Outokumpu – Insurance contract for the liabilities of the UK pension scheme

Outokumpu Oyj
Stock exchange release
December 20, 2021 at 9.30 pm EET

Outokumpu – Insurance contract for the liabilities of the UK pension scheme

Outokumpu operates a defined benefit pension scheme for its employees in the UK. The scheme trustee working closely with Outokumpu has now secured a 390-million-pound buy-in contract with specialist pension insurer Rothesay. With this contract, Rothesay insures the liabilities of the Outokumpu’s defined benefit pension scheme for 426 pensioners and a further 500 deferred members in the UK to guarantee the pension benefit payments. There will be no changes to the benefits of members of the pension scheme.

This transaction allows Outokumpu to mitigate risks related to the pension scheme involving for instance investments, changes in the interest rates as well as inflation and longevity, which could, if realized, result in an increase in the scheme’s liabilities.

The transaction is estimated to reduce Group’s equity by approximately EUR 100 million on a non-cash basis due to a change in actuarial valuation. The final amount is still subject to standard year-end pension valuation.

For more information:

Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669

Media: Päivi Allenius, VP – Communications, tel. +358 40 753 7374

Outokumpu Group

Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs some 9,500 professionals in more than 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com