2015
316
plusmakes
containers last
Finnish Langh Group Cargo Solutions selected Outokumpu’s new high-chromium austenitic steel grade Outokumpu 316plusTM as principal building material for their new tanks and special cargo containers for liquid transportation in ships, trucks and on trains.
316plus has higher strength compared to 316(L), allowing durable but thinner walls which result in lighter weight and an increase in the amount of material carried.
Says Markku Yli-Kahri from Langh Group Cargo Solutions: “We needed a strong material for corrosive environment and Outokumpu offered the 316plus as a new, cost-effective alternative. We could use familiar tools and welding techniques in construction, making the fabrication fast and easy.”
Interim
CONTEN
Highlights i Business a CEO Mika S Update on Ongoing ra Market dev Business a Financial p Market and Key targets Risks and u Environme Share deve Corporate g Events afte CondensedNTS
in the first q nd financial Seitovirta: ... profitability mp-ups ... velopment .. reas ... performance d business o s updated .... uncertaintie nt ... elopment an governance er the end of d consolidate quarter 2015 l outlook for ... improveme ... ... ... e ... outlook ... ... es ... ... nd sharehold ... f the reporti ed financial 5 ... r the second ... ent program ... ... ... ... ... ... ... ... ders ... ... ng period .... statements ... d quarter of ... ms ... ... ... ... ... ... ... ... ... ... ... ... s ... ... 2015 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 1 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 1 (39) ... 2 ... 3 ... 4 ... 5 ... 6 ... 6 ... 9 ...12 ...17 ...19 ...19 ...20 ...21 ...22 ...22 ...23Underly
America
Highligh
Outokumpu The improv whereas Co Stainle Underl underl higher EBIT w million derivat Operat Net de 91.5% 1) Metric ton 2) EBIT/EBITDying EBIT
as disap
hts in the
u reported u vement in p oil Americas ess steel del lying EBITDA ying EBIT2 w delivery vol was EUR -10 n (IV 2014: E tive gains of ting cash flo ebt increase % (Dec 31, 20 = 1,000 kg DA excluding noT EUR 2 m
ppoints
e first qu
underlying E profitability ’ performan liveries grew A2 was EUR was EUR 2 umes and b 0 million (IV EUR -27 mil f EUR 7 milli ow was EUR d to EUR 2, 014: 92.6%) on-recurring itemillion: C
uarter 20
EBIT of EUR was driven ce was disa w by 9.2% an R 77 millio million (IV benefits from V 2014: EU lion), as wel on (IV 2014 -62 million ( 034 million ) mainly dueems, raw mate
Coil EME
015
2 million ve by higher appointing. O nd were 620 on compare 2014: EUR m the profita R -36 millio ll as the net 4: EUR 0 mill (IV 2014: EU (Dec 31, 20 e to the posi erial-related invEA contin
ersus EUR -9 volumes a Operating ca 0,000 tonne ed to EUR R -9 million) bility improv on). EBIT in t effect of ra lion). UR 122 milli 014: EUR 1 tive equity d ventory gains/lnues on
9 million in nd steady p sh flow was s1 (IV 2014: 72 million . The impro vement prog cludes non-aw material-on). ,974 million developmentosses and met
track bu
the fourth q performance s negative EU : 568,000 to in the fou ovement wa grams. -recurring it -related inve n) while gea t. tal derivative g 2ut Coil
quarter of 2 e in Coil EM UR 62 millio onnes). rth quarter s mainly du ems of EUR entory and m ring improve gains/losses 2 (39) 014. MEA, on. and ue to R -19 metal ed toBusines
The market stocks grad Asian impo growth is s pressure. Outokumpu somewhat to be slight the net im expected to Outokumpu restructurin Group key Sales EBITDA EBITDA exc Underlying E EBIT EBIT excl. n Underlying E Result befo Net result f Earnings pe Return on c Net cash ge Net debt at Debt-to-equ Capital exp Stainless st Stainless st Personnel a 1) EBITDA exc gains/losses, 2) EBIT exclud 3) 2014 figure 4) Excludes fe 5) Stainless stss and fi
t outlook fo dually norm orts continue showing so u estimates in Europe a tly negative mpact of ra o be margina u’s operatin ng programs y figures l. non-recurrin EBITDA 1) on-recurring i EBIT 2) ore taxes or the period er share 3) capital employ enerated from t the end of pe uity ratio at the penditureteel deliveries teel base pric at the end of p luding non-recu , unaudited. ding non-recurri es calculated ba errochrome deli teel: CRU - Germ
nancial
r stainless s malizing and es and low me weakne s flat deliv nd decrease driven by w w material-al if any. ng result m s. This outloo ng items tems yed m operating ac eriod e end of perio s 4) e 5) periodurring items, oth
ng items, raw m ased on the righ
veries. man base price
outlook
steel varies underlying nickel price ess and the very volume e in America eaker profit -related inve may be imp ok reflects th ctivities odher than impairm
material-related ts-issue-adjuste (2 mm cold roll
for the s
by region. In demand re e puts cons e markets i es quarter-o as. Group’s u tability in the entory and pacted by n he current s EU EU EU EU EU EU EU EU EU EU EU EU 1,00 EUments; raw mat
inventory gains ed weighted ave led 304 sheet).
second q
n Europe, or emaining he straints on d n the APAC on-quarter: underlying E e business a metal deri non-recurring scope of ope UR million UR million UR million UR million UR million UR million UR million UR million UR million EUR % UR million UR million % UR million 00 tonnes UR/tonne terial-related inv s/losses and me erage number oquarter o
rder intake ealthy. In th distributor s C region for deliveries EBIT for the sarea Coil Am ivative gain g items ass erations. I/15 1,768 65 83 77 -10 8 2 -46 -45 -0.10 -1.0 -62 2,034 91.5 26 620 1,050 11,824 1 ventory gains/lo etal derivative g f shares.
of 2015
is improving he Americas sector buyin r stainless are expect second qua mericas. Wit ns/losses on ssociated w IV/14 1,674 1 45 73 72 -36 -9 -9 -75 -56 -0.13 -3.5 122 1,974 1 92.6 54 568 1,053 1 12,125 12osses and meta
gains/losses, un 3 g with distrib s, pressure ng. Chinese steel are u ted to incr rter is estim h current pr n profitabili ith the ong
I/14 2 1,617 6, -78 34 37 -188 --48 -45 -262 --248 --1.66 --18.3 -14 -1,733 1, 75.9 9 15 676 2, 1,070 1, 2,436 12, al derivative naudited. 3 (39) butor from GDP under ease mated rices, ty is going 2014 ,844 104 263 232 -243 -57 -88 -459 -439 1.24 -5.8 -126 ,974 92.6 127 ,554 ,082 ,125
CEO Mik
“In the first sequentiall demand. Es underlying profitability Coil EMEA driven by th closed in J visible on t measures a duties, the continues o breaks in th In Coil Ame rise, and th Combined w of 2014, th been resolv competitive million in th 540,000 to In the seco order intak to be heal underlying Our immed improveme despite theka Seito
t quarter, w y up by 9% specially dis EBIT of EUR y. continued he higher deune, and its the second against Chin impact on on a positiv he Ferrochro ericas, we h he demand with the del he Coil Ame ved. Instead e environme he previous onnes. ond quarter, e is improvi lthy. Thus, EBIT for the diate focus ents in all bu e set-back in
ovirta:
e reached a %. However, stributor sec R -45 million steady prog eliveries and s positive im half of the nese and Ta the market ve trajectory ome product have seen d from distri ivery challen ericas’ order d of growing ent. The Coil quarter, an , we expect ng as the st at the Grou second qua s is on tur usiness area n Coil Americ a positive un due to ver ctor remaine n of the first gress, impro d production mpact on th year. We a aiwanese im dynamics is y, the secon tion. disappointing butors rema nges that we r intake has our market Americas’ u d the full-ye the difficult ock levels a up level we arter. rning Coil A as. Overall, w cas.” nderlying EB ry low nicke ed subdued, t quarter of oving its un n efficiency i e cost savin are also pre mports in Eu s likely to b nd-quarter p g developm ains weak d ere caused b s been clea t position, w underlying E ear delivery v t market en are gradually e are estim Americas b we intend to BIT of EUR 2 el price the and prices 2014, we c derlying EB n Tornio and ngs as well eparing to se urope presen e limited. W erformance ments. The A due to low by the techn rly lagging e e have had EBIT deterior volume esti nvironment t y normalizing mating flat d back on tra o reach a cle 2 million and ere was no under press an see the g IT to EUR 2 d Avesta. Th as the capa eize the opp nt, but befo While we are will be bur Asian import nickel price nical issues even though to fight to h rated to EUR mate has be to continue g and the un delivery volu ack, while ear improvem d our delive typical sea sure. When c gradual imp 28 million. T he Bochum m acity utilizat portunities t ore the final e confident t rdened by t ts into Ame e and elevat in Calvert in h the techn hold our grou R -28 million een revised in Americas nderlying de umes and s continuing ment in prof 4 ry volumes sonal uptak compared to provement in This was m melt shop w tion will bec the antidum decision on that Coil EM he mainten ricas are on ted stock le n the second ical issues und in the to n from the E down to aro s. In Europe emand conti slightly neg the profita fitability this 4 (39) were ke in o the n our mainly ill be come mping n the MEA’s ance n the evels. d half have ough UR 6 ound e, the nues gative ability yearUpdate
