Quarterly Report • Mar 31, 2013
Quarterly Report
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07:00 London, 09:00 Helsinki, 8 May 2013 - Ruukki Group Plc ("Ruukki" or "the Company") (LSE: RKKI, OMX: RUG1V) Interim Report
| KEY FIGURES (EUR million) | Q1/13 | Q1/12 | Change | FY2012 |
|---|---|---|---|---|
| Revenue | 31.6 | 45.6 | -30.6% | 128.6 |
| EBITDA | 4.2 | 3.1 | 32.6% | 9.2 |
| EBITDA margin | 13.2% | 6.9% | 7.2% | |
| EBIT | -2.1 | -3.6 | -16.8 | |
| EBIT margin | -6.5% | -7.9% | -13.0% | |
| Earnings before taxes | -2.7 | -2.1 | -19.6 | |
| Earnings margin | -8.7% | -4.7% | -15.2% | |
| Profit | 0.0 | -2.1 | -16.6 | |
| Earnings per share, basic, EUR | 0.00 | -0.01 | -0.06 |
"I am pleased to report a significant improvement in the first quarter results compared to the first quarter of 2012. Despite the lower sales and a difficult market, we were able to improve profitability and generate a positive cash flow. This was achieved by focusing on value added speciality products, lowering cost base and on-going improvements across all our operations.
Regardless of the sales being lower in the first quarter compared to the equivalent period last year, mainly due to participation in Eskom's electricity buyback program in South Africa, but also due to our decision to remain disciplined and not compromise our sale prices or margins in a very weak market, we have improved results.
The ferrochrome market remains difficult to predict and unfortunately we cannot depend on a tailwind this year, regardless of some positive signals. Being aware of all the uncertainties ahead, we agreed to significantly restructure our organisation and the way we work. Our focus is, and has to remain, on generating cash and increasing profits, independently of market movements.
In the longer term I firmly believe that ferrochrome, particularly the speciality and super alloys segment, will again be in high demand. At the same time we are not waiting for market to change, but are continuously evaluating different initiatives that could strengthen our position and provide new growth opportunities."
The global economic outlook continues to be uncertain in 2013 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 production levels accordingly. At Mogale Alloys, part of the FerroAlloys division, the decision has been taken to participate in Eskom's electricity buyback program. The Company is also continuing its cost saving initiatives and restructuring of functions and this is expected to bring material costs savings in 2013 compared to previous financial year. In light of this the Group expects its financial performance for the full year 2013 to significantly improve compared to 2012.
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 Q1/2013 interim report enclosed to this stock exchange release. The Interim Report is attached to this release and is also available on the Company's website at www.ruukkigroup.com.
RUUKKI GROUP PLC Danko Koncar CEO
For additional information, please contact:
Danko Koncar, CEO, +44 (0)20 7376 1175, [email protected]
Neil Elliot, +44 (0)20 7597 5970, [email protected] George Price, +44 (0)20 7597 5970, [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 corresponding comparable figures of 2012 are presented in brackets, unless otherwise explicitly stated.
Sales from processing:
| Tonnes | Q1/13 | Q1/12 | FY2012 |
|---|---|---|---|
| Processing, Speciality Alloys | 5,662 | 9,582 | 27,324 |
| Processing, FerroAlloys | 9,330 | 23,232 | 39,125 |
| Processing, Total | 14,993 | 32,814 | 66,449 |
The Group's sales from processing, which includes all the products produced at the Mogale Alloys and EWW processing plants, were 14,993 (Q1/2012: 32,814) tonnes, a decrease of 54.3% compared to the equivalent period in 2012, which was mainly attributable to the decision to participate in Eskom's electricity buyback program in South Africa but also the decision to remain disciplined and not to compromise the sales prices or margins in a weak market.
In 2012 China overtook South Africa as the biggest ferrochrome producer, with over 34% of the world's ferrochrome production. China has increased ferrochrome production with about 19%, when the whole world's ferrochrome production increased by 2%. In South Africa the lack of electricity has resulted in power cuts and sharp annual increases in power price, especially within the energy intensive mining and mineral industry. In 2012 and early 2013 the state power utility Eskom has been offering the South African mining and mineral industry power buy-back agreements where the smelters have been selling their contracted power back to Eskom.
