OUTOKUMPU TECHNOLOGY OYJ STOCK EXCHANGE RELEASE FEBRUARY 5, 2007 AT 1.30 PM
January-December 2006 Financial statements review
Strong demand for minerals and metals processing technologies and products
continued in 2006. Outokumpu Technology achieved 33% annual sales growth and
112% operating profit growth for the period.
Highlights of the reporting period (Q1-Q4) and the fourth quarter (Q4):
- Order intake grew by 52% from the previous year totaling EUR 1,032.2 million
(Q1-Q4/2005: EUR 678.5 million). The fourth quarter order intake totaled EUR
235.3 million (Q4/2005: EUR 259.8 million).
- Order backlog was EUR 866.4 million (December 31, 2005: EUR 596.0 million),
up 45%.
- Sales for Q1-Q4 2006 came to EUR 740.4 million (Q1-Q4/2005: EUR 556.2
million). Sales amounted to EUR 239.6 million in the fourth quarter (Q4/2005:
EUR 206.4 million).
- Operating profit improved by 112% to EUR 51.6 million (Q1-Q4/2005: EUR
24.3 million), with EUR 23.0 million generated in the fourth quarter (Q4/2005:
EUR 22.2 million). Profit before taxes amounted to EUR 56.6 million (Q1-
Q4/2005: EUR 25.6 million). Earnings per share were EUR 0.88 for the reporting
period (Q1-Q4/2005: EUR 0.39).
- Net cash flow from operating activities totaled EUR 67.8 million (Q1-Q4/2005:
EUR 80.2 million).
The Board of Directors will propose a dividend of EUR 0.35 per share for 2006.
CEO, Tapani Järvinen:
"We were able to benefit from the growth in global metals demand and enjoyed an
extremely good year. Our customers in the mining and metallurgical industry
invested in modernization and expansions, new production plants, and new
technologies, taking our order intake to record heights. Our sales grew by 33
percent in 2006, which further strengthened our market share, particularly for
iron ore sintering and pelletizing technologies. We set new records in relation
to key business indicators orders, sales, and profits. It was also delightful
to see the fruits of our extensive R&D work when the customers invested in our
new hydrometallurgical technologies. In addition, we met all our financial
targets in 2006. The operating profit margin moved up some three-percentage
points from the previous years level and was 7 percent in 2006. The balance
sheet remained strong as well, and our earnings per share more than doubled
from 2005. The listing of Outokumpu Technology on the Helsinki Stock Exchange
was a great success from both the companys point of view and that of our
shareholders".
Summary of key figures
Oct-Dec Oct-Dec Jan-Dec Jan-Dec
2006 2005 2006 2005
Sales, EUR million 239.6 206.4 740.4 556.2
Operating profit , EUR million 23.0 22.2 51.6 24.3
Gross margin, % 22.2 20.8 20.7 18.8
Operating profit in relation to sales, % 9.6 10.7 7.0 4.4
Profit before taxes, EUR million 23.5 21.3 56.6 25.6
Net cash from operating
activities, EUR million 47.4 76.3 67.8 80.2
Net interest-bearing debt
at the end of period, EUR million (170.0) (116.1) (170.0) (116.1)
Gearing at the end of period, % (118.0) (104.9) (118.0) (104.9)
Return on investment, % 73.3 77.0 45.4 24.3
Return on equity, % 50.0 59.5 29.1 16.3
Order backlog at the
end of period, EUR million 866.4 596.0 866.4 596.0
Order intake, EUR million 235.3 259.8 1,032.2 678.5
Personnel at the end of period 1,797 1,802 1,797 1,802
Earnings per share, EUR 0.40 0.36 0.88 0.39
Board of Directors' proposal
for dividend per share, EUR - - 0.35 -
OUTLOOK FOR 2007
The mining and metals industry remains robust and the underlying supply and
demand imbalance encourages the industry to invest both in greenfield projects
and expansions. Outokumpu Technologys strong existing and growing order backlog
provides a solid base for 2007. Due to the timing issues in certain projects,
some projects that were assumed to become effective during the fourth quarter
of 2006, and strengthen the existing backlog even further, are expected to be
closed during the first quarter of 2007. Management is confident that the company
has the resources and capacity to meet the expected further growth in its market
in 2007.
In 2007, the management expects similar sales growth than during 2006. Operating
profit will grow clearly from 2006.
REVIEW BY THE BOARD OF DIRECTORS
Outokumpu Technologys goal is to further strengthen its position as a leading
global provider of process solutions, technologies, and services principally
for the mining and metals industries.
In line with this, the company will continue to implement its business strategy
through seeking sustainable growth by developing and introducing new
technological solutions, applying the companys existing technologies in new
customer industries, expanding the scope of operations in selected geographic
markets, increasing after-sales business, and undertaking acquisitions.
The company is also seeking to improve its profitability further and to
decrease its susceptibility to business cycles by improving the efficiency of
operations, optimizing cost structures and the flexibility of fixed costs, and
increasing the proportion of value-added components in its offerings. Outokumpu
Technologys operations are organized into three divisions: Minerals
Processing, Base Metals, and Metals Processing. Minerals Processing operates at
the beginning of the value chain from mine to metal, where as the Base Metals
and Metals Processing divisions focus on further processing of ores and
concentrates.
A CONTINUING STRONG MARKET
Minerals and metals industry market conditions have improved significantly in
the past three years mainly driven by accelerated metals consumption. This has
created an imbalance in the minerals and metals supply and demand, which has
resulted in rising minerals and metals commodity prices. The positive sentiment
and strong overall investment activity in the industry continued throughout
2006 in both increasing of existing plant capacities and in greenfield plants.
Although countries with long traditions in mining and metals production, such
as Chile, Brazil, Australia, and South Africa, continued to build new capacity,
the exploration and project development began to shift in 2006 to emerging
markets and areas such as India, Kazakhstan, Mongolia, the Middle East, Zambia,
and Congo. These new markets offer a great resource potential to bring balance
to the metals supply and also offer new business opportunities for Outokumpu
Technology.
RECORD-HIGH ORDER INTAKE
All divisions of Outokumpu Technology were able to increase their order
intake in 2006. The value of orders received amounted to EUR 1,032.2 million
(Q1-Q4/2005: EUR 678.5 million). The order intake in the fourth quarter of 2006
totaled EUR 235.3 million (Q4/2005: 259.8 million). Because of the timing of
the project orders there is a natural quarterly fluctuation in order intake.
