Ssab Ab Class A · OMXSTO:SSAB_A
Ssab Ab Class A — Investor Day (October 2014)
17 slides from Ssab Ab Class A's investor day presentation, Oct 1, 2014
Slide 1: SSAB Americas
SSAB Americas Charles Schmitt EVP & Head of SSAB Americas
Slide 2: Market leading North American steel producer of high-quality heavy plate
Market leading North American steel producer of high-quality heavy plate
Slide 3: Our steel product offering
Our steel product offering Heavy Plate Heavy Plate Coils • As-rolled plate • API grades • API grades • As-rolled plate • Laser quality plate Heat Treated Plate Hot-rolled strip (from Europe) • Normalized plates • Hot rolled coils • Hot rolled sheets 3 October 1, 2014 Charles Schmitt
Slide 4: Strong North American manufacturing footprint
Strong North American manufacturing footprint 1 Montpelier, Iowa Employees: 500 Heavy plate mill, 1.2 M tonnes Scrap based EAF production R&D Centre 3 2 3 Mobile, Alabama 1 Employees: 600 Heavy plate mill, 1.2 M tonnes Scrap based EAF production 2 3 Q&T lines 3 Cut-to-length lines Employees: 120 St.
Slide 5: Sales split and development
Sales split and development Quarterly Net sales Net sales by market area MSEK 3 500 Others 3 000 Canada 2 500 2 000 1 500 1 000 500 0 1/13 2/13 3/13 4/13 1/14 2/14 US Revenue growth supported by improved prices Q1 2014 revenue impacted by Mobile outage and Shipments 2013: 2.0 M tonnes weather
Slide 6: Profitability development
Profitability development EBIT and EBITDA MSEK MSEK H1/14 H1/13 2013 350 10% 300 9% EBITDA 493 225 710 8% 250 7% EBITDA, % 8% 4% 6% 200 6% EBIT* 250 -7 241 150 5% 100 4% EBIT % 4% 0% 2% 3% 50 2% Improved spread between sales price and 0 1% raw material cost -50 0% 1/13 2/13 3/13 4/13 1/14 2/14 M
Slide 7: Improved prices and margins after a long period of pressure
Improved prices and margins after a long period of pressure US plate market prices minus spot cost of scrap USD / ton 600 500 400 300 200 7 October 1, 2014 Charles Schmitt
Slide 8: SSAB Americas Maintenance Cycle
SSAB Americas Maintenance Cycle 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Mobile Montpelier Mobile Montpelier Outage Outage Outage Outage Montpelier planned maintenance outage scheduled for 19 days in Q4 2014 No major planned outages during 2015 8 October 1, 2014 Charles Schmitt
Slide 9: Customer segment outlook stable in near term
Customer segment outlook stable in near term Heavy transportation Energy The truck & trailer market is Shale gas is a “game stable changer” Railcar builders remain Strong US & Mexican line positive - orders through pipe demand for 2015 & 2016 beyond Improved demand from the US wind and t
Slide 10: Strong long term demand for plate from energy related industries and transportation
Strong long term demand for plate from energy related industries and transportation Strong demand for transporting shale field product to refineries increases both railcar and line pipe demand The rail tank car market continues to run at elevated levels resulting in high demand for normalized pl
Slide 11: SSAB Americas – strategic priorities
SSAB Americas – strategic priorities 1 Secure the North American Global leadership in home market and high strength grow in selected steels categories and nearby Most flexible Leading home Leading value markets operations market positions added services 3 2 Taking the lead! Maintain the Strengthen l
Slide 12: Continuous evaluation of capacity growth opportunities to maintain market leading position
Continuous evaluation of capacity growth opportunities to maintain market leading position SSAB’s goal is to maintain its leading plate market position and to expand capacity to capture the expected market growth Several capacity growth options are being evaluated both large and small First in
Slide 13: SSAB positioned in North America as the most cost efficient plate producer
SSAB positioned in North America as the most cost efficient plate producer Largest plate producer and supplier in North America Most modern plate production assets Most competitive cost position among peer plate mills Flexible production setup with EAF and with significantly lower headcount
Slide 14: Customer Satisfaction Rating
Preferred supplier that consistently rank as nr 1 or 2 in independent customer surveys Jacobson Report Q2 2014 10 9 Customer Satisfaction Rating 8 7 6 5 4 Overall Satisfaction Quality Service On Time SSAB NA Comp A Comp B Comp C Comp D Import 14 October 1, 2014 Charles Schmitt
Slide 15: Close cooperation with customers to create a competitive advantages
Close cooperation with customers to create a competitive advantages Case Example Customer Challenge Results – New rail car design taking advantage – Reduced welding costs; eliminated of SSAB’s light and wide, high- 100 feet of welding per car. strength steels – Fit-up issues eliminated Solutio
Slide 16: Summary
Summary Positive outlook for plate market strongly supported by energy sector and improving heavy transport and construction industry outlook Improved earnings supported by stable prices and continued improvements in cost performance SSAB has a strong North American production footprint with a
Slide 17: A stronger, lighter and more sustainable world
A stronger, lighter and more sustainable world SSAB