The increased ferrochrome production in China and India has increased the demand for South African ore. The cut back in ferrochrome production in South Africa has had a positive impact on the ferrochrome price development in Europe, USA, and Japan, where the South African benchmark prices have increased from 110 USc/lb Cr (Q4/2012) to 112.5 USc/lb Cr (Q1/2013). This trend has continued into the beginning of Q2/2013, when the South African benchmark price increased to 127 USc/lb Cr in Europe and to 135 USc/lb Cr in Japan.
Ruukki sees further growth opportunities for its special grade ferrochrome products especially in the oil and gas industry, where the industry is increasing the offshore production where the operating conditions are extremely demanding and there is no alternative to corrosion resistant alloys. This trend is expected to increase and continue strongly. The aerospace industry is also renewing the aircraft fleets for more economical and modern aircrafts. Therefore Ruukki expects increasing demand for its speciality alloy products in the aerospace industry as well.
| EUR million | Q1/13 | Q1/12 | Change | FY2012 |
|---|---|---|---|---|
| Revenue | 31.6 | 45.6 | -30.6% | 128.6 |
| EBITDA | 4.2 | 3.1 | 32.6% | 9.2 |
| EBITDA margin | 13.2% | 6.9% | 7.2% | |
| EBIT | -2.1 | -3.6 | -16.8 | |
| EBIT margin | -6.5% | -7.9% | -13.0% | |
| Profit | 0.0 | -2.1 | -16.6 |
Revenue for the first quarter 2013 decreased by 30.6% to EUR 31.6 (45.6) million compared to the equivalent period in 2012. The decrease in revenue was mainly attributable to lower sales volumes and decreased sales prices as well as the decision to participate in Eskom electricity buyback program in South Africa. Even though revenue was down compared to equivalent period in 2012, the Company was still able to improve its EBITDA. Increase in EBITDA was mainly attributable to improved profitability margin in the FerroAlloys segment. EBITDA for the first quarter 2013 was EUR 4.2 (3.1) million.
Earnings per share was EUR 0.00 (-0.01).
The Group's liquidity, as at 31 March 2013, was EUR 17.5 (63.3) (31 December 2012: 14.2) million. Operating cash flow in the first quarter was EUR 8.1 (1.4) million. Ruukki's gearing at the end of the first quarter was -7.3% (4.7%) (31 December 2012: -5.4%). Net interest-bearing debt was EUR -15.2 (11.3) (31 December 2012: -11.4) million.
Total assets on 31 March were EUR 299.3 (406.5) (31 December 2012: 304.2) million. The equity ratio was 70.0% (59.1%) (31 December 2012: 69.2%).
Capital expenditure for the first quarter 2013 totalled EUR 3.8 (2.1) million which relates primarily to a purchase of a new prospecting mining right in South Africa.
At the end of the first quarter 2013, Ruukki had 765 (815) employees. The average number of employees during the first quarter of 2013 was 758 (816).
Number of employees by segment *:
| 31.3.2013 | 31.3.2012 | Change | 31.12.2012 | |
|---|---|---|---|---|
| Speciality Alloys | 421 | 440 | -4.3% | 423 |
| FerroAlloys | 336 | 367 | -8.4% | 335 |
| Other operations | 8 | 8 | 0.0% | 10 |
| Group total | 765 | 815 | -6.1% | 768 |
*Including personnel of joint ventures.
The Group's target 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 is on-going and is expected to be finalised during 2013.
In the first quarter of 2013 the results obtained in decreasing the lost time injury frequency were satisfactory with only minor incidents reported. In March Mogale Alloys reached the remarkable result of one year without any incident causing lost working time. Ruukki continues all efforts, including training, to further improve the safety performance.
Ruukki aims to conduct its business in a sustainable way and to preserve the environment by minimising the environmental impact of its operations. The Group has programmes on all sites to monitor and address its impact on the environment.
