Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — Outokumpu Oyj New — Q4 2024 Earnings Presentation
32 slides from Outokumpu Oyj's earnings presentation, Feb 13, 2025
Slide 1: Focus on navigating successfully through uncertainty
Focus on navigating successfully through uncertainty Outokumpu Q4 2024 results Kati ter Horst, President & CEO Marc-Simon Schaar, CFO February 13, 2025 One WTC | Three WTC | Oculus | Chrysler Building | Hudson Yards; The Edge & The Vessel | Central Park Tower | 200 West Street; Goldman & Sachs HQ 20
Slide 2: Disclaimer
2 February 13, 2025 Disclaimer This presentation contains, or may be deemed to contain, statements that are not historical facts but forward-looking statements. Such forward-looking statements are based on the current plans, estimates and expectations of Outokumpu’s management based on information a
Slide 3: Focus on navigating successfully through uncertainty
Focus on navigating successfully through uncertainty Outokumpu Q4 2024 results Kati ter Horst, President & CEO Marc-Simon Schaar, CFO February 13, 2025 One WTC | Three WTC | Oculus | Chrysler Building | Hudson Yards; The Edge & The Vessel | Central Park Tower | 200 West Street; Goldman & Sachs HQ 20
Slide 4: Full-year adjusted EBITDA EUR 177 million - weak demand and significant import pressure
4 February 13, 2025 Full-year adjusted EBITDA EUR 177 million - weak demand and significant import pressure Kati ter Horst, President & CEO Vzug home appliances, washing machine| Switzerland
Slide 5: EUR 177 million adjusted EBITDA; strong market positions in difficult conditions
5 February 13, 2025 Strong market positions maintained in difficult market conditions • Profitability burdened by the weak market and the political Adjusted EBITDA totaled strike impact of EUR -60 million EUR 177 million • Balance sheet retained strongest in the industry • Good progress with sustain
Slide 6: Continuing to deliver on EBITDA run-rate improvement target of EUR 350 million
6 February 13, 2025 Continuing to deliver on EBITDA run-rate improvement target of EUR 350 million by the end of 2025 Cumulative gross annualized EBITDA run-rate improvement, EUR million EUR 101 million EBITDA run-rate Phase 2 improvement reached in 2024 • In Q4, EUR 22 million improvement driven by
Slide 7: Decisive short-term actions to support profitability
7 February 8, 2024 Decisive short-term actions to support profitability EUR 50 million of Planned capital additional cost expenditure cut to savings to be EUR 160 million for delivered in 2025 year 2025* 7 ZWILLING knife | Outokumpu Circle Green® Dura | Germany *Planned capex for years 2023-2025 app
Slide 8: High Asian imports kept stainless steel prices under pressure in Europe and the U.S.
8 February 13, 2025 High Asian imports kept stainless steel prices under pressure in Europe and the U.S. Transaction prices 304 stainless, USD/tonne* Nickel LME cash, USD/tonne December December 6000 30000 25000 4000 20000 15000 2000 10000 0 5000 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 202
Slide 9: Profitability in 2024 reflects low point of the cycle
9 February 13, 2025 Profitability in 2024 reflects low point of the cycle Adjusted EBITDA year-on-year comparison1, EUR million • Deliveries decreased by 6%, driven by business area Europe • Profitability negatively impacted by lower realized prices for 517 stainless steel and unfavorable effects fr
Slide 10: Lower profitability in Q4 driven by weaker-than-expected market in Europe
10 February 13, 2025 Lower profitability in Q4 driven by weaker-than-expected market in Europe Deliveries, kt Adjusted EBITDA quarter-on-quarter comparison1, EUR million 605 Deliveries decreased in 550 560 Europe and Americas 491 505 502 450 449 450 444 468 459 422 Lower realized prices in Europe an
Slide 11: World-class safety performance and good progress with smart decarbonization strategy
11 February 13, 2025 World-class safety performance and good progress with smart decarbonization strategy Safety performance, TRIFR • Safety performance at world-class level 8.7 • Recycled material content remained at 95%, highest in the industry 4.4 4.1 3.2 2.4 2 1.8 1.5 1.5 • Good progress towards
Slide 12: Securing financial strength
12 February 13, 2025 Securing financial strength Marc-Simon Schaar, CFO Central Park Tower | Location: New York City, USA
Slide 13: Healthy financial condition
13 February 8, 2024 Healthy financial condition • Net debt EUR 189 million at year-end • Cash and cash equivalents EUR 313 million, total liquidity reserves EUR 1.1 billion at year-end • 2024 annual capex EUR 216 million • Planned capex EUR 160 million for 2025, resulting in capex of approximately E
Slide 14: BA Europe
14 February 13, 2025 BA Europe’s stainless steel deliveries, 1,000 tonnes BA Europe 500 Decrease in profitability driven by 414 weaker-than-expected market 400 370 372 322 369 349 322 327 316 303 316 316 287 300 • Stainless steel deliveries in Q4 decreased 200 by 9% in a challenging market with Q4 Q
Slide 15: BA Americas
15 February 13, 2025 BA Americas’ stainless steel deliveries, 1,000 tonnes BA Americas Significant import pressure together with 185 200 180 weak industrial production impacted 177 167 161 profitability 142 147 132 150 148 137 150 125 130 • Stainless steel deliveries decreased by 100 7% in Q4 in a c
Slide 16: BA Ferrochrome
