Annual Report 2010 - Outokumpu

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206 Auditor's Report To the Annual General Meeting of Outokumpu Oyj We have audited the accounting records, the financial statements, the report of the Board of Directors, and the administration of Outokumpu Oyj for the year ended 31 December 2010. The financial statements comprise the consolidated statement of financial position, statement of income, statement of comprehensive income, statement of changes in equity and statement of cash flows, and notes to the consolidated financial statements, as well as the parent company's balance sheet, income statement, cash flow statement and notes to the financial statements. Responsibility of the Board of Directors and the Chief Executive Officer The Board of Directors and the Chief Executive Officer are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, as well as for the preparation of financial statements and the report of the Board of Directors that give a true and fair view in accordance with the laws and regulations governing the preparation of the financial statements and the report of the Board of Directors in Finland. The Board of Directors is responsible for the appropriate arrangement of the control of the company's accounts and finances, and the Chief Executive Officer shall see to it that the accounts of the company are in compliance with the law and that its financial affairs have been arranged in a reliable manner. Auditor's Responsibility Our responsibility is to express an opinion on the financial statements, on the consolidated financial statements and on the report of the Board of Directors based on our audit. The Auditing Act requires that we comply with the requirements of professional ethics. We conducted our audit in accordance with good auditing practice in Finland. Good auditing practice requires that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the report of the Board of Directors are free from material misstatement, and whether the members of the Board of Directors of the parent company and the Chief Executive Officer are guilty of an act or negligence which may result in liability in damages towards the company or have violated the Limited Liability Companies Act or the articles of association of the company. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements and the report of the Board of Directors. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of financial statements and report of the Board of Directors that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements and the report of the Board of Directors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion on the consolidated financial statements In our opinion, the consolidated financial statements give a true and fair view of the financial position, financial performance, and cash flows of the group in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. Outokumpu Annual Report 2010 – Financial Statements – Auditor's report
207 Opinion on the company's financial statements and the report of the Board of Directors In our opinion, the financial statements and the report of the Board of Directors give a true and fair view of both the consolidated and the parent company's financial performance and financial position in accordance with the laws and regulations governing the preparation of the financial statements and the report of the Board of Directors in Finland. The information in the report of the Board of Directors is consistent with the information in the financial statements. Other opinions We support the adoption of the financial statements. The proposal by the Board of Directors regarding the treatment of distributable funds is in compliance with the Limited Liability Companies Act. We support that the Board of Directors of the parent company and the Chief Executive Officer be discharged from liability for the financial period audited by us. Espoo, 1 February 2011 KPMG OY AB Mauri Palvi Authorised Public Accountant Outokumpu Annual Report 2010 – Financial Statements – Auditor's report
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Annual Report 2010
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Table of contents Outokumpu - an in
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Group Executive Committee .........
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1 Outokumpu - an international stai
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3 CEO's review 2010 was characteris
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5 Next steps The managerial agenda
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7 Group key figures 2010 2009 2008
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9 Strategic themes Outokumpu's stra
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11 Excel in operations Safe working
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13 Management discussion of financi
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15 € million Operating profit Gen
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17 When the additional ferrochrome
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19 also resulted in a substantial i
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21 Group earnings per share totalle
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23 € million Stainless steel base
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25 Developing Outokumpu's corporate
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27 A significant proportion of Outo
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29 Market position In recent decade
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31 amount of stainless steel consum
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33 General Stainless - high-quality
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35 An efficient, integrated single-
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37 chromium ore was found to extend
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39 Long Products Sheffield The Shef
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41 Specialty Stainless key figures
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43 Special Coil and Plate Special C
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45 Outokumpu Stainless Tubular Prod
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47 Group level functions Outokumpu'
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49 Headquarters in Belgium Outokump
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51 Expansion of our service centre