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 Ultra Low Carbon Ferrochrome. Excess chrome ore from TMS is exported.
Production:
| Tonnes | Q1/13 | Q1/12 | Change | FY2012 |
|---|---|---|---|---|
| Mining* | 16,249 | 19,255 | -15.6% | 72,098 |
| Processing | 6,975 | 6,740 | 3,5% | 25,129 |
* Including both chromite concentrate and lumpy ore production
Production decreased to 23,224 (25,995) tonnes for the first quarter 2013, compared to the equivalent period in 2012. This was due to a decision to reduce work shifts in order to better respond to reduced demand in the market.
| EUR million | Q1/13 | Q1/12 | Change | FY2012 |
|---|---|---|---|---|
| Revenue | 18.2 | 21.2 | -14.1% | 76.5 |
| EBITDA | 3.0 | 3.2 | -7.2% | 11.0 |
| EBITDA margin | 16.3% | 15.1% | 14.3% | |
| EBIT | -0.6 | -1.2 | -6.7 | |
| EBIT margin | -3.4% | -5.8% | -8.7% |
Revenue for the first quarter decreased by 14.1% to EUR 18.2 (21.2) million and EBITDA decreased by 7.2% to EUR 3.0 (3.2) million compared to the equivalent period in 2012. The decrease in revenue was due to lower sales volumes and decreased sales prices.
As at 31 March 2013, the business had 421 (440) employees.
The FerroAlloys business consists of the processing plant Mogale Alloys and the joint ventures Stellite mine and Mecklenburg mine in South Africa. The business produces chrome ore, Charge Chrome and Silico Manganese for sale to global markets.
Production:
| Tonnes | Q1/13 | Q1/12 | Change | FY2012 |
|---|---|---|---|---|
| Mining* | 53,707 | 55,234 | -2.8% | 140,346 |
| Processing | 4,620 | 9,938 | -53.5% | 50,522 |
* Including both chromite concentrate and lumpy ore production by the joint ventures
Production at the Stellite mine was down substantially compared to the equivalent period in 2012 in response to lower chrome ore prices and an oversupply in the global chrome ore market. Production at the Mecklenburg mine ramped up during the quarter and the opencast mine is now scheduled to be in full production of 30.000 ton ROM per month by the end of Q2 2013. Production at Mogale Alloys was impacted by the decision to participate in Eskom's electricity buyback program.
| EUR million | Q1/13 | Q1/12 | Change | FY2012 |
|---|---|---|---|---|
| Revenue* | 13.4 | 24.3 | -45.0% | 52.1 |
| EBITDA | 3.6 | 1.7 | 111.7% | 3.5 |
| EBITDA margin | 27.0% | 7.0% | 6.7% | |
| EBIT | 1.8 | -0.6 | -4.8 | |
| EBIT margin | 13.2% | -2.4% | -9.3% |
* Revenue of the joint ventures is not included in the Group's revenue
Revenue for the first quarter decreased to EUR 13.4 (24.3) million compared to the equivalent period in 2012, representing a decrease of 45.0%. The decrease in revenue was as a result of the decreased sales prices and the decision to participate in Eskom's electricity buyback program. EBITDA for the first quarter
increased to EUR 3.6 (1.7) million. Increase in EBITDA compared to the equivalent period in 2012 was driven by the compensation received for the participation in the electricity buyback program.
As at 31 March 2013, the business had 336 (367) employees.
For the first quarter of 2013, the EBITDA from unallocated items was EUR -2.4 (-1.8) million including a EUR 1.0 (0.2) million non-cash expense for the share-based payments.
Further to the announcements of 11 October 2012 and 25 October 2012, Ruukki Group Plc announced on 18 March 2013 that South African Reserve Bank approval has been received in relation to the issue of shares to the Vendors of Mogale Alloys. Ruukki will publish a separate release regarding the share issue in due course.
Ruukki announced on 30 April 2013 that it has entered into a settlement agreement with Rautaruukki Oyj ("Rautaruukki") in relation to the dispute regarding the Company's and Rautaruukki's right to use and register trademarks and company names containing the word 'ruukki'. Consequently, the Company will change its name.
