Annual Report 2013

Glossary

EBITDA

Earnings before Interest, Taxes, Depreciation, and Amortization

FQM

Fine Quality Milline

OCTG

Oil country tubular goods

Seamless pipe

Pipe manufactured through the insertion of a solid billet in a press or a piercing mill (with subsequent hot or cold working)

Drill pipe

Threaded seamless steel butted pipe used to drill wells

Volzhsky Pipe Plant

Volzhsky Pipe Plant, Open Joint Stock Company

Line pipe

Line pipe used in the construction and workover of upstream, midstream and process pipelines

IFRS

International Financial Reporting Standards

Tubing pipe

Plain-end steel pipe or steel pipe with externally upset ends for oil and gas well operation

Casing pipes

Steel pipes used to reinforce the walls of a well

RAS

Russian Accounting Standards

Welded pipe

Pipe that are made from metal coil, plate, strip or sheet, rolled and welded, manufactured on a tube welding mill

Sinarsky Pipe Plant

Sinarsky Pipe Plant, Open Joint Stock Company

Seversky Tube Works

Seversky Tube Works, Open Joint Stock Company

ISO 14001:2004 standards

Environmental Management Standards to ensure a balanced approach to managing environmental performance of a company

TAGMET

Taganrog Metallurgical Works, Open Joint Stock Company

LDP

Large diameter pipe

Payout ratio

Dividend-to-earnings per ordinary share ratio