OUTOKUMPU ANNUAL ACCOUNTS BULLETIN 2006 – RECORD FINANCIAL PERFORMANCE

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OUTOKUMPU OYJ  STOCK EXCHANGE RELEASE  FEBRUARY 1, 2007 AT 1.00 PM

OUTOKUMPU ANNUAL ACCOUNTS BULLETIN 2006 – RECORD FINANCIAL
PERFORMANCE

Outokumpu’s sales in 2006 rose by 23% to EUR 6 154 million. The
Group’s operating profit improved quarter-on-quarter throughout the
year and totaled EUR 378 million in the fourth quarter and EUR 824
million for the whole year. Net profit for the financial year
totaled EUR 963 million resulting in EUR 5.31 earnings per share.
Earnings per share from continuing operations totaled EUR 3.34. Due
to extremely high nickel prices in 2006, net cash generated from
operating activities was EUR 35 million negative as EUR 975 million
was tied up in working capital. The Board is proposing a dividend of
EUR 1.10 per share (2005: EUR 0.45 per share).



Group key figures            Oct-Dec   July- Oct-Dec Jan-Dec Jan-Dec
                                        Sept
                                2006    2006    2005    2006    2005
Sales                     EUR  1 907   1 447   1 117   6 154   5 016
                      million
Operating profit          EUR    378     231   (202)     824      57
                      million
Non-recurring items                                                      
in operating profit       EUR      1       -   (164)       1   (129)
                      million
Profit before taxes       EUR    369     214   (215)     784     (8)
                      million
Net profit/(loss)                                                        
for the period                                                           
from continuing           EUR    286     166   (184)     606    (24)
operations            million
Net profit/(loss)                                                        
for the period            EUR    603     172   (180)     963   (363)
                      million
Earnings per share                                                       
from continuing           EUR   1.58    0.91  (1.01)    3.34  (0.14)
operations
Earnings per share        EUR   3.33    0.94  (0.99)    5.31  (2.01)
Net cash generated from                                                  
operating activities      EUR   (82)    (24)     206    (35)     459
                      million
Net interest-bearing                                                     
debt at end of period     EUR  1 300   1 560   1 537   1 300   1 537
                      million
Debt-to-equity ratio                                                     
at end of period            %   42.3    66.4    74.5    42.3    74.5
Return on capital           %   36.5    24.3  (21.4)    20.7     1.3
employed
Capital expenditure,                                                   
continuing operations     EUR    74      45      53     187     164
                      million
Stainless steel    1 000 tons   445     393     370   1 815   1 647
deliveries
Average personnel                                                        
for the period,                                                          
continuing operations         8 187   8 665   9 186   8 505   9 579
                                                                      

YEAR 2006 IN BRIEF

- 2006 was an excellent year in the stainless steel market,
particularly in Europe, driven by strong demand from end-use
industries and a significant recovery in the stainless distribution
sector. After the heavy de-stocking phase in the latter part of
2005, the markets turned into a rapid rise in the beginning of 2006.
Global market for stainless steel is estimated to have increased by
15% in 2006.

- Stainless steel base prices soared throughout the year as a result
of strong demand and supply constraints. According to CRU, the
German base price for CR 304 sheet almost doubled from its lowest-
ever level of 1 030 EUR/ton at the end of 2005 to 1 980 EUR/ton in
December 2006, averaging 1470 EUR/ton for the year. Transaction
prices were boosted by extremely high nickel prices. The price of
nickel, the main alloying element in stainless steel, rose strongly
from 13 380 USD/ton at the end of 2005 to 34 205 USD/ton by the end of
2006.

- In addition to strong markets, the internal improvement
initiatives started in 2005 contributed to the Group’s financial
performance. The Sheffield coil products unit was closed in April
and the Group’s fixed-cost reduction program was completed as
planned by the end of 2006. The longer-term Commercial and
Production Excellence programs progressed well and will
significantly improve both the operations and financial results of
the Group in future years.

- Outokumpu’s sales increased by 23% from the previous year to EUR
6 154 million. Stainless steel deliveries increased by 10% to
1 815 000 tons, which together with high transaction prices boosted
sales.

- Operating profit totaled EUR 824 million, the highest ever in the
Group’s history. The main driver was soaring base prices. Higher
deliveries, significant nickel-related inventory gains and the
internal performance improvement initiatives also contributed to
increased profits.

- Net cash generated from operating activities was EUR 35 million
negative. Mainly due to extremely high nickel prices, EUR 975
million was tied up in working capital. Capital expenditure during
the year totaled EUR 187 million.

- As a result of the strong financial performance and the sale of
the shares in Outokumpu Technology, the Group’s financial position
improved significantly. Targets for profitability and financial
strength were clearly achieved. The return on capital employed rose
to 20.7% and gearing improved to 42.3%.


THE FOURTH QUARTER IN BRIEF

- Demand for stainless steel was strong in Europe and base prices
continued to rise. According to CRU, the German base price for cold
rolled 304 sheet increased by 340 EUR from September to 1 980
EUR/ton in December.

- The Group’s sales for October-December rose to EUR 1 907 million,
an increase of 32% over the previous quarter. Deliveries were up by
13% to 445 000 tons. Operating profit reached a new quarterly record
of EUR 378 million. Higher deliveries after the third-quarter
maintenance breaks, the solid increase in base prices, somewhat
higher nickel-related inventory gains and support from internal
performance improvement initiatives all contributed to the
outstanding financial performance.

- The Group’s vision of becoming the undisputed number one in
stainless steel was reinforced when 88% of the shares in Outokumpu
Technology were sold and the company was listed on the Helsinki
Stock Exchange in October. Following the sale, Outokumpu is
practically a pure stainless steel player. Net proceeds from the
sale of shares totaled EUR 449 million and the gain from the sale
was EUR 328 million. The transaction resulted in Outokumpu
Technology being classified as a discontinued operation in the
Group’s third quarter interim report.


SHORT-TERM OUTLOOK

Global economic growth is expected to remain solid in 2007.
Confidence in the European manufacturing sector remains at a high
level indicating good demand for stainless steel. Following the
extremely strong demand, increasing prices and tight supply of
stainless steel in 2006, the year 2007 in Europe has started with
slightly increased price levels but better stainless steel
availability and distributor inventories approaching normal levels.

The underlying demand for stainless steel is expected to continue
firm. As to the standard volume products, the market with the
European distributors is currently somewhat more cautious than in
the previous quarters due to the high transaction prices and
increased imports from Asia attracted by better price levels in
Europe. However, the markets within the key end-use industries,
special grades and project deliveries remain strong. In addition,
high nickel price and volatility are risks to a balanced development
of stainless market. The nickel prices have been on a new upward
rally in early 2007. The high transaction prices of stainless steel
and uncertainty about the nickel price development appear to be
making further stock build-up unlikely.

Outokumpu has achieved small base price increases for deliveries
during the first two months of 2007 leading to 100-150 EUR/ton
higher average base prices in Europe for the first quarter
deliveries compared to the fourth quarter in 2006. All the Group`s
units are fully booked for the first quarter, but order backlogs for
standard grades are currently somewhat lower than during the
previous months and lead times closer to normal levels. The Group´s
operational profitability will improve in the first quarter whereas
nickel-related inventory gains are likely to be smaller than during
the preceding two quarters. Outokumpu`s first quarter operating
profit is estimated to be at the record fourth quarter 2006 level.


CEO Juha Rantanen:

"I am very pleased and proud of our performance last year. We made a
record financial result and met our key financial goals on
profitability and financial strength. We also delivered the short-
term performance improvement actions – fixed cost reduction by EUR
100 million and the closure of the Sheffield coil products unit – in
line with the demanding targets we set ourselves at the end of 2005.
We still have a way to go towards our vision of becoming “the
undisputed number one in stainless” and thus our key priorities for
2007 are increased customer focus, strengthening of the
competitiveness of our operations and starting to seek growth
opportunities."



MANAGEMENT ANALYSIS OF THE FOURTH-QUARTER OPERATING RESULT


Group key figures                                                 
                                                                  
EUR million                          I/05 II/05 III/05  IV/05   2005
Sales                                                             
General Stainless                   1 286 1 158    813    816  4 073
Specialty Stainless                   785   819    584    552  2 739
Other operations                       55    71     70     76    272
Intra-group sales                   (732) (605)  (404)  (328) (2 068)
The Group                           1 394 1 442  1 063  1 117  5 016
                                                                  
Operating profit                                                  
General Stainless                      71    93   (55)  (170)   (62)
Specialty Stainless                    55    65     14   (23)    110
Other operations                        9   (3)     10    (8)      8
Intra-group items                     (6)     3      5    (1)      1
The Group                             129   157   (26)  (202)     57
                                                                  
Stainless steel deliveries                                       
                                                                 
1 000 tons                           I/05 II/05 III/05  IV/05   2005
Cold rolled                           233   226    195    212    867
White hot strip                       135   126     61     68    391
Other                                 117   106     77     89    390
Total deliveries                      485   459    333    370  1 647
                                                                  
Market prices and exchange rates                                 
                                                                  
                                     I/05 II/05 III/05  IV/05   2005
Market prices 1)                                                  
Stainless steel                                                  
  Base price                 EUR/t  1 332 1 217  1 113  1 035  1 174
  Alloy surcharge            EUR/t    875   956  1 012    923    942
  Transaction price          EUR/t  2 207 2 173  2 125  1 958  2 116
                                                                  
Nickel                       USD/t 15 348 16 411 14 567 12 649 14 744
                             EUR/t 11 704 13 031 11 941 10 644 11 851
Ferrochrome (Cr-content)    USD/lb   0.78  0.78   0.73   0.68   0.74
                            