According to the settlement agreement, the Company and its subsidiaries are required to change their names to ones that do not contain the word Ruukki within six months (the "Transition Period"). Rautaruukki will compensate the Company in relation to the name change and both the Company and Rautaruukki will bear all of their own legal and other costs incurred in connection with the dispute. After the Transition Period, Rautaruukki and the Company will withdraw all claims and other actions that they have filed against each other and the Company will assign Rautaruukki all rights and trademarks in relation to the 'Ruukki' name.
Ruukki announced on 15 January 2013 that the Company's management will be reorganised to be more appropriately aligned to the size of the Company's current operations and the prevailing market conditions. The Company will also undertake a review of its cost base with a view to identifying other restructuring opportunities including larger structural and organisational developments.
As part of the restructuring both the Company's Board of Directors and executive management team was materially downsized. The following members of the Board of Directors have left their positions on 11 February 2013: Dr. Chris Pointon, Mr. Paul Everard, Mr. Barry Rourke and Mr. Thomas Hoyer. The Executive Management of Ruukki was reorganised as follows: Mr. Thomas Hoyer CEO; Mr. Markus Kivimäki, General Manager: Corporate Affairs; and Mr. Kalle Lehtonen, General Manager: Finance have left their positions.
Ruukki's Extraordinary General Meeting ("EGM") was held on 11 February 2013. The EGM decided that the number of members of the Board of Directors shall be six and Mr Michael Lillja (Finnish citizen), Mr Markku Kankaala (Finnish citizen), Dr Danko Koncar (Croatian citizen), Dr Jelena Manojlovic (UK citizen), Dr Alfredo Parodi (Italian citizen) and Ms Bernice Smart (UK citizen) were elected for the next mandate that begins from the end of the General Meeting and ends in the end of the Annual General Meeting in 2013. The EGM resolved that the members of the Board will be paid EUR 3,000 per month. Those members of the Board of Directors that are executives of the Company are not entitled to receive any remuneration for the Board membership.
Following the EGM, the Board of Directors held an organisation meeting in which Dr Jelena Manojlovic was appointed Chairman and Ms Bernice Smart Deputy Chairman. Ms Bernice Smart (chairman), Mr Markku Kankaala and Dr Alfredo Parodi were elected as the members of the Audit Committee. Dr Jelena Manojlovic (chairman), Mr Markku Kankaala and Ms Bernice Smart were elected as the members of the Nomination and Remuneration Committee. The Board appointed Dr Danko Koncar as the Company's CEO.
Board of Directors has taken the decision to commence a project aiming into centralising all headquarter and other group support functions to Malta. By centralising functions into one location the Company expects significant benefits through increased efficiency and lower costs.
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 2013, the registered number of Ruukki Group Plc shares was 248,432,000 (248,432,000) and the share capital was EUR 23,642,049.60 (23,642,049.60).
On 31 March 2013, the Company had 4,297,437 (4,414,682) own shares in treasury, which was equivalent to 1.73% (1.78%) of the issued share capital. The total amount of shares outstanding, excluding the treasury shares held by the Company on 31 March 2013, was 244,134,563 (244,017,318).
At the beginning of the period under review, the Company's share price was EUR 0.45 on NASDAQ OMX Helsinki and GBP 0.35 on the London Stock Exchange. At the end of the review period, the share price was EUR 0.44 and GBP 0.35 respectively. During the first quarter of 2013 the Company's share price on NASDAQ OMX Helsinki ranged from EUR 0.39 to 0.48 per share and the market capitalisation, as at 31 March 2013, was EUR 109.3 (1.1.2013: 111.8) million. For the same period on the London Stock Exchange the share price range was GBP 0.33 to 0.40 per share and the market capitalisation was GBP 87.0 (1.1.2013: 87.0) million, as at 31 March 2013.