Synergy sav Synergy sav EUR 195 m material an reductions savings to production P250 savin The P250 p leading to t mainly driv program ar including h EMEA restr Savings fro EUR 20 mi with the fulNet workin Outokumpu 2015 versu successful Inventory d quarter. Ou looking per Outokumpu market de manageme Cumulativ EUR million Total cumula of which: of which: of which: f = forecast t = target
on profi
vings vings amou million since nd general p have also reach the ta optimization ngs program con total cumula ven by Coil E re savings in eadcount re ructuring sav om the EME llion driven l cumulative g capital red u targets a us the 2012 accounts p ays, Outoku utokumpu ha rspective wh u continues emand. The ent. ve savings f ative savings Synergies P250 EMEA restructability i
nted to EUR the beginn procuremen contributed arget of EUR n. ntinued its s ative savings EMEA, as w n procureme eductions. O vings EA restructur by the Boch e savings of duction EUR 400 m 2 level. Dur payables an umpu’s key m as changed hich takes in its tight co e key actio rom corpora cturingimprove
R 10 million ing of 2013 t. The Krefe d to the ov R 200 millio solid progres s of EUR 22 ell as in raw ent, IT and op utokumpu ering will sta hum melt sh EUR 100 m
million cash ing the first d receivable metric for inv the invento to account t ntrol over n ons are act
ate program
ment pr
in the first q 3. Approxima eld melt sho verall achie on in 2015, ss in the firs 5 million sin w material a perational c estimates cu rt to have a hop closure. million by the release from t quarter, EU es managem ventory effic ry day defin the deliverie et working c tive invento ms 20 1 1
ograms
quarter and ately 55% of op closure a vement. Ou with the ma st quarter w nce the begi and general costs, as wel umulative sa an impact in An addition end of 201 m the net w UR 75 millio ment while ciency, came ition from ba es of the nex capital and ory, accoun 13 2014 99 385 95 185 04 200 - the cumula f the total sa at the end o utokumpu e ajority of the ith additiona inning of 20 procureme l as in gene avings of ove n the second al EUR 60 m 7. working capi on release w inventories e down from ackward-loo xt three mon inventories nts receivab I/15 420 195 225 -ative synergy avings have of 2013 and expects cum e total savin al savings o 013. Good d ent. The ma ral and adm er EUR 250 d half of 20 million is ex ital reductio was achieve remained r m 100 to 97 oking perspe nths. in line with ble and ac 2015f 20 470 200 250 20 5 y savings tot e come from d the headc mulative syn ngs coming f EUR 25 m evelopment in drivers o ministration c million in 20 015 with rou pected for 2 on by the en ed mainly du relatively sta days quarte ective to forw h the anticip ccounts pay 016f 2017 530 55 200 20 250 25 80 10 5 (39) taled m raw count nergy from illion t was f the costs 015. ughly 2016 nd of ue to able. er-on- ward-pated yable 7t 0 0 0 0Ongoing
Calvert The technic of 2014. A grades as commercia The technic lines are ba rolling lines Stainless s distributor difficult ma second half been resol 540,000 to Degerfors The EUR 1 tailored and be taken in tonnes in t to grow to aMarket
Stainless st Global real 2.7% comp However, d quarter leve Market de Million tonn EMEA Americas APAC Total Source: SMR e = estimateg ramp-u
cal ramp-up All the produ well as wid l capability o cal issues in ack in produ s is showing steel import sector has arket condit f of 2014, th ved. The d onnes in 201 100 million d standard q nto use ovehe first qua about 95,00
develop
teel deman demand fo pared to the demand in E el. In APAC, evelopment es R April 2015ups
of the Calv uction steps dths rangin over the com n the cold ro uction since good qualit ts from Asia been weak tions and th he Coil Ame elivery fore 15. investment quarto plate er the comin rter of 2015 00 tonnes.pment
d r stainless s e fourth qua EMEA and A consumptio of total sta ert integrate have been g from 36 ming 2–3 ye olling lines d the beginn y and has be a into Amer due to ele he delivery ricas’ order cast for theto expand e was comple ng two years 5 (IV 2014: steel product arter of 201 Americas de on levels incr ainless stee I/1 1 0 6 9 ed stainless tested and to 72 inch ears. during the s ing of this y een running ricas have c evated stock challenges intake is lag e business capacity to eted in Dege s. Delivery v 19,000 ton cts totaled 9 14. Especia eclined by 6 reased by 1 l real dema 15e IV/14 1.8 1.6 0.9 0.9 6.6 6.5 9.3 9.0 steel mill in capabilities hes. The Ca second half year. Produc g largely acco continued to k levels, as caused by gging behind area Coil A 150,000 t erfors, Swed volumes fro nes). In 201 .3 million to ally in EMEA 6.4% and 2 .2% quarter-and in 2015 4 I/14 6 1.9 9 0.9 5 6.4 0 9.3 n Calvert, US s proven for alvert mill w of 2014 ha tion in both ording to pla o increase, well as low the technic d even thoug Americas ha tonnes and den in 2014 m Degerfors 15, volumes onnes in the A regions, d .2%, respec -on-quarter. 5 2014 7.2 3.7 26.1 37.0 S was comp r both auste will be ramp ave been so the melt sh an in the firs and the de w nickel pric cal issues i gh the techn as been re to enhance 4. The expan s increased s in Degerfo first quarte demand incr ctively, from y-o-y -6.4 % -2.2 % 2.2 % 0.0 % 6 pleted at the enitic and fe ped up into olved and al hop and the st quarter. emand from ce. Due to t n Calvert in nical issues educed to a e the offerin ded capacit to over 22 rs are estim er of 2015, u reased by 8 last year’s q-o-q 8.6 % 3.2 % 1.2 % 2.7 % 6 (39) e end erritic o full ll the cold m the hese n the have about ng in ty will ,000 mated up by 8.6%. first
In the Cons first quarte growth was while dema was seen -4.2%. Stainless ste Imports int average lev terms of im share of im from other Average im slightly dow to higher d 19.5%, stro Stainless st According t steel sheet stable in E 11.4% was transaction above last Average Ch 1.0 1.4 sumer Good er of 2015 b s seen in the and growth w in the Arch eel demand b to the EU r vel of 33.3% mports to the mports from Asian count mports into th wn from 25. domestic pri ongly up from teel transac to CRU, aver t in all regio Europe, aver s the main p n price decli year’s first-q hinese transa 1.6 0.8 ds & Medica by 9.8% and e segment In was flat at 0 itecture/Bu by customer s reached 23. % in the fou e EU include China and T tries such as he NAFTA re 6% in the p ces, long m m 13.4% in 2 ction prices rage transac ons declined rage alloy s rice driver d ined by 5.9 quarter leve action prices 0.3 al and Autom d 4.9%, resp ndustrial & H 0.0% in the ilding & Co segments in .4% of tota rth quarter d China, Tai Taiwan decr s South Kore egion reache revious qua mill lead time
2013.
ction prices d compared urcharges d during the fir 9% quarter-o ls in the EU s declined b motive & He pectively, co Heavy Indus Chemical/P nstruction s Q1 2015, mi l consumpt and 30.6% iwan, South reased in th ea and India ed 24.4% of rter. Import es and a str in the first q to the prev decreased. I rst quarter, on-quarter. A and the US by 2.5% year 4.4 eavy Transpo ompared to stries with a Petrochemic segment wit illion tonnes ion in the f for the full Korea, the he first quart a increased f the total co levels incre rong dollar. quarter of 2 vious quarte In the US, t whereas the Average tra , with an inc r-on-year. Consume Chemica Energy Automot Architect ction & In Industria Others ort segments the fourth q quarter-on-q cal & Energy
th a quarte first quarter year of 201 USA, South ter of 2015 lately. onsumption eased strong The averag 2015 for 2m r. While ave the decreas e base price nsaction pri crease of 12 er Goods & M l/Petrochemi ive & Heavy T ture/Building/ nfrastructure al & Heavy Ind
ts, demand quarter of 2 quarter grow y segment. A er-on-quarter r of 2015 c 14. The larg Africa, India , while the s in the first q gly during 2 ge import lev mm cold rolle erage base se in the all e remained f ice levels w 2.8% and 4.6 Medical ical & Transport g/Constru dustry 7 increased in 2014. Addit wth rate of 2 A growth de r growth rat compared t gest countrie a and Japan share of imp quarter of 2 014, mainly vel in 2014 ed 304 stain prices rema oy surcharg flat. The Chi were signific 6%, respect 7 (39) n the ional 2.4%, ecline te of o an es in . The ports 015, y due was nless ained ge by nese antly ively.
