Financial success is one of the fundamentals for being able to create value for stakeholders. Outotec’s long-term financial targets involve profitability and continuous growth. Good financial management is of key importance to Outotec’s success.
In the recent review of material topics with stakeholders, financial performance was raised as a topic having a major impact on stakeholders, a fundamental Outotec must take good care of. The company’s financial performance has a direct impact on employees’ wealth and commitment, stakeholder value, jobs available and tax income of local communities.
The key resources for value creation are the deep know-how of Outotec’s 4,088 experts, 6,928 national technology patents, three research and development centers, as well as the Outotec brand. In addition, long customer and supplier relationships are essential resources for the company.
Outotec generates employment and wealth in local communities as an employer and a buyer of goods and services. The company also contributes to local communities through university cooperation and subcontracting R&D work. Outotec technologies often improve the conditions of the environment surrounding customers’ plants.
In 2019, Outotec paid EUR 9 million in current income taxes. Outotec neither paid dividends nor contributions to charities in 2019 due to negative earnings per share in 2018. To enhance its ability to create value over the cycle, Outotec aims to maintain its leadership in sustainable technologies and grow its service business.
Added value to stakeholders
- Sustainable products and services
- Long-term support and partnership
- Social license to operate
- 6.6 million tonnes of CO2e emissions avoided annually through use of Outotec technologies.
- Increased resource efficiency
- Wages and salaries EUR 321 million
In addition, we create added value to employees
- Wealth and professional growth
- Safe workplace, LTIR 0.6
- Respecting human rights
As the majority of Outotec’s manufacturing is sourced from external suppliers, we play an important role in supporting local businesses. In large projects, several hundred local engineers and other specialists, contractors and service providers work for us. Added value to our suppliers:
- Long-term partnerships
- Economic sustainability, EUR 663 million spent on suppliers.
- Responsible business practices
Outotec's university cooperation and subcontracted R&D work generates local jobs and enhances skills and knowledge development, creating value to the academic community:
- We subcontracted R&D work to universities and small and medium-sized enterprises for EUR 7 million in 2019.
- Thesis opportunities and internships for students
- Enhanced skills and knowledge of students
As the majority of Outotec’s manufacturing is sourced from external suppliers, we play an important role in supporting local businesses and generating employment and wealth in local communities.
Investors and financiers
Outotec did not pay dividends in 2019 due to negative earnings per share in 2018. To enhance its ability to create value over the cycle, Outotec aims to maintain its leadership in sustainable technologies and grow its service business.
- Market capitalization EUR 1054 million
- Compliance and transparency
- Net finance expenses EUR 14 million
- Interest on hybrid bond EUR 11 million
- Dividends 0
Economic value created
Economic value generated (GRI 201-1)
- Sales EUR 1,210 million.
- Operating costs EUR 687 million = The economic value generated in 2019 was EUR 425 million.
- EUR 85 million retained in the company.