Based on the resolution at the AGM on 10 May 2012, the Board is authorised to buy-back up to a maximum of 15,000,000 of its own shares. This authorisation is valid until 10 November 2013. The Company did not carry out any share buy-backs during the first quarter of 2013.
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 2012 Financial Statements.
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 2013 and which could considerably impact the Company's revenue and financial performance in 2013.
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. 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 continues to be uncertain in 2013 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 production levels accordingly. At Mogale Alloys, part of the FerroAlloys division, the decision has been taken to participate in Eskom's electricity buyback program. The Company is also continuing its cost saving initiatives and restructuring of functions and this is expected to bring material costs savings in 2013 compared to previous financial year. In light of this the Group expects its financial performance for the full year 2013 to significantly improve compared to 2012.
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.
| Closed period | Reporting date | |
|---|---|---|
| Q2 Interim Report 2013 | 16.7.-15.8.2013 | 15 August 2013 |
| Q3 Interim Report 2013 | 9.10.-8.11.2013 | 8 November 2013 |
| Q1 2013 3 months |
Speciality Alloys |
Ferro Alloys |
Unallocated items |
Eliminations | Group total |
|---|---|---|---|---|---|
| EUR '000 | |||||
| Revenue | 18,226 | 13,381 | 85 | -76 | 31,617 |
| EBITDA | 2,966 | 3,619 | -2,414 | 0 | 4,171 |
| EBIT | -615 | 1,768 | -2,424 | 0 | -2,056 |
| Segment's assets | 145,930 | 119,554 | 92,696 | -58,838 | 299,342 |
| Segment's liabilities | 85,603 | 47,254 | 13,340 | -55,562 | 90,636 |
| Q1 2012 | Speciality | Ferro | Unallocated | Eliminations | Group |
|---|---|---|---|---|---|
| 3 months | Alloys | Alloys | items | total | |
| EUR '000 | |||||
| Revenue | 21,224 | 24,318 | 209 | -190 | 45,562 |
| EBITDA | 3,195 | 1,709 | -1,758 | -1 | 3,146 |
| EBIT | -1,238 | -574 | -1,768 | -1 | -3,581 |
| Segment's assets | 191,132 | 182,548 | 55,384 | -22,611 | 406,453 |
| Segment's liabilities | 62,830 | 99,616 | 27,955 | -23,667 | 166,734 |
| FY 2012 12 months |
Speciality Alloys |
Ferro Alloys |
Unallocated items |
Eliminations | Group total |
|---|---|---|---|---|---|
| EUR '000 | |||||
| Revenue | 76,456 | 52,050 | 912 | -836 | 128,582 |
| EBITDA | 10,954 | 3,504 | -5,259 | 29 | 9,229 |
| EBIT | -6,677 | -4,820 | -5,300 | 29 | -16,768 |
| Segment's assets | 172,655 | 125,222 | 21,308 | -14,945 | 304,240 |
| Segment's liabilities | 53,975 | 48,360 | 5,669 | -14,329 | 93,674 |
| EUR '000 | Q1/13 | Q1/12 | FY2012 |
|---|---|---|---|
| Revenue | 31,617 | 45,562 | 128,582 |
| Other operating income | 6,038 | 3,720 | 13,000 |
| Operating expenses | -31,665 | -44,680 | -127,620 |
| Depreciation and amortisation | -6,227 | -6,727 | -25,997 |
| Items related to associates (core) | 1 | 3 | 6 |
| Share of profit from joint ventures | -1,820 | -1,458 | -4,740 |
| Operating profit | -2,056 | -3,581 | -16,768 |
|---|---|---|---|
| Financial income and expense | -685 | 1,457 | -2,822 |
| Profit before tax | -2,741 | -2,124 | -19,590 |
| Income tax | 2,709 | 58 | 2,957 |
| Profit for the period | -32 | -2,066 | -16,633 |
