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Rautaruukki Corporation Annual Report 2009 Annual Report Corporation Rautaruukki Contents Ruukki is a multi-skilled actor More Ruukki as a company in the steel and engineering 1 Ruukki in brief 2 CEO’s review industries. 4 2009 in brief with 6 Business environment 10 Strategy 18 Ruukki Construction The company’s strategic intent 20 Ruukki Engineering is to be the solutions supplier metals 22 Ruukki Metals 24 Market area of choice to construction Rautaruukki Corporation Annual Report 2009 26 References 30 Research and development and engineering industry Corporate responsibility report customers. 34 Ruukki in society 38 Financial responsibility 42 Social responsibility 50 Environmental responsibility Governance 58 Corporate governance 66 Management remuneration 68 Board of Directors 70 Corporate Management Board 72 Risk management 77 Shares and shareholders Financial statements 2009 82 Report of the Board of Directors Rautaruukki Corporation 89 Consolidated fi nancial statements Suolakivenkatu 1 93 Notes to the consolidated fi nancial statements PO Box 138 134 Financial indicators FI-00811 Helsinki 136 Parent company’s fi nancial statements Finland 140 Board of Directors’ proposal for the disposal of distributable funds www.ruukki.com 141 Auditors’ report 142 Statement of the Supervisory Board 143 Figures by quarter 144 Information for shareholders Rautaruukki’s Annual Report 2009 is published in English and Finnish. The report includes the Corporate responsibility report. Copies of the Annual Report may be ordered by emailing [email protected] and online at www.ruukki.com, where the report may also be downloaded in pdf format. Rautaruukki Corporation Annual Report 2009 Annual Report Corporation Rautaruukki Contents Ruukki is a multi-skilled actor More Ruukki as a company in the steel and engineering 1 Ruukki in brief 2 CEO’s review industries. 4 2009 in brief with 6 Business environment 10 Strategy 18 Ruukki Construction The company’s strategic intent 20 Ruukki Engineering is to be the solutions supplier metals 22 Ruukki Metals 24 Market area of choice to construction Rautaruukki Corporation Annual Report 2009 26 References 30 Research and development and engineering industry Corporate responsibility report customers. 34 Ruukki in society 38 Financial responsibility 42 Social responsibility 50 Environmental responsibility Governance 58 Corporate governance 66 Management remuneration 68 Board of Directors 70 Corporate Management Board 72 Risk management 77 Shares and shareholders Financial statements 2009 82 Report of the Board of Directors Rautaruukki Corporation 89 Consolidated fi nancial statements Suolakivenkatu 1 93 Notes to the consolidated fi nancial statements PO Box 138 134 Financial indicators FI-00811 Helsinki 136 Parent company’s fi nancial statements Finland 140 Board of Directors’ proposal for the disposal of distributable funds www.ruukki.com 141 Auditors’ report 142 Statement of the Supervisory Board 143 Figures by quarter 144 Information for shareholders Rautaruukki’s Annual Report 2009 is published in English and Finnish. The report includes the Corporate responsibility report. Copies of the Annual Report may be ordered by emailing [email protected] and online at www.ruukki.com, where the report may also be downloaded in pdf format. Financial reports Contact Business areas in 2010 information Annual Report 2009 Financial statements release 2009: Suolakivenkatu 1 The persons featuring in the annual Wednesday 3 February 2010 PO Box 138, FI-00811 Helsinki, Finland report are Ruukki employees. Ruukki Construction, Ruukki Engineering and Ruukki Metals Breakdown of net sales 2009 Share of consolidated net sales 2009 Key figures Annual report 2009: online, week 9 Tel. +358 20 5911 Interim reports: Fax +358 20 592 9088 Spread photos by lkka Ärrälä, Q1/2010: Thursday 22 April 2010 Business ID 0113276-9 other photos from Ruukki’s image Efficient, time-saving steel construction 2009 2008 2007 Q2/2010: Friday 16 July 2010 VAT No. FI 01132769 bank and partners. solutions for commercial & industrial Russia and Ukraine Baltic states construction, as well as for infrastructure 18% 6% Net sales, €m 589 1 067 1 042 Q3/2010: Friday 22 October 2010 Registered office Helsinki foundation and transport infrastructure Operating profit, €m (1 -49 132 163 Edited and translated by: Ruukki projects. Operating profit, as % of net sales (1 -8 12 16 Silent period Chief Financial Officer Layout: Incognito Products and services Central Eastern Other Personnel at year-end 4 235 5 039 5 278 Since the start of 2010, Ruukki has Mikko Hietanen Printed by: Erweko Painotuote Oy Europe countries • Building frames, wall and roofing products 20% 2% applied the principle of a 21-day