24 April 2017, Magnitogorsk
MMK Board Meeting Results
OJSC Magnitogorsk Iron and Steel Works ('MMK', or 'the Company') (LSE: MMK) announces that MMK Board of Directors held a meeting on 21 April 2017.
The Board of Directors recommended that the General Meeting of Shareholders should pay dividends on the basis of MMK's consolidated annual financial statements for 2016 on OJSC MMK's issued ordinary registered shares of RUB 1.242 (including taxes) per share, and proposed a dividend record date of close of trading on 6 June 2017.
Dividends for 2016 therefore amount to 60% of Free Cash Flow, including not only operating profits but also profits from the sale of shares in Fortescue Metals Group.
The Board of Directors endorsed OJSC MMK's dividend policy, as well as the voting forms for items on the agenda of the Annual General Meeting of Shareholders in MMK.
The Board of Directors also gave preliminary endorsement to the Annual Report and annual financial statements, and to the final agenda for the Annual General Meeting of Shareholders in OJSC MMK:
1. Approval of the annual report, annual accounting (financial) statements of OJSC MMK for the 2016 financial year.
2. Distribution of profit, including payment (declaration) of dividends for the 2016 financial year.
3. Election of members of OJSC MMK's Board of Directors.
4. Election of members of OJSC MMK's Audit Commission.
5. Approval of OJSC MMK's auditor.
6. Approval of the amount to be paid in remuneration and compensation to members of OJSC MMK's Board of Directors.
7. Approval of the amount to be paid in remuneration and compensation to members of OJSC MMK's Audit Commission.
8. Approval of the new edition of PJSC MMK's Charter.
9. Approval of PJSC MMK's revised internal documents governing the activities of PJSC MMK's governing bodies:
9.1 approval of the 'Provisions governing Annual General Meetings at PJSC MMK',
9.2 approval of the 'Provisions governing the Board of Directors at PJSC MMK',
9.3 approval of the 'Provisions governing the collegial executive body, the Management Board, at PJSC MMK',
9.4 approval of the 'Provisions governing the sole executive body, the CEO of PJSC MMK',
9.5 approval of the 'Provisions governing the Audit Commission at PJSC MMK'.
The Board of Directors also added the following people to the list of candidates for the Board: Viktor Rashnikov, Nikolai Lyadov, Olga Rashnikova, Sergey Ushakov, Pavel Shilyaev.
At the meeting, the Board outlined the scope of documents (information) to be sent as reference to shareholders prior to the AGM of OJSC MMK and approved the order in which such documents (information) should be presented.
Shareholders can view the materials from 25 April 2017 on the Company's website at: http://mmk.ru/corporate_governance/disclosure_of_information/materials_to_the_shareholders_meeting/ and also at the following addresses: Status Registrar Agency, Magnitogorsk branch, 212 Karl Marx avenue, Magnitogorsk; and at the OJSC MMK shareholder relations group, offices 421, 426, 6 Pushkin avenue, Magnitogorsk; on weekdays from 9:00am to 5:30pm (Fridays from 9:00am to 4:15pm), with a break from midday to 1:00pm local time.
The Board issued a recommendation for the AGM to consider approving the candidacy for company auditor of AO PriceWaterhouseCoopers Audit, and set the amount of payment for its services.
About MMK
OJSC MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2016, the company produced 12.5 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2016 of USD 5,630 million and EBITDA of USD 1,956 million.
Contacts:
Investor Relations Department:
Andrey Serov, Head of IR
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru
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