VÁLCOVNY TRUB CHOMUTOV A.S.

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VÁLCOVNY TRUB CHOMUTOV A.S. Company profile 2017

Z-GROUP holding structure JUDr. Ing. Zdenek Zemek Chairman of the Board, majority owner Transport Steel Energy Spa Sport & Culture Z-Group Steel Holding, a.s.

Structure of Steel Holding Tubes - extruded hot extruded Bars Special profiles Ingots Tubes - seamless carbon & alloy steel Tubes - drawn - welded - zinc dipping Special profiles

Company history Z-GROUP Steel Holding has successfully carried on the long tradition of these Czech-Moravian metallurgical companies: Válcovny trub Chomutov - founded by the Mannesmann company in 1890 Železárny Hrádek - founded by entrepreneur Rudolf Hudlicky in 1900 Železárny Veselí - founded in 1962

Key indicators Production 2016 49 914 t Turnover 2016 45,3 mil. EUR No of employees 530 Production 41 294 t Turnover 40,9 mil. EUR No of employees 262 Production ext. 8 620 t Turnover 4,4 mil. EUR No of employees 47 Production int. 67 711 t Turnover N/A No of employees 134

Our strength Tradition Experience Flexibility Minimum order quantity = 1 ton Own steel inputs Steel works in Hradek Own transport Price competitiveness Quality

Certificates System certificates: EN ISO 9001:2008 EN ISO 14001:2004 Product certificates: API 5L CPD EN 10210 PED 2014/68/EU AD2000 W0 Lloyd s Regiester EMEA BUREAU VERITAS DET NORSKE VERITAS System certificates: EN ISO 9001:2008 Product certificates: DET NORSKE VERITAS PED 97-23 AD2000 W0 System certificates: EN ISO 9001:2008 Product certificates: PED 97-23 AD2000 W0 DVGW EN 10219 CE 0045 CPD 0940 EN 10255

Product portfolio Seamless tubes Diameter [mm] Wall [mm] Basic dimensions 273-660 9.5-72 Assortment Boiler steel tubes Boiler steel tubes Carbon steel tubes Carbon steel tubes According to standard ASTM / ASME DIN, EN, CSN, TU ASTM / ASME, API DIN, EN, CSN, GOST

Production process Testing Destructive tensile test impact test flattening test bend test ring test Non-destructive hydrotest UT test magnetic particle test liquid penetrant test hardness test PMI Chemical analysis Metallography microstructure macrostructure micro-purity grain size

Applications Use of products Power engineering Structures, boilers, incinerators, electric plants Natural gas industry Natural gas lines, pipe connections Mining industry Industrial equipment Oil pipelines Oil pipelines, oil tracks Waterworks Water connections, water lines Chemical industry Construction industry

Main customers Distributors, end-users, traders AMERICAN PIPING PRODUCTS AYDIN BORU BENTELER GROUP BUHLMANN GROUP CUNADO GROUP EISEN + BAUSTAHL EZEFLOW HOBERG & DRIESCH HORST KURVERS INCOS INTERFER NATIONAL TUBE SUPPLY Group PROJECT MATERIALS SIGMA THYSSENKRUPP GROUP VAN LEEUWEN GROUP Certificates EIL PETROBRAS IBR SAIPEM ENI Razreshenie TU-14-3R-55-2001 Registrations / approvals PETRONAS ALSTOM OMV RELIANCE INDUSTRIES REPSOL SCHLUMBERGER ExxonMobil BHEL Rosneft GAMA POWER

Sales territories 71,5% EU 9,5% North America 5,6% Czech Republic 4,8% Far East & India 3,8% Other Europe 2,4% Africa 1,9% Near & Middle East 0,4% Latin America EU countries North America Far East & India Other Europe Africa Near &Middle East Latin America Austria, Belgium, Croatia, Denmark, Estonia, Finland, France, Germany, Great Britain, Hungary, Italy, Lithuania, Netherlands, Poland, Romania, Slovakia, Slovenia, Spain, Sweden Canada, USA China, India, Korea, Malaysia, Taiwan, Thailand, Vietnam Belarus, Norway, Russia, Serbia, Ukraine Algeria, Egypt, South Africa Turkey, UAE Brasil, Cuba, Dominican Republic

Product portfolio Hot rolled Dimensions [mm] Square billets 70 x 70-140 x 140 Round steel bars 70-140 Square steel bars 70 x 70-140 x 140 Special HK profiles Custom order Peeled steel Diameter [mm] Round steel bars 10-100 Extruded tubes Diameter [mm] Wall [mm] Hot extruded 30-114 4.5-30 Special HK profiles Upon agreement Cold drawn steel Sizes [mm] Round steel bars 16-60 Square steel bars 15 x 15-60 x 60 Ingots Square, round, twelve-sided Weight [kg] 1 225-4 050 Steel grade CSN class 11-16, 19 steel and their foreign equivalents Flat steel bars 16-100 x 4 40 Hexagonal steel bars 15-70 Special HK profiles Upon agreement

Characteristics of ingots production Use of ingots - input for seamless hot rolled production (round ingots) Furnace type and capacity Source material Quantity per heat Max quantity of heats per day / week Min quantity for batch or PO Possibility of vakuum degassing Checking method Steel killing Max dispatched quantity per day & number of days/weeks to earliest possible dispatch - input for hot rolled steel bars production (square ingots) - forgings (polygonal ingots) - rolled hoops production (round ingots) EAF / LF / VD 11 t/h scrap 45 t 270 / 1800 t 1 heat = 45 t yes VD visual inspection only by Al 200 t / 10 days Deep dehydrogenization of low & medium alloy carbon steel melt to level below 1,5 ppm H2, measured by HYDRIS device. Acc to requirement it is possible below 1,2 ppm H2. Deep desulfurization, S max 50 (30) ppm (analysis by LECO device) Denitrogenization, N max 70 ppm melt; N max 90 ppm ingot Total oxygen max 15 ppm

Applications Use of products Automotive industry Parts of control, shafts, transmission, bearings, valves, strength bolts Industrial equipment Shafts of machines, machining center parts, Bearing housings, bearings, instrument for wood, tools and tool holders of machines Power engineering Shafts of wind power plants Marine Industry Shafts Mining industry Components of conveyor systems, drilling rings Construction industry Grinding systém for construction materials Furniture Parts of strongbox

Main customers Industries Automotive ALOIS SCHMITT Construction CZECH PRECISION FORGE EHG STAHLZENTRUM ERICH HAGELAUER FERONA HEINE+BEISSWENGER IMFEREX INTERFER EDELSTAHL JUCHHEIM HANDELS KRALOPOLSKA STEEL PERNAT SMJ PILANA MCT SCHMOLZ+BICKENBACH ZDAS SGS ZKL Mining Industrial equipment. EU countries Sales territories 51,6% EU 48,4% Czech Republic Austria, Denmark, Finland, France Germany, Hungary, Poland, Serbia, Slovakia, Slovenia