Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — Investor Day (June 2025)
38 slides from Outokumpu Oyj's investor day presentation, Jun 11, 2025
Slide 1: Capital Markets Day
1 CAPITAL MARKETS DAY June 11, 2025
Slide 2: Agenda and Speakers
2 AGENDA AND SPEAKERS Pioneer materials and technologies that power tomorrow Kati ter Horst Kati ter Horst, President and CEO Technology – creating long-term competitive advantage Stefan Erdmann, Chief Technology Officer Short Q&A – Kati ter Horst and Stefan Erdmann Stefan Erdmann Coffee break Fit f
Slide 3: Disclaimer
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 available to it on th
Slide 4: Pioneer Materials and Technologies That Power Tomorrow
4 PIONEER MATERIALS AND TECHNOLOGIES THAT POWER TOMORROW Kati ter Horst, President and CEO
Slide 5: 2025
5 2025
Slide 6: Strong Basis to Start Investing in Transformative Growth
6 STRONG BASIS TO START INVESTING IN TRANSFORMATIVE GROWTH Stainless steel deliveries Adjusted EBITDA approx. Record-high recycled material content 2.0 MILLION TONS ON €640 MILLION ON AVERAGE 2020--2024 95% IN 2024 AVERAGE 2020--2024 Net debt to adj. EBITDA ratio reduced to Capital returns for share
Slide 7: Geopolitics and Megatrends Driving the Demand for Outokumpu
7 GEOPOLITICS AND MEGATRENDS DRIVING THE DEMAND FOR OUTOKUMPU SOLAR NEW MOBILITY ADDITIVE APPLICATIONS SOLUTIONS MANUFACTURING HYDROGEN STORAGE DEFENCE WATER TREATMENT & TRANSPORTATION INDUSTRY & DESALINATION
Slide 8: Improving Resilience to Cyclicality and Gearing for Transformative Growth
8 IMPROVING RESILIENCE TO CYCLICALITY AND GEARING FOR TRANSFORMATIVE GROWTH FOUNDATIONAL TRANSFORMATIVE Ensuring cost Ambition to grow in areas competitiveness and cash that provide generation – higher growth, Not an area of growth; finances growth in – higher margins and transformative businesses –
Slide 9: We Strengthen Our Foundation While Investing into Transformative Areas
9 WE STRENGTHEN OUR FOUNDATION WHILE INVESTING INTO TRANSFORMATIVE AREAS TRANSFORMATIVE ADVANCED MATERIALS GROWTH IN THE AMERICAS INNOVATIVE MATERIALS AND ALLOYS Exploring growth opportunities AND TECHNOLOGIES Expanding into near-core alloys beyond standard stainless steel – Capitalizing on propriet
Slide 10: Resilient and Competitive Foundation in Sustainable Stainless Steel
FOUNDATIONAL 10 RESILIENT AND COMPETITIVE FOUNDATION IN SUSTAINABLE STAINLESS STEEL EUROPE AMERICAS Market is expected to recover with a demand growth Market is expected to recover with a demand rate of 3.3% p.a. by 2029* growth of 2.8% p.a. by 2029* Growing demand for low-emission stainless steel w
Slide 11: Smart Decarbonization Unlocking New Business Opportunities
FOUNDATIONAL 11 SMART DECARBONIZATION UNLOCKING NEW BUSINESS OPPORTUNITIES Undisputed sustainability leader in the industry 2016–2024 2024 RESULTS 2030 TARGET Capturing voluntary and regulatory demand for High recycled material content, - 32% - 42% low-emission stainless low-emission energy, energy
Slide 12: Securing Sustainable and Cost Competitive Supply of Critical Raw Materials
FOUNDATIONAL 12 SECURING SUSTAINABLE AND COST COMPETITIVE SUPPLY OF CRITICAL RAW MATERIALS SCRAP NICKEL MOLYBDENUM FERROCHROME Scrap is the main raw Diversified, sustainable and Critical raw material especially Ownership of the only material, supporting 95% compliant nickel sourcing for the producti
Slide 13: Clear Value Creation Criteria for Transformative
TRANSFORMATIVE 13 ENHANCED GROWTH REDUCED & PROFITABILITY CYCLICALITY CLEAR VALUE CREATION BUILD CRITERIA FOR BUILD STRATEGIC UNIQUENESS OPTIONALITY TRANSFORMATIVE INVESTMENTS, MINIMUM IRR OF 20% LEVERAGE & STRENGTHEN INCREASE SUSTAINABILITY GEOPOLITICAL LEADERSHIP RESILIENCE RIGHT TO WIN THROUGH CO
Slide 14: Accelerating Growth in Advanced Materials
