Quarterly Report • Mar 31, 2012
Quarterly Report
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07:00 London, 09:00 Helsinki, 10 May 2012 - Ruukki Group Plc ("Ruukki" or "the Company") (LSE: RKKI, OMX: RUG1V) Interim Report
Production increased by 3.8% to 91,167 (Q1/2011: 87,809) tonnes
Sales from processed products increased by 14.3% to 32,814 (Q1/2011: 28,714) tonnes
Revenue increased by 34.3% to EUR 46.7 (Q1/2011: 34.8) million
EBITDA was EUR 2.8 (Q1/2011: 3.5) million and the EBITDA margin was 6.0% (Q1/2011: 9.9%)
EBIT was EUR -4.1 (Q1/2011: -3.6) million
Profit for continuing operations totalled EUR -2.1 (Q1/2011: -3.1) million
Cash flow from operations was EUR 1.6 (Q1/2011: 3.8) million and liquid funds at 31 March were EUR
65.1 (31 March 2011: 89.2) (31 December 2011: 65.9) million
| KEY FIGURES (EUR million) | Q1/12 | Q1/11 | Change | FY/11 |
|---|---|---|---|---|
| Revenue | 46.7 | 34.8 | 34.3% | 159.1 |
| EBITDA | 2.8 | 3.5 | -19.3% | 1.4 |
| EBITDA margin | 6.0% | 9.9% | 0.9% | |
| EBIT | -4.1 | -3.6 | -26.5 | |
| EBIT margin | -8.8% | -10.2% | -16.6% | |
| Earnings before taxes | -2.6 | -3.9 | -25.4 | |
| Earnings margin | -5.5% | -11.2% | -16.0% | |
| Profit for continuing operations | -2.1 | -3.1 | -18.4 | |
| Profit for discontinued operations | 0.0 | 43.0 | 41.1 | |
| Profit | -2.1 | 39.9 | 22.7 | |
| Earnings per share, basic, EUR | -0.01 | 0.17 | 0.10 |
Continuing operations include the Speciality Alloys and the FerroAlloys business segments and unallocated items that consist of Group headquarters and other Group companies, which do not have significant business operations. Discontinued operations include the house building, pallet and sawmill businesses which were divested in 2011.
"The Group's quarterly production increased by 4% compared to the equivalent period in 2011. Both TMS and EWW in our Speciality Alloys business continued to produce at almost full capacity. In our Ferro Alloys business the Stellite mine increased volumes by 73% as a result of its successful ramp-up last year, while the alloy processing plant Mogale decreased production by 66% due to the decision to accept electricity buy-back arrangement with Eskom and keep majority of the furnaces shutdown.
Demand and prices for our European speciality alloy products remained stable from the fourth quarter of 2011 and throughout the first quarter of 2012. For our South African operations the Eskom electricity buyback programme had a positive effect on our main product, Charge Chrome, prices at the end of the first quarter compared to the fourth quarter of 2011. However, the production cuts increased the supply of chrome ore for export, which consequently drove ore prices down. Both Charge Chrome and chrome ore prices were still lower compared to the first quarter of 2011. Demand is estimated to remain weak and volatile and visibility on how the markets will perform for the rest of the year is low.
I am pleased to report our best revenue performance so far although this was unable to be translated into an increased EBITDA due to the lower prices we received for our products compared to the equivalent period in 2011. However, EBITDA did improve by EUR 3.9 million quarter on quarter.
After the end of the first quarter we have announced our intention to consolidate the control and ownership of our Speciality Alloys business with the acquisition of Elektrowerk Weisweiler GmbH ("EWW"). I believe this strategic acquisition will enhance the long-term profitability of the business as we replace the tolling arrangement with security of supply. The transaction is conditional on the decision of the Annual General Meeting, and if successful, we will have complete control over our assets and a
secured and fully integrated supply chain from mine to customer across the Group."
The global economic outlook for 2012 is uncertain as the Eurozone crisis continues and demand for commodities, primarily driven by Chinese consumption, remains weak. The ferroalloy market is expected to continue to be volatile during the year. The Group is preparing for significant price fluctuations and will continue to adapt its productions levels accordingly. At Mogale, part of the FerroAlloys division, the decision has been taken to put majority of furnaces on care and maintenance for the first half of the year. This decision will be reviewed during the second quarter. The market for speciality alloy products is estimated to be more stable, however, uncertainty remains in 2012 too. In light of this and until the market for its products improve, the Group expects its financial performance for the full year 2012 to be comparable to 2011.
Fluctuations of exchange rates between the Euro, the South African Rand, the Turkish Lira and the US Dollar can significantly impact the Company's financial performance.
Ruukki follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority, and hereby publishes its Q1 Interim Report enclosed to this stock exchange release. The Q1 Interim Report is attached to this release and is also available on the Company's website at www.ruukkigroup.com.
