This Financial Statements Review has been compiled according to the
International Financial Reporting Standards. The presented information
is unaudited.
SUMMARY
Ruukki Group financial year 2006 Group revenue totalled EUR 125.5
million (1-12/2005: EUR 91.9 m). Comparable pro forma revenue
increased approximately 12 % compared to the previous year.
Group revenue was split by the major reporting segments as follows:
house building 43 % (49 %), wood processing 43 % (36 %), care services
8 % (6 %). Of the total revenue exports accounted for roughly 32 % (20
%).
Earnings before interest and taxes (EBIT) for fiscal year 2006 was EUR
13.0 million (EUR 9.3 m), corresponding to 10.4 % (10.2 %) of revenue.
Comparable EBIT totalled EUR 9.8 million.
Net income for the full year 2006 was EUR 8.4 million (EUR 5.5 m),
i.e. 6.7 % (6.0 %) of revenue.
Group's financial position and balance sheet structure developed
favourably due to positive operating cash flow and the EUR 21 million
share issue finalised during first half of 2006. During the reporting
period multiple acquisitions and divestments were carried out and old
earn-out liabilities were settled.
Based on current group business operations, and taking into account
Incap Furniture consolidation, group revenue in 2007 is expected to be
close to EUR 200 million. Moreover, the EBIT in euros is estimated to
be above the EBIT in 2006 when taking into account the fiscal year
2007 costs related to Kostroma projects.
Ruukki Group is investigating into and preparing for the sawmilling
and pulp mill (BCTMP) investments in Kostroma region in Russia based
on the signed investment agreements thereon. As compared to Ruukki
Group size the planned investment projects are notably large-scale,
and if finalised will in future change remarkably group structure and
total risk position.
Referring to the finalised transactions, Ruukki Group board has
decided to change segment reporting from 1.1.2007 onwards so that the
reporting segments will be the following: house building, sawmilling
business, furniture business and care services.
Ruukki Group Plc board has decided to propose to the annual general
meeting a payment of three (3) cents (EUR 0.03) dividend per share.
The board has decided to convene the annual general meeting on Friday
20 April 2007 at 10:00 am. The meeting will be held in Espoo.
KEY FIGURES, TOTAL GROUP (€ million)
1-12/2006 1-12/2005
12 months 12 months
Revenue 125.5 91.9
change % 36% 28%
Operating profit (EBIT) 13.0 9.3
% of revenue 10.4% 10.2%
Net profit 12.2 8.5
% of revenue 9.7% 9.2%
Net profit 8.4 5.5
% revenue 6.7% 6.0%
Total assets 116.1 89.1
Cash flow from operating activities 7.1 9.2
Return on equity, % p.a. 19.1% 31.1%
Return on capital employed, % p.a. 17.7% 24.9%
Net debt/assets ratio, % -18.7% 8.5%
Gearing, % 60.1% 32.9%
Gross capital expenditure
in non-current assets 14.3 5.4
% of revenue 11.3% 5.9%
Order book 50.1 36.2
Personnel, end of period 452 418
Average number of personnel 570 392
Personnel expenses, € million 18.4 13.3
Earnings per share, € 0.07 0.07
Earnings per share, € diluted 0.06 0.05
Equity per share € 0.46 0.26
Average number of share:
undiluted 118,051,656 83,188,348
diluted 135,995,805 106,467,886
There were no Ruukki Group shares held by Ruukki Group Plc or any of
its subsidiaries as of 31 December 2006 and as of 31 December 2005.
At the end of 2006 the registered number of shares outstanding was
135,963,737. The maximum dilution effect by Ruukki Group option
program I/2006 was 2,700,000 shares and by the 2004 subordinated
convertible bond 3,672,000 shares.
KEY EVENTS DURING THE FINANCIAL YEAR
General
In the 2006 financial year, Ruukki Group focused on developing and
expanding its areas of operation through organic growth and business
acquisitions. In addition, the Group made significant structural
changes in its Furniture unit and, at the end of 2006, signed two
investment agreements concerning the Kostroma region in Russia - to
involve construction of a sawmill and a CTMP pulp mill in Russia over
the next few years. These arrangements will enhance the significance
of the Wood Processing division of the Group considerably. A share
issue carried out during the financial year under review generated
shareholders' equity of some EUR 21 million for parent company Ruukki
Group Plc.
Transactions during 2006
In January 2006, Ruukki Group Plc sold 9.9% of the shares of its
subsidiary Pohjolan Design-Talo Ltd to Kimmo Kurkela, managing
director of the subsidiary. After this transaction Ruukki Group has
owned 90.1% of Pohjolan Design-Talo.
In January 2006, two thirds of the convertible bond notes issued in
2003 by Ruukki Group Plc subsidiary Alumni Ltd, which is the Group's
parent company in the metal industry, were converted into Alumni Ltd's
new shares. As a result of this conversion, Ruukki Group Plc's
holdings in Alumni Ltd decreased in January 2006 to roughly 69% from
the previous 100%.
In February 2006, Ruukki Group Plc was involved in major
reorganisation in the Finnish furniture industry. This reorganisation
entailed Ruukki Group Plc acquiring approximately 39.1% of the shares
of Incap Furniture Ltd, Finland's biggest contract manufacturer of
furniture. The business reorganisation was implemented in full in May
2006. In this connection, Hirviset Group Ltd sold all of the share
capital of subsidiary Hirviset Ltd to Incap Furniture Ltd in a share
swap. In conjunction with this, Ruukki Group Plc exercised the option
included in the agreement signed in 2004 regarding Hirviset Group Ltd
shares and in May bought 50.0% of Hirviset Group Ltd's shares from
Vettenmaa Ltd for a cash consideration of EUR 3.0 million. As a
result of these arrangements, Ruukki Group Plc and Hirviset Group Ltd
together own a total of some 47% of Incap Furniture Ltd's shares. On
the basis of the potential voting rights associated with the options
related to Incap Furniture shares, Incap Furniture was consolidated
into Ruukki Group for 1 May to 30 September 2006 as a Group company,
as opposed to being treated as an associated company as previously. In
October 2006, the Board of Directors of Ruukki Group Plc decided to
waive its call option for Incap Furniture Ltd shares. Consequently,
Incap Furniture was not consolidated as a Group company from 1 October
2006 onwards but instead was consolidated as an associated company
using the equity method.
