Luossavaara-Kiirunavaara AB (publ) Corp. ID No. 556001-5835
INTERIM REPORT
SECOND QUARTER 2010
Comments by the President and Ceo
The high demand for LKAB’s iron ore products persisted through the second quarter. Deliveries of iron ore products increased during the second quarter by 70 percent to 6.1 (3.6) Mt. Stocks of iron ore products amounted to 1.5 (3.6) Mt. LKAB has opted to continue to sign annual contracts with its customers, while many large iron ore suppliers have switched to quarterly contracts. The signed contracts state that LKAB’s iron ore prices for 2010 will be at the same level as in 2008. The period’s delivery rate and new, higher prices have meant a positive earnings trend. Operating profit for the second quarter reached MSEK 5,051 (-651).
6.2 (3.9) Mt of iron ore products were produced during the second quarter. After completion of investments in processing plants, logistics systems and harbor facilities during the 2000s, the bottle-neck has shifted to production of crude ore in the mines. The program of capital expenditures towards greater mining capacity, in order to alleviate the current shortage of crude ore, has been set. During the quarter, LKAB has been granted permits to mine ore at Gruvberget in Svappavaara and has commenced work on opening the mine. At the same time, ap-plications are being prepared for the other two planned open-pits mines in the Svappavaara area: Leveäniemi and Mertainen.
The cash flow from operating activities amounted to MSEK 1,188. Of investments during the period amounting to MSEK 920, a greater share is attributable to new main levels in the Kiruna and the Malmberget mines. Capital expenditures towards capacity increases and LKAB’s costs for the urban transformation in the orefields communities will remain at the same levels as in recent years.
On 18 May 2010, two employees of a contracting firm died in a building-site accident during work on construction of the new MUJ 1250 main level in the Malmberget mine. This tragic accident will have a long-lasting effect on both personnel and operations, and it places even greater focus on efforts towards improvements in work environment and occupational safety.
A fire in July at the Torneträsk station resulted in disruptions on the Malmbanan railway. Decreased rail capacity to the harbors may mean delays in iron ore deliveries over the coming months.
The market outlook for the full year 2010 remains positive. Major growth is seen in China, which now accounts for about 45% of global steel production.
Lars-Eric Aaro President and CEO
Cash FLoW MSEK
4 500 3 500 2 500 1 500 500 -500 -1 500 -2 500 40% 30% 20% 10% 0%
retUrn on sharehoLders’ eQUity net saLes and oPeratinG inCome MSEK
9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 5 000 4 000 3 000 2 000 1 000 0 -1 000
Operating income Net sales
APRIL – JUNE
• Net sales increased by 379% and amounted to MSEK 8,235 (1,721). • Operating profit amounted to MSEK 5,051 (-651). • Profit after financial items amounted to MSEK 5,014 (-558). • Profit after tax amounted to MSEK 3,760 (-473). • Cash flow from operating activities amounted to MSEK 1,188 (-1,356). • Deliveries from the Mining Division increased by 70%. • Dividends amounting to MSEK 500 (2,800) have been paid to the owner.JANUARY – JUNE
• Net sales increased by 216% and amounted to MSEK 12,722 (4,029). • Operating profit amounted to MSEK 6,412 (-486). • Profit after financial items amounted to MSEK 6,398 (-207). • Profit after tax amounted to MSEK 4,744 (-222). • Cash flow from operating activities amounted to MSEK 2,175 (-2,480). • Deliveries from the Mining Division increased by 89%. • Dividends amounting to MSEK 500 (2,800) have been paid to the owner.Financial information from LKAB is available in Swedish and English and can be obtained from:
LKAB Communications, Box 952, SE-971 28 Luleå, Sweden. Phone: +46 (0)920-381 00, Fax: +46 (0)920-195 05. Financial information is also available on LKAB’s website: www.lkab.com.
