Ssab Ab Class A · OMXSTO:SSAB_A
Ssab Ab Class A — Q4 2024 Earnings Presentation
36 slides from Ssab Ab Class A's earnings presentation, Jan 29, 2025
Slide 1: Presentation of the Q4/2024 report
SSAB Presentation of the Q4/2024 report Johnny Sjöström, President & CEO Leena Craelius, CFO Jan 29, 2025
Slide 2: Agenda
Agenda − Introduction and FY 2024/Q4 − Transformation program − Financials − Outlook and summary − Q&A 2
Slide 3: Introduction and FY 2024/Q4
1. Introduction and FY 2024/Q4
Slide 4: Our vision: A stronger, lighter and more sustainable world
Our vision A stronger, lighter and more sustainable world
Slide 5: Strategy
Strategy Leading the green transition Leading the green Introduce a new generation of sustainable steel products and steel transition transform current production footprint Targeting Industry-leading profitability Combine a modern more efficient and fossil-free production Global leadership system wi
Slide 6: Strategic rationale for our transformation
Strategic rationale for our transformation Significant investment need due to aging equipment and inefficient logistics, Flexibility to carry out the mainly in the Swedish strip system transformation in a robust way, taking into account our financial capacity, customer demand and the overall Increas
Slide 7: Highlights 2024
Highlights 2024 Good progress Support from Strong financial in safety Operating result premium products position 3.70 29,283 690 18.2 17.8 649 665 14.3 539 538 18,837 16,467 1.80 2.3 7,860 1.06 0.87 0.75 -325 -10.3 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021
Slide 8: SSAB Special Steels
SSAB Special Steels Shipments Operating result ktonnes SEK m -14% 327 337 1,781 302 1,659 279 260 1,228 847 629 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 − Weaker demand, slow end of the − Planned maintenance cost SEK year in Europe 420m in Q4 − Market share remains at a high − Pri
Slide 9: SSAB Europe
SSAB Europe Shipments Operating result ktonnes SEK m -1% 870 400 776 818 756 750 165 163 109 42 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 − Weak market − Prices -4% vs. Q3/24 − Record level of Automotive − Planned maintenance cost SEK AHSS shipments 270m in Q4 9
Slide 10: SSAB Americas
SSAB Americas Shipments Operating result +10% ktonnes SEK m 437 437 439 438 1,681 398 1,412 1,204 189 78 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 − Cautious market − Prices -9% vs Q3/24 − Planned maintenance impacted Q3/24 10
Slide 11: Tibnor and Ruukki Construction
Tibnor Ruukki Construction Shipments Operating result Revenue Operating result +15% -12% 217 57 1,607 126 203 191 197 1,472 1,414 177 36 1,335 21 1,015 42 -34 -36 -39 -59 -78 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Shipm
Slide 12: Transformation program
Transformation program SSAB
Slide 13: Nordic transformation projects
Nordic transformation projects Luleå – new mini-mill − Two EAFs with total capacity of 2.5 Mt − New cold mill complex for premium products − Environmental permit in Q4/24 Oxelösund – new EAF − One EAF with capacity of 1.5 Mt − Good progress during 2024 13
Slide 14: Luleå project includes two major parts
Luleå project includes two major parts Hot end (Replacement investment) Cold mill complex (Strategic) 1 2 EUR 3.2bn - Capacity 2.5 Mt EUR 1.3bn - Capacity 1.3 Mt EAF Hot strip mill Cold rolling and galvanizing Moving from primary (BF/BOF) Replacing Hot strip mill in Adding new capacity in the to sec
Slide 15: New advanced EAF-based melt shop
New advanced EAF-based melt shop Improved flexibility in production and raw materials vs previous EAF vs current blast furnace generation − Less emissions − Production flexibility − Continuous scrap feed − A blast furnace shutdown means a minimum of 2-4 − No need for LNG burners weeks, new melt shop
Slide 16: Hot strip mill with new capabilities
Hot strip mill with new capabilities Significantly shorter lead times and more dimensions − From liquid steel to coil in one process − Thickness range of 1.3-25 mm and width up to 2,000 mm − Significant lower energy consumption and better logistics − ¼ EN tolerance as standard (SSAB today at 1/3) −
Slide 17: Cold mill complex – more premium products
