Annual General Meeting of Rautaruukki Corporation 18 March 2014 - Review by the President and CEO

Review by thePresident & CEO

18.3.2014Sakari Tamminen

1

Sakari Tamminen

Annual General Meeting ofRautaruukki Corporation18 March 2014

Contents

• Strategic focus areas

• Financial performance in 2013

• Ruukki’s transition to a construction and steel specialist

• Business environment in the steel industry

• Ruukki as part of a competitive, Nordic special steels company

18 March 2014 Sakari Tamminen2

Strategic focus areas


3

Ruukki’s business areas


Back to profitability

Net sales €292mOperating loss €10m

Ruukki Building Systems

Accelerating sales growth of special steel products

Net sales €1 679mOperating profit €27m

Ruukki Metals

Growth from roofing products and energy-efficient components

Net sales €430m*Operating profit €36m

Ruukki Building Products

* 2013 figures Net sales €2.4 billionPersonnel 8 600

Cutting costs by improving operating efficiency

Energy-efficient construction is a growing business opportunity

18 March 20145 Sakari Tamminen

Products utilising renewable energy

Lower lifecycle costs Increased owner value Lower environmental impact

Products saving energy

Energyprices

Norms,regulations

Growingenvironmental

awareness

Ruukki Solar thermal roof

Ruukki Solar façade

Energy piles Energy panels and recyclable Life panels


Foundation and infrastructure construction products: steel piles, retaining wall structures, guard rails, main water and district heat pipes

Wall and roof components: sandwich panels, roofing sheets, façade claddings

Residential roofing products: steel roofs, rainwater systems and safety products, as well as installation services

Renovationand

installation

Ruukki is the market leader in Finland

Net sales €430m

Sakari Tamminen18 March 20146

Sakari Tamminen7

Ruukki’s energy panel system saves energy costsItella’s logistics centre exceeded air tightness expectationsAccording to Itella’s environmental values, energy efficiency is one way the company can reduce its carbon footprint.

The building’s measured air tightness rate (q50) was 0.7 m3/(h m2), when existing regulations in Finland require a rate of 4.0 m3/(h m2)

Annual energy savings are around €25 000 - €40 000, or about 20% of the building’s total energy costs

18 March 2014

8


Nordics, Baltics, CEEFrame and envelope structure design, manufacture and installation

RussiaConcept buildings, material deliveries without installation

Single-storeyconstruction

Sports stadiumconstruction

Commercialconstruction

Developmentunit

Agriculturalconstruction


Net sales €292m

Sakari Tamminen9

The world’s largest gasification power plant fired by waste fuel (Mälarenergi, Sweden) Ruukki delivered the steel frame and precast concrete base blocks for the gasification plant, along with 12,000 m2 of sandwich panels and 2,300 m2 of insulated roofing panels.

The boiler house building features contemporary architectural design and has visually impressive external walls created using Ruukki’s colourful sandwich panels.

18 March 2014

10

Metals– Ruukki transforming strongly to special steels

Standard steels: 930M€

Hot-rolled special steelsHigh-strength and wear-resistant steels

Hot-dip galvanised special steels

Colour-coated special steels

Special steels: €558m*

Stainless steeland aluminium: €122m

Hot-rolled plate and strip

Cold-rolled and metal coated

Colour-coated

Standard plate and strip products: €772m

Structural hollow sections

Tubes and profiles: €228m

Precision tubes

Other tubes and profiles

18 March 2014 Sakari Tamminen* 2013 figures

Products

Segments and customers

Geographical regions

Nykyinenliiketoiminta

• Growth from new customers• Raex 400 tubes, Optim 700 Plus MH –

structural hollow sections• Optim 700 plates up to 60 mm• Pural farm & Hiarc reflect coatings• Ramor 550• Raex plates up to t 80 mm

• Growth from new customers and customer segments

• Wear-resistant steels for the mining industry

• High-strength steels in construction

• Growth from new geographical regions

• New sales offices and partners• New recruits for special steels sales

Present business

Growth in special steels from new products, customers, customer segments and geographical regions


Inmeco (Brazil) – Sustainability and higher payloadsNew materials result in significant product improvements

Dump trucks have a short distance cycle.The wearing of equipment can be a costly problem when transporting abrasive materials.