In March 2006, Ruukki Group Plc acquired a 27.6% holding in Container-
Depot Ltd, a company conducting depot and container terminal business
in Finland and in Russia. The transaction was finalised through a
directed share issue by Container-Depot for EUR 3.5 million cash
settlement. In September, Ruukki Group Plc disposed of all Container-
Depot Ltd shares that it held. With a sale price of approximately EUR
8.2 million, the company recorded a significant EUR 4.6 million sales
gain. The sale price will be paid in cash in several installments
during 2006 and 2007 such that payment is made in full by the end of
September 2007.
The Ruukki Group Plc subsidiary engaged in Internet business sold its
operations to a non-Group buyer in June. Ruukki Group Plc disposed of
its holdings in the associated company Logium Ltd in June. Meanwhile,
holdings in associated company Oplax Ltd were increased to about 32%
in autumn 2006 through a share purchase.
In August, the Care Services business division signed an agreement to
acquire all of the share capital of Terveyspalvelut Mendis Ltd, which
significantly strengthened the social services operations. Cash
consideration of EUR 2.0 million was paid for the acquisition. In
addition, the transaction involves an additional earn-out structure,
which depends on the financial performance of Terveyspalvelut Mendis
Ltd over the next three years and which have been booked based on
estimates. Terveyspalvelut Mendis Ltd has approximately 150 customer
seats for mental health services, care for the elderly, and other
social services, in 11 units situated in Ostrobothnia area and in
Central Finland.
In the final quarter of 2006, Ruukki Group concluded an agreement to
acquire Tervolan Saha ja Höyläämö Ltd (TSH) and the Kittilä-based VK
Timber Ltd (VKT) into the Group's sawmill division. Under the
agreement, approximately 91.4% of TSH's share capital was transferred
to Ruukki Group, which effectively made VKT a fully owned subsidiary
of TSH. The remainder of the TSH share capital continued to be held by
Kalervo and Hannu Vuokila, who will continue to manage TSH. Both TSH
and VKT were consolidated into Ruukki Group at the beginning of
October 2006. This acquisition will further strengthen Ruukki Group's
active sawmill business development in northern Finland.
In December 2006, the House Building division acquired the share
capital of Nivaelement, a contract manufacturer of prefabricated
elements, in full.
Other major events during 2006
A decision was made at Ruukki Group Plc's extraordinary shareholders'
meeting on 9 March 2006 to organise a share issue. This share issue
was carried out as a rights issue under an auction mechanism, with a
29-31 March 2006 subscription period. The share issue, involving a
maximum of 30,000,000 shares, was oversubscribed more than two times.
In accordance with the terms and conditions of the issue, the company
offered a maximum of 30,000,000 shares for subscription in April, for
which the Board confirmed a subscription price of EUR 0.72 per share.
The issue generated a net cash inflow of approximately EUR 21.2
million, excluding the direct costs involved in organising the issue.
In October company issued 564,857 new shares through a free directed
issue for the sellers of Pan-Oston Ltd and Lappipaneli Ltd to settle
old acquisitions' earn-out liabilities.
On 18 April 2006, Ruukki Group Plc submitted a petition to the Market
Court in which Ruukki Group requested that the market court deny
Rautaruukki Plc the use of the name 'Ruukki' under penalty of a one-
million-euro fine. Rautaruukki's new 'marketing name' (as Rautaruukki
Plc puts it) often is confused with the business name of Ruukki Group
and the shortened version 'Ruukki' commonly used in everyday language.
On 16 November 2006, the District Court of Helsinki issued its
decision in the case against Rautaruukki Plc regarding use of the
'Ruukki' name. The District Court dismissed Ruukki Group Plc's claim.
Ruukki Group Plc has taken the matter to the Court of Appeal. The
matter still is pending with the Market Court on different grounds.
The Market Court is expected to issue its ruling sometime in 2007.
In December 2006, OOO Ruukki Kostroma, Ruukki Group's Russian
subsidiary established at the end of the 2006 financial year, agreed
with the Kostroma Oblast of the Russian Federation on utilisation of
forest resources in the Kostroma region. According to the agreements,
Ruukki Kostroma will be entitled to annual harvests of between 2.5 and
3.1 million cubic metres during the 49-year lease period. In the first
stage, Ruukki Kostroma will invest in a sawmill that uses pine and
spruce, and in making processed timber products at the sawmill. The
annual production capacity of the sawmill is around 300,000 m3. The
sawmill currently is expected to commence production in 2008. In the
second stage, Ruukki Kostroma will invest in a CTMP (chemi-thermo-
mechanical pulp) mill with an annual capacity in the region of 300,000-
500,000 tons. The pulp mill is expected to begin production in 2009-
2010. The sawn goods and pulp products will be sold primarily to
international markets. Total capital expenditure is expected to be no
more than EUR 500 million over four to five years. Negotiations with
international financers and ownership partners have been launched. The
details of the agreements concerning the forest resources' utilisation
and the related investments will be specified in the first half of
2007. These two agreements have been registered into the Kostroma
Oblast investment register in February 2007.
The company's webpage www.ruukkigroup.fi has a separate summary of all
stock exchange releases and announcements published during the fiscal
year 2006.
EVENTS AFTER THE BALANCE SHEET DATE
Ruukki Group's Care Services business division announced that it would
open four new units in the first quarter of 2007, resulting in 80 new
customer places in total. This will increase the relative weight of
elderly care services in the service offering. Mikeva companies have
been successful in competitive public-sector bidding for contracted
services. The effect of the new care units on the business division's
annual revenue is about EUR 1.5 million.
In February 2007, Ruukki Group Plc announced that it had agreed to an
arrangement whereby Ruukki Group will, through a directed issue,
increase its ownership of Incap Furniture from 47.1% to 70.3%. This
ownership increase has been finalised at the end of February 2007. The
related refinancing package from owners and financial institutions
will strengthen Incap Furniture Ltd's financial position by roughly
EUR 3 million in total. If all stock options issued by Incap Furniture
were exercised, Ruukki Group ownership dilutes to approximately 65%.
The arrangement tied up a total of some EUR 0.9 million of Ruukki
Group's cash funds.
This arrangement is an extension of Ruukki Group's strategy to grow
and invest in wood-based product areas and in Russia. Ruukki Group
intends to develop its raw material purchase processes, and possibly
start furniture component production in Russia. Meanwhile, Incap
Furniture has signed a letter of intent to launch glued board
production in Impilahti in Russia in collaboration with Stora Enso
Timber.
Ruukki Group will include Incap Furniture in its consolidated balance
sheet, from March 2007 onward, which will result in an estimated
increase of some EUR 60-70 million in consolidated revenue for Ruukki
Group in the 2007 financial year.
