Investor Presentation Investor � Presentation Thomas � Hoyer, � CEO www.ruukkigroup.com May � 2012 1
Introducing Ruukki Introducing � Ruukki • A vertically integrated ferroalloys producer Ruukki � Group � HQ from mine to customer OMX Helsinki: RUG1V • Supplies specialist products to steel & stainless steel industries LSE: RKKI • Diversified product mix: • Adaptable to customer requirements & general market demand • Offers protection in challenging markets Offers protection in challenging markets • Focused on shareholder value through profitability & growth FerroAlloys Speciality � Alloys Sales � & � Marketing Turkey � & � Germany South � Africa Malta Charge � Chrome Low � Carbon Silico � Manganese Ultralow � Carbon Global � Client � Base Stainless � Steel � Alloy Speciality � Low � Carbon Chrome � ore Chrome ore Chrome � ore Chrome ore 2
Track Record of Delivering Strategic Growth Track � Record � of � Delivering � Strategic � Growth • 2008: The European Speciality Alloys business was acquired • 2009: Expansion into South Africa 009 pa s o to Sout ca • 2010: Completed its South African value chain with acquisition of Chromex Mining • 2012: Acquisition of EWW, consolidating Speciality Alloys mine to customer chain Finland EWW G EWW, Germany TMS, Turkey RCS, Malta Mining Processing Sales & Sales & Marketing Stellite, South Africa Mogale, South Africa 3
Ruukki’s Strategy Ruukki s � Strategy Current Assets Current Assets Mid-term Growth Initiatives Mid term Growth Initiatives Long term Growth Themes Long-term Growth Themes • Improve performance • Investments • Grow reserves • Consolidation • M&A M&A • Increase production • Secure power supply • Pool & Share ventures • Expand product offering 4
FY 2011 Performance FY 2011 Performance Group Financial Performance FY2011 FY2011 FY2010 FY2010 • Revenue 159.1 123.3 • EBITDA 1.4 -8.4 • EBITDA margin (%) EBITDA margin (%) 0 9 0.9 -6.8 6 8 • EBIT -26.5 -75.6 • EBIT margin(%) neg. neg. Production (tonnes): Key Achievements: FY2011 FY2010 Production up 157% Mining g 74,489 51,985 , , Processing 16,678 35,823 Revenue up 29% EBITDA improved by EUR 9.8 million to 1.4 million 353,962t 137,951t Stellite successfully ramped-up to 360,000tpa RoM annualised FY 2010 FY 2010 FY 2011 FY 2011 Good performance by Speciality Alloys division Good performance by Speciality Alloys division 5
Speciality Alloys Performance Speciality Alloys Performance Financial Performance FY 2011 FY 2011 FY2010 FY2010 • Revenue 83.6 69.0 • EBITDA 13.8 7.8 • EBITDA margin (%) EBITDA margin (%) 16 5 16.5 11.3 11 3 • EBIT -3.8 -10.0 • EBIT margin(%) neg. neg. Production (tonnes): Key Achievements: FY2011 FY2010 • TMS increased mining volumes by nearly 50% Mining: 82,154 54,917 • New mine shaft at Kavak successfully completed on Processing: 25,908 17,994 time & within budget • TMS upgraded its reserves & resources 108,062t 72,911t • EWW operated close to full capacity and production increased by 44% 2011 2010 6
FerroAlloys Performance FerroAlloys Performance Financial Performance FY 2011 FY 2011 FY2010 FY2010 • Revenue 75.4 54.0 • EBITDA -3.9 -1.0 • EBITDA margin (%) EBITDA margin (%) neg neg. neg. neg • EBIT -14.0 -50.2 • EBIT margin (%) neg. neg. Production (tonnes): Key Achievements: FY 2011 FY2010 • Vertical integration of Stellite mine with Mogale Mining: 159,455 n/a processing plant processing plant Processing: 86,445 65,040 • Successful ramp-up of production at Stellite • Mineral reserves declared at Stellite for first time 245,900t 65,040t • Production increased at Mogale by 33% 2011 2010 7
