Where are MMK shares listed?
MMK is listed on 3 stock exchanges: MICEX Stock Exchange (MAGN), RTS (Russian Trading System, MAGN) and the London Stock Exchange (MMK).
What is MMK`s dividend policy?
Please go to the "Dividends"
page to find out about MMK dividends (dividend policy and schedule).
What are MMK`s main investment highlights?
- Key beneficiary of steel market recovery - production growth currently planned to 70% by 2017, more than 45% by 2013
- Growing volumes and share of HVA products (45% by 2013) to secure sustainably high efficiency
- Focus on specialty steel products to replace imports in Russia and to capture domestic market price premium
- Emphasized direct exposure to growing sectors in the domestic market - pipe-building, automotive and heavy machinery industries
- Technological flexibility to address raw-material market fluctuations - crude steel production using iron ore/coking coal vs. scrap
- Strong balance sheet well-positioned to finance further growth
- Plans for further strengthening in commodities
To what degree are MMK`s operations vertically integrated?
MMK has been most active in increasing its vertical integration.
Iron ore: MMK is 100% covered with stable supplies of iron ore. Captive sources supply 30% of this raw material (up from 20% in 2008), 70% comes from a 10-year agreement with ENRC (until 2017).We are also reviewing options for developing the Prioskol deposit.
Coking coal: through acquisition of Belon MMK has covered 50% of its coking coal needs.
Scrap: MMK owns the largest scrap collector in Russia – 100% self-sufficiency in scrap.
Electricity: 75% self-sufficiency.
What are growth plans of MMK in terms of volumes?
MMK presents highest growth bid among Russian steel names through organic growth and expansion projects – production growth currently planned to 70 % by 2017 (more than 45% by 2013 thanks to the commissioning of the first stage of a new cold rolling complex - Mill 2000 and completion of MMK project in Turkey) as compared to 2010.
How would you assess MMK corporate governance standards?
MMK pursues best corporate governance and disclosure practices (recognized by S&P as 2 in Russia for 2010).
Half of the Board members are independent and three permanent BoD committees currently operate.
Why does MMK focus its development strategy on the domestic market?
We can achieve higher prices on the domestic and we see strong growth prospects in the coming years. It took a decade of technical overhaul to move from primarily exporting (63% of overall production in 1999 was exported) to being a key supplier to the domestic pipe, heavy engineering and automotive industries (domestic shipments stood at 69% in 2010).
How much does MMK stand to benefit from the recovery in infrastructure and construction spending?
In addition to high exposure to infrastructure and corporate spending in Russia due to our high quality flat steel products (currently MMK supplies its products for the construction of all the Gazprom and Transneft pipe-line projects), MMK has the most modern facilities in Europe with capacity to produce 2 mtpy of the widest range of long steel products.
What are MMK`s export abilities?
MMK historically exported approximately 4 mtpy to customers in more than 60 countries. Due to weaker demand in international markets we exported 3.2 mt in 2010.
In terms of global expansion MMK completed the construction steel-making complex in Turkey to produce 2.3 mtpa of finished steel goods. This project allows MMK to increase shipments to its key export region - Middle East - and get bigger exposure to the EU market.