Group Summary
(MSEK) Q 2 2010 Q 2 2009 Q 1-2 2010 Q 1-2 2009 Full year 2009
net sales 8,235 1,721 12,722 4,029 11,558
Operating profit 5,051 -651 6,412 -486 659
Income from financial items -37 93 -14 279 533
profit after financial items 5,014 -558 6,398 -207 1,192
profit after tax 3,760 -473 4,744 -222 719
Operating cash flow *) 1,188 -1,356 2,175 -2,480 -648
Investments in tangible assets *) 920 989 1,774 1,859 3,543
*) See statements of cash flow, page 8, for more information.
the LKab GroUP in sUmmary
events during the period January through June
production of iron ore products within the Mining Division amounted to 12.4 (7.5) Mt. During the period, total deliveries amounted to 12.4 (6.5) Mt of which 10.2 (5.1) Mt was pellets. Both production volume and share of pellets have increased as a consequence of the continued higher demand during the first half of the year. As of 30 June, stocks of iron ore products amounted to 1.5 (3.6) Mt.
LKAB has opted to continue to sign annual contracts with its customers, while many large iron ore suppliers have switched to quarterly contracts. The signed contracts profit that LKAB’s iron ore prices for 2010 will be at the same level as in 2008. The Group’s net sales increased by 216% to MSEK 12,722 (4,029). The increase is attributable to the following factors: price 41%, currency 22% and volume/mix 37%. Excluding forward exchange contracts in US dollars, the currency effect was 22% The Group’s operating profit increased and amounted to MSEK 6,412 (-486), which is mainly a result of increased deliveries, price increases and exchange rate gains in the Mining Division.
Income from financial items reached MSEK -14 (279). Exchange gains/losses amounted to MSEK -25 (96). net interest income/ expense amounted to MSEK -13 (-53). return on market portfolios and interest-bearing instruments amounted to MSEK 49 (203). net pension expense amounted to MSEK -37 (-31). Dividends amounted to MSEK 12 (64).
Lars-Eric Aaro has been appointed president and CEO as of 1 January 2010.
events during the second quarter
production of iron ore products within the Mining Division amounted to 6.2 (3.9) Mt. During the period, total deliveries amount-ed to 6.1 (3.6) Mt of which 5.0 (2.8) Mt was pellets. As of 30 June, stocks of iron ore products amountamount-ed to 1.5 (3.6) Mt. net sales increased by 379% and amounted to MSEK 8,235 (1,721). The improvement during the quarter is explained by higher incomes in the Mining Division, mainly as a result of increased deliveries, price increases and exchange rate gains. The Group’s operating profit amounted to MSEK 5,051 (-651).
Income from financial items reached MSEK -37 (93). Exchange gains/losses amounted to MSEK 17 (-98). net interest income/ expense amounted to MSEK -32 (-28). return on market portfolios and interest-bearing instruments amounted to MSEK -16 (168). net pension expense amounted to MSEK -18 (-13). Dividends amounted to MSEK 12 (64).
The Group’s investments in fixed assets amounted to MSEK 920 (989). Disbursements for ongoing work on the new main levels in Malmberget and Kiruna have accounted for the greater share of these expenditures. Short-term investments of MSEK -668 (37) have had an impact on investing activities (net).
marKet and saLes
the steel and iron ore market
Global steel production has maintained record levels during the period. However, there are marked differences between different regions. In the USA, production rose dramatically during the first half of 2010, but it has not yet reached pre-financial-crisis levels. European production has resumed more or less normal levels. Major growth is seen in China, which now accounts for about 45% of global steel produc-tion. Although global steel production is high, a degree of caution should be exercised with respect to imbalances between the quantities of steel produced and demand from steel consumers. It is probable that, over time, steel con-sumption on the growth markets will increase as economies continue to grow; but in the short term, a period of lower steel consumption cannot be discounted.