A positive impact on operating profit is expected by 2008. Ruukki
Group's relative profitability (EBIT margin) is expected to drop due
to the Incap Furniture consolidation. Ruukki Group's consolidated
balance sheet will be affected to a considerable extent. Both tangible
fixed assets and interest-bearing debt, short-term and long-term, will
be clearly increased.
DEVELOPMENT BY BUSINESS AREA
HOUSE BUILDING
Numbers of deliveries of prefabricated houses to customers has
developed as follows:
1-12/2006 1-12/2005
458 412
Q4/2006 Q3/2006 Q2/2006 Q1/2006
141 99 91 127
Q4/2005 Q3/2005 Q2/2005 Q1/2005
137 91 83 101
The House Building division specialises in the design and manufacture
of prefabricated houses in Finland. Pohjolan Design-Talo Ltd and its
fully owned subsidiary Nivaelement Ltd constitute the division of the
Group that operates in this field. Customers include Finnish
individuals and families.
House Building segment's revenue and operating profit (EBIT):
12 months 1-12/2006 1-12/2005 Change, %
Revenue, EUR million 53.7 45.4 18%
Operating profit, EUR million 13.4 10.6 26%
Operating margin 24.9% 23,3%
3 months Q4/2006 Q4/2005 Change, %
Revenue, EUR million 16.0 14.4 11%
Operating profit, EUR million 4.1 3.6 13%
Operating margin 25.4% 25.0%
The revenue from prefabricated houses is recognised when the house is
delivered to the customer, which means that unfinished projects do not
affect the Group's revenue or profit for the review period. This
division of the Group has seen considerable growth in the past few
years, partly as a result of the general growth in housing markets and
partly because the company's products enjoy a better than average
market position. The proportion of prefabricated houses has increased
relative to other types of single-house building methods.
The order book, exclusive of value added tax, at the end of the year
stood at approximately EUR 36 million. There are no significant risks
associated with the orders. The division employed 101 people at year
end, as well as a considerable number of workers from outside service
providers, employed under contract agreements.
In the second quarter of 2006, the company switched to shell-element-
based house production. With shell-element-based production, more
production stages take place in the production facility rather than at
the construction site. Shell elements combine the benefits of large
prefabricated panes and pre-cut structures. The new construction
method allows houses to be made weatherproof quickly by means of a
joint-free construction method. The benefits of shell elements as
compared with traditional building include efficiency and the
opportunity to produce uniform quality without increasing the consumer
price.
WOOD PROCESSING
In the 2006 financial year and the comparison year 2005, the Wood
Processing division covered softwood sawmill business and furniture
business. Due to the various ownership arrangements carried out in the
furniture industry in 2006, the division has changed radically. Since
Ruukki Group had only a minority interest in the furniture business
operations at the end of 2006, they are not considered to be a part of
the same group as the sawmill business from a legal standpoint. From
2007 onwards sawmilling business and furniture business will be
reported as separate segments.
Sawmill business
The sawmill unit specialises in the efficient processing of softwood
log products, and in the production of wooden components. The unit
consists of the Kuusamo-based Lappipaneli sawmill group and the
Tervolan Saha ja Höyläämö sawmill group operating in Tervola and
Kittilä. The two groups specialise in the efficient utilisation of
Nordic pinewood and spruce. The key customer group includes companies
serving the international construction business - for instance, the
Japanese building beam markets - and house building factories in
Finland.
Favourable export demand continued in the sawmill business. Also,
softwood sales prices have increased. The profitability of the sawmill
operations improved in 2006. At the end of 2006, there was a fire at
Lappipaneli facilities which, as combined with extraordinarily mild
winter, caused some difficulties in last quarter production.
Approximately 56% of the sawmill revenues in the review period were
generated in the export markets, where the company has gained a good
position. Business area's order book, excluding VAT, stood at
approximately EUR 13.2 million at the end of the year. The sawmill
unit employed a total of 72 people at the end of the financial year.
Furniture business
Ruukki Group is involved in the furniture business through its
associated company Incap Furniture Ltd. The furniture operations
continued to make a loss, and liquidity was tight throughout the
financial year. At the end of fiscal year 2006, Ruukki Group's
ownership in Incap Furniture was 47.1%. During 2006, the following
units have been included as group companies:
- Hirviset Group Ltd during 1-12/2006 (based on potential
voting
rights on 1-4/2006)
- Hirviset Ltd and Ruukki Furniture Ltd during 1-9/2006 (both
companies belonging to Incap Furniture group from 05/2006
onwards)
- Incap Furniture Ltd, Incap Furniture Inc ja Koy
Jokilaaksojen Kiinteistöt during 5-9/2006 (and based on
potential voting rights for all of the period 5-9/2006)
Rationalisation measures in the furniture business continue. The
majority of the division's furniture production is exported.
Operations involve a significant customer concentration risk.
Opportunities for raw material procurement and manufacturing in Russia
are being explored with the objective of ensuring the long-term
profitability of operations. The balance sheet items and off-balance
liabilities associated with the furniture business amounted to about
EUR 2.2 million on 31 December 2006. During fiscal year 2007 furniture
business will become a part of the group, and therefore will be
consolidated into the group financials starting as of March 2007.
New business in Kostroma, Russia
Russian group companies (OOO Ruukki Kostroma and OOO Sever-Trust),
established on latter half of 2006, have had very modest operations in
2006, but in December they signed significant investment agreements,
which, when fulfilled, should result in major investments and business
in Russia in the coming years.
Ruukki Group Plc has recognised expenses in the amount of
approximately EUR 0.5 million in 2006 associated with study, research,
and analysis of the new Russian business operations.