                            EUR/kg   1.31  1.37   1.32   1.26   1.32
                            
Molybdenum                  USD/lb  32.02 35.62  31.74  30.66  32.51
                            
                            EUR/kg  53.84 62.35  57.37  56.89  57.61
                            
Recycled steel               USD/t    221   193    208    193    204
                             EUR/t    169   153    170    162    164
                                                                 
Exchange rates                                                    
EUR/USD                             1.311 1.259  1.220  1.188  1.244
EUR/SEK                             9.074 9.208  9.366  9.473  9.282
EUR/GBP                             0.694 0.679  0.683  0.680  0.684
                                                                  
                                                                  
                                                                  
Group key figures                                                 
                                                                  
EUR million                          I/06 II/06 III/06  IV/06   2006
Sales                                                             
General Stainless                   1 013 1 066  1 130  1 561  4 770
Specialty Stainless                   650   638    614    821  2 723
Other operations                       87    93     96     85    361
Intra-group sales                   (342) (405)  (394)  (560) (1 700)
The Group                           1 408 1 392  1 447  1 907  6 154
                                                                  
Operating profit                                                  
General Stainless                      43    91    166    236    536
Specialty Stainless                    22    65     81    171    338
Other operations                        2   (8)   (13)   (16)   (35)
Intra-group items                     (0)     1    (3)   (13)   (15)
The Group                              67   149    231    378    824
                                                                  
Stainless steel deliveries                                        
                                                                  
1 000 tons                           I/06 II/06 III/06  IV/06   2006
Cold rolled                           286   239    200    211    936
White hot strip                       104   103     80    103    390
Other                                 121   125    113    131    490
Total deliveries                      510   467    393    445  1 815
                                                                  
Market prices and exchange rates                                 
                                                                  
                                     I/06 II/06 III/06  IV/06   2006
Market prices 1)                                                  
Stainless steel                                                   
  Base price                 EUR/t  1 127 1 342  1 572  1 840  1 470
  Alloy surcharge            EUR/t    844 1 020  1 437  2 064  1 341
  Transaction price          EUR/t  1 971 2 362  3 009  3 904  2 811
                                                                  
Nickel                       USD/t 14 810 19 925 29 154 33 129 24 254
                             EUR/t 12 318 15 836 22 878 25 707 19 317
Ferrochrome (Cr-content)    USD/lb   0.63  0.70   0.75   0.78   0.72
                            
                            EUR/kg   1.16  1.23   1.30   1.33   1.26
                           
Molybdenum                  USD/lb  23.38 25.01  26.47  25.56  25.10
                            
                            EUR/kg  42.86 43.82  45.79  43.73  44.08
                            
Recycled steel               USD/t    200   238    243    239    230
                             EUR/t    167   189    191    185    183
                                                                  
Exchange rates                                                    
EUR/USD                             1.202 1.258  1.274  1.289  1.256
EUR/SEK                             9.352 9.298  9.230  9.135  9.254
EUR/GBP                             0.686 0.688  0.680  0.673  0.682
                                                                  

1) Sources of market prices:
Stainless steel: CRU - German base price, alloy surcharge and
transaction price (2 mm cold rolled 304 sheet), estimates for
deliveries during the period
Nickel: London Metal Exchange (LME) cash quotation
Ferrochrome: Metal Bulletin - Ferrochrome lumpy chrome charge, basis
52% chrome
Molybdenum: Metal Bulletin - Molybdenum oxide - Europe
Recycled steel: Metal Bulletin - Steel scrap HMS 1&2 fob Rotterdam


Steep upward trend in base prices

Good development in stainless steel markets continued in the fourth
quarter. Demand for stainless steel was strong in Europe and prices
rose even though Asian exports of stainless steel to Europe
increased. Global apparent consumption of stainless steel flat
products increased by some 9% from the previous quarter and was 22%
higher than in the fourth quarter in 2005, respective figures for
Europe being 13% and 32%. The supply of stainless steel in Europe
continued to be affected by production constraints. According to
CRU, the base price for 304 cold rolled stainless steel sheet in
Germany rose strongly from 1 640 EUR/ton in September to 1 980
EUR/ton in December. The average German base price during the
quarter was 1 840 EUR/ton, up by 17% from the level in the previous
quarter.

Prices for the main alloying materials used in the production of
stainless steel continued high. The price of nickel reached a high
for the year at 35 455 USD/ton in mid-December, and the average
price in the fourth quarter was 33 129 USD/ton, 14% up on the
previous quarter. In the beginning of 2007, the nickel price set
successive new records and exceeded 41 000 USD/ton in late January.
The average price of ferrochrome was 0.78 USD/lb, up by 4% from the
previous quarter. The price of molybdenum fell by 3% to 25.56
USD/lb, but was still at a historically high level. The price of
recycled steel fell by 2%. The alloy surcharge has increased month-
on-month throughout 2006. According to CRU, the alloy surcharge for
304 cold rolled stainless steel sheet in Germany was 2 156 EUR/ton
in December, 33% up on the 1 620 EUR/ton it was in September.
Together with soaring base prices, this resulted in the highest-ever
stainless steel transaction prices during the fourth quarter.

Good progress in performance improvement initiatives

The improvement programs targeting operational excellence are
progressing well and have already achieved tangible results.

A total of eighteen plants are currently involved in implementation
of the Production Excellence program. Each plant is running several
improvement projects of varying size. To date, some 220 improvement
teams have either completed or have a project ongoing, with a total
of nearly 1 000 people involved.

In the Commercial Excellence program, a common pricing methodology
and associated tools are being developed. Training of key account
managers continued. To date, 167 members of Outokumpu’s sales staff
have participated in training and the number of training days now
totals 786.

Benefit follow-up procedures have been established and the combined
benefits from the Operational Excellence programs are expected to
total EUR 40 million in 2007, EUR 80 million in 2008 and EUR 160
million on an annual basis thereafter.

The fixed-cost reduction program, with targeted annual savings of
EUR 100 million, was completed as planned by the end of 2006. The
reduced fixed cost running rate has materialized gradually during
the latter part of 2006 and will be in full effect in 2007. The
Sheffield coil products unit was closed in April and the resulting
annual profit improvement of EUR 50 million started to realize
during the second half of 2006.

Highest-ever quarterly operating profit

The Group’s sales in the fourth quarter totaled EUR 1 907 million,
32% up on the previous quarter. Deliveries of stainless steel
increased by 13% to 445 000 tons. Sales rose as a result of higher
transaction prices and deliveries, and the Group recorded its
highest-ever quarterly operating profit of EUR 378 million, an
increase of 64% compared to the previous quarter. The solid rise in
base prices, higher deliveries, nickel-related inventory gains and
the internal profit improvement measures all contributed to this
outstanding result. The amount of inventory gains exceeded somewhat
the respective gains in the third quarter.

General Stainless – soaring base prices and increased deliveries
boosted profits

General Stainless                                      
                                                       
EUR million                I/05 II/05 III/05 IV/05   2005
Sales                     1 286 1 158    813   816  4 073
of which Tornio Works       699   657    476   467  2 299
                                                       
Operating profit             71    93   (55) (170)   (62)
of which Tornio Works        59    74   (36)  (48)     49
                                                         
Operating capital                                        
at the end of period      2 920 2 901  2 820 2 484  2 484
                                                         
Deliveries of main                                       
products (1 000 tons)                                  
Cold rolled                 210   183    162   179    734
White hot strip             102    89     41    53    284
Other                       238   192    105    97    631
Total deliveries                                         
of the division             550   463    307   329  1 649
                                                       


                                                       
EUR million                I/06 II/06 III/06 IV/06   2006
Sales                     1 013 1 066  1 130 1 561  4 770
of which Tornio Works       652   740    781 1 142  3 316
                                                       
Operating profit             43    91    166   236    536
of which Tornio Works        37    70    120   213    440
                                                         
Operating capital                                        
at the end of period      2 397 2 404  2 602 2 847  2 847
                                                         
Deliveries of main                                       
products (1 000 tons)                                  
Cold rolled                 246   206    172   180    805
White hot strip              74    85     62    84    305
Other                       128   144    126   154    551
Total deliveries                                         
of the division             448   434    360   419  1 661


Sales by General Stainless increased by 38% and deliveries were 16%
up on the previous quarter. Operating profit rose to EUR 236
million, an increase of 42%. The significant improvement in profit
resulted from both increased deliveries and higher base prices.
Operating profit included a non-recurring gain of EUR 9 million from
the sale of real estate in Britain. Tornio Works posted an excellent
operating profit of EUR 213 million. Inventory gains due to the
timing differences between the alloy surcharge and inventory
turnover were quite moderate.

Specialty Stainless – good performance and further inventory gains

Specialty Stainless                                   
                                                      
EUR million                I/05 II/05 III/05 IV/05   2005
Sales                       785   819    584   552  2 739
                                                         
Operating profit             55    65     14  (23)    110
                                                         
Operating capital                                        
at the end of period      1 248 1 358  1 310 1 161  1 161
                                                         
Deliveries of main                                       
products (1 000 tons)                                    
Cold rolled                  44    54     43    47    188
White hot strip              57    43     30    30    160
Other                       148   148     89    71    455
Total deliveries                                         
of the division             249   245    162   148    803
                                                       

                                                       
                                                       
EUR million                I/06 II/06 III/06 IV/06   2006
Sales                       650   638    614   821  2 723
                                                         
Operating profit             22    65     81   171    338
                                                         
Operating capital                                        
at the end of period      1 173 1 240  1 350 1 594  1 594
                                                         
Deliveries of main                                       
products (1 000 tons)                                    
Cold rolled                  56    54     39    47    196
White hot strip              49    41     33    42    166
Other                        76    79     67    73    294
Total deliveries                                         
of the division             182   173    139   162    656
                                                       



Sales by Specialty Stainless increased by 34% and deliveries were
17% higher than in the third quarter. Operating profit more than
doubled to EUR 171 million, including EUR 8 million of write-downs
and non-recurring costs connected with the planned closure of OSTP’s
(Outokumpu Stainless Tubular Products) unit in Fagersta, Sweden.
Main contributors to the improved profit were higher prices and
deliveries and also significant nickel-related inventory gains. Even
though prices for project-related and special products are generally
more stable than those for standard products, the rate of price
increases in project-related and special products clearly
accelerated during the latter part of 2006. In Specialty Stainless,
inventory turnover is slower than in big volume standard products
due to the more specialized production process with longer lead
times. Units in Specialty Stainless are therefore more sensitive to
inventory gains and losses.

