Ssab Ab Class A · OMXSTO:SSAB_A
Ssab Ab Class A — Q4 2023 Earnings Presentation
27 slides from Ssab Ab Class A's earnings presentation, Jan 31, 2024
Slide 1: Presentation of the Q4/2023 report
SSAB Presentation of the Q4/2023 report Martin Lindqvist, President & CEO Leena Craelius, CFO January 31, 2024
Slide 2: Agenda
Agenda − FY and Q4/23 in brief − Financials − Outlook and summary − Q&A 2
Slide 3: FY and Q4/23 in brief
FY and Q4/23 in brief SSAB
Slide 4: Highlights in 2023
Highlights in 2023 Good level of Leading the Safer Strong cash flow earnings green transition workplace generation 29.3 4.20 16.2 3.70 14.2 12.6 18.8 16.5 1.80 1.06 0.87 2.2 2.2 1.3 -0.3 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Operating result (adj) SEK m Lost time
Slide 5: Q4 impacted by maintenance and weak European market
Q4 impacted by maintenance and weak European market Operating result (adj) Special Steels SSAB Europe SSAB Americas 2,094 2,003 2,725 2,675 2,642 2,653 1,808 764 1,369 1,681 847 254 165 0 -229 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 − Planned mainten
Slide 6: Business highlights 2023
Business highlights 2023 Global leader in high-strength Strong position in Automotive US plate market leader steel AHSS +22% 657 538 ktons 2022 2023 − Stable prices despite weaker − Market share increased to 31% market − Outperforming the general steel market (30%) in 2023 (prel.) − Special Steels’
Slide 7: SSAB Zero – unique product generating strong interest
SSAB Zero – unique product generating strong interest − Based on recycled steel, fossil- free electricity, bio carbon and bio gas − No carbon emission offsetting or mass balancing allocation schemes − More than 50,000 tonnes shipped in 2023 − Platform to leverage growth 7
Slide 8: New partnerships during Q4
New partnerships during Q4 − Fossil-free steel for use initially in − GE Vernova will be able to − Decarbonize all steel deliveries from manufacture onshore wind towers SSAB to Scania’s heavy-duty the production of Sandvik’s loaders and trucks with the lowest carbon footprint in vehicles in 2030 the
Slide 9: Growing demand in the US for sustainable products
Growing demand in the US for sustainable products Industry trends support plate market − Customers demanding a full range of zero emission plate products − Increasing demand for prime scrap, to meet more advanced requirements − Federal programs drives investment in energy and infrastructure – Inflat
Slide 10: Oxelösund transformation continues according to plan
Oxelösund transformation continues according to plan − Environmental permit in place − Power allocation secured − Permit for power lines approved in Jan 2024 − In November, the Swedish Prime Minister attended the start of the construction work for the electric arc furnace 10
Slide 11: Financials
Financials SSAB
Slide 12: Q4 impacted by planned maintenance
Q4 impacted by planned maintenance
Slide 13: Change in adjusted operating result Q4 vs. Q3
Change in adjusted operating result Q4 23 vs. Q3 23 -1,830 1,035
Slide 14: Change in adjusted operating result Q4 vs. Q4
Change in adjusted operating result Q4 23 vs. Q4 22 -1,645 -2,115 -750
Slide 15: Strong cash flow
Strong cash flow SEK millions 2023 2022 2023 2022 Q4 Q4 Full-year Full-year EBITDA 3,364 4,659 20,141 32,340 Change in working capital 3,760 4,921 4,836 -8,279 Maintenance capex -1,106 -1,018 -2,585 -2,196 Other -220 317 -867 828 Operating cash flow 5,798 8,880 21,524 22,693 Financial items 146 -1 4
Slide 16: Net cash position increased
Net cash position increased – Net cash of SEK 18.2bn at the end of Q4/23 – Approx. 18.3m shares bought back in Q4, SEK 1.3bn spent (of total 2.5bn) – Buy back program continues in Q1/24 – Dividend of SEK 5.00 per share proposed, would mean around SEK 5bn payout in Q2/24
Slide 17: Raw material
Raw material SSAB’s purchase price, year over year changes Market prices (AMM) Iron ore Coking coal Scrap 450 400 350 300 250 200 150 100 50 0 AMM Chicago #1HM • In Q1/24 , the cost of raw materials is expected to be somewhat higher than • Scrap price increased in December prior quarter • Purchase p
Slide 18: Expected maintenance costs
Expected maintenance costs – SSAB’s total maintenance costs for 2024 are expected to be SEK 1,555 (1,480) million SEK millions 2024 2024 2024 2024 2024 – Most maintenance to be carried out in Q3 Q1 Q2 Q3 Q4 Full-year SSAB Special Steels — — 100 330 430 SSAB Europe — — 375 225 600 SSAB Americas — — 5
Slide 19: Outlook and summary
Outlook and summary SSAB
Slide 20: SSAB's outlook for main customer segments Q1/2024
SSAB’s outlook for main customer segments Q1/2024 Segment Demand Comments Strong Neutral Weak - Heavy trucks in Europe slowing down from high level Heavy Transport - Positive indications for railcars and vessels in the US - Structurally growing AHSS market Automotive - Signs of slowdown in car deman
Slide 21: SSAB's outlook for Q1/2024
SSAB’s outlook for Q1/2024 - Seasonal improvement expected for SSAB Europe and SSAB Special Steels - Q4 impacted by planned maintenance Volume and pricing outlook - Market prices impact SSABs realized prices with a certain delay Q1/24 vs. Q4/23 Shipments Realized prices SSAB Special Steels Significa
Slide 22: Summary
Summary − Good level of earnings in 2023 − Q4 impacted by planned maintenance and weak European market − Strong cash flow generation − Share buy back ongoing − Dividend of SEK 5.00 per share proposed − Leading the green transition − All required permits in place for the Oxelösund transformation − St
Slide 23: Questions and Answers
Questions and Answers SSAB
Slide 24: Appendix
Appendix SSAB
Slide 25: Debt portfolio duration and interest rate
Debt portfolio duration and interest rate Years % − Duration of the loan portfolio was 6.2 8.0 5.00 (5.7) years 7.0 4.50 4.00 − Averaged fixed interest term was 1.4 6.0 3.50 (0.9) years 5.0 3.00 − Average interest rate was 4.7% (3.4%) 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 26: Maturity profile
Maturity profile − Liquid assets and committed credit SEK m lines at SEK 37.2bn at the end of Q4 40,000 35,000 30,000 Back-up 25,000 facilities 20,000 15,000 10,000 Cash 5,000 0 Cash and back-up 2024 2025 2026 2027+ facilities 26
Slide 27: SSAB
SSAB