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CAPITAL MARKETS DAY June 11, 2025 1
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AGENDA AND SPEAKERS 2 Pioneer materials and technologies that power tomorrow Kati ter Horst, President and CEO Technology – creating long-term competitive advantage Stefan Erdmann, Chief Technology Officer Fit for Evolve – well positioned for resilient growth and value creation Marc-Simon Schaar, Chief Financial Officer Q&A Kati ter Horst, Marc-Simon Schaar and Stefan Erdmann Short Q&A – Kati ter Horst and Stefan Erdmann Coffee break Kati ter Horst Marc-Simon Schaar Stefan Erdmann
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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 the date of this presentation. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. Future results of Outokumpu may vary from the results expressed in, or implied by, the forward- looking statements, possibly to a material degree. Factors that could cause such differences include, but are not limited to, the risks described in the "Risk factors" section of Outokumpu’s latest Annual Report, and the risks detailed in Outokumpu’s most recent financial results announcement. Outokumpu undertakes no obligation to update this presentation after the date hereof.
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PIONEER MATERIALS AND TECHNOLOGIES THAT POWER TOMORROW Kati ter Horst, President and CEO 4
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2025 5
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STRONG BASIS TO START INVESTING IN TRANSFORMATIVE GROWTH Net debt to adj. EBITDA ratio reduced to 1.1x IN 2024 FROM 4.1x IN 2020 Capital returns for shareholders €531 MILLION 2020--2024 Adjusted EBITDA approx. €640 MILLION ON AVERAGE 2020--2024 Stainless steel deliveries 2.0 MILLION TONS ON AVERAGE 2020--2024 Record-high recycled material content 95% IN 2024 World-class safety performance, TRIFR 1.5 IN 2024 6
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GEOPOLITICS AND MEGATRENDS DRIVING THE DEMAND FOR OUTOKUMPU 7 SOLAR APPLICATIONS NEW MOBILITY SOLUTIONS HYDROGEN STORAGE & TRANSPORTATION ADDITIVE MANUFACTURING WATER TREATMENT & DESALINATION DEFENCE INDUSTRY
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IMPROVING RESILIENCE TO CYCLICALITY AND GEARING FOR TRANSFORMATIVE GROWTH Ensuring cost competitiveness and cash generation Not an area of growth; finances growth in transformative businesses Disciplined investments in mandatory and maintenance Targeted investments in cost competitiveness and smart decarbonization Ambition to grow in areas that provide – higher growth, – higher margins and – less cyclicality Unique position to win Improving resilience Key focus area for organic and inorganic investments TRANSFORMATIVEFOUNDATIONAL 8
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WE STRENGTHEN OUR FOUNDATION WHILE INVESTING INTO TRANSFORMATIVE AREAS 9 TRANSFORMATIVE GROWTH IN THE AMERICAS Exploring growth opportunities beyond standard stainless steel – attractive market in the long-term INNOVATIVE MATERIALS AND TECHNOLOGIES Capitalizing on proprietary technology to produce low-CO₂ metals and climbing up the chromium value ladder ADVANCED MATERIALS AND ALLOYS Expanding into near-core alloys either organically or inorganically SUSTAINABILITY LEADERSHIP RAW MATERIAL SECURITYCOST COMPETITIVENESS FOUNDATIONAL SUSTAINABLE STAINLESS STEEL Improving the competitiveness of our sustainable stainless steel business in Europe and Americas ADVANCED MATERIALS Accelerating the commercial transformation of advanced materials FERROCHROME Increasing value from chrome mine, repositioning from a mainly internal supplier of ferrochrome to an unrestricted market player