During the period, the world’s three dominating iron ore companies have established a new price-setting model whereby prices are set on a quarterly basis. Monthly pric-ing has also been discussed. price negotiations for the third quarter of 2010 are now in progress, but official price fig-ures are as yet scarce. LKAB continues to apply yearly pric-ing agreements with its customers.
the industrial minerals market
The recovery that began during the first quarter continued through the second quarter. For most industries/market seg-ments, the trend was positive, although there is some anxi-ety in Europe as to the possible implications of fiscal prob-lems in several countries. European export business is aided by a weaker euro. The steel industry and related markets, such as refractories and foundries, continue to develop posi-tively. The European construction market remains weak.
mininG diVision
iron ore production and deliveries
production of iron ore products within the Mining Division amounted to 6.2 (3.9) Mt during the second quarter. Dur-ing the period, total deliveries amounted to 6.1 (3.6) Mt of which 5.0 (2.8) Mt was pellets. As of 30 June, stocks of iron ore products amounted to 1.5 (3.6) Mt.
sales and earnings
net sales rose to MSEK 7,536 (1,303) and operating profit reached MSEK 4,855 (-751), which is explained mainly by higher incomes as a result of increased deliveries, higher prices and positive exchange rate effects.
mineraLs diVision
Demand for many of the division’s products increased dur-ing the second quarter. Better business volumes and higher margins are also reported.
sales and earnings
revenue increased by 75% to MSEK 747 (426). Operat-ing profit amounted to MSEK 85 (44). The marked improve-ment in earnings is explained by increased sales and higher margins.
sPeCiaL bUsinesses sales and earnings
revenue increased by 50% to MSEK 394 (263). The increase in revenue is mainly a result of the fact that KGS has increased sales of services for rock work, rock bolt-ing, shotcreting and crushing. Operating profit amounted to MSEK 48 (33).
the GroUP’s CaPitaL eXPenditUres
The Group’s investments in fixed assets amounted to MSEK 920 (989). Disbursements for ongoing work on the new main levels in Malmberget and Kiruna have accounted for the greater share of these expenditures. Short-term invest-ments of MSEK -668 (37) have had an impact on investing activities (net).
the GroUP’s LiQUidity
Cash flow from operating activities for the quarter amounted to MSEK 1,188 (-1,356), which is mainly attributable to the positive earnings trend. Cash flow amounted to MSEK 20 (-4,119). Liquid assets and short-term investments totaled MSEK 7,870 (4,363).
During the second quarter, the net inflow of US dollars from the sale of iron ore amounted to MUSD 592 (248), of which MUSD 300 (355) was hedged under forward exchange contracts at an average rate of 8.12 (6.64) SEK/ USD. The average exchange rate on the spot market was 7.57 (7.92) SEK/USD during the same period.
During the first half of the year, the net inflow of US dol-lars from the sale of iron ore amounted to MUSD 1,092 (601), of which MUSD 630 (795) was hedged under for-ward exchange contracts at an average rate of 8.08 (6.64) SEK/USD. The average exchange rate on the spot market was 7.39 (8.16) SEK/USD during the same period. At the end of the second quarter, MUSD 1,610 was hedged under forward exchange contracts at an average rate of 7.68 SEK/USD. At the same time last year, hedging contracts amounted to MUSD 1,245 at an average rate of 7.52 SEK/USD.
Parent ComPany
The parent Company’s revenue reached MSEK 7,504 (1,295), of which MSEK 87 (42) refers to invoiced sales to subsidiaries. Income after financial items was MSEK 4,880 (-464).
Investments in fixed assets amounted to MSEK 908 (887). Liquid assets and short-term investments amounted to MSEK 7,596 (4,130) at the end of the quarter.
transaCtions With reLated Parties
no transactions that have significantly affected the com-pany’s financial position and earnings have taken place between LKAB and related parties.
risKs and UnCertainty FaCtors
As an international group, LKAB is exposed to various risks. risk management is vital for achieving business objectives and there are a number of activities for controlling, if possi-ble, the operating risk, financial risks and other risks. These risks are associated with fluctuations in the company’s earn-ings and cash flow as a result of currency exchange-rate fluctuations, interest rates, refinancing and credit risks. Financial risks are managed according to Group policies established by the Board of LKAB.
Major risks are LKAB’s volume dependency, the pricing of iron ore and transaction exposure in US dollars.
