Annual Report 2010 - Magnitogorsk Iron & Steel Works

16 22 26 28 32 38 50 72MMK , sBusiness ModelMMK’s Missionand StrategyOJSC MMK Boardof Directors'The Company'sProductionSales MarketsFinancesCorporateGovernanceEnvironmentProtectionMARCHRussian President Dmitry Medvedevvisited MMK for the first time.Mr.Medvedev chaired a session ofthe Presidential Commission forModernization and TechnologicalDevelopment as part of the visitwhere the issue of training qualifiedpersonnel for industrial enterpriseswas discussed.MMK won in the All-RussiaCompetition "Best RussianCompanies. Growth, Performance,Reliability 2010" sponsoredby the Russian Industrialistsand Entrepreneurs Union, inthe category "EnvironmentallyResponsible Business".MMK announced the acquisitionof a 100% interest in MMK's steelmaking JV in Turkey. The value ofthe deal to acquire an additional50% minus 1 share totaled USD 485million.The Inskederun site of MMK'ssteel making plant in Turkeycommissioned an electric arcfurnace facility with an annualcapacity of 2.3 m t.APRILMMK announced its IFRS resultsfor the 12 months and the 4th Q of2010:• MMK Group's 2010 revenuetotaled USD 7.719 bn;• EBITDA margin was 21%.MMK became a winner in the IXAnnual National Prize Award "ITLeader". The event was attendedby over 500 representativesof companies engaged in thedevelopment and implementationof innovative solutions in IT.MAYMMK held its Annual GeneralShareholders' Meeting whichadopted the following resolutions:• The authority of LLC MMKManaging Company as the soleexecutive body of MMK wasterminated;• Boris Dubrovsky was appointedGeneral Director of MMK;• A new Board of Directors waselected consisting of VictorRashnikov, Vitaly Bakhmetiev,Boris Dubrovsky, Nikolai Lyadovand Oleg Fedonin as executivedirectors, David Herman andBernard Sucher as newly electedindependent directors, andDavid Logan, Zumrud Rustamovaand Peter Charow as reelectedindependent directors (see thesection on Corporate Governancefor more details).• ZAO KPMG was approved as thenew auditor of the Company;• The 2010 financial year dividendswere calculated at RUB 0.33 perordinary share.The Fitch rating agency upgradedMMK's long-term default ratingfrom BB to BB+, and the Company'snational scale long-term rating rosefrom AA- (rus) to AA (rus).Steel & Style , 10 MMK ANNUAL REPORT 15