.

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