Wear-resistant Raex® 450 was used for the new open-box bed and has significantly increased the product’s useful life.Thanks to special steels, the equipment is up to 400 kg lighter, which has increase the payload and decreased fuel consumption..

Yhteenlaskettu tuotekate

Profitability improvement in the steel business

Tuotekate

Korkea

Keskim.

Matala

Volyymi

RT & AL

Standardi-tuotteet

RT & AL

Standardi-tuotteet

Volyymi ja kannattavuus ei mittakaavassa

Putket & Profiilit

Erikois-teräkset

Total product margin

Product margin*

High

Medium

Low

Volume*

*Volumes and profitability are not to the same scale

Tubes & Profiles

Special steels

SS & AL

1. Strong growth in special steel products -> €850m (2015*)

2. Smaller, selected share of standard grades

– Growth in tube products– Growth in colour-coated and

hot-rolled flat products– Fewer galvanised products


(*2013: €558 million)

Financial performance in 2013


14


2013 highlights

• Profitability improved in all business areas. – Most positive development was in Ruukki Building Products.

– Comparable operating profit was €39 million (-50).

• Net cash from operating activities rose to €184 million (172).

• Efficiency projects generated earnings improvement of around €70m.

• Net sales were down due to lower market prices of steel products.

• Ruukki Metals’ delivery volumes were slightly higher.

• Earnings per share were -€0.10 (-0.85).• Relating to the combination agreement of SSAB AB and Rautaruukki

Corporation, the Board of Directors proposes that no dividend (0.20) be paid for the financial period ended 31 December 2013.

15

Net sales down 7% due mostly to lower market prices of steel products




Ruukki Metals

1 741

2 275

2 620 2 5972 404

0

500

1 000

1 500

2 000

2 500

3 000

2009

2010

2011

2012

2013

Net sales 2009-2013* (€m) Net sales by market area*2013 (2012)100% = €2 404m (€2 597m)

Other Nordic countries31% (30%)

Finland25% (26%)

Central EasternEurope15% (14%)

Rest of Europe13% (14%)

Other countries7% (6%)

Russia andUkraine10% (10%)

* Comparable

Growth in markets outside Europe

Profitability improved in all business areas


Operating profit €39 million (-50) in 2013

Operating profit and groupEBITDA (€m)

Change in operating profit* by business area (€m) 2013 vs. 2012

* Comparable

‐248

70 78

‐50

39

‐177

150171

55

164

‐250

‐200

‐150

‐100

‐50

0

50

100

150

200

2009

2010

2011

2012

2013

Comparable operating profit Reported EBITDA

‐50

39

6

58

1411

‐60

‐50

‐40

‐30

‐20

‐10

0

10

20

30

40

50

2012

Other

Ruukki M

etals

Ruukki Building Prod

ucts

Ruukki Building System

s

2013

336

621

770 765

693

161 173 179

97 90

22.3

44.7

60.3

71.2

68.5

0

10

20

30

40

50

60

70

80

0

100

200

300

400

500

600

700

800

900

2009 2010 2011 2012 2013

Net debt decreasing


Net interest-bearing debt Gross capex in tangible andintangible assets

Gearing ratio 68.5% at year-end 2013

Net gearing

€m %

182

‐64

114

172 184

30

‐226

‐57

78101

‐250

‐150

‐50

50

150

250

2009

2010

2011

2012

2013

Cash flow improved to €184 million


€62 million freed up from working capital (173)

Net cash from operating activities and before financing activities (€m)

Net cash from operatingactivities

Net cash before financing activities

Building Products’ net sales


Net sales by product group (€m)*

Full-year net sales down 5%, growth in residential construction, Sweden and in components in Norway

* Reported

Building components

Infrastructure construction

Residential roofingproducts

Building Products

457 452430

0

50

100

150

200

250

300

350

400

450

5002011

2012

2013

Net sales by market area2013 (2012)*


Finland32% (33%)

CentralEasternEurope31% (30%)

Rest of Europe2% (3%)


