ANNUAL REPORT 2016

Board of Directors composition

Alexey Mordashov

Role: Chairman of the Board of Directors, Member of the Health, Safety and Environmental Committee

Experience: Born in 1965. Alexey has been working for Severstal since 1988. He started his career as a Senior Economist, becoming Chief Financial Officer in 1992. In December 1996, he was appointed as Severstal’s Chief Executive Officer. Between 2002 and 2006 he served as Chief Executive Officer of Severstal Group and was Chairman of Severstal’s Board of Directors. From December 2006 to December 2014 Alexey was Chief Executive Officer of Severstal. From December 2014 until May 2015 Alexey served as CEO of AO Severstal Management – managing company of PAO Severstal. Alexey was elected Chairman of the Board of Directors of PAO Severstal in May 2015.

External appointments:

  • Member of the Supervisory Board (since June 2010) of the Non-Profit Partnership Consortium “Russian Steel”, prior to that President of the Consortium (from 2013 to 2015), since 2016 – Chairman of the Supervisory Board
  • Member of the Supervisory Board of World Steel Association headquartered in Brussels, Belgium. Prior to that Chairman (from 2012 to 2013), Vice-Chairman (from 2013 to 2015) of World Steel Association headquartered in Brussels, Belgium
  • Head of the Russian Union of Industrialists and Entrepreneurs’ (RSPP) Committee on Integration, Trade and Customs Policy and WTO
  • Serves on the Entrepreneurial Council of the Government of Russian Federation
  • Co-Chairman of the “Trade as a Global Driver” Taskforce of the “Business 20” (B20) of “Group of Twenty” (G20)
  • Co-Chairman of the Northern Dimension Business Council
  • Vice-President of Russian-German chamber of commerce, member of the Russian-German workgroup responsible for strategic economic and finance issues
  • Member of the EU-Russia Business Cooperation Council
  • Chairman of the Board of OAO Power Machines
  • Member of the Board of Nordgold S. E.
  • Member of the Board of Directors of TUI AG

Education: Alexey earned his undergraduate degree from the Leningrad Institute of Engineering and Economics. He also holds an MBA degree from Newcastle Business School of Northumbria University (Newcastle, UK). Alexey was granted an honorary doctorate from the Saint-Petersburg State University of Engineering and Economics in 2001 and from the University of Northumbria in 2003.

Vadim Larin

Role: CEO of AO Severstal Management, Member of the Health, Safety and Environmental Committee (until 7 November 2016)
Vadim Larin resigned, on the basis of his written request, from the Board of Directors of PAO Severstal on 7 November 2016

Experience: Born in 1970. Vadim joined Severstal in 2003 and managed the Company’s coal operations at Intaugol as CEO. Since 2005 he managed Kuzbassugol and served as CEO of Vorkutaugol since 2007. He was appointed as CEO of the Severstal Resources Division from September 2010. Vadim was appointed First Deputy CEO of OAO Severstal and Chief Operating Officer on 15 July 2013. Prior to joining Severstal, Vadim worked at McKinsey & Company. On 26 May 2015 he was appointed CEO of AO Severstal Management. Vadim was elected to the Board of Directors of AO Severstal Management on 26 May 2015.

Education: Vadim graduated from the Moscow State Institute of Radio Engineering, Electronics and Automation. Vadim also holds an MBA from INSEAD (France).

External appointments: None.

Alexey Kulichenko

Role: Chief Financial Officer

Experience: Born in 1974. Between 1996 and 2003 Alexey worked for Sun Interbrew, starting his career there as a cash flow economist at the Rosar plant in Omsk and ending it as Efficiency Planning and Managing Director of Sun Interbrew. Between 2003 and 2005 Alexey worked as CFO at Unimilk. From December 2005 to July 2009 he worked as CFO of CJSC Severstal Resource. In July 2009 he was appointed CFO of OAO Severstal.

External appointments: None.

Education: Alexey graduated from the Omsk Institute of World Economy with a degree in Economics.

