PJSC Magnitogorsk Iron and Steel Works (MMK)
PJSC Magnitogorsk Iron and Steel Works: Chairman of MMK Board of Directors
letter to shareholders
29-Apr-2020 / 09:48 CET/CEST
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Chairman of mmk board of Dear shareholders,
directors letter to shareholders
29 April 2020
Amid the unprecedented
Magnitogorsk, Russia COVID-19 situation, which
affects the entire world, MMK
aims to maintain its
established standards of
corporate governance. This
means transparency of our
operations and timely updates
on developments both within
the Group and on our sales
markets.
The COVID-19 pandemic has had
a severe negative impact on
every aspect of people's
lives on a global scale,
including production.
Recently, we have seen
weakening demand in key
industries consuming steel,
including MMK's products,
such as the construction,
automotive and pipe-making
industries.
In this situation, the Group
needs to take every measure,
including financial measures,
to protect the health and
wellbeing of our people,
their families and our
communities, including our
customers and suppliers.
At the same time, we are
taking other decisive actions
both to protect the Group's
interests over the long term
and to ensure additional
resilience against the
potential production
disruption. These actions
include: reducing planned
2020 capex by ca. 20%;
actively managing cash flows
to ensure that we are timely
fulfilling our payment
obligations to our suppliers
and sub-contractors; and
implementing a cost-cutting
programme.
We consider it prudent in
these unprecedented times to
defer decisions regarding an
interim dividend for 2020
until the autumn (subject to
the actual impact of the
COVID-19 pandemic) in order
to further strengthen the
Group's balance sheet and
liquidity.
The Board of Directors will
return to discussions of the
interim dividend once the
crisis resolves and business
activity on MMK Group's key
sales markets resumes. We see
the following indicators as
signals of the situation and
basic economy parameters
returning to normal: COVID-19
situation normalises;
business operations are back
to normal across Russia;
MMK's capacity utilisation
rate is at least 70%; MMK's
EBITDA margin is at least
20%.
Thank you for your
understanding and continued
support.
Victor Rashnikov
Chairman of MMK's
Board of Directors
ISIN: US5591892048
Category Code: MSCH
TIDM: MMK
LEI Code: 253400XSJ4C01YMCXG44
Sequence No.: 61038
EQS News ID: 1032443
End of Announcement EQS News Service
(END) Dow Jones Newswires
April 29, 2020 03:48 ET (07:48 GMT)