silent Tel. +358 20 592 9030 Papers: Galerie Art Silk and Dito • Integrated systems for single- and multi- period (previously 14 days) before the [email protected] storey construction Main markets: • Bridges, traffic noise barriers and highway disclosure of results. During this period, Nordic countries, Baltic states, Central Eastern Europe, Russia and Ukraine. guard rails for infrastructure construction, the company does not meet capital Senior Vice President, Corporate piles, retaining wall structures and market representatives, comment on the Communications foundations for harbour construction Other Nordic 30% Customers: • Roofing products quarter concerned or report on matters and Investor Relations Ruukki countries Finland Developers, designers and builders of commercial, industrial and office premises, 22% 31% logistics and sports complexes, and infrastructure services, as well as roofing suppliers. relating to the company’s performance Anne Pirilä Construction for the report period. Tel. +358 20 592 8802 [email protected] Fully-assembled systems and components Lifting, Handling The annual report, interim reports and Paper and Transportation 2009 2008 2007 to the engineering industry. releases are published in English and Vice President, Energy and Environment & Wood equipment industry Net sales, €m 312 765 667 4% 38% Finnish and may be subscribed to via Toni Hemminki Products and services Operating profit, €m (1 -16 128 103 • Cabins, booms, masts and frames for email at www.ruukki.com. Printed Tel. +358 20 592 9217 mobile machines Operating profit, as % of net sales (1 -5 17 15 copies of the annual report may also be [email protected] • Telescopic booms, frames and parts for Offshore Personnel at year-end 1 770 2 702 3 044 mobile cranes 5% ordered by telephoning • Equipment for the energy industry such +358 20 592 9260 or by emailing Investor Relations as windmill components and oil sumps, common base frames and base frames Main markets: [email protected]. Director, Investor Relations • Medium and heavy welded structures Serves globally-operating European companies. Minna Karttunen 16% Share information Tel. +358 20 592 9070 Energy equipment Customers: Listing: Nasdaq OMX Helsinki [email protected] Shipbuilding industry Ruukki 19% 35% Leading companies in the lifting, handling and transportation equipment industry, Date of listing: 20 October 1989 Engineering energy industry, marine & offshore industry and paper & wood industry. Trading currency: euro [email protected] Sector: Materials Segment: Large Cap Requests for meetings: Steel products and associated Western Europe and 2009 2008 2007 prefabrication, logistics and storage other countries Trading ticker: RTRKS Management Assistant services. Responsible for the company’s 26% Net sales, €m (2 1 050 1 997 2 035 ISIN code: FI0009003552 Pirkko Vähä-Touru, steel production and steel service Operating profit, €m (1 -228 350 395 Trading lot: 1 share Tel. +358 20 592 9025 centres. Central Operating profit, as % of net sales (1 -22 18 19 Reuters ticker: RTRKS.HE [email protected] Eastern Products and services Europe, Russia Personnel at year-end 5 226 6 080 5 876 Bloomberg ticker: RTRKS FH • Special steel products and Ukraine Finland • Hot- and cold-rolled steels 9% 30% • Metal- and colour-coated steels, tubes and profiles Main markets: • Stainless steel and aluminium sold Nordic countries, Baltic states and Russia, and selected customers for special steel as trading products products in Western Europe. • Product-related prefabrication, Other Nordic 54% logistics and storage services countries Customers: Ruukki 34% Metals Transportation equipment, construction, engineering and electronics industries. 1) Comparable, excluding non-recurring items. 2) Comparable Rautaruukki Corporation Net sales by region 2009 Key figures Other countries Finland €m 2009 2008 2007 6% 30% Net sales 1 950 3 851 3 876 Net sales, comparable 1 950 3 829 3 744 Rest of Europe Operating profit -323 568 637 14% Operating profit, comparable* -306 584 635 Operating profit, as % of net sales -16.6 14.7 16.4 Central Operating profit, as % of net sales, comparable* -15.7 15.3 17.0 Eastern Europe, Russia and Other Nordic Personnel, average 12 664 14 953 14 326 Ukraine countries 19% 31% * Excluding non-recurring items The figures in the annual report have been rounded. This means that the sum of the individual figures may deviate from the total shown or percentages may not add up to 100. Unless otherwise stated, the figures in brackets refer to the same period a year earlier. Ruukki supplies metal-based components, Operations are structured systems and integrated systems to construction into three business areas: and the engineering industry. Ruukki Construction The company has a wide range Ruukki