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EUROPE Market is expected to recover with a demand growth rate of 3.3% p.a. by 2029* Growing demand for low-emission stainless steel with a green premium Key focus on cost competitiveness by optimizing footprint and enhancing capabilities – Plan to invest approx. EUR 200 million in a new annealing and pickling line in Tornio, Finland to maximize benefits from fully integrated, cost- efficient operations – Intention to close two less competitive lines in Krefeld, Germany once the new line in Tornio is running – This would generate approx. EUR 70 million annual EBITDA improvement through the cycle once the new set-up is operational AMERICAS Market is expected to recover with a demand growth of 2.8% p.a. by 2029* Key focus on improving cost competitiveness and operational efficiency through targeted investments Leveraging strong #2 market position through commercial strategy Exploring growth opportunities beyond standard stainless steel RESILIENT AND COMPETITIVE FOUNDATION IN SUSTAINABLE STAINLESS STEEL 10 FOUNDATIONAL *Source: CRU, demand growth 2024–2029
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0.0 0.5 1.0 1.5 2.0 2016* 2017* 2018* 2019 2020 2021 2022 2023 2024 Direct Indirect Upstream CO2 emission intensity 2025 2026 2027 2028 2029 2030 2016–2024 High recycled material content, low-emission energy, energy efficiency and incremental process improvements *Including discontinued operations 2024–2030 Targeted investments in biocoke, low- emission raw materials, utilization of by-products and carbon capture through established technologies as well as new innovations 2030 TARGET - 42% tCO2/ton CS 2024 RESULTS - 32% tCO2/ton CS against 2016 baseline SMART DECARBONIZATION UNLOCKING NEW BUSINESS OPPORTUNITIES 11 FOUNDATIONAL Up to 75% lower carbon footprint compared to industry average Undisputed sustainability leader in the industry Capturing voluntary and regulatory demand for low-emission stainless steel and ferrochrome From waste to value – by-products generating new business opportunities Competitive advantage through CBAM Lower CO2 emissions result in cost avoidance as free emission rights are reduced in the European Emission Trading System (ETS)
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SECURING SUSTAINABLE AND COST COMPETITIVE SUPPLY OF CRITICAL RAW MATERIALS Critical raw material especially for the production of specialty stainless steel – EU is the second largest consumer, but there is no mining in Europe 10-year off-take agreement with Greenland Resources Inc. to provide access to low- emission and cost-competitive molybdenum MOLYBDENUM Diversified, sustainable and compliant nickel sourcing 9.9% ownership in FPX Nickel junior mine in Canada to strengthen the future supply of cost-competitive and sustainable nickel NICKEL 12 Scrap is the main raw material, supporting 95% recycled material content Good access to scrap and strong partnerships, 10% investment to CRONIMET North-East GmbH gives further support SCRAP FOUNDATIONAL Ownership of the only chrome mine in the EU area and integrated ferrochrome production Availability of chromium secured until 2050s – no further investments needed to benefit from the increase in mineral reserves FERROCHROME
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ENHANCED GROWTH & PROFITABILITY RIGHT TO WIN THROUGH COMPETITIVE ADVANTAGES & CAPABILITIES REDUCED CYCLICALITY BUILD UNIQUENESS INCREASE GEOPOLITICAL RESILIENCE LEVERAGE & STRENGTHEN SUSTAINABILITY LEADERSHIP BUILD STRATEGIC OPTIONALITY CLEAR VALUE CREATION CRITERIA FOR TRANSFORMATIVE INVESTMENTS, MINIMUM IRR OF 20% 13 TRANSFORMATIVE
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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 advanced, higher- margin products Entering new markets and customer segments Secured access to sustainably sourced raw materials in order to grow within advanced materials and alloys Enhancing our specialty grades offering and supporting growth in advanced materials and alloys Nickel Alloy 825 14 TRANSFORMATIVE
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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 advanced materials offering Feasibility study ongoing for organic investment in melt shop in Avesta Unique asset base in Sweden well suited for high-nickel alloys – Powerful hot-rolling capacity in Avesta – Possibility to produce wide and heavy coils as well as wide and thick plates Exploring also inorganic options to grow ... AND EXPLORING GROWTH OPPORTUNITIES IN HIGH-NICKEL ALLOYS *Management consultancy: flat products, global 15 TRANSFORMATIVE
