EANS-Adhoc: RHI AG / Preliminary results 2011: RHI continues growth course

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Preliminary results 2011

06.03.2012

• Strong revenues in Q4 and EBIT according to guidance
• RHI divisions Steel and Industrial realize new
record revenues in 2011
• RHI increases dividend from EUR 0,5 up to EUR 0,75
• RHI invests EUR 170 million in 2012
• Solid year 2012 expected in a volatile market environment

2011 2010 +/- 2011Q4 2010Q4 +/-

Sales volume
(thousand tons) 1,948.3 1,786.7 9.0% 503.9 474.5 6.2%
in EUR million
Revenues 1,758.6 1,522.9 15.5% 477.9 400.9 19.2%
Steel Division 1,106.8 977.3 13.3% 281.5 256.9 9.6%
Industrial Division 613.9 517.8 18.6% 181.1 135.4 33.8%
Raw Materials
Division
External revenues 37.9 27.8 36.3% 15.3 8.6 77.9%
Internal revenues 170.4 137.4 24.0% 39.6 35.7 10.9%
Operating result1) 148.6 138.8 7.1% 40.2 31.6 27.2%
Steel Division 70.1 62.7 11.8% 23.0 16.4 40.2%
Industrial Division 68.3 74.3 (8.1)% 20.6 22.1 (6.8)%
Raw Materials
Division 10.2 1.8 466.7% (3.4) (6.9) 50.7%
EBIT 150.9 126.0 19.8% 42.5 29.3 45.1%
Steel Division 71.5 61.7 15.9% 24.4 14.0 74.3%
Industrial Division 71.8 60.6 18.5% 24.1 20.1 19.9%
Raw Materials
Division 7.6 3.7 105.4% (6.0) (4.8) (25.0)%

1) before reversal of impairments/impairment losses and restructuring expenses

Business development
The RHI Group increased revenues by 15.5% to EUR 1,758.6 million in the year
2011 (previous year: EUR 1,522.9 million). The operating result rose by 7.1% to
EUR 148.6 million (previous year: EUR 138.8 million). Earnings before interest
and tax (EBIT) hence increased by nearly 20% to EUR 150.9 million (previous
year: EUR 126.0 million) and included expenses and income arising from the
reversal of impairments and restructuring of EUR 2.3 million, which are related
to the closure of two sites in EMEA and the sale of a plant in Canada. The RHI
Group´s profit thus rose from EUR 105.7 million in 2010 by approx. 15% to EUR
121.5 million in 2011. Cash flow from continuing operations amounted to EUR 86.2
million (previous year: EUR (84.9) million); free cash flow was positive at EUR
18.9 million despite a strong investment program.

The Steel Division benefited from the good development in the steel industry
especially in the first half of 2011, which, however, lost momentum in the
second half of the year. The Steel Division´s revenues of EUR 1,106.8 million
(previous year: EUR 977.3 million) exceeded the record year 2010 by more than
13%.
The division´s EBIT amounted to EUR 71.5 million after EUR 61.7 million in the
year 2010; the EBIT margin rose slightly from 6.3% to 6.5%.

With revenues of EUR 613.9 million (previous year: EUR 517.8 million), the
Industrial Division also realized the highest revenues in company history. The
business units nonferrous metals and environment, energy, chemicals recorded new
record revenues. The division´s EBIT was increased by roughly 19% to EUR 71.8
million, while the EBIT margin of 11.7% exactly matched the level of the year
2010.

The Raw Materials Division recorded good capacity utilization throughout the
entire year 2011. The focus in the year 2011 was placed on the backwards
integration of raw materials and was reflected in the acquisitions in Ireland
and Norway and in the expansion of the plant in Turkey.

Balance sheet
The company´s equity was increased by approx. 37% to EUR 438.9 million (previous
year: EUR 320.9 million); the equity ratio amounted to 26% (previous year:
22.2%) at the balance sheet date. Net debt mounted to EUR 361.5 million at
December 31, 2011 due to acquisitions (previous year: EUR 341.0 million). The
Management Board of RHI AG intends to propose a dividend of EUR 0,75 per share
to the Annual General Meeting on May 3, 2012.

Outlook

Q1/2012 In comparison with the fourth quarter of 2011, RHI expects
slightly lower revenues in the Steel Division in the first quarter of
2012; in the Industrial Division, RHI expects revenues to fall
substantially short of the exceptionally strong fourth quarter of
2011. Hence the EBIT margin will be slightly lower than in the fourth
quarter of 2011.

Whole year 2012 Despite the uncertain economic environment, RHI
expects good revenues for the whole year 2012, which will be at the
level of the year 2011. The persisting good investment climate should
be able to compensate a temporary downturn on the steel side. The
EBIT margin in the year 2012 should exceed that of 2011 due to the
higher backwards integration of magnesia-based raw materials and the
improved cost structure. The RHI group will invest roughly EUR 170
million in 2012, with the main part flowing into the expansion of raw
materials supply in Norway and Turkey as well as the creation and
extension of capacity in Brazil and China.

All data given for 2011 are preliminary, the final result and the
consolidated balance sheet 2011 will be published on March 27, 2012
following the approval of the financial statements by the Supervisory
Board.

Further inquiry note:
RHI AG
Investor Relations
Mag. Barbara Potisk-Eibensteiner
Tel: +43-1-50213-6123
Email: barbara.potisk@rhi-ag.com

end of announcement euro adhoc
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issuer: RHI AG
Wienerbergstrasse 9
A-1100 Wien
phone: +43 (0)50213-6123
FAX: +43 (0)50213-6130
mail: rhi@rhi-ag.com
WWW: http://www.rhi-ag.com
sector: Refractories
ISIN: AT0000676903
indexes: ATX Prime, ATX
stockmarkets: official market: Wien
language: English