Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — Investor Day (May 2013)
32 slides from Outokumpu Oyj's investor day presentation, May 23, 2013
Slide 1: High Performance Stainless and Alloys BA
High Performance Stainless and Alloys BA Outokumpu Experience Jarmo Tonteri 2013 Jürgen Olbrich HPSA May 22-23, 2013 Outokumpu Old Billingsgate, London, UK
Slide 2: Outline
Outline 1. HPSA introduction 2. High Performance Stainless strategy 3. VDM strategy 4. Summary HPSA BA, Jarmo Tonteri 5/23/2013 2
Slide 3: HPSA accounts for 33% of group sales and 18% of group volumes
HPSA accounts for 33% of group sales and 18% of group volumes Q1 2013 External sales by BA 1) Q1 2013 External deliveries by BA 1,2) Group sales EUR 2.2 billion Group deliveries 703,000 tonnes HPSA HPSA EMEA 48% Americas 10% EMEA 55% Americas 15% APAC 10% HPSA 33% APAC 12% HPSA 18% 1) Split by BA ar
Slide 4: High Performance Stainless and Alloys operates in the attractive high-end of the market
High Performance Stainless and Alloys operates in the attractive high-end of the market • Highly tailored material solutions to the most demanding environments Zirconium High Performance • High-end stainless steel, Nickel, Titanium Titanium and Zirconium alloys stainless Nickel and Alloys Price Stai
Slide 5: Chemical, petrochemical and energy as the single most important customer segment
Chemical, petrochemical and energy as the single most important customer segment HPSA Sales by customer segment HPSA Sales by end‐customer segment Consumer Heavy Other goods & Automotive industries 7 % Medical & heavy Distributors 3% transport 4% 33% 18 % Architecture, Metal Building & processing Co
Slide 6: Application areas across key customer segments
Application areas across key customer segments Desalination – Evaporators Storage tanks Pressure vessels The high corrosion resistance and strength of LDX 2404® Chemical industry Solar panel industry mean Flexible linesit can be used as a complement or substitute in applications where austenitic mol
Slide 7: HPSA financial highlights
HPSA financial highlights • Q1 2013 deliveries grew by 18% to EUR million Q1/13 Q4/12 FY2012 159.000 tonnes compared to Q4 comparable comparable 2012 Deliveries 1) 159 134 597 • EBIT rose to EUR 14 million driven Sales 2) 798 689 3,226 by higher deliveries, better mix, EBITDA 35 -9 114 increased pri
Slide 8: Outline
Outline 1. HPSA introduction 2. High Performance Stainless strategy 3. VDM strategy 4. Summary HPSA BA, Jarmo Tonteri 5/23/2013 8
Slide 9: High Performance Stainless (HPS)
High Performance Stainless (HPS) Value proposition • Unparalleled technical expertise to recommend the best possible steel grades and material solutions to the most demanding environments • Full range of high performance stainless steel grades and product forms • High quality & high reliability prod
Slide 10: HPS is market leader in special stainless steel grades with more than 30% market share
HPS is market leader in special stainless steel grades with more than 30% market share High Alloyed Duplex Heat Resistant Austenitic Duplex - High strength and HAA – high alloyed austenitic 253 MA® – Micro-alloyed corrosion resistance enabling stainless steels for safe and heat resistant grades for
Slide 11: Unparalleled technical expertise
Unparalleled technical expertise • In house state of the art R&D team dedicated to the development of high performance stainless grades • Alloy development since the 1920’s using state of the art in-house computer simulations and laboratory resources • Active in development projects and research pro
Slide 12: HPS Production setup
HPS Production setup Special Coil Thin Strip Special Plate Long Products Avesta & Nyby, Kloster, Degerfors, New Castle, Degerfors, Sheffield, UK Richburg, US Sweden Sweden Sweden US Sweden Melting 500 500 Hot Rolling 40 & * 80 30* 700 160 70 Cold Rolling 160 160 70 105 50 60 45 Coil Precision strip
Slide 13: HPS implemented a major business model renewal in 2011-2012
HPS implemented a major business model renewal in 2011-2012 • Starting point in 2010-2011 • Heavy losses in the specialty stainless units in Sweden • High fixed costs compared to sales volumes and margins • Inconsistent pricing discipline • New strategy formulated and implemented in 2011-2012 • Opti
Slide 14: HPS consists of four Business Lines
HPS consists of four Business Lines High Performance Stainless & Alloys High Performance Stainless High Performance Allloys Long VDM Special Coil Thin Strip Special Plate Products HPSA BA, Jarmo Tonteri 5/23/2013 14
Slide 15: Special Coil
Special Coil Special Coil Avesta & Nyby • Product focus • Hot band, Cold rolled coil and sheet, 2 meter wide • Focus on special grades (high alloyed austenitic, Duplex, Heat resistant grades) • Key applications / customer segments • Tanks, pressure vessels, welded and flexible tubes, for • Energy In
Slide 16: Thin strip
Thin strip Thin Strip Kloster • Product focus • Stainless Coil with focus on precision tolerances – Thicknesses down to 0.1 mm • Special stainless steel grades • Key applications / customer segments • Plate Heat Exchanger Building & Construction • Gaskets Automotive • Flexible Tubes Automotive • Hea