Therefore, quarterly fluctuations in order intake figures are not in themselves
indicators of the overall market situation.
The largest orders in 2006 included a pelletizing plant for Minerações
Brasileiras Reunidas in Brazil (EUR 110 million); a sinter plant for
ThyssenKrupp CSA Companhia Siderúrgica in Brazil (EUR 160 million, of which
approximately EUR 90 million will be recognized as sales of Outokumpu
Technology); a copper Flash Smelting plant for Konkola Copper Mines in Zambia
(EUR 48 million); an aluminum technology package for the anode plant of
Aluminij Mostar (EUR 28 million) in Bosnia-Herzegovina; new copper processing
technology for Cobre Las Cruces in Spain (EUR 45 million); a copper-zinc
concentrator for Aktyubinsk Copper Company in Kazakhstan (EUR 30 million); a
residue neutralization plant for Queensland Alumina in Australia (EUR 20
million); and a fracturing sand plant for Pattison Sand Company in the United
States (EUR 14 million).
In 2006, Outokumpu Technology succeeded in commercializing several new
technologies. The contract with Erdenet Mining Corporation is an important step
for the commercialization of HydroCopper, and the company expects there to be
good markets for this new technology. HydroCopper is Outokumpu Technologys new
hydrometallurgical process for producing copper directly from concentrates at
the mine site. Other important steps in commercializing new technologies were
the orders received from Cobre Las Cruces in Spain for atmospheric leaching
technology, from Boliden Harjavalta in Finland for the new electrorefining
technology with high-quality permanent cathodes, and from Konkola Copper Mines
in Zambia for a newly developed slag cleaning process.
Minerals Processing
Several noteworthy new contracts were signed in 2006, including agreements for
grinding mills and thickeners for LKAB Kiruna in Sweden; a new fracturing sand
plant for Pattison Sand Company in the U.S.A.; a new copper-zinc concentrator
for Aktyubinsk Copper Company in Kazakhstan; and a complete flash flotation
circuit and thickening circuit for Boddington Gold Mine in Australia, as well
as several grinding mill orders worldwide. The most active market areas were
Australia, Europe and CIS, North America, and Africa. The division succeeded in
winning orders with larger scope and value.
Base Metals
Base metals producers all over the world were investing intensively in
modernizing their processes and expanding their production capacities. Thus,
market demand for base metals technologies was strong. Many investments are
still in the study phase and final decisions on new projects are expected in
2007.
Several contracts were signed during 2006 for traditional technologies, but the
division succeeded also in selling new technologies, such as atmospheric
leaching and HydroCopper processes. Major orders included a new copper Flash
Smelting plant for Konkola Copper Mines in Zambia; modernization of Boliden
Harjavaltas copper refinery in Pori, Finland; new copper processing technology
for Cobre Las Cruces, Spain; and the first-phase engineering of a HydroCopper
plant for Erdenet Mining Corporation, Mongolia.
Metals Processing
The demand for ferrous technologies remained strong throughout 2006. The key
market for the Metals Processing division was Brazil, the worlds largest
producer of iron ore. Major new orders included a large pelletizing plant for
Minerações Brasileiras Reunidas; a sinter plant for ThyssenKrupp CSA Companhia
Siderúrgica; and two new alumina calcination plants for Alunorte in Brazil.
These new projects in Brazil will further strengthen Outokumpu Technologys
market leadership in ferrous and alumina technologies.
Other large orders came from Australia, India and Europe, including a residue
neutralization plant for Queensland Alumina in Australia and an aluminum
technology package for the anode plant of Aluminij Mostar.
STRONG ORDER BACKLOG
The order backlog at the end of December 2006 totaled EUR 866.4 million
(December 31, 2005: EUR 596.0 million). The value of the order backlog grew by
45.4% compared to the level at the end of December 2005.
At the end of December 2006, the order backlog consisted of 18 projects with a
value in excess of EUR 10 million each, accounting for 61% of the total
backlog. Because of the timing of the projects, the fluctuations in quarterly
order intake and backlog figures do not constitute sufficient indicators of
the overall market situation. According to the management estimate, some 80% of
the current backlog will be delivered in 2007, and the rest in 2008 and beyond.
SALES AND FINANCIAL RESULT
Outokumpu Technologys sales increased by 33% in 2006 and totaled EUR 740.4
million (Q1-Q4/2005: EUR 556.2 million). The fourth quarter sales in 2006
were EUR 239.6 million (Q4/2005: EUR 206.4 million), up 16% from the previous
years figure. Growth in sales was considerable in all divisions and was
based on the organic growth. After-sales business, which is included in the
divisions sales figures, remained at the same level as in 2005, being some
EUR 55.3 million in 2006.
Sales generated by regions, % 2006 2005
Europe (including Russia and CIS) 21 22
South America 22 18
Asia 18 30
Africa 17 11
Australia 14 14
North America 8 4
The operating profit for January - December 2006 improved markedly compared to
the same period in 2005 and stood at EUR 51.6 million (Q1-Q4/2005: EUR 24.3
million), representing 7.0% of sales. The profitability improved because of
volume growth and improvement in project implementations. For the fourth
quarter, the operating profit was EUR 23.0 million (Q4/2005: EUR 22.2 million),
representing 9.6% of sales. The improvement in operating profit seen in the
last quarter and 2006 was mainly due to improved efficiency in projects as
well as the product mix and industry-specific seasonality in equipment and
service business.
Outokumpu Technologys profit before taxes for the review period was EUR 56.6
million (Q1-Q4/2005: EUR 25.6 million). The interest income came mainly from
the Metals Processing division and the advances received from several Brazilian
projects. Profit before taxes for the fourth quarter of 2006 was EUR 23.5
million (Q4/2005: EUR 21.3 million), with net profit for the full fiscal year
coming to EUR 37.0 million (Q1-Q4/2005: EUR 16.4 million). Earnings per share
for 2006 were EUR 0.88 (Q1-Q4/2005: EUR 0.39).
Outokumpu Technologys return on equity for January December 2006 was 29.1%
(Q1-Q4/2005: 16.3%), and return on investment during the reporting period
was 45.4% (Q1-Q4/2005: 24.3%).