TRANSFORMATIVE 14 ACCELERATING GROWTH IN ADVANCED MATERIALS... Long tradition of advanced materials production and unique assets in Sweden and Germany Faster market growth for advanced materials vs. standard stainless steel Leveraging our strong legacy of innovation Driving growth through more advan
Slide 15: Exploring Growth Opportunities in High-Nickel Alloys
TRANSFORMATIVE 15 ... AND EXPLORING GROWTH OPPORTUNITIES IN HIGH-NICKEL ALLOYS Feasibility study started to enable further expansion into high-nickel alloys High-nickel alloys expected to continue strong growth trajectory of 5% p.a.* Significant price premium vs. standard stainless steel and current
Slide 16: High-Nickel Alloys Drive Innovation & Sustainable Applications
TRANSFORMATIVE 16 HIGH-NICKEL ALLOYS DRIVE INNOVATION & SUSTAINABLE APPLICATIONS ENERGY ELECTRICAL & OIL & GAS DEFENCE OTHER ELECTRONICS INDUSTRY TYPICAL Reactors Heating elements Mechanical line Armor systems & Exhaust system APPLICATIONS Filter systems Transformers pipes casings Catalysts Heat exc
Slide 17: Unique Position Provides Value Creation Possibilities Within Ferrochrome
TRANSFORMATIVE 17 OUR UNIQUE POSITION PROVIDES SIGNIFICANT VALUE CREATION POSSIBILITIES WITHIN FERROCHROME … 1 GROWING DEMAND towards low-emission ferrochrome from geopolitically reliable sources 3 WELL POSITIONED with CBAM – European ferrochrome production with 67% lower carbon footprint* 2 STRATEG
Slide 18: Climb Up the Chromium Value Ladder and Pioneer in Low-CO2 Metals
TRANSFORMATIVE 18 … TO CLIMB UP THE CHROMIUM VALUE LADDER AND PIONEER IN LOW-CO2 METALS Global demand for metals is accelerating WE HAVE THE ANSWER Supply constraints tightening due to geopolitical, environmental, and regulatory pressures 1 Innovative and proprietary technology Western customers and
Slide 19: Increasing the Value of Outokumpu
19 INCREASING THE VALUE OF OUTOKUMPU Maximizing value from sustainable Revolutionizing value creation with stainless steel innovative materials and technologies Growing profitably in advanced Focusing on total shareholder returns materials and alloys and keeping our balance sheet healthy FINANCIAL T
Slide 20: Technology – Creating Long-Term Competitive Advantage
20 TECHNOLOGY – CREATING LONG-TERM COMPETITIVE ADVANTAGE Stefan Erdmann, Chief Technology Officer
Slide 21: Transformative Innovation in Metals and Technologies Enabling New Products and Markets
21 TRANSFORMATIVE INNOVATION IN METALS AND TECHNOLOGIES ENABLING NEW PRODUCTS AND MARKETS DECARBONIZATION HIGHER VALUE ADVANCED MATERIALS NEW VALUE STREAMS FERROCHROME & ALLOYS New processing approaches Ore treatment enables higher Direct production pathways New processing pathways can enable the pr
Slide 22: We Have Built a Strong Foundation in Breakthrough Materials Research
22 WE HAVE BUILT A STRONG FOUNDATION IN BREAKTHROUGH MATERIALS RESEARCH We launched our research in 2021 to develop carbon neutral ferrochrome production process Established a state-of-the-art research & development lab near Boston, U.S. to drive breakthrough materials research Successfully scaled p
Slide 23: Our Proprietary Low-CO2 Metal Extraction Technology Platform
23 PARADIGM SHIFT: OUR PROPRIETARY LOW-CO2 METAL EXTRACTION TECHNOLOGY PLATFORM TRADITIONAL SMELTING DISRUPTIVE EXTRACTION TECHNOLOGY Metal Ore Coke Metal Ore or other metal containing material 1 Lower climate impact 2 Cost competitive process Smelting Reductant Economically Valuable Byproducts 3 Br
Slide 24: Kemi Mine Offers the Ideal Launchpad for Our Proprietary Technology
24 KEMI MINE OFFERS THE IDEAL LAUNCHPAD FOR OUR PROPRIETARY TECHNOLOGY UNLOCKING NEW HIGH-VALUE PRODUCTS Pure Cr >9 000 EUR/t 2 2 CHROMIUM MATERIALS 1 Premium-priced products, especially at highest purities Essential for high-performance FeCr65% CHROMIUM ENRICHED applications in aerospace, ~1 600 EU
