Strategy and ways of working

Our vision is to be customer's first choice in sustainable stainless steel

Outokumpu's new strategy is built on clear timebound initiatives and targets to competitively position itself for the future by strengthening its balance sheet in the shorter term and by de-risking the company for strong returns in the long run.

Strategy materials

Outokumpu comments its strategy progress in interim reports and Capital Markets updates. In November 2021, we increased our financial target. 

Financial target increase, November 2021

Capital Markets update, May 2021

Strategy presentation, November 2020

Latest interim reports

The new strategy includes three phases with each phase requiring strong and diligent execution and focus, creating the foundation for the next phase. Deleveraging the balance sheet will continue throughout all three phases. Ultimately, our vision is to be customer’s first choice in sustainable stainless steel.

 

First-phase of the strategy

In the first phase of the strategy, during 2021–2022, Outokumpu will prioritize de-risking the company through margin improvement, cash flow management and deleveraging the balance sheet. When Outokumpu launched a new strategy in November 2020, the company set financial targets by the end of 2022 to improve EBITDA run-rate by EUR 200 million and to reduce the net debt to EBITDA ratio to below 3.0.

The company has made strong progress in its strategy execution, and in November 2021, Outokumpu announced that with a commitment to continue de-risking the company by the end of 2022, we will increase our initial EBITDA run-rate improvement target from EUR 200 million to EUR 250 million. Deleveraging also continues through the first phase of the strategy beyond the initial leverage target. Read more on the stock exchange release

To reach these targets, the strategy is centered on strict cost and capital discipline, strong customer engagement and a lean, delayered organization.

In our core businesses stainless steel and ferrochrome, the strategic focus will be on increased market penetration, enhancing our product mix, growing in selected segments and leveraging our leadership in specialty grades. Long Products business is undergoing an accelerated turnaround to develop the business internally.

Following phases of strategy

The following two phases of the strategy will focus on targeted investments in productivity, sustainability and value-adding growth, and the targets will be communicated at a later stage.

“There is great value in the company, and we will unlock it with a clear strategy and determined implementation. Outokumpu has a solid foundation and is the industry leader in sustainability as well as in specialty grades. Our customers see us as their preferred partner. We have an experienced team and world-class, stable operations with a strong culture for continuous improvement. Outokumpu’s leadership is fully committed to the strategy.”

CEO Heikki Malinen

 

Updated November 4, 2021