Other operations


Other operations                                       
                                                       
EUR million                I/05 II/05 III/05 IV/05   2005
Sales                        55    71     70    76    272
                                                         
Operating profit              9   (3)     10   (8)      8
                                                         
Operating capital                                        
at the end of period         34    43     37   139    139
                                                         

                                                       
                                                       
EUR million                I/06 II/06 III/06 IV/06   2006
Sales                        87    93     96    85    361
                                                         
Operating profit              2   (8)   (13)  (16)   (35)
                                                         
Operating capital                                        
at the end of period        133   239    188   138    138
                                                       


Other operations consists of activities outside the Group’s primary
businesses as well as industrial holdings. Business development
costs and expenses associated with Group functions that are not
allocated to business units are also reported under Other
operations.

The result posted by Other operations in the fourth quarter included
net market price losses of EUR 16 million (III/2006: net market
price gains EUR 4 million).


The attachments present a summary of the Review by the Board of
Directors for 2006 as well as extracts from the financial
statements.

This report is unaudited.


For further information, please contact:

Kari Lassila, SVP – IR and Communications, tel. +358 9 421 2555
kari.lassila@outokumpu.com

Eero Mustala, SVP – Corporate Communications, tel. +358 9 421 2435
eero.mustala@outokumpu.com

Esa Lager, CFO, tel +358 9 421 2516
esa.lager@outokumpu.com





News conference and live web cast today at 3.00 pm

A combined news conference, conference call and live webcast
concerning the 2006 financial statements will be held on February 1,
2007 at 3.00 pm Finnish time (8.00 am US EST, 1.00 pm UK time, 2.00
pm CET) at Hotel Kämp, conference room Mirror Room, Pohjoisesplanadi
29, 00100 Helsinki, Finland.

To participate via a conference call, please dial in 5-10 minutes
before the beginning of the event:

UK                                 +44 20 7162 0025
US & Canada                        +1 334 323 6201
Password:                           Outokumpu

The news conference can be viewed live via Internet at
www.outokumpu.com.

Stock exchange release and presentation material will be available
before the news conference at www.outokumpu.com -> Investors ->
Downloads

An on-demand webcast of the news conference will be available at
www.outokumpu.com as of February 1, 2007 at around 6.00 pm.

An instant replay service of the conference call will be available
until Monday February 5, 2007 on the following numbers:

UK replay number           +44 20 7031 4064, access code: 734 956
US & Canada replay number   +1 954 334 0342, access code: 734 956



OUTOKUMPU OYJ
Corporate Management

Ingela Ulfves
Vice President - Investor Relations
tel. + 358 9 421 2438, mobile +358 40 515 1531, fax +358 9 421 2125
e-mail: ingela.ulfves@outokumpu.com
www.outokumpu.com





Summary of the Review by the Board of Directors for 2006

Record profits and successful Outokumpu Technology IPO

A major step towards the Group’s vision of becoming the undisputed
number one in stainless steel was taken when Outokumpu sold 88% of
the shares in Outokumpu Technology and the company was listed on the
Helsinki Stock Exchange in October. Following the sale, Outokumpu is
practically a pure stainless steel player. The transaction
strengthened the Group’s financial position. The short-term internal
profitability improvement initiatives were completed as planned and
good progress was achieved in the longer-term Operational Excellence
programs. Outokumpu’s financial performance in 2006 was best-ever in
the company’s history.

The Group’s sales rose by 23% from the previous year to EUR 6 154
million. Stainless steel deliveries were up by 10% to 1 815 000 tons
and transaction prices reached a record high, boosting sales.
Operating profit totaled EUR 824 million. Contributors to this
excellent profit were increased base prices, higher deliveries,
significant nickel-related inventory gains and the Group’s internal
profitability improvement measures.

In 2006, mainly as a result of nickel prices increasing throughout
the year, EUR 975 million was tied up in working capital and the
Group’s working capital almost doubled to EUR 1 990 million. Net
cash generated from operating activities was therefore EUR 35
million negative in spite of the excellent profit.

Return on capital employed improved to 20.7% and gearing to 42.3%,
achieving the targets set. Earnings per share totaled EUR 5.31 and
earnings per share from continuing operations totaled EUR 3.34. The
Board of Directors is proposing to the Annual General Meeting that a
dividend of EUR 1.10 per share be paid for 2006 (2005: EUR 0.45).

2006 characterized by strong demand for stainless steel

2006 was an excellent year in the stainless steel market, supported
by strong demand from end-use industries, especially process
industry and energy sector, and a significant recovery in the
stainless distribution sector. After the heavy de-stocking phase in
the latter part of 2005, markets turned into a rapid rise in the
beginning of 2006. Global markets for stainless steel increased by
an estimated 15% during the year. According to CRU estimates,
apparent consumption rose by 17% in Europe, by 14% in the US and by
9% in China. Demand for special grade and project-related products
also strengthened during 2006.

Base prices for stainless steel soared throughout 2006 as a result
of strong demand and supply constraints. According to CRU, the
German base price for CR 304 sheet almost doubled from 1 030 EUR/ton
in December 2005 to 1 980 EUR/ton in December 2006. Transaction
prices were further boosted by extremely high nickel prices.

The strong recovery in stainless steel markets in 2006 resulted in
an upturn in demand for the main alloying elements used in the
production of stainless steel: nickel, ferrochrome and molybdenum.
The supply of nickel was also constrained because production volumes
were lower than planned. As a consequence, the price of nickel set
successive records during the year, rising from 13 380 USD/ton at
the end of 2005 to 34 205 USD/ton by the end of 2006. The average
price in 2006, 24 254 USD/ton, was 65% higher than the corresponding
figure for 2005. In the beginning of 2006, ferrochrome prices
declined as a result of production cuts in the stainless industry
implemented in the latter part of 2005. As 2006 progressed, markets
turned to undersupply as demand from stainless steel producers
accelerated. The average price of ferrochrome for the year was 0.72
USD/lb, 3% lower than in 2005. Despite decreasing by 23% in 2006,
molybdenum prices remained at a historically high level, averaging
25.10 USD/lb. The average price of recycled steel in 2006 was
230 USD/ton, 13% higher compared to 2005.

Higher transaction prices and deliveries increased sales

Sales                                                  
EUR million                             2006    2005  Change,
                                                            %
General Stainless                      4 770   4 073       17
Specialty Stainless                    2 723   2 739      (1)
Other operations                         361     272       33
Intra-group sales                    (1 700) (2 068)     (18)
The Group                              6 154   5 016       23
                                                             
                                                               
Stainless steel deliveries                                     
1 000 tons                              2006    2005  Change,
                                                            %
Cold rolled                              936     867        8
White hot strip                          390     391      (0)
Other                                    490     390       26
Total deliveries                       1 815   1 647       10
                                                               

The Group’s sales increased by 23% to EUR 6 154 million in 2006. In
2005, sales by Specialty Stainless included some EUR 400 million of
intra-group semi-products delivered by Avesta to the Sheffield coil
products unit, which until the closure was part of General
Stainless. The Group’s stainless steel deliveries rose by 10%.
Deliveries of both quarto plate and tubular products increased by
some 10% and black hot coil deliveries by 50 000 tons. In addition
to higher deliveries, the increase in transaction prices throughout
2006 contributed to the rise in sales.

Europe’s share of the Group’s sales increased to 76% in 2006 (2005:
69%). Asia’s and the Americas’ share declined to 11% (2005: 16%) and
10% (2005:12%), respectively.

Record operating profit

Operating profit                                               
EUR million                             2006    2005   Change
General Stainless                        536    (62)      597
Specialty Stainless                      338     110      228
Other operations                        (35)       8     (44)
Intra-group items                       (15)       1     (16)
Operating profit                         824      57      766
                                                             
Share of results                                             
in associated companies                    8       1        7
Financial income and expenses           (48)    (67)       19
Profit/(loss) before taxes               784     (8)      792
Income taxes                           (178)    (16)    (162)
Net profit/(loss), continuing            606    (24)      630
operations
Net profit/(loss), discontinued          357   (339)      696
operations
Net profit/(loss) for the period         963   (363)    1 326
                                                             
Return on capital employed, %           20.7     1.3     19.4
Earnings per share                                           
from continuing operations, EUR         3.34  (0.14)     3.48
Earnings per share, EUR                 5.31  (2.01)     7.32
                                                             

The record operating profit of EUR 824 million was a result of the
solid rise in base prices throughout the year, higher deliveries,
significant nickel-related inventory gains and internal profit-
improvement measures. Operating profit included a non-recurring gain
of EUR 9 million from the sale of real estate in Britain as well as
write-downs and non-recurring costs of EUR 8 million related to the
planned closure of the OSTP’s (Outokumpu Stainless Tubular Products)
unit in Fagersta, Sweden. In 2005, the Group’s operating profit
included the negative net impact of EUR 164 million from non-
recurring costs related to the closure of Sheffield coil products
unit and measures taken as part of the fixed-cost reduction program,
as well as the EUR 35 million gain from the sale of Boliden shares.

