Annual Report 2011 - Magnitogorsk Iron & Steel Works ...

2011 /
ANNUAL REPORT
About Us Sales Markets
Finances
Risks
Social Sphere
Management
Information
Steel segment (Russia) Steel segment (Turkey) Coal segment
% of consolidated revenue* % of consolidated revenue % of consolidated revenue**
Production output (kt) Production output (kt) Production output (kt)
2010
2011
2010
2011
MMK’s Business Model MMK’s Strategic Goals
About the Company
MMK is one of the world’s top steel producers and a leader of the Russian steel sector. Its production
capacity enables MMK to produce 15.6 million tons of quality steel products per year.
93.9% 4.5% 1.6%
10,253
10,653
0 4,000 8,000 12,000
156
0 100 200 300 400 500 600
EBITDA margin (%) EBITDA margin (%)
18.1%
13.3%
2010
2011
-14.4%
-15%0 -10%
-8.0%
0% 5% 10% 15% 20% -20%
-5%
505
2010
2011
2010
2011
2010
2011
0 500 1,500 2,500 3,500
EBITDA margin (%)
34.2%
2,960
3,216
48.6%
0% 20% 40% 60%
* excluding intra-Group sales
** the majority of coal segment sales (about 76% of volume) is supplied to MMK Group’s parent company (OJSC MMK)
10 11
2
MMK’s key goal is to maintain its long-term
competitiveness on the global steel markets.
To achieve this goal MMK is doing the following:
Diversifying into new of
products
4
Ensuring sustainable development
Expanding its sales markets
1
3
Reducing costs