Price devel The nickel retreated th due to wea The rapidly also erodin 15,783/ton The Europe African pro quarter, do benchmark The averag the fourth q 1 Nickel Cash L 2 Ferro‐chrom 3 Metal Bullet Market pr Stainless ste Europe USA China Nickel Ferrochrome Molybdenum Recycled ste Sources: Stainless stee Nickel: Londo Ferrochrome: Molybdenum: Recycled stee lopment of a price1 hit th hereafter cl ak demand a y strengthen ng the price nne in the fo ean benchm duction cos own from U k price was r ge molybden quarter of 20 LME Daily Offic me Contract: Fer in ‐ Molybdenu ices eel e (Cr-content) m eel
el: CRU April 201 n Metal Exchan Metal Bulletin Metal Bulletin el: Metal Bulleti
alloying met
he highest v osing the qu and good av ning US doll es. The aver ourth quarte mark pricefo sts due to w USD 1.15/lb rolled-over a num price3 f 014. ial Settlement rro‐chrome Lum um Drummed m Base price Alloy surcha Transaction Base price Alloy surcha Transaction Transaction ) 15, 2mm cold ro nge (LME) settlem
- Quarterly cont - Molybdenum n - Ferrous Scra tals value of the uarter at low vailability in ar and inve rage price in er of 2014. or ferrochro eakened cu b in the fou t USD 1.08/ for the first
USD per tonne mpy CR charge molybdic oxide EUR/ arge EUR/ n price EUR/ USD/ arge USD/ n price USD/ n price USD/ USD/ USD/ USD/ USD/ olled 304 stainl ment quotation tract price, Ferr oxide - Europe ap Index HMS 1 e quarter of west value o most region estors’ gene n the quarte ome2 followe urrency, and urth quarter /lb. quarter was basis 52% Cr qu Free market $ p I/ /t 1,0 /t 1,3 /t 2,3 D/t 1,4 D/t 1,5 D/t 2,9 D/t 2,2 D/t 14,3 D/lb 1 D/lb 8 D/t 2
less steel sheet rochrome lumpy 1&2 (80:20 mix) f USD 15,45 of USD 12,4 ns, despite o ral reallocat er was USD ed decreasi decreased r of 2014. s USD 8.50/ uarterly major E per lb Mo in wa /15 IV/1 050 1,05 314 1,33 364 2,38 411 1,41 555 1,75 966 3,16 229 2,36 348 15,78 1.08 1.1 8.50 9.3 254 29 t y chrome charg fob Rotterdam 55/tonne in 460/tonne. of the Indon tion from th D 14,348/to ng prices in to the level For the sec /lb, down by European desti arehouse 4 I/14 3 1,070 5 1,026 9 2,096 1 1,367 5 1,468 6 2,835 4 2,283 3 14,632 5 1.18 3 9.98 3 343 ge, basis 52% ch n early Janu Prices were esian nicke he commodi onne, 9.1% n China and l of USD 1.0 cond quarte y 8.9% from inations USD pe 2014 1,082 1,241 2,322 1,396 1,738 3,135 2,425 16,864 1.19 11.45 -333 -hrome 8 uary, and m e under pres l ore export ities space lower than d deflated S 08/lb in the er of 2015, m USD 9.33/ er lb Cr y-o-y q -1.9 % -0 28.1 % -1 12.8 % -1 3.2 % 0 5.9 % -11 4.6 % -6 -2.5 % -5 -1.9 % -9 -8.5 % -6 14.8 % -8 25.9 % -13 8 (39) mainly ssure ban. were USD South e first , the /lb in q-o-q 0.3 % 1.6 % 1.0 % 0.0 % 1.4 % 6.3 % 5.9 % 9.1 % 6.1 % 8.9 % 3.3 %
Busines
Coil EMEA
The key foc through cu cost efficie expanded f company’s Please see Bu Coil EMEA’ market act seen in the end of the q was slow d austenitic g Ferrochrom below the t quarter. Th Coil EMEA’s the fourth efficiency i rose to EUR nickel price Despite low showing th year ago in provisions a in the first q An importa quarter. Th restructurin 200,000 to Coil EMEA Stainless ste Sales EBIT EBIT excl. no Underlying E Operating ca
ss areas
cus of Coil E stomer and ncy by incre ferrochrome European o usiness area ke s first-quart tivity since t e first quarte quarter in a due to relat grades in the me productio targets due t e full-year p s underlying quarter. Th n Tornio an R 19 million e declined. wer delivery e positive im ncluded EUR and impairm quarter of 2 nt milestone he Tornio an ng program onnes annua A key figures eel deliveries on-recurring it EBIT apitalMEA is to m product lea easing capac e production operations w ey figure tables ter stainless he subdued er a year ea nticipation o tively high s e first quarte on in the fir to unplanne roduction es g EBIT impro e better pe d Avesta. Th in the first y volumes a mpact of the R 140 millio ments of the 015. e in the EME nnealing and is planned ally. s tems maintain and adership. A city utilizatio n. The succe will be essent s for additiona s steel deliv d fourth qua rlier. While of the antidu stock levels er was down rst quarter ed maintena stimate is ad oved to EUR erformance w he net effec quarter (IV 2 nd prices, p e savings pr on of non-re e European o EA restructu d pickling lin to be taken 1,000 t EUR EUR EUR EUR EUR expand Out clear target on levels an essful imple tial in return l information o veries grew arter. Howev imports from umping deci in the mar n by about E was 118,00 ance. A 5-we djusted from R 28 million was mainly ct of raw ma 2014: EUR -profitability rograms and ecurring cos operations, w ring will be t ne that was n back to pr tonnes million million million million million tokumpu’s s t is to impro nd leveraging mentation o ning the com
on page 35 by 11.4% to ver, deliverie m China and sion by the ket. Coil EM EUR 35/tonn 00 tonnes ( eek mainten m 500,000 t in the first due to hig aterial-relate -2 million) d improved c d variable co sts related t whereas the the closure taken out e roduction in I/15 411 1,127 48 48 28 2,364 strong Europ ove financia g the compa of the indus mpany to pro o 411,000 t es were 53,0 d Taiwan cle European Co MEA’s avera ne. (IV 2014: 1 ance break tonnes to 47 quarter com her volumes ed inventory ue to the po ompared to ost reductio o personne ere were no of the Boch earlier in th April increa IV/14 369 1,055 13 19 21 2,405 pean stainle al performan any's own ch strial plan to ofitability. tonnes, driv 000 tonnes early decrea ommission, age base pr 116,000 ton is schedule 70,000 tonn mpared to E s and impro y and metal ositive hedg o the first q on. The com el reductions non-recurrin um melt sho he year as p asing annea I/14 464 1,169 -134 6 10 2,492 9
ess steel pos nce and to hrome mine o restructure ven by impr s below the ased towards the order in ice for stan nnes), rema d for the sec nes. UR 21 millio oved produ derivative g ging impact w quarter of 2 parison peri s, environme ng items boo op in the se part of the E aling capacit 2014 1,666 4,520 -86 78 62 2,405 9 (39) sition drive e and e the oved level s the ntake ndard ining cond on in ction gains while 014, iod a ental oked cond EMEA ty by 4 6 0 6 8 2 5
Coil Americ Coil Americ technical s and is drive and the im Coil Americ Please see Bu Coil Americ from the dis rolling line deliveries o developme surcharge. The first-qu financial p product mix recorded n issues duri in total. APAC APAC busin foothold in Outokumpu rolling mill offices in va Please see Bu Coil Amer Deliveries Sales EBIT EBIT excl. no Underlying E Operating ca APAC key Deliveries Sales EBIT EBIT excl. no Underlying E Operating ca cas
cas’ key targ service and en by the ra plementatio cas focuses o usiness area ke cas’ operatin stributor sec technical iss of 126,000 t nt of the EU Coil America uarter unde erformance x, high oper on-recurring ng the seco ness area’s the Asia-Pa u offering is in Shangha arious Asian usiness area ke
icas key fig
on-recurring it EBIT apital figures on-recurring it EBIT apital get is to buil delivery reli amp-up of th on of the fu on ensuring ey figure tables ng environm ctor, continu sues in the tonnes in th UR/USD exch
as’ base pric rlying EBIT w was negat rative cost i g costs of EU ond half of 2 key focus i acific region s differentiat i, China and n countries. ey figure tables gures tems tems d a strong p ability. Impr he Calvert fa ll commerci g the continu s for additiona
ment has bee ued high imp second half he first quart hange rate. ces remaine was EUR -2 tively affect n Calvert, as UR 19 millio 2014. This b s to contrib n and to foc
ted from its d service cen s for additiona 1,000 t EUR EUR EUR EUR EUR 1,000 t EUR EUR EUR EUR EUR position in th rovement in acility. The t al ramp-up ued growth a l information o en difficult d ports into th f of 2014, o ter of 2015 In local cur ed flat versu 28 million co ted mainly s well as US on in the firs brings the NR bute to the cus on selec competitor nters in Chi l information o tonnes million million million million million tonnes million million million million million he Americas n Coil Ameri technical ra continues o and perform on page 35 during the e he US and lo order intake . Sales amo rency the sa s the fourth ompared to by a lower SD/EUR cur st quarter re RI amount o growth of O cted custom rs. The APAC na and Aust on page 35 I/15 126 308 -49 -30 -28 1,341 I/15 52 112 -2 -2 -2 202 s market by cas’ financi mp-up at Ca over the com ance of the arly part of t w nickel pric has been w ounted to EU ales decreas quarter. EUR 6 mill contributio rency transl elated to the of the line br Outokumpu er and prod C business a tralia, as we IV/14 126 297 -22 -0 6 1,195 IV/14 54 114 1 1 0 184 focusing on al performa alvert was f ming 2–3 ye Mexican op
