Outokumpu Tornio Site Martti Sassi SVP – Tornio Steel Operations September 11, 2013

1. Safety Before Volume

Safety takes priority over all other activities, including production.

2. Safety Starts with Me

We are all responsible for our own safety and caring for the safety of our colleagues.

3. No Shortcuts

We will follow procedures and evaluate risks before we act.

4. No Repeats

We will investigate all incidents and take actions to prevent re-occurrence, anywhere.

SAFETY FIRST – For Every One, Every Time, Everywhere

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0

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10

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25

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1/1000 000

Own personnel

Approaching our target – zero accidents

The most integrated stainless steel plant in the world

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BA EMEA at a glance

• Business area EMEA produces high-volume

and tailored stainless steel grades

• Extensive sales network with 13 service

centers, 11 sales offices, 5 sales agents

across the EMEA region

• Highly cost competitive Tornio stainless steel

mill with integrated ferrochrome production

and own chromite mine in Kemi

• Highly end customer orientated austenitic

and ferritic production in Germany, Europe’s

largest market

5/22/2013 5

Benrath

Dillenburg

Tornio

Kemi

Terneuzen Bochum Krefeld

Dahlerbrück

As of May 2013

• Ferrochrome production onsite with molten Ferrochrome charged directly

• No need to crush or reheat, saving energy and minimizing transportation costs

• Ability to use carbon monoxide from own processing to replace propane as energy source saves costs and CO2

emissions

• Short processing time and lower logistic costs

• Cost savings from full downstream integration into finished products

Most integrated stainless steel mill

6

Cold Rolling Mill

Finishing Plant Other Steel Mills

Ferrochrome

Slabs

Black Hot Coils

White Hot Products

End-users and Distributors

FeCr Production Stainless Production

Cold Rolled Products

Tube Mills

Raw Materials

Ferrochrome Works

Kemi Mine

Hot Rolling Mill

Steel Melting Shop

5/22/2013

• Tornio is the most integrated stainless

steel plant in the world

• Highly efficient through large economies of

scale

• Own chrome ore – safe supply and stable

ferrochrome quality

• State-of-the-art technology (RAP line

producing new 2E semi CR products)

Tornio works: Highly competitive cost position

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Focus on:

• Austenitic and ferritic hot and cold rolled stainless steel

• High quality volume products using best available technology

• Custom-made mass production in selected product areas

1,600

2,000

2,200

1,800

2,600

2,400

1,400

Plant B Plant D Plant C Plant A

2,243

Outokumpu

Tornio

Peer average = 2,320 EUR/t 3)

Lowest CR304 unit production costs among largest European plants 1,2)

1) Source: SMR as of January 2012, 2) Based on Ni: 20.000$/t; January 2012 average exchange rate 0.7792702 $/€, 3) Excluding Outokumpu Tornio

5/22/2013

• Unique low cost position as Europe’s only

ferrochrome producer with access to the

only known chromite reserves in the EU

• Mineral resources to last for roughly

40 years

• Q4 2012: finalization of EUR 410 million

investment program to double ferrochrome

production capacity to 530,000 tonnes

• Q1 2013: progress slightly ahead of

schedule and ferrochrome production of

97,000 tonnes was reached

Ferrochrome – competitive advantage

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Company expects to reach a ferrochrome production

level of approximately 400,000 in 2013 and the full

capacity of 530,000 tonnes in 2015

Outokumpu ferrochrome production

(1,000 tonnes)

Ore reserves: 33 million tonnes and additional

mineral resources of 105 million tonnes

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400

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2011 2012 2013e 2014e 2015e

5/22/2013

Our products create endless possibilities for our customers

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Our products

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• Black coils

• Thickness range 2.5–12 mm, width range 1000–1600 mm.

• White hot rolled coils, strips, sheets and plates

• Finishes 1/1D, 2E. Thickness range 2.5–8 mm (1/1D), 1.8–4

mm (2E), width max. 1600 mm.

• Cold rolled coils, strips, sheets and plates

• Finishes 2B, 2D, 3N, 4N, DB. Thickness range 0.4–6.35 mm,

width range 35–1600 mm.

• Ferrochrome product offering

• 10–40 mm, 10–80 mm (Cr content 52–54%)

• 0–10 mm fines (Cr content 50– 52%)

• Slag products

• OKTO-eriste (FeCr slag granules), OKTO-murske (FeCr slag

aggregates), OKTOa-murske (Stainless steel slag aggregates),

OKTO-kevytkivi (Stainless steel slag light mineral aggregates)

and OKTO-filleri (Stainless steel slag filler products).

