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Sakari Tamminen, President & CEO
Rautaruukki Corporation
15 February 2013
Financial review 2012
Agenda
• 2012 in brief, key figures
• Financial performance
• Business area performance
• Business environment
• Key actions in 2012,
near-term outlook and guidance
15 February 2013 www.ruukki.com | Sakari Tamminen 2
www.ruukki.com | Sakari Tamminen 15 February 2013
2012 in brief
• Net sales and operating profit in the construction business were
practically at the same level y-o-y
• The steel business posted a loss due mainly to a rise in raw
material costs and lower selling prices
• Good progress made with efficiency projects and around €20
million achieved of total savings target of €100 million
• Clear improvement in cash flow and €173 million cash conversion
from working capital
• Gearing was 71% at year-end
• Fortaco arrangement completed at end of year, Ruukki to focus
more strongly on construction and special steels
• Board of Directors’ dividend proposal €0.20 per share
3
Key figures Q4/2012
15 February 2013 www.ruukki.com | Sakari Tamminen 4
Q4/2012 Q4/2011
Order intake €m 651 651
Net sales *) €m 676 718
Operating profit *) €m -39 -40
as % of net sales *) -5.8% -5.6%
Net cash from
operating activities €m 79 163
*) Comparable
• Capacity utilisation rate in steel production averaged around 80%
due to weak market conditions
Key figures 2012:
15 February 2013 www.ruukki.com | Sakari Tamminen 5
2012 2011
Order intake €m 2 767 2 675
Net sales *) €m 2 789 2 797
Operating profit *) €m -65 56
as % of net sales *) % -2% 2%
Result before income tax €m -137 -12
Earnings per share, diluted, € -0.83 -0.07
Gearing % 71.4 60.4
Net cash from operating activities €m 172 114
• Cash conversion from working capital was €173 million in 2012
• Board of Directors’ dividend proposal €0.20 per share (0.50)
*) Comparable
Financial performance
426 44
9
41
4 451
50
7
59
6
576
647 67
4
67
2
678
651 68
6 75
5
67
56
51
0
100
200
300
400
500
600
700
800
Q1
/09
Q2
/09
Q3
/09
Q4
/09
Q1
/10
Q2
/10
Q3
/10
Q4
/10
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
0
300
600
900
1200
1500
1800
2100
2400
2700
3000
2009
2010
2011
2012
Order intake up 3% in 2012
15 February 2013 www.ruukki.com | Sakari Tamminen 7
Growth in construction and steel businesses
Engineering business Steel business Construction business
2 675
Order intake 2009-2012 (€m)
2 767
2 326
1 740
+3%
Quarterly order intake (€m)
+0%
Net sales for whole year approximately at same level as previous year
15 February 2013 www.ruukki.com | Sakari Tamminen 8
Quarterly net sales (€m) *)
*) Comparable
Construction business Engineering business
Steel business
Change in net sales by business
area (€m) 2011 vs. 2012 *)
500
648615
641675
730
674718
699740
674 676
0
100
200
300
400
500
600
700
800
Q1
/10
Q2
/10
Q3
/10
Q4
/10
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
-6%
2 797 -17 + 8 + 4 - 3 2 789
1 700
1 800
1 900
2 000
2 100
2 200
2 300
2 400
2 500
2 600
2 700
2 800
2 900
20
11
Co
nst
ruct
ion
bu
sin
ess
En
gin
eeri
ng
bu
sin
ess
Stee
l bu
sin
ess
Oth
ers
20
12
Strongest net sales growth in Russia and in markets outside Europe
15 February 2013 www.ruukki.com | Sakari Tamminen 9
Net sales by market area
2012 (2011) *) 100% = €2789m (€2797m)
Net sales down in Finland and the other Nordic countries
• Growth in Russia +18%, markets
outside Europe +14%, Central
Eastern Europe +4%
• Net sales down in Finland -8%
and other Nordic countries -2%
• Emerging markets accounted for
increased share 29% (27) of
comparable consolidated net
sales
Other Nordic
countries
32% (33%)
Finland
25% (27%)
Central Eastern
Europe
14% (13%)
Rest of Europe
14% (14%)
Other
countries
6% (5%)
Russia and
Ukraine
9% (8%)
*) Comparable
Operating profit was -€65m
15 February 2013 www.ruukki.com | Sakari Tamminen 10
*) Comparable
Construction business Engineering business
Steel business
