RusAl: A New Player in the Premier League

1. RusAl:A New Player in the Premier League 2001 Russian Equities Conference Moscow, 12 September 2001

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

3. Recent Aluminium Industry Mergers • RusAl foundation falls in line with a recent global industry trend March 1998 Alcoa (USA) and Alumax (USA) August 1999 Alcoa (USA) and Reynolds (USA) August 1999 Alcan (Canada) and Algroup (Switzerland) RusAl foundation through merger of largest CIS aluminium producers March 2000 BHP (Australia) and Billiton (S. Africa) March 2001

4. Industry Leader... • Second largest in the world’s aluminium industry • Fourth largest in the global metals industry (by Metal Bulletin) Source: Company reports

5. … Not Only in Size • High margin combined with low leverage EBITDA/Sales (2000) Financial Debt/Equity (31 December 2000) Source: Company reports

6. 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 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 Reasons to Merge • Increased shareholder value as a result of: Synergy & Scale

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

8. Production Assets Rostar (100%) Bratsk Aluminium Smelter (98%) Krasnoyarsk Metals Plant (29%) Nikolaev Alumina Refinery* (80%) Dmitrov Rolling Mill (79%) Krasnoyarsk Aluminium Smelter (66%) • 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 Oradia Alumina Refinery* (100%) Achinsk Alumina Refinery (70%) Sayansk Aluminium Smelter (88%) Samara Metals Plant (88%) Note: Equity ownership shown in brackets * Owned by RusAl’s shareholders Sayansk Foil Mill (88%) ArmenAl* (44%) Belaya Kalitva Metals Plant (55%) SBK (Guinea)

9. Product Flow Mln MT Alumina Primary Aluminium Fabricated Products Own nepheline 0.9 0.9 Achinsk C o n s u m e r s Bratsk 2.0 Export Bauxite 1.5 0.2 SBK 0.8 1.1 Krasnoyarsk Nikolaev Domestic market Others 0.2 Cemtrade Samara 0.2 0.3 2.0 0.4 Belaya Kalitva Sayansk Aluminium roll KraMZ 2.5 Others ArmenAl 0.4 Others Sayansk Foil Foil Dmitrov Rostar Cans, etc.

10. Consolidate assets Introduce effective management structure Reduce costs Develop strategy Increase transparency Introduce risk management Access bank financing 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 Appointed professional management team and established Moscow Headquarters with over 500 staff members Centralised product and cash flows 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 Developed and approved corporate strategy and investment priorities 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 Over $300 mln in trade finance by Western banks Over $400 mln in credit facilities by Russian banks Targets and Achievements in the First Year of Operations

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

12. 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

13. 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

14. 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

15. 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%

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

17. 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 termloans • capital markets instruments

18. 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 At least two club deals worth up to US$150 mln to be completed by the year end Experience In Raising Finance • Over $400 mln in corporate loans including : • $200 mln credit line by Sberbank • $100 mln loans by DIB • $75 mln loans by Rosbank

19. Transparency Investor Awareness 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 Established Investor Relations function Appointed public relations consultants Issues to Address Completed To Be Done • Complete consolidation of all Group’s assets • Credit rating by international rating agencies • Establish transparent dividend policy • Ensure enhanced information flow between the Company and investors • regular investor meetings • Web-site

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

21. 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.