Annual Report 2010 - Magnitogorsk Iron & Steel Works

Highlights of 2010 and 20112010JulyThe Metallosnabzheniye y Sbytmagazine recognized MMK as thebest producer of flat products inRussia.Moody’s upgraded MMK's outlookunder the corporate credit ratingand the national scale rating fromStable to Positive.A contract was signed for theconstruction of a new slagprocessing unit, Amcom-3, with acapacity of 2.5 m tons of slag peryear. The aggregate capacity ofMMK's slag processing units willreach 9 m tons of slag per year,yielding up to 1 m tons of ironcontainingmaterial every year andallowing to clear away the slagdumps around the Works within thenext 10 years.MMK and the ChTPZ Group, oneof MMK's key customers, signedan agreement of cooperation for aperiod uip to 2015.AugustMMK proceeded to the installationof the 2,000 cold rolling millequipment (Rolling Shop 11). Themill's key purpose is be to producepremium quality cold rolled andgalvanized steel products for theautomotive sector, white goodsmanufacturers and the constructionsector. The mill will have an annualcapacity of 2 m tons.MMK was ranked 21st in theRussian companies' socialresponsibility rating conductedby the Trud daily and the Agencyof Political and EconomicCommunications.SeptemberThe 5,000 Plate Mill's productswere successfully certified forcompliance with the DNV-0S-F101international quality standards.MMK announced its IFRS results forthe 2nd Q of 2010:• MMK Group's 2Q 2010revenue totaled USD 2.068 bn;• EBITDA margin was 21.1%.Fitch Ratings upgraded MMK'scredit rating outlook to Positive.MMK placed a 3-year, RUB 5 bnissue of exchange-traded bondsincluded in the MICEX quotationlist, with a coupon rate of 6.47%.MMK's annual report won the 1stprize in the category "Design andIdea" of the VII Open Competition ofAnnual Reports held as part of theIX International Investment Forum"Sochi-2010".Октябрь12