Outokumpu (OUT1V) CMD 2025 summary

Strategic direction and business transformation

• Launched the EVOLVE strategy to drive growth, higher margins, and resilience through 2030, focusing on foundational and transformational business segments.

• Expanding into advanced materials, high-nickel alloys, and innovative low-CO2 metals, leveraging proprietary technology and unique assets in Sweden and Germany.

• Americas strategy shifts from standard stainless steel to transformative growth, including high-nickel alloys and green metals.

• Investing in a new annealing and pickling line in Tornio, Finland, and closing less competitive lines in Germany to optimize footprint and improve EBITDA.

• Strengthening sustainability leadership with 95% recycled material content and aiming for carbon-neutral mining by 2025.

Technology and innovation

• Announced a breakthrough extraction technology enabling production of high-purity chrome and nickel metals, scalable to other metals and waste streams.

• New process eliminates the need for coke, significantly reduces CO2 emissions, and decouples product quality from ore quality.

• Proprietary low-CO2 metal extraction technology platform developed, with pilot and industrial-scale deployment planned at the Kemi mine.

• Technology enables production of enriched ferrochrome (up to 65% chrome) and pure chrome metal, with first industrial scale targeted by 2027 and full deployment post-2030.

• Building a strong IP portfolio and R&D capabilities to support future growth in sustainable metals and advanced alloys.

Financial guidance and capital allocation

• Targeting normalized EBITDA of EUR 750–850 million by 2030, driven by foundational improvements and efficiency gains.

• EUR 250 million EBITDA uplift split: ~50% from Europe, 25% from ferrochrome, remainder from Americas and corporate.

• Net debt to EBITDA ratio reduced to 1.1x in 2024 from 4.1x in 2020, with a target of 1.0x for 2026-2030, allowing temporary increases for strategic investments.

• Clear investment criteria: 15% IRR for foundational, 20% for transformative projects, with disciplined capital allocation and focus on shareholder returns.

• Over €531 million returned to shareholders between 2020–2024 through dividends and buybacks.