Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — Kemi Tornio Site Visit 2018
12 slides from Outokumpu Oyj's conference presentation, Jun 13, 2018
Slide 1: Tangible growth potential in Europe
Tangible growth potential in Europe Maciej Gwozdz – President, BA Europe June 13, 2018
Slide 2: Tangible growth potential in Europe
Tangible growth potential in Europe We have visible We are ready to We have become achievements from leverage our the best value restructuring and capabilities to meet creator in stainless efficiency further growth steel in Europe improvements opportunities 2
Slide 3: We are market leader in Europe
We are market leader in Europe Tornio Kemi • Employees: 1,750 • Employees: 433 Avesta • Employees: 848 • No. 1 in Europe with ~30% Degerfors market share • Employees: 506 Nyby • Employees: 221 • One integrated system with mills in Finland and Sweden Sheffield feeding rest of the mills in • Employees
Slide 4: Integrated ferrochrome operations bring significant strategic advantages
Integrated ferrochrome operations bring significant strategic advantages Our ferrochrome operations rank in top 10 among major ferrochrome smelters Production costs, USD/lb Profitability value from integrated mine Outokumpu and smelting operations One of the most cost competitive ferrochrome produce
Slide 5: Completed restructuring creates solid basis for Europe
Completed restructuring creates solid basis for Europe… We have kept Ferritics Delivery stable market share optimization performance of our We have realized despite the closure investment in Krefeld German mills has >EUR 50 million of Benrath mill in was completed increased from SG&A cost savings 20
Slide 6: …and has led to tangible earnings growth
…and has led to tangible earnings growth BA Europe BA Ferrochrome Adjusted EBITDA, EUR million Adjusted EBITDA, EUR million 404 207 295 203 107 80 2015 2016 2017 2015 2016 2017 6
Slide 7: Best value creator for our customers
Best value creator for our customers Industry leader in customer satisfaction 63% 63% of our customers are absolutely or very satisfied (58% in 2017) 2018 20% 43% 31% n=1,035 Outokumpu ahead of competitors in customer satisfaction 2017 13% 45% 35% n=1,265 Tremendous potential Absolutely satisfied Ve
Slide 8: Our path to future growth
Our path to future growth Markets Operations Innovation Digitalization Strong market Global production Clear R&D focus on Unified tools and position secured standards in all mills solutions and processes through through higher & efficient inventory process digital transformation efficiency and manag
Slide 9: Strong market position secured through higher efficiency and debottlenecking
Strong market position secured through higher efficiency and debottlenecking Solid demand growth* expected in Europe in mid-term +5% We are aiming for +4% annual productivity +3% +3% improvement of 3% +2% +1% 15 16 17 18f 19f 20f SMR, April 2018 9
Slide 10: Productivity improvement driven by a step-change in reliability
Productivity improvement driven by a step-change in reliability Identify Safety Ensure Bring safety systems and Accomplish incidents are realization of and reliability to components these goals at preventable. inherent safety their optimal with weak a minimum Same applies and reliability of levels r
Slide 11: We are harmonizing our business and culture through project Chorus
We are harmonizing our business and culture through project Chorus Increased Local New organization, efficiency processes, Roll out of global processes and transparency, fragmented new integrated tools and ways of best customer systems and and processes working experience, data unified platform 2015
Slide 12: Tangible growth potential in Europe
Tangible growth potential in Europe We have visible We are ready to We have become achievements from leverage our the best value restructuring and capabilities to meet creator in stainless efficiency further growth steel in Europe improvements opportunities 12