MMK's Domestic Sales Are Highly Diversified

1. Finished steel products output in Q3 2012 was 2,858,000 tonnes up 3% QoQ driven by higher production volumes of long products, flat cold rolled products and galvanized steel.

2. HVA steel products output in Q3 2012 was 1,276,000 tonnes up 6% QoQ mainly due to higher shipments of cold rolled and galvanized products from the Magnitogorsk plant.

3. Domestic shipments in 9 months 2012 are up 17% YoY due to more stable demand for steel in the domestic market than from export markets. Domestic shipments accounted for 77% of MMK's total shipments during the period.

MMK's domestic sales are highly diversified. No one client accounts for more than 5% of sales on the domestic market and the top 10 clients account for about 25% of sales.

1. Shipment volumes from Metiz have increased 5% YoY in 9 months 2012, due to a general recovery in the construction industry in 2012.

2. MMK export shipments in 9 months 2012 contracted by 22% YoY and stand at 1,967,000 tonnes.