Public Joint Stock Magnitogorsk Iron & Steel Works : MMK Board of Directors Approved New Dividend Policy

14.11.2019

On November 13, 2019, the Board of Directors of MMK approved a new version of the Company's dividend policy.

In line with the new dividend policy, the Board of Directors of MMK will now be guided by the following established principles when making recommendations on dividend payments:

- Тhe amount allocated for dividend payments will usually be at least 100% of free cash flow, calculated on the basis of MMK's consolidated financial statements and in accordance with IFRS, provided that the net debt/EBITDA ratio calculated according to the Company's consolidated financial statements is below 1.0x;

- If the net debt/EBITDA ratio exceeds 1.0x, the amount allocated for dividend payments will usually be at least 50% of free cash flow, calculated on the basis of MMK's consolidated financial statements in accordance with IFRS.

According to the new dividend policy, MMK will make annual dividend payments and will strive to pay dividends on a quarterly basis, provided that the Company's financial position is stable.

About MMK
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia span the entire value chain from iron ore processing to downstream production of rolled steel. MMK produces an extensive range of steel products with a predominant share of high-value-added products. In 2018, the company produced 12.7 million tonnes of crude steel and 11.7 million tonnes of commercial steel products. MMK Group had sales in 2018 of USD 8,214 million and EBITDA of USD 2,418 million.

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