MMK announces

its position regarding the decision of the russian federal antimonopoly service

11 february 2022

Magnitogorsk, Russia

PJSC Magnitogorsk Iron & Steel Works ("MMK", or "the Group") (MOEX: MAGN; LSE: MMK), one of the world's largest steel producers, announces its position regarding the decision of the Russian Federal Antimonopoly Service in the anti-trust violation case.

MMK disagrees with the final findings of the Federal Antimonopoly Service (FAS) commission and its relevant decision finding the Group to be in violation of anti-trust law (Clause 1, Part 1, Article 10 of the Federal Law On Protection of Competition).

MMK believes that, despite the Group's objections to the FAS ruling on the circumstances of the case and the explanations and economic evidence provided in writing by the Group previously, the FAS has come to the wrong conclusion that MMK is in violation of anti-trust law. MMK views the findings made by the FAS as standing in contradiction to the evidence in the case and in disregard of the actual operating context of the hot-rolled flat products market.

MMK notes that throughout the FAS proceedings in the case, the Group has consistently been proactive, continuing to this day to provide compelling and exhaustive evidence that MMK does not dominate the flat-rolled products market. MMK has repeatedly and reasonably stated in its due responses to relevant enquiries from the FAS commission that its pricing complies with the requirements of anti-trust laws. MMK representatives have also repeatedly emphasised that the hot-rolled flat products market is cyclical in nature and prone to price volatility, something confirmed by the market changes over 2021. Shaped by intense competition, rolled steel prices depend on the market environment and on the global market situation.

MMK will study the FAS decision in detail and will continue to defend its rights and interests in line with legislation, asserting its position that its pricing is economically justified along with MMK's commitment to fair competition.

About MMK

MMK is one of the world's largest steel producers and a leading Russian metals company. The Group's operations in Russia include a large steel-producing unit 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 premium products. In 2021, MMK produced 13.6 mln tonnes of crude steel and sold 12.5 mln tonnes of commercial steel products.

ММK is an industry leader in terms of production costs and margins. Group revenue in 2020 totalled USD 11,869 mln, with an EBITDA of USD 4,290 mln. MMK boasts the industry's lowest debt burden. Net debt/EBITDA ratio was -0.09х at the end of 2021. The Group's investment-grade rating is confirmed by the leading global rating agencies Fitch, Moody's and S&P.

MMK's ordinary shares are traded on the Moscow Exchange, while its depositary receipts are traded on the London Stock Exchange. Free float amounts to 20.2%.

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