As a result of strong demand, all Outokumpu’s units ran at full load
during 2006. Rising base prices for stainless steel were realized
more rapidly in prices for Outokumpu’s standard grade volume
products than in the prices of more specialized and project-related
products. General Stainless posted an operating profit of EUR 536
million and Specialty Stainless EUR 338 million.

Return on capital employed was 20.7%, clearly exceeding the Group’s
target of more than 13%.

The Group’s share of results in associated companies rose to EUR 8
million as a result of good performance by Fagersta Stainless AB, a
Swedish producer of stainless steel long products. Net financial
expenses declined to EUR 48 million, including EUR 12 million net
gains (2005: EUR 1 million net losses) related to exchange rate
gains and losses on financial instruments and changes in fair values
of interest rate derivatives. Net interest expenses fell slightly to
EUR 62 million as a result of the reduction in net interest-bearing
debt. Due to the good result, taxes increased to EUR 178 million and
the Group’s effective tax rate was 23%. Net profit for the period
from continuing operations totaled EUR 606 million and from
discontinued operations EUR 357 million. The Group’s earnings per
share was EUR 5.31, with earnings per share from continuing
operations EUR 3.34 and from discontinued operations EUR 1.97.

Capital structure strengthened

Key indicators on financial position                
EUR million                             2006    2005
Net interest-bearing debt                           
     Long-term debt                    1 293   1 624
     Current debt                        685     556
Total interest-bearing debt            1 977   2 179
Interest-bearing assets                (515)   (511)
Net assets held for sale               (162)   (132)
Net interest-bearing debt              1 300   1 537
                                                    
Shareholders' equity                   3 054   2 047
Debt-to-equity ratio, %                 42.3    74.5
Equity-to-assets ratio, %               47.9    38.2
Net cash generated                                  
from operating activities               (35)     459
Net interest expenses                     62      65
                                                    

Excellent financial performance and the sale of shares in Outokumpu
Technology resulted in a significant strengthening of the Group’s
financial position. Net interest-bearing debt declined by EUR 237
million to EUR 1 300 million. At the end of 2006, the Group’s equity-
to-assets ratio stood at 47.9%. Gearing improved further to 42.3%,
distinctly better than the target of below 75%.

The Group´s net cash generated from operating activities was,
however, EUR 35 million negative. Inventory volumes are under tight
control and average throughput time was reduced during 2006.
However, working capital increased by EUR 975 million to EUR 1 990
million, mainly because of fast increasing nickel prices.

Capital expenditure within limits

Capital expenditure                                 
EUR million                             2006    2005
General Stainless                         83      94
Specialty Stainless                       95      58
Other operations                           9      13
The Group                                187     164
                                                    
Depreciation                             221     207
                                              

The Group's short-term profitability improvement program includes
tight capital expenditure discipline. The operational going concern
capital expenditure limit was set at EUR 175 million annually for
2006-2007. In 2006, capital expenditure was, as expected, slightly
higher due to delayed phasing and rollovers from 2005. It was,
however, clearly below the annual depreciation level. Capital
expenditure on possible growth opportunities will be assessed
separately.

Capital expenditure totaled EUR 187 million in 2006. The biggest
investments were the Kloster expansion and Tornio Works´ investment
in the production of ferritics stainless steel.

The EUR 55 million investment at the Kloster Thin Strip in Sweden
has been completed. The investment expands the mill's annual
production capacity from 25 000 tons to 45 000 tons and enables the
production of thinner (0.12 mm) and wider (1 050 mm) products. The
investment comprises a new cold rolling mill, a bright annealing
line and a slitting line. Deliveries will start during the first
quarter of 2007.

To expand Outokumpu’s product offering, an investment of EUR 13
million in batch annealing furnaces for the production of ferritic
stainless steel in Tornio was started in 2005. Ferritic stainless
steel normally includes some 12-17% chromium, with the remainder
being iron. The price of ferritics, which do not contain any nickel,
has traditionally been less volatile than that of austenitic
stainless steel, Outokumpu’s main product. Tornio Works has a
competitive cost advantage in ferritics production as utilizing
liquid ferrochrome from its own smelter reduces melting costs.
Annual production capacity will be 60 000 tons of ferritic stainless
steel, and production will come on stream during the first quarter
2007. Deliveries are scheduled to begin in the second quarter of
2007.

Discontinued operations – Sale of Outokumpu Technology shares

In June 2006, the Board of Directors of Outokumpu Oyj decided to
start evaluating the possibility of listing Outokumpu Technology on
the Helsinki Stock Exchange. Outokumpu Technology is a global leader
in designing, developing and supplying tailored plants, processes
and equipment for the minerals and metals processing industries
worldwide. Outokumpu Technology has 1 800 employees and generated
sales of EUR 556 million in 2005.

In September, the Board decided to commence the offering of shares
in Outokumpu Technology. The transaction was sale of shares through
an Initial Public Offering (IPO), which commenced on September 26,
2006 and ended on October 9, 2006. Outokumpu Technology was listed
on the Helsinki Stock Exchange on October 10, 2006. In the offering,
Outokumpu Oyj sold 36 960 001 shares at EUR 12.50 per share and
Outokumpu’s remaining holding in Outokumpu Technology is 12%.
Outokumpu has agreed that it will not sell shares in Outokumpu
Technology Oyj without the consent of the global coordinator of the
offering until April 7, 2007. Outokumpu Technology was classified as
a discontinued operation in the third quarter interim report. Net
proceeds from the sale amounted to EUR 449 million and the capital
gain totaled EUR 328 million. Until disposal, the remaining holding
in Outokumpu Technology is an available-for-sale financial asset,
valued at fair value recognized directly in equity. On December 31,
2006, the fair value of Outokumpu’s 12% holding in Outokumpu
Technology Oyj totaled EUR 114 million.

In 2005, Outokumpu divested the Group’s fabricated copper products
business, excluding the copper tube and brass rod business in
Europe. It is Outokumpu’s intention to restructure and divest also
this business. In February 2006, Outokumpu sold Outokumpu Copper MKM
Ltd, a brass rod mill located in Aldridge in the UK, to The Meade
Corporation. In 2006, sales by the tube and brass businesses totaled
EUR 678 million with an operating profit of EUR 23 million.
Operating capital at the end of December totaled EUR 162 million.

The divested fabricated copper products business comprised, among
others, Outokumpu Copper (USA), Inc. This company has been served
with several complaints in cases filed in federal district courts
and state courts in the US by various plaintiffs. The complaints
allege claims and damages under US antitrust laws and purport to be
class actions on behalf of all direct and indirect purchasers of
copper plumbing tubes and ACR tubes in the US. Outokumpu believes
that the allegations in these cases are groundless and will defend
itself in any such proceeding. In connection with the transaction to
sell the fabricated copper products business to Nordic Capital,
Outokumpu has agreed to indemnify and hold harmless Nordic Capital
with respect to these class actions.

The EUR 357 million net profit from discontinued operations in the
Group’s income statement in 2006 comprises the operating result of
Outokumpu Technology for January-September, the operating result of
Outokumpu Copper Tube and Brass for the whole year, and the EUR 328
million gain on the sale of shares in Outokumpu Technology. In 2005,
the EUR 339 million loss recorded for discontinued operations
comprised the result of the fabricated copper products business
until disposal, the result of Outokumpu Technology and Tube and
Brass for the whole year, the EUR 252 million loss on the sale of
the fabricated copper products business, and the impairment loss of
EUR 86 million recognized in the tube and brass business.

Short-term profitability improvement initiatives completed as
planned

In the autumn of 2005, Outokumpu initiated decisive actions to
counter the then difficult market conditions and to improve
profitability and cash flow.

The Sheffield coil products unit in Britain was closed in April 2006
and capacity at the Sheffield melt shop and the Avesta hot rolling
mill was adjusted accordingly. Realization of the estimated annual
profit improvement totaling EUR 50 million began during the second
half of 2006.

The fixed-cost reduction program covers all business units and group
functions. The targeted annual savings are EUR 100 million, and the
program was completed as planned by the end of 2006. The reduced
fixed-cost running rate started to materialize gradually during the
latter part of 2006 and will be in full effect in 2007.

Good progress in the Commercial and Production Excellence programs

Operational excellence comprises the Commercial and Production
Excellence programs launched in April 2005. These programs are
progressing well and have already achieved tangible results.

Benefit follow-up systems have been established to identify the
costs, increased revenue and savings derived from the programs. The
expected benefits are included in targets for the Group’s incentive
schemes and the realized benefits will be audited. The combined
profit improvements from the Commercial Excellence and Production
Excellence programs are expected to total EUR 40 million in 2007,
EUR 80 million in 2008 and EUR 160 million on an annual basis
thereafter.

Risk management

The review and monitoring of key risks for each business unit was
further developed. The status of key risks and actions for risk
mitigation will be addressed regularly in performance management
meetings.

Outokumpu has classified risks that affect its operations into three
categories: risks relating to strategy and business, operational
risks and financial risks. Risks are assessed based on their
estimated impact and likelihood of occurrence. Key risks are further
described and addressed through more detailed analysis. This
analysis also involves definitions of risk mitigating actions and
responsibilities.