the year wit ces. Combin weak and ha
UR 308 milli sed driven b ion the qua on margin f lation impac e cold rolling reakages to by establish duct segme area operat ell as wareh I/14 135 254 -36 -36 -40 993 I/14 48 88 -5 -5 -5 177 10 n product qu ance is a pr inalized in 2 ears. In add perations. th weak dem ned with the
s resulted in on driven by by the lower arter before. from subopt ct. Coil Ame g line’s tech o EUR -40 m hing a profit nts in which es the SKS ouses and s 2014 541 1,158 -104 -82 -93 1,195 2014 220 444 -6 -6 -6 184 0 (39) uality, iority 2014 ition, mand cold n flat y the alloy . The timal ricas nical illion table h the cold sales 4 1 8 4 2 3 5 4 0 4 6 6 6 4
The stainle declining G to material steel capac APAC’s deli The lower d underlying pressure on Quarto Plat Quarto Pla Degerfors i stainless st plate servic plate produ investment A clear prio leverage its improveme Please see Bu The operat industrial c price. Howe remained u Deliveries i Plate busin million in th Long Produ Long Produ Sheffield in produces w industries, constructio production addition to Quarto Pla Deliveries Sales EBIT EBIT excl. no Underlying E Operating ca ess steel m GDP growth i ize. The dow city brought iveries were deliveries w EBIT was E n prices. te te business n Sweden a teel grades f ce center ne ucts are us t cycle. ority for the
s position i ent initiatives usiness area ke ting environ customers h ever, activity under pressu in the first q ness area r he fourth qu ucts ucts busines n the UK an wire rod, rod
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on-recurring it EBIT apital arket rema n China as t wnward tren on stream in e 52,000 ton were due to EUR -2 milli s area is a and in New for use in pr etwork that p sed in heav Quarto Plat n both tailo s remain a f ey figure tables ment for th hesitant to p y in the che ure in both E quarter grew eached bre arter. ss area foc d Degerfors d coil, bar, transportat roducts’ me s it is one he long prod ures tems ined weak the typical p nd in prices n the region nnes in the f the soft ma on which w global lead Castle in the rojects and provides furt vy industry a e business ored and st focus to deliv s for additiona he quarto p place new o emical tanke Europe and t w by 8.3% m eakeven und uses on spe s in Sweden rebar, billet tion, consu elt shop in of the supp ducts downs 1,000 t EUR EUR EUR EUR EUR in the APA pick up in m continued a . first quarter arket and th was negative der in tailor e US. Both by the proce ther services and constru area is to ra tandard plat ver a step c l information o late busines orders due t er segment the US. mainly drive derlying EBI ecialty stain n, as well as t and other umer durab Sheffield h pliers of fee stream units tonnes million million million million million C region du arket activit and this is f r of 2015, so he Chinese N ely impacted red quarto mills produc ess industry s such as cu uction, and amp up the te. Post-inve hange impro on page 35 ss continue to a depress picked up s en by increa T driven by nless long p s Richburg a r long produ bles, metal has an imp edstock to O and externa I/15 26 122 0 0 -0 224
uring the fir ty following t urther excar omewhat do New Year in d by declini plate mater ce quarto pl y. Outokump utting to cus consumptio recent inves estment, co ovement in p d to be we sed investm slightly. Price ased volume y higher vol products, wit and Wildwoo ucts that ar processing portant stra Outokumpu’s al customers IV/14 24 120 -9 -9 -6 218 rst quarter the Chinese rbated by th own from the n February. ing nickel p rial, with ke late in stand pu also oper stomer requi on is relate estment in D ost reduction profitability. eak in the fi ment climate es for quarto es in Degerf umes comp th productio od in the US re used in a g, chemica ategic role s Quarto Pl s. I/14 24 102 -2 -2 -4 245 11 in line with New Year f he new stain e fourth qua The first-qu price and ov ey operation dard and sp ates a Europ rements. Qu ed to the g Degerfors, an n and effici irst quarter e and low n o plate prod fors. The Qu pared to EU on operation S. Long Prod a wide rang al, energy, in Outokum ate busines 2014 98 450 -26 -26 -30 218 1 (39) h the failed nless arter. arter verall ns in pecial pean uarto global nd to iency with nickel ducts uarto UR -6 ns in ducts ge of and mpu’s ss, in 4 8 0 6 6 0 8
Please see Bu Overall dem subdued pr European m Long Produ previous qu underlying rate at the a reversal o
Financia
Deliveries Outokumpu (IV 2014: 5 earlier. Del flat and APA In the first reflecting c activity (IV the compa 2013 and 80% and in Long Prod Deliveries Sales EBIT EBIT excl. no Underlying E Operating ca usiness area ke mand for lo roject activit market was ucts’ total d uarter. The EBIT decline Sheffield m of EUR 6 milal perfor
u’s external 568,000 ton iveries were AC’s deliver t quarter, O capacity red 2014: 65% ny’s product the progres n cold rolling ducts key figon-recurring it EBIT apital ey figure tables ong products ty. Prices we also impacte deliveries w increase w ed to EUR 3 melt shop an llion accrual
rmance
stainless st nnes), howe e up in Coil Eies were dow Outokumpu’s uction in Bo and 70%). C tion set-up, ss in the Ca g from 70% t gures tems s for additiona s was weak ere relatively ed by a wea were 52,000 as mainly a million from d price pres in the US p eel deliverie ver being do EMEA, Long wn versus th s average u ochum melt Capacity uti reflecting fo alvert ramp-u to 75%. 1,000 t EUR EUR EUR EUR EUR l information o k in the firs y stable in t akening euro 0 tonnes in a result of i m EUR 12 m ssures. The pipe business es in the firs own by a sim Products an he fourth qu utilization ra t shop in pr lization rate or example up. In 2013 tonnes million million million million million on page 35 st quarter, m he US but re o and sluggis the first qu increasing i illion in the f comparison s. st quarter of milar amoun nd Quarto Pl arter in 201 ate in melti reparation fo es have imp the closure 3–2014 me I/15 52 149 4 4 3 174 mostly drive emained un sh demand f uarter, up f nternal slab fourth quart period was 2015 grew nt compared ate while Co 14. ng was 85% or the closu roved as a r of the Kref lting utilizat IV/14 43 129 11 11 12 167 en by low n der pressur from the oil from 43,000 b deliveries. ter driven by s also positiv by 9.2% to d to the sam oil Americas % and in c ure and pick result of the feld melt sh tion increas I/14 65 149 0 0 2 126 12 ickel prices e in Europe & gas secto 0 tonnes in Long Prod y a low utiliza vely impacte 620,000 to me period a s’ deliveries cold rolling k-up in busi e restructurin op in Decem ed from 65 2014 248 651 33 33 32 167 2 (39) and . The or. n the ucts’ ation ed by nnes year were 75% ness ng of mber 5% to 4 8 1 3 3 2 7
Sales and p Outokumpu million) ma For Outoku According t EUR/tonne ago. In Ame 4 Global avera Deliveries 1,000 tonne Cold rolled White hot st Quarto plate Long produc Semi-finishe Stainless Ferrochro Tubular prod Total deliver Stainless ste 1) Black hot ba Sales EUR million Coil EMEA Coil America APAC Quarto Plate Long Produc Other opera Intra-group s profitability u sales in t inly driven b umpu, the ba to CRU, the (IV 2014: 1 ericas, the m age base price f s es trip e cts ed products steel 1) ome ducts ries eel deliveries
and, slabs, bille
as e cts tions sales he first qua by Coil EMEA ase price in e European 1,053 EUR/t market base or 2 mm cold ro ets and other st
arter of 201 A’s higher de deliveries d average ba tonne) and w price was s olled 304 stainl tainless steel pr 15 grew by eliveries whi decreased b ase price4 was below th stable compa less steel sheet roducts 5.6% to EU ile stainless by about EU for the first he 1,070 EU ared to the f t I/15 458 93 24 16 49 27 22 2 642 620 I/15 1,127 308 112 122 149 181 -232 1,768 UR 1,768 m steel transa R 10-20/ton t quarter 2 UR/tonne du fourth quarte IV/14 425 78 22 14 75 27 49 2 617 568 IV/14 1,055 297 114 120 129 184 -224 1,674 million (IV 20 action prices nne during t 2015 came uring the sam ter. I/14 487 103 22 16 71 46 25 2 701 676 I/14 1,169 254 88 102 149 135 -280 1,617 13 014: EUR 1 s were down
