MMK announces its FY 2008 financial results

  MMK announces its FY 2008 financial results under Russian Accounting Standards (RAS)

 Successful performance

In 2008 MMK achieved strong financial and operational results. In particular, MMK saw the record levels of revenue and sales income. The company managed to maintain a high level of crude steel and commercial steel products output.

MMK benefited from favorable market conditions during the first nine months of 2008 owing to the diversified production portfolio structure and flexible sales policy. This also allowed the company to react promptly to the changing market conditions at the end of the year.

Key 2008 operational highlights

·         Crude steel output stood at 12m tons

·         Commercial steel production amounted to 11m tons

Key 2008 financial highlights

·         FY 2008 revenue up by 19% to RUR 226bln (RUR 190bln in 2007)

·         FY 2008 sales income stood at RUR 54bln (RUR 51bln in 2007)

FY 2008 net income stood at RUR 10bln in 2008. The net income change at the end of 2008 was driven by the following factors:

-  non-cash revaluation of investments in securities of Russian and foreign entities, caused  by negative trends of the global financial markets;

- prices markdown for the raw material stock generated in 2008; this will allow to objectively reflect operations of the company starting from the beginning of 2009.

MMK continues to enjoy high levels of financial stability and liquidity.

Financial statement for FY2008 results under RAS is to be found at:   http://www.mmk.ru/rus/shareholders/b_reports/r_reports/index.wbp

The presentation of the FY2008 results under RAS is to be found at: http://www.mmk.ru/rus/shareholders/presentations/index.wbp