| Profit attributable to: | |||
| Owners of the parent | -71 | -1,788 | -15,493 |
| Non-controlling interests | 39 | -278 | -1,141 |
| Total | -32 | -2,066 | -16,633 |
| basic (EUR), Group total | 0.00 | -0.01 | -0.06 |
| diluted (EUR), Group total | 0.00 | -0.01 | -0.06 |
| EUR '000 | Q1/13 | Q1/12 | FY2012 |
|---|---|---|---|
| Profit for the period | -32 | -2,066 | -16,633 |
| Other comprehensive income | |||
| Remeasurements of defined benefit pension | |||
| plans | 0 | 0 | -4,904 |
| Exchange differences on | |||
| translating foreign operations | -4,641 | 2,215 | -6,096 |
| Income tax relating to other | |||
| comprehensive income | 1,820 | -791 | 1,991 |
| Other comprehensive income, net of tax | -2,821 | 1,425 | -9,009 |
| Total comprehensive income for the period | -2,853 | -641 | -25,642 |
| Total comprehensive income attributable to: | |||
| Owners of the parent | -2,500 | -575 | -23,853 |
| Non-controlling interests | -352 | -67 | -1,789 |
| EUR '000 | 31.3.2013 | 31.3.2012 | 31.12.2012 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Investments and intangible assets | |||
| Goodwill | 66,601 | 97,761 | 68,990 |
| Investments in associates | 78 | 71 | 75 |
| Other intangible assets | 40,111 | 61,023 | 43,539 |
| Investments and intangible assets total | 106,789 | 158,854 | 112,603 |
| Property, plant and equipment | 39,317 | 44,737 | 41,108 |
| Other non-current assets | 57,047 | 65,106 | 55,343 |
| Non-current assets total | 203,154 | 268,697 | 209,054 |
| Current assets |
| Inventories | 45,177 | 33,952 | 50,455 |
|---|---|---|---|
| Receivables | 33,550 | 40,553 | 30,573 |
| Cash and cash equivalents | 17,461 | 63,251 | 14,158 |
| Current assets total | 96,188 | 137,756 | 95,186 |
| Total assets | 299,342 | 406,453 | 304,240 |
| 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 |
| Paid-up unrestricted equity reserve | 245,167 | 245,128 | 245,167 |
| Translation reserves | 5,615 | 12,715 | 8,045 |
| Retained earnings | -98,270 | -81,787 | -99,192 |
| Equity attributable to owners of the parent | 201,895 | 225,438 | 203,402 |
| Non-controlling interests | 6,812 | 14,281 | 7,163 |
| Total equity | 208,706 | 239,719 | 210,566 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax liabilities | 14 639 | 25,848 | 16,906 |
| Provisions | 12,469 | 14,123 | 12,893 |
| Share of joint ventures' losses | 13,347 | 7,652 | 11,805 |
| Pension liabilities | 15,766 | 10,824 | 15,815 |
| Financial liabilities | 111 | 79,043 | 114 |
| Non-current liabilities total | 56,332 | 137,489 | 57,533 |
| Current liabilities | |||
| Advances received | 1,051 | 543 | 0 |
| Other current liabilities | 33,253 | 28,702 | 36,141 |
| Current liabilities total | 34,303 | 29,245 | 36,141 |
| Total liabilities | 90,636 | 166,734 | 93,674 |
| Total equity and liabilities | 299,342 | 406,453 | 304,240 |
| EUR '000 | 31.3.2013 | 31.3.2012 | 31.12.2012 |
|---|---|---|---|
| Cash and cash equivalents | 17,461 | 63,251 | 14,158 |
| Interest-bearing receivables | |||
| Current | 5,467 | 856 | 6,005 |
| Non-current | 48,276 | 52,792 | 48,501 |
| Interest-bearing receivables | 53,742 | 53,648 | 54,507 |
| Interest-bearing liabilities | |||
| Current | 2,236 | 1,174 | 2,719 |
| Non-current | 62 | 73,396 | 64 |
| Interest-bearing liabilities | 2,298 | 74,570 | 2,782 |
| NET TOTAL | 68,906 | 42,329 | 65,882 |
| EUR '000 | Property, plant and equipment |
