Slide 1: Presentation of the Q2/2024 report
SSAB Presentation of the Q2/2024 report Martin Lindqvist, President & CEO Leena Craelius, CFO July 24, 2024
Slide 2: Agenda
Agenda − Q2/24 in brief − Financials − Outlook and summary − Q&A 2
Slide 3: Q2/24 in brief
Q2/24 in brief SSAB
Slide 4: Highlights in Q2 2024
Highlights in Q2 2024 Fairly stable result Safer Good cash flow vs Q1/24 workplace generation 4,963 3.70 4,371 6,281 6,311 5,798 3,157 2,969 2,400 1.80 3,214 1.06 1,923 0.87 0.64 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 2020 2021 2022 2023 2024* Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Operating result (adj) SEK m Lost t
Slide 5: Transformation to fossil-free steel making continues
Transformation to fossil-free steel making continues 40,000 tonnes of SSAB Zero produced SSAB’s updated targets to reduce greenhouse gas emissions were approved by the Science Based Targets initiative (SBTi). The targets are scientifically based and deliver on the goal of limiting global warming to
Slide 6: SSAB Special Steels
SSAB Special Steels Shipments Operating result Additive Powder ktonnes SEK m +3% 364 2,003 327 337 1,808 1,781 313 1,659 279 847 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 − Weak market in Europe − Earnings on good level − World’s first emission-free steel powder for commercial deli
Slide 7: SSAB Europe
SSAB Europe Shipments Operating result ktonnes SEK m +6% 907 870 764 776 818 759 400 254 165 163 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 − Seasonal improvement vs − Strikes in Finland had a Q1/24 negative effect of SEK 125m − Prices +1% vs. Q1/24 7
Slide 8: Strong market position in Automotive AHSS
Strong market position in Automotive AHSS Shipments at record level – Advanced product offering ktonnes including martensitic grades, press hardening steel, 3rd gen dual phase with high formability etc. 185 174 175 166 – Leading position in emission 159 free steel generates new business Seat cross m
Slide 9: SSAB Americas
SSAB Americas Shipments Operating result SSAB Zero ktonnes SEK m 2,642 2,653 451 439 437 437 439 1,681 1,412 1,204 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 − Cautious market − Prices -7% vs Q1/24 − Ramp-up continues − Prices have decreased − 40,000 tonnes produced in from a high l
Slide 10: Ruukki Construction and Tibnor
Ruukki Tibnor Construction Higher shipments Improved earnings Weak market Improved earnings +10% 206 217 57 1,559 1,587 42 191 197 36 1,472 28 180 1,335 10 1,015 -50 -59 -36 -113 -78 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/
Slide 11: Financials
Financials SSAB
Slide 12: Somewhat higher shipments vs Q1/24
Somewhat higher shipments vs Q1/24
Slide 13: Change in operating result vs. Q1/24 (SEK m)
Change in operating result vs. Q1/24 (SEK m) -1,830 1,035
Slide 14: Change in adjusted operating result vs. Q2/23 (SEK m)
Change in adjusted operating result vs. Q2/23 (SEK m) -1,645 -2,115 -750
Slide 15: Net cash flow impacted by dividend to shareholders
Net cash flow impacted by dividend to shareholders SEK millions 2024 2023 2024 2023 2023 Q2 Q2 Jan-Jun Jan-Jun Full-year EBITDA 4,038 5,871 8,180 11,470 20,141 Change in working capital -145 1,094 -1,623 -524 4,836 Maintenance capital expenditures -635 -473 -1,155 -840 -2,585 Other -45 -211 -266 -69
Slide 16: Capex increasing due to transformation
Capex increasing due to transformation − Capital expenditure in 2024 estimated at SEK 6.3bn (previous estimate 5.5bn) Sum of maintenance and − Higher vs. previous estimate due to start of strategic capex spending of the Luleå mini-mill later later this year 6.3 − Higher capex vs. 2023 due to ramp-up
Slide 17: Net cash position
Net cash position – Net cash of SEK 14.1bn at the end of Q2 2024 – Net debt/equity ratio -21% (-17%) – Divdend of SEK 5bn paid in Q2
Slide 18: Raw material
Raw material SSAB’s purchase price, year over year changes Market prices (AMM) Iron ore Coking coal Scrap (USD per gross ton) 400 350 300 250 200 150 100 50 0 • The cost of most raw materials is expected to be somewhat lower than prior • Slightly decreasing scrap prices during Q2 quarter • The purch
Slide 19: Expected maintenance costs
Expected maintenance costs – SSAB’s total maintenance costs for 2024 are expected to be SEK 1,555 SEK millions 2024 2024 2024 2024 2024 (1,480) million, unchanged compared to Q1 Q2 Q3 Q4 Full-year previous forecast – Most maintenance to be carried out in SSAB Special Steels — — 100 320 420 Q3 SSAB E
Slide 20: Outlook and summary
Outlook and summary SSAB
Slide 21: SSAB's outlook for main customer segments Q3/2024
SSAB’s outlook for main customer segments Q3/2024 Segment Demand Comments Strong Neutral Weak - Reduction in heavy truck production in Europe Heavy Transport - Stable trend for railcars - Structurally growing AHSS market Automotive - SSAB in strong position - Weaker demand in Europe and slowdown in
Slide 22: SSAB's outlook for Q3/2024
SSAB’s outlook for Q3/2024 - Seasonal downturn more pronounced Volume and pricing outlook than normal Q2/24 vs. Q1/24 Shipments Realized prices - Planned maintenance will adjust production to lower demand SSAB Special Steels Lower Somewhat lower - SSAB Americas has brought forward the SSAB Europe Lo
Slide 23: Summary
Summary − Strong focus on safety is yielding results − Good level of earnings in SSAB Special Steels – focus on pricing management − Record level of Automotive AHSS shipments − Investment programs for Luleå and Oxelösund continues, targeting substantial benefits: − Elimination of CO2 emissions from
Slide 24: Questions and Answers
Questions and Answers SSAB
Slide 25: Appendix
Appendix SSAB
Slide 26: Debt portfolio duration and interest rate
Debt portfolio duration and interest rate Years % − Duration of the loan portfolio was 6.9 8.0 5.00 (5.6) years 7.0 4.50 − Averaged fixed interest term was 1.3 6.0 4.00 (1.3) years 3.50 5.0 3.00 − Average interest rate was 4.7% (4.2%) 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 27: Maturity profile
Maturity profile − Liquid assets and committed credit SEK m lines at SEK 32.3bn at the end of 35,000 Q2 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 27
Slide 28: SSAB
SSAB