OREANDA-NEWS. EVRAZ announces its audited results for the year ended 31 December 2014 (“the Period”).

The financial information contained in this document for the year ended 31 December 2014 does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The audited statutory accounts for the year ended 31 December 2013 have been delivered to the Registrar of Companies and those for 2014 will be delivered following the Company's annual general meeting convened for 18 June 2015.

The auditor has reported on the statutory accounts for the year ended 31 December 2014. The auditor’s report was unqualified.

Key Highlights

· Health and safety performance improved in FY2014 with annual LTIFR decreasing from 1.96x to 1.60x

· Consolidated revenue fell 9% as a result of decline in Steel segment revenues

· Consolidated EBITDA demonstrated excellent growth of 28% to US\$2,325 million mostly driven by the Steel segment

· EVRAZ’s capex in 2014 amounted to US\$654 million, down from US\$902 million in 2013. Most of the capex was spent on sustaining current capacity, while US\$211 million was used for projects aimed either at increasing production or decreasing costs.

· Net debt was reduced 11% to US\$5.8 billion bringing the net debt to EBITDA ratio to 2.5x

· Net loss was US\$1,278 million vs. US\$551 million in 2013 mostly due to impairment of assets (US\$540 million) and foreign exchange loss (US\$1,005 million)

· The translation loss in Other comprehensive Income/(Loss) was approximately US\$2 billion. It was caused by translating Russian roubles and Ukrainian hryvnia assets stated at historical cost using current (31 December 2014) exchange rate

· Successful implementation of the pulverised coal injection (PCI) project

· The launch of mass production on EVRAZ Caspian Steel

· Return to pre-accident levels of annualised production on Raspadskaya – over 10mt of coking coal

· EVRAZ North America Investment in EVRAZ Regina Steel upgrade and construction of a spiral pipe mill #5 approved

· Disposal of EVRAZ Vitkovice Steel based on an enterprise value of US\$287 million

· In light of the strong financial performance in 2014, the Directors would like to make a return of capital to Shareholders of up to US\$375 million by way of Tender Offer

Financial Highlights

Full year to 31 December

(US\$ million)

2014

2013

Change

Consolidated revenue

13,061

14,411

(9)%

Loss from operations

(101)

(161)

(37)%

Consolidated EBITDA

2,325

1,821

28%

Net profit/(loss)

(1,278)

(551)

132%

Earnings/(loss) per share, basic (US\$)

(0.78)

(0.34)

129%

Net cash flows from operating activities

1,957

1,900

3%

CAPEX

654

902

(27)%

31 December 2014

31 December 2013

Net debt

5,814

6,534

(11)%

Total assets

11,630

17,685

(34)%