TMK’s market position

In 2014, TMK supplied a total of 4,402 thousand tonnes of steel pipe, up 3% year-on-year. Since 2009, the Company has been the world’s leading producer of steel pipe.

The main focus of our business is the production of goods for the oil and gas industry. Oil country tubular goods account for 78% of TMK’s total sales.

Most of our products are supplied to major oil and gas companies. The key consumers of our products include Russian companies, such as Rosneft, Gazprom, Surgutneftegas, LUKOIL, Transneft and Gazprom Neft.

We also supply a significant amount of our products to Bourland and Leverich, an American leading provider of premium oil country tubular goods (OCTG). In 2014, our top five customers accounted for 32% of TMK’s total sales.

We ship our products to over 80 countries through a geographically diversified network of our dealers and representative offices around the globe. In 2014, the Russian market accounted for 55% of our total revenue, the American market — 34% and the European market — 7%.

The Central Asia, Middle East and the Caspian region contributed 4% to TMK’s revenue. Our geographically diversified assets and sales help us to mitigate risks and uncertainties while taking advantages of the opportunities offered by each market.

PIPE SALES BY DIVISION, THOUSAND TONNES

	Russian Division			American Division			European Division
	2014	2013	Change, %	2014	2013	Change, %	2014	2013	Change, %
TOTAL, INCLUDING	3 198	3 085	4%	1 019	1 027	-1%	185	175	5%
Seamless pipe, including	2 014	1 927	5%	361	319	13%	185	175	5%
OCTG	1 128	1 079	5%	317	279	13 %	0	0	-
Welded pipe, including	1 184	1 158	2%	658	708	-7%	0	0	-
Large diameter pipe	468	442	6%	0	0	-	0	0	-