Outokumpu (OUT1V) investor relations material

Market leadership and business model

• Holds #1 position in Europe and #2 in the U.S. for sustainable stainless steel, with a leading ferrochrome market share in the Western world and the only chrome mine in the EU.

• Diverse end-market exposure includes consumer goods, industrial, automotive, construction, and energy sectors.

• Integrated production chain from chrome mining to finished stainless steel, with facilities in Finland, Sweden, Germany, the U.S., and Mexico.

• Growth strategy focuses on specialty stainless steels, advanced materials, and technology-enabled low-CO2 metals.

• Financial health supports transformative growth and shareholder returns.

Market trends and growth drivers

• Specialty and advanced stainless steel markets are growing faster than standard grades, driven by higher margins and reduced cyclicality.

• Policy measures like CBAM and stronger trade protections in the EU and U.S. expand the addressable market and favor low-emission producers.

• Reshoring and supply chain resilience are boosting demand outlook, especially in North America.

• Ferrochrome demand is closely tied to stainless steel production, with supply uncertainty supporting Western producers.

Financial performance and capital management

• 2025 profitability was impacted by subdued stainless steel demand, especially in Europe, with adjusted EBITDA at EUR 167 million.

• Maintained strong capital management, with 2025 capex at EUR 145 million and a total of EUR 1,040 million invested from 2020-2025.

• Net debt reduced by EUR 763 million since 2020, with a net debt to EBITDA ratio of 1.6 and liquidity reserves of EUR 1.2 billion.

• Financial targets include a net debt to EBITDA ratio of 1.0x and minimum IRRs of 15% for foundational and 20% for transformative investments.

• Dividend policy aims for stable, growing returns while maintaining investment flexibility.