the first qua down to 1 me period a 2014 1,880 373 89 64 271 138 133 9 2,686 2,554 2014 4,520 1,158 444 450 651 689 -1,068 6,844 3 (39) 1,674 n. arter. ,050 year 4 0 3 9 4 1 8 3 9 6 4 4 0 8 4 0 1 9 8 4
In line with Non-recurri technical is Europe). The net eff 2015 was nickel price Profitabili EUR million Underlying E Adjustments Non-recu Net of raw derivative EBIT 1) EBIT exclud Non-recurr EUR million EBITDA Redundancy Environmen Net costs re Non-recurrin of which Additionally Impairments Non-recurrin Underlying EUR million Coil EMEA Coil America APAC Quarto Plate Long Produc Other opera h higher de ing items of ssues in Ca fect of raw EUR 7 millio e declined. ty EBIT 1) s to EBIT rring items in w material-rel e gains/losses ing non-recurrin ring items i y provisions ntal provisions elated to techn ng items in EB in gross marg in EBIT s related to E ng items in EB g EBIT as e cts
tions and intr
livery volum EUR -19 mi alvert (IV 20 material-re on (IV 2014 EBIT lated inventor s, unaudited ng items, raw m n EBITDA an s related to sit nical issues in BITDA gin MEA restructu BIT ra-group items mes, Outoku llion, impact 014: EUR -2 lated invent : EUR 0 mill ry and metal aterial-related nd EBIT te closures n Calvert uring s mpu’s profi ting both EB 27 million in tory and me lion). This w inventory gains/ tability imp BITDA and E n total from etal derivati as mainly d I/15 2 -19 7 -10 s/losses and me I/15 --19 -19 -15 --19 I/15 28 -28 -2 -0 3 1 2 roved comp BIT, were bo Calvert an ive gains/lo ue to the po IV/14 -9 -27 0 -36 etal derivative g IV/14 -6 --21 -27 -39 --27 IV/14 21 6 0 -6 12 -42 -9 pared to the ooked relate d redundan osses in the ositive hedg I/14 -45 -140 -3 -188 gains/losses, un I/14 -88 -25 --113 -113 -27 -140 I/14 10 -40 -5 -4 2 -8 -45 14 e fourth qua ed to net cos ncy provision e first quarte ging impact w 2014 -88 -186 31 -243 naudited. 2014 -113 -25 -21 -159 -167 -27 -186 2014 62 -93 -6 -30 32 -52 -88 4 (39) arter. sts of ns in er of while 4 8 6 1 3 4 3 5 1 9 7 7 6 4 2 3 6 0 2 2 8
Underlying -45 million Coil EMEA a Corporate m main chang EUR 17 mi losses are include e.g quarters. Financial e Net financi 2014 EUR price gains/ Net result f
The net res share were Cash flow Outokumpu Operating c the EMEA r capital was developme Summary EUR million Net result fo Non-cash ad Change in w Dividends re Interests rec Interests pa Income taxe Net cash f Purchases o Other invest Net cash f C ash flow Net cash fro Net change EBIT was E in the first q and Quarto managemen ge in Other illion of the allocated to g. difference xpenses ial income a -79 million) /losses were
for the perio
sult for the e EUR -0.10 ( u’s operatin cash flow wa restructuring s therefore nts resulted of cash flow or the period djustments working capita eceived ceived id es paid from operat of assets
ting cash flow from investi before fina om financing a in cash and c EUR 2 millio quarter of 2 Plate, where nt costs repo operations’ last quarte o the busine es in timin and expense driven by fla e around ze od first quarte (IV 2014: EU ng cash flow as mostly d g, offset by EUR 14 m d in EUR -82 ws al ting activitie ing activitie ancing activ activities cash equivale on, compare 014. Compa eas other bu orted under result comp r 2014. Fro ess areas, a g of intern es decrease at interest e ro with mino er of 2015 w UR -0.13). w was EUR riven by EU EUR 75 mil illion (IV 20 million chan es es ities nts ed to EUR -ared to the f usiness area Other opera pared to the om the first affecting ma al and exte ed slightly to expense of E or quarter-on was EUR -45 -62 million R -61 millio lion release 014: EUR 1 nge in deriva Jan–M -9 million in fourth quart as showed d ations remai e previous q quarter 201 ainly Coil EM ernal metal o EUR -38 m EUR 32 milli n-quarter ch 5 million (IV in the first n payment o e of other wo 126 million) atives. March O 2015 -45 -4 14 -0 -27 -1 -62 -32 1 -31 -93 198 105 n the fourth er, underlyin eclining fina ned stable d uarter is the 15 onwards MEA. Additio derivative million (IV 2 on during th hange. V 2014: EUR t quarter (IV of provisions orking capita . Also meta Oct–Dec Ja 2014 -56 71 126 -0 -19 -0 122 -54 15 -39 83 -286 -203 h quarter of ng performa ancial result during the f e propane h s, propane h onally, the in gains/losse 2014: EUR -he quarter. L R -56 millio V 2014: EU s, with a ma al items. Ch al price and an–March 2014 -248 227 33 3 1 -29 -1 -14 -32 -9 -42 -56 341 286 15 2014 and ance improve s. irst quarter. edging losse hedging gain ntra-group it es between 40 million a Likewise, ma n). Earnings UR 122 mil ajority relate hange in wo d exchange Jan–Dec 2014 -439 471 -50 3 2 -111 -2 -126 -144 -19 -162 -289 -116 -404 5 (39) EUR ed in The es of ns or tems n the and I arket s per lion). ed to rking rate
Capital exp Capital exp 54 million). Balance sh Total asset Non-curren by the conv 58 million restructurin Net debt at was 91.5% from curren Financing Cash and c EUR 191 m 1.4 billion). In February convertible The bonds bonds, Outo that was ag The issuan financing co Debt infor EUR million Bonds Convertible Non-current Pension loa Non-current Other non-cu Current loan Commercia Other curren penditure penditure wa . Capital exp heet ts at the end nt debt incre vertible bond to EUR 166 ng provisions t the end of % compared ncy moveme cash equiva million), and . Overall liqu y, Outokump into ordina carry a coup okumpu can greed in Feb ce of the bo osts. rmation bonds t loans from fi ns t finance lease urrent loans ns from financ l paper nt loans as kept at a penditure wa d of March 2 eased to EU d issue in Fe 6 million (De s. f March 201 to 92.6% as ents and the
lents were a the overall l uidity came d pu launched ary shares in pon of 3.25% ncelled the r bruary 2014 onds is part nancial institu e liabilities cial institution low level du as mostly rel 2015 increa R 1,732 mil ebruary, par ec 31, 2014 15 totaled E s of Decemb e convertible at EUR 298 iquidity rese down slightly d an offering n Outokump % per annum remaining u . t of Outokum utions ns
uring the firs lated to mai ased to EUR llion compa rtly offset by 4: EUR 224 EUR 2,034 m ber 31, 201 e bond issue million at th erves were a y due to neg g of senior pu. The princ
m payable s nutilized EU mpu’s plan t M st quarter an intenance a R 6,889 milli red to EUR y repayment million) ma million (Dec 14 due to th e, partly offse he end of th approx. EUR gative cash f unsecured cipal amoun emi-annuall R 250 millio to actively d M arch 31 2015 547 204 769 206 240 0 95 271 0 2,332 nd was at EU nd smaller p ion (Dec 31 1,597 at ye ts of debt. P ainly as a re 31, 2014: E e positive e et by the net he first quart 1.3 billion ( flow. convertible nt of the off y. Following on of its EUR diversify its f March 3 201 39 1,49 20 26 8 16 2,61 UR 26 millio projects in C 1, 2014: EUR ear-end 201 Provisions de esult of paym EUR 1,974 equity develo
t loss for the
rter of 2015 (Dec 31, 20 bonds due fering was E g the issue o R 500 millio funding bas 31 D 14 99 -93 09 61 0 82 68 0 14 16 on (IV 2014: Coil EMEA. R 6,411 mil 14, mainly d ecreased by ments relate million). Gea opment resu e period. 5 (Dec 31, 2 014: approx. February 2 EUR 250 mi of the conver n liquidity fa se and to re Dec 31 2014 547 -856 192 244 0 83 243 0 2,165 6 (39) EUR lion). riven EUR ed to aring ulting 014: EUR 020, llion. rtible acility duce
People Outokumpu March 201 continued h Plate. Overall, Ou efficiency i well as stre The lost-tim against the trapped in and correct
Market
Market outFor the sec tonnes. Tot mainly driv demand is Personnel Coil EMEA Coil America APAC Quarto Plate Long Produc Other opera Market de Million tonn EMEA Americas APAC Total Source: SMR f = forecast u’s headcou 15 (Dec 31, headcount r utokumpu p mprovemen eamlining all me injury ra e target of le a coil stack tive measure
and bus
tlook cond quarte tal global de ven by incre estimated to at the end as e cts tions evelopment es R April 2015 unt declined 2014: 12,1 reduction in plans to red nt programs. l overlapping ate (lost-time ss than 2.5. king machine es put in plasiness ou
er of 2015, emand for 2 eased cons o grow as w of the repofor real dem
by 301 dur 125). The de Coil EMEA a duce up to . The planne g activities i e accidents . There was e. The opera ace.