Vladimir Lukin

Role: Senior Vice President, Legal Affairs and General Counsel, Member of the Health, Safety and Environmental Committee

Experience: Born in 1978. Vladimir joined Severstal Group in 2004 as Senior Legal Advisor. In 2007 he became Senior Legal Advisor of OAO Severstal. In January 2008 Vladimir was appointed as head of the International Project Department. In 2009 he was appointed as Senior Vice President, Legal Affairs and General Counsel. Prior to joining the Company, Vladimir worked for law firm Fresfields Bruckhaus Deringer. Since 25 May 2015, Vladimir is a member of the Board of Directors of AO Severstal Management.

External appointments:

  • Member of the Board of Directors of OAO Power Machines
  • Member of the Board of Directors of OOO T2 RTK Holding
  • Member of the Board of Directors of ОАО AB ROSSIYA
  • Member of the Board of Directors of ZAO GK Video International
  • Member of the Board of Directors of ZAO National media group
  • First Deputy CEO of OOO KAPITAL
  • First Deputy CEO of ZAO Severgroup

Education: Vladimir graduated in Law from the Moscow State University.

Mikhail Noskov

Role: Non-Executive Director

Experience: Born in 1963. Mikhail worked at the International Moscow Bank between 1989 and 1993. From 1994 until 1997, he was Trade Finance Director of Credit Suisse (Moscow). He has worked for Severstal since February 1997, first as Head of Corporate Finance and from 1998 as Finance and Economics Director. From June 2002 until December 2013, he worked as Deputy CEO for Finance and Economics of the Severstal Group. From 2007 to 2008 he was Deputy CEO for Finance and Economics of Severstal. From March 2014 until February 2016 Mikhail Noskov was CEO of telecommunication company Tele2 (Russia).

External appointments: none.

Education: Mikhail graduated from the Moscow Institute of Finance.

Sakari Tamminen

Role: Senior Independent Director, Chairman of the Remuneration and Nomination Committee

Experience: Born in 1953. Sakari Tamminen has extensive relevant experience at Board level within steel and metals companies, including being the President and CEO of the Finnish steel and metal construction company Rautaruukki Corporation from 2003 to 2014. Sakari is currently a member of the Board at steel company Ovako AB, and has been the Vice Chairman of the Board of Sanoma Corporation from 2002 until 2013. He also holds a directorship at Danske Bank Finland Plc. He has also held roles as Executive Vice President and CFO of Metso Corporation (1999–2003) and Rauma Corporation (1991–1999).

External appointments:

  • Member of the Board of Directors of Ovako AB
  • Member of the Board of Directors of Danske Bank Finland Plc
  • Chairman of the Board of Directors of Versowood
  • Chairman of the Board of Directors of M. J. Paasikivi Oy

Education: Sakari Tamminen studied in Tampere University. He holds a degree in Masters of Science (Economics).

Alun Bowen

Role: Independent Non-Executive Director, Chairman of the Audit Committee, member of the Remuneration and Nomination Committee

Experience: Born in 1955. Alun spent almost 37 years working for KPMG in London, Sydney, Cardiff, Hong Kong and Kazakhstan. He has extensive relevant experience both at Board level and in advisory roles. Having joined Peat, Marwick & Mitchell & Co (subsequently KPMG) in 1976, he was appointed a Partner in 1988, and subsequently managed a number of practice areas including being Managing Partner of KPMG Kazakhstan from 2008 to 2013. He was a member of the audit committees of The Institute of Chartered Accountants in England and Wales (2004 to 2007), Business in the Community (2003 to 2005) and The Prince’s Trust (2001 to 2007).

External appointments:

  • Member of the Supervisory Board, Chairman of the Audit Committee, member of the Risk and Internal Controls Committee and Chairman of the Remuneration Committee of JSC Eurasian Bank
  • Non-Executive Director, Chairman of the Risk and Conduct Committee and member of the Audit Committee of Julian Hodge Bank Limited
  • Non-Executive Director, Chairman of the Risk and Conduct Committee and member of the Audit Committee of Hodge Life Assurance Company Limited
  • Trustee and Director of Jane Hodge Foundation
  • Non-Executive Director, Chairman of the Risk and Conduct Committee and member of the Audit Committee of Carlyle Trust Limited

Education: Alun holds a Master of Arts degree from Trinity College, Cambridge, where he studied Metallurgy and Materials Science, and he is a Fellow of the Institute of Chartered Accountants in England & Wales.