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From chrome ore to coil and plate…

…to cutlery and bridges –endless possibilities

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Committed to sustainable business

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One of the world's most significant recyclers

Recycled & recovered metals 0,2 Mt

MATERIALS OUT

White hot rolled products 0,2 Mt

Cold rolled products 0,6 Mt

Mineral products 0,2 Mt

Waste landfilled and utilized 0,1 Mt

MATERIALS IN

Recycled carbon steel 0,2 Mt

Recycled stainless steel 0,7 Mt

FeCr-, Ni-, Mo-,Ti-,Si-, 0,2 Mt

Mn-alloys

Stainless production, year 2011

Reducing emissions while increasing production

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Kemi Mine and Tornio Site – production chain

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From chrome ore to stainless steel

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Kemi Mine

Underground mine Hoisting Crushing Spiral concentration

Heavy medium

separation

Grinding

Ferrochrome Works

Sintering FeCr

Smelter

Crushing

and screening

Storage

Steel Melting Shop

Liquid ferrochrome Ferrochrome converter

AOD converter

Electric arc furnace Recycled steel

Continuous casting machine

Hot Rolling Mill

Walking beam furnace Roughing mill Steckel mill and Tandem mill Bell furnaces

Cold Rolling Plant

Annealing and pickling line Sendzimir mills Annealing and pickling line Polishing line Slitting and cut-to-lenght lines Coils and sheets

RAP Line

Contious rolling-annealing-pickling line

Logistics

Coils and sheets Transportation Customers

Terneuzen

Slitting and

cut-to-lenght lines

Coils and sheets Customers

• Concentrates from Kemi Mine are refined to FeCr at Ferrochrome Works

• Ferrochrome Works consists of a sintering plant, two smelting furnaces and product handling

• The final product is ferrochrome in different grain sizes. Ferrochrome Works also produces slag products for use as a construction material.

• In 2013 the third smelting furnace has doubled ferrochrome production to 530 000 tpa

• With the third furnace in use, Ferrochrome Works will supply raw material for the whole Outokumpu Group

• The balance will be sold globally

Ferrochrome Works – safe supply and stable quality

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FeCr sintering and smelting process BAT-technology

March 2012 Tornio site and Kemi Mine 19

Grinding

Filtering

Pelletising

Sintering

Gas cleaning

Smelting

Preheating

• At Steel Melting Shop liquid

ferrochrome and recycled steel are

melted according to customer

specified grade and cast into slabs

• Slab sizes are: Length 14 m,

thickness 167 – 185 mm, width

1000–1620 mm, weight 16–26

tons

• Capacity 1.6 million tpa

Steel Melting Shop – where the grade is produced

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• At Hot Rolling Mill slabs are hot

rolled into black coils

• Capacity is 1.6 million tpa

• Coil sizes: Thickness 2.5–12.7

mm, width 1000–1600 mm

Hot Rolling Mill – turning slabs into black coils

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• Black hot coils are annealed and

pickled to white hot bands and

further processed to cold rolled

products

• The capacity of the Cold Rolling

Plant is 1.2 million tpa

• 750 000 tpa cold rolled

products

• 450 000 tpa hot rolled

products

Cold Rolling Plant – producing finished sheet and coil

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Tandem mill

Annealing Mechanical descaling

Pickling Skin passing Entry Exit

Products from the RAP5-line

Tornio site and Kemi Mine March 2012 23

• The Port of Tornio is operated by

Outokumpu Shipping

• Exporting products into the

markets and importing raw

materials to Tornio Works

• The icebreakers keep the sea lane

open during winter

• Total traffic more than 2 Mt in

2012

Port of Tornio – an integral part of logistics

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• Finishing Plant with slitting and cut

to length facilities

• Capacity 450 000 tpa of cold

rolled and hot rolled products

• Non-stop vessel connection

between Terneuzen and Tornio

Finishing Plant in the Netherlands – link to markets

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Steps of Steel in Kemi and Tornio

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1950

1960

1970

1980

1990

2010

Chrome ore deposit discovered in Kemi in 1959

Kemi Mine and ferrochrome production begins in 1968 with a capacity of 28 000 tpa

Stainless steel production starts in 1976 with a capacity of 50 000 tpa

Kemi Mine expanded as the second FeCr smelting furnace begins operations in 1985

Hot Rolling Mill starts in 1988

Finishing Plant in the Netherlands opens in 1993

In 1995 ferrochrome converter begins operations, energy savings can

be achieved by using smelted ferrochrome in the process

Expansion of Cold Rolling Plant in 1997, capacity now exceeds 400 000 tpa

In 2004 steel production expansion project finalised,

stainless steel production capacity now 1,2 million tpa

Kemi Mine production moves underground in 2003, open pit exhausted in 2005

The capacity of ferrochrome production doubled in 2013, total capacity 530 tpa FeCr.

2000

Steps of steel Tornio site and Kemi Mine

Instructions for Visitors

March 2012 Tornio site and Kemi Mine 28

You have to be accompanied by your host

Personal protective equipment must be used at all times

Always follow the instructions of your host

We operate a recording video surveillance system on the premises

Photographing is not allowed

Smoking is allowed only in special areas

In case of emergency, please call

+358 16 452 300 (Tornio) or +358 16 453 737 (Kemi Mine)