Q1 2012 Performance Q1 2012 Performance Group Financial Performance Q1 2012 Q1 2012 Q1 2011 Q1 2011 • Revenue 46.7 34.8 • EBITDA 2.8 3.5 • EBITDA margin (%) EBITDA margin (%) 6.0 9.9 6 0 9 9 • EBIT -4.1 -3.6 • EBIT margin(%) neg. neg. Production (tonnes): Key Achievements: Q1 2012 Q1 2011 • Revenue increased by 34% y-o-y Mining g 74,489 51,985 , , • Production increased Processing 16,678 35,823 • EBITDA improved quarter on quarter despite weak demand & low prices 91,167t 87,808 • Speciality Alloys performing well despite challenging market conditions • Mogale and chrome ore market impacted by Eskom g p y Q1 2011 Q1 2011 Q1 2012 Q1 2012 electricity buy-backs 8
Profitability Profitability Product Prices (US$/lb) 2,80 2,80 1,4 1,4 1,35 FeCr 2,60 1,3 1,25 1,25 Low Carbon ChCr 2,40 1,2 1,15 2,20 , 1,1 , 1,05 2,00 1 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Low Carbon FeCr ChCr 9
Our Diversified Product Range is a Competitive Advantage g p g Speciality Alloys (TMS & EWW) FerroAlloys FerroAlloys (Mogale) 10
Our Target is Zero Harm to Our Employees, Our Local Communities and Our Environment 11
Our Target is Zero Harm Our Target is Zero Harm • 2011 safety performance marred by a regrettable fatality at Stellite mine • Group focused on FerroAlloys with integration of Chromex • Standardised health, safety & environmental policies • Social and Labour Plan at Stellite mine reviewed • Social and Labour Plan at Stellite mine reviewed • Medical Aid introduced to all employees in South Africa • Environmental studies carried out at Mogale • Mogale successfully awarded ISO 9001 accreditation • 2012 priority is to roll-out standardised health & safety processes across all the Group’s operations processes across all the Group’s operations 12
Our community projects are focused on supporting children with much-needed nutritional and educational support 13
Investment Proposition Investment Proposition • Vertically integrated business capturing the whole value chain from mine to customer • Flexible production units • Products adapted to meet customer requirements • Proven track record of successful growth, strategically driven • Diversified product mix a competitive advantage, offering protection in challenging market p p g , g p g g conditions 14
Ruukki is well positioned to weather the current challenging market conditions with integrated operations from mine to customer a integrated operations from mine to customer, a diversified product range and strong growth prospects. 15
Appendices Appendices 16
Corporate Information Corporate � Information Major � Shareholders Shares � in � issue 248,432,000 % Market Cap (14 May Market � Cap � (14 � May �� £145m £145m KERMAS 29 2012) €191m ATKEY � 21 Year � End 31 � December FINALINE 11 Brokers Investec �� / � RBC � HINO � RESOURCES HINO RESOURCES 6 6 MARKKU � KANKAALA � (Founder) 3 LSE RKKI 52wk � high 152p MONCHEUR � & � CIE 3 52wk � low 58p VEIKKO � ESA � HUKKANEN � (Founder) 2 OMX � Helsinki OMX Helsinki RUG1V RUG1V HANWA 1 52wk � high €1.65 52wk � low €0.71 Management � Team a age e t ea Thomas � Hoyer CEO Dr � Danko � Koncar Enterprise � Director Analyst � Coverage Dr � Stefano � Bonati Chief � Commercial � Officer Tim � Huff RBC � Capital � Markets Markus � Kivimäki General � Manager: � Corporate � Affairs � & � Company � Secretary Hunter � Hillcoat Investec Kalle � Lehtonen General � Manager: � Finance Dr Alistair Ruiters Dr � Alistair � Ruiters Executive Chairman, Ruukki South Africa Executive � Chairman, � Ruukki � South � Africa 17
Ruukki’s Product Range Supplying Global Customers Ruukki s � Product � Range � Supplying � Global � Customers 18
Group Structure Group � Structure Business � Unit Mines Processing Plants Processing � Plants Partners 19
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