Sales and operating profit by division
Oct-Dec Oct-Dec Jan-Dec Jan-Dec
EUR million 2006 2005 2006 2005
Sales
Minerals Processing 95.3 69.8 256.6 184.8
Base Metals 53.4 64.2 192.3 160.0
Metals Processing 90.8 70.2 292.2 205.9
Other Businesses 11.9 10.5 32.6 32.2
Unallocated items *) and intra-group sales (11.9) (8.3) (33.2) (26.7)
Total 239.6 206.4 740.4 556.2
Operating profit
Minerals Processing 13.1 4.6 12.7 8.3
Base Metals 6.7 12.7 23.6 11.6
Metals Processing 5.3 6.1 21.2 7.1
Other Businesses 1.0 (0.1) 0.3 0.2
Unallocated **) and intra-group items (3.0) (1.1) (6.1) (2.8)
Total 23.0 22.2 51.6 24.3
*) Unallocated items primarily include invoicing of internal
management and administrative services
**) Unallocated items primarily include management and administrative services
and share of result of associated companies.
Minerals Processing
The divisions sales grew by 39% in 2006, coming to EUR 256.6 million compared
to EUR 184.8 million in 2005. Operating profit was EUR 12.7 million, showing an
increase of 53% from the 2005 figure of EUR 8.3 million in 2005. The growth in
sales was primarily due to increased investment activity in the market and the
divisions ability to capture its share of the market well.
Improvement in profit followed the growth of sales, but in a delayed fashion,
as project sizes kept growing and delivery times increased. Profit generation
for the Minerals Processing division is typically weaker in the first half of
the year and stronger in the second half of the due to the seasonality within a
fiscal year.
The largest projects completed in 2006 were the concentrator delivery for the
Russian Copper Company project Green Mountain 1 in Kazakhstan and grinding
mill deliveries for LKAB Kiruna and Malmberget in Sweden. Several flotation,
thickener, and mill equipment installations facilities worldwide were completed
during 2006.
Base Metals
Several technology transfer projects were successfully implemented, creating
sales of EUR 192.3 million, which represents a growth of 20% from the previous
years figures (Q1-Q4/2005: EUR 160.0 million). The increased sales and higher
project margins significantly improved the profitability of the division, which
saw 103% growth in operating profit from the previous year and was EUR 23.6
million (Q1-Q4/2005: EUR 11.6 million). Ferrochrome plant projects proceeded on
schedule and as budgeted, generating good profit during the period. In
addition, the Flash Smelting projects, which included license fees, contributed
to the solid profit performance.
Major projects completed and commissioned in 2006 were a ferrochrome plant for
Hernic Ferrochrome in South Africa, a copper solvent extraction and
electrowinning plant for Milpillas in Mexico, a copper solvent extraction plant
for BHP Billiton Escondida in Chile, and a ferrochrome plant for Kazchrome in
Kazakhstan. The market continued to be active, especially owing to small
expansions and modernization projects for existing plants to secure high
production levels and increased capacities for smelters, as well as ferrochrome
and hydrometallurgical plants.
Metals Processing
Several large projects were completed successfully, including two alumina
calciners each for Alunorte in Brazil, and a pelletizing plant for LKAB in
Sweden. As a result, sales stood at a record high EUR 292.2 million for 2006
(Q1-Q4/2005: EUR 205.9 million).
The Metals Processing divisions profitability improved significantly. The
operating profit for 2006 was EUR 21.2 million, an increase of EUR 14.1
million, or 200%, from the 2005 operating profit of EUR 7.1 million. The
increase was primarily due to the revenue recognition resulting from a higher
sales volume, good progress in large pelletizing and sintering plant projects,
and successful completion of certain alumina and ferrous metals projects.
BALANCE SHEET, FINANCING, AND CASH FLOW
Net cash from operating activities for January through December 2006 was good,
at EUR 67.8 million (Q1-Q4/2005: EUR 80.2 million), but weakened slightly
during the period from the previous year, because of strong growth and the fact
that capital was tied up in project deliveries, inventories, and receivables.
The working capital continued to be strong due to several new large projects
and related advance payments. At the end of December 2006, net working capital
was EUR -122.3 million (December 31, 2005: EUR -110.1 million). Liquidity was
good and improved further with cash and cash equivalents at 2006 year-end
coming to EUR 171.1 million (December 31, 2005: EUR 118.5 million).
The balance sheet remained strong and its total value increased due to the
impact of business growth on inventories and receivables. Net interest-bearing
debt at the end of December 2006 was EUR -170.0 million (December 31, 2005: EUR
-116.1 million). The advance payments at the end of the period totaled EUR
194.8 million (December 31, 2005: EUR 102.8 million). Outokumpu Technologys
gearing was -118.0% (December 31, 2005: -104.9%), and the equity-to-assets
ratio was 36.9% (December 31, 2005: 36.1%). The companys capital expenditure
was EUR 8.0 million (Q1-Q4/2005: EUR 12.1 million), which consisted mainly of
replacements for machines, information technology, and of investments in new
Intellectual Property Rights (IPRs).
Guarantees for commercial commitments, including advance payment guarantees
issued by the parent and other group companies, came to EUR 259.4 million at
the end of December 2006, increasing from the 2005 level along with business
growth (December 31, 2005: EUR 187.3 million).
In order to manage its financing as an independent public company, Outokumpu
Technology entered into a committed EUR 330.0 million multi-currency revolving
guarantee issuance facility, which is a part of the financing package provided
to Outokumpu Technology by the mandated lead arranger of the initial public
offering and which became effective upon the listing of the shares on the OMX
Helsinki stock exchange. The financing package also includes a commitment for a
EUR 50.0 million revolving credit facility and a EUR 20.0 million limit for
foreign exchange, derivative and overdraft facility purposes. The guarantee
facility and the credit facility include customary covenants, provisions for
the event of default, and terms for representation and warranties. Under the
guarantee facility, the company is required to pledge a certain portion of its
cash funds as security for the credit facility. Based on the outstanding total
liabilities of EUR 260.2 million as of December 31, 2006, the required security
amounted to approximately EUR 25.8 million. Outokumpu Technology continues to
receive interest income on the pledged amount. Furthermore, the guarantee
facility includes a covenant requiring that Outokumpu Technologys liquidity
(including the undrawn portion of the credit facility) not fall below EUR 30.0
million.
RESEARCH AND TECHNOLOGY DEVELOPMENT
Research and technology development (RTD) is a corporate function of Outokumpu
Technology and the key area for the future success and development of the
company. The RTD function focuses on improving and developing existing
technologies in collaboration with the business divisions as well as on
coordinating development activities and the commercialization of new
technologies.
