Annual Report 2010 - Magnitogorsk Iron & Steel Works

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General Information on OJSC MMKFull Name of the Company:– in Russian: Открытое акционерное общество «Магнитогорский металлургический комбинат»;– in English: Open Joint Stock Company Magnitogorsk Iron & Steel Works.Abbreviated Name of the Company:– in Russian: ОАО «ММК»;– in English: OJSC MMK.State Registration CertificateCertificate #0002 series GA (registration #186). Date of state registration: 17.10.1992.Certificate of Entry in the Uniform State Register of Legal Entities: series 74 # 000603904, OGRN1027402166835, date of entry: August 12, 2002.The Company’s location and postal address:Ul.Kirova 93, Magnitogorsk, 455000, Chelyabinsk Region, Russia.Tel: 24-72-92, 24-30-04, Fax: 24-73-09Communication and Public Relations:Phone: (3519) 24-03-02, fax: (3519) 24-85-54, е-mail: press@mmk.ruWebsite of the Company:Web-site: http://www.mmk.ruLegal Status of the OJSC MMKThe Magnitogorsk Iron and Steel Works is an open joint stock company. According to the legislation of theRussian Federation, a joint stock company is an organization whose authorized capital is divided into a certainnumber of shares which certify rights of obligation of the company’s members (shareholders) in relation to thecompany.The shareholders are not responsible for the Company’s obligations and bear the risk of losses in connectionwith the Company’s activity to the extent of their shares’ value.The Company is a legal entity which owns separate property entered in the Company’s independent balancesheet. The number of shareholders of the Company is not limited.Countries in Which the Organization Conducts its BusinessOJSC MMK runs its operations in the Russian Federation (Magnitogorsk, Belovo, Bakal, St. Petersburg, Moscow)and the Republic of Turkey (Istanbul, Iskenderun). The Company’s key suppliers are located in Russia andKazakhstan. MMK sells its products to 70 countries worldwide. The key shipment destinations include CIS, theMiddle East, Europe, and Asia.106
General Information on the ReportDate of Publication of the Latest Previous ReportAnnual reports of OJSC MMK are prepared annually pursuant to the Federal Law "On Joint-Stock Companies" #208-FZ dd. 24.11.1995 as amended and supplemented. In addition to their being mandatory, the Company viewsannual reports as an instrument for enhancing the transparency of its operations.The previous Annual Report of the OJSC MMK was prepared based of the 2009 results and approved by theAnnual General Shareholders' Meeting on 21.05.2009. OJSC MMK’s Annual Report 2009 is available for review atMMK's web site www.mmk.ru/for_investor/annual_reports/.Contact DetailsAlexander A. Smirnov, Acting Head of the Budget Planning and Analysis Departmenttel: (3519) 24-69-04, fax: (3519) 24-82-73, e-mail: smirnov.aa@mmk.ruProcedure for Determining Contents of the Annual ReportIn the preparation of this Annual Report, MMK aimed to achieve the fullest possible disclosure of informationrelated to all aspects of its operations in 2010. The Report includes the results of the Company’s diverseactivities (production, business, financial, social, environmental) of interest to all stakeholders. Stakeholderswere identified through a comprehensive analysis of the Company's operations and the influence exerted bythem on the social sphere and the environment.As a result, top priority was assigned to the following subjects: production, finances, sales, relations withstakeholders, as well as the social and environmental activities of MMK. All the facts and events influencing theachievement of the Company’s strategic goals were considered material.In the preparation of this Report use was made of the Regulations on Sustainability and Reporting (GRI,version 3.0) in order to present the results of the Company’s activities in the context of sustainability. All theinformation contained in the present Report is in line with the principles of GRI (relevance, party interestcoverage, stable development context, completeness).Scope of the ReportThe present Report has been prepared on the basis of the results of OJSC MMK’s operations, as presented inaccounting statements prepared according to the Russian Accounting Standards for the 2010 financial year, andconsolidated accounting statements of the MMK Group prepared according to IFRS. This Report can be regardedas a report on the entire MMK Group.Limitations Regarding the Scope of the ReportThis Report provides a complete picture of MMK’s operations, and any further expansion of the Report ispossible only in terms of increasing the number of performance indicators, should such interest be expressed byusers of the Company’s information.Influence on the Comparability of the ReportThis Report includes information on the MMK Group’s operation results and is therefore comparable to thereports of OJSC MMK and the MMK Group for previous periods.Material Changes in the ReportThis Report does not contain any material changes compared to the information provided in previous reports,nor any changes in relation to previous periods in terms of the content, scope or measurement of OJSC MMK’sresults.V. Rashnikov, President of LLC MMK Managing CompanyM. Zhemchueva, Chief Accountant, OJSC MMKSteel & Style , 10 MMK ANNUAL REPORT 107
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ContentsAnnual Report2010Editor-in-
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Products for the Automotive Sector6
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Statement of the Chairmanof the Boa
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Business Model ММК16
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18Diverse Product Mix and Sales Foo
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Significant Growth Potential20
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NEW TRACKSMMK’s Missionand Strate
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To localize their production, forei
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OJSC MMK Board of Directors' Report
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The Company's ProductionOperationsT
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The Company's Production Operations
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Any colouror hue foryourproduct!Col
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The Head of the State also highly p
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Page 67 and 68: Risk ManagementIn 2010, the followi
Page 76 and 77: MMK Industrial Waste108644,8Total s
Page 78 and 79: Stakeholder EngagementCorporate soc
Page 80 and 81: Demag, ThyssenKrupp, АМСОМ, AL
Page 82 and 83: Information forShareholders andInve
Page 84 and 85: OJSC MMK Share Quotes and Trading V
Page 86 and 87: conferences for investors with MMK
Page 88 and 89: Open Joint Stock CompanyMagnitogors
Page 90 and 91: CONSOLIDATED STATEMENT OF FINANCIAL
Page 92 and 93: CONSOLIDATED STATEMENT OF CHANGES I
Page 94 and 95: CONSOLIDATED STATEMENT OF CASH FLOW
Page 96 and 97: Information on Companies in Which O
Page 98 and 99: Part Description PagePart 2: Financ
Page 100 and 101: Use of the GRI Reporting Framework
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Annual Report 2010 - Magnitogorsk Iron & Steel Works

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