Intangible assets |
|---|---|---|
| Acquisition cost 1.1.2013 | 98,453 | 252,654 |
| Additions | 681 | 3,156 |
| Disposals | -51 | 0 |
| Reclass between items | 235 | -262 |
| Effect of movements in exchange rates | -1,899 | -7,810 |
| Acquisition cost 31.3.2013 | 97,418 | 247,738 |
| Acquisition cost 1.1.2012 | 98,014 | 299,162 |
| Additions | 3,965 | 8,824 |
| Disposals * | -594 | -30,255 |
| Reclass between items | 551 | 113 |
| Effect of movements in exchange rates | -3,483 | -25,191 |
| Acquisition cost 31.12.2012 | 98,453 | 252,654 |
* Including changes in earn-out liabilities and in contingent purchase considerations
| EUR '000 | Q1/13 | Q1/12 | FY2012 |
|---|---|---|---|
| Profit for the period | -32 | -2,066 | -16,633 |
| Adjustments to profit for the period | 6,267 | 5,143 | 29,570 |
| Changes in working capital | 1,863 | -1,630 | -6,003 |
| Discontinued operations | 0 | -40 | -743 |
| Net cash from operating activities | 8,099 | 1,407 | 6,191 |
| Acquisition of subsidiaries and associates, | |||
| net of cash acquired | 0 | 0 | -25,070 |
| Capital expenditure and other investing activities |
-3,721 | -2,037 | -4,512 |
| Proceeds from repayments of loans and | |||
| loans given | -208 | 937 | -3,919 |
| Net cash used in investing activities | -3,929 | -1,101 | -33,501 |
| Proceeds from borrowings | 0 | 53 | 59 |
| Repayment of borrowings, and other | |||
| financing activities | -692 | -1,254 | -22,294 |
| Net cash used in financing activities | -692 | -1,202 | -22,234 |
| Net increase in cash and cash equivalents | 3,478 | -896 | -49,545 |
A = Share capital
D = Translation reserve
H = Total equity
| EUR '000 | A | B | C | D | E | F | G | H |
|---|---|---|---|---|---|---|---|---|
| Equity at 31.12.2011 | 23 642 | 25 740 | 245 128 | 11 501 | -80 185 | 225 826 | 14 348 | 240 173 |
| Total comprehensive income 1-3/2012 |
1 214 | -1 788 | -575 | -67 | -641 | |||
| Share-based payments | 186 | 186 | 186 | |||||
| Equity at 31.3.2012 | 23 642 | 25 740 | 245 128 | 12 715 | -81 787 | 225 438 | 14 281 | 239 719 |
| Total comprehensive income 4-12/2012 |
-4 670 | -18 609 | -23 279 | -1 722 | -25 001 | |||
| Share-based payments | 39 | 680 | 719 | 0 | 719 | |||
| Acquisitions and disposals of subsidiaries |
524 | 524 | -5 396 | -4 871 | ||||
| Equity at 31.12.2012 | 23 642 | 25 740 | 245 167 | 8 045 | -99 192 | 203 402 | 7 163 | 210 565 |
| Total comprehensive income 1-3/2013 |
-2 430 | -71 | -2 500 | -352 | -2 852 | |||
| Share-based payments | 993 | 993 | 1 | 994 | ||||
| Equity at 31.3.2013 | 23 642 | 25 740 | 245 167 | 5 615 | -98 270 | 201 895 | 6 812 | 208 706 |
| EUR '000 | Q1/2013 | Q1/2012 | FY2012 |
|---|---|---|---|
| Sales to joint ventures | 16 | 337 | 564 |
| Sales to other related parties | 3 | 39 | 98 |
| Purchases from joint ventures | -840 | -779 | -4 342 |
| Financing income from joint ventures | 284 | 553 | 1,889 |
| Financing expense to other related parties | -26 | -26 | -104 |
| Loan receivables from joint ventures | 36,899 | 37,027 | 37,120 |
| Loan receivables from other related parties | 10,227 | 10,000 | 10,293 |
| Trade and other receivables from joint ventures | 5,010 | 5,234 | 4,821 |
| Trade and other receivables from other related | |||
| parties | 65 | 0 | 44 |
| Trade and other payables to joint ventures | 840 | 2,435 | 0 |
| Q1/2013 | Q1/2012 | FY2012 | |
|---|---|---|---|
