Ruukki s general presentation

(1)

(2)

(3)

Ruukki’s general

presentation

(4)

Content

1. Ruukki in brief

2. Business areas

3. Corporate responsibility

(5)

Ruukki in brief

• Ruukki specialises in steel and steel construction

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

• Ruukki operates in some 30 countries and employs around 8,600 people.

(6)

Ruukki’s business areas

Ruukki Building Products Ruukki Metals

Net sales €1 679m * Net sales €430m * Net sales €292m *

Nordics Russia CEE

Functional building systems

* 2013, comparable net sales

Ruukki Building Systems Residential roofing Building components Infrastructure construction/components Special steel products

Standard steel products Tubes and profiles

(7)

We provide customers with energy-efficient steel solutions for better living, working and moving.

Sales office Certified Partner Production

(8)

Net sales down in most market areas

Net sales by market area* 2013 (2012) 100% = €2,404m (€2,597m) Other Nordic countries 31% (30%) Finland 25% (26%) Central Eastern Europe 15% (14%) Rest of Europe 13% (14%) Other countries 7% (6%) Russia and Ukraine 10% (10%) * Comparable

• Comparable net sales down year on year in most market areas, decreased most in Finland

• Growth in markets outside Europe

• Net sales almost at same level year on year in Central Eastern Europe

(9)

Our Values

• We take responsibility

• We succeed together

(10)

Research and development – focus on energy efficiency

• Focus areas of our R&D

– Construction efficiency, especially energy efficient solutions

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

engineering and automotive industry and construction

• In 2013 we invested €21m in R&D

Ruukki’s fully-integrated solar panel façade converts

(11)

(12)

Ruukki Building Products

Foundation and

infrastructure products

Foundations, piles, noise barriers, guard rails

Panel products

such as sandwich panels, load-bearing sheets, façade claddings

Building products: Net sales €430m

Roofing products

such as steel roofs, rainwater and safety systems

Installation, Finland

(13)

We continuously develop new energy-efficient solutions

Ruukki has developed several energy-efficient solutions for construction: • Energy panels

• Energy piles

• Solar panel façade • Fully recyclable and reusable Ruukki life panel • Ruukki Classic Solar Panel roof

(14)

(15)

Ruukki Building Systems

Buildings, Nordics & CEE

Design, manufacture and installation of frames and envelopes

Building systems: Net sales €292m

Buildings, Russia

Concept building, deliveries of materials without installation Single-storey construction Sports centre Commercial construction Agriculture

(16)

(17)

Ruukki Metals overview

• Steel production in 2013

approximately 2.2 million tonnes • Net sales in 2013: €1 679m

• Around 5,200 employees • Special Steels:

A strong global position in the hot rolled special steels

• Tubes: A strong position in steel

tubes in the Nordics

• Flat Nordic: The leading provider

of carbon and stainless steels in

High-strength, wear-resistant and special coated steels (33%)

(18)

• High-strength,

wear-resistant and coated steels

– to design new and improved end-products

• High-strength steels

– to reach higher, lower weight

• Wear-resistant and high-strength steels

– to increase productivity and payloads, extend service life

• Parts processing, prefabrication – to optimise processing and lead times

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

(19)

Corporate responsibility as an

integrated part of strategy and

business

(20)

Our vision is to be an innovative and acknowledged provider of energy efficient steel solutions

to build a better living environment together with our customers

Energy-efficient building and special steel products form the focus area of our strategy and a growing business opportunity

(21)

Corporate responsibility at Ruukki -focus areas and objectives

• Energy-efficient products and solutions that lower lifecycle costs

• Improved energy efficiency in our own operations

Energy efficiency Competence

• Increased product develop-ment and manufacturing technology competence in special steels

• Strengthened sales skills especially in Russia and new markets

• Improved competence in the roofing business

Safety

• Reduction in the total number of injuries

• Increased awareness to eliminate human errors and to create a safety culture

(22)

How corporate responsibility is managed

• Corporate responsibility at Ruukki is promoted at all sites, in

business support functions and in business activities as an

inherent part of everyday business.

• On Ruukki’s Corporate Executive Board, the chief strategy officer is responsible for corporate responsibility and also chairs the corporate responsibility taskforce.

• A corporate responsibility taskforce coordinates corporate responsibility reporting and development.

• The company’s production sites operate in compliance with certified ISO 14001:2004 environmental management and ISO 9001:2000 quality management systems, which cover 100% of production.