During an economic boom, demand for pellets is greater than demand for fines. Since pellets account for about 70% of LKAB’s deliveries, LKAB is sensitive to fluctuations in the business cycle. Sea freight rates have a major effect, but LKAB is at an advantage, since 75 percent of the compa-ny’s customers are in Europe. LKAB has relatively few cus-tomers, which means that that each individual customer is very important. High and consistent product quality in com-bination with value-adding services is an important risk- mitigating factor.
Global price-setting of iron ore has in most cases shifted from yearly to quarterly agreements. LKAB has opted to con-tinue to sign annual agreements, so as to enable long-term planning of operations and to avoid quarterly variations. Iron ore trading is conducted in US dollars. LKAB’s inflows of payments (transaction exposure) are exposed to risks associated with currency fluctuations, which is why they are hedged with forward contracts in US dollars in accordance with the parent Company’s currency policy. The exact magni-tude of this risk is difficult to ascertain far in advance, since it is largely dependent on the market price of iron ore. LKAB’s mining at successively deeper levels in the operat-ing locations in the Ore Fields entails a successive expansion of deformation zones, which is a result of mining. Changes in the local urban structures are therefore inevitable in the long term. Together with local authorities, government agen-cies, property owners, the state/owner and other
stakehold-ers, LKAB is working actively to find joint, long-term sus-tainable solutions for the urban transformation. As agree-ments are reached with the respective stakeholders, LKAB allocates funds for these commitments. Discussions with the respective stakeholders concerning the necessary measures and funding are in progress.
The urban transformation will entail considerable expen-ditures during the coming years.
For further information concerning risks, please refer to LKAB’s annual report for 2009.
FUtUre deVeLoPment
LKAB is implementing major strategic investments in future mining and production capacity, with disbursements of about five to six billion SEK per year over the coming five years. LKAB’s share of costs associated with the urban transforma-tion in Kiruna and Malmberget places high demands on the Group’s financing and capacity to generate strong financial outcomes and cash flows over the coming years.
LKAB has invested about 22 billion SEK in the operation over the past five years, and thereby has facilities that are capable of producing about 28 Mt of iron ore products per year.
Access to crude ore i.e., mining capacity, is the bottleneck in the chain of production of iron ore products. LKAB’s strat-egy plan for the coming years includes an activity called LKAB 37, which implies volumetric growth of about 35-40 Mt iron ore products per year. This strategy also implies that capacity on the Malmbanan railway between the produc-tion sites and and the harbors must be upgraded to accom-modate the increased volume of products (30-33 Mt on the Kiruna-narvik line), and also that new mines will be opened.
In May 2010, LKAB inaugurated the Gruvberget open-pit mine in Svappavaara. Under full production, this mine will supply the Svappavaara pelletizing plant with two million tonnes of crude ore per year. Applications for environmen-tal permits for the two other planned open-pit mines in the Svappavaara area are pending. The old Leveäniemi open pit will be drained and test mining will be conducted in the Mertainen deposit. prospecting of more iron ore deposits in the vicinity of current mine operations is also under way. The world’s three dominating iron ore suppliers have now switched from yearly to quarterly price agreements with their steelmill customers. LKAB has elected to continue to sign yearly agreements.
LKAB’s exposure on the electricity market is increasing. Despite major efforts to improve energy efficiency, LKAB’s demand for electricity will increase as a result of the planned increase in production capacity.
There is a certain degree of uncertainty as to develop-ments on the global iron ore market over the coming 12 months.
accounting principles
This interim report was prepared in accordance with IAS 34, Interim Financial reporting. With the exception of certain new standards and interpretations applied as of 1 January 2010, the same accounting principles and grounds for assessment that were used in the most recent annual report have been applied.
The respective changes that are deemed to be applicable to LKAB are described below. It is LKAB’s assessment that these amendments have not entailed any significant effects on LKAB’s financial statements.
IFrS 3 Business Combinations and IAS 27 Consolidated and Separate Financial Statements (revised), where, among other things, transaction costs for business combinations are to be expensed.