Engineering and construction businesses improved y-o-y, steel
business posted a loss
Quarterly operating profit (€m) *)
Change in operating profit by
business (€m) 2011 vs. 2012 *)
-43
45
41
-5
25
71
1
-40
-15
8
-18
-39
-70
-50
-30
-10
10
30
50
70
90
Q1
/10
Q2
/10
Q3
/10
Q4
/10
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
56
-122
+4 +4
-6 -65
-125
-105
-85
-65
-45
-25
-5
15
35
55
75
95
115
20
11
Co
nst
ruct
ion
bu
sin
ess
En
gin
eeri
ng
bu
sin
ess
Stee
l bu
sin
ess
Oth
ers
20
12
532
696
474
619
744
797
15
19
25 2627
28
0
10
20
30
40
0
200
400
600
800
20
07
2008
20
09
20
10
20
11
20
12
Cost of raw materials calculated by average cost of raw materials in 2011
€m %
€m %
Fixed costs continued to account for decreasing share of net sales
15 February 2013 www.ruukki.com | Sakari Tamminen 11
Share of raw materials costs rose
Development of steel raw materials
costs
Sales, administrative and general costs (€m)
As % of comparable net sales
Cost of raw materials used in steel production (€m)
As % of comparable net sales
Development of consolidated SGA
costs
768
308
252251
255242
8
13
109,1
8,7
0
5
10
15
20
0
100
200
300
400
2008
2009
2010
2011
2012
14
32
18
0
5
10
15
20
25
30
35
Q1
/08
Q2
/08
Q3
/08
Q4
/08
Q1
/09
Q2
/09
Q3
/09
Q4
/09
Q1
/10
Q2
/10
Q3
/10
Q4
/10
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
382
182
-64
114
172169
30
-226
-57
78
-300
-200
-100
0
100
200
300
400
20
08
20
09
20
10
2011
20
12
Cumulative cash flow €172 million
15 February 2013 www.ruukki.com | Sakari Tamminen 12
Successful working capital management
Net cash from operating activities
and net cash before financing
activities (€m)
Net working capital as % of
comparable 12-month rolling net sales
Net cash from operating activities
Net cash before financing activities Net working capital as % of comparable 12-months rolling net
sales
€173 million of working capital
released in 2012 (€9 million tied
up in 2011)
1 948
1 507
1 3871 273
1 069
155
336
621
770 765
8
22
45
60
71
0
20
40
60
80
100
120
0
250
500
750
1000
1250
1500
1750
2000
2250
2500
2008 2009 2010 2011 2012
Gearing ratio 71%
15 February 2013 www.ruukki.com | Sakari Tamminen 13
Net interest-bearing financial liabilities at practically same level
as during the previous year
Net interest-bearing financial liabilities Equity Gearing ratio (%)
%
229
161
173179
97
221
153162
169
92
145 145 148 144 146
0
50
100
150
200
250
2008 2009 2010 2011 2012
Capex clearly below depreciation
15 February 2013 www.ruukki.com | Sakari Tamminen 14
Capex in 2013 estimated to be around €90 million
Gross capex *) Net capex *) Depreciation
€m
*) In tangible and intangible assets
Business area performance
541
629
721756
172 170
0
100
200
300
400
500
600
700
800
20
09
20
10
20
11
20
12
Q4
/11
Q4
/12
Construction: order intake up for whole year
15 February 2013 www.ruukki.com | Sakari Tamminen 16
Order intake, (€m)
Growth in residential construction and Russia
-1%
+5%
2012 vs. 2011
+ Residential roofing products +3%,
growth especially in Sweden and
Russia
- Commercial and industrial construction
-4%, growth in Russia, Sweden and
Norway
- Infrastructure construction -18%
Q4/2012 vs. Q4/2011
+ Residential roofing products +10%,
growth in Finland, Sweden and Russia
+ Commercial and industrial construction
+7% growth in Russia, Sweden and
Estonia
- Infrastructure construction -18%
Construction
Construction: net sales
15 February 2013 www.ruukki.com | Sakari Tamminen 17
Net sales by product group, (€m) *)
Growth in residential roofing products and Russia, net sales
down in commercial & industrial and infrastructure construction
*) Comparable
Construction
1 067
589628
757 740
0
200
400
600
800
1 000
1 200
20
08
20
09
20
10
20
11
2012
-2%
203180
0
20
40
60
80
100
120
140
160
180
200
220
Q4
/11
Q4
/12
-11%
Infrastructure construction Residential
construction
Commercial and industrial
construction
Construction: net sales by market area
15 February 2013 www.ruukki.com | Sakari Tamminen 18
