DANIELI & C. OFFICINE MECCANICHE S.p.A.

Headquarters in Buttrio (UD) via Nazionale n. 41

Fully paid share capital of euro 81,304,566
Tax and Registration Number with the Register of Companies of Udine: 00167460302
www.danieli.com
PRESS RELEASE
DANIELI GROUP
Danielis Board of Directors met today, February 27, 2013, to examine and approve
the consolidated six-monthly financial report for the period ended December 31,
2012.
CONSOLIDATED SIX-MONTHLY REPORT FOR THE PERIOD ENDED 31.12.2012
drawn up according to IAS/IFRS international accounting principles
Half-year ended
(in millions of euro) 31/12/2012 31/12/2011 Variation
Revenues 1,295.3 1,531.4 -15%
Gross operating margin (EBITDA) 151.2 138.6 9%
EBIT 108.9 95.7 14%
Net profit attributable to the Group 77.5 97.4 -20%
Summary of results for the first six months
The Board of Directors has acknowledged the results of the Danieli Group for the first
six months of 2012/2013, which are in line with forecasts.
The profit for the period shows that the Plant Making segment (manufacture of
steelmaking plants and machines, including turnkey solutions) is in line with
forecasts, down 5% over the period ended December 31, 2011.
The Steel Making segment (production and sale of special steels by the subsidiary
Acciaierie Bertoli Safau S.p.A. - ABS) did not perform as well, feeling the effects of a
consistent drop in demand in Europe and Italy, hence a 39% decline in sales
However, the margins at ABS allowed the company to make a small profit, in spite of
the sharp drop in sales.
The Groups order book is stable at 3,297 million euro, with a slight increase over
June 30, 2012.
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Prospects for the Sector
World steel consumption is expected to grow by 2-3% per year for the next 5/7 years,
half of the 6-7% of the last 5/6 years.
In particular, this growth is expected to take place in China, India and the countries of
the Far East, decreasing slightly in Europe and increasing slightly in the Americas,
Russia, the Middle East and North Africa.
It follows that the demand for new plants in the next few years will be lower than in
the recent past.
On the other hand, there will be increased demand for restructuring/upgrading of
existing plants.
Summary of results by segment
(in millions
of euro)
Revenues Gross Operating Margin
(EBITDA)
Net Profit
31/12/2012 31/12/2011 Var. 31/12/2012 31/12/2011 Var. 31/12/2012 31/12/2011 Var.
Plantmak
ing 1,019.2 1,076.5 -5% 130.5 88.6 47% 76.8 81.9 -6%
Steelmak
ing 276.1 454.9 -39% 20.7 50.0 -59% 0.7 15.5 -95%
Total 1,295.3 1,531.4 -15% 151.2 138.6 9% 77.5 97.4 -20%
Despite the fact that the economic scenario is still depressed, the economic goals
stated by the Group at the beginning of the financial year will basically be confirmed.
The Danieli Groups investments have been approved, and this year they will mostly
be completed.
- Plant Making segment:
Investment of 30 million euro in the Buttrio (UD) workshops, to be completed
by the end of June 2013;
New Danieli research center in Buttrio (UD), to be completed by the end of
June 2013.
Startup of the factory and engineering offices of Danieli India Ltd. (Chennai,
India), March 2013;
Startup of the factory and engineering offices of Danieli Volga (Russia), June
2013;
- Steel Making Segment:
Upgrading of the Sisak plant in Croatia, August 2013;
Upgrading of the Blooming/Reversing Mill at Cargnacco (UD), August 2013;
Dimensional expansion and quality enhancement of products cast by Hercules
at Cargnacco (UD), December 2013.
ABS investment in the innovative rotoforge plant is still pending due to the lack of
guarantees on the availability of electrical energy in Italy, and because of the need
for a more thorough examination of the macroeconomic prospects of the Italian and
European target market.
3
Order Book
The Groups order book is well diversified according to geographical area and
product line and, for the period ended December 31, 2012, amounts to 3,297 million
euro (of which 149 million euro in the special steelmaking sector) compared to 3.225
million euro for the period ended June 30, 2012 (of which 173 million euro for special
steels). The Groups net financial position, which as of December 31, 2012, was
820.0 million euro (showing a decrease of 4.6 million euro over the figure of 824.6
million euro for the period ended June 30, 2012), will allow the Group to efficiently
and independently finance its investments in the steelmaking segment in Italy and
Croatia, and in the plantmaking segment in Italy, India, Russia, China, Thailand and
Vietnam.
Group Employees
At December 31, 2012, the Danieli Group employed 10,544 people, 507 more than
the period ended June 30, 2012.
Danieli Group activities
The Danieli Group, whose main operating companies are in Italy, Austria, China,
France, Germany, Japan, India, the Netherlands, the United Kingdom, Russia, Spain,
the United States, Sweden, Thailand and Vietnam, designs, manufactures and
installs machines and plants for the metals industry, including "turnkey" plants. Its
technologies and products cover the entire production cycle, from the mining of ore to
a broad range of finished products.
