CEO’s review​​​​​​​

October 26, 2017

CEO Roeland Baan:

"Outokumpu's third-quarter results reflected the seasonal pattern with an adjusted EBITDA of 56 million euros. In addition to the typical third-quarter dip, profitability was burdened by low ferrochrome production volumes as well as the raw material related timing and hedging impacts. Third-party supplier production issues in the Americas had a notable negative impact on the business area's profitability. We are confident that strict focus on commercial excellence and ongoing actions will bring the business area's performance back on track. High deliveries and rigorous cost control during this year show that, operationally, business area Americas is continuously making progress.

Business area Europe's deliveries were stable and underlying performance improved year-on-year. This development was supported by continued progress in reducing our cost base. I am also happy to confirm that our ferrochrome production is at full speed after the successful maintenance and ramp up of the damaged ferrochrome furnace. Normal production levels were reached at the end of August as planned.

Our actions to decrease net debt continue to pay off. Third-quarter cash flow was on a healthy level at 126 million euros. Net debt decreased to 1,130 million euros demonstrating that our net debt target of less than 1.1 billion euros by the end of 2017 is firmly in reach.

During the final quarter of the year, we expect improving profitability supported by positive market fundamentals and healthy underlying stainless steel demand in our main markets, Europe and the US. We are solidly on our way in achieving our 2020 vision to be the best value creator in stainless steel through customer orientation and efficiency."