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

More documents

Recommendations

Info

72 The changes in the domestic sales structure occurred due to a substantial growth in shipments of long and flat products, thanks to the Company’s promotional efforts and growth of demand on the market. The sales of long products increased by 15%, hot-rolled products, by 24, with the largest growth achieved in the sales of cold rolled products: 56% compared to the level of 2006. The sales of downstream products increased by 4%. OJSC MMK has practically exhausted its potential for increasing shipments of this type of products due to the complete utilization of the production facilities. thousand tons 3,500 3,000 2,500 2,000 1,500 1,000 500 0 OJSC MMK product range sold in the domestic market Slabs and billets Long products HR products CR products Downstream 2003 2004 2005 2006 2007 The sectoral sales structure of MMK in 2007 did not undergo any significant changes. The largest steel quantities were shipped to to the enterprises of the steel sector, namely, pipe, metalware and metal-working plants, which in 2007 accounted for more than one third of all the sales. The highest growth was achieved in sales to automotive and metal-working plants, as well as to the construction industry.
ANNUAL REPORT OPEN JOINT-STOCK COMPANY MAGNITOGORSK IRON & STEEL WORKS OJSC MMK Sectoral Sales Structure in the Russian Market Sector 200 2007 kt % kt % Steel Industry, including 1, 845 33% 2, 282 36% metalware and steel-processing plants 640 12% 1, 031 16% Pipe production 1, 205 22% 1, 251 20% Machine building, including 1, 560 28% 1, 712 27% automotive industry 483 9% 641 10% Bridge construction 30 1% 28 0.4% Construction 180 3% 257 4% Food industry 167 3% 165 3% Fuel and energy sector 60 1% 60 1% Regional distribution 1, 698 31% 1, 842 29% Total 5, 540 100% 6 ,346 100% Priority Distribution Channels SEASON 2007 The aim of OJSC MMK is to do direct business with large consumers of steel products and become their main strategic supplier. This is facilitated by a long-standing cooperation of MMK with its suppliers, as well its favorable geographical location close to the large industrial centers of the Urals and the Volga Region. The share of sales to large consumers is maintained at a level of 70%. About 30% of domestic steel shipments are sold in the spot market through regional dealers’ network. The current ratio of sectoral and spot markets is optimal, as it allows to react flexibly to market changes. . The dealers’ network includes OJSC MMK’s authorized dealers (MAGMA Trade,VOLGA Trade and UralSibTrade), as well as independent trader companies maintaining their own networks of warehouses and steel service centers. In 2007 the share of all MMK’s sales through the authorized traders in the domestic spot market amounted to 72%. All the export sales of the Company are made through trading companies. In 2007 97% of all export sales were channeled through the affiliated company ММК Trading AG, with the remaining quantity sold through independent companies. In 2007, as part of an effort to improve business relations with customers, MMK set up an electronic trade platform positioned as an advanced sales channel. . Such a platform has a number of significant advantages compared to conventional sales channels, as it allows to provide the clients with a number of qualitatively new services, such as trading in an online mode in any time convenient for them regardless of their geographical location. 73
Page 2 and 3:
DISCLAIMER The present Annual Repor
Page 4 and 5:
Victor Rashnikov, Chairman of the M
Page 6 and 7:
Description Capitalization (as at y
Page 8 and 9:
Content INTRODUCTORY ADDRESS of Vic
Page 10 and 11:
In 2007 the Magnitogorsk Iron and S
Page 13 and 14:
ANNUAL REPORT OPEN JOINT-STOCK COMP
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22: ANNUAL REPORT OPEN JOINT-STOCK COMP