Outokumpu Technologys research and technology development expenses for the
reporting period totaled EUR 19.2 million (Q1-Q4/2005: EUR 13.9 million),
representing 2.6% of sales. In total, Outokumpu Technology has 210 people
working in research and technology development. The Pori Research Center
employs 155 people, and 12 people work at the Frankfurt Research Center.
Research and development activities proceeded according to plans and new
technology products were accomplished. For example, Minerals Processing
division launched a new FloatForce mechanism for flotation technology and the
first large grinding mills based on the newly designed multi-pad hydrostatic
bearings. New technology improving performance of lining system for semi
autogenous (SAG) grinding mills was also installed to Gortez Gold Mines of
Barrick Gold Corporation in the U.S.A.
In hydrometallurgy new developments included a new atmospheric reactor design
for leaching of copper and a method for direct leaching of zinc. An important
step was taken in the marketing of the HydroCopper process when Erdenet Mining
signed the engineering agreement for the first production HydroCopper plant to
be built, in Mongolia.
A new Lurec system developed by Outokumpu Technology represents the latest
technology in high sulfur dioxide processing and will be built for Yanggu
Xiangguang Copper Company in China. In development of Circo technologies,
Outokumpu Technology has successfully conducted first large-scale tests in a
demonstration plant with the process for ilmenite prereduction. Outokumpu
Technology has patented the Circosmelt process, a combination of Circofer
prereduction and submerged arc furnace smelting for the production of titania
slag.
In addition to Outokumpu Technologys own R&D operations, a significant amount
of test work for the customers was carried out at the Frankfurt and Pori
research centers. Further, the amount of automation has been increased in
several processes, for example in grinding mill circuits, ferrous smelting
process and in tankhouse technology.
Outokumpu Technology filed 34 new priority patent applications in 2006 (Q1-
Q4/2005: 26), and in the same period, 298 new national patents were granted (Q1-
Q4/2005: 343).
PERSONNEL
In 2006, Outokumpu Technology had, on average, 1,825 employees. At the end of
the year, the company had a total of 1,797 employees (December 31, 2005:
1,802), in 18 countries. Because the company has been able to make efficient
use of its network of international contractors and temporary employees, the
permanent personnel numbers have remained approximately at the same level as in
2005. Temporary employees accounted for under 10% of the
total number of employees, and contracted employees accounted for 10 to 30% of
the companys permanent employees, depending on the number of projects in
process.
Distribution of personnel by countries, % 2006 2005
Finland 43 41
Germany 16 19
Rest of Europe 11 10
Americas 15 17
Australia 10 8
Rest of the world 5 4
Outokumpu Technologys ability to maintain and enhance its business and to
provide high-quality technologies and services will depend, to a large extent,
upon its ability to retain, develop, and motivate the companys experts, as
well as to hire qualified and experienced new personnel. In addition to the
companys own personnel, Outokumpu Technology has developed an international
network of subcontractors for engineering and manufacturing. The company
continues its global programs to strengthen and improve the work culture to
support performance improvements and continuous learning.
Personnel Dec 31, 2006 Dec 31, 2005
Minerals Processing 450 354
Base Metals 549 593
Metals Processing 429 482*
Other business 294 337
Corporate management and service functions 75 36
Total 1,797 1,802
*Reporting method in Germany included temporary and permanent
employees as well as subcontractors.
CHANGES IN OUTOKUMPU TECHNOLOGYS TOP MANAGEMENT
The Extraordinary General Meeting elected a new Board of Directors for
Outokumpu Technology Oyj on September 25, 2006. The Board of Directors
comprises of Risto Virrankoski, Chairman; Karri Kaitue, Vice Chairman; Carl-
Gustaf Bergström, member; Hannu Linnoinen, member and Anssi Soila, member. The
Board took office on October 10, 2006.
The members of Outokumpu Technologys new Executive Committee as of October 10,
2006 are: Tapani Järvinen, President and Chief Executive Officer; Seppo
Rantakari, Executive Vice President and Deputy CEO; Markku Jortikka, Executive
Vice President and President Base Metals division; Jari Rosendal, Executive
Vice President and President Minerals Processing division; Vesa-Pekka Takala,
Executive Vice President and Chief Financial Officer and Peter Weber, Executive
Vice President and President Metals Processing division.
In addition, the company has a Management Committee consisting of the Executive
Committee members and the following persons: Martti Haario, Senior Vice
President Marketing Development; Ari Jokilaakso, Senior Vice President
Human Resources; Kari Knuutila, Senior Vice President and Chief Technology
Officer and Ilkka Virtanen, Senior Vice President Business Development (until
December 31, 2006).
FINANCIAL TARGETS AND DIVIDEND POLICY
Outokumpu Technologys financial targets and dividend policy are derived from
the companys strategy. The company has defined sustainable profitable growth
as its objective and has the following financial targets: an average annual
increase in earnings per share in excess of 10%; an annual operating profit
margin always above 5%; and a strong balance sheet providing operational
flexibility and enabling Outokumpu Technology to finance further development of
its operations including potential acquisitions.
Board of Directors of Outokumpu Technology has adopted a dividend policy
whereby it is in their intentions to propose for the approval of the companys
shareholders dividends representing approximately 40% of the companys annual
net income for the preceding financial year. The amount of future dividends, if
any, is subject to companys future earnings, financial conditions and
strategy.
EVENTS AFTER THE REPORTING PERIOD
In January, Outokumpu Technology signed an agreement with the JSC Krasnoyarsk
Non-Ferrous Metals Plant for delivery of a silver refinery installation to
Russia for the worlds biggest platinum-group-metals refinery in Krasnoyarsk,
Siberia. This project further enhances Outokumpu Technologys position as the
market leader in precious metals technologies.
The company concluded an agreement in January with the leading Chinese zinc
producer, Hunan Zhuye Torch Metals Co. Ltd., for the design and delivery of a
zinc plant expansion with new environmentally sound leaching technology. The
value of the contract is nearly EUR 30 million.
Also in January, the company announced a contract with the worlds largest
nickel and platinum-group-metals producer, MMC Norilsk Nickel, for the
modernization of a Flash Smelting production line at the Nadezha metallurgical
plant in Norilsk, Russia. The value of the contract is some EUR 16 million, and
this project was already in the closing backlog at year-end, due to the
effectiveness of the contract.