*Comparable

Building Products’ profitability clearly improved


EBIT and EBITDA (€m) Comparable operating profit €36m (22) in 2013

• Impact of efficiency programmes on earnings improvement €8 million

• Better gross margin• More favourable geographical spread

than earlier of residential roofing products

• More effective steering of sales of building components

• Better functioning of business processes

Building Products

Comparable EBIT Reported EBITDA

5 6

2622

36

10

20

36

30

45

0

5

10

15

20

25

30

35

40

45

50

2009

2010

2011

2012

2013

Building Systems’ net sales at same level as a year earlier


Net sales by market area, (€m) *

BuildingSystems

* Reported

Russia Nordic countries Central Eastern Europe

300288 292

0

50

100

150

200

250

300

350

2011

2012

2013

• Net sales in Finland down clearly due to weak demand

• Rouble-denominated net sales in Russia up 9% year on year

Building Systems’ profitability improved year on year, but still not yet at a satisfactory level


Comparable operating profit-€10 (-21) in 2013

• Impact of efficiency programmes on earnings improvement €8 million

• Profitability weakened by a few loss-making steel structure contracts which, had a negative impact totalling around €8 million

• Shift in focus of production to lower cost countries

• Better gross margins and more efficient capacity utilisation rate

• Healthy order books and capacity utilisation rate in Russian businesses

BuildingSystems

‐49‐51

‐29

‐21

‐10

‐34‐32

‐13‐11

6

‐60

‐50

‐40

‐30

‐20

‐10

0

10

2009

2010

2011

2012

2013

EBIT and EBITDA (€m)


Metals’ comparable net sales down 10%


Net sales by product group*, (€m)

Clear rise in delivery volumes of special steels

Special steel products Strip and flat products

Stainless steel and aluminium

Tubes and profiles

* Reported

Metals

1 783 1 787

1 679

0

200

400

600

800

1000

1200

1400

1600

1800

20002011

2012

2013

Net sales by market area*2013 (2012)


Finland26% (27%)


Other countries10% (8%)

Rest of Europe 18% (19%)

Central EasternEurope10% (9%)

* Comparable

Metals’ profitability improved clearly


Impact of efficiency projects was €48 million

Comparable EBIT €27 million (-31)in 2013

• Impact of efficiency projects on earnings improvement €48 million

• Lower raw material costs• EBIT weakened by lower average

selling prices of steel products

Metals

‐190

130

95

‐31

27

‐130

202

161

62

128

‐200

‐150

‐100

‐50

0

50

100

150

200

250

2009

2010

2011

2012

2013

EBIT and EBITDA (€m)


Share of special steel products

Net sales of special steels and % of Metals’ net sales*


Net sales of special steel products

* Share of special steel products has been calculated based on comparable net sales i.e. the reference figures have been restated to reflect the current corporate structure

Share of special steels of Metals’ comparable net sales

Target is net sales of €850 million in 2015

Metals

77

114109

124 151

160128 122

144

161 130 120 135

148131

149

22%

25%27%

29%30%

33%31%

26% 29%

33%31%

27%30%

34% 34%37%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

20

40

60

80

100

120

140

160

180

Q1/

10

Q2/

10

Q3/

10

Q4/

10

Q1/

11

Q2/

11

Q3/

11

Q4/

11

Q1/

12

Q2/

12

Q3/

12

Q4/

12

Q1/

13

Q2/

13

Q3/

13

Q4/

13

Net sales:

Comparable net sales in 2014 are estimated to grow compared to 2013.


Guidance for 2014

Operating profit:Comparable operating profit in 2014 is estimated to improve compared to 2013.

Ruukki’s transition to a construction and steel specialist


28

Reinforcement steels business(Nordics and Germany , €400m)


Main disposals and acquisitions

Omeo MekaniskaVerkstad(Sweden,€ 23m)

Aprítógépgyár(Hungary, €43m)Velsa

(Finland, €47m*)

SynecoIndustri(Sweden, €37m)

Metalplast-Oborniki(Poland, €65m)

PPTH Steelmanagement(Finland, €101m)

Steel-Mont(Slovakia, €27m)

OOO Ventall(Russia, €70m)

SkallesElendomsselskap

(Norway, €16m)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Acquisitions

Disposals

Plåtleverantöreni Stockholm AB(Sweden, €17m)

AZST-Kolor(Ukraina)

* net sales at time of disposal/acquisition

Ruukki ConstructionRuukki Engineering

Ruukki Metals

Star Tubes, steel tube wholesaler(UK, €15m*)

Froh HouseTech(Germany, €12m)