Slide 25: From Lab-Scale Innovation to Industrialized, High-Value Metals Business
25 FROM LAB-SCALE INNOVATION TO INDUSTRIALIZED, HIGH-VALUE METALS BUSINESS SCALING UP REACH FULL POTENTIAL INDUSTRIALIZATION 2030 AND BEYOND PILOT PHASE UNLOCK KEMI MINE VALUE 2027–2030 Develop new high-value products (specialty alloys, PROVE SCALABILITY nickel, molybdenum, etc.) 2025–2027 Construct
Slide 26: Shaping Our Future Through Innovative Technologies
SHAPING OUR FUTURE THROUGH INNOVATIVE TECHNOLOGIES BREAKTHROUGH FIRST DEPLOYMENT extraction technology, of Kemi chromite ore with ready to scale strong economics and strategic fit SCALABLE ADDRESSING across stainless value global supply, cost, chain and other and sustainability strategic metals chal
Slide 27: Q&A
27 Q&A
Slide 28: Fit for Evolve – Well Positioned for Resilient Growth and Value Creation
28 FIT FOR EVOLVE – WELL POSITIONED FOR RESILIENT GROWTH AND VALUE CREATION Marc-Simon Schaar, Chief Financial Officer
Slide 29: Our Strategic Path to Competitive Returns
29 OUR STRATEGIC PATH TO COMPETITIVE RETURNS COMPETITIVE SHAREHOLDER RETURNS INVESTMENTS INTO GROWTH STRONGEST BALANCE SHEET IN THE INDUSTRY STEP-UP IN THROUGH-THE-CYCLE PROFITABILITY
Slide 30: We Have Significantly Improved Our Through-the-Cycle Performance
30 WE HAVE SIGNIFICANTLY IMPROVED OUR THROUGH-THE-CYCLE PERFORMANCE OVER THE YEARS… 2012–2015 2016–2019 2020–2024 Average adjusted EBITDA Average adjusted EBITDA Average adjusted EBITDA ~ EUR 50 million ~ EUR 410 million ~ EUR 640 million EUR million (kt) 1400 2 600 1200 2 400 1000 2 200 800 600 2 0
Slide 31: And Built a Strong Platform for Future Growth
31 …AND BUILT A STRONG PLATFORM FOR FUTURE GROWTH Net debt to EBITDA ratio at the end of the period Capital allocation 2015–2024 9.8x 3% 4.0x 13% 4.4x 4.1x 2.6x 1.7x 1.1x 0.4x 0.0x -0.1x 20% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Share buybacks Dividends Dividend per share, EUR 22% Mainte
Slide 32: Now We Enter into the Next Phase of Strategic Value Creation
NOW WE ENTER INTO THE NEXT PHASE OF STRATEGIC VALUE CREATION
Slide 33: Strategic Business Objectives and Investment Criteria
33 STRATEGIC BUSINESS OBJECTIVES AND INVESTMENT CRITERIA TO DRIVE COMPETITIVE SHAREHOLDER VALUE TRANSFORMATIVE Unlock high-value growth opportunities EBITDA growth Funded by cash coupled with less Organic / inorganic generation from foundational and Minimum IRR of 20% cyclicality growth balanced lev
Slide 34: Foundational Initiatives Expected to Improve Normalized EBITDA to EUR 750–850 Million
34 OUR FOUNDATIONAL INITIATIVES ARE EXPECTED TO IMPROVE OUR NORMALIZED EBITDA TO EUR 750–850 MILLION Indicative EBITDA improvement, EUR million 850 750–850 800 750 New products and 700 customer segments within existing asset base in advanced 650 materials Yield, energy and raw material efficiency BA
Slide 35: Strong Cash Generation and Smart Capital Allocation
35 STRONG CASH GENERATION AND SMART CAPITAL ALLOCATION TO MAINTAIN A HEALTHY BALANCE SHEET SOURCES OF CASH 2026-2030 USES OF CASH 2026-2030 BALANCED USE OF DEBT SHAREHOLDER RETURNS Competitive dividend and TO FUND THE TRANS- opportunistic share repurchases FORMATIVE INVESTMENTS STRONG CASH FLOW FROM
Slide 36: Increasing Value of Outokumpu Through 2026–2030
36 INCREASING VALUE OF OUTOKUMPU THROUGH 2026–2030 FINANCIAL INVESTMENT DIVIDEND TARGETS CRITERIA POLICY HEALTHY BALANCE SHEET WITH SUSTAIN COMPETITIVENESS AND COMPETITIVE SHAREHOLDER FOCUS ON CASH GENERATION UNLOCK GROWTH OPPORTUNITIES RETURNS NET DEBT TO EBITDA ratio of 1.0x MINIMUM IRR of 15% for
Slide 37: Positioned to Evolve. Built to Deliver.
37 POSITIONED TO EVOLVE. BUILT TO DELIVER.
Slide 38: Q&A
38 Q&A