In Australia, Outokumpu Technology signed an additional contract with
Boddington Gold Mine for the delivery of a complete thickening circuit; the
thickening contract follows an earlier order for a complete flash flotation
circuit.
BOARD OF DIRECTORS PROPOSALS FOR PROFIT DISTRIBUTION
The Board of Directors of Outokumpu Technology proposes to the Annual General
Meeting that a dividend of EUR 0.35 per share be paid from Outokumpu Technology
Oyjs distributable funds for December 31, 2006, and that any remaining
distributable funds be allocated to retained earnings. The suggested dividend
record date is April 5, 2007, with the dividend to be paid on April 17, 2007.
According to the financial statements for December 31, 2006, the parent
companys distributable funds total EUR 17.6 million.
There have been no substantial changes in the financial position of the company
after the balance sheet date. According to the Board of Directors, the
liquidity of the company is good and the proposed profit sharing will not
affect the solvency of the company.
OUTLOOK FOR 2007
The mining and metals industry remains robust and the underlying supply and
demand imbalance encourages the industry to invest both in greenfield projects
and expansions. Outokumpu Technologys strong existing and growing order backlog
provides a solid base for 2007. Due to the timing issues in certain projects,
some projects that were assumed to become effective during the fourth quarter of
2006, and strengthen the existing backlog even further, are expected to be closed
during the first quarter of 2007. Management is confident that the company has the
resources and capacity to meet the expected further growth in its market in 2007.
In 2007, the management expects similar sales growth than during 2006. Operating
profit will grow clearly from 2006.
FINANCIAL REPORTING IN 2007
Outokumpu Technology will publish the following financial information during
2007:
Interim report for January - March, on Thursday, April 26, 2007
Interim report for January - June, on Wednesday, July 25, 2007
Interim report for January - September, on Thursday, October 25, 2007
ANNUAL GENERAL MEETING 2007
The Annual General Meeting (AGM) of Outokumpu Technology will be held at 1:00
pm on Monday, April 2, 2007, at the Dipoli Congress Center in Espoo, Finland.
Espoo, February 5, 2007
Board of Directors
For further information, please contact:
Outokumpu Technology Oyj
Tapani Järvinen, CEO
tel. +358 20 529211
Vesa-Pekka Takala, CFO
tel. +358 20 529211, mobile +358 40 5700074
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 5292004, mobile +358 400 817198
Rita Uotila, Vice President - Investor Relations
tel. +358 20 5292003, mobile +358 400 954141
e-mails: firstname.lastname (at) outokumputechnology.com
BRIEFING FOR ANALYST AND MEDIA
Welcome to a briefing at which CEO Tapani Järvinen and CFO Vesa-Pekka Takala
will present the fourth quarter and financial statements 2006.
BRIEFING
Date: Monday, February 5, 2007
Time: 3.30 pm (GMT+2)
Venue: Hotel Marski, Meeting room Carl, Mannerheimintie 10, Helsinki, Finland
JOINING THE BRIEFING VIA AUDIO WEBCAST
You may also follow the briefing from a live audio webcast at
www.outokumputechnology.com/presentations. Please, click in and register
approximately 5 to 10 minutes before the briefing.
JOINING THE BRIEFING VIA TELECONFERENCE
You may also join the briefing by telephone. To register as a participant for
the teleconference, please dial in 5 to 10 minutes before the beginning of the
event:
FI/UK: +44 20 7162 0125
US/CANADA: +1 334 323 6203
Password: Outokumpu Technology
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www.outokumputechnology.com
Combined financial statements (unaudited)
Combined income statement
Oct-Dec Oct-Dec Jan-Dec Jan-Dec
EUR million 2006 2005 2006 2005
Sales 239.6 206.4 740.4 556.2
Cost of sales (186.3) (163.5) (587.5) (451.5)
Gross margin 53.3 42.9 153.0 104.7
Other operating income 1.7 0.8 3.7 2.2
Selling and marketing expenses (13.0) (10.5) (46.1) (39.2)
Administrative expenses (11.0) (6.8) (35.0) (28.0)
Research and development expenses (6.4) (3.9) (19.2) (13.9)
Other operating expenses (1.2) (0.0) (3.8) (0.8)
Share of results of associated companies (0.4) (0.3) (1.1) (0.6)
Operating profit 23.0 22.2 51.6 24.3
Financial income and expenses
Interest income and expenses 2.0 0.2 9.3 1.9
Market price gains and losses 0.2 (0.4) (1.4) 0.7
Other financial income and expenses (1.8) (0.7) (2.9) (1.3)
Total financial income and expenses 0.5 (0.9) 5.0 1.3
Profit before taxes 23.5 21.3 56.6 25.6
Income taxes (6.5) (6.0) (19.6) (9.2)
Net profit for the period 16.9 15.3 37.0 16.4
Attributable to:
Equity holders of the company 16.9 15.3 37.1 16.4
Minority interest 0.0 0.0 (0.0) 0.0
Earnings per share for profit attributable
to the equity holders of the company:
Earnings per share, EUR 0.40 0.36 0.88 0.39
Diluted earnings per share, EUR 0.40 0.36 0.88 0.39
All figures in the tables have been rounded and consequently the sum of
individual figures can deviate from the presented sum figure.
