We are making solid progress towards our 2020 vision Investor presentation Outokumpu in brief Net sales EUR 6.9bn, adjusted EBITDA EUR 485m, stainless steel deliveries 2.4mt, listed on Nasdaq OMX Helsinki Sales by business area Sales by destination Sales by customer segments Other operations 4% Other Consumer goods & Ferrochrome 3% Asia and countries 6% Finland 3% medical 9% Long Products 8% Oceania 6% Germany 21% Distributors 46% Automotive 11% Architecture, building & construction 3% North Chemical, America 26% Sweden 3% petrochemical and energy 2% The UK 4% Heavy industries Americas 24% 11% Other Europe Metal processing & tubes Europe 61% 30% Other 4% 13% #1 in Europe Operations in 10,449 89% World leader in sustainable over 30 of material #2 in NAFTA employees stainless steel production #3 in the World countries recycled 2 | November 4, 2019 Outokumpu in 2018 Becoming the best value creator Vision Best value creator Must- Safety in stainless steel by Win High performing 2020 through customer battles organization orientation and efficiency Operational excellence* Commercial excellence Americas Digital transformation** Strengths Strong market position World-class assets Broad product portfolio Solid balance sheet Purpose Working towards a world that lasts forever * Includes previous must-win battles of World-class supply chain and manufacturing excellence as of 2019 ** New must-win battle as of 2019 3 | November 4, 2019 Stainless steel is everywhere and for almost every need Corrosion resistant Heat resistant High strength Hygienic Aesthetic Stainless steel is an Cost efficient amazing material that makes modern society Sustainable possible by providing unmatched durability, longevity and recyclability. It is at the heart of moving society from quick fixes towards a world that lasts forever. 4 | November 4, 2019 The world needs long lasting and sustainable solutions Economic and Mobility and Climate change Sustainable population urbanization and limited stainless growth resources Healthcare, clean water, Buildings, elevators, Energy investments, Long-lasting, recyclable appliances.. trains, bridges,… resource efficiency,… solutions 5 | November 4, 2019 We are operating in a growing industry… • Global cost pressure persists • Intensifying competition from low-cost producers • Volatility increasing due to heightened political risks • Rising middle-class • Infrastructure investments • Industrial production growth • Climate change driving need +20% for sustainable solutions Stainless steel demand growth by 2024 6 | November 4, 2019 Source: SMR April 2019 ...and our competitive advantages will secure our long-term market position Sustainable Customer Digitalization solutions satisfaction 7 | November 4, 2019 Our investment case is driven by our 2020 vision FINANCIAL TARGETS Best value creator in Connected to our stainless steel by 2020 vision through customer orientation and efficiency Adjusted EBITDA €750 million Adjusted EBITDA, € million Net debt and gearing Return on capital employed Gearing 69% 11.3 51% % 45% <35% 40% 5.3 6.9 % 2.6 % 631 % ROCE 485 309 12% 165 1.61 1.24 1.09 1.21 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 Net debt, EUR billion Gearing 8 | November 4, 2019 Becoming the best value creator in stainless steel Shareholders Employees Customers Total shareholder return since Organizational health index2 Absolutely and very satisfied beginning of 20161 customers3 1. quartile Outokumpu Outokumpu 2. 37% quartile 63% 3. Acerinox quartile 9% Competitors Aperam 4. 58% -8% quartile 2016 2017 2018 1) 1.1.2016 – 30.4.2019 2) McKinsey organizational health index 9 | November 4, 2019 3) Percentage, Outokumpu customer satisfaction survey 2018 By excluding market noise, we see the real underlying progress in our performance €750 Ferrochrome price million Market $0.27 tailwind of /lb higher Market headwind €150 US base price of million $86 /tonne higher €100 €165 Graphite electrode Europe base price million million prices Market 10 €53 /tonne lower in 2018* headwind of times higher Truck freight prices €250 Ferrosilicon prices in the US million 2015 2016 2017 2018 2019 2020 30% 15% higher higher Adjusted EBITDA with vision 2020 market assumptions Linear EBITDA development to 2020 target *Q4/17-Q3/18 average compared to FY2015 average Sources: Metal Bulletin, CRU, Outokumpu 10 | November 4, 2019 Adjusted EBITDA, € million Our path to +110 +160 deliver an +100 -100 adjusted EBITDA +320 of €750 million in 2020 2015 Efficiency Commercial Market 2018 Efficiency Commercial 2020 gains growth gains growth target Approximate figures, based on management estimates 11 | November 4, 2019 How to close the gap to €750 million by 2020 Gains by Europe Americas Other Europe 20201 €150 million in total €50 €60 Commercial