3/2012 | PUBLIC - Aalto

3/2012 www.ruukki.com | PUBLIC1


Ruukki’s general presentation


Content

1. Ruukki in brief2. Business areas3. Corporate responsibility4. Key figures


Ruukki in brief

• Ruukki provides its customers with energy-efficient steel solutions for better living, working and moving.

• Ruukki operates in some 30 countries and employs around 11,800 people.


Ruukki’s business areas

ConstructionNet sales €757m*

EngineeringNet sales €257m

MetalsNet sales €1 783m

*) 2011


Strong in the nearby markets, growth from the emerging markets

€2.8 bn net sales in 2011 • ca. 11 800 employees • ca. 30 countries

3/2012 www.ruukki.com | PUBLIC8 1 February 2012 | www.ruukki.com | Sakari Tamminen8

Strategic targets for the current strategic period

Emerging markets to account for 50% of consolidated net sales

Construction and engineering businesses

to account for 60% of consolidated net sales

Special steel productsto account for 60% of the

steel business

Achieving strategic targets progressed

Aim is to achieve #1, #2 or otherwise strong market position in chosen segments

27%

50%

31%

(2010: 23%)

60%

36%

(2010: 34%) (2010: 27 %)

60%


Net sales and personnel by region 2011- emerging markets account for 27% of net sales

Finland6,369(6,150)

Other Nordic countries622 (659)

CEE2,130(2,020)

Rest of Europe70 (69)

Other countries346 (326)

Personnel 2011: 11,382 (2010: 11,286)

*) Personnel at end of period

Russia and Ukraine1,845 (2,062)

Other Nordic countries33% (31%)

Finland27% (27%)

Central Eastern Europe13% (12%)

Rest of Europe14% (15%)

Other countries5% (7%)

Russia and Ukraine8% (8%)

Net sales by market area 2011 (2010) *)

100% = 2,797 m€ (2,403 m€)

*) Comparable


Our Values• We take responsibility

• We succeed together

• We challenge tomorrow


Research and development – focus on energy efficiency

• Focus areas of our R&D

– Construction efficiency, especially energy efficient solutions

– Cabins, booms and equipment for the energy industry

– Special steel products i.e. high-strength, wear-resistant and coated steels for the engineering and automotive industry and construction

• In 2011 we invested €29m in R&D

Ruukki’s fully-integratedsolar panel façade converts

sun rays into energy.


Ruukki in the construction business


Construction business is international, yet local

• Emerging markets account for around 45% of net sales in the business area

• Strong market position in roofing products in Central Eastern Europe and the Nordic countries

• Personnel around 3,500• Net sales in 2011 €757m (27% of

consolidated net sales)• Main market areas: Nordic

countries, Baltic states, Central Eastern Europe, Russia and Ukraine



Central Eastern Europe28% (26%)

Russia and Ukraine18% (20%)


Finland27% (26%)

*) Comparable


Examples of Ruukki’s constructionsolutions• Commercial & industrial

– Foundations, frames and envelopes

• Residential– Roofing, rainwater and safety

systems• Infrastructure

– Steel structures for bridges and foundations

– Piling for quay and pier structures


Breakthrough in energy-efficient products in 2011

In 2011, Ruukki launched several energy-efficient products for construction:

• Energy panels

• Energy piles

• Solar panel façade


Ruukki in theengineering business


In the engineering business we are where our customers are

• Target is to strengthen own material and product development expertise e.g. in cabins

• Personnel around 1,900• Net sales in 2011: €257m (9% of

consolidated net sales)• Typical customers include leading

globally-operating companies in the lifting, handling and transportation equipment industry, equipment manufacturers in the energy industry.

Energy equipment industry14% (18%)

Paper and wood5% (7%)

Lifting, handling and transportation equipment industry 64% (59%)

Shipbuilding11% (14%)

Offshore6% (2%)

Net sales by customer segment 2011 (2010) *)

*) Comparable


Fully-assembled systems and components for the engineering industry

• Ruukki’s delivery– Cabins, booms, telescopic booms, frames, oil sumps

• End-products

• An ability to efficiently relocate, replicate and increase production in an international manufacturing network


Building competitive advantage in cabin design

Ruukki uses digital 3D visualisation in cabin design. This enables a

systematic analysis of ergonomics before making of expensive

prototypes.

• Major design projects typically relate to introduction of new cabin families

Cabin family lifetime usually 4-5 yearsClose customer cooperation from design to supply chain planningSuppliers rarely changed during the cabin family lifetime

• Example projectOver 5,000 design hoursCabin and interior designElectric engineeringPrototype and pre-series building

• In 2010, some 27,000 design hours will be used in projects


Global cabin and component manufacturing network

• Finland, Kurikka• Centre of excellence:

product development• Deliveries to Nordic

countries

• Slovakia, Holic• Deliveries to

Central and Eastern Europe

• China, Shanghai• Deliveries to Asia

Ruukki Engineering – cabin manufactureRuukki Engineering – other unit

Example of cabin production network


Ruukki in the steel business


Strong in nearby areas in the steel business

• Steel production in 2011 approximately 2.2 million tonnes

• Net sales in 2011: €1 783m (64% of consolidated net sales)

• Around 5,400 employees • Forerunner in special steel

products globally• Strong market position in the

Nordic countries• Extensive services in steel service

centres in Finland, Sweden, Norway, Russia and Poland

Finland27% (27%)


CEE, Russia and Ukraine13% (11%)

Rest of Europe19% (20%)



