Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — Outokumpu Oyj New — Q1 2025 Earnings Presentation
26 slides from Outokumpu Oyj's earnings presentation, May 8, 2025
Slide 1: Financially resilient and geographically well positioned
Financially resilient and geographically well positioned Outokumpu Q1 2025 results Kati ter Horst, President & CEO Marc-Simon Schaar, CFO May 8, 2025 Helix Bridge| Architects: Cox Architecture & Arup Location: Marina Bay, Singapore
Slide 2: Disclaimer
2 May 8, 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 availab
Slide 3: Adjusted EBITDA increased to 49 million during times of uncertainty
3 May 8, 2025 Adjusted EBITDA increased to 49 million during times of uncertainty Kati ter Horst, President & CEO Hudson Yards| The Vessel | Architect: Thomas Heatherwick and Heatherwick Studio | Location: New York City, USA
Slide 4: Clearly improved profitability supported by business area Ferrochrome
4 May 8, 2025 Clearly improved profitability supported by business area Ferrochrome • Stainless steel deliveries increased in both business areas Adjusted EBITDA totaled • Demand remained muted, tariffs caused further uncertainty • Impact of the one-week strike in Finland ~EUR -15 million EUR 49 mil
Slide 5: High Asian import penetration in both regions has kept pressure on prices
5 May 8, 2025 High Asian import penetration in both regions has kept pressure on prices Third-country cold rolled imports1 into Europe, Third-country cold rolled imports2 into the North America, 1,000 tonnes 1,000 tonnes Import penetration Import penetration (in %) (in %) kt kt 33% 23% From rest of
Slide 6: EBITDA run-rate improvement actions progressing according to plan
6 May 8, 2025 EBITDA run-rate improvement actions progressing according to plan Cumulative gross annualized EBITDA run-rate improvement, EUR million EUR 26 million EBITDA run-rate improvement reached in Q1 2025 • Driven by BA Europe, mainly due to successful closure and transfer of precision strip o
Slide 7: Operationally well managed quarter, supported by cost saving measures
7 May 8, 2025 Operationally well managed quarter, supported by cost saving measures Deliveries, kt Adjusted EBITDA quarter-on-quarter comparison1, EUR million Positive raw material Deliveries impacts, stainless steel increased in prices remained under Europe and pressure Americas Group adjusted EBIT
Slide 8: Recycled material content reached a record high level of 97%
8 May 8, 2025 Recycled material content reached a record high level of 97% Safety performance, TRIFR • Slight weakening in safety performance, swift actions taken • Good progress towards SBTi climate target • EcoVadis platinum ranking renewed, placing the company to the top 1% in the industry • Adva
Slide 9: Strong balance sheet gives resilience in the current geopolitical situation
9 May 8, 2025 Strong balance sheet gives resilience in the current geopolitical situation Marc-Simon Schaar, CFO Zwilling PRO Special Edition Knife block set
Slide 10: Solid financial position enables shareholder returns
10 February 8, 2024 May 8, 2025 Solid financial position enables shareholder returns • Cash and cash equivalents EUR 354 million, total liquidity reserves EUR 1.2 billion • A new EUR 200 million three-year term loan improving liquidity further • Planned annual capex EUR 160 million for 2025 • Net de
Slide 11: BA Europe
11 May 8, 2025 BA Europe’s stainless steel deliveries, 1,000 tonnes BA Europe Profitability improved in weak market conditions • Stainless steel deliveries increased seasonally by 11% • EUR -15 million impact from the one-week union strike in Finland • Imports remained at a high level of 23%, BA Eur
Slide 12: BA Americas
12 May 8, 2025 BA Americas BA Americas’ stainless steel deliveries, 1,000 tonnes U.S. tariffs starting to support local producers • Stainless steel deliveries increased by 13%, mainly due to seasonality, partly offset by impacts from weather-related supply chain disruptions • Imports were at a high
Slide 13: BA Ferrochrome