Combined condensed balance sheet
Dec 31 Dec 31
EUR million 2006 2005
ASSETS
Non-current assets
Intangible assets 72.7 75.2
Property, plant and equipment 26.7 30.5
Non-current financial assets
Interest-bearing 1.1 0.8
Non interest-bearing 13.0 15.0
Total non-current assets 113.5 121.5
Current assets
Inventories *) 84.4 35.2
Current financial assets
Interest-bearing 1.0 0.0
Non interest-bearing 214.7 126.2
Cash and cash equivalents 171.4 126.3
Total current assets 471.4 287.7
TOTAL ASSETS 584.9 409.2
EQUITY AND LIABILITIES
Equity
Equity attributable to
the equity holders of the company 144.0 110.6
Minority interest 0.0 0.1
Total equity 144.1 110.7
Non-current liabilities
Interest-bearing 2.2 3.1
Non interest-bearing 35.6 34.7
Total non-current liabilities 37.8 37.9
Current liabilities
Interest-bearing 1.2 7.8
Non interest-bearing **) 401.7 252.8
Total current liabilities 403.0 260.6
TOTAL EQUITY AND LIABILITIES 584.9 409.2
*) Of which advances paid for inventories amounted to EUR
30.0 million at December 31, 2006 (EUR 8.4 million at December 31, 2005)
**) Of which advances received amounted to EUR 194.8 at December 31,
2006 (EUR 102.8 million at December 31, 2005)
Combined statement of changes in equity
EUR million Attributable to the equity
holders of the company
Fair
Pre- Other value
Share mium reser- reser-
capital fund ves ves
Equity on Jan. 1, 2005 16.8 20.2 0.1 0.1
Fair value losses on
available-for-sale financial assets - - - (0.1)
Change in translation differences - - - -
Items recognized directly in equity - - - (0.1)
Net profit for the period - - - -
Total recognized income and expenses - - - (0.1)
Management stock option program:
value of received services - - - -
Other changes - - 0.0 -
Equity on Dec. 31, 2005 16.8 20.2 0.1 0.0
Fair value losses on
available-for-sale financial assets - - - (0.0)
Change in translation differences - - - -
Items recognized directly in equity - - - (0.0)
Net profit for the period - - - -
Total recognized income and expenses - - - (0.0)
Management stock option program:
value of received services - - - -
Equity on Dec. 31, 2006 16.8 20.2 0.1 -
Attributable to the equity
EUR million holders of the company
Cumu-
lavtive
transla- Retai- Minori-
tion ned ty
diffe- earn- inte- Total
rences ings rest equity
Equity on Jan. 1, 2005 5.8 47.8 0.0 90.9
Fair value losses on
available-for-sale financial assets - - - (0.1)
Change in translation differences 3.4 - 0.0 3.5
Items recognized directly in equity 3.4 - 0.0 3.3
Net profit for the period - 16.4 0.0 16.4
Total recognized income and expenses 3.4 16.4 0.0 19.7
Management stock option program:
value of received services - 0.1 - 0.1
Other changes - - - 0.0
Equity on Dec. 31, 2005 9.3 64.2 0.1 110.7
Fair value losses on
available-for-sale financial assets - - - (0.0)
Change in translation differences (3.5) - (0.0) (3.5)
Items recognized directly in equity (3.5) - (0.0) (3.5)
Net profit for the period - 37.1 (0.0) 37.0
Total recognized income and expenses (3.5) 37.1 (0.0) 33.6
Management stock option program:
value of received services - (0.2) - (0.2)
Equity on Dec. 31, 2006 5.8 101.1 0.0 144.1
Condensed combined statement of cash flows
Jan-Dec Jan-Dec
EUR million 2006 2005
Cash flow from operating activities
Net profit for the period 37.0 16.4
Adjustments for
Depreciation and amortization 10.1 9.4
Impairments 3.3 -
Other adjustments 10.9 6.6
Decrease in working capital 12.4 49.5
Interest received 9.8 3.0
Interest paid (0.4) (1.1)
Income tax paid (15.3) (3.6)
Net cash from operating activities 67.8 80.2
Purchases of assets (8.0) (12.1)
Proceeds from sale of assets 0.3 2.3
Change in other investing activities (0.3) (0.2)
Net cash from investing activities (8.0) (10.1)
Cash flow before financing activities 59.8 70.1
Repayments of long-term debt (0.4) (0.7)
Decrease in current debt (4.8) (3.1)
Change in other financing activities (0.9) 2.2
Net cash from financing activities (6.1) (1.6)
Other adjustments - (0.3)
Net change in cash and cash equivalents 53.6 68.2
Cash and cash equivalents
at the beginning of the period 126.3 52.9
Foreign exchange rate effect
on cash and cash equivalents (8.6) 5.2
Net change in cash and cash equivalents 53.6 68.2
Cash and cash equivalents
at the end of the period 171.4 126.3
Key figures
Oct-Dec Oct-Dec Jan-Dec Jan-Dec
2006 2005 2006 2005
Sales, EUR million 239.6 206.4 740.4 556.2
Operating profit , EUR million 23.0 22.2 51.6 24.3
Gross margin, % 22.2 20.8 20.7 18.8
Operating profit in relation to sales, % 9.6 10.7 7.0 4.4
Profit before taxes, EUR million 23.5 21.3 56.6 25.6
Profit before taxes in relation to sales, % 9.8 10.3 7.6 4.6
Net cash from operating
activities, EUR million 47.4 76.3 67.8 80.2
Net interest-bearing debt
at the end of period, EUR million (170.0) (116.1) (170.0) (116.1)
Gearing at the end of period, % (118.0) (104.9) (118.0) (104.9)
Equity-to-assets ratio
at the end of period, % 36.9 36.1 36.9 36.1
Capital expenditure, EUR million 2.5 3.5 8.0 12.1
Return on investment, % 73.3 77.0 45.4 24.3
Return on equity, % 50.0 59.5 29.1 16.3
Order backlog at the
end of period, EUR million 866.4 596.0 866.4 596.0
Order intake, EUR million 235.3 259.8 1,032.2 678.5
Personnel at the end of period 1,797 1,802 1,797 1,802
Personnel average for the period 1,809 1,834 1,825 1,783
Net profit for the period
in relation to sales, % 7.1 7.4 5.0 2.9
Capital expenditure in relation to sales, % 1.0 1.7 1.1 2.2
Research and development
expenses, EUR million 6.4 3.9 19.2 13.9
Research and development
expenses in relation to sales, % 2.7 1.9 2.6 2.5
Earnings per share, EUR *) 0.40 0.36 0.88 0.39
Equity per share, EUR *) 3.43 2.63 3.43 2.63
Dividend per share, EUR **) - - 0.35 -
*) Outokumpu Technology Oyj shares have been split on August 10, 2006 from
8.4 million to 42.0 million shares, after which counter-book value of a share
is EUR 0.40. Earnings per share and equity per share have been calculated
with 42.0 million shares.
**) The Board of Directors' proposal to the Annual General Meeting.
NOTES TO THE INCOME STATEMENT AND BALANCE SHEET
USE OF ESTIMATES
The preparation of the financial statements in accordance with IFRS requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, as well as the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts
of income and expenses during the reporting period. Accounting estimates are
employed in the financial statements to determine reported amounts, including
the realizability of certain assets, the useful lives of tangible and
intangible assets, income taxes, provisions, pension obligations, impairment of
goodwill and other items. The basis for the estimates is described in more
detail in these accounting principles and in connection with the relevant
disclosure to the financial statement. Although these estimates are based on
managements best knowledge of current events and actions, actual results may
differ from the estimates.