utlook
global dem 2015 is estim sumption in ell (1.3% an orting period mand total 2ring the first ecrease in th and redunda 3,500 jobs ed reduction n sales, prod s per million one serious ator is recov
mand for sta mated at 38 APAC (4.8 nd 2.5% com d stainless st 2013 7.0 3.5 24.5 35.0 t quarter of 2 he number o ancies relate s globally in ns are relate duction, sup n working h s incident in vering and t inless steel 8.5 million t 8%). In Ame mpared to 20 March 31 2015 7,331 2,133 589 793 659 319 11,824 teel product 2014 2 7.2 3.7 26.1 37.0 2015 and to of employee ed to cost ef n 2013–20 ed to capac pply chain an ours) during the first qua the incident is expected tonnes, up b ericas and E 014, respect Mar 1 ts between 2015f 7.4 3.8 27.3 38.5 otaled 11,8 es was main fficiency mea 017, in con city reductio nd support f g the first q arter where t has been f d to increas by 4.0% com EMEA, total tively). rch 31 2014 7,915 2,093 627 757 661 383 12,436 2013 and 2 2016f 7.6 3.8 29.0 40.4 17 24 at the en nly related to asures in Qu nection wit ns in Europe functions. quarter was an operator fully investig se to 9.5 m mpared to 2 l stainless Dec 31 2014 7,582 2,128 602 838 651 324 12,125 2017 2017f 7.8 4.0 30.6 42.4 7 (39) nd of o the uarto h its e, as s 2.7 r was gated illion 014, steel 1 4 2 8 2 8 1 4 5
The long-te urbanizatio and water a stainless st the Archite Industrial & Automotive 4.0%, respe Business a The market stocks grad Asian impo growth is s pressure. Outokumpu somewhat to be slight the net im expected to Outokumpu restructurin erm outlook on, moderniz are expected teel consum ecture/Build & Heavy In e & Heavy Tr ectively. nd financial t outlook fo dually norm orts continue showing so u estimates in Europe a tly negative mpact of ra o be margina u’s operatin ng programs k for stainl zation, and i d to support mption betwe ing/Constru dustries (+5 ransport seg l outlook for r stainless s malizing and es and low me weakne s flat deliv nd decrease driven by w w material-al if any. ng result m s. This outloo ess steel d increased m t the future een 2015 an
ction & Infr 5.1%) segm gments are r the second steel varies underlying nickel price ess and the very volume e in America eaker profit -related inve may be imp ok reflects th demand rem mobility comb growth of st nd 2017 wi rastructure ( ments. The C expected to d quarter of by region. In demand re e puts cons e markets i es quarter-o as. Group’s u tability in the entory and pacted by n he current s mains posit bined with g tainless stee ll mainly be (+5.5%), Co Chemical/P o grow at av 2015 n Europe, or emaining he straints on d n the APAC on-quarter: underlying E e business a metal deri non-recurring scope of ope tive. Key gl growing glob el demand. A attributable nsumer Goo etrochemica erage annua rder intake ealthy. In th distributor s C region for deliveries EBIT for the s
area Coil Am ivative gain g items ass erations. lobal mega bal demand According to e to increase ods & Medi al & Energy al growth ra is improving he Americas sector buyin r stainless are expect second qua mericas. Wit ns/losses on ssociated w 18 trends such for energy, f o SMR, grow ed demand cal (+5.1%) y segments ates of 4.7% g with distrib s, pressure ng. Chinese steel are u ted to incr rter is estim h current pr n profitabili ith the ong
8 (39) h as food, wth in from ) and and % and butor from GDP under ease mated rices, ty is going
Key targ
A k com the and ton For clos com for roll Qua the volu Tota EUR Out EUR Cap Out Out by t Fina 1) AccoRisks a
Outokumpu that defines to supporti risks from stakeholde risk mana www.outok There were year in the The nickel the end of decline. Th profitability Outokumpu and reducegets upd
key for Coil mmercial cacommercia d weak orde nes, ie. flat r Coil EMEA sure of the mpletion of t each mill a ing. arto Plate b progress in umes in Deg al targeted R 530 millio tokumpu tar R 400 millio pital expend tokumpu’s w tokumpu tar the end of 2 ancing cost ounting capex
nd unce
u operates i s the object ng Outokum the persp ers. Key risks agement an umpu.com. e no major r cold rolling price contin March. Outo e US dollar y. Continued u issued a c e financing cdated
Americas’ pability over al ramp up er intake. Co versus 2014 , a key mile Bochum m the ferritics nd enable c usiness are n the Degerf gerfors are e savings from on in 2016 a rgets releas on cash relea diture1) is ex well-invested rgets to furt 2017. for 2015 isrtainties
in accordan tives, approa mpu’s strate pective of s are assess nd risk pro realized ope mills in Calv nued to decr okumpu’s n kept streng d decline in convertible b costs. profitability r the coming curve is cur oil Americas 4. estone in re melt shop m investment capacity util a targets st fors investm estimated to m Outokum and EUR 550 se of cash f ase vs. 2012 xpected to b d asset base her reduce d estimated as
ce with the aches and a egy, the aim shareholde sed and upd ofile can b erational risk vert, the US,rease during ickel hedgin gthening aga price of pr bond of EUR y will be th g 2–3 years rrently delay s’ delivery vo estructuring mid-2015, th in Krefeld. A ization rates tep change ment ramp-u o grow to abo pu’s ongoin 0 million in 2 rom net wo 2). be below EU e allows mod debt levels w at EUR 160 e risk manag areas of resp m of risk ma ers, custom dated on a re be found ks in the fir have been g the first qu ng helped to ainst the eu ropane resu R 250 millio e progress . While the t yed 6–12 m olume in 20 g of the Eur he closure All this will e s of above 9 in profitabili up and strea out 95,000 g savings p 2017 (all co rking capita UR 160 mil derate capex with the am million, out gement poli ponsibility in nagement i mers, suppl egular basis in the Ann rst quarter. T resolved. uarter, down o mitigate pa ro and Swed ulted to der n in Februa of the Calv technical ca months due t 015 is expec opean prod of the Benr enable clear 90% in melt ity over the amlining of t tonnes. rograms are mpared to 2 al in 2015 w lion in 201 x levels in th bition of net of which inte cy approved risk manag s identifying iers, person . A detailed nual Repor The technic n to levels b
art of the fin dish krona, rivative loss ry to activel vert mill ra apability of t to difficult m cted to be a duction foot rath site in product and ting and ab coming two the cost str e EUR 470 2012). with the P40 15 (2014: E he coming ye t debt below erest cost E d by the Bo gement activ g, evaluating nnel, credi description rt for 2014 cal issues th below 13,00 nancial imp having a po ses during t y diversify t 19 mp up into he mill is pr market situa around 540 print will be 2016, and d customer ove 85% in o years drive ucture. In 2 million in 2 00 program UR 127 mil ears. w EUR 1.5 b UR 120 mill oard of Direc vities. In add g and mitiga tors and o of Outokum 4, available hat occurred 00 USD/tonn acts of the ositive impac he first qua he funding 9 (39) o full roven ation ,000 e the d the roles cold en by 015, 015, m (i.e. lion). billion lion. ctors dition ating other mpu’s e at d last ne at price ct on arter. base
Short-term Outokumpu implementi capital and in or inade investment changes in electrical p Swedish kr including fi or other loa securities i economic e on Outokum Significant There are n annual repo
Environ
Emissions t occurred w not a party aware of an The EU Em operations benchmark operations (EUA’s). Outokumpu are availab risks and u u is exposed ing the indu implementa equate prof t projects; m n metal pric power, fuels rona and B nancial inst an condition nvested und environment mpu’s busin legal proce no additions ort. Please sment
to air and d were tempora in any signi ny realized e issions Trad under the E ks and histo during the u published ble on www.o ncertainties d to the follo ustrial plan, ation of the fitability of market risks ces impacti s, nickel an British Pound itutions; risk ns leading to der defined t, which can ess as well. edings s or changes see Outokum discharges t ary, were ideficant juridic environment ding Scheme EU ETS will c orical activi 2015. Duri its sustaina outokumpu.c s owing risks including t Coil EMEA r ramping up in stainless ng amounts nd molybde d; counterp ks related to o an event o benefit pens impact the s in significa mpu’s 2014 to water rem entified and cal or admin tal risks that e (ETS) is co ontinue to r ty. The com ing the first ability repor com. and uncerta the reductio restructuring p the Calve steel and in s of cash t num; curre arty risk re o refinancing of default; an sion plans. P stainless st nt legal proc annual repo mained with had only a nistrative pro t could have ontinuing by receive free ming allocat t quarter, O rt together w ainties in th on of costs g actions; ris ert mill; risk n ferrochrom tied in work ncy develop lated to cu g and liquidit nd risk relat Possible adv teel industry ceedings co ort for furthe
