Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — Q1 2021 Earnings Presentation
22 slides from Outokumpu Oyj's earnings presentation, May 6, 2021
Slide 1: Outokumpu Q1 2021 results
Outokumpu Q1 2021 results Heikki Malinen, President & CEO Pia Aaltonen-Forsell, CFO May 6, 2021
Slide 2: 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 3: Business & market update
Business & market update Heikki Malinen, President & CEO 3 | May 6, 2021
Slide 4: Adjusted EBITDA increased to €177 million
Adjusted EBITDA • Q1 result supported by higher demand, improved capacity utilization and positive increased to impacts from raw materials €177 million • Strategy execution starting to deliver benefits; structurally lower headcount in the first quarter and improved cost base • Record high safety per
Slide 5: Strong performance in all businesses
Strong performance in all businesses Group adjusted EBITDA, Adjusted EBITDA quarter-on-quarter comparison1, EUR million EUR million Deliveries increased by 16% 177 Mainly from positive timing impacts 106 78 45 22 Net of Q4/20 Deliveries Pricing timing and Costs Ferro- Others Q1/21 Q1/20 Q2 Q3 Q4 Q1/
Slide 6: Increase in transaction and raw material prices
Increase in transaction and raw material prices Transaction prices 304 stainless, USD/tonne Average Ferrochrome nickel price, benchmark price, 3,900 USD/tonne USD/lb. 3,400 2,900 2,400 1,900 1,400 2014 2015 2016 2017 2018 2019 2020 2021 Q4/20 Q1/21 Q4/20 Q1/21 Europe USA China Source: CRU & Metal Bu
Slide 7: Import penetration into Europe higher in Q1
Import penetration into Europe higher in Q1 Third-country cold rolled imports1 into Europe, Third-country cold rolled imports2 into the US, 1,000 tonnes 1,000 tonnes 120 50 50 30 40 40 80 25% 30 20 30 14% 20 20 40 10 10 10 0 0 0 0 2017 2018 2019 2020 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21f 2017 2018 2019 202
Slide 8: Multiple trade defence investigations ongoing by EU
Multiple trade defence investigations ongoing by EU EU cold-rolled quota utilization at 25%* European safeguards 100% • Current safeguards will expire in June 2021 kt 91 19 83 43 67 59 31 47 • Expiry review started at the end of February 80% 60% Anti-dumping & anti-subsidy investigations 40% • In an
Slide 9: TRIFR at 1.4 – Best first-quarter safety results in years
TRIFR at 1.4 – Best first-quarter safety results in years Safety performance (TRIFR) Sustainability highlights in Q1 • Total recordables improved 6x since 2016 8.7 • CO2 emissions well aligned with current Science Based Targets (SBTi) • Energy efficiency improved significantly, 4.4 resulting to lowe
Slide 10: Financial update
Financial update Pia Aaltonen-Forsell, CFO 10 | May 6, 2021
Slide 11: Key figures Q1/21
Key figures Q1/21 Q1/20 Q4/20 2020 Stainless steel deliveries 1,000 tonnes 608 588 523 2,121 Sales EUR million 1,673 1,615 1,350 5,639 Adjusted EBITDA EUR million 177 106 78 250 Net result EUR million 82 22 -39 -116 Earnings per share EUR 0.20 0.05 -0.09 -0.28 Operating cash flow EUR million 27 -32
Slide 12: BA Europe – Higher demand and improved capacity utilization boosted result to €78 million
BA Europe – Higher demand and improved capacity utilization boosted result to €78 million Europe adjusted EBITDA, Adjusted EBITDA quarter-on-quarter comparison1, EUR million EUR million Deliveries increased by 13% 78 Higher prices 67 supported profitability 36 30 9 Net of Pricing Q4/20 Deliveries ti
Slide 13: BA Americas – Strongest quarter in history due to higher demand and positive raw material impacts
BA Americas – Strongest quarter in history due to higher demand and positive raw material impacts Americas adjusted EBITDA, Adjusted EBITDA quarter-on-quarter comparison1, EUR million EUR million Mainly due to positive timing impacts 19% higher deliveries due to strong demand 54 20 18 14 3 Pricing N
Slide 14: BA Ferrochrome – Higher sales price supported result
BA Ferrochrome – Higher sales price supported result Ferrochrome adjusted EBITDA, Adjusted EBITDA quarter-on-quarter comparison1, EUR million EUR million Profitability impacted positively by higher 42 ferrochrome sales price 34 Harsh winter conditions 25 impacted production 24 9 FeCr Q1/20 Q2 Q3 Q4
Slide 15: BA Long Products – Turnaround proceeding, result driven by increased volumes
BA Long Products – Turnaround proceeding, result driven by increased volumes Long Products adjusted EBITDA, Adjusted EBITDA quarter-on-quarter comparison1, EUR million EUR million Deliveries increased by 53% 11 Higher share of semi-finished -1 0 products -4 -3 Net of Q1/20 Q2 Q3 Q4 Q1/21 Q4/20 Deliv
Slide 16: Positive operating cash flow despite significant pay-outs for restructuring and VAT deferral
Positive operating cash flow despite significant pay-outs for restructuring and VAT deferral Q1/21 cash flow, Annual Capex, EUR million €10 million of VAT deferral EUR million payments and a typical seasonal 240 Capex limited to increase in working capital €180 million 200 €24 million from 160 restr
Slide 17: Decrease in leverage driven by strong EBITDA
Decrease in leverage driven by strong EBITDA Net debt, EUR million Net debt/LTM adjusted EBITDA 1,800 80% 69% IFRS16 impact* 70% 1,600 51% 60% 1,400 45% 45% 40% 50% 1,200 44% 44% 40% 30% < 3.0 1,000 20% 800 10% 1,610 1,242 1,091 1,241 1,155 1,028 1,073 9.8 4.0 1.7 2.6 4.4 4.1 3.3 600 0% 2015 2016 20
Slide 18: Outokumpu has a balanced debt structure
Outokumpu has a balanced debt structure Debt structure* Debt maturity profile*, EUR million 1000 15% 18% 800 15% 8% 600 400 14% 29% 200 0 Cash & 2021 2022 2023 2024 2025 2026+ Bonds Convertible bonds cash Long-term loans from Pension loans equivalents Current debt financial institutions Commercial p
Slide 19: Outlook
Outlook Heikki Malinen, President & CEO 19 | May 6, 2021
Slide 20: Outlook for Q2 2021
Stainless steel deliveries in the second quarter are expected to increase by 0–5% compared to the first quarter. Outlook for European ferrochrome benchmark price increased to USD 1.56/lb Q2 2021 for the second quarter. Planned maintenance costs are expected to increase by approximately EUR 10 millio
Slide 21: Thank you! Questions & answers
Thank you! Questions & answers 21 | May 6, 2021
Slide 22: Our efforts on sustainability have been recognized
Our efforts on sustainability have been recognized 22 | May 6, 2021