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RHI: Preliminary Results 2011

The operating result rose by 7,1 % to EUR 148,6 million (previous year: EUR 138,8 million). Earnings before interest and tax (EBIT) hence increased by nearly 20 % to EUR 150,9 million (previous year: EUR 126 million) and included expenses and income arising from the reversal of impairments and restructuring of EUR 2,3 million, which are related to the closure of two sites in EMEA and the sale of a plant in Canada. The RHI Group’s profit thus rose from EUR 105,7 million in 2010 by approx. 15 % to EUR 121,5 million in 2011. The Steel Division benefited from the good development in the steel industry especially in the first half of 2011, which, however, lost momentum in the second half of the year. The Steel Division’s revenues of EUR 1106,8 million (previous year: EUR 977,3 million) exceeded the record year 2010 by more than 13 %. The division’s EBIT amounted to EUR 71,5 million after EUR 61,7 million in the year 2010; the EBIT margin rose slightly from 6,3 to 6,5%. With revenues of EUR 613,9 million (previous year: EUR 517,8 million), the Industrial Division also realized the highest revenues in company history. The business units nonferrous metals and environment, energy, chemicals recorded new record revenues. The division’s EBIT was increased by roughly 19 % to EUR 71,8 million, while the EBIT margin of 11,7 % exactly matched the level of the year 2010.The Raw Materials Division recorded good capacity utilization throughout the entire year 2011. The focus in the year 2011 was placed on the backwards integration of raw materials and was reflected in the acquisitions in Ireland and Norway and in the expansion of the plant in Turkey. The company’s equity was increased by approx. 37 % to EUR 438,9 million (previous year: EUR 320,9 million); the equity ratio amounted to 26 % (previous year: 22,2 %) at the balance sheet date. In comparison with the fourth quarter of 2011, RHI expects slightly lower revenues in the Steel Division in the first quarter of 2012; in the Industrial Division, RHI expects revenues to fall substantially short of the exceptionally strong fourth quarter of 2011. Hence the EBIT margin will be slightly lower than in the fourth quarter of 2011. Despite the uncertain economic environment, RHI expects good revenues for the whole year 2012, which will be at the level of the year 2011. The persisting good investment climate should be able to compensate a temporary downturn on the steel side. The EBIT margin in the year 2012 should exceed that of 2011 due to the higher backwards integration of magnesia-based raw materials and the improved cost structure. The RHI group will invest roughly EUR 170 million in 2012, with the main part flowing into the expansion of raw materials supply in Norway and Turkey as well as the creation and extension of capacity in Brazil and China (3/2012).

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