1

SIJ Group and Metal RavneKey Highlights

SIJ Group today

SIJ Group structure by share of revenue (%)

Steel division

Acroni

Metal Ravne

Distribution and processing division

Ravne Steel Center (SI)

Ravne Steel Deutschland (DE)

Sidertoce (IT)

Niro Wenden (DE)

Kopo International (US)

SIJ Asia (DE)

Ravne Knives (UK)

Ravne Knives (UK North)

Griffon & Romano (IT) Ravne Knives USA (US)

Manufacturing division

Ravne Systems (Ravne Knives)

Elektrode Jesenice

SUZ

Serpa

Scrap division

Odpad Pivka (SI)

Dankor Osijek (HR)

Metal - Eko Sistem (RS)

Top Metal (BA)

Headquarter and other services

SIJ d.d.

ZIP Center

Železarna Jesenice

SIJ Group structure

Material base Steel production Distribution ManufacturingManaging and other services

SIJ is a vertically integrated group exhibiting a sound business profile

SIJ Group HQ located in Ljubljana Highlights

• 22 companies in the group

• € 708 mil Sales Revenues

• 87% export

• 1,000+ customers

• aprox. 3,200 employees

• Leading Stainless Steel QP manufacturer in EU

• TOP3 Tool Steel producer in EU

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3

In 2015 SIJ Group increased export and strengthened its market position in USA

SIJ Group today

Sales to USA increased by 68% in 2015/2014

Sales by region (%) in 2015Loyal customer base

50%

37%

13%

More than 20 years

15-20 years

5-15 years

66%

30%

4%

Lasting 8 years or more

Up to 5 years

Up to 1 year

256 largest customers

8 largest customers

SIJ group – a growing network of companies positioned in key markets

SIJ Group today

Hazlet

Landsberg am Lech

Corsico

GravellonaToce

Wenden

Duesseldorf

Ljubljana

Banja Luka

Pivka

Jagodino

Shanghai

Nürnberg

Slovenia Osijek

Distribution centresSIJ production facilities Scrap collecting centres 4

5

SIJ steel division has a leading market position in core programmes

SIJ Group today

TOO

L ST

EEL

STA

INLE

SS S

TEEL

QP

MARKET SHARE (kt)

59 68 66 85

254 246 251 274

2011 2012 2013 2014

Slovenia (Acroni) Acroni share%

23% 28% 26% 31%

MARKET SHARE (kt)

39 36 33

36

304 272 270 299

2011 2012 2013 2014

13% 13% 12%

Slovenia (Metal Ravne) %

12%

METAL RAVNE IS A GLOBAL TOP 8 TOOL STEEL MILL*

0

50

100

150

200

250 12 9 9 8

2009 2010 2011 2012

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Rest of the worldMetal RavneChinaHistorical development of position

*SIJ is among largest global producers of stainless QP and long tool steel.Source: SMR Market Research

20

60

100

140

180

220

ShanxiTaigang

NSSC Acroni Industeel Outokumpu Posco / DKC BaosteelGroup

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3

ACRONI IS A GLOBAL TOP 3 STAINLESS STEEL QUARTO PLATE MILL*

Metal share

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Metal Ravne – detailed overview

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… since 1620.

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Profile of Metal Ravne

Annual sales quantities:

approx. 80,000 ton end products

High quality of our steels and high flexibility

Almost 400 years of tradition

Own development, 104 new products (in 2015)

Certificates in compliance with

ISO 9001, ISO 14000 and OHSAS 18001

Managing Director: Andrej Gradišnik

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Steel programme

PRODUCTS• Ingots• ESR ingots

Rolling programme

PRODUCTS• Billets with rounded edges• Wide flats• Round sections• Square sections• Flat sections

Forging programme

PRODUCTS• Billets• Forged bars• Forgings• Discs

Metal Ravne Production programmes

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Steel programmes – Steel segmentation

TOOL STEEL

PLASTIC MOULDING

HOT WORK

COLD WORK

HIGH SPEED STEEL

SPECIAL STEEL

ALLOYED STEEL

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Tool steel and alloyed steel

PLASTIC MOULDING

HOT WORK

COLD WORK

HIGH SPEED STEEL

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Special steel segment

TURBINE BLADE STEEL

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Production facilities – Technological layout

