BUILDING BRIDGES: RUSSIAN ALUMINUM

IN A GLOBAL CONTEXT

Vladislav SoloviovChief Financial Officer

Russia: Going Global?London, October 12-13, 2005

2

Global Trendsin Aluminium Industry

Consolidation

Restructuring

Competition for energy and raw materials

Increasing global demand

3

Industry Consolidation

others57 %

Chalco3 %

Hydro Aluminium5 %

BHPB4 %

RUSAL9 %

Alcan11 %

Alcoa11 %

SUAL25%

RUSAL75%

WORLD

RUSSIA

4

Evolution of Russian Aluminum Industry

USSR one of the world’slargest producers

Russian smeltersbecome independent

Global MOU — Russiaenters global industry

Industry consolidation —RUSAL formed

Russia is world’s2nd largest producer

Millions of Tonnes

1980

1990

1994

2000

2004

3.03

2.92

2.67

3.24

3.60

5

Shift Away from US & Europe

2004

1980

6

RUSAL Electricity Infrastructure

Smelters

Power Stations

7

RUSAL’s Investment in New Energy Sources

Krasnoyarsk Region

Hydropower: 3,000 Megawatts

Smelting Capacity: 500,000-600,000 tonnes per year

In cooperation with Government of Tajikistan

Hydropower: 4 Billion Megawatts

Boguchanskaya Hydrostation

Rogunskaya Hydrostation

8

Dynamic Growth in Global Aluminium Smelting

RUSAL + 49%

9

RUSAL Plans for Raw Material Self Sufficiency

Alumina Production(thousand tonnes)

2000 2001 2002 2003 2004 2013

1990 2085 21612982 3140

8000

10

RUSAL Investment in New Raw Materials Capacity

Largest in the world

RUSAL owns 20%

22% increase in RUSAL raw material capacity

Cooperation project with SUAL

6 million tonnes annual bauxite production by 2007

Russian domestic raw material use increases from 40% to 80%

QAL Alumina Refinery

Komi Aluminium Project

11

Global Supply and Demandof Aluminium

mill

ion

s o

f to

nn

es

2000 2001 2002 2003 2004 2005 2006 2008 2010

Global Demand Global Supply

4038363432302826242220

12

*

Mining and Refining

Office

Smelting

Fabrication

**

**

*

*

*

11 COUNTRIES & 7 RUSSIAN REGIONS

RUSAL: from Siberia to the World

13

Future Outlook: Russia vs. China

5000

1000-

4000

-7500

0

75009200

9000-

200

-10000

0

10000

RUSSIA(2009)

CHINA(2009)

Production Consumption Balance

14

Metals Sector Contributionto the Russian Economy

largest contributor to the federal budget

contributor to Russia’s total currency inflow

of industrial production

of exports

of Russia’s industrial fixed assets

of Russian industry’s net profit________________________________________

Source: RF Federal Agency for Industry, Report The Successes and Challenges of Russia Metals Industry, May 2005

2nd

2nd

19%

18%

11%

40%

15

+ Low cost hydropower

Technology and own ongoing R&D

Scale

Low capital cost of building smelter assets

Pluses and Minuses of Operating in Russia

– Remote location

Limited locally available high quality raw materials

Limited domestic market

High perceived political risk

16

Go global, become fully integrated

Three Keys to Success

Low domestic consumption

Transportation and energy costs

Fierce competition for raw materials

Explore international markets and focus on customer needs

Seek long-term partnerships or develop own energy supply

17

RUSAL Today

in the World

in Russia

of global market

million tonnes of aluminium

billion in sales

billion in investments in 2006

employees

# 3

# 1

9%

2.7%

$5.4

$1+

50,000

18

RUSAL Tomorrow

aluminium producer in the world

in efficiency and productivity

million tonnes of aluminium

million tonnes of alumina

billion in investments in 10 years

# 1

# 1

5

8

$ 8

19

Instinct for Growth

www.rusal.com

Phone: +7 095 720 51 70

Fax: +7 095 728 49 32