Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — Investor Presentation (September 2024)
29 slides from Outokumpu Oyj's investor presentation, September 2024
Slide 1: Outokumpu – the global leader in sustainable stainless steel
Outokumpu – the global leader in sustainable stainless steel Investor presentation 2024 S eptem ber 2024
Slide 2: Contents
Outokumpu investor presentation 2024 Contents • Creating long-term value o This is Outokumpu o Stainless steel is a healthy market o Well defined, three-phase strategy o Improved financial and risk profile o Industry leader in sustainability o Stable shareholder returns S eptem ber 2024
Slide 3: Focus on long-term value creation and shareholder returns
Creating long-term value Focus on long-term value creation and shareholder returns Stainless steel Well defined, Improved financial Industry leader Market and Stable is a healthy three-phase and risk profile in sustainability cost leader in shareholder market strategy We have improved We are the onl
Slide 4: We are the global leader in sustainable stainless steel
This is Outokumpu We are the global leader in sustainable stainless steel Outokumpu’s year 2023 Outokumpu’s core business is stainless steel flat products and ferrochrome Sales Stainless steel Adjusted Slab Coil Ferrochrome deliveries EBITDA 7 1.9 517 EUR billion million tonnes EUR million Three bus
Slide 5: Solid presence in key regions and a fully integrated production asset base
This is Outokumpu Solid presence in key regions and a fully integrated production asset base starting from our own chrome mine Production capacity 1,000 tonnes Finland Sweden Germany USA Mexico Total Melting capacity 1,450 450 900 2,800 Finland Hot rolling capacity 1,450 900 870* Finishing capacity
Slide 6: Global customer base and a wide product portfolio
This is Outokumpu Global customer base and a wide product portfolio: both high-value and standard stainless steel production Sales in 2023 per customer segment High-value stainless steel Wide customer base consisting of both (advanced materials)* end-customers and distributors Applications which req
Slide 7: We are accelerating green transition across the value chain
This is Outokumpu We are accelerating green transition across the value chain Lowest Circular economy at the Low-emission ferrochrome carbon footprint core of business production in Finland Carbon footprint up to 75% lower Highest-recycled material Carbon footprint 67% lower than the global average
Slide 8: Business area Europe
This is Outokumpu Business area Europe • Market position #1, market share 33% Adjusted EBITDA EUR million 680 • Production facilities: Finland, Sweden and Germany 485 • Largest customer segments: distributors, automotive, appliances, heavy industries 248 216 142 148 • Business area Europe sold 47% t
Slide 9: Business area Americas
This is Outokumpu Business area Americas • Market position #2, market share 23% Adjusted EBITDA EUR million • Production facilities: Alabama, the U.S. and Mexico 384 297 285 • Largest customer segments: mainly distributors (~70%), appliances, automotive, pipes and tubes • Main competitors: NAS, Clev
Slide 10: Business area Ferrochrome
This is Outokumpu Business area Ferrochrome • Production facilities: Finland Adjusted EBITDA • Our in-house ferrochrome mine in Kemi is a unique EUR million 246 220 210 asset – only chrome mine in the EU area • Outokumpu consumes majority of the ferrochrome 96 91 96 produced internally at own mills
Slide 11: Own low-carbon ferrochrome production is a competitive advantage
This is Outokumpu Our own low-carbon ferrochrome production is a competitive advantage for us and a fundamental part of our fully integrated value chain Outokumpu’s chrome mine and ferrochrome operations in Kemi, Finland. • We own the only chrome mine in the EU area, making • With recent investments
Slide 12: Climate ambitions accelerate demand growth for low-emission stainless steel
Stainless steel is a healthy market Climate ambitions accelerate demand growth for low-emission stainless steel Global megatrends increasing demand Climate change Sustainable Increasing & limited resources urbanization population → Energy investments → Infrastructure → Health care → Resource efficie
Slide 13: Demand for stainless steel expected to grow
Stainless steel is a healthy market Demand for stainless steel expected to grow Global stainless steel demand* in 2023 Expected stainless steel demand* in 2027 Americas Americas 7% +15.4% EMEA EMEA 13% +20.8% 30.8 +15% 35.5 million tonnes million tonnes APAC APAC 80% +14.5% Source: Source: CRU Stain
Slide 14: Our three-phase strategy enables strong shareholder returns