Net sales by market area
2012 (2011) *)
2012 vs. 2011
+ Russia and Ukraine +20%
+ Growth in residential roofing products
in almost all markets
- Finland -11%
- Other Nordic countries -9%
Net sales down in most markets, however strong growth in
Russia
Other Nordic
countries
23% (25%)
Finland
25% (27%)
Central
Eastern
Europe
28% (28%)
Rest of
Europe
2% (2%) Russia and
Ukraine
22% (18%)
*) Comparable
Q4/2012 vs. Q4/2011
- Overall net sales down in almost all
market areas
+ Growth in residential roofing products
in Sweden, Finland and Russia
+ In commercial and industrial
construction, growth in project
deliveries in Sweden
Construction
EBITDA and EBIT (€m) *)
Comparable operating profit in construction improved y-o-y
15 February 2013 www.ruukki.com | Sakari Tamminen 19
Comparable operating profit €1m
(-3) for 2012
- Profitability of project and component
business still not at a satisfactory level
- Relative fall in share of net sales of
infrastructure construction
+ Relative growth in share of residential
roofing business
+ Higher capacity utilisation rate in
Russian businesses
+ Improved profitability of project
business
• Efficiency project: €8m of the €20m earnings improvement target was achieved during
2012 and the remainder is expected to be seen in full by the end of Q3/2013 onwards.
*) Comparable EBIT, reported EBITDA EBITDA*) EBIT*)
Construction
-13
4
11
-6
-10
4
8
-1
-6
10
17
2
-4
11
14
-1
-15
-10
-5
0
5
10
15
20
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
Reported EBITDA in Q4/12 includes non-recurring items of €7 million not having an impact on cash flow
Engineering business: net sales up 3%
15 February 2013 www.ruukki.com | Sakari Tamminen 20
Single project increased deliveries to equipment manufacturers
in the offshore industry
Net sales, (€m) *)
Manufacture of
construction and
mining industry
equipment
15% (15%)
Manufacture
of materials
handling
equipment
30% (36%)
Energy and
offshore
35% (21%)
Other
13% (18%)
Shipbuilding
6% (11%)
Net sales by customer segment
2012 (2011) *)
Engineering
312
193
257265
7360
0
30
60
90
120
150
180
210
240
270
300
330
20
09
20
10
20
11
20
12
Q4
/11
Q4
/12
+3%
-18%
*) Comparable
Comparable EBIT (€m)
Engineering business: comparable operating profit improved year on year
15 February 2013 www.ruukki.com | Sakari Tamminen 21
+ Higher selling prices and delivery
volumes
+ Improved cost efficiency
Engineering
Comparable operating profit -€3m
(-7) for 2012
-2-2
1
-4
-1
10
-3
-5
-3
-1
1
3
5
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
Fortaco arrangement completed at year-end
• The units transferred to Fortaco accounted for €137 million of
Ruukki Engineering’s net sales in 2012
• Ruukki received a 19.0% holding in Fortaco, together with
equity and debt capital financing instruments from Fortaco for
the units transferred
• Ruukki Engineering’s units not forming part of the new
company are reported as part of Ruukki Metals division from
the start of 2013
• The units excluded from the arrangement are estimated to
have net sales of €75 million in 2013
15 February 2013 www.ruukki.com | Sakari Tamminen 22
Ruukki’s business structure more focused than earlier
Engineering
959
1 459
16911782
416 437
0
200
400
600
800
1000
1200
1400
1600
1800
20
09
20
10
20
11
20
12
Q4
/11
Q4
/12
Steel business: order intake up 5%
15 February 2013 www.ruukki.com | Sakari Tamminen 23
Order intake (€m)
Strongest growth in Russia and North America
+ Strongest growth in Russia and North
America
- Orders for special steel products down
slightly year on year, strong growth,
however, in Russia and North America
+5%
2012 vs. 2011
Q4/2012 vs. Q4/2011
+ Strongest growth in Russia and North
America
- Down in Finland, Sweden and Poland
- Orders for special steel products down
slightly year on year, however, strong
growth in Russia
+5%
Steel
0
50
100
150
200
250
300
350
400
450
500
Q4
/11
Q4
/12
434 442 -2%