Wood Processing segment's revenue and operating profit (EBIT):
1-12/2006:
12 months Revenue, Operating profit Operating
EUR million EUR million margin
Sawmill business* 27.8 1.4 5.0%
Furniture business** 25.7 -5.3 -20.8%
Business area total 53.5 -3.9 -7.4%
1-12/2005:
12 months Revenue, Operating profit Operating
EUR million EUR million margin
Sawmill business* 20.2 0.6 2.9%
Furniture business 13.0 -1.4 -10.6%
Business area total 33.2 -0.8 -2.4%
Q4/2006:
3 months Revenue, Operating profit Operating
EUR million EUR million margin
Sawmill business 9.7 0.4 4.2%
Furniture business** 0.0 -1.2
Business area total 9.7 -0.8 -8.4%
Q4/2005:
3 months Revenue Operating profit Operating
EUR million EUR million margin
Sawmill business* 5.0 0.5 9.1%
Furniture business 3.5 -0,6 -17.1%
Business area total 8.5 -0.1 -1.5%
*sawmilling segment retroactively includes Neopolar Ltd's, an
associated company of sawmilling business group; net profit share
corresponding to Ruukki Group ownership percentage, which has had less
than EUR 0.1 million effect on 2005 and 2006 sawmilling business group
EBIT
**during 1.2. - 30.4.2006 (only Incap Furniture Ltd) as well as during
1.10 - 31.12.2006 (Incap Furniture Ltd + Hirviset Ltd + Ruukki
Furniture Ltd) furniture business segment companies have been
classified as associated companies thereby not affecting group and
segment revenue but having effect on ENIT based on ownership share of
those companies' net income. This has deteriorated wood processing
segment (and furniture subsegment) EBIT by approximately EUR 1.7
million for the full year 2006 and by EUR 1.2 million for the last
quarter (Q4) of 2006.
CARE SERVICES
The Care Services part of the Group provides high-quality care and
rehabilitation services for municipalities, cities, communities, and
businesses, and to some extent directly to private persons. The
division offers services applying the best approved methods, solid
experience, and proven service production processes, and it supports
their development.
Care Services segment's revenue and operating profit (EBIT):
12 months 1-12/2006 1-12/2005 Change, %
Revenue, EUR million 9.8 5.4 84%
Operating profit, EUR million 0.6 0.3 76%
Operating margin 6.2% 6.5%
3 months Q4/2006 Q4/2005 Change, %
Revenue, EUR million 3.3 1.7 91%
Operating profit, EUR million -0.1 0.0 -1266%
Operating margin -3.7% 0.6%
The Care Services business remained stable in 2006, and the division
recorded higher than average costs in the final quarter, which could
be attributed to the personnel costs and other initial costs
associated with the opening of the new care units in early 2007. In
the third quarter, all of the share capital of the Seinäjoki-based
Terveyspalvelut Mendis Ltd was acquired, which will have a strong
impact on the division's future volumes. At year end, the division
employed 229 people. Its operations include the sub-group's parent
company Mikeva Ltd and its subsidiaries Jussin Kodit Ltd, Mikeva
Vanhuspalvelut Ltd, Terveyspalvelut Mikeva Ltd, Mikon Kuntoutuskodit
Ltd, and Terveyspalvelut Mendis Ltd along with its subsidiary Mendis
Palvelukodit Ltd as the new units acquired in 2006. The sub-group's
structure will be simplified in 2007 by merging some of the companies
in the sub-group into the parent company. The division runs service
units in 17 locations, with a total customer base of 420 at the end of
the year.
Comparable revenue growth in the Care Services division was
approximately 23% after elimination of the effect of Mikon
Kuntoutuskodit Ltd (acquired in September 2005) and Terveyspalvelut
Mendis Ltd (acquired in August 2006). The corresponding comparable
increase in operating profit was about 24%.
METAL INDUSTRY
Metal Industry segment's revenue and operating profit (EBIT):
12 months 1-12/2006 1-12/2005 Change, %
Revenue, EUR million 8.2 7.4 10%
Operating profit, EUR million 0.3 0.2 20%
Operating margin 3.6% 3.3%
3 months Q4/2006 Q4/2005 Change, %
Revenue, EUR million 2.5 1.6 60%
Operating profit, EUR million 0.1 -0.0
Operating margin 4.3% -2.6%
For 2006, exports accounted for 55% of the Metal Industry segment's
revenue. No significant changes took place in this business area in
the year under review. The relative importance of export markets
remains significant.
At the end of the year, the division employed 45 people and comprised
Alumni Ltd, Pan-Oston Ltd, and Selka-line Ltd.
ASSOCIATED COMPANIES
Ruukki Group Plc has, directly as well as through its subsidiaries,
minority interests in several Finnish companies. These companies have
been consolidated in the Group's financial statements using the equity
method. Profit from associated companies for the 2006 financial year,
excluding wood processing segment's associated companies produced EUR
0.7 million positive effect on Ruukki Group EBIT. The associated
companies within the wood processing segment generated a net negative
effect of some EUR 1.7 million on 2006 EBIT, which is shown in the
segment EBIT as well. During 2006 a write-down of some 0.3 million was
booked related to associated companies shares and debt instruments.
Ruukki Group Plc has recognised in its consolidated operating profit
for 2006 a significant gain of approximately EUR 4.6 million from the
disposal of Container-Depot Ltd Ltd's shares in September. The share
disposal generated approximately EUR 6.8 million of secured
receivables in the consolidated balance sheet. In October, Ruukki
Group announced that it had increased its interest in Oplax Ltd to
31.95% (previously 24.53%). In summer 2006, Ruukki Group sold all of
its shares in Logium Ltd.
OUTLOOK FOR THE FUTURE
Ruukki Group operates as an entrepreneurial development company in
several different sectors. Because the nature of a development company
involves notable restructuring, forecasting the Group's future
operations and development is exceptionally difficult.
Ruukki Group has focused its holdings and business on three to five
sectors, and its primary interest is to pursue active and sustained
business development in these sectors. As a rule, any operations
outside these key areas of activity are divested. In addition,
opportunities for further investments in the existing areas of
business and potentially for expansion into new sectors or markets are
being explored actively. If the new projects in the pipeline in Russia
are realised, they will alter the Group's structure and affect the
business risks and opportunities considerably.
A more detailed analysis of the expected developments in each of the
Group's areas of operation is provided below.
House Building
- The sector typically is cyclical and has grown substantially in
recent years.
- Growth across the whole sector is expected to continue in the coming
years, especially in the prefabricated house production business, in
which a Group company holds a strong market position.
- Consolidation may take place in the sector, and changes in the
competitive environment are likely - particularly in prefabricated
housing production.
- The situation in municipal planning and land availability, and
possible changes therein, coupled with the market interest rate
development, will have a significant impact on the sector's growth
potential.
- In recent years, we have seen a dramatic increase in the cost of raw
materials and supplies needed for production, as well as in labour
costs; no changes are expected in the short term that could affect the
development of short-term profitability.
Sawmilling Business
- The sawmill business typically is cyclic in nature, and cyclical
fluctuation will have a major impact on the development of the
division.
- The price of standing timber is expected to stabilise, but it is
likely that the proportion of raw material imported from Russia to
Finland will shrink, which might have considerable impact on future
availability and price of raw materials.
