Slide 1: Outokumpu Tornio stainless steel mill
Outokumpu Tornio stainless steel mill The biggest recycling center in the Northern Hemisphere Site visit for institutional investors, analysts and bankers June 15, 2022 Niklas Wass – EVP, Business area Europe operations Simon Schmidt – SVP, Operations Tornio
Slide 2: Tornio area
Tornio area Size of the area: 6,000,000 m² of which 56,000 m² are covered with buildings Employees: 2,100 own employees. 300 permanent contractors. Estimated indirect employment is Capacity: 7,000 people. Ferrochrome 530 kt Steel melting shop 1,450 kt Hot rolling mill 1,450 kt Cold rolling mill 940
Slide 3: We extract significant value from our fully integrated ferrochrome and stainless steel operations
We extract significant value from our fully integrated ferrochrome and stainless steel operations in Kemi and Tornio Usage of carbon monoxide (CO) Liquid ferrochrome Slab direct in heating furnaces in steel melt shop charging to hot instead of Kemi-Tornio (energy saving rolling mill liquid natural g
Slide 4: Our Tornio stainless steel plant is the biggest recycler in the Northern Hemisphere
Our Tornio stainless steel plant is the biggest recycler in the Northern Hemisphere 1 2 3 Industry leading In-house High usage of recycled content ferrochrome low carbon with low electricity carbon footprint CO2 footprint Recycled >80% of our of our ferrochrome material electricity in is 70% lower t
Slide 5: Our value stream in Tornio stainless steel mill
Our value stream in Tornio stainless steel mill Steel melting shop Hot rolling mill Cold rolling plant RAP-line Liquid ferrochrome Recycled steel Walking Beam Furnace Annealing and pickling line Roughing Mill Sendzimir Mill Ferrochrome Electric Arc Logistics Terneuzen Converter Furnace Annealing and
Slide 6: In 2021, we broke several records in our Tornio operations
In 2021, we broke several records in our Tornio operations New annual record in New annual steel melting RAP5 record of shop L1 and performance 1.427kt in hot the highest steel was the best ever rolling mill melting shop in Q1 2022 production ever! 6 | June 15, 2022
Slide 7: Operations – BA Europe
Operations – BA Europe Introduction
Slide 8: Continuous improvement in safety performance
Continuous improvement in safety performance Total recordable injuries frequency rate (TRIFR) Number of total recordable incidents per million working hours 8.7 Strong focus on safety 4.4 4.1 3.2 2.4 2.0 1.7 2016 2017 2018 2019 2020 2021 Q1 2022 8 | June 15, 2022
Slide 9: Operation Europe team, location and rotation
Operation Europe team, location and rotation Niklas Wass EVP Operations Europe Rober Sträßer SVP – SCM Europe Avesta Tornio Integrated production Integrated production + Core, Supra & Pro - Semi prod´s + Classic - Semi prod´s + Core, Supra & Pro - Thick & wide Teijo Södervall + Classic - Efficient c
Slide 10: Strategy Phase 1 executed through hundreds of smaller projects: reduce over-alloying
Strategy Phase 1 has been executed through hundreds of smaller projects since launch Example 1: Reduce over-alloying Cost & Capital Yearly financial Business area Europe Workstream 100,000+ euros Discipline impact Background / Reason for change Actions FeCr CRK • Composition targets were changed to
Slide 11: Strategy Phase 1 executed through hundreds of smaller projects: waste heat utilization
Strategy Phase 1 has been executed through hundreds of smaller projects since launch Example 2: Project #25116 BAL1600 Waste heat utilization Cost & Capital Yearly financial Business Area Europe Workstream 100,000+ euros Discipline impact Current state /Reason for action Future state / Actions taken
Slide 12: Material flows
Material flows MELTING HOT ROLLING CRM + FIN TORNIO TORNIO L1 TERNEUZEN TORNIO DILLENBURG HRM TORNIO L2 KREFELD FG DIRECT / DAHLERBRUCK via CSCs AVESTA AVESTA AVESTA NYBY HRM DEG 12 | June 15, 2022
Slide 13: We are the industry leader in sustainability – Circle Green has 92% lower CO2 footprint
We are the industry leader in sustainability – our Circle Green has 92% lower CO2 footprint than industry average CO emission tons per produced ton of stainless steel 2 6.1 Expanding gap CO2 footprint 46% of the between industry average CO2 footprint Outokumpu and 30% of the industry CO2 footprint c
Slide 14: CO2 reduction targets
CO2 reduction targets Overall CO2 Scope 1 Scope 2 Scope 3 reduction 0.300 0.030 1.400 64% 0.250 0.025 1.200 1.000 0.200 0.020 Driven by material 0.800 and consumable 0.150 0.015 selection in 0.600 -56% combination with 0.100 0.010 very targeted 0.400 production. -89% 0.050 -96% 0.005 0.200 0.000 0.0
Slide 15: Key takeaways
Key takeaways We are meeting We have managed the increasing unprecedented disruption We are getting sustainability by Covid-19 and the strategy done – megatrend the war in Ukraine, and we are well fitted by improving our delivered what we to go forward already best-in-class promised and even footpri
Slide 16: Thank you! Tornio site tour agenda
Tornio site tour agenda 14.20 Safety introduction Thank you! 14.30 Visit to steel melting shop 15.05 Visit to hot rolling mill 15.40 Visit to RAP#5 16.10 Visit to harbour 16.30 Bus transfer back to main office 17.00 Bus transportation to Oulu airport 18.30 Arrival at Oulu airport 19.40 Finnair fligh