Rautaruukki - Company Announcement

Ruukki's Capital Markets Day 1 December 2009: Ruukki primes operations for future growth

Rautaruukki Corporation Stock exchange release 1 December 2009 at
9.20

Ruukki's annual Capital Markets Day for investors and analysts is
being held in Helsinki today. The event features a presentation of
the implementation of Ruukki's strategy in different businesses, a
review of the company's financial position and actions to improve
profitability.

Summary:
- Focus areas of business remain unchanged
- Emphasis on product focus and utilisation of investments made in
recent years
- Businesses to be balanced to reduce cyclicality
- Replicability of products and business concepts key to taking
Ruukki's strategy forward
- Efficiency programme has progressed faster than expected
- Positive cash flow before investments
- Earnings guidance unchanged

The main focus areas of Ruukki's business remain unchanged, although
in future operations will be run on a more product-focused driven
basis than earlier. Recent years have seen Ruukki build a strong
manufacturing and sales network in the emerging markets and complete
major investments to increase the manufacturing capacity of special
steel products. Utilising these investments is essential in all
businesses and units.

Work is continuing on compacting the production network. This in turn
will increase efficiency and create a platform to improve
profitability. Production and processes are being harmonised to
enable customers to be provided with standardised products services
in different market areas.

In future, the focus will also be on products and business concepts,
such as cabins and roofing products, which can be replicated from one
country to another. One of the latest examples on this front is
residential construction concept to enable fast, cost-efficient steel
construction throughout the year. This solution will be launched on
the Russian market during 2010.

Competence development is being highlighted more than earlier at
Ruukki and applies to all sectors, from product development to sales.
To reduce the impact of fluctuations in the economic cycle on the
businesses, the company is seeking balance also from the markets in
Western Europe and from businesses - such as infrastructure and
renovation construction and residential construction products - that
are less exposed to market cyclicality.

Strategic direction remains unchanged

In construction, the company continues to focus on commercial and
industrial construction in the Nordic countries, Central Eastern
Europe, Russia and Ukraine. Increasing emphasis is also being given
to infrastructure and residential construction within the
construction business.

In the engineering business, the key business segments are cabins,
booms, windmill towers, and medium-heavy and heavy welded structures.
The company intends to strengthen its own design competence in
products for the engineering industry, in, for example, cabin design.
In the steel business, the focus is on cost-efficiency and
operational flexibility. The geographical focus is on the Nordic
markets and the product focus is on special steel products."The global economic crisis has severely shaken Ruukki's customer
industries and thus considerably weakened both our steel business and
solutions businesses: construction and the engineering industry. In
future, our focus will increasingly be on businesses - such as
infrastructure, renovation and residential construction products -
that are less exposed to market cyclicality. However, despite
difficult market conditions, we have noticeably improved our
efficiency and cost competitiveness. In recent years, we have ramped
up capacity serving construction and engineering industry customers
in the emerging markets in Central Eastern Europe, Russia and China
and invested in the manufacturing capacity of special steel products.
This gives us a strong competitive edge when demand picks up again.
Our strong balance sheet also enables acquisitions," says President &
CEO Sakari Tamminen.

Efficiency projects progressing faster than expected and raw material
costs are lower than during the previous year

Ruukki's three-year operational excellence programme Boost has
progressed faster than expected. The biggest single savings have been
achieved from improving supply chain efficiency, the construction
efficiency programme in Russia and Poland and by a centralisation of
steel service centre operations in the Nordic countries.

Construction operations have been improved by centralising production
on larger units in Finland, Estonia, Poland and Romania. In addition,
there are plans to transfer the production of roof and façade
profiles at Biatorbagy plant in Hungary to larger units.

Centralising operations will also strengthen Ruukki's engineering
expertise in Central Eastern Europe. The manufacture of components
will be relocated from the Swedish units to Poland by the end of this
year.

The impact of the Boost programme on consolidated operating profit
was around EUR 46 million at the end of September and is estimated to
exceed EUR 60 million by the end of the year. The annualised impact
of the above efficiency projects already under way is around EUR 80
million.

Prices of the main raw materials (iron ore and coal) used in steel
production have fallen during 2009 compared to the previous year. The
impact of these lower raw material prices is estimated to be around
EUR 60 million compared to 2008.

Positive cash flow before investments

Consolidated cash and cash equivalents at 30 September 2009 were EUR
88 million. A total of EUR 222 million has been released from working
capital since the start of the year and the company's operative cash
flow, before investment activities, by the end of September was EUR
69 million. Net gearing at 30 September 2009 was 26 per cent. The
company had unused committed financing reserves at the end of
November totalling around EUR 700 million.

Investments are estimated to remain below EUR 170 million during the
current year and to be EUR 160-190 million in 2010.

Earnings guidance unchanged

The earnings guidance given in Ruukki's interim report for
January-September 2009 remains unchanged. The company estimates there
will be a marked improvement in the result before taxes for the
fourth quarter, compared to the third quarter, but that the result
might remain slightly negative.

From the start of 2010, the company will adopt the 21-day silent
period (currently 14 days) before earnings disclosures.

Capital markets day materials

The Capital Markets Day presentation material is in English and will
be available on 1 December from about 12.30 on the company's website
at www.ruukki.com


For further information, please contact:
Sakari Tamminen, President & CEO, tel. +358 20 592 9075
Mikko Hietanen, CFO, tel. +358 20 592 9030


Rautaruukki Corporation

Anne Pirilä
SVP, Corporate Communications and Investor Relations

Rautaruukki supplies metal-based components, systems and integrated
systems to the construction and engineering industries. The company
has a wide selection of metal products and services. Rautaruukki has
operations in 27 countries and employs 12,200 people. Net sales in
2008 totalled EUR 3.9 billion. The company's share is quoted on
NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). The Corporation uses
the marketing name Ruukki.


DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.ruukki.com