16 February 13, 2025 BA Ferrochrome's deliveries, 1,000 tonnes BA Ferrochrome 200 Strong performance continued, energy costs well managed due to successful 127 123 120 104 104 production optimization 87 85 90 95 100 87 79 100 70 • Demand for our low-emission European ferrochrome remained stable in a
Slide 17: Net debt well managed in challenging market conditions
17 February 13, 2025 Net debt well managed in challenging market conditions Q4/24 cash flow Net debt development in 2024 EUR million 35 0 -80 113 91 33 -12 EBITDA Working capital Income taxes Provisions, Operating cash Net cash from Cash flow 212 paid and pensions, flow investing before 189 received
Slide 18: Solid financial position and a positive long-term outlook supports shareholder returns
18 February 13, 2025 Solid financial position and a positive long-term outlook supports shareholder returns Kati ter Horst, President & CEO Harvia Cilindro sauna heaters| Finland
Slide 19: The Board of Directors proposes a dividend of EUR 0.26 per share
The Board of Directors proposes a dividend of EUR 0.26 per share for the year 2024, to be paid in two installments 19 February 13, 2025 Streetcars | Krefeld, Germany Sarpaneva Watches | Helsinki, Finland
Slide 20: Outlook for Q1 2025
20 February 13, 2025 Outlook for Q1 2025 Group stainless steel deliveries in the first quarter are expected to increase by 10-20% compared to the fourth quarter (including the impact of a one week's strike), while pressure on realized stainless steel prices is expected to continue during the first q
Slide 21: Addressing current situation before moving into the next strategy phase
21 February 8, 2024 Addressing current situation before moving into the next strategy phase • Profit improvement actions essential in the current challenging market environment • Decision not to invest in cold rolling capacity expansion in the U.S. at this point of time • Study finalized on Small Mo
Slide 22: Thank you! Questions & answers
22 February 13, 2025 Thank you! Questions & answers Our ambition in sustainability has been globally recognized
Slide 23: Save the date Outokumpu Capital Markets Day
Save the date Outokumpu Capital Markets Day June 11, 2025 23 February 13, 2025 Stonecutters Bridge| Hong Kong
Slide 24: Key financials for FY2024
24 February 13, 2025 Key financials for FY2024 Key figures Q4 2024 Q4 2023 Q3 2024 2024 2023 Sales EUR million 1,405 1,513 1,518 5,942 6,961 EBITDA EUR million -12 15 81 162 416 Adjusted EBITDA EUR million -3 72 86 177 517 • Adj. EBITDA EUR 177 million EBIT EUR million -65 -314 32 -51 -100 • Net res
Slide 25: BA Europe's adjusted EBITDA was EUR -32 million in Q4 2024
25 February 13, 2025 BA Europe’s adjusted EBITDA was EUR -32 million in Q4 2024 Adjusted EBITDA, EUR million Adjusted EBITDA quarter-on-quarter comparison1, EUR million Stainless steel deliveries decreased by 9% Driven by lower realized prices for stainless steel and negative raw material impacts 59
Slide 26: BA Americas' adjusted EBITDA was EUR 9 million in Q4 2024
26 February 13, 2025 BA Americas’ adjusted EBITDA was EUR 9 million in Q4 2024 Adjusted EBITDA, EUR million Adjusted EBITDA quarter-on-quarter comparison1, EUR million Deliveries decreased by Driven by lower 7% variable costs 54 9 5 24 21 9 5 Q4/2023 Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q3/24 Deliveries
Slide 27: BA Ferrochrome's adjusted EBITDA was EUR 33 million in Q4 2024
27 February 13, 2025 BA Ferrochrome’s adjusted EBITDA was EUR 33 million in Q4 2024 Adjusted EBITDA, EUR million Adjusted EBITDA quarter-on-quarter comparison1, EUR million Driven by higher fixed cost absorption and lower variable costs Decrease mainly driven by weaker internal demand 33 33 29 29 23
Slide 28: High import penetration in both regions in 2024
28 February 13, 2025 High import penetration in both regions in 2024 Third-country cold rolled imports1 into Europe, Third-country cold rolled imports2 into the US, 1,000 tonnes 1,000 tonnes Import penetration Import penetration (in %) (in %) kt kt 40 40 75 150 35 35 30 50 30 100 25% 25 25% 25 20 25
Slide 29: Good liquidity position remains
29 February 13, 2025 Good liquidity position remains Total liquidity reserves Debt structure at the end of 2024 Debt maturity profile at the end of 2024, decreased from €1.3 billion to €1.1 billion in 2024 EUR million 2% 1,000 24% 800 600 41% 400 17% 200 Convertible Bonds* Long-term loans from finan
Slide 30: Outokumpu uniquely positioned to capture value from Carbon Border Adjustment Mechanism
30 February 13, 2025 Outokumpu uniquely positioned to capture value from Carbon Border Adjustment Mechanism – low carbon ferrochrome production a competitive asset for Outokumpu Outokumpu’s CO2 emissions (scopes 1, 2, 3) per tonne • The EU’s Carbon Border Adjustment Mechanism (CBAM) approved in Apri
Slide 31: We continue our climate strategy to further reduce our emissions aligned with 1.5 degrees
31 February 13, 2025 We continue our climate strategy to further reduce our emissions aligned with 1.5 degrees – circularity and innovation at the core 2016–2024 High recycled material content, low-emission 2024 results energy, energy efficiency and incremental -32% tCO2/ton CS against 2016 baseline
Slide 32: Strong partnerships with customers to drive the green transition forward
32 February 13, 2025 Strong partnerships with customers to drive the green transition forward in stainless steel industry Up to 93% lower carbon footprint compared to the industry average* *Global average CO₂ emissions (2023): 7 kilos of CO₂e per kg of stainless steel (based on data provided by CRU