Mmk · RUS:MAGN

Mmk — Investor Presentation (May 2010)

23 slides from Mmk's investor presentation, May 2010

  1. Slide 1: Magnitogorsk Steel: New leader in Russian steel

    Magnitogorsk Steel New leader in Russian steel ММК is a leading steel company operating in rapidly growing markets (Russia and Middle East) and specializing in producing high-tech, high value-added products. The company is a global leader in terms of cost, and in addition to its cutting-edge metals

  2. Slide 2: MMK – New Industry Leader

    MMK – New Industry Leader Largest steelmaker in Russia with 14 mln tons of capacity on one site One of eight premium quality producers of thick plates worldwide Most efficient metals company in 2009, EBITDA margin of 25.3% Great play on Russian infrastructure - domestic sales are priced with premium

  3. Slide 3: MMK Geography

    ММК Geography Interkos-IV Profit Metals service center and Covers 100% of MMK’s stamped-product factory. scrap needs. 59% Belon Prioskolsky GОК 630 mln tons coal reserves Largest iron-ore deposit, 5.9 mln tons mined in more than 2 bln tons of 2009. reserves. 5% 14% 18% ММК Metiz One of Russia’s larg

  4. Slide 4: Leading positions in the industry

    Leading positions in the industry Various Product Types Leading position on domestic market Share in MMK’s share MMK’s total Place in in Russia production Russia Hot-rolled sheet Picture 5.51 mln tons (63%) Hot-rolled sheet 37% 63% 1 12% Picture Cold-rolled sheet Cold-rolled sheet 24% 3 1.09 mln ton

  5. Slide 5: MMK's Strong Positions on the Domestic Market

    MMK’s Strong Positions on the Domestic Market Dynamics of Domestic and Export Sales, ‘000 tons Domestic Sales Structure 2009 8000 10% 7000 Hot rolled steel (including thick plate) 6000 4 903 18% Downstream products 5000 3 722 Long products 4000 52% 3000 2 141 3 861 Cold rolled steel 2000 21% 1000 To

  6. Slide 6: Unique Cost Position

    Уникальная Unique Costпозиция по себестоимости Position Slab сash-cost and raw-material price changes Key raw-material supplier structure USD/т Iron ore Scrap 600 200% 30% 150% 100% 500 70% 100% 400 50% 300 MMK ENRC (10-year contract) MMK 0% Coal Electricity 9% 15% 200 -50% 14% 35% 100 -100% 85% 42%

  7. Slide 7: Strong Presence on Export Markets

    Strong Presence on Export Markets Export Development Strategy Export-Sales Structure 2009 г. • Company successfully managing export sales 4% 3% Hot-rolled steel • Key export markets – rapidly-growing markets of 16% Cold-rolled steel Middle-East, Asia and Far-East. • MMK expanding presence on most pr

  8. Slide 8: Financials

    Финансовые Financials результаты Key Indicators Trends Key Indicators $ mln 12 000 2009 2008 2007 2006 10 550 10 000 Crude steel output, kt 9 618 11 957 13 261 12 455 8 197 8 000 Finished steel, kt 8 764 10 911 12 203 11 346 6 424 6 000 5 081 Revenues, $ mln 5 081 10 550 8 197 6 424 4 000 EBITDA, $

  9. Slide 9: MMK Group Indicators Compared to its Competitors

    MMKПоказатели Группы ММК Group Indicators в сравнении Compared to itsс Competitors конкурентами Steel Companies’ Debt Loads Debt/EBITDA $ mln $ mln 9000 1500 1 444 10 8000 1 285 1 237 7000 8 6000 1000 844 6 5000 5 989 5 787 4000 7 301 4 3000 500 4 329 2000 1 290 2 076 2 1000 2 009 1 953 1 491 828 96

  10. Slide 10: Long-Term Investment Program

    Долгосрочная Long-Term инвестиционная Investment Programпрограмма ММК Crude-steel capacity 16.3 mln tpy Finished-product capacity 15.3 mln tpy 14.3 mln tpy 15.3 mln tpy Expected finished-product output 14.3 mln tpy 14.3 mln tpy 13.3 mln tpy 15.0 mln tpy 14.3 mln tpy 13.3 mln tpy 14.0 mln tpy 14.3 ml

  11. Slide 11: Plate Mill 5000

    Plate Mill 5000 Производство толстого листа - Стан 5000 Future use of Mill 5,000 products Only eight producers worldwide (in Germany, France, and Japan) are able to manufacture comparable thick plate. • Project completion time under SMS Demag contract - 32 months • November 2007–May 2009: constructi

