OUTOKUMPU OYJ U/ADR NEW - OUTKY STOCK NEWS

Outokumpu, a global leader in sustainable stainless steel, has been recognized for the second time as a Climate Leader in Europe by the Financial Times. This acknowledgment highlights Outokumpu's significant reduction in Scope 1 and 2 greenhouse gas emissions intensity by 27% from 2016 to 2023. The company achieved this through increased use of recycled materials, low-emission electricity, and operational changes. Additionally, Outokumpu has made investments in biocoke production and explored carbon capture technology. By 2030, the company aims to cut emissions intensity by 42% from the 2016 baseline. Outokumpu's commitment to sustainability has also led to its inclusion in the Climate Leadership Coalition and its ranking among the top 50 companies globally by Corporate Knight's Clean200 list.

Outokumpu Oyj (OUTKY) Receives Platinum Rating from EcoVadis, Ranks Among Top 1% of Assessed Companies

Outokumpu signs letter of intent with Greenland Resources Inc. to secure sustainable molybdenum supplies

Outokumpu is making progress in strengthening its core and preparing for the third phase of its strategy. The company aims to strengthen its market position, expand globally, and invest in sustainability. Outokumpu has improved its operational performance in the Americas, thanks to favorable U.S. government policies. They are conducting a feasibility study to expand their U.S. operations and exploring options for increasing capacity in their Calvert mill in Alabama.

Outokumpu reported a robust Q3 2022, with sales reaching EUR 2,339 million, a significant increase from EUR 1,845 million in Q3 2021. Adjusted EBITDA rose to EUR 304 million from EUR 288 million. A notable highlight was the reduction of net debt to an all-time low of EUR 90 million. The company launched a share buyback program for a maximum of 20 million shares. However, stainless steel deliveries fell by 12% in a challenging market environment, impacted by high imports and rising costs in energy and raw materials.

Outokumpu's Board of Directors has approved a share buyback program worth up to EUR 100 million, aiming to repurchase 20 million shares, about 4.4% of its total shares. The program will start on November 7, 2022, and conclude by March 24, 2023. This initiative seeks to manage the dilutive effects of existing convertible bonds and may involve holding shares as treasury or cancelling them. The buyback will use unrestricted equity and is conducted under safe harbor regulations on Nasdaq Helsinki.

Outokumpu has announced a significant increase in its energy efficiency improvement target, aiming for an 8% enhancement across the group by the end of 2024, compared to January–September 2022 levels. This initiative is a response to the European energy crisis and involves an additional EUR 20 million in capital expenditure for 2023 and 2024, while maintaining a EUR 200 million annual capex. The company also targets a 42% reduction in CO2 emissions by 2030 from a 2016 baseline. These measures are expected to save approximately 600,000 MWh, equivalent to the annual electricity use of 15,000 households.

On September 15, 2022, Moody's affirmed Outokumpu Oyj's Ba3 corporate family rating and upgraded its outlook to positive from stable. CFO Pia Aaltonen-Forsell highlighted the company's improved financial positioning, marked by reduced net debt and enhanced profitability, while maintaining liquidity. This rating is the highest credit rating for Outokumpu since attaining Moody's rating in 2016, indicating a stronger resilience in challenging economic environments.

Outokumpu has successfully completed the first phase of its strategy, focusing on de-risking and strengthening its balance sheet, achieving a EUR 250 million EBITDA run-rate improvement and reducing its net debt to EBITDA ratio below 3.0. The company is set to enter the second phase, emphasizing sustainability and productivity, with a target to reduce CO₂ emissions by 14% by 2025. Updated financial targets include maintaining net debt to EBITDA below 1.0 and an EBITDA improvement of EUR 200 million, alongside a commitment to stable shareholder returns.