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TMK conferred with corporate management rating

The company\'s final rating is composed of the following elements (on a 10-point scale):

“Ownership structure and external influence” (on the international scale – 5, on the Russian national scale -5.4);

“Shareholder rights and relations with financially interested parties\" (on the international scale - 6, on the Russian national scale – 6.3);

“Financial transparency, disclosure of information and auditing” (on the international scale – 5+, on the Russian national scale - 5,5);

“Structure and efficiency of Board of Directors\" (on the international scale – 6, on the Russian national scale - 6,3).

Among the strengths of the current system of corporate management within TMK, Standard & Poor’s cites the equilibrium of the Board of Directors, including three independent directors, the high level of professionalism of its members, the presence of established procedures and the discretionary powers of the Board of Directors, its contribution to the promotion of financial transparency and improvement in the independent control of auditing processes. The company charter contains precisely formulated procedures guaranteeing the effective protection of shareholder rights.

Analysts at Standard & Poor’s noted the considerable synergetic effect in the activity of TMK, which has come to be as a result of effective management. The company presented IAS-compliant consolidated financial statements and underwent an international audit. TMK actively endeavours to fulfil its obligations to society and takes ecological and social issues very seriously.

On assessing the results of the corporate management rating, the Chairman of the Board of Directors of OJSC TMK Dmitry Pumpyanskii remarked that they reflected the significant steps taken by the company to raise its financial transparency and operating efficiency. TMK’s system of corporate management is being developed according to international practice. This is confirmed by the authoritative rating agency and is convincing evidence of TMK’s consistency in the implementation of its strategy to occupy the leading positions in the world pipe business.

The corporate management rating (CMR) reflects Standard & Poor’s opinion on the current practice and policy of the company\'s corporate management and the degree to which they are intended to observe the interests of financially interested parties, primarily shareholders. The practice and policy of corporate management are gauged with the help of Standard & Poor\'s rating methodology, which aggregates the regulations of international codes, the best corporate management practice and other accepted principles.