OREANDA-NEWS. March 15, 2012. Q4 2011 Production Output:

· Finished tubes – 4,237 tons (+3.9%*)

· Mother tubes[i] – 2,675 tons (+10.3%)

· Overall tubes output – 6,912 tons (+6.3%)

* Hereinafter in comparison to Q3 of 2011

12M 2011 Production Output:

· Finished tubes – 16,040 tons (+ 3,450 tons or 27.4%**)

· Mother tubes – 10 036 tons (+1,187 tons or 13.4%)

· Overall tubes output – 26,076 tons (+ 4,637 tons or 21.6%)

** Hereinafter in comparison to 12M 2010

Sales structure in 2011

Shipments of finished products in 12M 2011 amounted to 15,883.4 tons which is 2,795.8 tons higher y-o-y. As a result the sales plan was fulfilled with 21% growth y-o-y. Sales volumes reached USD 205.9 mln or (+39.7%), USD 58.6 mln higher y-o-y.

In 2011 the share of sales in priority markets of Europe and the CIS accounted for 51.2 % and 41.7% respectively. 4.6% of the products were shipped to USA, and 2.5% - to ROW[ii].

EU

In 2011 the EU market demonstrated the highest sales momentum. The overall sales in the region increased by 2,126.5 tons or 35% as compared to 2010, on the back of growing demand for instrumentation tubes and hollow bars in automobile and machine building industries. At the same time a strong demand in power engineering was observed, namely CENTRAVIS fulfilled the large boiler tubes order for a nuclear power plant in Czech Republic. It’s worth mentioning the increase in heat exchange tubes segment caused by the demand on the products in oil and gas industry as well as chemical industry among heat-exchange equipment producers, stockists and end customers in Italy, Germany, Netherlands and UK.

CIS

In 2011 CENTRAVIS gained sales by 488 tons in CIS, which is 8% higher y-o-y. The growth was somewhat hampered by the Russian Federation anti-dumping duty, which was imposed in the middle of 2011 on the members of Customs Union – Belarus and Kazakhstan. In this region the demand was observed in power production and power plant engineering, which resulted in sales volume increase in boiler tubes segment by 176.8 tons, mainly due to end consumers from RF. Growing demand in oil and gas industry boosted a twofold upturn in the furnace tubes segment.

ROW

In 2011, CENTRAVIS’ sales in ROW market, including USA, increased by 181.3 tons or 19% y-o-y. The business portfolio in the region was formed mainly due to orders from stockists on heat-exchange, furnace and instrumentation tubes and pipes.

With regard to product portfolio, in 2011 two segments with high added value, namely instrumentation and furnace tubes, were more than twofold up. Instrumentation tubes sales rose by 127% to 1,598.8 tons, and furnace tubes sales amounted by 113% to 354 tons. In 2011 the Company also sustained its sales momentum in hollow bars segment which amounted to 2,750 tons (30% higher y-o-y).

Yuriy Atanasov, CEO of CENTRAVIS PRODUCTION UKRAINE PJSC, noted: "In 2011 CENTRAVIS developed its sales portfolio with regards to high margin segments. This allowed us to strengthen our position in all key markets and to improve the Company’s overall financial performance. The end of 2011 was marked by an outstanding orders inflow, especially from European clients. At the moment our business portfolio is almost optimal in terms of size, product and market segmentation. In 2012 we will continue growing in line with the long-term strategy of business development”.

[i] Mother tubes are the hot shop semi-finished products for cold finishing in the cold shop.

[ii] Rest of the World