MMK entered the top 5 most profitable metallurgical companies for investors in the world

The methodology is based on an estimate of the total shareholder return (TSR) generated by enterprises in the sector over five years. The average annual return on ownership of MMK shares from 2014 to 2018 was 30.3%, BCG experts calculated. When calculating the profitability of shares, changes in their prices and dividend payments are taken into account. “The high positions of Magnitogorsk Iron and Steel Works in the rating of the Boston Consulting Group are a natural result of the successful implementation of the company's effective strategy, as well as a reflection of its consistent efforts to increase investment attractiveness. Maintaining a generally conservative financial profile, MMK provides a high level of return on invested capital and ranks among the largest Russian companies in terms of the volume of dividend payments, ”noted MMK's Director of Economics Andrei Eremin. For more than two years, PJSC MMK has been successfully implementing its dividend policy. providing for the payment of at least 50% of free cash flow (FCF), provided that the ratio "net debt /EBITDA" is below 1.0x. In particular, at the end of 2018, the company paid 100% FCF in the form of dividends. The strategic goal of the company until 2025 is to become a leader among steel companies in the world with a comparable production volume in terms of total shareholder return. The Boston Consulting Group's industry ranking, which MMK entered the top 5 this year, is part of a broader study covering a total of 33 branches of the world economy. The TSR indicator that underlies the study, the authors of the rating note, objectively reflects the true financial result for the company's shareholders.