Environment, health and safety

Outokumpu’s stainless steel plants in Finland, Sweden and Britain
belong to the Greenhouse Gas emission trading system that started in
the European Union in 2005. Carbon dioxide allowances and associated
permits for the 2005-2007 period were granted free of charge to the
Tornio site in Finland and to the steel-making and casting plants at
Avesta and Degerfors in Sweden. The Sheffield melt shop in Britain
utilized the opt-out possibility provided by the British Climate
Change Levy system. Lower production volumes in 2005 and better-than-
estimated energy efficiency have resulted in the Group’s plants in
Finland and Sweden having surplus allowances. During 2006, Outokumpu
sold 415 000 tons of excess allowances for a total of EUR 7 million.
Preparations to apply for allowances in the 2008-2012 Kyoto period
are underway.

Emissions to air and discharges to water remained mostly within
permitted limits during 2006. All Outokumpu’s sites have valid
environmental permits in place. Sheffield Special Strip at
Meadowhall in Britain will complete external certification for its
ISO 14 001 environmental management systems in the spring of 2007.
After this, all the Group’s major production sites will have a
certified environmental management system. Outokumpu is not a party
in any significant juridical or administrative proceeding concerning
environmental issues, nor is it aware of any environmental risks
that could have a material adverse effect on the Group’s financial
position.

In 2006, the lost-time injury frequency rate (i.e. lost time
accidents per million working hours) in Outokumpu’s continuing
operations was 17 (2005: 18). Unsatisfactory safety performance
during the latter part of 2006 meant that the Group’s target of less
than 14 lost-time accidents per million working hours in 2006 was
not achieved. No fatal accidents at the Group’s facilities were
reported during 2006.

Outokumpu’s corporate responsibility report – Outokumpu and the
Environment 2006 – will be published together with the annual
report. The corporate responsibility report is based on the Global
Reporting Initiative (GRI).

Research and development

The Group’s expenditure on research and development in 2006 totaled
EUR 17 million or 0.3% of sales (2005: EUR 20 million and 0.4%). The
R&D function employed almost 200 professionals. In addition to new
products, R&D operations focus on innovative manufacturing processes
that reduce costs, result in lower emissions, shorten lead times and
improve quality. These initiatives are closely linked to the
Production Excellence program.

Optimum process parameters and product properties for standard
ferritic grades have been studied intensively at production scale.
Outokumpu is ready to start production of ferritics once the new
batch annealing furnaces in Tornio are operational.

Launch of the semi-cold-rolled RAPTM2E product was successful, with
a favorable reception amongst customers. Special grades are one of
the Group’s key focus areas, and include high-alloyed corrosion-
resistant austenitic, duplex and heat-resistant alloys. Much effort
has been put into the development of duplex grades with a low nickel
content, since these offer a good combination of strength and
corrosion resistance. Demand for such materials has grown strongly
as a response to high nickel prices. Customers have shown growing
interest in LDX 2101®, Outokumpu’s own development of Lean Duplex.

R&D efforts have continued in two new application segments - the
transportation and automotive industries and the architecture,
building and construction (AB&C) sector. The high strength and good
formability of stainless steels has been the subject of further
study in such applications. The lower structural weight and low life-
cycle costs of stainless steel make it an excellent substitute for
many other materials.

The main subject of environmental research in 2006 was slag
utilization. Slag from steel melting shops can be transformed into a
suitable material for roads and construction beds, replacing virgin
materials. Development of the Hydroflux process to utilize processed
pickling sludge in steel melting shops continued.

Personnel

Personnel                                              
Dec. 31                                 2006    2005   Change
General Stainless                      3 496   4 123    (627)
Specialty Stainless                    4 200   4 334    (135)
Other operations                         464     506     (42)
The Group                              8 159   8 963    (804)


During 2006, a Strategic Leadership Program (SLP) was initiated with
some 60 global managers as participants. The main target of the
program is to develop Outokumpu’s leadership behavior in ways that
support the execution of the Group’s strategy. SLP is an action-
learning program based on Outokumpu’s new leadership principles in
which the focus is on learning to lead people in ways that help, for
example, the excellence programs succeed and achieve sustainable
improvements.

An assessment of the Group’s management resources was conducted
during 2006. Harmonized performance appraisal and reward models for
application in all Group units were developed and have been in use
from the beginning of 2007.

The Outokumpu Personnel Forum held its 15th meeting in Terneuzen,
the Netherlands. The Group Working Committee, a forum for continuous
dialogue between personnel and management, met eight times during
2006.

At the end of the year, the Group’s continuing operations employed
8 159 people in some 30 countries. The average number of personnel
employed by the Group in 2006 was 8 505 (2005: 9 579). The net
reduction in number of personnel since the profitability improvement
measures were initiated in October 2005 is 1 250 employees. The
reductions agreed were 670 employees as a result of the closure of
Coil Products Sheffield and 800 employees as a consequence of the
fixed-cost reduction program. There was however a slight increase in
the number of personnel employed by the Group following the
investment in expansion at Kloster, Sweden. The rapid increase in
stainless steel demand also resulted in personnel reductions in some
units being less than planned.

Personnel expenses totaled EUR 506 million (2005: EUR 556 million).
EUR 13 million (2005: -) of profit-sharing bonuses in accordance
with the Finnish Personnel Funds Act has been accrued.

Annual General Meeting and Board of Directors

The Annual General Meeting (AGM) held on March 30, 2006 approved a
dividend of EUR 0.45 per share for 2005. Dividends totaling EUR 81
million were paid on April 11, 2006.

The AGM authorized the Board of Directors for one year to increase
the Company’s share capital with a total maximum of EUR 30 800 000
by issuing new shares or convertible bonds. Accordingly, an
aggregate maximum of 18 117 647 shares, having the account
equivalent value of EUR 1.70 each, may be issued. The AGM authorized
the Board of Directors for one year to repurchase and transfer the
Company’s own shares. The maximum number of shares to be repurchased
and transferred is 18 000 000. The number of own shares in the
Company’s possession may not exceed 10% of the total amount of the
Company’s shares. By February 1, 2007, the authorizations had not
been exercised.

The AGM decided on the number of Board members, including the
Chairman and Vice Chairman, to be eight (previously ten). For the
term expiring at the close of the following AGM, Mr. Evert Henkes,
Mr. Jukka Härmälä, Mr. Ole Johansson, Mr. Juha Lohiniva, Ms. Anna
Nilsson-Ehle, Ms. Leena Saarinen and Ms. Soili Suonoja were re-
elected as members of the Board of Directors, and Mr. Taisto Turunen
was elected as a new member. Mr. Jukka Härmälä was elected Chairman
of the Board of Directors and Mr. Ole Johansson Vice Chairman. The
AGM also resolved to form a Shareholders’ Nomination Committee to
prepare proposals on the composition and remuneration of the Board
of Directors for presentation to the next AGM.

KPMG Oy Ab, Authorized Public Accountants, was elected as the
Company’s new auditor for the term ending at the close of the next
AGM.

At its first meeting, the Board of Directors appointed two permanent
committees consisting of board members. Mr. Ole Johansson
(Chairman), Ms. Leena Saarinen and Mr. Taisto Turunen were elected
as members of the Board Audit Committee. Mr. Jukka Härmälä
(Chairman), Mr. Evert Henkes and Ms. Anna Nilsson-Ehle were elected
as members of the Board Nomination and Compensation Committee.

Shareholders’ Nomination Committee

Outokumpu's AGM 2006 decided to establish a Shareholders' Nomination
Committee to prepare proposals on the composition of the Board of
Directors along with director remuneration for the following AGM.
The members represent Outokumpu’s four largest registered
shareholders on November 1, 2006, which accepted the assignment.
Members of the committee are: Mr. Markku Tapio (Chairman),
representing the Finnish State, Mr. Jorma Huuhtanen, representing
the Finnish Social Insurance Institution, Mr. Harri Saila,
representing Ilmarinen Mutual Pension Insurance Company and Mr.
Risto Murto, representing the Varma Mutual Pension Insurance
Company. Mr. Jukka Härmälä, the Chairman of Outokumpu's Board of
Directors, served as an expert member. The Shareholders' Nomination
Committee submitted its proposals to the Board of Directors on
February 1, 2007.

Short-term outlook

Global economic growth is expected to remain solid in 2007.
Confidence in the European manufacturing sector remains at a high
level indicating good demand for stainless steel. Following the
extremely strong demand, increasing prices and tight supply of
stainless steel in 2006, the year 2007 in Europe has started with
slightly increased price levels but better stainless steel
availability and distributor inventories approaching normal levels.

The underlying demand for stainless steel is expected to continue
firm. As to the standard volume products, the market with the
European distributors is currently somewhat more cautious than in
the previous quarters due to the high transaction prices and
increased imports from Asia attracted by better price levels in
Europe. However, the markets within the key end-use industries,
special grades and project deliveries remain strong. In addition,
high nickel price and volatility are risks to a balanced development
of stainless market. The nickel prices have been on a new upward
rally in early 2007. The high transaction prices of stainless steel
and uncertainty about the nickel price development appear to be
making further stock build-up unlikely.

Outokumpu has achieved small base price increases for deliveries
during the first two months of 2007 leading to 100-150 EUR/ton
higher average base prices in Europe for the first quarter
deliveries compared to the fourth quarter in 2006. All the Group`s
units are fully booked for the first quarter, but order backlogs for
standard grades are currently somewhat lower than during the
previous months and lead times closer to normal levels. The Group´s
operational profitability will improve in the first quarter whereas
nickel-related inventory gains are likely to be smaller than during
the preceding two quarters. Outokumpu`s first quarter operating
profit is estimated to be at the record fourth quarter 2006 level.