- Market price development is expected to continue to be positive and
demand in export markets good.
- The volume and geographic distribution of the production capacity in
the sector is likely to change, and the focus in new investments
probably will be on the areas neighbouring Finland.
- Various consolidation and reorganisation solutions may be
implemented in the division.
Furniture Business
- the business environment in 2007 will remain very challenging
especially due to increased raw material prices
- done restructuring measures are expected to have a major effect on
2007 operations, but despite that the profitability is estimated to be
mediocre in 2007
Care Services
- The Care Services division is expected to grow both organically and
through acquisitions.
- Public-sector bidding competitions and outsourcing of services to
private companies provide good growth opportunities in this business
area, particularly where care for the elderly and mental health care
services are concerned; furthermore, demographic trends are going to
increase the demand for care for the elderly in the near future.
RISKS RELATED TO OPERATIONS
Ruukki Group acts as a development company in a number of sectors,
which may differ considerably in their type of business, risk-
intensity, capital- and labour-intensity, geographic location, cost
and balance sheet structure, the proportion of international trading,
and a number of other factors. In addition, a development company
involves notable development and restructuring as part of its nature,
which affects the way the Group's business and other risks are
analysed.
STRATEGIC RISKS
Competitive situation and position in the production chain
It is likely that competition will tighten in the company's key
business sectors, and direct foreign competition and subcontracting
will play an increasingly important role. However, competition will
not necessarily affect the profitability of Group companies. The Group
strives to apply new solutions in its production operations that will
guarantee sustained competitive strength as well as sufficient
capacity and quality. To address these issues, the House Building
division has decided to switch to shell-element-based production. The
House Building division deals directly with the customers, which means
that it has a responsibility toward the end clients for a package
delivery, while in the production process subcontractors have a
significant part to play as they increase the division's flexibility
and its ability to respond to key market changes. The Wood Processing
division is involved in the relatively early stages of the processing
chain and delivers part of its production output to other processing
plants or the wholesale industry, which may affect its ability to
react to major structural changes affecting the sector.
Geographic and political risks and customer concentration
The Group previously operated mainly in Finnish markets, where the
Group companies' production facilities, personnel, and customers all
are located. However, in the past few years, export has become
increasingly important for the metal industry and for Lappipaneli Ltd
in the Wood Processing business, which is why the Group is now
somewhat more decentralised geographically but also has assumed a
higher risk when it comes to disappointing development of individual
market areas or undesirable changes in their currencies. The decision
made at the end of the 2006 financial year to develop the business in
Russia actively increase the Group's political risks. Generally
speaking, the Wood Processing operations have an extensive client
base, but the relative import of Japanese export markets and the House
Building business in Finland is high even if individual customers are
not very significant. An individual customer may, however, entail a
significant risk in the furniture business, in which the Group
operates through an associated company. The Care Services division is
subject to licence, and the key customer group consists of Finnish
municipalities. If for social or regional policy reasons structural
changes were made to the system of outsourcing social services to the
private sector, a major impact could be seen in terms of future
business opportunities in the care services sector.
Risks associated with business reorganisation
A significant proportion of the Group's operations consists of
business reorganisations, which is why the implementation, timing, and
pricing of acquisitions and divestments, as well as integration of
these activities at Group level, have a key impact on both short- and
long-term performance. The estimated synergy benefits related to
business reorganisation might be realised in different time frame and
in different magnitude than originally planned. Moreover, these
operations essentially involve various financing arrangements that
typically include covenants that may affect the chances of securing
further financing, or the terms and conditions of such financing. The
launch of the planned new business in Russia involves significant
exercising of financing and investment solutions, involving risks
that, especially in the Russian business environment, are likely to be
greater than average.
OPERATIONAL RISKS
Market situation in sectors of operation
The sectors in which the Group operates are clearly different in terms
of their sensitivity to economic fluctuations, their operational
profitability, and volume variations, and the individual divisions
have only a very limited amount of direct co-operation. As a result,
the dissimilar and mutually independent business operations diversify
the Group's market risk and reduce the overall cyclicality of
operations. If the CTMP pulp mill project in the pipeline in Russia
is carried out, it will represent a new business area for the Group,
and therefore affect the Group's risk profile. Similarly, the customer
and market risks will be, to some extent, new and rather sizeable,
considering the current nature and scope of the Group's activities.
Raw material price and availability risks
The price risk associated with the Group companies' main raw materials
should be relatively easy to manage, and the sales prices can, at
least in part, be revised to match the raw material price development.
To minimise price and availability risks, Ruukki Group utilises long-
term co-operation agreements and extensive partnership and
subcontracting networks. The remote location of certain units
increases the risks related to customer deliveries on the one hand,
but on the other hand it ensures better raw material quality and
availability, and it helps in retention of skilled personnel.
Environmental risks
The Group companies conduct self-assessment with regard to
environmental permits and risks, and they implement revisions and
apply for the necessary permits if the business environment or
regulations change. Environmental risks have to do firstly with direct
potential harm to the environment and secondly with post-production
rehabilitation or landscaping obligations. To the Group's knowledge,
current operations carry no significant environmental risks.
Changes in regulations
Some of the Group's business activities are officially regulated. In
the House Building business, operations are guided by regulations
dealing with the technical quality requirements for construction.
Furthermore, activities in the Care Services division require official
permits, and certain members of staff must meet specific educational
criteria. The Group keeps a close eye on any changes in regulations
and attempts to respond to them as early as possible. The planned
business operations in Russia might raise various regulative issues
and permits and statutory requirements thereby affecting e.g. security
and environmental arrangements.
Personnel
The work carried out in the Care Services division is particularly
labour-intensive and is subject to statutory requirements regarding
staff training and education, and concerning the ratio between staff
and customers. The potential difficulties in recruiting and retaining
skilled personnel may impose some restrictions on future growth in
this business area. Moreover, as some of the Group companies are
located relatively far from major towns and cities, individual
companies may have trouble obtaining sufficient personnel.
Intellectual property rights
The Group is not currently involved in any business activity in which
intellectual property rights, patents, or product development would be
of significance.
FINANCIAL RISKS
Exchange rate risks
As a rule, short-term forward contracts are used to hedge against
direct exchange rate risk exposure. The most significant exchange
rate risks in export operations currently are linked with the Japanese
yen, the Swedish krona, and the UK pound. A large percentage of the
sale and purchase agreements are denominated in euros. If the new
projects in the works in Russia are carried out, they will affect the
Group's currency risks, which by default are going to gain a great
deal of significance owing to the risks linked to the Russian rouble
and to the growing relative weighting of export markets.