Steel business: net sales for whole year approximately at same level as a year earlier
15 February 2013 www.ruukki.com | Sakari Tamminen 24
Net sales by product group, (€m) *)
Net sales for the fourth quarter were down 2% year on year
*) Comparable
Steel
Special steel products Customised steel products Price-sensitive steel
products
Stainless steel and aluminium
1997
1050
1581
1783 1787
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
20
08
20
09
20
10
20
11
2012
+0%
Average prices fell, deliveries rose
15 February 2013 www.ruukki.com | Sakari Tamminen 25
Tonnes delivered and average selling price (€/t)
During Q4, 70,000 tonnes of low-margin products were delivered
outside the main market area
487
415
364
455507
448
389
466
983
11271086
970 9421049 1045
930
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
0
100
200
300
400
500
600
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
1000 tonnes €/t
Special steel products accounted for 31% of steel business, unchanged year on year
% of Ruukki Metals’ net sales
15 February 2013 www.ruukki.com | Sakari Tamminen 26
Share of special steel products of net sales in the steel business
Share of special steel products of net sales in the steel business, rolling 12-month average
22%
26%28%
30%32%
34%32%
28%
30%
34%
32%
28%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Q1
/10
Q2
/10
Q3
/10
Q4
/10
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
31% 31%
Steel
Net sales by market area
15 February 2013 www.ruukki.com | Sakari Tamminen 27
Net sales by market area
2012 (2011) *)
Net sales development
+ Russia +16%
+ Other countries +13%
+ Central Eastern Europe +9%
- Finland - 7%
+ Russia +16%
+ Central Eastern Europe +19%
- Finland -12%
- Other Nordic countries -7%
Growth in deliveries to Russia, Central Eastern Europe and to
certain markets outside Europe
*) Comparable
Other Nordic
countries
34% (34%)
Finland
25% (27%)
Russia and
Ukraine
6% (5%)
Other
countries
8% (7%)
Rest of Europe
19% (19%)
Central
Eastern
Europe
9% (8%)
2012 vs. 2011
Q4/2012 vs. Q4/2011
Steel
42
75
-9
-28
0
10
-18
-34
69
99
-6 -2
2835
9
-10
-50
-30
-10
10
30
50
70
90
110
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
EBITDA and EBIT (€m) *)
Steel business posted a loss
15 February .2013 www.ruukki.com | Sakari Tamminen 28
Comparable operating profit for the fourth quarter was also down
year on year
- Operating profit was down both year
on year and quarter on quarter
- Lower operating profit year on year
was mainly due to higher costs of raw
materials used in steel production and
lower average selling prices
+ Reported EBITDA for 2012 was
positive
*) Comparable EBIT, reported EBITDA EBIT*) EBITDA*)
Steel
Comparable operating profit -€42m
(80) for 2012
Reported EBITDA in Q4/12 includes non-recurring items of €8 million not having an impact on cash flow
Steel business: operating profit down €16 million quarter on quarter
15.02.2013 www.ruukki.com | Sakari Tamminen 29
Operating profit (€m) Q4/12 vs. Q3/12 *)
• Average end-product prices were
down 11%, lower prices and
changes in the product mix had a
total impact of -€51 million
• Delivery volumes were up by 77
thousand tonnes or 20% quarter
on quarter
*) Comparable
Steel
-18
+7
-34
-51
+19
+9
-80
-70
-60
-50
-40
-30
-20
-10
0
Q3/
12
End
-pro
du
ctp
rice
s an
d m
ix
Raw
mat
eria
l an
do
ther
co
sts
Del
iver
y vo
lum
es
Uti
lisat
ion
rat
e
Q4/
12
Capacity utilisation rate in steel production around 80% during fourth quarter
15.02.2013 www.ruukki.com | Sakari Tamminen 30
Quarterly steel production
1000 tonnes • Steel production during Q4/2012
was up 4% year on year at 566
thousand tonnes
• The utilisation rate in steel
production averaged around 80%
during Q4
• The utilisation rate for the whole
year averaged around 81%
611
418
609 591
645 636
392
542
601 594
540566
0
100
200
300
400
500
600
700
800
Q1
/10
Q2
/10
Q3
/10
Q4
/10
Q1
/11
Q2
/11
Q3
/11
Q4
/11
Q1
/12
Q2
/12
Q3
/12
