Ruukki's Capital Markets Day 2 December 2010: S...

Rautaruukki Corporation Stock exchange release 2 December 2010 at 12 noon

At its Capital Markets Day being held in Helsinki today, Rautaruukki's top
management is providing further information about the company's strategy
outlines announced in October. The company's strategic focuses are
specialisation and strong growth in the emerging markets. In the Nordic
countries, the aim is to further strengthen market positions.

Moving on with structural change to accelerate future growth

In October this year, Ruukki announced its strategic targets for the next few
years. The targets are:
- growth in the share of emerging markets to 50 per cent of consolidated net
sales
- growth in the share of the solutions businesses - construction and engineering
- to 60 per cent of consolidated net sales
- increase in the share of special steel products to 60 per cent of the
company's steel business
- strengthened market position in all core businesses

"We intend to return to the strong growth track and now have a sound foundation
to achieve this aim. We have significantly improved operational efficiency and
our cost structure is now considerably lighter than before the economic crisis.
In the construction business, we have established a modern manufacturing and
sales network in Central Eastern Europe. On top of this, we have secured a
strong foothold in the Russian steel construction market. More than half of our
engineering capacity is already in emerging market countries. The investments in
technology and production capacity needed to increase the share of special steel
products have largely been made.

In the construction business, the main focus is on scalable products and
concepts, as well as on energy-efficient construction solutions. In addition, we
are pursuing growth in residential roofing products and in infrastructure
construction. In the engineering business, we are focusing on products in which
we can capitalise more strongly than earlier on our own design and materials
expertise. In future, our engineering business will focus on technically
demanding special-steel-based components. To grow sales of special steel
products, we will further expand our sales and distribution network, especially
in the emerging markets. On top of this, special steels, especially wear-
resistant steels, have growth potential in mining-intensive countries such as
Australia and South Africa. Product development, innovations and the launch of
new products are critical to accelerate growth. Achieving strategic targets
requires both organic growth and acquisitions," explains Sakari Tamminen,
President & CEO.

Great potential for Ruukki's products on emerging markets

It is predicted that the emerging markets will account for more than half of
world GDP by 2014. The strongest growth is in BRIC countries (Brazil, Russia,
India and China), especially in China and India. Ruukki aims to capitalise on
the growth potential of BRIC countries and other emerging markets. Ruukki
currently sells or manufactures products in a number of emerging market
countries, especially in Central Eastern Europe, and including Russia and China.
Such products include cabins, construction components and solutions, roofing
products and special steel products.

In 2010, emerging markets will account for around a quarter of Ruukki's
consolidated net sales. Ruukki currently sells products to around 40 emerging
market countries.

Sales and marketing to be strengthened

Ruukki aims to achieve a strong market position in all core businesses in its
main market areas. Specialisation and geographical expansion require additional
efforts in sales, marketing and distribution.

Work continues on improving operational efficiency

Boost, the operational excellence programme launched in 2008, has progressed
faster than originally planned. The annualised impact of actions already
initiated under Boost was estimated at EUR 174 million at the end of September
this year. The original target was an annualised improvement of EUR 150 million
in the company's operating profit by the end of 2011.

External reporting of the Boost programme will end at the close of the current
year. However, work will continue on improving operational efficiency and, in
future, initiatives under the Boost programme will be part of ongoing
improvement in operational efficiency.

Capital expenditure in 2011 to be at same level as in 2010

In 2010, capital expenditure is expected to be around EUR 180 million. Capital
expenditure in 2011 is estimated to remain at the level of the current year.

Working capital has been reduced by around EUR 240 million since 2008. However,
during the current year, working capital has increased due to sales growth.
Efficient working capital management is one of the company's key focus areas in
2011.

Hedge accounting to apply to USD derivatives

Ruukki is to apply hedge accounting to USD derivatives from the beginning of
2011. USD derivatives currently hedge future cash flows, but the effect of the
hedge and the hedged item on profit and loss is mismatched timewise. Adoption of
hedge accounting will reduce fluctuations in reported operating profit. Ruukki
will apply hedge accounting to USD-denominated purchases of coking coal, iron
ore and zinc.

Guidance unchanged

Ruukki is keeping its guidance unchanged. Net sales in 2010 are expected to grow
25-30 per cent year on year. Profitability is expected to improve significantly
compared to the previous year and the full year comparable result before income
tax is estimated to be positive. Due to non-recurring items and unrealised gains
and losses arising from USD derivatives, which are used to hedge purchases of
raw materials, the full-year reported result before income tax is estimated to
be negative.

Capital Markets Day materials

The presentation material for Ruukki's Capital Markets Day is available from 2
December 2010 at around 12.30 EET on the company's website at www.ruukki.com.
The presentation material is in English.

For further information, please contact:
Sakari Tamminen, President & CEO, tel. [phone]
Markku Honkasalo, CFO, tel. [phone]

Rautaruukki Corporation

Anne Pirilä
SVP, 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 11,800 people. Net sales in 2009 totalled EUR 2.0 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



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