Slide 1: Presentation of the Q3/2024 report
SSAB Presentation of the Q3/2024 report Martin Lindqvist, President & CEO Leena Craelius, CFO Oct 23, 2024
Slide 2: Agenda
Agenda − Q3/24 in brief − Financials − Outlook and summary − Q&A 2
Slide 3: Q3/24 in brief
03/24 in brief SSAB
Slide 4: Transformation according to plan
Transformation according to plan Oxelösund − Construction of Electric Arc Furnace on-going − Closing down coking plant and two blast furnaces − Keep existing advanced rolling mill and Q&T lines Luleå − Preparations for mini-mill on-going − Environmental permit expected in Q4 4
Slide 5: SSABs transformation – building a stronger company
SSABs transformation – building a stronger company Strong demand for emission-free steels from key segments: SSAB targets substantial benefits: More flexible production at lower cost Heavy vehicles Transforming Automotive steel mills to and construction industry machinery fossil-free steel productio
Slide 6: Summary of Q3 2024
Summary of Q3 2024 Safer Focus areas in Operating result workplace Q4 4,371 3.70 − Finalize planned maintenance in Q4 and adjusting production to low demand 3,157 2,969 − Utilize framework for flexible 2,400 working hours 1.80 − Restrictive approach to costs 1,248 1.06 0.87 0.82 Q3/23 Q4/23 Q1/24 Q2
Slide 7: SSAB Special Steels
SSAB Special Steels Shipments Operating result ktonnes SEK m -10% 327 337 1,808 1,781 313 302 1,659 279 1,228 847 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 − Weak market in Europe − Earnings on good level − More stable demand in rest of the − Prices +1% vs. Q2/24 world − Good prici
Slide 8: SSAB Europe
SSAB Europe Shipments Operating result ktonnes SEK m -13% 870 400 776 818 759 756 254 165 163 42 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 − Seasonal slowdown vs Q2/24, − Prices stable vs. Q2/24 weak apparent demand − Planned maintenance impacted SEK -390m in Q3 8
Slide 9: SSAB Americas
SSAB Americas Shipments Operating result ktonnes -9% SEK m 439 437 437 439 2,653 398 1,681 1,412 1,204 78 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 − Cautious market − Prices -8% vs Q2/24, planned maintenance SEK -450m − Planned maintenance in Montpelier impacted shipments − Prices
Slide 10: Tibnor and Ruukki Construction
Ruukki Tibnor Construction Seasonal Lower shipments Improved earnings improvement Higher earnings -18% 217 57 1,587 1,607 126 191 197 36 1,472 180 177 21 1,335 1,015 42 28 -59 -36 -113 -78 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q3/23 Q4/23 Q1/24 Q2/
Slide 11: Financials
Financials SSAB
Slide 12: Weaker European and US market - Special Steels more stable
Weaker European and US market - Special Steels more stable
Slide 13: Change in operating result vs. Q2/24
Change in operating result vs. Q2/24 -1,830 1,035
Slide 14: Change in adjusted operating result vs. Q3/23
Change in adjusted operating result vs. Q3/23 -1,645 -2,115 -750
Slide 15: Cash flow
Cash flow SEK millions 2024 2023 2024 2023 2023 Q3 Q3 Jan-Sep Jan-Sep Full-year EBITDA 2,320 5,307 10,500 16,777 20,141 Change in working capital 483 1,599 -1,139 1,075 4,836 Maintenance capital expenditures -642 -640 -1,797 -1,479 -2,585 Other -734 44 -1,000 -647 -867 Operating cash flow 1,428 6,31
Slide 16: Net cash position
Net cash position – Net cash of SEK 13.3 billion at the end of Q3 2024 – Net debt/equity ratio -20% (-24%)
Slide 17: Capex increasing due to transformation
Capex increasing due to transformation − Capital expenditure in 2024 estimated at SEK 6.3bn (unchanged) Sum of maintenance and − Higher capex vs. 2023 due to ramp-up of strategic capex Oxelösund EAF conversion and start of Luleå mini-mill 6.3 − High level of capex over the next years with estimated
Slide 18: Raw material
Raw material SSAB’s purchase price, year over year changes Market prices (AMM, USD/ton) Iron ore Coking coal Scrap 400 350 300 250 200 150 100 50 0 AMM Chicago #1HM • The costs of raw materials for SSAB Special Steels are expected to be • Scrap prices relatively flat during Q3 somewhat lower compare
Slide 19: Expected maintenance costs
Expected maintenance costs – SSAB’s total maintenance costs for 2024 are expected to be SEK 1,650 (1,480) million, SEK millions 2024 2024 2024 2024 2024 higher compared to the previous forecast of Q1 Q2 Q3 Q4 Full-year SEK 1,555 million – Increase related to somewhat extended SSAB Special Steels — —
Slide 20: Outlook and summary
Outlook and summary SSAB
Slide 21: SSAB's outlook for main customer segments Q4/2024
SSAB’s outlook for main customer segments Q4/2024 Segment Demand Comments Strong Neutral Weak - Slowdown of heavy truck production in Europe continues Heavy Transport - Stable trend for railcars, shipbuilding in the US - Structurally growing AHSS market Automotive - European market weakening, US mar
Slide 22: SSAB's outlook for Q4/2024
SSAB’s outlook for Q4/2024 - Planned maintenance in SSAB Special Volume and pricing outlook Steels (Oxelösund) and SSAB Europe (Raahe) in Q4 Q4/24 vs. Q3/24 Shipments Realized prices SSAB Special Steels Somewhat lower Somewhat lower SSAB Europe Somewhat lower Lower SSAB Americas Higher Lower Definit
Slide 23: Summary
Summary − Strong focus on safety is yielding results − Good level of earnings in SSAB Special Steels – focus on pricing management − Investment programs for Luleå and Oxelösund continues, targeting substantial benefits: − More flexible production at lower cost − Platform to grow high-strength and pr
Slide 24: After presenting interim reports as CEO – Thank you!
After presenting 55 interim reports as CEO – Thank you! Revenue (SEK m) Operating result (SEK m) - First presentation as CEO was +200% Q4/2010 119,489 - Last fiscal year was 2023 16,467 - (In addition, 29 interim reports as CFO (Q1 2001- Q2 2008)) 39,883 1,132 2010 2023 2010 2023 24
Slide 25: Questions and Answers
Questions and Answers SSAB
Slide 26: Appendix
Appendix SSAB
Slide 27: Debt portfolio duration and interest rate
Debt portfolio duration and interest rate Years % − Duration of the loan portfolio was 6.5 8.0 5.00 (6.7) years 7.0 4.50 4.00 − Averaged fixed interest term was 1.2 6.0 3.50 (1.4) years 5.0 3.00 − Average interest rate was 4.4% (4.6%) 4.0 2.50 3.0 2.00 1.50 2.0 1.00 1.0 0.50 0.0 0.00 Q1 Q2 Q3 Q4 Q1
Slide 28: Maturity profile
Maturity profile − Liquid assets and committed credit SEK m lines at SEK 31.6bn at the end of 35,000 Q3 Back-up 30,000 facilities 25,000 20,000 15,000 Cash 10,000 5,000 0 Cash and back- 2024 2025 2026 2027+ up facilities 28
Slide 29: SSAB
SSAB