Duisburg ServiceCentre(Germany)Fredericia plant(Germany, €15m)

Fortaco arrangementShares in Ruukki Tisza Zrt and Ruukki Slovakia s.r.o. together with net assets of Wroclaw, Kurikka, Sepänkylä and the components business in Kalajoki (€137m)

~€61m

~€189mScanbridge AS(Norway, €9m)

UAB Gensina(Lithuania)WolterMetallverarbeitung(Germany, €5m)

OvakoLong steels (Finland, €600m)

Metalplast Systems(Poland, €8m)

Gävle colour-coating line (Sweden)

Carl Froh GmbH(Germany. €58m)

~€483m

~€93mTot. €576m

Tot. €250m

Halikko plant (Finland, €13m)

Long-term focus on special steelsAdvanced production technology and broad productportfolio create a strong foundation for growth

Productrange

Sales & distribution

Total of 13 certified partners in Brazil, Chile, Europe,

Peru and Middle East

40 new positions in international salesOwn stocks in

China

New sales offices in Australia, India

&China

4 new sales offices and new stock in

Russia

New sales offices in Chile, Canada, USA

& Russia

Focus in Europe

Z600 Zinc coating

New sales offices e.g. in France and Benelux

Expansion in Russia

Global business

New distributor cooperation partnersin Americas, Asia, Europe and Middle East

Raex plate up to80 mm

Pural farm & Hiarc reflect coatings

Raex & Optim 700 Plus tubesRaex plates

30-40 mm Optim 700 plate up to 40 mm

Form Z600 tubes

RWS Pural coating

Optim 700 plateto 60 mmLaser-welded products

Optim 700MCPlusRaex 400-500 stripOptim 900-1100 -nauhat

Raex plate 11-16 mm

Optim 700 plate 8-30 mm

Raex plate 8-30 mm

Purex coating

Ramor 500 strip Litec 800-1000DP

Litec 100DP

Litec 1000 DP

Pural Matt coatingPVDF coating

Ramor 550

30 18 March 2014 Sakari Tamminen

InvestmentsCut-to-length line #2 leveller (€13m)

Strip mill automation (€12m)

Direct quenching equipment at plate mill(€29m) Plate mill cold

leveller (€24m)

Cut-to-length line #2 improvement (€14m)

New cut-to-length line #3 (€26m)

Improvementof normalising furnace(€7m)Strip mill

automation 2 (€15m) ~€210m

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013200320022001

New coilbox at strip mill (€24m)

Steel ladle processing equipment (€17m)

Plasma cutting and bundling of plates (€9m)

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Construction Special steels Engineering Other steel and metal products Long steels

Share of construction and special steels rose from under 20% to more than 50%

31 18 March 2014 Sakari Tamminen

Long steel products

Other steel and metal products

Engineering businessSpecial steels

Construction business

Share of businesses of reported net sales 2004-2013 (%)

Operating profit of €2.4 billion and EBITDA of €4.0 billion during ten years


Reported net sales 1999-2013 (€m) Reported EBIT and EBITDA1999-2013 (€m)

0

500

1000

1500

2000

2500

3000

3500

4000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

The period since the years of rapid growth and strong profitability in 2004-2008 has been characterised by clearly weaker demand and overcapacity in the steel industry

‐350

‐150

50

250

450

650

850

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Reported EBIT Reported EBITDA

0

20

40

60

80

100

120

140

160

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Over €1.1 billion invested in production facilities during the past ten years

33

Net investments, acquisitions and gearing ratio 1999-2013€m

18 March 2014 Sakari TamminenNet investments Acquisitions Gearing ratio

%

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

2,2

2,4

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Over €1.3 billion in dividends during the past ten years


0

50

100

150

200

250

300

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Dividends paid 1999-2013 (€m) Dividend paid per share 1999-2013 (€)

Headcount development 1999-2013


12 49113 000 12 975

12 80412 047 12 126

11 374

13 303

14 587 14 286

11 64811 286 11 382

9 0348 600

0

2000

4000

6000

8000

10000

12000

14000

16000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

* The Fortaco deal resulted in a decrease of 1,334 in personnel numbers.

