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

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 transactionis estimated to reduce Group's equity by approximatelyEUR 100millionon a non-cash basis due to a change in actuarial valuation.The final amount is still subject to standardyear-end pension valuation.

For more information:

Investors: Linda Häkkilä, Head of Investor Relations, tel. [phone]

Media: Päivi Allenius, VP - Communications, tel. [phone]

Outokumpu Group