Slide 17: Special Plate
Special Plate Special Plate Degerfors (Sweden), New Castle (US) • Product focus: • Thick, wide, and individually rolled quarto plates that are used in most demanding applications • Tailor made products and special grades • Key applications / customer segments • Energy Industry • Chemical Transportat
Slide 18: Long Products
Long Products Long Products Sheffield (UK), Degerfors (Sweden), Richburg (USA) • Product focus: • Slab, bloom, billet, rod coil and bar, including stainless reinforcing bar • Wide variety of long products, standard and special grades • Key applications / customer segments • Bridge structures, ABC •
Slide 19: Outline
Outline 1. HPSA introduction 2. High Performance Stainless strategy 3. VDM strategy 4. Summary VDM introduction and strategy, Dr. Jürgen Olbrich 5/23/2013 19
Slide 20: VDM introduction & strategy
VDM introduction & strategy Outokumpu Experience Dr. Juergen Olbrich 2013 President & CEO Outokumpu VDM May 22-23, 2013 Old Billingsgate, London, UK
Slide 21: Outokumpu VDM - Company Profile
Outokumpu VDM - Company Profile Outokumpu VDM Production Sites Global Sales Network Outokumpu VDM HQ ~ 64 of sales generated in Europe (~34% in Germany) Production sites close to innovative global players in key industries 6 Germany 1 Unna Nickel Melting / Forging 51 34 ~ 23 of sales generated
Slide 22: Outokumpu VDM - Covers top end of the high-demanding steel material pyramid
Outokumpu VDM - Covers top end of the high- demanding steel material pyramid Complementary offering between Stainless Overview Global business and VDM business Forgings high Other Zirconium Alloys 1) Other Cobalt Alloys Titanium Titanium Resistance VDM VDM Nickel Alloys Nickel Alloys Special 300 Gra
Slide 23: Outokumpu VDM - One of only two players worldwide that offer full HPA product range
Outokumpu VDM - One of only two players worldwide that offer full HPA product range Especially attractive for CPI project business where wide range of products required HPA players HPA product range Special Stainless Titanium and VDM Nickel Alloys Cobalt Alloys Zirconium Steel 2) Titanium Alloys Spe
Slide 24: Outokumpu VDM - Product Portfolio
Outokumpu VDM - Product Portfolio Nickel Alloys largest segment with more than 130 alloys offered Product forms offered Alloys offered Nickel Alloys Nickel Alloys Plate & Sheet Strip High‐Temperature Special Alloys Alloys Wet Rod & Bar Wire Corrosion Resistance Expansion Controlled Magnetic Alloys H
Slide 25: Global outlook for all major industries promising
Global outlook for all major industries promising Aerospace / Chemical Process Electronic & Electrical Oil & Gas Automotive Turbines Industry Engineering Value of new airplanes ($bn) Chemical demand (€bn) Value ($bn) Exploration & Production Produced units (m) spending ($bn) 5% 3% 6% 7% 10% 105 106
Slide 26: Highly attractive growth pockets for HPA in end customer industries
Highly attractive growth pockets for HPA in end customer industries Aerospace Oil & gas Chem. process industry Automotive Electrical & Electronics Lightweight construction Sour well exploration Desalination plants Emission control systems Concentrated Solar Power (light high‐strength (high corrosion
Slide 27: Outokumpu VDM - Strong R&D capabilities and proven innovation leadership
Outokumpu VDM - Strong R&D capabilities and proven innovation leadership form base for future growth VDM with strong product pipeline … … mirrored by high number of patents Patent applications in last 5 years* Project: 700°C power plant Project Status: Completed Energy companies try to increase 25
Slide 28: Outokumpu VDM - Expand and upgrade production process
Outokumpu VDM - Expand and upgrade production process Summary Advantages Altena Bisher Forged & Rolled Improving of the bars CAPEX ~ €35M market access Start Q4 2011 Optimization of the Altena Unna 12/13 Production process Rolled bars Forged bars Relocation forged bars to Unna Positive Capacity
Slide 29: Outokumpu VDM - Strategic milestones and future strategic fields
Outokumpu VDM - Strategic milestones and future strategic fields Cornerstones Key activities Capitalize on • Leverage strong industry knowledge and relationship growth in key • Focus on niches with exceptionally high demand in HPA industries • Capitalize on upgraded service center in China Expand po
Slide 30: Outline
Outline 1. HPSA introduction 2. High Performance Stainless strategy 3. VDM strategy 4. Summary HPSA BA, Jarmo Tonteri 5/23/2013 30
Slide 31: HPSA - summary
HPSA - summary • Highly tailored material solutions to the most demanding environments • High performance stainless steel • High performance alloys (VDM) • Strong market position and excellent reputation globally • Technical expertise • Product quality • Delivery reliability • Highly committed manag
Slide 32: Q&A Outokumpu Experience
Q&A Outokumpu Experience 2013 May 22-23, 2013 Old Billingsgate, London, UK