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2025 HIGH-NICKEL ALLOYS DRIVE INNOVATION & SUSTAINABLE APPLICATIONS 16 Reactors Filter systems Heat exchanger Tubes Pressure tanks ENERGY Geothermal energy Hydrogen electrolyzers & storage LNG transportation TYPICAL APPLICATIONS HIGH GROWTH POCKETS Mechanical line pipes Tubes & umbilical Heat exchanger Blowout preventer LNG infrastructure Hydrogen ready pipelines Carbon capture storage ELECTRICAL & ELECTRONICS Heating elements Transformers Residual current circuit breaker Polysilicon (PV) Armor systems & casings Thermal management Hypersonic skin panels Laser cooling plats & thermal interfaces Exhaust system Catalysts eFuels (Power-to-X) OIL & GAS DEFEN C E INDUSTRY OTHER TRANSFORMATIVE
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OUR UNIQUE POSITION PROVIDES SIGNIFICANT VALUE CREATION POSSIBILITIES WITHIN FERROCHROME … STRATEGIC ASSET – the only chrome mine in the EU area and the world’s first carbon neutral mine by the end of 2025 GROWING DEMAND towards low-emission ferrochrome from geopolitically reliable sources UNLOCKING FULL POTENTIAL by broadening customer base and moving towards higher value products; capacity ready for commercialization 1 2 3 4 17 WELL POSITIONED with CBAM – European ferrochrome production with 67% lower carbon footprint* *Compared to industry average TRANSFORMATIVE
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18 Global demand for metals is accelerating Supply constraints tightening due to geopolitical, environmental, and regulatory pressures Western customers and regulators demand lower-carbon, geopolitically compliant, and cost- competitive solutions Traditional sources and extraction methods no longer fit-for-purpose TRANSFORMATIVE … TO CLIMB UP THE CHROMIUM VALUE LADDER AND PIONEER IN LOW-CO2 METALS WE HAVE THE ANSWER An ideal launchpad – our chrome mine Capabilities to climb up the chromium value ladder Innovative and proprietary technology1 2 3 Scalability to other strategic metals4
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INCREASING THE VALUE OF OUTOKUMPU 19 NET DEBT TO EBITDA ratio of 1.0x with disciplined financial flexibility to support strategic investments and manage cyclical market conditions, allowing it to only temporarily exceed 2.0x EBITDA run-rate improvement of EUR 250 million through foundational initiatives FINANCIAL TARGETS 2026–2030 MINIMUM IRR of 15% for foundational investments MINIMUM IRR of 20% for organic transformative investments INVESTMENT CRITERIA DIVIDEND POLICY Aim to pay a stable and growing dividend over time, while maintaining the flexibility to invest in transformative initiatives that yield a minimum internal rate of return (IRR) of 20% and accounting for market cyclicality Maximizing value from sustainable stainless steel Growing profitably in advanced materials and alloys Revolutionizing value creation with innovative materials and technologies Focusing on total shareholder returns and keeping our balance sheet healthy
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TECHNOLOGY – CREATING LONG-TERM COMPETITIVE ADVANTAGE Stefan Erdmann, Chief Technology Officer 20
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TRANSFORMATIVE INNOVATION IN METALS AND TECHNOLOGIES ENABLING NEW PRODUCTS AND MARKETS New processing approaches can enable the production of metals without the use of carbon as a reductant DECARBONIZATION Ore treatment enables higher chrome content ferrochrome to be produced Lower carbon production methods lead to higher purity and value ferrochrome HIGHER VALUE FERROCHROME 21 ADVANCED MATERIALS & ALLOYS Direct production pathways for advanced materials and specialty alloys can be developed for high value product manufacturing New processing pathways enable production of new products (chrome, nickel, molybdenum etc.) for high value markets: aerospace, defense, etc. NEW VALUE STREAMS