Q4
/12
Steel
Business environment
Poland: 1.6%
Russia: 2.8%
Sweden: 5.2%
Finland: 1.5%
Estimated growth in commercial and industrial construction in 2013
*) The figures for Romania, Ukraine, Bulgaria and Russia also include renovation construction
Source: Global Insight 12/2012
Growth > 2.0% -2.0 < Growth < 2.0% Growth < -2.0% Growth > 5.0%
Western Europe:
0.2%
In a challenging market environment,
Ruukki is supported by:
• Strong market shares
• Strong brand and product portfolio
• Energy-efficient solutions
• Good location in Russia – proximity of
Moscow
15.02.2013 www.ruukki.com | Sakari Tamminen 32
Poland: -1.2%
Russia: 2.2%
Sweden: 2.5%
Finland: -2.8%
Estimated growth in residential construction 2013
Ukraine: -0.7%
Growth > 2.0% -2.0 < Growth < 2.0% Growth < -2.0% Growth > 5.0%
*) Includes new and renovation construction
Source: Global Insight 12/2012
Western Europe:
0.1%
In a challenging market environment,
Ruukki is supported by:
• Strong market shares
• Strong brand and product portfolio
• Expansion of Ruukki Express network
• Less volatile seasonality in renovation
construction than in new construction
15.02.2013 www.ruukki.com | Sakari Tamminen 33
80
90
100
110
120
130
140
150
2009 2011 2013 2015
Ind
ex
20
09
=1
00
Residential construction (new and renovation construction)
Stronger growth expected in 2014
*) The figures for Russia also include renovation construction
Source: Global Insight 12/2012
Finland Sweden Poland Russia Ukraine Western Europe
80
90
100
110
120
130
140
150
2009 2011 2013 2015
Ind
ex
20
09
=1
00
Commercial and industrial construction (new construction *)
15.02.2013 www.ruukki.com | Sakari Tamminen 34
0
25
50
75
100
125
150
175
200
2008 2009 2010 2011 2012e 2013f 2014f
www.ruukki.com | Sakari Tamminen 35
Source: Eurofer Market Outlook, 2/2013
Million tonnes
Apparent steel use down in Europe last year
-8%
-35%
+ 22% -10% 3% -1%
Apparent steel use (ASU) in EU-27 2008-2014f
6%
15 February 2013
Demand forecast to remain around the same level in 2013
1,0
1,5
2,0
2,5
3,0
3,5
0
250
500
750
1 000
1 250
1 500
1 750
2 000
2 250
2 500
1/0
82
/08
3/0
84
/08
5/0
86
/08
7/0
88
/08
9/0
81
0/08
11
/081
2/08
1/0
92
/09
3/0
94
/09
5/0
96
/09
7/0
98
/09
9/0
91
0/09
11
/091
2/09
1/1
02
/10
3/1
04
/10
5/1
06
/10
7/1
08
/10
9/1
01
0/10
11
/101
2/10
1/1
12
/11
3/1
14
/11
5/1
16
/11
7/1
18
/11
9/1
11
0/11
11
/111
2/11
1/1
22
/12
3/1
24
/12
5/1
26
/12
7/1
28
/12
9/1
21
0/12
11
/121
2/12
Steel wholesalers’ inventories in Europe slightly below normal level
15 February 2013 www.ruukki.com | Sakari Tamminen 36
Monthly inventories/deliveries (6-month rolling average, situation 12/2012)
Million tonnes Monthly inventories/deliveries
(6-month rolling average)
Inventories/deliveries Sales (1000 tonnes) Inventories (1000 tonnes)
Source: EASSC (NB Viewpoint of one source that does not reflect inventory levels of all steel wholesalers in Europe )
• Prices of iron ore purchases during the first quarter will remain at the level of the fourth
quarter of 2012, the winter inventory risk related to coking coal will be smaller compared
to previous years in 2013
0
50
100
150
200
250
300
350
400
01
/09
03
/09
05
/09
07
/09
09
/09
11
/09
01
/10
03
/10
05
/10
07
/10
09
/10
11
/10
01
/11
03
/11
05
/11
07
/11
09
/11
11
/11
01
/12
03
/12
05
/12
07
/12
09
/12
11
/12
01
/13
0
50
100
150
200
250
300
01
/09
03
/09
05
/09
07
/09
09
/09
11
/09
01
/10
03
/10
05
/10
07
/10
09
/10
11
/10
01
/11
03
/11
05
/11
07
/11
09
/11
11
/11
01
/12
03
/12
05
/12
07
/12
09
/12
11
/12
01
/13
Main raw materials in steel production
15 February 2013 www.ruukki.com | Sakari Tamminen 37
Average market price of both iron ore and coking coal rose
clearly during the fourth quarter of 2012
Monthly average spot price of
iron ore *) USD/t
Monthly average spot price of
coking coal **) USD/t
Source: CRU *) C&F China (63.5% Fe) **) FOB Australia
158
163
38
Key actions in 2012,
near term outlook and guidance
.