Management will host an investor conference call in English on 10 May 2012 at 13.00 Finnish time, 11.00 UK time. Please dial-in at least 10 minutes beforehand, quoting the reference: 916695.
Finnish number +358 (0)9 2313 9201
UK number +44 (0)20 7162 0077
RUUKKI GROUP PLC Thomas Hoyer CEO
For additional information, please contact:
Thomas Hoyer, CEO, +358 (0)10 440 7000, [email protected] Kalle Lehtonen, General Manager: Finance, +358 (0)400 539 968, [email protected] Markus Kivimäki, General Manager: Corporate Affairs, +358 (0)50 3495 687, [email protected]
Stephen Cooper, +44 (0)20 7597 5104, [email protected]
Martin Eales, +44 (0)20 7653 4000, [email protected] Peter Barrett-Lennard, +44 (0)20 7653 4000, [email protected]
Financial reports and other investor information are available on the Company's website: www.ruukkigroup.com
Ruukki Group is a chrome mining and minerals producer focused on delivering sustainable growth with a speciality alloys business in southern Europe and a ferro alloys business in southern Africa. The Company is listed on NASDAQ OMX Helsinki (RUG1V) and the Main Market of the London Stock
Exchange (RKKI). www.ruukkigroup.com
Distribution: NASDAQ OMX Helsinki London Stock Exchange main media www.ruukkigroup.com
This Interim Report is prepared in accordance with the IAS 34 standard and is unaudited. All the figures in this Interim Report related to the house building, pallet and sawmill businesses are categorised as discontinued operations. All the corresponding comparable figures of 2011 are presented in brackets, unless otherwise explicitly stated.
The Group's sales from processing, which includes all products both from Mogale Alloys and EWW processing plants, was 32,814 (Q1/2011: 28,714) tonnes representing an increase of 14.3%.
Sales from processing:
| Metric Tons | Q1/12 | Q1/11 | FY/11 |
|---|---|---|---|
| Processing, Speciality Alloys | 9,582 | 5,640 | 24,292 |
| Processing, FerroAlloys | 23,232 | 23,074 | 82,663 |
| Processing, Total | 32,814 | 28,714 | 106,955 |
Ferrochrome prices were impacted by the production cuts in South Africa as a result of the Eskom electricity buy-back programme. The market for Charge Chrome was active again at the start of the year, after a slow third and fourth quarter in 2011. The situation slowed down considerably by March when Chinese banks stopped offering credit and sales dropped ahead of benchmark price negotiations, however, prices picked up again by the end of the quarter on news of the South African production cuts.
The cut in South African ferrochrome production resulted in a surplus of ore as the chrome mines still continued production. In light of Eskom's actions and the increase in chrome ore exports to China, China is expected to overtake South Africa and become the world's largest ferrochrome producer this year for the first time.
The South African industry continues its dialogue with the Government over the export of chrome ore and the threat of the Chinese competition, including the possibility of levying an export tax. Ruukki is an active participant in these discussions.
| EUR million | Q1/12 | Q1/11 | Change | FY/11 |
|---|---|---|---|---|
| Revenue | 46.7 | 34.8 | 34.3% | 159.1 |
| EBITDA | 2.8 | 3.5 | -19.3% | 1.4 |
| EBITDA margin | 6.0% | 9.9% | 0.9% | |
| EBIT | -4.1 | -3.6 | -26.5 | |
| EBIT margin | -8.8% | -10.2% | -16.6% | |
| Profit for discontinued operations |
0.0 | 43.0 | 41.1 | |
| Profit | -2.1 | 39.9 | 22.7 |
Discontinued operations include the house building, pallet and sawmill businesses which were divested in 2011.
Revenue for the first quarter 2012 increased by 34.3% to EUR 46.7 (34.8) million compared to the equivalent period in 2011. This was due to increased sales volumes in FerroAlloys business.
EBITDA for the first quarter was EUR 2.8 (3.5) million and profit for the period was EUR -2.1 (39.9) million. Despite the increase in production and revenue, it was not sufficient enough to compensate for the price decreases across the Group's product range.
Earnings per share was EUR -0.01 (0.17).
The Group's liquidity, as at 31 March 2012, when taking into account cash and cash equivalents as well as short-term deposits, remained strong at EUR 65.1 (89.2) (31 December 2011: 65.9) million. Operating cash flow in the first quarter was EUR 1.6 (3.8) million. Ruukki's gearing at the end of the first quarter was 8.5% (11.3%) (31 December 2011: 8.1%). Net interest-bearing debt was EUR 20.4 (10.2) (31 December 2011: 19.6) million.
