Half Year 2023 Outokumpu Oyj Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Anssi Raussi - SEB, Research Division - Analyst : I have a few questions. And maybe the first one about Q2 and actually more about Q3. So the last quarter was strong in Americas, but do you think we could see a similar quarter in Q3 as well or how should we think about that one?

Question: Anssi Raussi - SEB, Research Division - Analyst : Okay. That's really helpful. And then maybe then about the BA Europe, like I understand that you're guiding Q3 to be weak, but maybe to give us some kind of a ballpark here, like are we talking about single-digit numbers in terms of EBITDA or maybe even close to 0 or what kind of ballpark we are looking at here?

Question: Anssi Raussi - SEB, Research Division - Analyst : Okay. And the last one from me is about your annual contracts like can you remind us what kind of pricing mechanisms you have in these contracts? Like are these alloy surcharge and fixed base price based contracts or what kind of structure you have in this?

Question: Moses Ola - JPMorgan Chase & Co, Research Division - Analyst : I have 2 questions. I think if possible, please. So the first one, I just wanted to clarify, is your CapEx target for Phase 2 of EUR 600 million still retained if I look at current CapEx to continue to (inaudible) reduced CapEx for the full year, perhaps we consider it in terms of your Phase 2 target that (inaudible).

Question: Moses Ola - JPMorgan Chase & Co, Research Division - Analyst : And then one thing else I noticed the other targets within now for 2025 for the net 0 target in Kemi how is that currently progressing? And then also the investment for Biocoke is that something that is still valid for Phase 3 as well?

Question: Moses Ola - JPMorgan Chase & Co, Research Division - Analyst : So the net 0 target in Kemi by 2025, could you just provide an update to how you're tracking with this, please? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 03, 2023 / 12:00PM, OUT1V.HE - Half Year 2023 Outokumpu Oyj Earnings Call

Question: Moses Ola - JPMorgan Chase & Co, Research Division - Analyst : And then finally for me. So your balance sheet still remains net cash even after the pension payment and guided to some reversal of working capital to support that cash position in the second half of the year. So how could we consider potential shareholder returns given your current organization as well for a 10% buyback?

Question: Maxime Kogge - ODDO BHF Corporate & Markets, Research Division - Analyst : I just had a question on your guidance for volumes in Q3. If we could have more color by region because you expect them to decrease by 5% to 15% on average. I was wondering whether -- I mean, it was fair to assume Europe would decrease very moderately given that in contrast to [you go], seasonal trends, Q2 shipments were actually lower than in Q1 and whether you therefore expect some kind of uptick there or at least stabilization. While in the U.S., they could be falling more sharply?

Question: Maxime Kogge - ODDO BHF Corporate & Markets, Research Division - Analyst : Okay. And perhaps the last question is on the operational group items. So they have been quite significantly positive in late last year. Now they are negative again. Is there some sort of normalized contribution we should assume for them going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 03, 2023 / 12:00PM, OUT1V.HE - Half Year 2023 Outokumpu Oyj Earnings Call

Question: Maxime Kogge - ODDO BHF Corporate & Markets, Research Division - Analyst : For other operations Yes, for the operations and inter-group items.

Question: Maxime Kogge - ODDO BHF Corporate & Markets, Research Division - Analyst : Okay. So EUR 10 million to EUR 12 million per quarter, not per year.