Interest rate and financial risks
The company's liability funding by and large involves variable
interest, which means that the Group's interest expenses will, without
any hedging measures, follow the movements in short-term market
interest rates. As the average weighted maturity of the loans is not
very high, the interest rate risk is no different from the standard
risk. Furthermore, a considerable proportion of the Group's
liabilities, including the acquisitions related earn-out liabilities,
are non-interest bearing in nature. The interest rate risk is closely
monitored, and hedging measures are taken when necessary. To ensure
the availability of financing, the Group's parent company has
increased its equity-based funding and also taken other measures to
expand its range of financing sources and alternatives for future
projects. Carrying out the business operations in Russia will require
significant new financing solutions, which will, if finalised,
significantly affect group's financing position, interest rate risk
and liquidity issues in short-term and long-term perspective, but the
actual timing and financing structure is still not yet finalised.
Credit loss risks
Credit insurance is used to hedge against some of the credit loss
risks involved in the wood processing industry. The House Building
division generates a considerable proportion of the Group's cash
flows, which follow a payment scheme prepared in advance that is based
on degree of completion. This reduces the credit loss risk
significantly. In some business divisions or companies representing
them, individual customers may be somewhat important, which is why
customer concentration risks could have a negative effect on the value
of the Group's current receivables and its future business
opportunities.
DAMAGE RISKS
Property and damage risks
Property risks are covered with insurance, except for own risk. In
addition, indirect liability for damages, such as those involved in
transportation, is covered through insurance. The insurance cover for
property risks is reviewed regularly.
Guarantee risks
In a number of cases, the products delivered by Group companies
involve quality or quantity guarantees to customers, consisting of a
short-term duty to make repairs and, in the House Building business, a
10-year guarantee of structural safety. These risks are covered only
partly, but the Group companies invest heavily in quality assurance
and product development. Furthermore, non-Group subcontractors are
responsible for their own guarantee issues.
Legal proceedings
The Group's parent company is involved in legal action related to the
company name, which may incur an obligation to pay the defendant's
legal costs, or other liabilities.
PLEDGES AND CONTINGENT LIABILITIES
Earn-out liabilities related to acquisitions
The additional earn-out liabilities related to Group acquisitions have
been recognised in the consolidated financial statements as either
short-term or long-term liabilities, depending on when the earn-out
liabilities are due for payment. Furthermore, potential earn-out items
based on option rights have been recognised in the balance sheet under
liabilities. Short-term earn-out liabilities on 31 December 2006
totalled EUR 9.0 million (on 31 December 2005, EUR 9.2 million) and
long-term liabilities EUR 2.4 million (EUR 6.6 million).
Investment commitments
Ruukki Group Plc has made a commitment to invest a total of EUR 0.5
million in Finn-Thai Technology Fund B Ky, a company investing
primarily in Finnish and Thai companies. Ruukki Group Plc is a silent
partner in this limited partnership, and it also has a 30% interest in
the responsible partner, Orienteq Capital Ltd. In all likelihood, this
investment commitment will not be exercised because the part of the
fund encompassing Ruukki Group's investment commitment will be
dissolved in its entirety in the first half of 2007.
Covenants included in the Group's financing agreements
Some of the Group's liability-based financing agreements feature
covenants tied to the Group's or individual Group companies' solvency
or profitability figures, or covenants that restrict the payment of
Group company liabilities to the parent company or that require the
parent company not to divest significant parts of the business
operations without consulting the financer first.
Mortgages and guarantees pledged as security against debt
The Group companies' business mortgages given as security against debt
amounted to about EUR 5.7 million (on 31 December 2005, EUR 4.0
million). Of the parent company's EUR 4.2 million in business
mortgages, EUR 1.7 million had been pledged as security with external
financial institutions on 31 December 2006 (EUR 0.0 on 31 December
2005), and the rest is held by the company. Real-estate mortgages
amounted to about EUR 2.2 million (EUR 2.3 million). The Group's
parent company has given absolute guarantees of EUR 6.6 million (EUR
6.8 million) as security for the Group companies' financing, of these
guarantees some EUR 0.1 million has been freed by end of February
2007. Segments' parent companies have given to secure their
subsidiaries' financing pledges to external parties totalling some EUR
0.4 million.
Guarantees
Group companies give short-term guarantees to replace or repair the
products they sell, and the House Building division also makes long-
term guarantees of structural safety. Short-term liabilities for
repair have been recorded as expenses in the profit and loss account
and as provisions in the balance sheet. Guarantees not recognised in
the balance sheet may be presumed not to be significant. No expenses
have been recorded in the profit and loss account, nor any liabilities
in the balance sheet, for the 10-year structural safety guarantee,
because such an amount is difficult to estimate, it is unlikely to
materialise, and the majority of the guarantee risk rests with non-
Group subcontractors.
Pledges and guarantees not related to financing agreements given on
behalf of others
On 31 December 2006, a total of EUR 0.7 million of lease securities
had been given to lessors (2005: EUR 0.2 million) of which EUR 0.1
million in cash. Approximately EUR 0.1 million (EUR 0.1 million) worth
of guarantees had been granted to suppliers.
Purchase commitments
On the balance sheet date, Group companies had binding raw material
purchase agreements, which are conventional in their line of business.
The purchase commitments in the Wood Processing division are covered
by a bank guarantee for which the Group's parent company has provided
an absolute counter-security up to a limit of EUR 1.5 million (2005:
EUR 1.5 million).
Leasing liabilities
Liabilities included in agreements that can be interpreted as
financial leasing agreements have been capitalised in the balance
sheet. Some of the properties in which the Group's business units
operate are Group-owned and some are leased, some under a fixed-term
contract, and some subject to contracts that are effective until
further notice. Leasing and rental liabilities totalled roughly EUR
6.9 million at 31.12.2006.
Redemption obligations
Group companies in the Wood Processing division have redemption
agreements related to industrial premises worth a total of EUR 0.7
million (0.7) that have been capitalised in the balance sheet. Of
these obligations, roughly EUR 0.6 million relates to sawmilling
industry and EUR 0.1 million to furniture business.
Pending legal proceedings
The Group's parent company has legal action against Rautaruukki Plc
pending in various courts. As part of these proceedings, the District
Court of Helsinki dismissed Ruukki Group Plc's claims in November
2006. Ruukki Group Plc has filed an appeal with the Court of Appeal.
Furthermore, the Group companies have some unfinished taxation-related
processes under way for which no tax or expense items have been
recorded because the relevant matters still are pending.