Board of Directors’ proposal for profit distribution

In accordance with the Board of Directors’ established dividend
policy, the payout ratio over a business cycle should be at least
one-third of the company’s profit for the period. In its annual
dividend proposal to the Annual General Meeting, the Board of
Directors will, in addition to the Group’s financial results, take
into consideration the company’s investment and development needs.

The Board of Directors is proposing to the Annual General Meeting to
be held on March 28, 2007 that a dividend of EUR 1.10 per share be
paid from the parent company’s distributable funds on December 31,
2006 and that any remaining distributable funds be allocated to
retained earnings. The suggested dividend record date is April 2,
2007 and the dividend will be paid on April 11, 2007.

According to the financial statements at December 31, 2006,
distributable funds of the parent company totaled EUR 731 million.
No material changes have taken place in the company´s financial
position after the balance sheet date and the proposed dividend does
not compromise the company´s financial standing.


Espoo, February 1, 2007

Board of Directors


                                                               
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)                  
                                                               
Condensed income statement                                     
                                                      Jan-Dec Jan-Dec
EUR million                                              2006    2005
Continuing operations:                                                
Sales                                                   6 154   5 016
Other operating income                                     44      83
Costs and expenses                                    (5 364) (4 947)
Other operating expenses                                 (11)    (94)
Operating profit                                          824      57
                                                                     
Share of results in associated companies                    8       1
Financial income and expenses                                        
  Net interest expenses                                  (62)    (65)
  Market price gains and losses                            12     (1)
  Other financial income and expenses                       3       0
Profit before taxes                                       784     (8)
                                                                     
Income taxes                                            (178)    (16)
Net profit/(loss) for the period from continuing          606    (24)
operations
                                                                     
Discontinued operations:                                             
Net profit/(loss) for the period from discontinued        357   (339)
operations
                                                               
Net profit/(loss) for the period                          963   (363)
                                                              
Attributable to:                                              
Equity holders of the Company                             962   (364)
Minority interest                                           2       1
                                                              
Earnings per share for profit attributable                    
to the equity holders of the Company:                         
Earnings per share, EUR                                  5.31  (2.01)
Diluted earnings per share, EUR                          5.29  (2.01)
                                                              
Earnings per share from continuing operations                 
attributable to the equity holders of the Company:            
Earnings per share, EUR                                  3.34  (0.14)
                                                              
Earnings per share from discontinued operations               
attributable to the equity holders of the Company:            
Earnings per share, EUR                                  1.97  (1.87)
                                                                     



All figures in the accounts have been rounded and consequently the
sum of individual figures can deviate from the presented sum figure.



Condensed balance sheet                          
                                         Dec 31    Dec 31
EUR million                                2006      2005
ASSETS                                           
Non-current assets                               
Intangible assets                           493       578
Property, plant and equipment             2 069     2 125
Non-current financial assets                             
  Interest-bearing                          375       262
  Non interest-bearing                       77        45
                                          3 014     3 009
Current assets                                           
Inventories                               1 710     1 186
Current financial assets                                 
  Interest-bearing                           55        37
  Non interest-bearing                    1 314       841
Cash and cash equivalents                    85       212
                                          3 164     2 277
                                                         
Assets held for sale                        235       221
                                                         
Total assets                              6 414     5 507
                                                         
EQUITY AND LIABILITIES                                   
Equity                                                   
Equity attributable to the                               
equity holders of the Company             3 054     2 047
Minority interest                            17        15
                                          3 071     2 062
Non-current liabilities                                  
Interest-bearing                          1 293     1 624
Non interest-bearing                        337       319
                                          1 630     1 943
Current liabilities                                      
Interest-bearing                            685       556
Non interest-bearing                        955       857
                                          1 640     1 413
                                                         
Liabilities related to assets held           73        89
for sale
                                                         
Total equity and liabilities              6 414     5 507



Consolidated statement of changes in                        
equity
                                                              
                                                                
   Attributable to the equity holders of the company             
                                      Un-                        
                                      Regis-                     
                                    -
                                      tered   Share              
                              Share   share  premium Other   Fair
                                                            value
EUR million                   capitalcapital  fund  reserves    
                                                          reserves
Equity on December 31, 2004      308     -     700     13       15
Cash flow hedges                   -     -       -      -        6
Fair value gains on                                       
available-for-sale                                        
financial assets                   -     -       -      -        3
Net investment hedges              -     -       -      -        -
Change in translation                                             
differences                        -     -       -      -        -
Items recognised                                                  
directly in equity                 -     -       -      -        9
Net loss for the period            -     -       -      -        -
Total recognised income                                           
and expenses                       -     -       -      -        9
Dividend distribution              -     -       -      -        -
Management stock option                                           
program:
value of received services         -     -       -      -        -
Transfer of treasury shares        -     -       1      -        -
Effect of the sale of                                             
the fabricated                                                    
copper products business           -     -       -      -        -
Other changes                      -     -       -    (1)        -
Equity on December 31, 2005      308     -     701     11       23
Cash flow hedges                   -     -       -      -      (3)
Fair value gains on                                       
available-for-sale                                        
financial assets                   -     -       -      -      123
Net investment hedges              -     -       -      -        -
Change in translation                                             
differences                        -     -       -      -        -
Items recognised                                                  
directly in equity                 -     -       -      -      121
Net profit for the period          -     -       -      -        -
Total recognised                                                  
income and expenses                -     -       -      -      121
Unregistered share capital         -     0       -      -        -
Dividend distribution              -     -       -      -        -
Management stock option                                           
program:
value of received services         -     -       -      -        -
Equity on December 31, 2006      308     0     701     11      144
                                                              
Consolidated statement of changes in                        
equity
                                                              
   Attributable to the equity holders of the company             
                                      Cumu-                      
                                      lative                     
                                      trans-                     
                                      lation                     
                              Treasury diffe- Retained MinorityTotal
                                                 
EUR million                   shares  rences earnings interest equity
                                              
Equity on December 31, 2004      (5)  (59)   1 496     38    2 506
Cash flow hedges                   -     -       -      -        6
Fair value gains on                                       
available-for-sale                                        
financial assets                   -     -       -      -        3
Net investment hedges              -     1       -      -        1
Change in translation                                     
differences                        -    19       -      0       19
Items recognised                                          
directly in equity                 -    20       -      0       29
Net loss for the period            -     -   (364)      1    (363)
Total recognised                                          
income and expenses                -    20   (364)      1    (334)
Dividend distribution              -     -    (91)      -     (91)
Management stock option                                           
program:
value of received services         -     -       3      -        3
Transfer of treasury shares        3     -       -      -        4
Effect of the sale of                                     
the fabricated                                            
copper products business           -     -       -   (24)     (24)
Other changes                      -     -       -      -      (1)
Equity on December 31, 2005      (2)  (38)   1 044     15    2 062
Cash flow hedges                   -     -       -      -      (3)
Fair value gains on                                       
available-for-sale                                        
financial assets                   -     -       -      -      123
Net investment hedges              -   (2)       -      -      (2)
Change in translation              -     6       -      0        6
differences
Items recognised                                          
directly in equity                 -     4       -      0      125
Net profit for the period          -     -     962      2      963
Total recognised income                                   
and expenses                       -     4     962      2    1 088
Unregistered share capital         -     -       -      -        0
Dividend distribution              -     -    (81)      -     (81)
Management stock option                                           
program:
value of received services         -     -       2      -        2
Equity on December 31, 2006      (2)  (35)   1 927     17    3 071
                                                              


                                                        
Condensed statement of cash flows                       
                                               Jan-Dec  Jan-Dec
EUR million                                       2006     2005
Net profit/(loss) for the period                   963    (363)
Adjustments                                                    
  Depreciation and amortization                    229      232
  Impairments                                       12      165
  Gain on the sale of Outokumpu Technology       (328)        -
shares
  Loss on the sale of the                                      
  fabricated copper products business                -      252
  Other adjustments                                215       95
(Increase)/decrease in working capital           (975)      202
Dividends received                                   7        7
Interests received                                  17       21
Interests paid                                    (89)     (93)
Income taxes paid                                 (87)     (58)
Net cash from operating activities                (35)      459
Purchases of assets                              (183)    (245)
Proceeds from the sale of subsidiaries             338      489
Proceeds from the sale of                                      
shares in associated companies                       9      290
Proceeds from the sale of other assets              20       13
Net cash from other investing activities            14       18
Net cash from investing activities                 198      565
Cash flow before financing activities              163    1 024
Borrowings of long-term debt                       174      136
Repayment of long-term debt                      (380)    (454)
Increase/(decrease) in current debt                  3    (600)
Dividends paid                                    (81)     (91)
Other financing cash flow                          (2)     (22)
Net cash from financing activities               (286)  (1 032)
Adjustments                                          0        2
Net change in cash and cash equivalents          (123)      (6)
                                                               
Cash and cash equivalents at                                   
the beginning of the financial year                212      211
Foreign exchange rate effect                       (5)        7
Net change in cash and cash equivalents          (123)      (6)
Cash and cash equivalents at                                   
the end of the financial year                       85      212
                                                        
                                                        
Key figures                                                
                                               Jan-Dec  Jan-Dec
EUR million                                       2006     2005
Operating profit margin, %                        13.4      1.1
Return on capital employed, %                     20.7      1.3
Return on equity, %                               37.5   (15.9)
Return on equity from continuing operations,      23.6    (1.1)
%
                                                               
Capital employed at end of period                4 371    3 599
Net interest-bearing debt at end of period       1 300    1 537
Equity-to-assets ratio at end of period, %        47.9     38.2
Debt-to-equity ratio at end of period, %          42.3     74.5
                                                               
Earnings per share, EUR                           5.31   (2.01)
Earnings per share from continuing                3.34   (0.14)
operations, EUR
Earnings per share from discontinued              1.97   (1.87)
operations, EUR
Average number of shares outstanding, in       181 033  181 031
thousands 1)
Fully diluted earnings per share, EUR             5.29   (2.01)
Fully diluted average                                          
number of shares, in thousands 1)              181 758  181 140
Equity per share at end of period, EUR           16.87    11.31
Number of shares outstanding at end of                         
period,
in thousands 1)                                181 032  181 032
                                                               
Capital expenditure, continuing operations         187      164
Depreciation, continuing operations                221      207
Average personnel for                                          
the period, continuing operations                8 505    9 579
                                                        

1) The number of own shares repurchased is excluded.