One of the Group's South African subsidiaries, Mogale Alloys, has drawn a loan from a South African bank with the principle amount of EUR 8 million. The loan agreement includes financial covenants some of which were breached during the third quarter of 2011. After the review period in May 2012 Mogale Alloys received a waiver for the breached covenants. Currently none of the covenants are in breach.
Total assets on 31 March 2012 were EUR 420.1 (556.3) (31 December 2011: 421.8) million. The equity ratio was 57.2% (48.9%) (31 December 2011: 57.0%).
Capital expenditure for the first quarter of 2012 was EUR 2.2 (0.7) million. The expenditure related primarily to acquisitions of new mining licences in Turkey and sustaining capital expenditure at the processing plants.
At the end of the first quarter 2012, Ruukki's employees in continuing operations increased to 782 (770). The average number of employees during the first quarter of 2012 was 783 (691).
| 31.3.2012 | 31.3.2011 | Change | 31.12.2011 | |
|---|---|---|---|---|
| Speciality Alloys | 440 | 413 | 6.5% | 442 |
| FerroAlloys | 334 | 347 | -3.7% | 345 |
| Other operations | 8 | 10 | -20.0% | 10 |
| Continuing operations total | 782 | 770 | 1.6% | 797 |
The Group's target this year is to introduce standardised health, safety and environmental policies and procedures across the Group's operations and continue its programme focused on pro-active safety and environmental measurements as part of its aim to achieve "Zero Harm". This standardisation process will take the majority of the year to roll out as it will involve a specific training programme for the Group's employees and contractors.
Ruukki aims to conduct its business in a sustainable way and to preserve the environment by minimising the environmental impact of its operations. Ruukki has programmes in place to monitor and address its impact on the environment. Following the completion of a comprehensive environmental study at its South African processing facilities in the fourth quarter of 2011, the Group is reviewing a roadmap for implementation this year to further improve its actions on environmental issues.
The Speciality Alloys business consists of TMS, the mining and beneficiation operation in Turkey, and EWW, the chromite concentrate processing plant in Germany. TMS supplies EWW with high quality chromite concentrate which produces speciality products including Specialised Low Carbon and Ultralow Carbon Ferrochrome. Excess chrome ore from TMS is exported. As at 31 March 2012, the business had 440 (413) employees.
Production:
| Tonnes | Q1/12 | Q1/11 | Change | FY/11 |
|---|---|---|---|---|
| Mining* | 19,255 | 19,998 | -3.7% | 82,154 |
| Processing | 6,740 | 6,881 | -2.0% | 25,908 |
* Including both chromite concentrate and lumpy ore production
Production decreased slightly to 25,995 (26,879) tonnes for the first quarter 2012, compared to the first quarter 2011. Both the TMS and EWW operations ran at almost full capacity during the quarter.
| EUR million | Q1/12 | Q1/11 | Change | FY/11 |
|---|---|---|---|---|
| Revenue | 21.2 | 20.2 | 5.2% | 83.6 |
| EBITDA | 3.2 | 5.0 | -37.4% | 13.8 |
| EBITDA margin | 14.9% | 25.0% | 16.5% | |
| EBIT | -1.3 | 0.7 | -3.8 | |
| EBIT margin | -6.0% | 3.2% | -4.6% |
Revenue for the first quarter increased by 5.2% to EUR 21.2 (20.2) million. Although revenue increased compared to the equivalent period in 2011, it was not enough to offset the price decreases compared to the first quarter of 2011, resulting in EBITDA of EUR 3.2 (5.0) million.
The FerroAlloys business consists of the Stellite mine, the alloy processing plant Mogale, the Mecklenburg mine development project in South Africa, and the Zimbabwean mine development project Waylox. The business produces chrome ore, Charge Chrome and Silico Manganese for sale to global markets. As at 31 March 2012, the business had 334 (347) employees.
Production:
| Tonnes | Q1/12 | Q1/11 | Change | FY/11 |
|---|---|---|---|---|
| Mining* | 55,234 | 31,987 | 72.7% | 159,455 |
| Processing | 9,938 | 28,942 | -65.7% | 86,445 |
* Including both chromite concentrate and lumpy ore production
Overall production for the segment increased 7.0% to 65,172 (60,929) tonnes in the first quarter. The Stellite mine operated according to the plan, but processing volumes declined sharply following the decision to continue the shutdown of majority of the furnaces at Mogale and sell back the excess power to Eskom.
| EUR million | Q1/12 | Q1/11 | Change | FY/11 |
|---|---|---|---|---|
| Revenue | 25.5 | 14.6 | 74.4% | 75.4 |
| EBITDA | 1.4 | 0.0 | -3.9 | |
| EBITDA margin | 5.4% | 0.3% | -5.2% | |
| EBIT | -1.1 | -2.6 | -14.0 | |
| EBIT margin | -4.3% | -17.5% | -18.6% |
Revenue for the first quarter increased substantially to EUR 25.5 (14.6) million compared to the equivalent period in 2011, representing an increase of 74.4%. The rise was driven by increased sales volumes throughout the product range. The increase in sales volumes and income related to sale of the excess power to Eskom resulted in a positive EBITDA of EUR 1.4 (0.0) million.
