RUUKKI GROUP PLC'S FINANCIAL STATEMENTS REVIEW ...

07:00 London, 09:00 Helsinki, 12 February 2013 - Ruukki Group Plc ("Ruukki" or "the Company") (LSE: RKKI, OMX: RUG1V) Financial Statements Review

RUUKKI GROUP PLC'S FINANCIAL STATEMENTS REVIEW FOR 1 JANUARY - 31 DECEMBER 2012

FULL YEAR HIGHLIGHTS (January-December 2012):

- EBITDA improved significantly and was EUR 10.9 (FY/2011: 1.4) million. EBITDA margin was 8.3% (FY/2011: 0.9%)
- EBIT was EUR -15.9 (FY/2011: -26.5) million
- Profit for the period from continuing operations totalled EUR -18.1 (FY/2011: -18.4) million
- Full year production decreased by 18.6% to 288,095 tonnes (FY/2011: 353,962 tonnes)
- Revenue decreased by 18.0% to EUR 130.4 (FY/2011: 159.1) million
- Sales from processed products decreased by 37.9% to 66,449 (FY/2011: 106,955) tonnes
- Cash flow from operations was EUR 5.8 (FY/2011: -2.4) million

Q4 HIGHLIGHTS (October-December 2012):

- EBITDA was EUR 6.0 (Q4/2011: -1.1) million and the EBITDA margin was 24.8% (Q4/2011: -2.9%)
- EBIT was EUR -0.2 (Q4/2011: -8.0) million
- Profit for continuing operations totalled EUR -7.6 (Q4/2011: -4.9) million
- Sales from processed products decreased by 53.7% to 10,014 (Q4/2011: 21,650) tonnes
- Revenue decreased by 35.0% to EUR 24.3 (Q4/2011: 37.3) million
- Production decreased by 30.6% to 60,329 (Q4/2011: 86,903) tonnes
- Cash flow from operations was EUR -6.1 (Q4/2011: 5.0) million and liquid funds at 31 December were
 EUR 14.8 (31 December 2011: 65.9) (30 September 2012: 40.4) million
- Dispute regarding Mogale Alloys settled in October

Dividend proposal

The Board of Directors proposes to the Annual General Meeting which will be held on 8 May 2013 that no dividend would be distributed but that a capital redemption of EUR 0.01 per share would be paid out of the paid-up unrestricted equity fund.

KEY FIGURES (EUR million)	Q4/12	Q4/11	Change	FY2012	FY2011	Change
Revenue	24.3	37.3	-35.0%	130.4	159.1	-18.0%
EBITDA	6.0	-1.1		10.9	1.4	675.6%
EBITDA margin	24.8%	-2.9%		8.3%	0.9%
EBIT	-0.2	-8.0		-15.9	-26.5
EBIT margin	-0.9%	-21.3%		-12.2%	-16.6%
Earnings before taxes	-5.4	-7.2		-19.8	-25.4
Earnings margin	-22.2%	-19.4%		-15.2%	-16.0%
Profit for continuing operations	-7.6	-4.9		-18.1	-18.4
Profit for discontinued operations	0.0	-5.8		0.0	41.1
Profit	-7.6	-10.7		-18.1	22.7
Earnings per share, basic, EUR	-0.03	-0.04		-0.07	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.

Commenting on the full year and fourth quarter results, Danko Koncar, CEO, said:

"During my over 20 years in the ferrochrome industry I have never experienced a market as difficult to predict as 2012. In general it has been very tough environment with not much to cheer about. Early in the year there were some positive signals but after the seasonally weak European summer there was no recovery which many of us had hoped for.

At Ruukki we already in 2011 took the decision to trim our costs and increase efficiencies. Throughout 2012 we have executed our plan successfully. Our 2012 results, especially our performance in the most recent quarter, show that even in a deteriorating market we improved our profitability. The whole year was with a wide margin our best year ever since entering into mining and metals business in 2008.

Unfortunately we cannot trust the market to give us tailwind in 2013. Therefore we in late 2012 made a plan to significantly restructure our organisation and the way we work. Our focus is on generating cash and on increasing profits independently of market movements.

We expect a further significant increase of EBITDA in 2013. This will be achieved with our continuous focus on value added speciality products, a lower cost base and ongoing improvements across all our operations.

In the longer term I trust ferrochrome, especially the speciality and super alloys segment, to be a good market to be in. Ruukki is evaluating multiple initiatives which will strengthen our position in this market and will provide us with growth opportunities."

2013 outlook

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 until the end of first quarter 2013. 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.

Disclosure procedure

Ruukki follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority, and hereby publishes its Financial Statements Review for 2012 enclosed to this stock exchange release. The Financial Statements Review is attached to this release and is also available on the Company's website at www.ruukkigroup.com.

Financial Statements, Corporate Governance Statement and Remuneration Report

The Company's complete Financial Statements, the Board of Directors Report, the Corporate Governance Statement and the Remuneration Report for 2012 will be published during the week commencing 25 March 2013 and will be available on the Company's website at www.ruukkigroup.com and at the Company's offices.


RUUKKI GROUP PLC
Danko Koncar
CEO


For additional information, please contact:

Ruukki Group Plc

Kalle Lehtonen, General Manager: Finance, [phone], [e-mail]
Markus Kivimäki, General Manager: Corporate Affairs, [phone], [e-mail]

Investec Bank Plc
Neil Elliot, [phone], [e-mail]
George Price, [phone], [e-mail]

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

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Source: Ruukki Group via Thomson Reuters ONE

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