  12. Slide 12: Mill 5000 - Strengthening Positions in Pipe Sector

    Mill 5000 - Strengthening Positions in Pipe Sector Growth in Demand for LDP in Russia Key Customers of Thick Plate for LDP in Russia ‘000 ton 3,500 2009 2010Е 2% R=1 3,000 2,500 CAG 15% 26% 2,000 1,500 14% 41% 51% 1,000 16% 500 19% 0 17% (500) (1,000) 2002 2003 2004 2005 2006 2007 2008 2009 2010Е 20

  13. Slide 13: Strengthening Position in Auto Industry

    Strengthening Position Укрепление позицийinвAuto Industry автопроме Mill 2,000 Complex Private Car Ownership Key equipment supplier - SMS Demag 700 Key Mill 2,000 specifications 600 575 Private car ownership, vehicles 522 per 1,000 people Capacity, ’000 tpy 2,000 500 447 424 Width, mm 850-1,880 400

  14. Slide 14: Mill 2000 Cold Rolled Steel Complex

    Mill 2000 Cold Rolled Комплекс Steelхолодной стана 2000 Complexпрокатки Geography of the Project Production Outlook for Russian Auto Industry ‘000 units 2,500 2,363 Project on construction of a metals servicing center and factory for pressed components 2,000 1,798 St. Petersburg 1,500 1,000 724 500

  15. Slide 15: Entry to Rapidly Growing Turkish Market

    EntryВыход to Rapidly Growing Turkish на быстрорастущий Market рынок Турции Locations of Key Markets Europe Istanbul Middle East Iskenderun Africa Priority export markets Important export markets Flat Steel Market in Turkey, mln tons Turkish Flat Steel Market Structure 12,0 10,9 11,1 10,3 10,4 10,8

  16. Slide 16: Fortescue Metals Group: Presence in Australian Iron Ore Market

    Fortescue Metals Group: Presence in Australian Iron Ore Market MMK owns 5% shares of Fortescue Metals - one of Australia’s largest iron ore producers China’s export iron-ore spot prices, $/ton 220 200 180 160 140 120 100 80 60 40 01.12.06 01.04.07 01.08.07 01.12.07 01.04.08 01.08.08 01.12.08 01.04.0

  17. Slide 17: Belon Coal Company

    Belon Coal Company MMK owns 82.6% of Belon Coking Coal Segment ‘000 tons Advantages of the deal for MMK: 7,000 6790 • Guaranteed supplies of deficit high grade coking coal 6,000 5280 • Stable chemical properties of coal used in steelmaking 5110 4920 5,000 process, lower consumption of coke 4,000 • N

  18. Slide 18: Geographic Distribution of Belon Assets

    География Geographic предприятий Distribution ОАО "Белон" of Belon Assets Coal reserves, mln tons Chertinskaya- Koksovaya (Zh) 43 Uch. Erunakovsky-2 Chertinskaya- Concentration plant Yuzhnaya (2h) 84 66 Coking coal mine Novobachtsky Steam coal mine Slit (KC) 10 Listviazhnaya Kostomov- skaya (Zh) Kem

  19. Slide 19: Appendices

    MAGNITOGORSK STEEL Appendices

  20. Slide 20: Production Process

    Production Process Схема производственных процессов Rolling facilities Blast furnace production Steel production (10.3 mln tons p.a.) Long products Tin plate Production of agglomerates EAF (10.8 mln tons p.a.) (1.5 mln tons p.a.) Cold rolled products (0.24 mln ton p.a.) (2.24 mln tons p.a.) (2.5 mln

  21. Slide 21: Iskenderun

    Schedule of MMK-Atakash Project and Construction Costs Production Output Capacity for crude steel ‘000 ton 2 500 2 197 2 252 Forecasted production output 2 000 1 900 2,317,000 tons 1 500 2,317,000 tons 2,197,000 tons 1 000 1,900,000 tons 520 500 520,000 tons 67 67,000 tons Istanbul 0 2009 2010Е 2011

  22. Slide 22: MMK-Atakas Production Plan

    MMK-Atakas Production Plan Hot Rolled Coil Mill 2,317 Finished products structure 18% Pickling aggregate Production Capacity, Hotrolled steel 1,165 ‘000 tons per year Galvanized flat products Cold rolled coil mill 20% 62% 759 Color-coated rolled products Galvanizing line Total: 2 252 kt 867 Color-co

  23. Slide 23: Disclaimer

    Disclaimer •THIS PRESENTATION IS FOR INFORMATION ONLY. •THIS PRESENTATION IS FOR DISTRIBUTION IN UK ONLY AMONG THE PEOPLE HAVING PROFESSIONAL SKILL IN THE ISSUES RELATED TO INVESTMENTS WITHIN THE MEANING OF ARTICLE 19(5) OF DIRECTIVE ON FINANCIAL ADVERTISEMENT APPROVED IN 2005 ON THE BASIS OF LAW ON

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