For the first quarter of 2012, the EBITDA from unallocated items was EUR -1.8 (-1.7) million including a EUR 0.2 (0.3) million non-cash expense for the share-based payments.
On 19 January 2012 Ruukki announced that Theuns de Bruyn, Chief Operating Officer, had resigned to pursue other business opportunities.
Ruukki Group Plc's shares are listed on NASDAQ OMX Helsinki (RUG1V) and on the Main Market of the London Stock Exchange (RKKI).
On 31 March 2012, the registered number of Ruukki Group Plc shares was 248,432,000 (248,207,000) and the share capital was EUR 23,642,049.60 (23,642,049.60).
On 31 March 2012, the Company had 4,414,682 (7,790,895) own shares in treasury, which was equivalent to 1.78% (3.14%) of the issued share capital. The total amount of shares outstanding, excluding the treasury shares held by the Company on 31 March 2012, was 244,017,318 (240,416,105).
At the beginning of the period under review, the Company's share price was EUR 0.89 on NASDAQ OMX Helsinki and GBP 0.88 on the London Stock Exchange. At the end of the review period, the share price was EUR 0.90 and GBP 0.76 respectively. During the first quarter of 2012 the Company's share price on NASDAQ OMX Helsinki ranged from EUR 0.86 to 1.02 per share and the market capitalisation, as at 31 March 2012, was EUR 223.6 (1 Jan 2012: 221.1) million. For the same period on the London Stock Exchange the share price range was GBP 0.74 to 0.86 per share and the market capitalisation was GBP 188.8 (1 Jan 2012: 218.6) million, as at 31 March 2012.
Based on the resolution at the AGM on 11 May 2011, the Board is authorised to buy-back up to a maximum of 15,000,000 of its own shares. This authorisation is valid until 11 November 2012. The Company did not carry out any share buy-backs during the first quarter of 2012.
Ruukki received the following shareholder notification during the review period 1 January–31 March 2012, which can also be found on the Company website: www.ruukkigroup.com.
On 8 February 2012, Hino Resources Co. Ltd announced that its ownership has exceeded the 5 per cent threshold and it had become a 5.08 per cent holder of the shares and voting rights in Ruukki on 29 April 2011.
The changes in the key risks and uncertainties are set out below. Further details of the risks and uncertainties have been published in the Group's 2011 Annual Report.
Ruukki´s financial performance is dependent on the general market conditions of the mining, smelting and minerals processing business. Global financial markets have been very volatile, exacerbated by the Eurozone crisis, and there is uncertainty as to how commodity prices will respond in 2012 and which could considerably impact the Company's revenue and financial performance in 2012.
Changes in foreign exchange rates, if adverse, could have a substantial negative impact on the Group's profitability, in particular changes in US Dollar/South African Rand. Changes in the South African Rand exchange rate could also have an effect on the Euro value of the deferred purchase consideration of Mogale Alloys. In order to better manage its foreign exchange US Dollar/South African Rand exposure, the Group has entered into forward contract arrangements.
Ruukki's processing operations in Germany and South Africa are intensive users of energy, primarily electricity. Fuel and energy prices globally have been characterised by volatility and cost inflation. In
South Africa the majority of the electricity supply, price and availability are controlled by one entity, Eskom. Increased electricity prices and/or reduced or uncertain electricity supply or allocation may negatively impact Ruukki's current operations, which could have an impact on the Group's financial performance.
The global economic outlook for 2012 is uncertain as the Eurozone crisis continues and demand for commodities, primarily driven by Chinese consumption, remains weak. The ferroalloy market is expected to continue to be volatile during the year. The Group is preparing for significant price fluctuations and will continue to adapt its productions levels accordingly. At Mogale, part of the FerroAlloys division, the decision has been taken to put majority of furnaces on care and maintenance for the first half of the year. This decision will be reviewed during the second quarter. The market for speciality alloy products is estimated to be more stable, however, uncertainty remains in 2012 too. In light of this and until the market for its products improve, the Group expects its financial performance for the full year 2012 to be comparable to 2011.
Fluctuations of exchange rates between the Euro, the South African Rand, the Turkish Lira and the US Dollar can significantly impact the Company's financial performance.