+ LF+VD/VOD

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Sales in 2015 – Market share in %

Slovenia19%

Germany19%

USA & Canada16%

Italy11%

Spain&Porutgal4%

Czech Republic4%

India4%

Avstrija3%

Taiwan3%

Switzerland2%

Hungary2%

Other EU2% France

2%

Turkey2%

Scandinavia1% Other

countires1% Croatia

1%

Other SE Asia1%

Brazil1%

GB1%

Other Europe0%

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Sales structure by Steel segments from 1993 till 2015

30,4 29,225,7

19,9 20,513,0 14,5

10,06,9 4,2 4,7 4,4 2,5 3,2 3,7 3,5 4,4 1,3 1,0 0,7 0,9 0,9 0,5

43,4

37,8

36,1

32,6 30,2

30,1 24,125,8

21,419,2 20,4

25,124,8

26,729,9

26,3 25,2

12,9 14,7 17,7 16,2 17,1 16,2

14,121,1

23,936,4 37,5

45,048,5

50,2

56,360,6

62,359,1 61,5 58,4 52,2

53,7 55,0

75,068,9

67,9 69,1 69,7 70,7

12,0 11,9 14,311,1 11,9 11,8 12,9 14,1 15,4 16,0

12,6 11,4 11,2 11,6 14,2 16,5 15,410,8

15,3 13,7 13,8 12,3 12,6

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Unalloyed construction steel Alloyed construction steel Tool and high speed steel Special steel

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Investments into new products from 2006 till 2015

FORGING PRESS

40-45 MN

BLOOMING MILL

3000 kW/

Ø 930 mm

CASTING PIT FOR

INGOTS up to

45 TON

MACHINING UP TO

40 TON

NEW ESR

INGOTS UP TO 50 TON

DIM.

Ø 1400 mm

2006 / 2007 / 2008 2009 / 2010 2011 / 2012

LARGER PRODUCTS MACHINED FORGINGS

2013 / 2015

DEMANDING STEELSWITH HOMOGEN. STRUCTURE

STEELS WITH LOW C,

STEELS FOR HIGH TEMPER.

LF-VD/VOD

HEAT TREATMENT

EAF modernization

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20 largest world producers of tool steel – based on the production of long products

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China Metal Ravne Rest of the world

129 9 8

2009 2010 2011 2012

GLOBAL SCALE

WITHOUT CHINESE PRODUCERS

3. – quantity2. – specialties

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The future of Metal Ravne?

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Strategy direction of Metal Ravne

KEEP MARKET POSITION OF TOOL STEELS

GROWTH OF SPECIAL STEELS

FOR ENERGY, OIL & GAS,

AEROSPACE …FINAL

PRODUCTS

SEMI PRODUCTS

SUPER CLEAN STEELS

SUPER ALLOYS

& TITAN

+ MARKET

RAVNE SYSTEMS

20

2818

44

33

28

49

0

20

40

60

80

100

120

SPECIAL REQUIREMENTS STEEL

STANDARD TOOL STEEL

BASIC ALLOYED STEEL

2025

Steel segmentation – Growth of special requirements steel - share in %

+75%

10%

20%

20%

15%

12%

11%

10%

8%4%

ENERGY

OIL & GAS

AUTOMOTIVE / MECHANICAL ENG.

FOOD & BEVERAGE

SHIPBUILDING

AEROSPACE

OWN BRAND NAME

MEDICAL

2015

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Investments 2015 – 2025 (shift of VIM, VAR2, 3 and ESR5)

Inve

stm

en

ts

Start / Finished

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

VOD

FORGING MACHINE

FORGING MACHINE

SPECIAL FORG

SPECIAL FORG

BLOOMING MILL FOR ROUNDS

BLOOMING - ROUNDS

ESR 4

ESR

ESR 5

ESR 6

EPŽ 7

VAR 1

VAR

VAR 2

VAR 3

VAR 4

VIMVIM

VIM

22

0

10

20

30

40

50

60

70

80

90

100

110

120

0

50

100

150

200

250

300

350

20252015

+52%

Sales in 000 ton

20252015

Sales in mio €

The growth of quantities and sales value

+117%

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Thank you for your attention.