*) Comparable


• High-strength, wear-resistant and coated steels

– Design new and improved end-products• High-strength steels

– Reach higher, lower weight• Wear-resistant and high-strength

steels– Increase productivity and payloads,

extend service life • Parts processing, prefabrication

– Optimise processing and lead times

Examples of end-uses of Ruukki’s special steel products


Corporate responsibility


Corporate responsibility improvescompetitiveness

• Achievement of financial targets through best business practices

• Ensuring a safe, continuously improving work environment

• Fair, just treatment of the personnel

• Minimisation of a product’s environmental impacts during its lifecycle

• Promotion of energy efficiency

Financial responsibilityEnvironmentalresponsibility

Safeguarding long-term business conditions

Social responsibility


Ruukki’s commitment and corporate responsibility is recognised

Ruukki is the leading company in steel sector in Dow Jones Sustainability Index World and received Gold Class and Sector Leader 2012 distinctions by SAM, Sustainability Asset Management .

Ruukki was awarded Prime status and was the best steel company in oekom's detailed rating.

Ruukki joins the NASDAQ OMX new sustainability index

Ruukki has been selected for inclusion in the EthibelEXCELLENCE Investment Register

Ruukki is listed in Vigeo’s Aspi Eurozone® index

World Steel Association has awarded Ruukki with Climate Action membership certificate for 2010-2011

Ruukki has taken part in the Carbon Disclosure Project (CDP) ranking since 2007


Energy efficiency • Energy efficiency is managed as part of ISO 14001

environmental management systems• Target is energy savings

of 9%, compared to 2005 levels, by 2016

• Energy efficiency is taken into account also in– Sourcing and logistics, product and process plannings

and real estate and property repair plans• We reuse a significant share of secondary energy

flows in the steel-making process


Top environmental performance is important to Ruukki

• Ruukki’s energy efficiency in production ranks among the best in the steel industry

• Coking coal consumption in production is at the minimal possible using current technology

– compared to the European average, Ruukki’s steel production generates around 300,000 tonnes less carbon dioxide emissions a year

0

20

40

60

80

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120

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160

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EU a

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Source: Stahl-Zentrum. *The indexed carbon efficiency in iron-making based on coal consumed 2009. ** 2007 data.

Blast furnace carbon dioxide efficiency *


• In 2011 – the use of mineral products reduced

global carbon dioxide emissions by a total of 130,000 tonnes

– use of recycled steel reduced CO2emissions in steel production at Ruukki by 480,000 tonnes

• Steel is fully recyclable– recycled steel accounts for 20-30%

of raw material in steel production at Ruukki

We minimise CO2 emissions


Key figures


Key figures€m 10-12/11 10-12/10 2011 2010

Net sales *) 718 641 2 797 2 403

Operating profit *) -40 -5 56 38

as % of net sales *) -5.6 -0.7 2.0 1.6

Profit before income tax *) -50 -12 22 8

Result for the period -41 -30 -10 -79

Earnings per share, diluted, € -0.30 -0.21 -0.07 -0.57

Return on capital employed, % 1.3 -0.3

Gearing ratio, % 60.4 44.7

Gross capital expenditure **) 179 173

Net cash from operating activities 163 23 114 -64

Net cash before financing activities 126 -19 -57 -226

Personnel (average) 11 493 11 384 11 821 11 693

*) Comparable **) In tangible and intangible assets


Ownership structure

Source: Euroclear Finland*) Solidium Oy is fully owned by the Finnish State

As at 31 December 2011

Solidium Oy *)

39.7%Non-Finnish and nominee registered owners16.9%

Other Finnish owners 23.1%

Finnish households 20.4%


Order intake

Engineering business Steel businessConstruction business

Order intake 2010-2011 (€m) Quarterly order intake (€m)

545

426449

414451

651678672674647576

1 133

596

958

772

507

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800

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2011

+15%

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2 675

2 326

1 740


Change in operating profit by business area (€m) 2010 v. 2011 *)

Net sales and operating profit

*) Comparable

Change in net sales by business area (€m) 2010 v. 2011 *)

2 000

2 200

2 400

2 600

2 800

3 000

2010

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Residential construction Commercial and industrial constructionInfrastructure construction

Net sales by product group (€m) and operating profit %, rolling 12 mth *)

Construction business:Relatively strongest growth in residential construction in 2011

Operating profit %

*) Comparable

1042 1067975

835

691

589 566 584 603 628 653 691 726 757

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

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200

400

600

800

1 000

1 200

2007

2008

Q1/

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188

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193 213

225

239 257

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2007

2008

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Net sales by customer segment (€m) and operating profit %, rolling 12 mth *)

Engineering business:Strongest growth in deliveries to materials handling and mining industry equipment manufacturers

Energy equipment industryLifting, handling and transportation equipment industry

Shipbuilding Offshore Paper and wood

Energy equipment industry14% (18%)

Paper and wood5% (7%)

Lifting, handling and transportation equipment industry 64% (59%)

Shipbuilding11% (14%)

Offshore6% (2%)

Net sales by customer segment 2011 (2010) *)

Operating profit %*) Comparable


2 035 1 997

1 735

1 381

1 136 1 0501 149

1 3651 493

1 5811 711 1 745 1 755 1 783

-25%

-20%

-15%

-10%

-5%

0%

5%

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20%

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Net sales by product group (€m) and operating profit %, rolling 12 mth *)

Steel business:Share of special steel products increased to 31% in 2011, capacity utilisation rate in fourth quarter at approx. 80%

Stainless steel and aluminiumSpecial steel products Price-sensitive steel products Customised steel products

Operating profit %

*) Comparable

3/2012 | PUBLIC - Aalto

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