ACCOUNTING PRINCIPLES OF COMBINED FINANCIAL STATEMENTS
The combined financial statements of Outokumpu Technology have been prepared in
accordance with International Financial Reporting Standards (IFRS) adopted by
the European Union. The combined financial statements are presented in millions
of euros and have been prepared under the historical cost conventions, unless
otherwise stated in the accounting principles.
IFRS does not include specific guidance for preparation of the combined
financial statements. In accordance with IAS 8:10 the management has used the
following principles in preparation of Outokumpu Technologys combined
financial statements.
Outokumpu Technology was organized as a legal consolidated group, for the first
time, when the Outokumpu Technology companies, which were under the common
control of a Finnish listed company, Outokumpu Oyj (Outokumpu), were
transferred to the ownership of Outokumpu Technology prior to June 30, 2006.
The combined financial statements of Outokumpu Technology have been prepared so
that business structure and combined financial information of Outokumpu
Technology, which was organized after the transfer of Outokumpu Technology
companies to and from Outokumpu, would fairly present the result of operations,
cash flows and financial position of Outokumpu Technologys current operations.
Adjustments to combined financial statements
Acquisitions
The combined financial statements have been derived from the historical
financial statements of Outokumpu and are based on the historical acquisition
cost of assets and liabilities and on the results of operations, unless
otherwise stated in the accounting principles, as if Outokumpu Technology had
been a stand-alone independent group. The effect of transfers of the Outokumpu
Technology companies to and from Outokumpu has been taken into account in the
net interest-bearing receivables and liabilities and interest as if the actual
transfers would have been implemented as of January 1, 2005. The retained
earnings of Outokumpu Technology companies, which have been transferred to and
from Outokumpu, have been combined in the financial statements of Outokumpu
Technology as of January 1, 2005 so that difference between the equity and the
actual acquisition cost has been reported in the combined equity.
Patents
Patents, which have been transferred from Outokumpu to Outokumpu Technology in
May 2005, have been presented as the transfer would have been made already as
of January 1, 2005. Net interest-bearing receivables and interest have been
adjusted accordingly. Amortization of these patents is included in income
statement also for the period January-May 2005.
Interest-bearing receivables and liabilities and financial items
The interest expenses calculated on adjustments to the combined financial
statements are derived from financial markets. The interest-bearing receivables
and liabilities between Outokumpu Technology and Outokumpu have been offset in
the balance sheet at December 31, 2005. For 2005 the difference has been
reported in cash and cash equivalents as the interest-bearing receivables have
exceeded the interest bearing liabilities.
Group contributions and income taxes
While Outokumpu Technology was part of Outokumpu, it was also part of
Outokumpus tax planning To combine profits and losses in tax jurisdictions of
Finland and Sweden, Outokumpu Technology companies have both taken and given
group contributions from or to other Outokumpu companies. The group
contributions given to and received from Outokumpu companies have been reversed
in each year in the combined financial statements. The effect of these
adjustments has been recognized in the opening balance sheet as of January 1
and December 31, 2005 and for income statement by adjusting equity, interest-
bearing receivables and liabilities, taxes and interest. The income taxes of
Outokumpu Technology have been presented on a stand-alone basis The deferred
income taxes of Outokumpu Technology have been stated using the balance sheet
liability method, as measured with the enacted rates, to reflect the net tax
effect of all temporary differences between the financial reporting and tax
bases of assets and liabilities
Commitments
The guarantees, which relate to the business of Outokumpu Technology and have
been issued by Outokumpu Oyj have been presented for 2005 as if they had been
issued by Outokumpu Technology Oyj due to that Outokumpu Technology has issued
a counter commitment to Outokumpu. As at December 31, 2006 all guarantees are
issued by Outokumpu Technology.
SHARES AND SHARE CAPITAL
Outokumpu Technology's shares were entered into the Finnish Book-Entry
Securities System on September 22, 2006. The company's share capital on
September 25, 2006 is EUR 16.8 million consisting of 42.0 million shares. The
counter-book value of the shares is EUR 0.40 per share. Each share entitles its
holder to one vote at the general meetings of shareholders of the company.
TRADING AND MARKET CAPITALIZATION
Outokumpu Technology's shares were listed on the Helsinki stock exchange
(OTE1V) on October 10, 2006. The market capitalization increased by EUR 445.2
million during the period October 10 to December 31, 2006 being EUR 540.5
million on the first day of trading. During the period October 10 - December
31, 2006 the highest quotation for the company's share was EUR 22.70 and the
lowest EUR 12.40. The average daily trading volume for the period was 1.6
million shares (or EUR 22.5 million). Outokumpu Technology's market
capitalization was EUR 953.4 million on December 31, 2006.
DECISIONS TAKEN AT THE EXTRAORDINARY GENERAL MEETING AND BOARD AUTHORIZATIONS
According to the resolution of the extraordinary general meeting of Outokumpu
Technology Oys (currently Outokumpu Technology Oyj) shareholders on August 4,
2006, the number of Outokumpu Technology Oys shares was split from 8.4 million
shares to 42.0 million shares, after which the counter-book value of a share is
EUR 0.40. The maximum share capital after the split is EUR 40.0 million. The
resolution was registered with the Finnish Trade Register on August 10, 2006.
On August 11, 2006, the extraordinary general meeting of Outokumpu Technology
Oys shareholders authorized the companys Board of Directors to increase the
companys share capital by issuing new shares, granting stock options or
issuing convertible bonds and to decide upon the repurchase and transfer of the
companys own shares. According to the authorization, the issuance of new
shares may not increase Outokumpu Technology Oys share capital on one or
several occasions by more than EUR 1,680,000. Accordingly, an aggregate maximum
of 4,200,000 shares (counter-book value EUR 0.40 per share) may be issued.
Outokumpu Technologys Board of Directors was authorized to decide who will
have the right to subscribe for any new shares, stock options or convertible
bonds. The Board of Directors may decide the subscription price and the other
terms and conditions of the issue of shares, stock options or convertible
bonds. The Board of Directors may also decide that the subscription price for
new shares be paid by means of contribution in kind, set-off or otherwise
subject to specific terms and conditions.
According to the authorization, Outokumpu Technologys shares may be
repurchased in order to improve the companys capital structure or to be used
as consideration when acquiring assets for the companys business or as
consideration in possible corporate acquisitions, in the manner and to the
extent decided by the Board of Directors. Repurchased shares may also be used
as a part of incentive and bonus schemes directed to the personnel of the
company. The number of shares to be repurchased may not exceed 4,200,000.