in permitted minimal imp oceeding co e a material the third tra
emissions a tion is fores utokumpu d with the 201
e short-term and the rel sks related t ks and unc me as well as king capital pments affe stomers an ty; risk of br ted to prices verse change y, may have mpared to t er details. d limits and pact on the ncerning en adverse effe ading period allocations a seen to be did not trad 14 annual r m: risks and lease of cas to possible f certainties r s competito ; changes ecting the e nd other bus reaching fina s of equity a ges in the glo significant a
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these mino environmen nvironmenta ect on its fin d 2013–202 according to e sufficient de any emis report in Ma 20 uncertaintie sh from wo failures or de elated to m or actions; ris in the price euro, US do siness part ancial coven and fixed inc obal politica adverse imp ions in the 2 or breaches nt. Outokum al issues, no nancial posit 20. Outokum efficiency-b for the Gro ssion allowa arch 2015. 0 (39) es in rking elays major sk of es of ollar, ners, nants come l and pacts 2014 that pu is r is it tion. mpu’s ased oup’s nces Both
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UR million UR UR UR UR UR million million shares UR million trading) h 10–19, 2014. M Ja 415,4 416,3 415,4 8 March 31 2015 35.5 29.9 16.1 11.7 5.9 0.8 26.2 -n–March 2015 311.1 427,378 374,448 485,590 888,858 7.41 5.96 7.76 4.27 3,083 359.8 2,135.8 21 March 20 2 3 2 1 2 Jan–Ma 20 31 148,295,9 416,374,4 415,426,7 947,7 4 4 5 3 2,0 8 35 1 (39) 31 014 9.2 4.0 0.2 2.1 3.9 0.7 9.9 5.0 arch 014 1.1 918 448 719 729 .82 .01 .00 .37 004 2.4 1.2
Outokumpu share price at its lowes to EUR 3,0 during the f Information http://www
Corpora
Changes in Jan Hofman 31, 2015. Annual Gen The Annua financial st 2014. The authorizatio issuance of The numbe unchanged Ollila and O elected as Ollila was e All resolut www.outokEvents a
On April 23 2015 deliv Michael Wa head of Out Espoo, Apri Board of Di u share pric e averaged a st, the price 83 million b first three m n regarding w.outokumpuate gove
n leadership nn was appo neral Meetin l General M tatements a Meeting de on to the B f shares as w er of Board d. Markus Ak Olli Vaartimo new membe elected as th ions of the umpu.com/after the
3, 2015, Ou very estimate allis, the hea tokumpu Me il 28, 2015 irectors ce closed th at EUR 5.96 stood at EU by the end o months of 20 g shares u.com/en/inrnance
team ointed head ng Meeting was and discharg ecided that Board of Dir well as othe members co kermann, Ro o of the curr er for the te he Chairman e Annual G /en/Investore end of
utokumpu a e down to a ad of Coil A exico, was a e quarter at in the first q UR 4.27 dur of the first q 015 was 359 and share nvestors/sha of the APAC held on Ma ged the ma no dividend rectors to re r special rig ontinues to oberto Guald ent member erm of office n and Olli Va General Me rs/General-mthe repo
announced c about 540,0 mericas, ha appointed as t EUR 7.41 quarter. At it ring the qua uarter (Dec 9.8 million s eholders is are-info/Pag C business a arch 26, 20 nagement o d be paid fo epurchase t ghts entitling be eight an doni, Stig G rs were re-e e ending at t artimo as th eeting 2015 meetings.orting pe
changes in 000 tonnes f ad decided t s the interim , up by 55.3 ts highest, th arter. Outoku 31, 2014: shares. updated ges/default. area followin 015, in Espo of the comp r 2014 and the compan g to shares. nd the annu ustavson, H elected to th the end of th he Vice Chai 5 can be feriod
the delivery from 620,0 to leave the m head of the 3% compare he share pric umpu’s mar EUR 1,987 daily on aspx. ng the depar oo, Finland. pany from liaapproved t ny’s own sh al remunera eikki Maline e Board and he next Ann rman of the found on t y outlook in 00 tonnes. company. J e business a ed to the en ce traded at rket capitaliz million). The Outokumpu rture of Aust The Meetin ability for th the proposa hares and to
ation for the en, Elisabeth d Saila Miett nual General Board of Di the compan n Coil Ameri It was also Jose Ramon area Coil Am 22 nd of 2014. t EUR 7.76 w zation incre e share turn u’s website tin Lu on Ma ng approved he financial als regarding o decide on e Board rem h Nilsson, Jo tinen-Lähde l Meeting. Jo rectors. ny’s websit cas revising announced Salas, curr mericas. 2 (39) . The while ased nover e at arch d the year g the n the mains orma e was orma te at g the that rently
Conden
Condensed EUR million Continuing Sales Cost of sales Gross marg Other operati Costs and ex Other operati EBIT Share of resu Financial inco Interest inco Interest exp Market price Other financ Other financ Result befo Income taxes Net result f Net result f Net result f Attributable Equity holder Non-controlli Earnings per to the equity Earnings per Earnings per Earnings per 1) 2014 figures c 2014.nsed con
d income stat operations: gin ing income penses ing expenses ults in associate ome and expen omeenses e gains and los cial income cial expenses ore tax es s
for the perio for the perio for the perio e to:
rs of the Compa ng interests share for resul holders of the share, continu share, disconti share calculated based
solidate
tement ed companies nses sses d from conti d from disco d any t attributable Company (bas ing operations inued operatio d on the rights-issed financ
nuing operat ntinued opesic and diluted)
n sue-adjusted weig
cial state
tions ration ), EUR 1) : ghted average nuements
Jan–Marc 201 1,76 -1,72 4 2 -8 -1 -3 -4 -4 -4 -4 -0.1 umber of shares a ch Oct–D 15 20 68 1,6 24 -1,6 44 27 81 --0 -10 -2 1 32 -0 0 -8 -46 -2 45 -45 -43 --2 - -0. - 0. 10 -0. and adjusted to r Dec Jan–M 14 2 74 1 25 -1 49 25 -93 -17 -36 -0 1 -32 1 1 -10 -75 -19 -57 -0 -56 --55 --0 .13 -.00 .13-reflect the revers
23 March Jan 2014 2 ,617 6 ,677 -6 -60 8 -92 -43 -188 4 1 -49 -9 0 -22 -262 -5 -267 20 -248 -246 -2 1.79 -0.13 1.66 -se split on June 2 3 (39) –Dec 2014 6,844 6,714 130 47 -354 -65 -243 7 3 -141 -15 2 -70 -459 8 -450 11 -439 -434 -5 -1.27 0.03 -1.24 20,
Statement EUR million Net result f Other comp Items that Exchange diff Available-for-Fair value Reclassific comprehe Income tax Cash flow he Fair value Reclassific comprehe Income tax Net investme Income tax Share of othe associated co Items that Remeasurem Changes d Income tax Share of othe associated co Other comp Total comp Attributable Equity holder Non-controlli of comprehe
for the perio prehensive in may be recla ferences on tra -sale financial a changes durin cation adjustm nsive income t x relating to av dges changes durin cation adjustm nsive income t x relating to ca ent hedges x relating to ne er comprehens ompanies and will not be re ments on define during the acco
x relating to rem er comprehens ompanies and prehensive in rehensive in e to: rs of the Compa ng interests ensive incom d ncome assified subs anslating foreig assets g the period ents from othe to profit or loss vailable-for-sale
g the period ents from othe to profit or loss sh flow hedges et investment h sive income in joint ventures eclassified to ed benefit oblig ounting period measurements sive income in joint ventures ncome for th come for the
any me sequently to gn operations er s e financial asse er s s hedges o profit or lo gation plans s e period, net e period profit or loss ets ss: t of tax Jan–Marc 201 -4 s: 11 -1 9 4 4 ch Oct–D 15 20 45 -10 -0 -0 1 0 -0 -0 18 --1 -1 90 -46 -48 --2 Dec Jan–M 14 2 -56 -30 2 0 -0 -4 -0 -0 --44 1 --16 -93 --91 --1 24 March Jan 2014 2 -248 9 0 --0 1 0 1 -1 -12 0 -1 -247 -245 -2 4 (39) –Dec 2014 -439 71 3 3 -1 -11 -2 3 --0 -14 -12 1 41 -398 -394 -4
Condensed EUR million ASSETS Non-curren Intangible ass Property, plan Investments Other financia Deferred tax Defined bene Trade and oth Total non-c Current ass Inventories Other financia Trade and oth Cash and cas Total curren TOTAL ASSE EQUITY AND Equity Equity attribu Non-controllin Total equity Non-curren Non-current d Other financia Deferred tax Defined bene Provisions Trade and oth Total non-c Current liab Current debt Other financia Provisions Trade and oth Total curren TOTAL EQUI d statement o t assets sets nt and equipme in associated c al assets assets efit plan assets