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53 Supply Chain Management Procurem
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55 50% compared to 2009. The ferroc
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57 Research and development Product
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59 perfectly safe for use in equipm
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61 Stainless is optimal for sustain
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63 Environmental goals and results
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65 Results 2010 Sheffield melt shop
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67 Until the beginning of 2009, sla
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69 Material balance Materials used,
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71 Improving waste handling and pre
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73 Primary actions included in the
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75 Despite of protective actions ag
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77 Stainless steel in innovations a
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79 Emissions and effluents One of O
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81 ficiation and clarification basi
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83 Water - a natural resource for c
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85 Water withdrawal and discharges
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87 studies monitoring the prevailin
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89 Environmental investments furthe
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91 Outokumpu and stakeholders The s
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93 Goals for 2011 Improve HR report
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95 Personnel facts and figures Outo
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97 The US 330 321 403 Others 33 33
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99 Open communication Employee moti
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101 Compensation and benefits Outok
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103 Developing our people through c
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105 Health and safety Health and sa
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107 Everyone deserves a safe workin
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109 We value our stakeholders' opin
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111 Outokumpu and our customers - a
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113 Current and future employees Bo
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115 our home market Europe, resulte
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117 Production employees are repres
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119 Public sector support, sponsori
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121 Regulatory framework Outokumpu
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123 General Meeting of Shareholders
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125 To make other proposals to Gene
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127 Board committees The Board of D
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129 The CEO and Deputy CEO The Chie
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131 Group Corporate Management Outo
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133 Vice Chairman of the Board, Soi
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135 Key aspects of internal control
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137 Controller meetings were organi
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139 Risk management Outokumpu opera
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141 Strategic and business risks St
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143 Operational risks Operational r
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145 Both these financial risks and
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147 Good level of environmental man
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149 Climate change is taken serious
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151 Ethics, corporate responsibilit
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153 Internal audit monitors complia
Page 161 and 162: 155 Outokumpu Annual Report 2010 -
Page 163 and 164: 157 Solidium Oy 56 440 597 30.8 The
Page 165 and 166: 159 Board authorisations Board Auth
Page 167 and 168: 161 Shares subscribed with 2003B op
Page 169 and 170: 163 programme for the earnings peri
Page 171 and 172: 165 Information for shareholders An
Page 173 and 174: 167 Stock exchange releases 2010 2
Page 175 and 176: 169 Members of the Executive Commit
Page 177 and 178: 171 Responsibility: HR strategy and
Page 179 and 180: 173 Board member: Marzac Investment
Page 181 and 182: 175 Based on its own assessment, Ou
Page 183 and 184: 177 Risk management 4.10 Processes
Page 185 and 186: 179 8 EN15 Species with extinction
Page 187 and 188: 181 Human Rights Investment agreeme
Page 189 and 190: 183 Fines for non-compliance PR9* c
Page 191 and 192: 185 Measurement techniques Economic
Page 193 and 194: 187 Days lost due to strikes is cal
Page 195 and 196: 189 • Tested the completeness, ac
Page 197 and 198: 191 8% from 2009. The clearly highe
Page 199 and 200: 193 Profitability Earnings per shar
Page 201 and 202: 195 During 2010, Outokumpu's net in
Page 203 and 204: 197 Outokumpu's strategic prioritie
Page 205 and 206: 199 Outokumpu is participating in t
Page 207 and 208: 201 Outokumpu has been systematical
Page 209 and 210: 203 completed in November 2010 and
Page 211: 205 Short-term outlook Following th
Page 215 and 216: 209 Diluted earnings per share, €
Page 217 and 218: 211 Retained earnings 1 365 1 735 N
Page 219 and 220: 213 Proceeds from sale of property,
Page 221 and 222: 215 Key financial figures of the Gr
Page 223 and 224: 217 Quarterly information Income st
Page 225 and 226: 219 Share-related key figures 2010
Page 227 and 228: 221 Definitions of key financial fi
Page 229 and 230: 223 Income statement of the parent
Page 231 and 232: 225 Share capital 311 309 Premium f
Page 233 and 234: 227 Disposals of intangible assets
Page 235: Outokumpu is a global leader in sta
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Annual Report 2010 - Outokumpu

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