Page 23 and 24: Human Resources The average payroll
Page 29 and 30: Using these mills, MMK manufactures
Page 33 and 34: as regards the organization of thei
Page 35 and 36: Relations with Local Communities in
Page 43 and 44: • • • ANNUAL REPORT OPEN JOIN
Page 49 and 50: 10,000 8,000 6,000 4,000 2,000 0 AN
Page 51 and 52: 70 60 50 40 30 20 10 0 Assets Curre
Page 53 and 54: 4 3 2 1 0 Liquidity dynamics of MMK
Page 55 and 56: In accordance with its borrowing po
Page 59 and 60: 1.0 0.8 0.6 0.4 0.2 Trends in OJSC
Page 65: The growing demand and buoyant pric
Page 68 and 69: 8 Major Regional Markets for OJSC M
Page 70 and 71: 70 LLC Uralsibtrade OJSC Uraltrubpr
Page 74 and 75: 7 Victor Kutischev, OJSC MMK’s Co
Page 76 and 77: 7 Overview of the Iron Ore and Coal
Page 85 and 86: • • Expenditures on major capit
Page 89 and 90: tons thanks to the installation of
Page 97 and 98: Currency Risk A significant portion
Page 101 and 102: Goals Planned value Actual value Ac
Page 105 and 106: The average wages at MMK are 35% hi
Page 109 and 110: # Causes of injuries 2003 200 200 2
Page 119 and 120: Environmental Expenditures 2007 saw
Page 121 and 122: 6.00 5.16 5.00 4.00 3.00 2.00 1.00
Page 123 and 124:
Page 125:
Page 128 and 129:
128 Exhaustive, precise and timely
Page 130 and 131:
130 Report on Payment of Declared (
Page 132 and 133:
132
Page 134 and 135:
13 Information on Equity Capital As
Page 136 and 137:
13 Liubov Gamper, OJSC MMK’s Dire
Page 138 and 139:
138 Audit Committee Chairman of the
Page 140 and 141:
1 0 # 5. 6. 7. Provisions of the Co
Page 142 and 143:
1 2 # 18. 19. 20. 21. 22. 23. Provi
Page 144 and 145:
1 # 31. 32. 33. 34. 35. 36. 37. Pro
Page 146 and 147:
1 # 45. 46. 47. 48. Provisions of t
Page 148 and 149:
1 8 # Provisions of the Code of Cor
Page 150 and 151:
1 0 # 73. 74. 75. Provisions of the
Page 152 and 153:
1 2 Director for Sales Director for
Page 154 and 155:
1 Commercial Director Director for
Page 156 and 157:
1 • • • • • • • •
Page 158 and 159:
1 8 • • • • • • • •
Page 160 and 161:
1 0 Protection Policy which regulat
Page 162 and 163:
1 2 Sergey V. Krivoshchekov (born i
Page 164 and 165:
1 - exercises the authorities of th
Page 166 and 167:
1 Victor A. Kutischev (born in 1958
Page 168 and 169:
1 8
Page 170 and 171:
170
Page 172 and 173:
172 1. Date of Publication of the L
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
• settlement procedure - by insta
Page 183 and 184:
Page 185 and 186:
24) Services Agreement # 150577 bet
Page 187 and 188:
• • • validity period - till
Page 189 and 190:
The following persons are recognize
Page 191 and 192:
The following persons are recognize
Page 193 and 194:
61) rental agreement # 152445 betwe
Page 195 and 196:
• validity period - from the date
Page 197 and 198:
days from the receipt of invoice;
Page 199 and 200:
Page 201 and 202:
• • • settlement procedure -
Page 203 and 204:
The Body which approved the transac
Page 205 and 206:
• • • validity period - till
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
• • • • ANNUAL REPORT OPEN
Page 213 and 214:
• settlement procedure - funds tr
Page 215 and 216:
164) paid service agreement # 16001
Page 217 and 218:
Page 219 and 220:
There are no beneficiaries under th
Page 221 and 222:
during the shipment, with a discoun
Page 223 and 224:
• supply period - until next Annu
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
CONSOLIDATED BALANCE SHEETS AS OF D
Page 231 and 232:
Note Years ended December 31, 2007
Page 233 and 234:
ASSETS I. NON-CURRENT ASSETS Line c
Page 235 and 236:
LOSS AND PROFIT STATEMENT for 2007
Page 237 and 238:
BREAKDOWN OF INDIVIDUAL PROFITS AND
Page 239 and 240:
3.3 Reporting cycle Date of Publica
Page 241 and 242:
EN10 Percentage and total volume of
Page 244:
The OJSC MMK’s Annual Report is e
show all

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

Create successful ePaper yourself

Delete template?

Save as template?