The interim report for the parent Company was prepared in accordance with the Annual Accounts Act and Securities Mar-ket Act, which is in line with standard rFr 2.3 reporting by a legal entity.
The Board of Directors and the president assert that the half-yearly report gives a true overview of the activities, results and financial position of the company and Group and also describes the significant risks and uncertainties to which the company and the other companies in the Group are exposed.
This report has not been subject to special examination by the company’s auditors.
Luleå, 13 August 2010
Luossavaara-Kiirunavaara AB (plc)
reporting dates date
Interim report Q3 2010 27 October 2010 Interim report Q4 2010 February 2011 Annual General Meeting April 2011
Questions concerning this report may be directed at Lars-Eric Aaro, president and CEO, +46 (0)70-3738106 or Leif Boström, Senior vice president Finance, +46 (0)70-3738162 at a press conference to be held at 1.30 p.m. on 13 August 2010, or by telephone after 3 p.m. on the same date.
Björn Sprängare
Chairman
Christer Berggren Stina Blombäck Per-Ola Eriksson
Board Member Board Member Board Member
Lars-Åke Helgesson Anna-Greta Sjöberg Egil M. Ullebö
Board Member Board Member Board Member
Maija-Liisa Friman Hanna Lagercrantz Tomas Nilsson
Board Member Board Member Employee representative
Jan Thelin Tomas Kohkoinen Lars-Eric Aaro
THE LKAB GROUP
Income statement in summary
Q 2 Q 2 Q 1-2 Q 1-2 Full year (MSEK) 2010 2009 2010 2009 2009 net sales 8,235 1,721 12,722 4,029 11,558 Cost of goods sold -2,947 -2,153 -5,871 -4,090 -10,029 Gross profit/loss 5,288 -432 6,851 -61 1,529 Other operating expense and operating income -237 -219 -439 -425 -870 Operating profit 5,051 -651 6,412 -486 659 Income from financial items -37 93 -14 279 533 profit after financial items 5,014 -558 6,398 -207 1,192 Tax -1,254 85 -1,654 -15 -473 profit after tax 3,760 -473 4,744 -222 719 Income for the period attributable to
parent Company shareholders 3,760 -473 4,744 -222 719
Statement of comprehensive income in summary
Q 2 Q 2 Q 1-2 Q 1-2 Full year (MSEK) 2010 2009 2010 2009 2009 Income for the period 3,760 -473 4,744 -222 719 Exchange rate differences on translation for
foreign entities 17 -9 -32 66 46 Change in fair value of financial assets held
for sale for the period -296 244 -201 268 668 Change in fair value of cash-flow hedges for the period -510 1,235 -795 1,373 2,068 Tax attributable to components of cash-flow hedges 134 -326 209 -361 -544 Other comprehensive income for the period -655 1,144 -819 1,346 2,238 Total comprehensive income for the period
attributable to parent Company shareholders 3,105 671 3,925 1,124 2,957
Sales per division
Q 2 Q 2 Q 1-2 Q 1-2 Full year (MSEK) 2010 2009 2010 2009 2009 Mining Division 7,536 1,303 11,445 3,195 9,613
of which intra-group revenue 88 41 145 71 237
Minerals Division 747 426 1,328 807 2,141
of which intra-group revenue 33 32 33 30 193
Special Businesses Division 394 263 748 518 1,098
of which intra-group revenue 322 198 622 389 864
Eliminations -442 -271 -799 -491 -1,294 Total revenue 8,235 1,721 12,722 4,029 11,558
Income per division
Q 2 Q 2 Q 1-2 Q 1-2 Full year (MSEK) 2010 2009 2010 2009 2009 Mining Division 4,855 -751 6,041 -675 537 Minerals Division 85 44 197 83 -95 Special Businesses Division 48 33 90 92 168 Consolidation adjustments 63 23 84 14 49 Operating profit 5,051 -651 6,412 -486 659THE LKAB GROUP
Balance sheet
in summary
