Page 34-35 - MMK annual report 2011

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ANNUAL REPORT
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Last year the global economy continued its gradual recovery from the recession of 2008–2009.
Thanks to increased demand for durable goods and rising capital investments, demand for steel from
key consuming industries (construction, machine building, automotive, etc.) rose. Implementation of
infrastructure projects initiated during the recession also helped to support demand.
We expect that the global economy will continue growing in 2012, which will have a positive effect on
steel demand. As a result, we believe that the Company’s revenue may approach pre-crisis levels.
Analysis of y-o-y Change in MMK Group Revenue, USD million
In 2011 revenue from sales stood at USD 9,306 million (up 21 % from 2010). Revenue rose mainly due to
higher sales volumes and prices.
2011 Revenue Structure by Product Type
Revenue, USD million
Financial review
MMK Group Financial performance
Revenue Structure by Segment, USD million
Segment
2010
2011
Change
Change, %
Steel segment (Russia)
7,425
8,736
1,311
18 %
Steel segment (Turkey)
137
417
280
204 %
Coal segment
157
153
(4)
–3 %
Total
7
,
719
9
,
306
1
,
587
21 %
The Russian steel segment accounts for the majority of MMK Group’s revenue (94 %). Significant
progress on ramping up production in Turkey helped revenue from the Turkish steel segment increase
by over 200 %, with the segment’s share of Group revenue reaching 4 %. The coal segment accounts for
just around 2 % of Group revenue due to the fact that the majority of this segment’s output is consumed
within the Group.
2,000
4,000
6,000
8,000
10,000
12,000
2007
2008
2009
2010
2011
0
10,550
8,197
9,306
7,719
5,081
10,000
0
2,000
4,000
6,000
8,000
9,306
107
1,229
251
7,719
2010
Revenue
Change
in sales
volumes
Other
factors
2011
Revenue
Change
in product
prices
Flat products
Coated products
Cold-formed products
Long products
Metalware
Others
60%
12%
3%
5%
11%
9%