growth • Higher deliveries • Customer & product mix €110 • Value-added products • Market share in Mexico million • Service solutions • New products €110 million from commercial €160 €100 €40 €20 growth million from efficiency gains Efficiency gains • Raw material optimization • Mexinox restructuring €160 • General procurement • Logistics costs reduction million • 3% annual productivity • Raw material optimization increase • Delivery reliability Other • Digital manufacturing Americas € 20 €100 million Total gains million in total €270 €150 €100 €20 million 12 | November 4, 2019 1Approximate figures, based on management estimates. Benchmark year 2018 Stainless steel demand is growing Heavy industries Other +10% +31% Other Heavy industries Architecture, Building & Construction Architecture, Building Global +36% Expected global & Construction stainless steel stainless steel real demand in 2018 real demand in 2024 43.2 +21% 52.1 million tonnes Automotive million tonnes Consumer goods & Medical Chemical, Automotive Petrochemical +3% Consumer goods & Energy & Medical +24% Chemical, Petrochemical & Energy 13 | November 4, 2019 Source: SMR, October 2019 +13% We focus on growth segments Consumer goods, automotive, architecture, building and construction Distributors End-customers Consumer goods & medical • Long term contracts • Spot contracts 9% Chemical, petrochemical and energy • Large quantities • Standard products and 2% Automotive grades 11% • Special grades • Austenitic cold rolled and Distributors End-customers Architecture, building & • Ferritics and duplex 46% 54% construction tubular products 3% Heavy industries • Technical advice • Speculative behavior 11% Metal processing & • Develop relationships and • Value added services Other tubes receive volume discounts 4% 13% 14 | November 4, 2019 Sales 2018 We have a solid presence in key regions Avesta* Fagersta Tornio* Integrated melt shop, hot and cold rolling Degerfors Kemi Other mills Sheffield Nyby Krefeld* Helsinki Mine Richburg Dillenburg Service centers Calvert Dahlerbrück San Luis Potosí Headquarters in Helsinki, Finland * R&D centers 15 | November 4, 2019 Fully integrated production asset base Europe Americas Long Products Total Avesta + Krefeld + Tornio Degerfors Calvert Mexinox Sheffield Richburg Degerfors Fagersta 1,000 tonnes Nyby Dillenburg Finland Sweden USA Mexico UK USA Sweden Sweden Sweden Germany Melting 1,450 450 900 450 3,250 Hot rolling 1,450 900 870 3,220 Finishing - Cold rolling 750 130 500 350 250 - HWB 150 120 150 2,720 - Quarto plate 150 - Long 25 40 40 65 products 16 | November 4, 2019 Broadest product portfolio globally Outokumpu stainless steel deliveries by product form in 2018 Stainless steel is not a single Chrome is the most important raw product and there are thousands of material used in stainless steel different grades and product forms. Cold rolled 70% production. Outokumpu has its own chrome mine and ferrochrome works and They can be divided to flat and long Hot rolled white coil 17% products or semi-finished products, this makes us uniquely self-sufficient. rolled products and products Quarto plate 3% Ferrochrome contains 50-54% of chrome. finished by additional opetations. Long products 3% Most of our ferrochrome is used in our Outokumpu has the broadest own melt shops and approximately 25% Semi finished stailess steel products 6% product portfolio globally and use of is sold to other producers. Outokumpu is our steels reduces the carbon the only producer of Ferrochrome in footprint of our customers’ products. Europe. Flat products Slab Hot rolled Hot rolled white Quarto plate Cold rolled white Precision strip black coil coil coil Long Ferrochrome products 17 | November 4, 2019 Cast semis Rolled and Bar Rebar Wire rod Wire forged billet Business areas Outokumpu’s assets work as one integrated system Sales by areas, € 6,872 million Avesta Fagersta Tornio Degerfors Kemi Sheffield Nyby Krefeld Richburg Dillenburg Calvert Dahlerbrück San Luis Potosí Europe Americas Long Products Ferrochrome 19 | November 4, 2019 Global footprint with strong market shares in both Europe and NAFTA LONG Business EUROPE AMERICAS FERROCHROME area PRODUCTS 7 % 30 % 25 % 3 % Market #8 in EU share #1 #2 11 % #5 #2 in US Production Finland, Sweden & US & Mexico UK, Sweden & US Finland facilities Germany Largest Stainless steel customer producers segments Main competitors 20 | November 4, 2019 State-of-the-art production facilities – Europe Outokumpu’s assets work as one integrated system with large integrated sites in Tornio, Finland and Avesta, Sweden feeding rest of the mills Europe. Outputs include a wide range of austenitic and ferritic standard stailess steel grades and tailored and high performance products. R&D Tornio R&D Avesta Avesta Center