30 June 30 June Full year (MSEK) 2010 2009 2009 ASSETS Fixed assets Intangible assets* 346 406 310 Tangible assets 22,334 21,002 21,551 Financial assets 1,622 1,414 1,827 Total fixed assets 24,302 22,822 23,688 Current assets
Inventories 2,264 3,244 2,301 Current receivables 5,482 2,219 3,371 Short-term investments 4,395 2,879 3,564 Liquid assets 3,475 1,484 2,631 Total current assets 15,616 9,826 11,867 TOTAL ASSETS 39,918 32,648 35,555 SHArEHOLDErS’ EQUITY AnD LIABILITIES
Shareholders’ equity attributable to parent Company shareholders 28,800 23,542 25,375 Total shareholders’ equity 28,800 23,542 25,375 Long-term liabilities
provisions for pensions and similar commitments 1,913 1,976 1,979 Deferred tax liability 3,220 3,025 3,420 Other provisions and liabilities 2,070 2,326 2,155 Total long-term liabilities 7,203 7,327 7,554 Current liabilities
Accounts payable – trade 1,381 1,055 1,185 Other liabilities 2,534 724 1,441 Total current liabilities 3,915 1,779 2,626 TOTAL SHArEHOLDErS’ EQUITY AnD LIABILITIES 39,918 32,648 35,555 *As per 30 June 2010, goodwill amounts to MSEK 213 (233), mineral rights MSEK 20 (101), emissions rights MSEK 109 (58), and other intangible assets MSEK 3 (14).
THE LKAB GROUP
Statement of changes in comprehensive shareholders’ equity in summary
Q 2 Q 2 Q 1-2 Q 1-2 Full year (MSEK) 2010 2009 2010 2009 2009 Opening balance for the period 26,195 25,671 25,375 25,218 25,218 Dividend -500 -2,800 -500 -2,800 - 2,800 Total comprehensive income for the period 3,105 671 3,925 1,124 2,957 Closing balance for the period 28,800 23,542 28,800 23,542 25,375
Statement of cash flow
in summary
Q 2 Q 2 Q 1-2 Q 1-2 Full year (MSEK) 2010 2009 2010 2009 2009 Cash flow from operating activities
profit after financial items 5,014 -558 6,398 -207 1,192 Adjustments for non-cash items 300 347 774 754 1,952 Income tax paid -553 -116 -934 -908 -213 Cash flow from operating activities before
working capital changes 4,761 -327 6,238 -361 2,931 Cash flow from changes in working capital -2,653 -40 -2,289 -260 -43 Cash flow from operating activities 2,108 -367 3,949 -621 2,888 Investments in tangible assets -920 -989 -1,774 -1,859 -3,543 Other operating investments 7 Cash flow from operating activities
(excluding short-term investments) 1,188 -1,356 2,175 -2,480 -648 Short-term investments (net) -668 37 -831 993 308 Cash flow after investing activities 520 -1,319 1,344 -1,484 -340 Cash flow from investing activities – dividend paid -500 -2,800 -500 -2,800 -2,800 Cash flow for the period 20 -4,119 844 -4,287 -3,140 Liquid assets at start of period 3,455 5,603 2,631 5,771 5,771 Liquid assets at end of period 3,475 1,484 3,475 1,484 2,631 Change in liquid assets 20 -4,119 844 -4,287 -3,140 Sub-components of liquid assets
Cash and bank balances 731 459 548 Short-term investments 2,738 1,018 2,091 Exchange-rate differences in liquid assets 6 7 -8 Total 3,475 1,484 2,631
THE LKAB GROUP
Personnel
Q 1-2 Q 1-2 Full year 2010 2009 2009 Average number of employees 3,894 3,638 3,778 - of which women 560 462 502 - of which men 3,334 3,176 3,276
Key ratios
Q 1-2 Q 1-2 Full year 2010 2009 2009 profit margin % 50.3 -5.1 10.3 return on equity % 21.7 12.6 2.8 Equity/assets ratio at end of period % 72.1 72.1 71.4Definitions
PARENT COMPANY
Income statement in summary
Q 2 Q 2 Q 1-2 Q 1-2 Full year (MSEK) 2010 2009 2010 2009 2009 net sales 7,504 1,295 11,400 3,176 9,570 Cost of goods sold -2,584 -1,918 -5,157 -3,601 -8,497 Gross profit/loss 4,920 -623 6,243 -425 1,073 Other operating expense and operating income -143 -136 -263 -262 -552 Operating profit 4,777 -759 5,980 -687 521 Income from financial items 103 295 110 544 785 profit after financial items 4,880 -464 6,090 -143 1,306 Appropriations 0 256 0 147 -311 Tax -1,239 56 -1,599 0 -229 Income for the period 3,641 -152 4,491 4 766