| Return on equity, % p.a. | -0.1% | -3.4% | -7.4% |
| Return on capital employed, % p.a. | -0.2% | -0.4% | -4.5% |
| Equity ratio, % | 70.0% | 59.1% | 69.2% |
| Gearing, % | -7.3% | 4.7% | -5.4% |
| Personnel at the end of the period | 765 | 815 | 768 |
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
| Q1/2013 | Q1/2012 | FY2012 | |
|---|---|---|---|
| TRY | 2.3577 | 2.3556 | 2.3135 |
| USD | 1.3206 | 1.3108 | 1.2848 |
| ZAR | 11.8264 | 10.173 | 10.5511 |
Balance sheet rates
| 31.3.2013 | 31.3.2012 | 31.12.2012 | |
|---|---|---|---|
| TRY | 2.3212 | 2.3774 | 2.3551 |
| USD | 1.2805 | 1.3356 | 1.3194 |
| ZAR | 11.82 | 10.2322 | 11.1727 |
Financial ratios and indicators have been calculated with the same principles as applied in the 2012 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. The Company applies new or amended IFRS standards and interpretations from their effective date or after they have been endorsed for application within the EU. The revised standard, IAS 19 Employee Benefits, became effective from the beginning of the financial year 2013. The Company has also resolved to begin to apply the new standards IFRS 10, IFRS 11 and IFRS 12 as well as the revised standards IAS 27 and IAS 28 in the financial statements for the year 2013. The changes in the standards are applied retrospectively. Consequently, Ruukki has restated its financial information for 2012. The restated financial information has been published in a stock exchange release on 7 May 2013.
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 period-end exchange rates for balance sheet.
The Interim Report data are unaudited.
Share-related key figures
| Q1/13 | Q1/12 | FY2012 | ||
|---|---|---|---|---|
| Share price development in London Stock Exchange |
||||
| Average share price* | EUR | 0.43 | 0.93 | 0.54 |
| GBP | 0.37 | 0.78 | 0.43 | |
| Lowest share price* | EUR | 0.39 | 0.89 | 0.39 |
| GBP | 0.33 | 0.74 | 0.32 | |
| Highest share price* | EUR | 0.47 | 1.03 | 1.06 |
| GBP | 0.40 | 0.86 | 0.86 | |
| Share price at the end of the period** |
EUR | 0.41 | 0.91 | 0.43 |
| GBP | 0.35 | 0.76 | 0.35 | |
| Market capitalisation at | EUR | |||
| the end of the period** | million | 102.8 | 226.4 | 106.5 |
| GBP | ||||
| million | 87.0 | 188.8 | 87.0 | |
| Share trading development |
||||
| thousand | ||||
| Share turnover | shares | 39 | 13 | 288 |
| EUR | ||||
| Share turnover | thousand | 17 | 12 | 154 |
| GBP | ||||
| Share turnover | thousand | 14 | 10 | 125 |
| Share turnover | % | 0.0% | 0.0% | 0.1% |
| Share price development in NASDAQ OMX Helsinki |
||||
| Average share price | EUR | 0.45 | 0.94 | 0.67 |
| Lowest share price | EUR | 0.39 | 0.86 | 0.38 |
| Highest share price | EUR | 0.48 | 1.02 | 1.02 |
| Share price at the end of | ||||
| the period | EUR | 0.44 | 0.90 | 0.45 |
| Market capitalisation at | EUR | |||
| the end of the period | million | 109.3 | 223.6 | 111.8 |
| Share trading development |
||||
| thousand | ||||
| Share turnover | shares | 1,564 | 1,907 | 5,600 |
| EUR | ||||
| Share turnover | thousand | 707 | 1,801 | 3,773 |
| Share turnover | % | 0.6% | 0.8% | 2.3% |
* Share prices have been calculated on the average EUR/GBP exchange rate published by Bank of Finland.
** 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.
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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