23 LIABILITIES Line code III. CAPITAL AND PROVISIONS At year beginning 1 2 3 At year end Authorized capital 410 10,630,222 11,174,330 Capital surplus 420 26,320,653 50,629,709 Capital reserves 430 531,511 558,717 Retained profit 470 61,452,534 105,388,274 Total for section III 490 98,934,920 167,751,030 IV. NON-CURRENT LIABILITIES Loans and borrowings 510 17,890,658 6,809,662 Deferred tax liabilities 515 1,103,643 5,998,004 Other non-current liabilities 520 193 0 Total for section IV 590 18,994,494 12,807,666 V. CURRENT LIABILITIES Loans and borrowings 610 0 10,451,923 Accounts payable 620 8,569,666 11,864,848 including: suppliers and contractors 621 4,470,530 6,898,371 wages payable 622 615,421 784,517 payables to government extra-budgetary funds 623 76,253 83,165 tax payables 624 498,495 611,995 payables to subsidiary and related companies 626 670,494 1,226,531 advances received 627 2,054,742 1,832,087 Dividends payable 630 917,979 270,094 Deferred income 640 84,481 89,412 Provisions for future expenses 650 307,997 0 Total for section V 690 9,880,123 22,676,277 BALANCE 700 127,809,537 203,234,973 REPORT ON VALUABLES ENTERED ON OFF-BALANCE ACCOUNTS Item Description Line code At year beginning 1 2 3 At year end Leased fixed assets: 910 1,497,457 1,639,482 including fixed assets under financial leasing 911 1,441,298 1,577,742 Inventory items received for safe custody 920 116,711 465,758 Registered high security forms 932 174 154 Collateral received for liabilities and payments 950 2,242,260 3,967,938 Collateral provided for liabilities and payments 960 22,140,637 36,512,450 Housing depreciation 970 21,831 250 Intangible assets received 990 1,054,433 1,215,522
LOSS AND PROFIT STATEMENT for <strong>2007</strong> Unit thousand rubles Item Description Code INCOME AND EXPENSES FROM ORDINARY ACTIVITIES Net revenue from sold goods, products and services (less VAT, excise tax and For the accounting year 1 2 3 For the same period of the previous year similar compulsory payments) 010 190,287,241 161,432,730 Cost of goods and services sold 020 (129,006,056) (102,745,086) Gross profit 029 61,281,185 58,687,644 Commercial expenses 030 (3,758,206) (2,490,955) Administrative expenses 040 (6,075,677) (6,087,699) Sales profit 050 51,447,302 50,108,990 OTHER INCOME AND EXPENSES Interest receivable 060 3,028,805 1,721,785 Interest payable 070 (1,252,073) (1,194,502) Income from participation in other organizations 080 220,906 205,630 Other income 090 115,612,184 175,910,273 Other expenses 100 (100,731,060) (177,681,152) Profit before tax 140 68,326,064 49,071,024 Deferred tax assets 141 24,537 27,526 Deferred tax liabilities 142 (4,894,361) (46,880) Current income tax 150 (12,018,627) (12,019,497) Tax penalties 151 (6,669) 16,983 Previous periods’ income tax 152 292,080 64,955 NET PROFIT FOR THE ACCOUNTING YEAR 190 (51,723,024) (37,114,111) FOR REFERENCE ANNUAL REPORT OPEN JOINT-STOCK COMPANY MAGNITOGORSK IRON & STEEL WORKS SEASON <strong>2007</strong> Deferred expenses from income tax 207 16,387,348 11,701,156 Fixed tax liabilities 208 1,119,359 882,427 Fixed tax assets 209 (618,256) (544,732) Basic earnings per share 210 4,60 3,49 23
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DISCLAIMER The present Annual Repor
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Victor Rashnikov, Chairman of the M
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Description Capitalization (as at y
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Content INTRODUCTORY ADDRESS of Vic
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In 2007 the Magnitogorsk Iron and S
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Human Resources The average payroll
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Using these mills, MMK manufactures
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as regards the organization of thei
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Relations with Local Communities in
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• • • ANNUAL REPORT OPEN JOIN
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10,000 8,000 6,000 4,000 2,000 0 AN
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70 60 50 40 30 20 10 0 Assets Curre
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4 3 2 1 0 Liquidity dynamics of MMK
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In accordance with its borrowing po
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1.0 0.8 0.6 0.4 0.2 Trends in OJSC
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The growing demand and buoyant pric
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8 Major Regional Markets for OJSC M
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70 LLC Uralsibtrade OJSC Uraltrubpr
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72 The changes in the domestic sale
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7 Victor Kutischev, OJSC MMK’s Co
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7 Overview of the Iron Ore and Coal
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• • Expenditures on major capit
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tons thanks to the installation of
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Currency Risk A significant portion
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Goals Planned value Actual value Ac
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The average wages at MMK are 35% hi
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# Causes of injuries 2003 200 200 2
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Environmental Expenditures 2007 saw
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6.00 5.16 5.00 4.00 3.00 2.00 1.00
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128 Exhaustive, precise and timely
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130 Report on Payment of Declared (
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132
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13 Information on Equity Capital As
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13 Liubov Gamper, OJSC MMK’s Dire
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138 Audit Committee Chairman of the
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1 0 # 5. 6. 7. Provisions of the Co
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1 2 # 18. 19. 20. 21. 22. 23. Provi
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1 # 31. 32. 33. 34. 35. 36. 37. Pro
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1 # 45. 46. 47. 48. Provisions of t
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1 8 # Provisions of the Code of Cor
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1 2 Director for Sales Director for
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1 Commercial Director Director for
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1 0 Protection Policy which regulat
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1 2 Sergey V. Krivoshchekov (born i
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1 - exercises the authorities of th
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1 Victor A. Kutischev (born in 1958
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1 8
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170
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172 1. Date of Publication of the L
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• settlement procedure - by insta
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