.
Construction: key actions in 2012
• Restructuring the loss-making project business
• Focus on chosen segments
(incl. energy-efficient concept buildings)
• Centralisation of capacity (Fredrikstad, Norway)
• Withdrawal from the windpower business
• Profitability improvement programme in loss-making units in the
component business (Romania, Ukraine)
• Reorganisation of production and supply chain in Russia, as
well as sales efficiency programme
• Savings programme of €20m had impact of €8m on result in
2012, headcount down by 273 persons
39 15 February 2013 www.ruukki.com | Sakari Tamminen
Profitability
improvement
Growth
• Expanding distribution in the roofing business, especially in the
Nordic countries and Poland (Ruukki Express)
• Strong profitable growth of roofing business in Russia
• Launch of new construction products that save energy and
utilise renewables
.
.
Metals: key actions in 2012
• Successful implementation of the €70m efficiency programme
• Improved production cost efficiency with the help of
many process improvements
• Reorganisation of administration and sales organisation, more
effective production organisation
• Savings programmes had impact of €10m on result in 2012,
headcount down by 182 persons
• Efficiency actions to improve the use of materials in production
• Recovery of coal tar as a reducing agent to replace more
expensive special heavy fuel oil
• Running-in of more cost-efficient coal mix: Russia, Poland
40 15 February 2013 www.ruukki.com | Sakari Tamminen
Profitability
improvement
• Growth in special steels
• Establishment of new sales areas and offices (Americas and
SEA, India, Australia, Canada and Chile)
• New Certified Partners (5 in Europe, 2 in South America)
Growth
Focus areas in 2013
• Completion of efficiency projects
• Full run rate of the targeted around €100 million savings will
be achieved by the third quarter onwards
• Metals €70 million
• Construction: €20 million
• Corporate: €10 million
• Strong focus on cash flow to bring gearing down
• Growth from residential roofing construction and Russia
• Growth by developing the special steels business
15.02.2013 www.ruukki.com | Sakari Tamminen 41
.
Near-term outlook
15 February 2013 www.ruukki.com | Sakari Tamminen 42
Uncertain economic outlook, no significant pick-up expected
.
• Construction activity at 2012 level or slightly down
• Commercial and industrial construction to grow slightly in
Russia
• Moderate growth in residential construction
• Service centre sales at a good level
• Demand from mill customers remains uncertain
• Restocking by steel wholesalers in Q1/13
• Average prices to show a moderate rise in Q1/13
Construction business outlook
Steel business outlook
Guidance
15 February 2013 www.ruukki.com | Sakari Tamminen 43
.
• Comparable net sales in 2013 are estimated to be at
the same level as in 2012.
• Comparable operating profit is estimated to improve
compared to 2012 and to be positive.
Appendices
Key figures
15 February 2013 www.ruukki.com | Sakari Tamminen 46
2012 2011
Net sales *) €m 2 789 2 797
Operating profit *) €m -65 56
as % of net sales *) -2.3 2.0
Result before taxes *) €m -103 22
Result for the period €m -116 -10
Earnings per share, diluted, € -0.83 -0.07
Return on capital employed (rolling 12 months) % -4.8 1.3
Gearing ratio % 71.4 60.4
Gross capex **) €m 97 179
Net cash from operating activities €m 172 114
Net cash before financing activities €m 78 -57
Personnel (average) 11 214 11 821
*) Comparable **) In tangible and intangible assets
Quarterly comparable net sales, operating profit and deliveries
15 February 2013 www.ruukki.com | Sakari Tamminen 47
€m
Q1/
11
Q2/
11
Q3/
11
Q4/
11
Q1/
12
Q2/
12
Q3/
12
Q3/
12
Comparable net sales
Ruukki Construction 135 201 219 203 153 199 208 180
Ruukki Engineering 62 62 59 73 69 72 63 60
Ruukki Metals 478 467 396 442 477 470 406 434
Other 0 0 0 0 0 -2 -3 2
Total 675 730 674 718 699 740 674 676
Comparable operating profit
Ruukki Construction -13 4 11 -6 -10 4 8 -1
Ruukki Engineering -2 -2 1 -4 -1 0 0 -3
Ruukki Metals 42 75 -9 -28 0 10 -18 -34
Other -3 -6 -3 -3 -4 -7 -7 -2
Total 25 71 1 -40 -15 7 -18 -39
Deliveries,
Ruukki Metals 487 415 364 455 507 448 389 466