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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 Built a proprietary IP portfolio, securing our leadership in advanced metallurgy Positioned at the forefront of metals innovation through years of focused research Successfully scaled production of key materials from lab-scale (1g) to pilot-scale (1kg)
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DISRUPTIVE EXTRACTION TECHNOLOGY Economically Valuable Byproducts TRADITIONAL SMELTING Coke Slags Metal Ore Ferroalloy CO/CO2 Smelting Metal Ore or other metal containing material Reductant Pure Metal Enriched Ferroalloy Slags Non- carbon offgas OR PARADIGM SHIFT: OUR PROPRIETARY LOW-CO2 METAL EXTRACTION TECHNOLOGY PLATFORM 23 Lower climate impact Breaks the link between ore and end-product quality Unlocking value from marginal or uneconomic resources Flexible and scalable for a wide range of metals Cost competitive process 1 2 3 4 5
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24 Cr value Cr content, Cr/Fe ratio FeCr53% ~1 200 EUR/t Pure Cr >9 000 EUR/t FeCr65% ~1 600 EUR/t 1 2 CHROMIUM MATERIALS Premium-priced products, especially at highest purities Essential for high-performance applications in aerospace, defense, energy, and other demanding sectors No integrated Western supply; current supply chain exposed to geopolitical risk Traditional production methods carry major environmental and health concerns CHROMIUM ENRICHED FERROCHROME Higher margin products with clear price premium over standard ferrochrome Large market opportunity for low-CO₂ products with limited Western supply today 2 1 KEMI MINE OFFERS THE IDEAL LAUNCHPAD FOR OUR PROPRIETARY TECHNOLOGY UNLOCKING NEW HIGH-VALUE PRODUCTS
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25 REACH FULL POTENTIAL 2030 AND BEYOND Develop new high-value products (specialty alloys, nickel, molybdenum, etc.) Establish leading position in low-CO₂ metal solutions PROVE SCALABILITY 2025–2027 Build pilot plant to validate scalability and industrial feasibility Scale process from 1kg to 1 ton scale UNLOCK KEMI MINE VALUE 2027–2030 Construct first industrial- scale plant Use Kemi ore to produce high-chromium ferrochrome (e.g., FeCr65%) and chromium materials incl. chromium metal FROM LAB-SCALE INNOVATION TO INDUSTRIALIZED, HIGH-VALUE METALS BUSINESS PILOT PHASE INDUSTRIALIZATION SCALING UP
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SHAPING OUR FUTURE THROUGH INNOVATIVE TECHNOLOGIES BREAKTHROUGH extraction technology, ready to scale A PLATFORM for future growth across sustainable metals SCALABLE across stainless value chain and other strategic metals ADDRESSING global supply, cost, and sustainability challenges FIRST DEPLOYMENT of Kemi chromite ore with strong economics and strategic fit
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27 Q&A
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FIT FOR EVOLVE – WELL POSITIONED FOR RESILIENT GROWTH AND VALUE CREATION Marc-Simon Schaar, Chief Financial Officer 28
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29 INVESTMENTS INTO GROWTH COMPETITIVE SHAREHOLDER RETURNS STRONGEST BALANCE SHEET IN THE INDUSTRY STEP-UP IN THROUGH-THE-CYCLE PROFITABILITY OUR STRATEGIC PATH TO COMPETITIVE RETURNS
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WE HAVE SIGNIFICANTLY IMPROVED OUR THROUGH-THE-CYCLE PERFORMANCE OVER THE YEARS… 3030 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* EUR million 2012–2015 Average adjusted EBITDA ~ EUR 50 million 2016–2019 Average adjusted EBITDA ~ EUR 410 million 2020–2024 Average adjusted EBITDA ~ EUR 640 million Adjusted EBITDA (EUR million, excl. Long Products & APAC) Deliveries (kilotonnes) (kt) *Adj. EBITDA 2024 adjusted for EUR -60 million strike impact 1 400 1 600 1 800 2 000 2 200 2 400 2 600 -200 0 200 400 600 800 1000 1200 1400