Shares may be repurchased pursuant to a decision of the Board of Directors
through purchases in public trading at the Helsinki stock exchange at the
prevailing market price. The purchase price shall be paid to the sellers within
the time limit provided in the rules of the Helsinki stock exchange and the
Finnish Central Securities Depository Ltd. The shares shall be repurchased with
distributable funds and accordingly repurchasing will reduce distributable
equity of the company.
According to the authorization, the maximum number of the companys repurchased
shares to be transferred shall be 4,200,000. The shares may be transferred on
one or several occasions. The companys Board of Directors shall be authorized
to decide on the recipients of the shares and the procedure and terms to be
applied. The Board of Directors may decide to transfer the shares in deviation
of the pre-emptive right of the shareholders to the companys shares. Shares
may be transferred as consideration when acquiring assets for the companys
business or as consideration in possible corporate acquisitions, in the manner
and to the extent decided by the Board of Directors. The Board of Directors may
decide to sell the shares through public trading at the Helsinki stock exchange
in order to obtain funds for the company for investments and possible corporate
acquisitions.
Shares can also be transferred as a part of incentive and bonus schemes
directed to the personnel of the company, including the Chief Executive Officer
and her/his deputy.
All the above-mentioned authorizations are valid until the annual general
meeting of the companys shareholders to be held in 2007, however not longer
than one year from the decision of the general meeting of shareholders.
RELATED PARTY TRANSACTIONS
It was Outokumpus policy to charge the cost related to centralized services
using matching principle to the subsidiaries. As part of Outokumpu, income
statement includes these costs for 2005 and from January 1 to September 30,
2006. In addition Outokumpu Technology has agreed to purchase some centralized
services, mainly relating to information technology from Outokumpu also during
the separation period.
Transactions and balances with Outokumpu Group
Jan-Dec Jan-Dec
EUR million 2006 2005
Sales 0.7 4.3
Purchases (20.6) (7.1)
Leases (2.3) (2.7)
Other expense items *) (1.1) (6.1)
Financial income and expenses *) 1.3 0.4
Derivative financial instruments 2.6 (2.4)
31 Dec 2006 31 Dec 2005
Current receivables
Trade receivable 0.2 0.7
Derivative financial instruments 0.6 0.1
Other receivables - 0.1
Cash and cash equivalents - 46.1
Current liabilities
Trade payable 3.9 4.9
Derivative financial instruments 0.1 1.1
Other current liabilities - 0.1
Commitments
Advance payments guarantees - 115.0
Other guarantees for commercial commitments - 59.0
*) The 2005 figures have been restated due to account reclassification.
Reclassification has no impact on result nor equity for 2005.
Major non-recurring items
in operating profit for the period
Jan-Dec Jan-Dec
EUR million 2006 2005
One-time expenses related to the listing 1.3 -
Release of the Finnish TEL disability pension liability - 0.8
Total 1.3 0.8
Income taxes
Jan-Dec Jan-Dec
EUR million 2006 2005
Current taxes (17.9) (4.4)
Deferred taxes (1.7) (4.9)
Total (19.6) (9.2)
Commitments
Dec 31 Dec 31
EUR million 2006 2005
Pledges 27.8 2.3
Guarantees for commercial commitments 121.3 61.8
Minimum future lease payments on operating leases 24.1 19.7
The total value of commercial guarantees does not include advance payment
guarantees issued by the parent or other group companies.
The total amount of guarantees for financing issued by group companies
amounted to EUR 0.4 million at December 31, 2006
(at December 31, 2005 EUR 2.0 million)
and for commercial guarantees EUR 259.4 million at December 31, 2006
(at December 31, 2005: EUR 187.3 million).
Open derivative instruments
Currency forwards
Dec 31 Dec 31
EUR million 2006 2005
Net fair values 2.0 (0.5)
Contract amounts 103 75
Sales and operating
profit by quarters
EUR million Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06
Sales
Minerals Processing 19.5 46.0 49.6 69.8 36.4 57.4 67.5 95.3
Base Metals 20.6 35.6 39.6 64.2 44.9 50.6 43.3 53.4
Metals Processing 22.8 68.2 44.6 70.2 62.9 67.5 71.0 90.8
Other Businesses 6.0 9.8 5.9 10.5 6.6 8.1 6.0 11.9
Unallocated items*)
and intra-group sales (3.7) (8.2) (6.5) (8.3) (6.7) (6.8) (7.9) (11.9)
Total 65.3 151.4 133.1 206.4 144.2 176.8 179.9 239.6
Operating profit
Minerals Processing 0.1 1.4 2.3 4.6 (3.7) (1.9) 5.2 13.1
Base Metals (3.6) 1.4 1.2 12.7 5.6 7.1 4.1 6.7
Metals Processing (4.1) 2.1 2.9 6.1 4.1 6.1 5.6 5.3
Other Businesses (0.0) 0.5 (0.1) (0.1) (0.5) 0.2 (0.3) 1.0
Unallocated items **)
and intra-group items 0.1 (1.2) (0.7) (1.1) (1.5) (1.5) (0.2) (3.0)
Total (7.6) 4.2 5.5 22.2 4.1 10.0 14.5 23.0
*) Unallocated items primarily include invoicing of internal
management and administrative services.
**) Unallocated items primarily include management and administrative services
and share of result of associated companies.
Definitions of key
financial figures
Net interest-bearing debt = Interest-bearing debt - interest-
bearing assets
Gearing = Net interest-bearing debt × 100
Total equity
Equity-to-assets ratio = Total equity × 100
Total assets - advances received
Capital employed = Total equity + net interest-bearing debt
Return on investment = Operating profit + financial income × 100
Total assets - non interest-bearing debt
(average for the period)
Return on equity = Net profit for the period × 100
Total equity (average for the period)
Research and = Research and development expenses
development costs in the income statement (including expenses
covered by grants received)
Earnings per share = Net profit for the period
attributable to the equity holders
Average number of shares during the period,
as adjusted for stock split
Dividend per share = Dividend for the financial year
Number of shares at the end of the period,
as adjusted for stock split
Official financial reporting language
Outokumpu Technology publishes all financial reports in Finnish and English
(US). Because of the international business, the official and approved version
is prepared in English from which the Finnish translation is made.