INFORMATION ON SHARES AND SHAREHOLDERS
CHANGES IN SHARE CAPITAL, 2005-2007
Changes in share capital Increase No. of sharesShare capital,eur
(registration date) eur after after
registration registration
Share capital
on 31 December 2004 817,805,476 13,819,824.10
2005
Directed issue
(14 Jun) 218,049.12 830,708,807 14,037,873.22
Convertible bond note
conversion (25 Aug) 1,689.62 830,808,810 14,039,563.14
Convertible bond note
Conversion (21 Oct) 253,480.04 845,808,810 14,293,043.18
Reverse split 1 for 10
(26 Nov) 0.00 84,580,881 14,293,043.18
Convertible bond note
conversion (12 Dec) 290,656.94 86,300,880 14,583,700.12
2006
Bonus issue
(11 Jan) 87,449.49 86,300,880 14,671,149.60
Directed issue
(13 Jan) 1,190,000.00 93,300,880 15,861,149.60
Share issue
(6 Apr) 5,100,000.00 123,300,880 20,961,149.60
Convertible bond note
conversion (21 Jul) 610,810.00 126,893,880 21,571,959.60
Convertible bond note
conversion (23 Aug) 116,110.00 127,576,880 21,688,069.60
Convertible bond note
conversion (6 Oct) 102,000.00 128,176,880 21,790,069.60
Free directed issue
(10 Nov) 0.00 128,741,737 21,790,069.60
Convertible bond note
conversion (12 Dec) 259,250.00 130,266,737 22,049,319.60
Convertible bond note
conversion (27 Dec) 968,490.00 135,963,737 23,017,809.60
2007
Convertible bond note
conversion (13 Feb) 620,840.00 139,615,737 23,638,649.60
MAJOR SHAREHOLDERS
On 31 December 2006, the company had 3,226 shareholders, of whom four
were nominee-registered. The total number of issued shares on 31
December 2006 was 135,963,737.
Major shareholders on 31 December 2006
Shareholder No. of shares % of shares
Ltd Herttakakkonen Ab 33,775,681 24.84
Nordea Pankki Suomi Plc 18,047,930 13.27
EVLI Pankki Plc 12,911,881 9.50
Nordea Pankki Suomi Plc,
nominee-registered 12,617,873 9.28
Kankaala Markku 9,880,400 7.27
OP-Suomi Pienyhtiöt sijoitusrahasto 5,993,000 4.41
FIM Pankkiiriliike Ltd 5,992,586 4.41
Hukkanen Esa 5,599,500 4.12
Mandatum Stockbrokers Ltd 4,020,000 2.96
Rausanne Ltd 1,803,500 1.33
Moncheur & Cie SA 1,800,000 1.32
Other shareholders 23,521,386 17.30
All shareholders, total 135,963,737 100.00
On 31 December 2006, members of the Ruukki Group Plc Board of
Directors and the President and CEO together owned a total of
83,146,388 company shares (31 December 2005: 74,341,849), taking into
account shares and derivative instruments owned by these people
directly or through either related parties or societies under their
control or influence. This represents 61.2% (71.2%) of all shares
issued and registered in the Trade Register on 31 December.
Shareholders by category as of 31.12.2006
Shares Number of % share Number of % of shares
shareholdersof shareholdersshares held held
1-100 390 12.09 24,923 0.02
101-1,000 1,521 47.15 908,797 0.67
1,001-10,000 1,054 32.67 4,003,910 2.94
10,001-100,000 220 6.82 5,645,062 4.15
100,001-1,000,000 28 0.87 9,491,194 6.98
1,000,001-10,000,000 9 0.28 38,488,986 28.31
in excess of 10,000,000 4 0.12 77,353,365 56.89
Total 3.226 100.00 135.916.237 99.97
of which nominee-registered 4 0.12 14.062.303 10.34
On common account 47.500 0.03
Total outstanding 135.963.737 100.00
% share, based on number of shares held, by shareholder type
Finnish shareholders 96.01
of which:
Companies and business enterprises 34.30
Banking and insurance companies 40.10
Non-profit organisations 0.16
Households 21.45
Foreign shares holders 3.96
Shares on common account 0.03
Total 100.00
of which nominee-registered 10.34
SHARE PRICE DEVELOPMENT 2006
Ruukki Group Plc's shares (RUG1V) are listed on the OMX Nordic List of
the Helsinki Exchanges in the 'small cap' category. The company
carried out a reverse split of its shares (one for 10). The first
trading day with the reverse-split shares was 28 November 2005. In the
trading information for 2005 below, the reverse split has been taken
into account retroactively in the share numbers and prices.
In 2006, the share price varied between EUR 0.64 and EUR 1.23. The
share turnover totalled 87,827,858 shares (46,350,847.9 in 2005),
accounting for 64.6% (53.7%) of the registered share capital on the
balance sheet date. The share price at the end of the financial year
(on the last trading day of the year, 29 December 2006) was EUR 1.20
(2005 comparative: EUR 0.63). The market capitalisation of the
registered share capital on 29 December 2006 was EUR 163.2 million
(EUR 54.4 million).
BOARD PROPOSITION TO THE ANNUAL GENERAL MEETING ON DIVIDEND PAYOUT
Ruukki Group Plc board has decided to propose to the annual general
meeting, which will be later convened separately, that the company
would pay out, from the retained earnings, a dividend of three (3)
cents (EUR 0.03) per share.
