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 MarketsFinancialStatementsCorporateGovernanceEnvironmentProtectionTABLE 4Coal SegmentUSD m 2009 2010Change+/-Revenue fromsales94 556 462Cost of goodssold72 332 260EBITDA 8 270 262EBITDA margin 9% 49% 40%Operating -25 152 177incomeOperatingmargin-27% 27% 54%The coal segment's revenue in 2010 was USD 556 m,with EBITDA at USD 270m and EBITDA margin at 49%for the reported period. Operating profit margin for2010 was 27%. TABLE 4MMK began consolidating Belon from Q4 2009.The coal segment'srevenue (Belon) reachedUSD 556 mAnalysis of MMK Group's Financial PositionTABLE 5млн. USDAggregated Balance Sheet for 2009 – 201031.12.2009 31.12.2010 Changevalue % value % +/- %AssetsCurrent assets 2 430 16% 2 985 18% 555 23%cash and short-term financialinvestments386 3% 708 4% 322 83%receivables 839 6% 791 5% -48 -6%inventories 958 6% 1 236 7% 278 29%Non-current assets 12 419 84% 13 753 82% 1 334 11%long-term financial investments 627 4% 1 051 6% 424 68%property, plant and equipment 11 292 76% 12 226 73% 934 8%Total assets 14 849 100% 16 738 100% 1 889 13%LiabilitiesShort-term liabilities 1 777 12% 2 084 12% 307 17%payables 928 6% 971 6% 43 5%short-term loans and borrowings 808 5% 1 074 6% 266 33%Long-term liabilities 2 747 18% 3 968 24% 1 221 44%long-term loans and borrowings 1 266 9% 2 454 15% 1 188 94%Equity 10 325 70% 10 686 64% 361 3%Total liabilities 14 849 100% 16 738 100% 1 889 13%The MMK Group has a sustainable financial position evidenced by relevant financial indicators.Steel & Style , 10 MMK ANNUAL REPORT 41