W ell defined, three-phase strategy Our three-phase strategy enables strong shareholder returns OUR VISION Customer’s first choice Phase 3: 2026– in sustainable stainless steel Strong sustained performance Phase 2: 2023–2025 Strengthen the core Americas expansion, Phase 1: 2021–2022 European competi
Slide 15: Phase 1: 2021–2022, Phase 2: 2023–2025, Phase 3: 2026–
W ell defined, three-phase strategy WHERE WE ARE NOW: Phase 1: 2021–2022 Phase 2: 2023–2025 Phase 3: 2026– De-risking the company and Strengthening the core of the company Next steps - Third phase of the strategy strengthening balance sheet 2026 onwards • Key priorities: Sustainability, • Key priori
Slide 16: Strategy phase 2: strengthening the core, reducing CO2, shareholder returns
W ell defined, three-phase strategy Strategy phase 2: strengthening the core of the company, reducing CO2 emissions and focusing on shareholder returns Financial targets EBITDA run-rate Net debt to CAPEX over the Stable and Emission intensity for 2023-2025 improvement adjusted EBITDA next 3 years gr
Slide 17: Sustainability at the core of our strategy
W ell defined, three-phase strategy Sustainability at the core of our strategy Climate Committment to reduce emissions across scope 1, 2 and 3 by 42% by 2030*. Circularity Target to achieve over 90% recycled material content. Energy efficiency Improve energy efficiency by 8% by the end of 2024. Peop
Slide 18: Significantly improved resilience in a cyclical industry
Improved financial and risk position Significantly improved resilience and capability to create value in a cyclical stainless steel industry 1 256 Solid foundation to create value over the cycle Strong balance sheet is required in a volatile industry 980 to withstand also challenging market conditio
Slide 19: We accelerate green transition with low-emission stainless steel
Industry leader in sustainability We accelerate green transition with low-emission stainless steel and continue to decarbonize our value chain with our partners • 90% of Outokumpu’s sales in 2023 Emission intensity is both eligible and aligned with (tCO2-eq/t of stainless steel) the EU taxonomy 2,5
Slide 20: Lowest carbon footprint in the industry
Industry leader in sustainability Outokumpu supports customers to reduce their emissions with the lowest carbon footprint in the industry Value chain emissions (tCO2-eq/t of stainless steel)* 8.8 7 2.8 1.5 2.0 1.0 Down to 0.5 0.8 0.5 China & Indonesia Industry mean Estimated European Outokumpu Outok
Slide 21: Our starting point for emission reductions
Industry leader in sustainability Our starting point for emission reductions Emissions per scope in 2023 Scope 1 Total: 1,013 ktCO2 Scope 2 Total: 142 ktCO2 Scope 3 Total: 2,309 ktCO2 15% Propane, light fuel 33% 43% oil and other 5% Other Local grid Nickel 52% electricity Coke and internal CO gas 33
Slide 22: People are our most valuable asset
Industry leader in sustainability People are our most valuable asset World-class safety performance TRIFR* 8,7 4,4 4,1 3,2 2,4 2 1,8 1,5 2016 2017 2018 2019 2020 2021 2022 2023 Personnel Increase in Improving diverse leaders pay equity 8,469 +26% 0.99 women’s euro with full-time equivalent from 2022
Slide 23: Strong commitment to a stable and growing dividend
Stable shareholder returns Strong commitment to paying Share buybacks are another tool a stable and growing dividend in line to return capital to the shareholders with our dividend policy 31 million shares repurchased in 2022–2024 to manage the dilutive impact from the convertible bond Dividend per
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Slide 25: Continue our climate strategy to further reduce our emissions
Continue our climate strategy to further reduce our emissions aligned with 1.5 degrees – circularity and innovation at the core 2016–2023 2023 results 2030 target High recycled material content, low-emission -27% tCO2/ton CS -42% tCO2/ton CS energy, energy efficiency and incremental process impr
Slide 26: Strong partnerships with customers to drive the green transition
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 worldstainless).
Slide 27: How is cold rolled stainless coil produced at Outokumpu?
How is cold rolled stainless coil produced at Outokumpu? Kemi Ferrochrome Steel Hot Cold mine works melting shop rolling mill rolling plant Underground Sintering Liquid Walking Hot annealing 1. mine 1. furnace 1. ferrochrome 1. Beam 1. and pickling line Furnace 2. Hoisting 2. Smelter 2. Recycled 2.
Slide 28: Appendix
Appendix Latest financial materials and presentations Financing and credit information https://www.outokumpu.com/en/investors/materials https://www.outokumpu.com/en/investors/financing-and-credit- information Latest CEO’s review Sustainability data tool https://www.outokumpu.com/en/investors/outokum
Slide 29: Contacts
Contacts Linda Häkkilä Head of Investor Relations linda.hakkila@outokumpu.com +358 400 719 669 S eptem ber 2024