Statement of comprehensive income in summary
Q 2 Q 2 Q 1-2 Q 1-2 Full year (MSEK) 2010 2009 2010 2009 2009 Income for the period 3,641 -152 4,491 4 766 Total comprehensive income for the period 3,641 -152 4,491 4 766
Balance sheet in summary
30 June 30 June Full year (MSEK) 2010 2009 2009 ASSETS
Fixed assets
Intangible assets 109 66 65 Tangible assets 17,921 16,787 17,056 Financial assets in group companies 1,627 1,663 1,648 Other financial assets 610 630 610 Total fixed assets 20,267 19,146 19,379 Current assets
Inventories 1,604 2,494 1,652 Current receivables in group companies 2,240 2,400 2,553 Other current receivables 4,897 1,603 2,189 Short-term investments 7,044 3,794 5,561 Cash and bank balances 552 336 325 Total current assets 16,337 10,629 12,280 TOTAL ASSETS 36,604 29,775 31,659 SHArEHOLDErS’ EQUITY AnD LIABILITIES
Shareholders’ equity 17,298 12,578 13,307 Untaxed reserves 12,076 11,618 12,076 provisions 3,423 3,680 3,512 Long-term liabilities in group companies 0 15 0 Current liabilities
Accounts payable – trade 953 784 571 Liabilities to group companies 970 690 1,171 Other liabilities 1,884 410 1,022 Total current liabilities 3,807 1,884 2,764 TOTAL SHArEHOLDErS’ EQUITY AnD LIABILITIES 36,604 29,775 31,659 Assets pledged 260 252 223 Contingent liabilities 318 199 174
Key ratios
Q 1-2 Q 1-2 Full year2010 2009 2009 profit margin % 53.3 17.1 13.6 return on equity % 22.2 17.7 3.3 Equity/assets ratio at end of period % 71.6 72.4 70.1
LKAB GROUP HEAD OFFICE
Box 952, SE 971 28 Luleå, Sweden Tel +46 (0)920-380 00, fax (0)920-195 05 Lars-Eric Aaro, President and CEO
MARKETING AND SALES
LKAB NORDIC REGION
Sweden, Finland, Norway, Denmark and Iceland Box 952, SE 971 28 Luleå, Sweden Tel +46 (0)920-380 00, fax (0)920-148 63. [email protected] Johan Heyden, Sales Manager LKAB S.A. Benelux, France, UK, Italy, Spain, Portugal, Turkey, Africa, Americas Chaussée de la Hulpe 150, BE-1170, Brussels, Belgium Tel +32-2 663 36 70. Fax +32-2 675 05 91. [email protected] Staffan Stenström, President LKAB SCHWEDENERZ GmbH Germany, Austria and Central and Eastern Europe. Rüttenscheider Strasse 14, DE-45128 Essen, Germany. Tel +49 201 879 440. Fax +49 201 879 4444. [email protected] Göran Ottosson, President LKAB FAR EAST Pte. Ltd
Asia, Southeast Asia, Middle East and Australia 300 Beach Road #29-02, The Concourse, Singapore 199555. Tel +65 6392 49 22. Fax +65 6392 49 33. [email protected] Stig Nordlund, President IRON ORE LKAB SE-981 86 Kiruna, Sweden. Tel +46 (0)980-710 00. Fax (0)980-109 02. LKAB SE-983 81 Malmberget, Sweden. Tel +46 (0)970-760 00. Fax (0)970-236 00. Malmtrafik i Kiruna AB (MTAB)
SE-981 86 Kiruna, Sweden. Tel +46 980-710 00. Fax (0)980-109 02. Göran Heikkilä, President LKAB Norge AS Postboks 314, NO-8504 Narvik, Norway. Tel +47 769 238 00. Fax +47 769 449 25. Svein Ivar Sivertsen, President
LKAB, Luleå harbor
Box 821, SE 971 25 Luleå, Sweden Tel +46(0)920-380 50. Fax (0)920-380 60. Lars Andersson, general manager MINERALS Minelco AB Box 952, SE 971 28 Luleå, Sweden Tel +46(0)920-381 60. Fax (0)920-190 88. [email protected] Markus Petäjäniemi, President Minelco Oy P.O. Box 57. FI-718 01 Siilinjärvi, Finland. Tel +358 17 266 0160. Fax +358 17 266 0161. [email protected] Kari Laukkanen, President Minelco Inc.