On 18 April 2012 Ruukki announced that it has signed an agreement with Kermas Limited ("Kermas") for the acquisition of Elektrowerk-Weisweiler GmbH ("EWW"). In addition Ruukki and Kermas have agreed to terminate the profit and loss sharing arrangement in relation to Türk Maadin Sirketi A.S and RCS Limited ("RCS") and certain other arrangements which were entered into in October 2008. EWW is a critical component in Ruukki's Speciality Alloys segment and currently operates under a long-term tolling agreement between EWW and RCS. Ruukki has incorporated EWW's financial statements in its consolidated financial statements since November 2008. The transaction constitutes a related party transaction and is conditional, inter alia, on the approval of the Company's independent shareholders at the Annual General Meeting to be held on 10 May 2012.
| Closed period | Date | |
|---|---|---|
| Annual General Meeting | 10 May 2012 | |
| Q2 Interim Report 2012 | 17.7.-16.8.2012 | 16 August 2012 |
| Q3 Interim Report 2012 | 8.10.-7.11.2012 | 7 November 2012 |
| Q1/12 3 months EUR '000 |
Speciality Alloys |
Ferro Alloys |
Unallocated items |
Eliminations | Continuing operations total |
|---|---|---|---|---|---|
| Revenue | 21,224 | 25,506 | 209 | -200 | 46,739 |
| EBITDA | 3,161 | 1,380 | -1,752 | -1 | 2,789 |
| EBIT | -1,273 | -1,088 | -1,762 | -1 | -4,123 |
| Segment's assets | 171,289 | 218,902 | 47,346 | -17,472 | 420,065 |
| Segment's liabilities | 54,868 | 115,775 | 27,953 | -18,529 | 180,067 |
| Q1/11 3 months EUR '000 |
Speciality Alloys |
Ferro Alloys |
Unallocated items |
Eliminations | Continuing operations total |
|---|---|---|---|---|---|
| Revenue | 20,172 | 14,626 | 0 | 0 | 34,798 |
| EBITDA | 5,048 | 48 | -1,670 | 31 | 3,457 |
| EBIT | 652 | -2,565 | -1,685 | 31 | -3,566 |
| Segment's assets | 184,491 | 231,325 | 93,770 | -12,298 | 497,288 |
| Segment's liabilities | 71,883 | 129,383 | 54,957 | -6,427 | 249,796 |
| FY/11 12 months EUR '000 |
Speciality Alloys |
Ferro Alloys |
Unallocated items |
Eliminations | Continuing operations total |
|---|---|---|---|---|---|
| Revenue | 83,637 | 75,448 | 698 | -696 | 159,087 |
| EBITDA | 13,811 | -3,886 | -8,529 | 7 | 1,404 |
| EBIT | -3,837 | -14,038 | -8,596 | 7 | -26,464 |
| Segment's assets | 171,511 | 219,205 | 49,226 | -18,135 | 421,807 |
| Segment's liabilities | 56,168 | 116,760 | 25,501 | -16,779 | 181,649 |
| EUR '000 | Q1/12 | Q1/11 | FY/11 |
|---|---|---|---|
| Continuing operations | |||
| Revenue | 46,739 | 34,798 | 159,087 |
| Other operating income | 3,736 | 339 | 1,173 |
| Operating expenses | -47,690 | -31,902 | -159,128 |
| Depreciation and amortisation | -6,912 | -7,023 | -27,853 |
| Impairment | 0 | 0 | -15 |
| Items related to associates (core) | 3 | 221 | 272 |
| Operating profit | -4,123 | -3,566 | -26,464 |
| Financial income and expense | 1,549 | -521 | 830 |
| Items related to associates (non-core) | 0 | 196 | 196 |
| Profit before tax | -2,574 | -3,891 | -25,439 |
| Income tax | 504 | 780 | 7,081 |
| Profit for the period from continuing operations |
-2,070 | -3,111 | -18,358 |
| Discontinued operations | |||
| Profit for the period from | |||
| discontinued operations | 0 | 42,987 | 41,086 |
| Profit for the period | -2,070 | 39,876 | 22,729 |
| Profit attributable to: | |||
| Owners of the parent | -1,792 | 39,732 | 23,664 |
| Non-controlling interests | -278 | 144 | -935 |
| Total | -2,070 | 39,876 | 22,729 |
| basic (EUR), Group total | -0.01 | 0.17 | 0.10 |
|---|---|---|---|
| diluted (EUR), Group total | -0.01 | 0.15 | 0.09 |
| basic (EUR), continuing operations | -0.01 | -0.01 | -0.07 |
| diluted (EUR), continuing operations | -0.01 | -0.01 | -0.07 |
| EUR '000 | Q1/12 | Q1/11 | FY/11 |
|---|---|---|---|
| Profit for the period | -2,070 | 39,876 | 22,729 |
| Other comprehensive income | |||
| Exchange differences on | |||