her receivables urrent asset sets al assets her receivables sh equivalents nt assets ETS D LIABILITIES table to the eq ng interests y t liabilities debt al liabilities liabilities efit and other lo
her payables urrent liabili bilities al liabilities her payables nt liabilities TY AND LIAB of financial p ent companies and s s s s quity holders of ong-term emplo ties ILITIES position d joint ventures f the Company oyee benefit ob s bligations M arch 31 2015 576 3,237 79 28 53 39 15 4,026 1,628 84 853 298 2,863 6,889 2,225 -2 2,223 1,732 16 36 392 140 47 2,364 600 117 26 1,559 2,303 6,889 March 3 201 56 3,15 6 2 2 1 3,85 1,32 3 86 88 3,10 6,95 2,28 2,28 2,21 1 2 32 21 4 2,84 40 4 2 1,36 1,83 6,95 31 Dec 14 20 67 5 56 3,1 67 20 23 2 19 54 3,9 28 1,5 36 60 7 80 1 04 2,5 59 6,4 81 2,1 2 83 2,1 10 1,5 13 26 29 3 17 1 48 43 2,2 04 5 40 23 65 1,3 32 2,0 59 6,4 25 31 014 567 138 78 29 44 36 12 904 527 40 749 191 507 411 132 0 132 597 18 31 372 198 47 262 569 87 26 335 016 411 5 (39)
Condense EUR million Net result fo Adjustments Depreciatio Other non-c Change in w Dividends re Interests rec Interests pa Income taxe Net cash f Purchases o Proceeds fro Proceeds fro Other invest Net cash f C ash flow Rights issue Borrowings o Repayment Change in c Other financ Net cash f Net chang C ash and at the beg Foreign exch Discontinue Net change C ash and at the end 2014 cash f d statemen or the period s on, amortizati cash adjustm working capita eceived ceived id es paid from operat of assets om the dispos om the sale o ting cash flow from investi before fina e of non-curren of non-curren urrent debt cing cash flow from financ ge in cash a cash equiva ginning of th
hange rate eff d operations in cash and c cash equiva d of the peri
flows are pres
nt of cash flo
ion and impai ents al ting activitie sal of subsidia f assets ing activitie ancing activ t debt nt debt w ing activitie nd cash equ alents he period fect net change in cash equivale alents od
sented for con ows irments es aries, net of c es ities es uivalents n cash effect nts ntinuing opera Jan– ash ations. –M arch 2015 -45 75 -79 14 -0 -27 -1 -62 -32 -1 0 -31 -93 -309 -150 38 0 198 105 191 2 -105 298 Oct–Dec 2014 -56 81 -11 126 -0 -19 -0 122 -54 -14 1 -39 83 -3 -273 -20 4 -286 -203 400 -6 --203 191 Jan–March 2014 -248 110 117 33 3 1 -29 -1 -14 -32 -10 1 -0 -42 -56 640 750 -719 -326 -3 341 286 607 -1 -12 286 880 26 h Jan– 4 20 8 -4 0 3 7 1 3 3 1 9 -1 1 4 -1 2 -1 0 1 0 2 -1 6 -2 0 6 0 1,0 9 -1,5 6 -2 3 1 -1 6 -4 7 6 1 2 6 -4 0 1 6 (39) Dec 014 439 351 120 -50 3 2 111 -2 126 144 -50 30 1 162 289 640 022 505 277 3 116 404 607 0 -12 404 191
Statement of ch
EUR million Equity on Jan 1 Net result for the p Other comprehens Total comprehens Transactions with Contributions a Rights issue Share-based Changes in own Acquisition o Disposal of s Equity on March Equity on Jan 1 Net result for the p Other comprehens Total comprehens Transactions with Contributions a Convertible b Share-based Equity on March hanges in equity , 2014 period sive income
ive income for the p owners of the Comp nd distributions payments nership interests of a non-controlling in subsidiary h 31, 2014 , 2015 period sive income
ive income for the p owners of the Comp nd distributions bond payments h 31, 2015 Share capital 311 -period -pany -nterest -311 311 -period -pany -311 Premium fund Inves unrestric eq rese 714 1,4 -- 6 -714 2,1 714 2,1 -714 2,1 sted cted quity erve Other reserves Fa re 62 7 - -- -- -640 -- -- -- -1 102 7 103 5 - -- -- -- -- -103 5 Attributable to ir value eserves Cumulative translation differences 9 -119 -2 9 2 9 -12 -110 5 -49 -1 113 1 113 -5 65
o the owners of the p e n s Remeasurements of defined benefit plans 9 -65 - -9 -12 9 -12 - -- -- -- 4 0 -73 9 -89 - -3 -22 3 -22 - -- -5 -111 parent s t s Treasury shares Retain earnin -24 -41 - - -24 2 -2 - -24 - -- 1 - -4 --23 -65 -23 -84 - - -4 2 -2 - -4 - - 4 - 2 -22 -84 27 ed ngs Non-controlling interests 10 4 46 -2 1 0 45 -2 - --0 --0 -0 -3 -0 58 2 46 0 43 -2 -1 -0 44 -2 45 --1 -46 -2 7 (39) Total equity 1,891 -248 1 -247 640 0 -1 -0 2,283 2,132 -45 90 46 45 0 2,223
NOTES TO T Basis of pre This interim The same a the financia 2015 and t All present figures can The sales, industry de production and fall sea direct impa Outokumpu The followin The followin The Group classified s The liability recognized liability com their initial 45 million a deferred ta Subsequen interest me conversion THE FINANC eparation m report is u accounting al statemen the principle ted figures deviate from profits and emand, the and shipme asons and g act on the u u. ng amendm IFRIC 21 L levy is reco legislation penalties a significant Amendme The amend plans that The amend Annual Im improveme to be grou four (2011 standard b ng accountin classifies co separately as y component initially at th mponent. Tra carrying am and liability x was recog nt to initial re ethod. The e or expiry. CIAL STATEM unaudited a policies and nts for 2014 es related to in this inter m the prese working ca number of ent volumes generally low use of work ents to IFRS Levies: The in ognized whe , occurs. The and outflows t impact on O nts to IAS 19 dments clar involve con dments did provements ents process ped togethe 1–2013 cyc by standard ng principles onvertible bo s financial li t is recogniz he differenc ansaction co mounts. Equit component’ gnized on the ecognition, t quity compo MENTS nd it is prep d methods o 4 except for the convert rim report h ented sum fig apital of Ou f working da s with respec wer in the win king capital S standards nterpretatio en the activit e interpretat s that are in Outokumpu’ 9 Employee ify the accou tributions fr not have an s to IFRSs (2 s provides a er and issued
le) and seve but were no s were appli onds as com abilities and zed initially a ce between t osts are alloc
ty compone ’s EUR 203 e componen the liability c onent of the pared in acc of computat the new an tible bonds i have been r gure. Key fig utokumpu a
ays, weathe ct to stainle nter and sum
and, theref and interpre n clarifies th ty that trigge tion is applic scope of ot ’s consolida Benefits – unting treat rom employe n impact on O 2011–2013 a mechanism d in one pac en (2010–20 ot significant ed related t mpound instr d equity in a at fair value the fair value
cated to the nt’s initial ca million in th nts due to th component i bond is not cordance wit tion have be d revised IF issue in Feb rounded an gures have b re subject t er condition ss steel pro mmer seaso fore, also on etations wer he accountin ers payment cable to all l ther standar ted financia Defined Ben ment under ees or third p Outokumpu cycle and 2 m for minor a ckage annua 012 cycle) s t. o the conve ruments. Th ccordance w of a similar e of the bon e liability and arrying amo e consolidat he Group’s ta s measured t re-measure th IAS 34 (I een followed FRS standard ruary 2015. d conseque been calcula to seasonal s and vaca ducts are ge ons. These s n net financ re adopted f ng treatment t, as identifie evies other rds. The inte l statements nefit Plans: E IAS 19 in re parties towa ’s consolida 010–2012 and non-urg ally. The ame standards. T
rtible bonds e componen with the subs liability. The d as a whole d equity com
unt less the ted stateme ax position. at amortize ed to initial r nterim Fina d in this inte rds adopted . ently, the su ated using e fluctuation ation period enerally hig seasonal fluc cial debt an from January t of levies. A ed by the re than incom erpretation d ts. Employee Co espect of de ards the cost ated financia cycle) :The a gent amendm endments c heir impacts s: nt parts of th stance of th e equity com e and the fa mponents in e transaction ent of financ ed cost using recognition e 28 ncial Report erim report a from Janua um of indiv xact figures s as a resu ds. For exam her in the sp ctuations ha nd cash flow y 1, 2015: A liability for levant e taxes, fine did not have ontributions fined benefi t of benefits al statement annual ments to IFR overed in to s varied he bonds are he arrangem mponent is air value of t proportion t n costs was ial position. g the effecti except on 8 (39) ting). as in ary 1, idual . ult of mple, pring ave a ws of a es, a s: it s. ts. RSs otal e ent. the to EUR No ve