2020 Scripps Center, 312 Walnut Street Cincinnati, OH 45202, USA. Tel +1 513 322 5530. Fax +1 513 322 5531. [email protected] Mats Drugge, President Minelco Ltd Flixborough Industrial Estate, Flixborough, North Lincolnshire, DN15 8SF, England. Tel +44 1724 277411. Fax +44 1724 866405. [email protected] Robert Boulton, President Minelco GmbH P.O. Box 10 25 54, DE-450 25 Essen, Germany. Tel +49 201 45060. Fax +49 201 4506 490. [email protected] Barbara Eicher, President Minelco B.V. Vlasweg 19, Harbour M164, P.O. Box 16, NL-4780 AA Moerdijk, The Netherlands. Tel +31 168 388 500. Fax +31 168 388 599. [email protected] Yvonne Dirken, President Minelco Asia Pacific Ltd. Rm 3407 China Resources Building 26 Harbour Road
Wanchai, Hong Kong
Tel +852 2827 4138. Fax +852 2827 5574. [email protected]
John Engel, President
Minelco (Tianjin) Minerals Co., Ltd Junyi Industrial Park,
Jungliangcheng, Dongli District, Tianjin, P.R. China 300301. Tel +86 22 2435 1706. Fax +86 22 2435 1708. [email protected] Bin Zhou, President Minelco A/S Boks 1329, DK-3900 Nuuk, Greenland. Tel. +299 1991 13. [email protected] Peter Mörtlund, President
Minelco Slovak Republic Representative Office Panenska 13, SK-81103 Bratislava, Slovak Republic. Tel +421 2 5930 5753. Fax +421 2 5930 5754. [email protected] Marian Zilinsky, Sales Manager Minelco Spain Representative Office Olesa, 7B, 08503 Gurb, Spain Tel/fax +34 93 886 0194 [email protected] Minelco Greece Representative Office 13, N.Kountouriotou str., 546 25 Thessaloniki, Greece Tel: +30 2310 539073. Fax +30 2310 552882 [email protected] Minelco Singapore Representative Office 300 Beach Road #29-02, The Concourse, Singapore 199555. Tel +65 6392 49 22. Fax +65 6392 49 33. [email protected] SUBSIDARIES Wassara AB Hornsgatan 103, SE-117 28 Stockholm. Tel +46(0)8-84 95 50. Fax (0)8-84 02 71. [email protected] Peter Johansson, President AB Kiruna Grus & Stenförädling Box 817, SE-981 28 Kiruna, Sweden. Tel +46(0)980-685 00. Fax (0)980-832 79. [email protected] Peter Söderman, President Fastighets AB Malmfälten SE-981 86 Kiruna, Sweden. Tel +46(0)980-710 00. Fax (0)980-728 95. [email protected] Mats Pettersson, President LKAB Nät AB SE-981 86 Kiruna, Sweden Tel +46(0)980-710 00. Fax (0)980-109 05. [email protected] LKAB Försäkrings AB Box 952, SE 971 28 Luleå, Sweden Tel +46 (0)920-380 00, fax (0)920-195 05 [email protected]