| translating foreign operations | 2,514 | -8,619 | -13,785 |
| Income tax relating to other | |||
| comprehensive income | -791 | 5,059 | 6,640 |
| Other comprehensive income, net of tax | 1,723 | -3,561 | -7,145 |
| Total comprehensive income for the period | -347 | 36,315 | 15,583 |
| Total comprehensive income attributable to: | |||
| Owners of the parent | -354 | 37,357 | 18,738 |
| Non-controlling interests | 7 | -1,042 | -3,154 |
| EUR '000 | 31.3.2012 | 31.3.2011 | 31.12.2011 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Investments and intangible assets | |||
| Goodwill | 97,761 | 122,845 | 96,269 |
| Investments in associates | 71 | 274 | 77 |
| Other intangible assets | 62,011 | 84,949 | 65,215 |
| Investments and intangible assets total | 159,843 | 208,068 | 161,561 |
| Property, plant and equipment | 72,898 | 79,688 | 71,902 |
| Other non-current assets | 47,165 | 39,189 | 47,840 |
| Non-current assets total | 279,906 | 326,945 | 281,303 |
| Current assets | |||
| Inventories | 35,292 | 49,576 | 44,011 |
| Receivables | 39,747 | 31,544 | 30,616 |
| Cash and cash equivalents | 65,120 | 29,222 | 65,878 |
| Bank deposits | 0 | 60,000 | 0 |
| Liquid funds total | 65,120 | 89,222 | 65,878 |
| Current assets total | 140,159 | 170,342 | 140,504 |
| Assets held for sale | 0 | 58,268 | 0 |
| Cash and cash equivalents held for sale | 0 | 775 | 0 |
| Assets held for sale total | 0 | 59,043 | 0 |
| Total assets | 420,065 | 556,331 | 421,807 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to owners of the parent | |||
|---|---|---|---|
| Share capital | 23,642 | 23,642 | 23,642 |
| Share premium reserve | 25,740 | 25,740 | 25,740 |
| Revaluation reserve | 0 | 2,193 | 0 |
| Paid-up unrestricted equity reserve | 245,128 | 250,849 | 245,128 |
| Translation reserves | 10,433 | 11,546 | 8,995 |
| Retained earnings | -79,300 | -64,747 | -77,695 |
| Equity attributable to owners of the parent | 225,643 | 249,224 | 225,811 |
| Non-controlling interests | 14,355 | 22,924 | 14,348 |
| Total equity | 239,998 | 272,147 | 240,158 |
| Liabilities | |||
| Non-current liabilities | 149,870 | 199,321 | 150,326 |
| Current liabilities | |||
| Advances received | 543 | 0 | 550 |
| Other current liabilities | 29,653 | 50,476 | 30,773 |
| Current liabilities total | 30,196 | 50,476 | 31,323 |
| Liabilities classified as held for sale | 0 | 34,387 | 0 |
| Total liabilities | 180,067 | 284,184 | 181,649 |
| Total equity and liabilities | 420,065 | 556,331 | 421,807 |
| EUR '000 | 31.3.2012 | 31.3.2011 | 31.12.2011 |
|---|---|---|---|
| Liquid funds | 65,120 | 89,222 | 65,878 |
| Interest-bearing receivables | |||
| Current | 856 | 2,125 | 1,124 |
| Non-current | 33,908 | 26,550 | 33,896 |
| Interest-bearing receivables | 34,764 | 28,675 | 35,021 |
| Interest-bearing liabilities | |||
| Current | 1,174 | 4,320 | 1,109 |
| Non-current | 84,370 | 95,090 | 84,334 |
| Interest-bearing liabilities | 85,544 | 99,410 | 85,443 |
| NET TOTAL | 14,340 | 18,487 | 15,455 |
Excluding interest-bearing assets and liabilities classified as held for sale
| EUR '000 | Property, plant and equipment |
Intangible assets |
|---|---|---|
| Acquisition cost 1.1.2012 | 126,721 | 300,481 |
| Additions | 1,215 | 918 |
| Disposals | -87 | -2 |
| Reclass between items | -3 | 0 |
| Effect of movements in exchange rates | 597 | -9,767 |
|---|---|---|
| Acquisition cost 31.3.2012 | 128,443 | 291,631 |
| Acquisition cost 1.1.2011 | 132,715 | 354,221 |
| Additions | 4,231 | 420 |
| Disposals * | -524 | -21,574 |
| Transfer to assets held for sale | -353 | 1 |
| Reclass between items | 5,940 | -1,076 |
| Effect of movements in exchange rates | -15,288 | -31,511 |
| Acquisition cost 31.12.2011 | 126,721 | 300,481 |
* Including changes in earn-out liabilities
| Q1/12 | Q1/11 | FY/11 |
|---|---|---|
| -2,070 | 39,876 | 22,729 |
| 3,397 | -33,938 | -21,584 |
| 351 | -2,571 | -11,799 |