Danieli is one of the top three world manufacturers of plants and machines for the
steelmaking industry, leader in meltshops and plants for the production of long
products (these plants produce steel in an electric arc furnace sometimes from
direct reduced iron and in addition to being competitive in terms of Capex and
Opex, are also environment-friendly, if compared to integrated plants that use blast
furnaces and coke), and second in the manufacture of plants for the production of flat
products.
Not only is Danieli recognized for its capabilities as a plant designer, but also as a
plant manufacturer, hence the motto: we do not shop around for noble equipment.
The Danieli Group also has a steelmaking business in Acciaierie Bertoli Safau S.p.A.
(ABS) and ABS Sisak d.o.o. (ABS Sisak), which produce special steels for the
automotive industry, heavy-duty vehicles, engineering, energy and petroleum
industries. ABS is number one in Italy and one of the first in Europe in its field of
operation.
In Friuli-Venezia Giulia the Danieli Group provides employment for about 6,000
people, either directly or through linked industries, and represents almost 40% of the
yearly exports of the province of Udine and 20% of those of the region of Friuli.
Attached are the Groups profit and loss account, assets and liabilities statement and
consolidated financial position for the six-month period ended December 31, 2012,
compared to the data for the periods ended December 31, 2011, and June 30, 2012,
respectively.
4
Consolidated Financial Statements of the Danieli Group
in millions of euro
to 31/12/2012 to 30/06/2012
CONSOLIDATED BALANCE SHEET
Assets
Non-current assets 966.5 912.6
Current assets 3,886.2 4,187.3
Total Assets 4,852.7 5,099.9
Liabilities and shareholders equity
Group share capital and reserves 81.3 81.3
Group profit (loss) 1,245.1 1,226.2
Shareholders' equity 1.326.4 1.307.5
Non-controlling interests 4.5 (15.4)
Non-current liabilities 409.0 502.1
Current liabilities 3,112.8 3,305.7
Total Liabilities 4.852.7 5.099.9
in millions of euro
Half-year ended
31/12/2012 31/12/2011
CONSOLIDATED INCOME STATEMENT
Revenues 1,295.3 1,531.4
Raw materials and consumables (645.6) (837.8)
Personnel costs (195.2) (183.9)
Other operating costs (303.3) (362.8)
Depreciation. amortization and write-
downs
(42.4) (51.1)
Operating income 108.8 95.8
Financial income (charges) 10.6 9.4
Profit (loss) from foreign currency
transactions
(21.4) 26.6
Income from valuation of shareholdings in
affiliates according to the net equity
method
(1.6) 0.5
Profit before tax 96.4 132.3
Tax on Profits (18.7) (40.7)
Net profit for the period
77.7 91.6
Net loss (profit) attributable to non-
controlling interests
(0.2) 5.9
Group Profit 77.5 97.5
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CONSOLIDATED NET FINANCIAL POSITION
(in millions of euro)
to
31/12/2012
to
30/06/2012 Variation
Non-current financial assets
- Non-current financial receivables 3.3 2.2 1.1
Total non-current financial assets 3.3 2.2 1.1
Current financial assets
- Securities and other financial receivables 227.0 286.0 (59.0)
- Cash at banks 1,473.1 1,455.8 17.3
Total current financial assets 1,700.1 1,741.8 (41.7)
Non-current financial liabilities
- Bank debts 143.6 224.1 (80.5)
Total non-current financial liabilities 143.6 224.1 (80.5)
Current financial liabilities
- Bank debts and other financial liabilities 739.8 695.3 44.5
Total current financial liabilities 739.8 695.3 44.5
Non-current net financial position (140.3) (221.9) 81.6
Current net financial position 960.3 1,046.5 (86.2)
Net financial position 820.0 824.6 (4.6)
Gross financial indebtedness (883.4) (919.4) 36.0
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The officer in charge of drawing up the corporate accounting documents, Mr. Alessandro
Brussi, declares, pursuant to paragraph 2, article 154 bis of the Financial Consolidation Act,
that, to the best of his knowledge, the accounting data in this press release correspond to the
results in the accounting records, account books and book entries for the period ended
December 31, 2012.
CORPORATE CONTACTS:
Investor relations: investors@danieli.it
Mr. Alessandro Brussi (tel. 0432 1958763)
Department of Corporate Affairs:
Daniela Boz (tel. 0432 1958308) d.boz@danieli.it
Danieli & C. Officine Meccaniche S.p.A.
Via Nazionale 41
33042 Buttrio (Udine)
Fully paid share capital of euro 81,304,566
Tax and registration number with the Register
of Companies of Udine n. 00167460302
Economic/administrative registration number UD84904
Telephone +39 0432 1958111
fax +39 0432 1958289
www.danieli.com
info@danieli.com
Financial statements and publications
also available on our website:
www.danieli.com, Investors' section