*

Personnel at year-end 1999-2013

Business environmentin the steel industry


36

36

CIS

79

EU

209

Asia

25

Nafta*

19

LatinAmerica*

*nominal gross overcapacity is used for the regions indicated.Sources: OECD Steel Committee 2012 (overcapacity data for 2011) and World Steel Association

2013 (production data for 2012)

Overcapacity in the steel industry a globalproblem Nominal overcapacity in the steel industry and crude steel production by region (mt)


120

47

169

112

1012

Production


70%

75%

80%

85%

90%

95%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: World Steel Association 2014

Lower capacity utilisation rate in steel productionNew “normal” < 80%

Capacity utilisation rate in steel production

China and other emerging economies sustain steel market growth – Europe stagnatesApparent steel consumption


Source: World Steel Association Short Range Outlook 10/2013

0

200

400

600

800

1000

1200

1400

1600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014f

Kiina

EU 27

Maailma

Million tonnes

~45%China’s share of

global steel market

-0.5%Growth of European steel market in 2013

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014F

Special steel market World EU 27

Market for special steels grows faster

40

Growth of hot-rolled special steelsvs. total steel market Global market for hot-

rolled special steels~3m tonnes in 2013

Ruukki global #2 position in hot-rolled

special steels

Hot-rolled special steels are Ruukki’s largest product group, others are high-strength galvanised and special colour-coated products

Source: WSA SRO 10/2013 and Ruukki’s forecast of the hot-rolled special steels market Hot-rolled special steels include the following trademarks: Raex, Optim and Ramor.

(Indexed 2004=100)

18 March 2014 Sakari Tamminen

Global addressable market for Ruukki’s

special steels~15m tonnes in 2013

Special steels World

Creating a more competitive steel company with global reach

SSAB and Ruukki – more competitive together

The combined company will operate on the global market and offer customers high-strength steels, heavy plate, standard strip and tubular products

Value creation through tangible synergies and improved earnings potential and through greater flexibility and cost efficiency

The Boards of Directors of both companies recommend shareholders to accept the offer and the main shareholders of both companies have expressed support for the offer

Expected annual cost synergies of up to €150 million (SEK 1.4 billion)

42

A combination with a strong industrial logic

Flexible and cost-effective production system to better adapt to changes in market demand

Value creation through tangible synergies

Accelerated growth in high-strength steels, heavy plate, standard strip and tubular products – continue the shared strategic direction of both companies

Enhanced ability to invest in product development and R&D –innovation leader

A more competitive Nordic and US-based steel company

43

1

2

3

11

22

Luleå

Broader steel production base in the Nordic countries

1

2

3

Borlänge

Oxelösund

Raahe

Hämeenlinna

11

22

Steel production, heavy plate and strip products

Strip products

Steel production, heavy plate

Steel production

Strip products and tubes

44

Overview

Plannja manufacturingRuukki manufacturing

Plannja Ruukki Combined

Net sales €120m €740m €860m

Employees 371 3 266 3 637

Manufacturing sites 5 11 16

High quality, strong brands and competences

Complementary presence in Nordic markets, with strong focus on the residential segment

Synergies from optimising production network and product portfolio

45

Further synergy potential through construction business

Value creating share exchange offer for allshareholders For each Rautaruukki share is being offered:

– 0.4752 newly issued SSAB class A shares– 1.2131 newly issued SSAB class B shares

Based on the three-month volume-weighted average share prices of both SSAB and Rautaruukki, the share exchange offer corresponds to a premium of 20% for Rautaruukki shareholders

46

Conditions for completion of the share exchange offer

Subject to SSAB’s shareholders passing the resolutions required to implement the combination and share exchange offer

Acceptance of over 90% of Rautaruukki’s shareholders

Subject to clearance from the regulation authorities in the EU and in certain other areas

Estimated timetable of the share exchange offer

22 January 2014 announcement of the exchange offer

9 April 2014 SSAB’s Annual General Meeting resolves to implement the share exchange offer

Share exchange offer document and prospectus to Rautaruukki’s shareholders April 2014

Period to accept the exchange offer estimated to be late April/early May 2014

The combination is subject to approval from the competition authorities.

47

Announcement ofexchange offer

22 January 2014

Acceptance ofexchange offer

(estimated)

April-May 2014

SSAB’s AnnualGeneral Meeting

9 April 2014 April 2014

Offer documentpublished

(estimated)

>