13 May 8, 2025 BA Ferrochrome's deliveries, 1,000 tonnes BA Ferrochrome Excellent operational performance resulted in the best quarter since Q2 2022 • Demand for our low-emission European Ferrochrome remained solid in a subdued market, deliveries increased • A positive impact from higher ferrochrome
Slide 14: Net working capital and net debt seasonally increased
14 May 8, 2025 As a result of higher deliveries, net working capital and net debt seasonally increased Q1/25 cash flow Net debt development EUR million EUR million Driven by seasonality
Slide 15: Continued strong focus on cost competitiveness and financial strength
15 May 8, 2025 Continued strong focus on cost competitiveness and financial strength Kati ter Horst, President & CEO Helix Bridge| Architects: Cox Architecture & Arup Location: Marina Bay, Singapore
Slide 16: Outlook for Q2 2025
16 May 8, 2025 February 8, 2024 Outlook for Q2 2025 Group stainless steel deliveries in the second quarter are expected to increase by 0-10% compared to the first quarter, which was impacted by the strike in Finland. Maintenance break in business area Ferrochrome is expected to have up to EUR -10 mi
Slide 17: Well positioned in the evolving global trade landscape
17 May 8, 2025 Well positioned in the evolving global trade landscape Ferrochrome is considered a critical raw material, and therefore excluded from the Business area Americas' stainless U.S. tariffs steel is melted and hot rolled in the U.S. and cold rolled either in the U.S. Finland or Mexico. Hot
Slide 18: Managing uncertainty through own actions
18 February 8, 2024 May 8, 2025 Managing uncertainty through own actions • Geographically diversified footprint • #1 market position in Europe, #2 in the U.S. • Strongest balance sheet in the industry • Strengthening competitiveness through cost measures • New strategy to be presented at our Capital
Slide 19: Thank you! Questions & answers
19 May 8, 2025 Thank you! Questions & answers Our ambition in sustainability has been globally recognized
Slide 20: Key financials for Q1 2025
20 May 8, 2025 Key financials for Q1 2025 Key figures Q1 2025 Q1 2024 Q4 2024 2024 Sales EUR million 1,524 1,479 1,405 5,942 EBITDA EUR million 47 37 -12 162 Adjusted EBITDA EUR million 49 38 -3 177 EBIT EUR million -7 -19 -65 -51 • Adj. EBITDA EUR 49 million Adjusted EBIT EUR million -5 -17 -58 -43
Slide 21: Asian imports remained at a high level, putting pressure on stainless steel prices
21 May 8, 2025 Asian imports remained at a high level, putting pressure on stainless steel prices Transaction prices 304 stainless, USD/tonne* Nickel LME cash, USD/tonne March March Europe USA China Source: CRU Stainless Steel Flat Products Monitor March 2025 Nickel: London Metal Exchange (LME) Nick
Slide 22: BA Europe's adjusted EBITDA was EUR 6 million in Q1 2025
22 May 8, 2025 BA Europe’s adjusted EBITDA was EUR 6 million in Q1 2025 Adjusted EBITDA, EUR million Adjusted EBITDA quarter-on-quarter comparison1, EUR million Driven by positive Stainless steel raw material impacts deliveries increased by 11% 1) Indicative columns based on management estimates
Slide 23: BA Americas' adjusted EBITDA was EUR 11 million in Q1 2025
23 May 8, 2025 BA Americas’ adjusted EBITDA was EUR 11 million in Q1 2025 Adjusted EBITDA, EUR million Adjusted EBITDA quarter-on-quarter comparison1, EUR million Deliveries increased by 13%, mainly due to seasonality Driven by lower realized prices for stainless steel Driven by cost saving measures
Slide 24: BA Ferrochrome's adjusted EBITDA was EUR 43 million in Q1 2025
24 May 8, 2025 BA Ferrochrome’s adjusted EBITDA was EUR 43 million in Q1 2025 Adjusted EBITDA, EUR million Adjusted EBITDA quarter-on-quarter comparison1, EUR million Driven by under absorption of fixed costs and electrification Driven by stronger aid received in Q4 2024 external demand 1) Indicativ
Slide 25: We continue our climate strategy to further reduce our emissions
25 May 8, 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 pr
Slide 26: Up to 93% lower carbon footprint compared to the industry average
26 May 8, 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 and wo