OUTOKUMPU EVALUATING THE POSSIBILITY OF LISTING OUTOKUMPU TECHNOLOGY ON THE HELSINKI STOCK EXCHANGE
OUTOKUMPU OYJ STOCK EXCHANGE RELEASE JUNE 7, 2006 AT 9.00 AM
Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan. OUTOKUMPU EVALUATING THE POSSIBILITY OF LISTING OUTOKUMPU TECHNOLOGY ON THE HELSINKI STOCK EXCHANGE The Board of Directors of Outokumpu Oyj has decided to start to evaluate the possibility of listing Outokumpu Technology on the Helsinki Stock Exchange. The primary structural alternative under consideration is sale of shares through an Initial Public Offering to Finnish and international institutional investors and to the public in Finland. The timing of the possible listing is subject to market conditions, however, in the autumn 2006 at the earliest. Outokumpu Technology, currently a wholly owned subsidiary of Outokumpu Oyj, is a global leader in designing, developing and supplying tailored plants, processes and equipment for the minerals and metals processing industries worldwide. Outokumpu Technology has 1 800 employees and generated sales of EUR 590 million in 2005. The Board and management of Outokumpu believe that the listing of Outokumpu Technology as an independent company on the Helsinki Stock Exchange, with its own focus, will improve the strategic focus and prospects for continued business development for both companies, also considering the limited synergies between the two companies. As two listed companies, both Outokumpus and Outokumpu Technologys valuations will be more transparent in the market. Says Juha Rantanen, CEO of Outokumpu, "Outokumpus vision is to be the undisputed number one in stainless steel, with success based on operational excellence. By listing Outokumpu Technology we can devote the managements full attention to reaching that goal. Im also convinced that as an independent listed company Outokumpu Technology will have the ability to grow and develop, and further enhance its position as a world leader in its field. We have strong confidence in Outokumpu Technologys future and expect to retain a significant minority interest in the company in connection with a potential listing." Outokumpu Technology has been managed as an independent business within the Outokumpu Group since April 2005. Outokumpu Technology will have a strong balance sheet and financial flexibility necessary in carrying out the companys business operations. Outokumpu Technology has a leading market position with its advanced and environmentally sound technologies, and a wide range of offerings for the mining and metallurgical industries. The current high metal prices have boosted technology sales and, during the first quarter of 2006, with its current scope of operations, Outokumpu Technologys sales totaled EUR 170 million, which was almost triple the level compared to the same period in 2005. Operating profit for the quarter, which is usually seasonally weak, was EUR 5 million compared to a loss of EUR 7 million in the first quarter 2005. At the end of March 2006, Outokumpu Technologys order backlog stood at a record high of EUR 634 million. The strong order backlog and the favorable market environment supported the improvement of Outokumpu Technologys operating profit for the latest twelve months to EUR 37 million through the end of March 2006. Outokumpu Technologys business is divided into three divisions: Minerals Processing, responsible for ore concentrating technologies; Base Metals, selling copper, nickel, zinc, precious metals and ferroalloy technologies; and Metals Processing, focusing on iron, aluminum, and sulfuric acid/off-gas technologies. Research and development is one of the key focus areas within Outokumpu Technology and the company has its own research and testing centers in Pori, Finland, and Frankfurt, Germany. Tapani Järvinen, President and CEO of Outokumpu Technology comments, "This is an exciting opportunity for Outokumpu Technology. We have a positive view on the metals market going forward and expect mining and metals processing industries activity and investments to remain at a high level. With several industry benchmark technologies, Outokumpu Technology is well positioned to benefit from the increased global demand for metals. In addition, we believe that broadening the project scopes and increasing the service business, developing, commercializing and acquiring new technologies and building strategic partnerships with the industry leaders will offer Outokumpu Technology new opportunities." Nordea has been appointed as Outokumpu's financial adviser and global coordinator in the contemplated listing of Outokumpu Technology. Lehman Brothers has been appointed as joint bookrunner of the related institutional offering. For further information, please contact: Karri Kaitue, Deputy CEO, tel. +358 9 421 5506, karri.kaitue@outokumpu.com Kari Lassila, SVP IR and Communications, tel. +358 9 421 2555, kari.lassila@outokumpu.com Eero Mustala, SVP Corporate Communications, tel. +358 9 421 2435, eero.mustala@outokumpu.com OUTOKUMPU OYJ Corporate Management Ingela Ulfves Vice President - Investor Relations tel. + 358 9 421 2438, mobile +358 40 515 1531, fax +358 9 421 2125 e-mail: ingela.ulfves@outokumpu.com www.outokumpu.com The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan. The materials do not constitute an offer of securities for sale in the United States, nor may the securities be offered or sold in the United States absent registration or an exemption from registration as provided in the U.S. Securities Act of 1933, as amended, and the rules and regulations thereunder. There is no intention to register any portion of the offering in the United States or to conduct a public offering of Shares in the United States. The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. This document does not constitute an offer of securities to the public in the United Kingdom. No prospectus has been or will be registered in the United Kingdom in respect of the securities, and consequently the securities must not be sold or offered for sale in the United Kingdom, except to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their business or whom it is reasonable to suppose will acquire, hold, manage or dispose of investments (as principal or agent) for the purposes of their business.