UC RUSAL announces results for first quarter ending 31 March 2015

Key highlights
• The first quarter of 2015 was a challenging period for the aluminium industry. In particular, there was a 8.5% decrease in the average London Metals Exchange ("LME") aluminium price of USD1,801 for the first quarter of 2015 as compared to USD1,968 in the preceding quarter, as well as downward trend on product premiums across all key markets reducing the average realized premium of RUSAL by 1.2% as compared to the preceding quarter, which put pressure on the Company's margins.
• Revenue in the first quarter of 2015 increased by 16.7% to USD 2,477 million as compared to USD2,123 million for the first quarter of 2014 due to the increase in LME aluminium price, growth in volumes sold and higher average realized premiums between the comparable periods.
• Aluminium segment cost per tonne was under pressure following significant increase in electricity prices, railway transportation tariffs and other key raw materials' costs in Russian Rouble terms in the first quarter of 2015. However, these factors were offset by the efficiency initiatives significantly supported by the depreciation of the Russian Rouble and the Ukrainian Hryvnia against the US dollar and aluminium segment cost per tonne decreased by 17.5% to USD1,437 in the first quarter of 2015 as compared to USD1,741 per tonne for the same period of 2014.
• As a result, the Adjusted EBITDA was increased to USD721 million in the first quarter of 2015 as compared to USD173 million for the same period of 2014, and USD651 million for the last quarter of 2014.
• In the first quarter of 2015 the Company decreased its Net Debt by USD213 million that together with the strong financial results leads to the further decrease in the leverage ratio to below 3.5:1 as at 31 March 2015 that will decrease interest rate margin starting from June 2015.

Commenting on the first quarter 2015 results, Vladislav Soloviev, CEO of RUSAL said:

"In 2015 we are beginning to witness a new turn in the global aluminium market's development. The most important trends include the recent collapse in premiums despite steady consumption growth, higher metal availability as a result of financing deals becoming less attractive and rising exports of aluminium products from China. In such an environment, the Company's first quarter of 2015 results demonstrate that our strategy to focus on efficiency and our value added products portfolio is paying off. The key factors driving our results were our supply discipline and cost control, strongly supported by local currency depreciation.

Given current market conditions, UC RUSAL's priority is to be the most efficient aluminium producer globally. We will continue to maintain our production discipline and develop our value added products portfolio so as to further strengthen our margins and efficiency. As end use applications become more demanding and the competitive landscape becomes fiercer, we recognize that the relentless pursuit of quality is the fundamental driver for future success.

Financial Overview
Total revenue increased by USD354 million, or by 16.7%, to USD2,477 million in the first quarter of 2015, as compared to USD2,123 million for the corresponding period of 2014.

Revenue from sales of primary aluminium and alloys increased by USD406 million, or by 23.3%, to USD 2,150 million in the first quarter of 2015, as compared to USD1,744 million for the same period of 2014 due to the increase of both aluminium sales volumes and realized sales price. The increase in weighted-average realized aluminium price by 12.6% in the first quarter of 2015 as compared with the same period of 2014 resulted from better LME aluminium price performance, as well as 25.1% growth in premiums above the LME prices in the different geographical segments (to an average of USD424 per tonne and USD339 per tonne for the first quarters of 2015 and 2014, respectively). Revenue from sales of primary aluminium and alloys increased by USD36 million, or by 1.7%, in the first quarter of 2015, as compared to the fourth quarter of 2014 due to the growth in the sales volumes partially offset by decrease in LME aluminium price.

Revenue from sales of alumina decreased by USD6 million or by 4.1% to USD140 million in the first quarter of 2015 from USD146 million in the same period of 2014 and decreased by USD9 million or by 6% compared to USD149 million for the fourth quarter of 2014. The decrease in revenue over the comparable periods was primarily attributable to a decrease in sales volumes, which is partially offset by an increase in average sales price.

Revenue from sales of foil decreased by USD3 million or by 4.2% to USD68 million in the first quarter of 2015, as compared to USD71 million for the corresponding period in 2014, primarily due to a decrease in sales volume.

Revenue from other sales, including sales of other products, bauxite and energy services decreased by USD43 million or by 26.5% to USD119 million in the first quarter of 2015 as compared to USD162 million for the same period of 2014, due to a 33.3% decrease in sales of bauxite and a 20.9% decrease in sales of other materials.