NOTES TO THE INCOME STATEMENT AND BALANCE SHEET

Use of estimates

The preparation of the financial statements in accordance with IFRS
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, as well as the
disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of income and
expenses during the reporting period. Accounting estimates are
employed in the financial statements to determine reported amounts,
including the realizability of certain assets, the useful lives of
tangible and intangible assets, income taxes, provisions, pension
obligations, impairment of goodwill and other items. Although these
estimates are based on management’s best knowledge of current events
and actions, actual results may differ from the estimates.

Amended and new International Financial Reporting Standards (IFRS)
as of January 1, 2006

Outokumpu has adopted the following amended and new standards as of
January 1, 2006:
IAS 39 Financial Instruments: Recognition and Measurement:
Amendments after March 31, 2004:
- Cash flow hedges of forecast intra group transactions, issued on
April 14, 2005, effective date January 1, 2006.
- Fair value option, issued on June 16, 2005, effective date January
1, 2006.
- Financial guarantee contracts, issued on August 18, 2005,
effective date January 1, 2006.
The adoption of these amendments has not had material effect on the
Group’s financial statements.

Amendment to IAS 19 Employee Benefits - Actuarial Gains and Losses,
Group Plans and Disclosures, issued on December 16, 2004, effective
date January 1, 2006. The amendment introduces the option of an
alternative recognition approach for actuarial gains and losses. It
also adds new disclosure requirements. As the Group does not intend
to change the accounting policy adopted for recognition of actuarial
gains and losses, adoption of this amendment will only impact the
format and extent of disclosures presented in the accounts.

IFRIC 4 Interpretation: Determining whether an Arrangement contains
a Lease, issued on December 2, 2004, effective date January 1, 2006.
The adoption of this interpretation has not had material effect on
the Group’s financial statements.

Shares and share capital

The total number of Outokumpu Oyj shares was 181 250 555 and the
share capital amounted to EUR 308.1 million on December 31, 2006.
Outokumpu Oyj held 218 603 treasury shares on December 31, 2006 with
a total account equivalent value of EUR 0.4 million. This
corresponded to 0.1% of the share capital and the total voting
rights of the Company on December 31, 2006.

The Annual General Meeting held in 2003 passed a resolution on a
stock option program for management (2003 option program). The stock
options have been allocated as part of the Group's incentive
programs to key personnel of Outokumpu. Trading with Outokumpu Oyj's
stock options 2003A has commenced on the Main List of the Helsinki
Stock Exchange as of September 1, 2006. By the end of year 2006 a
total of 33 323 Outokumpu Oyj shares had been subscribed for on the
basis of 2003A stock option program. An aggregate maximum of 625 979
Outokumpu Oyj shares can be subscribed for with the remaining 2003A
stock options. In accordance with the terms and conditions of the
option program, the dividend adjusted share price for a stock option
was EUR 9,55 at the end of 2006. The share subscription period for
the 2003A stock options is September 1, 2006 - March 1, 2009.

The current amounts that Outokumpu Oyj shares could be subscribed
for with the 2003B and 2003C stock options are as follows: 2003B 1
028 820 shares and 2003C 87 500 shares. The subscription period for
shares with stock option 2003B is from September 1, 2007 to March 1,
2010 and with stock option 2003C it is from September 1, 2008 to
March 1, 2011. As a result of the share subscriptions with the 2003
stock options, Outokumpu Oyj’s share capital may be increased by a
maximum of EUR 2 961 908 and the number of shares by a maximum of 1
742 299 shares. This corresponds to 1.0% of the Company's shares and
voting rights.

Outokumpu’s Board of Directors confirmed on February 2, 2006 a share-
based incentive program for years 2006-2010 as part of the key
employee incentive and commitment system of the Company. If persons
to be covered by the first earning period 2006-2008 of the program
were to receive the number of shares in accordance with the maximum
reward, currently a total of 394 600 shares, their shareholding
obtained via the program would amount to 0.2% of the Company’s
shares and voting rights.

The detailed information of the 2003 option program and of the share-
based incentive program for 2006-2010 can be found in the annual
report.

Non-current assets held for sale and discontinued operations

Outokumpu Technology

In June 2006, the Board of Directors of Outokumpu Oyj decided to
start evaluating the possibility of listing Outokumpu Technology on
the Helsinki Stock Exchange. Outokumpu Technology is a global leader
in designing, developing and supplying tailored plants, processes
and equipment for the minerals and metals processing industries
worldwide. Outokumpu Technology has 1800 employees and generated
sales of EUR 556 million in 2005.

On September 25, 2006, the Board decided to commence the offering of
shares in Outokumpu Technology. The offering structure was a sale of
shares through an Initial Public Offering (IPO). The offering
commenced on September 26, 2006 and ended on October 9, 2006. In the
offering Outokumpu Oyj sold 36 960 001 shares at EUR 12.50 per share
and Outokumpu Oyj’s remaining holding in Outokumpu Technology is
12%. Outokumpu Technology was classified as a discontinued operation
at the end of September. Net proceeds from the sale amounted to some
EUR 449 million and the capital gain from the sale to EUR 328
million. Until disposal, the remaining holding in Outokumpu
Technology is an available-for-sale financial asset, valued at fair
value recognized directly in equity. On December 31, 2006 the fair
value of Outokumpu’s 12% holding in Outokumpu Technology totaled EUR
114 million.

Outokumpu Copper Tube and Brass

On April 5, 2005 Outokumpu and Nordic Capital signed a sales and
purchase agreement according to which Outokumpu sold its fabricated
copper products business to Nordic Capital. The sale was finalized
on June 7, 2005. The scope of the transaction comprised the
following businesses of the former Outokumpu Copper business area:
Americas, Europe, Automotive Heat Exchangers, Appliance Heat
Exchanger & Asia, including 100% of Outokumpu Heatcraft, and the
Forming equipment businesses. Sales in 2004 by the divested
businesses totaled EUR 1 684 million and the number of personnel was
6 400 at the year-end. Outokumpu Copper Tube and Brass business was
excluded from the transaction and comprises European sanitary and
industrial tubes, including air-conditioning and refrigeration tubes
in Europe, as well as brass rod. The assets and liabilities of
Outokumpu Copper Tube and Brass are presented as held for sale.
Outokumpu is implementing a vigorous improvement project in its
existing copper tube and brass business and it is Outokumpu’s
intention to divest the tube and brass business.

On February 27, 2006 Outokumpu sold its brass rod mill, Outokumpu
Copper MKM Ltd, located in Aldridge in the UK, to The Meade
Corporation. The total consideration of the transaction was some EUR
20 million. The production capacity of Outokumpu Copper MKM Ltd is
some 40 000 tonnes of brass rod and its sales in 2005 amounted to
some EUR 70 million. It employs 320 people.
In July and October 2006 Outokumpu sold three minor companies with
insignificant effect on Outokumpu Copper Tube and Brass’ result.

In the following tables Outokumpu Technology is referred to as OT,
Outokumpu Tube and Brass as TB and Outokumpu Copper as OC.


                                                                        
Specification of non-current
assets held for sale and
discontinued operations


                                                                         
Income statement                                                         
                                      Jan-Dec              Jan-Dec
                                        2006                 2005
EUR million                      Total     OT    TB   Total     OT    OC
Sales                            1 178    501   678   1 477    556   921
Expenses                        (1 124)  (470) (654)      (1  (531) (927)
                                                       458)
Operating profit                    54     31    23      19     25   (6)
Net financial items                (2)      5   (7)     (8)      3  (10)
Profit/(loss) before taxes          53     36    17      11     28  (16)
Taxes                             (17)   (14)   (3)    (13)    (9)   (4)
Profit/(loss) after taxes           35     22    14     (1)     19  (20)
                                                                         
Gain on the sale of                                                      
Outokumpu Technology               328    328     -       -      -     -
Impairment loss recognized                                              
on the fair valuation of                                                 
the Tube and Brass                                                       
division's assets and              (6)      -   (6)    (86)      -  (86)
liabilities
Loss on the sale of the                                                 
fabricated copper products           -      -     -   (252)      - (252)
business
Taxes                                -      -     -       -      -     -
After-tax result from the                                               
disposal and impairment loss       322    328   (6)   (338)      - (338)
                                                                        
Minority interest                    0      0     -     (1)    (0)   (1)
Net profit/(loss) for the                                               
period
from discontinued operations       357    349     8   (339)     19 (360)
                                                                         
Balance sheet                                                            
                                                               
                                Dec 31 Dec 31                  
EUR million                      2006   2005                            
Assets                                                                   
Intangible and tangible assets       6      9                           
Other non-current assets             4      4                           
Inventories                        122    113                           
Other current non                                                       
interest-bearing assets            104     95                           
                                   235    221                           
Liabilities                                                             
Provisions                           3      7                           
Other non-current                                                       
non interest-bearing                 6     17                           
liabilities
Trade payables                      46     49                           
Other current                                                           
non interest-bearing                18     17                           
liabilities
                                    73     89                           
                                                                         