As of 31.12.2006 balance sheet date the total distributable equity of
the parent company Ruukki Group Plc totalled 6,635,619.53 euros, as
detailed below:
Retained earnings 1.1.2006 8,859,928.21
Dividends paid out during 2006 - 3,147,786.40
Retained earnings 31.12.2006 5,712,141.81
Net income 1.1. - 31.12.2006 499,835.54
Total free equity 6,211.977.35
Invested equity fund 423,642.18
Total distributable equity 6,635,619.53
FINANCIAL DEVELOPMENT BY SEGMENT, SUMMARY
YEAR-TO-DATE
Revenue, EUR million 1-12/2006 1-12/2005
12 months 12 months
House Building 53.7 45.4
Wood Processing 53.5 33.2
Care Services 9.8 5.4
Metal Industry 8.2 7.4
Other Operations and eliminations 0.3 0.5
Group Total 125.4 91.9
Operating profit, EUR million 1-12/2006 1-12/2005
12 months 12 months
House Building 13.4 10.6
Wood Processing -4.0 -0.8
Care Services 0.6 0.3
Metal Industry 0.3 0.2
Other Operations and eliminations 2.7 -1.0
Group 13.0 9.3
QUARTER (Q4)
Revenue, EUR million 10-12/2006 10-12/2005
3 months 3 months
House building 16.0 14.4
Wood processing 9.7 8.5
Care services 3.3 1.7
Metal industry 2.5 1.6
Other Operations and eliminations -0.1 0.2
Group 31.4 26.4
Revenue, EUR million 10-12/2006 10-12/2005
3 months 3 months
House building 4.1 3.5
Wood processing -0.8 0.0
Care services -0.1 0.0
Metal industry 0.1 -0.0
Other Operations and eliminations -0.7 0.1
Group 2.6 3.6
PROFIT AND LOSS ACCOUNT SUMMARY 1-12/2006 1-12/2005
EUR thousands 12 months 12 months
Revenue 125,459 91,936
Other operating income 5,712 436
Operating expenses -112,398 -81,326
Depreciation according to plan -4,403 -2,061
Income from associates -968 354
Impairment -354 0
Operating profit 13,048 9,339
Financial income/expenses -892 -874
Profit before taxes 12,156 8,465
Taxes -4,117 -2,916
Profit before minority interests 7,979 5,549
Profit before minority interests 463 0
Profit 8,442 5,549
PROFIT AND LOSS ACCOUNT SUMMARY10-12/2006 10-12/2005
EUR thousands 3 months 3 months
Revenue 31,354 26,390
Other operating income 473 125
Operating expenses -26,910 -22,586
Depreciation according to plan -970 -796
Income from associates -974 430
Impairment -332 0
Operating profit 2,641 3,563
Financial income/expenses -29 -185
Profit before taxes 2,612 3,378
Taxes -1,498 -1,346
Profit before minority interests 1,114 2,032
Profit before minority interests -269 0
Profit 845 2,032
BALANCE SHEET SUMMARY
EUR thousands
ASSETS 31.12.2006 31.12.2005
Non-current assets
Intangible assets
Goodwill 31,237 30,927
Associated companies 5,568 3,848
Other intangibles 4,002 1,437
Intangible assets, total 40,807 36,212
Tangible assets, total 15,854 11,972
Other non-current assets 528 510
Non-current assets, total 57,189 48,694
Current assets
Inventories 17,057 14,822
Receivables 17,076 7,633
Other investments 0 8,579
Cash and cash equivalent 24,768 9,414
Currents assets, total 58,091 40,448
Total assets 116,090 89,142
EQUITY AND LIABILITIES 31.12.2006 31.12.2005
Share capital 23,018 14,584
Share issue 0 4,340
Capital paid-in in excess of
par value (share premium reserve) 24,712 2,144
Realisation reserve 0 9
Invested non-restricted equity fund 424 0
Retained earnings 9,511 3,380
Minority interests 1,591 0
Total Equity 59,256 24,457
Liabilities
Long-term liabilities 13,489 25,746
Current liabilities
Deferred income 17,575 15,785
Other current liabilities 25,770 23,154
Current liabilities, total 43,345 38,939
Total liabilities 56,834 64,685
Total equity and liabilities 116,090 89,142
Specification of interest-bearing receivables and liabilities
EUR thousands
31.12.2006 31.12.2005
Interest-bearing receivables
Short-term 7,271 8,774
Long-term 453 171
Interest-bearing receivables, total 7,724 8,945
Interest-bearing debt
Short-term 4,510 3,018
Long-term 9,205 16,567
Interest-bearing debt, total 13,715 19,585
During fiscal year 2006 bond units of the convertible bond issued by
the parent company have been converted in new Ruukki Group shares
corresponding to EUR 5.4 million nominal bond value.
CASH FLOW SUMMARY 1-12/2006 1-12/2005
EUR thousands 12 months 12 months
Cash flow from operating
activities:
Operating profit 13,048 9,339
Adjustments to operating profit -1,017 -2,038
Increase in net working capital -4,973 1,947
Net cash from operating
activities 7,053 9,248
Net cash used in investing
activities -12,421 -3,876
Cash from financing
activities* 12,147 3,579
Net increase in cash and cash
equivalents 6,784 8,951
* earn-outs related to old acquisitions and paid to sellers of those
companies have been presented in the financing activities category.
STATEMENT OF CHANGES IN EQUITY
EUR thousands
Share Share Share Invested Retained Minority Total
capital issue premium equity earnings interests
reserve fund&
revalu-
ation
reserve
1 Jan
2005 13,820 0 1,259 0 -2,436 52 12,695
Directed
share
issue
06/05 218 427 645
Directed
share
issue
12/05 4,340 4,340
Conver-
tible
bond
conversions,
total 546 458 1,004
Share options 50 50
Net profit 5,549 5,549
Minority
interests -52 -52
Other
equity
changes 9 217 226
31 Dec
2005 14,584 4,340 2,144 9 3,380 0 24,457
A subsidiary acquired on 31.12.2004 has had Ruukki Group shares for
137 thousand euros; these shares have been sold by 30.6.2005
Share Share Share Invested Retained Minority Total
capital issue premium equity earnings interests
reserve fund&
revalu-
ation
reserve
1 Jan
2006 14,584 4,340 2,144 9 3,380 0 24,457
Bonus
issue
12/05 87 -87 0
Directed
share
issue
12/05 reg. 1,190 -4,340 3,150 0
Share
issue
03/06 5,100 16,118 21,218
Free
directed
issue
10/06 424 424
Conver-
tible bond
conversions,
total 2,057 3,387 5,444
Dividends -3,148 -3,148
Fund sale -9 -9
Share options 105 105
Net profit 8,442 8,442
Minority
interests 1,591 1,591
Other
equity
changes 732 732
31 Dec
2006 23,108 0 24,712 424 9,511 1,591 59,256
RUUKKI GROUP PLC
THE BOARD
Ruukki Group is a multi-sector industrial group having mainly majority
ownership interests in various small and medium-sized companies in
e.g. house building, sawmilling business, furniture business and care
services. Ruukki Group share (RUG1V) is listed on OMX Nordic
Exchange's so called small cap -category.
For further information, please contact:
Antti Kivimaa
Chief Executive Officer
Ruukki Group Plc
Tel 0400 501780
www.ruukkigroup.fi
RUUKKI GROUP PLC FINANCIAL STATEMENTS REVIEW 1 JANUARY - 31 DECEMBER 2006
| Source: Afarak Group Plc