| -40 | 390 | 8,241 |
| -2,412 | ||
| -500 | ||
| -1,598 | ||
| 0 | 72,068 | 83,276 |
| -4,147 | ||
| -7,122 | ||
| -77 | ||
| - 1,289 | 68,633 | 69,832 |
| 0 | 0 | -9,617 |
| 0 | 0 | -84 |
| 53 | 3,323 | 10,004 |
| -20,148 | ||
| -339 | ||
| -1,355 | -1,437 | -20,184 |
| 47,236 | ||
| 1,638 0 0 -2,067 777 0 -1,407 0 -1,006 |
3,758 -500 -1,624 -711 -442 -157 -3,568 -1,192 70,953 |
A = Share capital
B = Share premium reserve
| EUR '000 | A | B | C | D | E | F | G | H | I |
|---|---|---|---|---|---|---|---|---|---|
| Equity at 31.12.2010 | 23 642 | 25 740 | 2 193 | 250 849 | 13 921 | -104 772 | 211 574 | 24 781 | 236 355 |
| Dividend distribution | 0 | -550 | -550 | ||||||
| Total comprehensive | -2 375 | 39 732 | 37 357 | -1 042 | 36 315 | ||||
| income 1-3/2011 Share-based payments |
293 | 293 | 293 | ||||||
| Acquisitions and | 0 | -266 | -266 | ||||||
| disposals of subsidiaries | |||||||||
| Equity at 31.3.2011 | 23 642 | 25 740 | 2 193 | 250 849 | 11 546 | -64 747 | 249 224 | 22 924 | 272 147 |
| Dividend distribution | -81 | -81 | |||||||
| Total comprehensive | -2 551 | -16 068 | -18 619 | -2 113 | -20 732 | ||||
| income 4-12/2011 | |||||||||
| Share-based payments | 928 | 928 | 928 | ||||||
| Share subscriptions based on option rights |
3 895 | 3 895 | 3 895 | ||||||
| Capital redemption | -9 617 | -9 617 | -9 617 | ||||||
| Acquisitions | -2 193 | 2 193 | 0 | -6 383 | -6 383 | ||||
| anddisposals of subsidiaries |
|||||||||
| Equity at 31.12.2011 | 23 642 | 25 740 | 0 | 245 128 | 8 995 | -77 695 | 225 811 | 14 348 | 240 158 |
| Total comprehensive | 1 438 | -1 792 | -354 | 7 | -347 | ||||
| income 1-3/2012 | |||||||||
| Share-based payments | 186 | 186 | 186 | ||||||
| Equity at 31.3.2012 | 23 642 | 25 740 | 0 | 245 128 | 10 433 | -79 300 | 225 643 | 14 355 | 239 998 |
During the review period the Group sold goods and rendered services to related parties and joint ventures worth EUR 0.2 (2.1) million. The Group also made raw material purchases from a joint venture amounting to EUR 0.4 (0.2) million and accrued interest on loans from a related party amounting to EUR 0.1 (0.2) million. Interest income from a joint venture company totalled EUR 0.3 (0.1) million during the review period.
On 31 March the Group had loans and other receivables from joint venture companies totalling EUR 20.7 (12.1) million and loan receivables from a related party amounting to EUR 10.0 (10.0) million. The Group's loans from a related party amounted to EUR 0.0 (11.9) million and the Group's joint venture's loans from a related party to EUR 11.0 (10.5) million. The Group's trade and other payables to joint venture companies totalled EUR 1.2 (0.1) million. The Group also had an acquisition related earn-out liability to a related party amounting to EUR 9.7 (35.0) million.
| Q1/12 | Q1/11 | FY/11 | |
|---|---|---|---|
| Return on equity, % p.a. | -3.4% | 62.7% | 9.5% |
| Return on capital employed, % p.a. | -0.7% | 44.2% | 7.0% |
| Equity ratio, % | 57.2% | 48.9% | 57.0% |
| Gearing, % | 8.5% | 11.3% | 8.1% |
| Personnel at the end of the period | 782 | 770 | 797 |
The balance sheet date rate is based on exchange rate published by the European Central Bank for the closing date. The average exchange rate is calculated as an average of daily rates from the European Central Bank during the year.
The key exchange rates applied in the accounts:
Average rates
| Q1/12 | Q1/11 | FY/11 | |
|---|---|---|---|
| TRY | 2.35557 | 2.1591 | 2.3378 |
| USD | 1.31082 | 1.3680 | 1.3920 |
| ZAR | 10.17296 | 9.5875 | 10.097 |
Balance sheet rates
| 31.3.2012 | 31.3.2011 | 31.12.2011 | |
|---|---|---|---|
| TRY | 2.3774 | 2.1947 | 2.4432 |
| USD | 1.3356 | 1.4207 | 1.2939 |
| ZAR | 10.2322 | 9.6507 | 10.4830 |
Financial ratios and indicators have been calculated with the same principles as applied in the 2011 financial statements. These principles are presented below.
