Annual Report 2010 - Outokumpu

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During 2010, Outokumpu's net interest-bearing debt increased by EUR 647 million and totalled EUR 1 837 million at the
end of 2010 (31 Dec 2009: EUR 1 191 million). Outokumpu's gearing at the end of the year was at 77.3% (31 Dec 2009:
48.6%), somewhat above the Group's stated target of less than 75%. At the end of 2010, Outokumpu's equity-to-assets
ratio was 42.2% (31 Dec 2009: 50.6%).
In June, Outokumpu issued a EUR 250 million five-year domestic bond. The funds are used for general corporate
purposes. The bond is listed on the NASDAQ OMX Helsinki stock exchange. At the end of 2010, Outokumpu had
committed undrawn credit facilities totalling approximately EUR 1 billion. Committed credit facilities include a three-year
EUR 900 million revolving credit facility signed in June 2009.
Capital expenditure and investment projects
Capital expenditure
€ million 2010 2009 2008
General Stainless 73 129 332
Specialty Stainless 69 93 170
Other operations 19 26 45
The Group 161 248 547
Depreciation and amortisation 235 214 206
Capital expenditure by the Group in 2010 totalled EUR 161 million (2009: EUR 248 million) and covered both
maintenance and ongoing investment projects. The largest investments were connected with the Group's quarto plate
investment at New Castle in the US, a new acid regeneration plant at Avesta Works in Sweden, a new service centre in
China and the investment in Long Products' finishing facilities at Sheffield in the UK.
In June, Outokumpu opened a new service centre in China, the world's fastest-growing market for stainless steel. The
new Kunshan service centre represents an investment by the Group of some EUR 20 million, has an annual processing
capacity of some 30 000 tonnes of stainless steel and employs approximately 50 people. It supports Outokumpu's
Outokumpu Annual Report 2010 – Financial Statements – Review by the Board of Directors for 2010