Cold mill complex – more premium products − Coupled pickling and tandem mill − New products − 3rd generation AHSS (for example Dual Phase with high formability/ductility (DH) with superb and progressive crash- energy absorption − Width up to 1,900 mm − Capacity for exposed panels − New coatings – Ma
Slide 18: EBITDA effect of Luleå transformation vs current structure
EBITDA effect of Luleå transformation vs current structure • Fixed production costs are • Adding 1 Mtonnes per year of reduced by 50% per ton high-strength and premium • SSAB avoids the costs of products, including Q&T grades CO2 emissions. >5 bn SEK/year • Lower maintenance costs, maintenance stops
Slide 19: Financials
Financials SSAB
Slide 20: Weak European market - Premium more stable
Weak European market - Premium more stable
Slide 21: Change in operating result Q4/24 vs. Q3/24
Change in operating result Q4/24 vs. Q3/24 -1,830 1,035
Slide 22: Change in operating result Q4/24 vs. Q4/23
Change in operating result Q4/24 vs. Q4/23 -1,645 -2,115 -750
Slide 23: Cash flow in Q4 supported by working capital
Cash flow in Q4 supported by working capital SEK millions 2024 2023 2024 2023 Q4 Q4 Full-year Full-year EBITDA 1,569 3,364 12,069 20,141 Change in working capital 3,610 3,760 2,470 4,836 Maintenance capital expenditures -977 -1,106 -2,773 -2,585 Other -74 -220 -1,074 -867 Operating cash flow 4,127 5
Slide 24: Strong net cash position
Strong net cash position – Net cash of SEK 17.8 billion at the end of Q4 2024 – Net debt/equity ratio -25% (-27%) – Dividend of SEK 2.60 per share proposed, SEK 2.6bn to be paid to shareholders in Q2 2025
Slide 25: Capex increasing due to transformation
Capex increasing due to transformation − Capital expenditure in 2025 estimated at Sum of maintenance and SEK 10bn strategic capex (SEK bn) − Higher strategic capex vs. 2024 due to the start of Luleå mini-mill 10 − Estimated peak years in 2026 and 2027 7 5.4 Strategic capex 2.6 Maintenance capex 2.8
Slide 26: Raw material prices
Raw material SSAB’s purchase price, year over year changes Market prices (AMM) Iron ore Coking coal Scrap 400 350 USD/Gross tonne 300 250 200 150 • Raw material costs is expected to be stable for SSAB Special Steels and SSAB • Higher scrap prices in the start of Q1/25 Europe compared to prior quarte
Slide 27: Expected maintenance costs
Expected maintenance costs – SSAB’s total maintenance costs for 2025 are expected to be SEK 1,520 SEK millions 2025 2025 2025 2025 2025 (1,640) million Q1 Q2 Q3 Q4 Full-year – Most maintenance to be carried out in Q4 SSAB Special Steels — — 90 580 670 SSAB Europe — — 290 230 520 SSAB Americas — — 0
Slide 28: Outlook and summary
Outlook and summary SSAB
Slide 29: SSAB's outlook for main customer segments Q1/2025
SSAB’s outlook for main customer segments Q1/2025 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 30: SSAB's outlook for Q1/2025
SSAB’s outlook for Q1/2025 - Demand is expected to remain weak on Volume and pricing outlook SSAB's home markets, Europe and North America, during the first quarter of Q1/25 vs. Q4/24 Shipments Realized prices 2025 SSAB Special Steels Significantly higher Somewhat lower - Seasonal improvement in shi
Slide 31: Summary
Summary − Strong focus on safety is yielding results − Good level of earnings in SSAB Special Steels – relatively stable prices − Investment programs for Luleå and Oxelösund continues, targeting substantial benefits: − Enables SSAB Europe to take major step in improving product mix and to re-positio
Slide 32: Questions and Answers
Questions and Answers SSAB
Slide 33: Appendix
Appendix SSAB
Slide 34: Debt portfolio duration and interest rate
Debt portfolio duration and interest rate Years % − Duration of the loan portfolio was 6.5 8 5,00 (6.2) years 7 4,50 4,00 − Averaged fixed interest term was 1.1 6 3,50 (1.4) years 5 3,00 − Average interest rate was 4.3% (4.7%) 4 2,50 3 2,00 1,50 2 1,00 1 0,50 0 0,00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 35: Maturity profile
Maturity profile − Liquid assets and committed credit SEK m lines at SEK 36.3bn at the end of 40 000 Q4 35 000 Back-up 30 000 facilities 25 000 20 000 15 000 Cash 10 000 5 000 0 Cash and back-up 2025 2026 2027+ facilities 35
Slide 36: SSAB
SSAB