Return on equity, % = Profit for the period / Total equity (average for the period) * 100
Return on capital employed, % = (Profit before taxes + financing expenses) / (Total assets - interest-free liabilities) average * 100
Equity ratio, % = Total equity / (Total assets - prepayments received) * 100
Gearing, % = (Interest-bearing debt - liquid funds) / Total equity * 100
Net interest-bearing debt = Interest-bearing debt - liquid funds
Earnings per share, basic, EUR = Profit attributable to owners of the parent company / Average number of shares during the period
Earnings per share, diluted, EUR = Profit attributable to owners of the parent company / Average number of shares during the period, diluted
Operating profit (EBIT) = Operating profit is the net of revenue plus other operating income, plus gain/loss on finished goods inventory change, minus employee benefits expense, minus depreciation, amortisation and impairment and minus other operating expense. Foreign exchange gains or losses are included in operating profit when generated from ordinary activities. Exchange gains or losses related to financing activities are recognised as financial income or expense.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) = Operating profit + depreciation + amortisation + impairment losses
This Interim Report is prepared in accordance with the IAS 34 standard. Ruukki Group Plc applies the same accounting and IFRS principles as in the 2011 financial statements.
The preparation of the Interim Report in accordance with IFRS requires management to make estimates and assumptions that affect the valuation of the reported assets and liabilities and other information, such as contingent liabilities and the recognition of income and expenses in the income statement. Although the estimates are based on the management's best knowledge of current events and actions, actual results may differ from the estimates.
The figures in the tables have been rounded off, which must be considered when calculating totals. Average exchange rates for the period have been used for income statement conversions, and periodend exchange rates for balance sheet.
The Interim Report data are unaudited.
Share-related key figures
| Q1/12 | Q1/11 | FY/11 | ||
|---|---|---|---|---|
| Share price development in London |
||||
| Stock Exchange | ||||
| Average share price* | EUR | 0.93 | 1.80 | 1.50 |
| GBP | 0.78 | 1.54 | 1.30 | |
| Lowest share price* | EUR | 0.89 | 1.79 | 0.96 |
| GBP | 0.74 | 1.53 | 0.83 | |
| Highest share price* | EUR | 1.03 | 1.85 | 1.84 |
| GBP | 0.86 | 1.58 | 1.60 | |
| Share price at the end of | ||||
| the period** | EUR | 0.91 | 1.73 | 1.05 |
| GBP | 0.76 | 1.53 | 0.88 | |
| Market capitalisation at | EUR | |||
| the end of the period** | million | 226.4 | 429.7 | 261.7 |
| GBP | ||||
| million | 188.8 | 379.8 | 218.6 | |
| Share trading development |
||||
| thousand | ||||
| Share turnover | shares | 13 | 82 | 151 |
| EUR | ||||
| Share turnover | thousand | 12 | 148 | 227 |
| GBP | ||||
| Share turnover | thousand | 10 | 127 | 197 |
| Share turnover | % | 0.0% | 0.0% | 0.1% |
| Share price | ||||
| development in | ||||
| NASDAQ OMX Helsinki | ||||
| Average share price | EUR | 0.94 | 1.87 | 1.33 |
| Lowest share price | EUR | 0.86 | 1.69 | 0.81 |
| Highest share price | EUR | 1.02 | 2.03 | 2.03 |
| Share price at the end of | ||||
| the period Market capitalisation at |
EUR EUR |
0.90 | 1.81 | 0.89 |
| the end of the period | million | 223.6 | 449.3 | 221.1 |
| Share trading | ||||
| development | ||||
| thousand | ||||
| Share turnover | shares | 1,907 | 2,084 | 11,344 |
| EUR | ||||
| Share turnover | thousand | 1,801 | 3,895 | 15,138 |
| Share turnover | % | 0.8% | 0.8% | 4.6% |
* Share prices have been calculated on the average EUR/GBP exchange rate published by Bank of
** Share price and market capitalisation at the end of the period have been calculated on the EUR/GBP exchange rate published by Bank of Finland at the end of the period.
Formulas for share-related key indicators
Average share price = Total value of shares traded in currency / Number of shares traded during the period
Market capitalisation, million = Number of shares * Share price at the end of the period
This report contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which are within the Company's control or can be predicted by the Company.
Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking statements. Save as required by law (including the Finnish Securities Markets Acts (495/1989), as amended, or by the Listing Rules or the Disclosure and Transparency Rules of the UK Financial Services Authority), the Company undertakes no obligation to update any forward-looking statements in this report that may occur due to any changes in the Directors' expectations or to reflect events or circumstances after the date of this report.
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