Philip Dayer

Role: Independent Non-Executive Director, Chairman of the Health, Safety and Environmental Committee, Member of the Audit Committee and the Remuneration and Nomination Committee

Experience: Born in 1951. Philip has extensive experience of advising international companies, including in the CIS. Philip sits on the Boards of several listed companies in the energy, software and financial services sectors. Philip qualified as a Chartered Accountant and pursued a corporate finance career in investment banking providing capital markets advice, including on M&A transactions and flotations. Over the past five years he has also held Non-Executive Directorships at Hurricane Exploration plc, Cadogan Petroleum plc, Dana Petroleum plc, Arden Partners plc, Navigators Underwriting Agency Limited and IP Plus plc.

External appointments:

  • Non-Executive Director, member of the Audit Committee and member of the Remuneration Committee of JSC VTB Capital Holding
  • Senior Independent Director, member of the Audit Committee and Chairman of the Remuneration Committee of AVEVA Group plc.
  • Non-Executive Director and Chairman of the Audit Committee of JSC Kazmunaigas Exploration & Production
  • Non-Executive Director and Chairman of the Audit Committee of The Parkmead Group plc.

Education: Philip graduated from King’s College (London) in Law and he is a fellow of the Institute of Chartered Accountants in England and Wales.

Vladimir Mau

Role: Independent Non-Executive Director, Member of the Audit Committee

Experience: Born in 1959. Vladimir Mau is an honoured Russian economist. Since 1991 he has participated in the economic reforms in Russia, including working as Advisor to the Chairman of the Russian Government from 1992 to 1993. From 1997 through 2002 Vladimir was the Head of the Working Center for Economic Reforms of the Russian Government. In 2002 he became the Rector of the Academy of National Economy of the Russian Government (ANE), and in 2010 the Rector of the newly-formed Russian Presidential Academy of National Economy and Public Administration (RANEPA).

External appointments:

  • Independent member of the Supervisory Board, Chairman of the Audit Committee, member of the Nomination and Remuneration Committee of PAO Sberbank of Russia
  • Chairman of the Trustees Board of the Fund for Bureau of Economic Analysis
  • Member of the Trustees Board of Yegor Gaidar Heritage Foundation
  • Member of the Board of Directors of PAO Gazprom
  • Member of the Board of Directors, member of the Committee for Corporate Governance, nominations and remunerations of ZAO Transcapitalbank

Education: Vladimir Mau is a Doctor of Economics, Professor, PhD (Université Pierre Mendès France), Honored Economist of the Russian Federation. Vladimir graduated from the Moscow Institute of National Economy in 1981.

Alexander Auzan

Role: Independent Non-Executive Director, Member of the Health, Safety and Environmental Committee

Experience: Born in 1954. Alexander Auzan is Dean of the Faculty of Economics in Lomonosov Moscow State University and founder of the National Projects Institute, is one of Russia’s leading economists. In the late 1980s, he took part in the establishment of consumer protection associations and has been a Member of the Executive Bureau of the Council of Consumers International (a worldwide consumers association). In 2005–2011 he was a President of Association of Russian Economic Think Tanks (ARETT). Mr. Auzan was also a member of the President’s Commission for Modernisation and Technological Development of Russian Economy and President’s Council for Development of Civil Society and Human Rights. He is currently a member of the Presidential Economic Council. He has written numerous papers on the modernisation of Russia, national values, and the dynamics of a social contract. His applied work involves economic and development consulting for national and regional governments, including participation in development of “Strategy-2020” for Russia in 2011–2012. In 2015 he headed the working group on preparation of proposals for structure, directions, resource’s provision and plan for the social and economic development strategy of Russia up to 2030.

External appointments:

  • Independent Director of OAO RVK
  • Independent Director of OAO Rostelecom

Education: Alexander Auzan graduated from Moscow State University and holds a Ph. D. in Economics.