(23)

Our responsible operations are guided by

• Ruukki’s values

• Corporate strategy

• Code of Conduct

• Corporate governance

• Integrated management system covering quality, safety,

energy and environmental aspects

(24)

• Ruukki has signed the UN Global Compact initiative and is

committed to its principles applying to:

• human rights

• labour

• the environment

• and anti-corruption

Ruukki is committed to universally recognised principles of responsible business activities

(25)

• Sustainability leader in RobecoSAM Sustainability yearbook 2014, awarded with bronze class

• Prime class - status in Oekom's sustainability ratings

• Part of the Carbon Disclosure Project (CDP) ranking since 2007

• Awarded by Worldsteel with a

special Climate Action membership certificate for providing CO₂ data for 5 consecutive years

• Included in the Ethibel PIONEER & EXCELLENCE Investment

Our responsibility and sustainability work has been recognised

(26)

(27)

Key figures Q4/2013 Q4/2012 2013 2012 Order intake * €m 574 624 2 376 2 605 Net sales * _€m ₅₉₀ ₆₃₄ _{2 404} _{2 597} Operating profit * _€m ₈ _-34 ₃₉ _-50 as % of net sales * _% _1.3 _-5.3 _1.6 _-1.9

Result before income taxes * €m -3 -42 -1 -88 Earnings per share € -0.07 -0.41 -0.10 -0.85 Net cash from operating activities €m 80 79 184 172

(28)

Ownership structure As at 31 December 2013 Solidium Oy *) 39.7% Non-Finnish and nominee registered owners 12.8% Other Finnish institutions 23.8% Finnish households 23.7%

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

(29)

2 495 2 605 2 376 300 600 900 1 200 1 500 1 800 2 100 2 400 2 700 3 000 632 624 628 611 633 711 638 624 590 644 568 574 100 200 300 400 500 600 700 800

Order intake volumes roughly at last years’ level, selling prices down

Order intake down 9% year on year

Quarterly order intake* (€m)

‐8%

‐19%

‐9% +5%

Annual order intake* (€m)

‐9%

‐10% ‐2%

(30)

633 685 633 669 651 688 624 634 589 633 592 590 0 100 200 300 400 500 600 700 800 Q1 /2 0 11 Q2 /2 0 11 Q3 /2 0 11 Q4 /2 0 11 Q1 /2 0 12 Q2 /2 0 12 Q3 /2 0 12 Q4 /2 0 12 Q1 /2 0 13 Q2 /2 0 13 Q3 /2 0 13 Q4 /2 0 13

Net sales and operating profit

Quarterly net sales* (€m)

* Comparable Ruukki Building Products

Ruukki Building Systems

Ruukki Metals ‐7%

+6%

‐10% ‐2%

Operating profit* and group EBITDA (€m) Comparable operating profit Reported EBITDA ‐11 10 ‐15 ‐34 4 17 10 8 20 35 17 ‐17 37 49 42 39 ‐50 ‐40 ‐30 ‐20 ‐10 0 10 20 30 40 50 Q1 /1 2 Q2 /1 2 Q3 /1 2 Q4 /1 2 Q1 /1 3 Q2 /1 3 Q3 /1 3 Q4 /1 3

(31)

75 120 139 123 83 125 133 112 78 112 130 110 0 20 40 60 80 100 120 140 1 1 1 1 2 2 2 2 3 3 3 3

Building Products’ net sales

Net sales by product group, (€m)*

Full-year net sales down 5%, growth in residential construction in Sweden and in components in Norway

‐2% + 1% 0% ‐13% Building Products 457 ₄₅₂ 430 50 100 150 200 250 300 350 400 450 500 ‐5% ‐ 4% ‐2% ‐12%

(32)

60 81 80 79 70 74 75 _{69 68} 76 76 73 0 20 40 60 80 100 Q1 /1 1 Q2 /1 1 Q3 /1 1 Q4 /1 1 Q1 /1 2 Q2 /1 2 Q3 /1 2 Q4 /1 2 Q1 /1 3 Q2 /1 3 Q3 /1 3 Q4 /1 3

Building Systems’ net sales roughly at last year’s level

**Rouble-denominated net sales in Russia up 9% year on year

Net sales by market area, (€m) *

Building Systems

* Reported

Russia Nordic countries Central Eastern Europe +6% +15% +19% ‐22% 300 288 292 0 50 100 150 200 250 300 350 20 11 20 12 20 13 +1% +10% ‐3%** ‐4%

Clear decrease in net sales in Finland, rouble-denominated net sales up in Russia

(33)

1 783 1 787 1 679 200 400 600 800 1000 1200 1400 1600 1800 2000 478 ₄₆₇ 396 442 477 470 406 434 443 439 389 407 100 200 300 400 500

Metals’ comparable net sales down 10%

Net sales by product group*, (€m)

Clear rise in delivery volumes of special steel products, fourth quarter net sales of special steels up 24% year on year

+24% ‐21% ‐10% ‐8% Metals +1% ‐10% ‐10% ‐6%

(34)