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…AND BUILT A STRONG PLATFORM FOR FUTURE GROWTH 3131 4.0x 2.6x 4.4x 4.1x 0.4x 0.0x -0.1x 9.8x 1.7x 1.1x Net debt to EBITDA ratio at the end of the period 0.1 0.25 0.15 0.15 0.35* 0.26 0.26 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Strategic and development capex Dividends Share buybacks Maintenance and mandatory capex Capital allocation 2015–2024 Change in net debt 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 * The extra dividend of EUR 0.10 per share was a one-time extra dividend that was distributed for the exceptionally good result of the financial year 2022 Dividend per share, EUR Year for which the dividend was paid 42% 22% 20% 13% 3%
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NOW WE ENTER INTO THE NEXT PHASE OF STRATEGIC VALUE CREATION
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33 FOUNDATIONAL Focus on strong operating cash flow Disciplined maintenance and mandatory capex as well as working capital management Focused investments into competitiveness and smart decarbonization with IRR threshold at 15% Sustain competitiveness and fund transformation STRATEGIC BUSINESS OBJECTIVES AND INVESTMENT CRITERIA TO DRIVE COMPETITIVE SHAREHOLDER VALUE Organic / inorganic growth Minimum IRR of 20% TRANSFORMATIVE Funded by cash generation from foundational and balanced leverage Unlock high-value growth opportunities EBITDA growth coupled with less cyclicality
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34 OUR FOUNDATIONAL INITIATIVES ARE EXPECTED TO IMPROVE OUR NORMALIZED EBITDA TO EUR 750–850 MILLION Indicative EBITDA improvement, EUR million 400 450 500 550 600 650 700 750 800 850 500–600 750–850 Fixed cost savings Efficiency improvements Product development and customer mix improvements Current normalized EBITDA baseline Normalized 2030 EBITDA with foundational initiatives *Annealing and pickling line Footprint optimization through AP* investment in Tornio allowing closure of two lines in Krefeld Outsourcing and labor flexibilization Lean and agile organization Yield, energy and raw material efficiency improvements through targeted investments in BA Americas Higher efficiency due to more modern and larger AP* production line with higher degree of integration in BA Europe Route to market product flow optimization New products and customer segments within existing asset base in advanced materials BA Americas’ commercial strategy Expand customer portfolio and broaden product offering with higher margins in BA Ferrochrome
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STRONG CASH GENERATION AND SMART CAPITAL ALLOCATION TO MAINTAIN A HEALTHY BALANCE SHEET SOURCES OF CASH 2026-2030 35 STRONG CASH FLOW FROM FOUNDATION THROUGH EBITDA GROWTH AND WORKING CAPITAL DISCIPLINE BALANCED USE OF DEBT TO FUND THE TRANS- FORMATIVE INVESTMENTS USES OF CASH 2026-2030 FOUNDATIONAL INVESTMENTS DISCIPLINED MAINTENANCE & MANDATORY CAPEX Competitive dividend and opportunistic share repurchases Selective investments to unlock high-value opportunities to reduce cyclicality and drive value creation Targeted investments into competitiveness and sustainability Maintaining asset reliability ~ EUR 100 million per annum, except EUR 200 million in 2026 SHAREHOLDER RETURNS TRANSFORMATIVE INVESTMENTS
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INCREASING VALUE OF OUTOKUMPU THROUGH 2026–2030 HEALTHY BALANCE SHEET WITH FOCUS ON CASH GENERATION NET DEBT TO EBITDA ratio of 1.0x with disciplined financial flexibility to support strategic investments and manage cyclical market conditions, allowing it to only temporarily exceed 2.0x EBITDA run-rate improvement of EUR 250 million through foundational initiatives FINANCIAL TARGETS SUSTAIN COMPETITIVENESS AND UNLOCK GROWTH OPPORTUNITIES MINIMUM IRR of 15% for foundational investments MINIMUM IRR of 20% for organic transformative investments INVESTMENT CRITERIA DIVIDEND POLICY COMPETITIVE SHAREHOLDER RETURNS Aim to pay a stable and growing dividend over time, while maintaining the flexibility to invest in transformative initiatives that yield a minimum internal rate of return (IRR) of 20% and accounting for market cyclicality 36
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POSITIONED TO EVOLVE. BUILT TO DELIVER. 37
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38 Q&A