Annual report 2007 - Magnitogorsk Iron & Steel Works ...

ANNUAL REPORT OPEN JOINT-STOCK COMPANY MAGNITOGORSK IRON & STEEL WORKS
SEASON 2007
Dividend Policy Overview
Dividends are paid by OJSC MMK according to the Federal Law on Joint Stock Companies and the Regulations
on the Dividend Policy of OJSC MMK. The dividend policy is based on the balance of the shareholders’
and investors’ interests, as well as the requirements of the Company’s further development and technical
modernization.
Lately OJSC MMK has approved a dividend policy under which the Board of Directors, in its recommendations
on the amount of dividends to be paid, shall proceed from the assumption that the amount of dividends should
be at least 15% of the net income determined on the basis of the consolidated profit and loss statement of OJSC
MMK and its subsidiaries. . In the future the Board of Directors will target 25% of such income as the share to be
allocated as dividends.
Report on Dividends Payment
In accordance with the decision of the Annual General Shareholders’ Meeting dated March 30, 2007, an amount
of RUB 9,471.5 million (USD 364.0 million) accrued as dividends for 2006.
Obligations to the shareholders in relation to the payment of dividends for 2006 were fulfilled within the terms
determined in the Charter of the Company.
According to the decision of the Extraordinary General Shareholders Meeting dated August 30, 2007, an amount
of RUB 4,879.2 million (USD 189.4 million) accrued as dividends for H1 2007.
Obligations to the shareholders in relation to the payment of the dividends for 6 months of 2007 will be fulfilled
within the terms determined in the Charter of the Company.
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