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 MarketsFinancesCorporateGovernanceEnvironmentProtection20092.5Strategic goals in the Internal Processes spherereached 95.6%, up from 91.4% in 2009.20102.4052.5221.9271.51.51.31611.094 0.9541.2020.9141.1480.9561.010 1.067 1.0101 0.885 0.7911.014 1.0340.50.9310.5480.50ВП1 ВП2 ВП3 ВП4 ВП5 ВП6 ВП7 ВП80 ВП1 ВП2 ВП3 ВП4 ВП5 ВП6 ВП7 ВП8ВП1– develop customer-specific approachВП2 - develop product quality managementВП3 - diversify into new products with a higher added valueВП4 - raise production processes' efficiencyВП5 - develop and adopt new technologyВП 6 - improve logisticsВП7 - secure long-term raw materials suppliesВП8 - pursue responsible social and environmental policiesObjective VP2 "Develop Product Quality Management" was not met due to the learning curve related to newplate production processes. Production levels were raised thanks to the 5,000 mm Plate Mill commissioned in2009 (with 943,000 t of plate produced in 2010).Objective VP7 "Secure Long-Term Raw Materials Supply" was met, largely thanks to the inclusion of OJSCBelon in the MMK Group which enabled MMK to avoid the coal shortage in connection with the accident at theRaspadsky Mine.The implementation of strategic goals in the Education and Development spherereached 100%,against 94.5% in 2009.The Company achieved the objectives of raising employee qualifications, improving staff motivation andproviding informational support to the Company's operations.20092ОР1 Conformity of personnel'squalification to strategyrequirements201021.510.9081.0151.0000.9450.878ОР2 Conformity of motivationto strategyОР3 Conformity of informationresources to strategyОР4 Conformity of corporateculture to strategy1.511.0621.6851.001.004 0.9290.50.50 ОР1 ОР2 ОР3 ОР40 ОР1 ОР2 ОР3 ОР4This analysis of MMK's results in strategic priority areas in 2010 demonstrates that the Company's long-termgoals set out in the corporate strategy have generally been achieved.Steel & Style , 10 MMK ANNUAL REPORT 27