Cash flows                                                               
                                Jan-Dec Jan-Dec                            
EUR million                       2006   2005                            
Operating cash flows              (13)    (6)                            
Investing cash flows             (145)   (83)                            
Financing cash flows                80    132                            
Total cash flows                  (77)     42                            
                                                                         




Major non-recurring items in operating              
profit
                                   Jan-Dec Jan-Dec 
EUR million                           2006    2005 
Gain on sale of real estate in           9       - 
Britain
OSTP Fagersta closure                  (8)       - 
Gain on the sale of the Boliden          -      35 
shares
Fixed cost reduction program             -    (34) 
Coil Products Sheffield closure          -   (130) 
                                         1   (129) 
                                                   
Income taxes                                       
                                   Jan-Dec Jan-Dec 
EUR million                           2006    2005 
Current taxes                        (156)    (63) 
Deferred taxes                        (22)      47 
                                     (178)    (16) 
                                                     
Commitments                                          
                                    Dec 31  Dec 31 
EUR million                           2006    2005 
Mortgages and pledges                                
Mortgages on land                      126      94 
Other pledges                            0       8 
                                                   
Guarantees                                         
On behalf of subsidiaries                            
  For commercial commitments            97      77 
On behalf of associated companies                    
  For financing                          5       4 
                                                   
Other commitments                       59      65 
                                                   
Minimum future lease                               
payments on operating leases            93     120 
                                                     
                                                     
Fair values  and nominal amounts of derivative     
instruments
                                    Dec 31  Dec 31   Dec 31
                                      2006    2006     2006
                                  Positive Negative      Net
EUR million                           fair    fair     fair
                                     value   value    value
Currency and interest                                      
rate derivatives                                     
  Currency forwards                     10      19      (9)
  Interest rate swaps                   10       -       10
                                                     
                                                     
Metal derivatives                                    
  Forward and futures                                
  copper contracts                       1       2      (1)
  Forward and futures                                      
  nickel contracts                       9       0        9
  Forward and futures                                      
  zinc contracts                         0       0        0
                                                     
                                                     
Electricity derivatives                              
  Publicly traded                                    
  electricity derivatives                0       0        0
  Other electricity derivatives         17       9        8
                                        48      31       16
                                                     
                                                     
                                    Dec 31     Dec      Dec
                                      2005    2006     2005
                                       Net Contract Contract
EUR million                           fair amounts  amounts
                                     value
Currency and interest                                      
rate derivatives                                    
  Currency forwards                    (1)   2 139    1 796
  Interest rate swaps                    3     283      432
                                                   
                                              Tons     Tons
Metal derivatives                                  
  Forward and futures                              
  copper contracts                     (1)   6 000   33 775
  Forward and futures                              
  nickel contracts                       1   3 636    1 608
  Forward and futures                              
  zinc contracts                         0   2 150    1 300
                                                   
                                               TWh      TWh
Electricity derivatives                            
  Publicly traded                                  
  electricity derivatives                1     0.0      0.1
  Other electricity derivatives         13     4.1      4.6
                                        15          
                                                     






Income statement by                                   
quarter
                                                      
EUR million                I/05 II/05 III/05 IV/05  2005
Continuing operations:                                 
Sales                     1 394 1 442 1 063 1 117 5 016
                                                       
Operating profit            129   157  (26) (202)    57
                                                       
Share of results                                       
in associated companies     (1)     2   (0)     0     1
Financial income and       (13)  (22)  (19)  (13)  (67)
expenses
Profit/(loss) before        115   137  (45) (215)   (8)
taxes
Income taxes               (19)  (37)    10    31  (16)
Net profit/(loss)                                      
for the period                                         
from continuing              96    99  (36) (184)  (24)
operations
                                                       
Net profit/(loss)                                      
for the period                                         
from discontinued         (340)   (3)   (0)     4 (339)
operations
Net profit/(loss)                                      
for the period            (244)    97  (36) (180) (363)
                                                       
Attributable to:                                       
Equity holders of the     (245)    96  (36) (179) (364)
Company
Minority interest             1     1     0   (1)     1
                                                       


                                                      
                                                      
EUR million                I/06 II/06 III/06 IV/06  2006
Continuing operations:                                 
Sales                     1 408 1 392 1 447 1 907 6 154
                                                       
Operating profit             67   149   231   378   824
                                                       
Share of results                                       
in associated companies       0     2     1     4     8
Financial income and        (7)  (10)  (18)  (13)  (48)
expenses
Profit/(loss) before         60   141   214   369   784
taxes
Income taxes               (18)  (29)  (48)  (83) (178)
Net profit/(loss)                                      
for the period                                         
from continuing              41   112   166   286   606
operations
                                                       
Net profit/(loss)                                      
for the period                                         
from discontinued            15    20     6   317   357
operations
Net profit/(loss)                                      
for the period               56   133   172   603   963
                                                       
Attributable to:                                       
Equity holders of the        56   132   171   603   962
Company
Minority interest           (0)     0     1     1     2


Major non-recurring items in operating                 
profit
                                                       
EUR million                 I/05 II/05 III/05 IV/05  2005
General Stainless                                      
    Gain on sale of                                    
 real estate in Britain       -     -     -     -     -
 Coil Products                                         
 Sheffield closure            -     -     - (127) (127)
 Fixed cost                                            
 reduction program            -     -     -  (11)  (11)
Specialty Stainless                                    
 OSTP Fagersta closure        -     -     -     -     -
 Fixed cost                                            
 reduction program            -     -     -  (21)  (21)
Other operations                                       
    Coil Products                                      
 Sheffield closure            -     -     -   (3)   (3)
 Fixed cost                                            
 reduction program            -     -     -   (3)   (3)
 Gain on the sale of                                   
 the Boliden shares          25     -    10     -    35
                             25     -    10 (164) (129)

                                                       
                                                       
EUR million                 I/06 II/06 III/06 IV/06  2006
General Stainless                                      
    Gain on sale of                                    
 real estate in Britain       -     -     -     9     9
 Coil Products                                         
 Sheffield closure            -     -     -     -     -
 Fixed cost                                            
 reduction program            -     -     -     -     -
Specialty Stainless                                    
 OSTP Fagersta closure        -     -     -   (8)   (8)
 Fixed cost                                            
 reduction program            -     -     -     -     -
Other operations                                       
    Coil Products                                      
 Sheffield closure            -     -     -     -     -
 Fixed cost                                            
 reduction program            -     -     -     -     -
 Gain on the sale of                                   
 the Boliden shares           -     -     -     -     -
                              -     -     -     1     1



Key figures by quarter                                            
                                                                  
EUR million                              I/05   II/05   III/05   IV/05
Operating profit margin, %                9.2    10.9    (2.4)  (18.1)
Return on capital employed, %            11.6    15.6    (2.6)  (21.4)
Return on equity, %                    (41.0)    17.2    (6.4)  (33.5)
Return on equity, continuing             16.1    17.6    (6.3)  (34.2)
operations, %
                                                                      
Capital employed at end of period       3 953   4 084    3 981   3 599
Net interest-bearing debt at end of     1 695   1 822    1 744   1 537
period
Equity-to-assets ratio at end of         35.5    37.2     38.7    38.2
period, %
Debt-to-equity ratio at end of           75.0    80.6     77.9    74.5
period, %
                                                                      
Earnings per share, EUR                (1.35)    0.53   (0.20)  (0.99)
Earnings per share                                                    
from continuing operations, EUR          0.53    0.54   (0.20)  (1.01)
Earnings per share                                                    
from discontinued operations, EUR      (1.88)  (0.01)   (0.00)    0.02
Average number of shares                                              
outstanding, in thousands 1)          180 901 181 032  181 032 181 032
Equity per share at end of period,      12.39   12.41    12.27   11.31
EUR
Number of shares outstanding                                      
at end of period, in thousands 1)     181 032 181 032  181 032 181 032
                                                                      
Capital expenditure, continuing            29      46       37      53
operations
Depreciation, continuing operations        51      52       52      53
Average personnel for                                                 
the period, continuing operations       9 645   9 973    9 877   9 186
                                                                  
                                                                  
                                                                  
                                                                  
Key figures by quarter                                            
                                                                  
EUR million                              I/06   II/06   III/06   IV/06
Operating profit margin, %                4.7    10.7     16.0    19.8
Return on capital employed, %             7.5    16.5     24.3    36.5
Return on equity, %                      11.0    25.2     30.4    89.0
Return on equity, continuing              8.1    21.4     29.4    42.3
operations, %
                                                                      
Capital employed at end of period       3 513   3 679    3 910   4 371
Net interest-bearing debt at end of     1 483   1 509    1 560   1 300
period
Equity-to-assets ratio at end of         37.4    38.4     37.7    47.9
period, %
Debt-to-equity ratio at end of           73.0    69.5     66.4    42.3
period, %
                                                                      
Earnings per share, EUR                  0.31    0.73     0.94    3.33
Earnings per share                                                    
from continuing operations, EUR          0.23    0.62     0.91    1.58
Earnings per share                                                    
from discontinued operations, EUR        0.08    0.11     0.03    1.75
Average number of shares                                              
outstanding, in thousands 1)          181 032 181 032  181 032 181 037
Equity per share at end of period,      11.14   11.91    12.89   16.87
EUR
Number of shares outstanding                                      
at end of period, in thousands 1)     181 032 181 032  181 032 181 032
                                                                      
Capital expenditure, continuing            33      34       45      74
operations
Depreciation, continuing operations        50      50       68      52
Average personnel for                                                 
the period, continuing operations       8 746   8 822    8 665   8 187
                                                                  
1) The number of own shares repurchased is excluded.

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