Ssab Ab Class A · OMXSTO:SSAB_A
Ssab Ab Class A — Q1 2024 Earnings Presentation
29 slides from Ssab Ab Class A's earnings presentation, Apr 24, 2024
Slide 1: Presentation of the Q1/2024 report
SSAB Presentation of the Q1/2024 report Martin Lindqvist, President & CEO Leena Craelius, CFO April 24, 2024
Slide 2: Agenda
Agenda − Q1/24 in brief − Financials − Outlook and summary − Q&A 2
Slide 3: Q1/24 in brief
Q1/24 in brief SSAB
Slide 4: Highlights in Q1 2024
Highlights in Q1 2024 Improvement vs Leading the Safer Q4/23 green transition workplace 4,963 3.70 4,733 4,371 3,157 2,400 1.80 1.06 0.87 0.81 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 2020 2021 2022 2023 2024* Operating result (adj) SEK m Lost time injury frequency − Lower vs. Q1/23 due to lower US − Decision
Slide 5: SSAB Special Steels
SSAB Special Steels Shipments Operating result Additive Powder ktonnes SEK m +17% 349 364 2,094 2,003 313 327 1,808 1,781 279 847 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 − Seasonal recovery in Q1 − Earnings on good level − Launch of the world’s first emission-free steel powder fo
Slide 6: SSAB Europe
SSAB Europe Shipments Operating result Automotive AHSS ktonnes SEK m ktonnes +5% 912 907 764 +10% 776 818 759 174 166 175 161 159 254 165 163 0 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 − Seasonal improvement vs − Strikes in Finland had a − High level
Slide 7: SSAB Americas
SSAB Americas Shipments Operating result SSAB Zero ktonnes SEK m 2,675 2,642 2,653 476 451 439 437 437 1,681 1,412 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 − Cautious market without any − Prices -3% vs Q4/23 − Ramp-up continues meaningful restocking − Prices have decreased − 21,00
Slide 8: Construction of EAF in Oxelösund continues
Construction of EAF in Oxelösund continues − Environmental permit in place − Power allocation secured − Permit for power lines approved in Jan 2024 8
Slide 9: Strong demand for emission-free steels
Strong demand for emission-free steels Heavy vehicles Distribution Construction Automotive and partners and and industrial industry construction consumer equipment equipment products 9
Slide 10: A total of 55 partnerships
A total of 55 partnerships > = | i) S + SORVIA ‘ — shape & <> -Polestar avIA Autoliv (Shape | Mercedes-Benz | SHCARGOTEC CEpiroc @ osukosn Recall | | rUU<I | SPEABE © wy 1 | Lindab NORSK STAL
Slide 11: Decision to transform Luleå to fossil-free steelmaking
Decision to transform Luleå to fossil-free steelmaking − The total mini-mill investment is estimated to be EUR 4.5bn including contingencies. Will avoid replacement investments of around EUR 2bn that would otherwise be needed to sustain current system − Flexible mix of fossil-free sponge iron and sc
Slide 12: Efficient set-up – higher capacity for premium and Q&T
Efficient set-up – higher capacity for premium and Q&T Mini-mill set up in Luleå Meltshop Hot strip mill Cold mill complex − Advanced metallurgy incl. vacuum degassers − Tandem mill with pickling − Caster and direct rolling mill − Two Electric Arc Furnaces − Galvanizing line − Capacity for thin and
Slide 13: Financials
Financials SSAB
Slide 14: Improved shipments and result vs. Q4/23
Improved shipments and result vs. Q4/23
Slide 15: Change in adjusted operating result Q1/24 vs. Q4/23
Change in adjusted operating result Q1/24 vs. Q4/23 -1,830 1,035
Slide 16: Change in adjusted operating result Q1/24 vs. Q1/23
Change in adjusted operating result Q1/24 vs. Q1/23 -1,645 -2,115 -750
Slide 17: Lower result, somewhat higher capex vs Q1/23
Lower result, somewhat higher capex vs Q1/23 SEK millions 2024 2023 2023 Q1 Q1 Full-year EBITDA 4,142 5,600 20,141 Change in working capital -1,477 -1,618 4,836 Maintenance capex -520 -367 -2,585 Other -221 -480 -867 Operating cash flow 1,923 3,135 21,524 Financial items 118 104 437 Taxes -1,036 -75
Slide 18: Stable net cash position
Stable net cash position – Net cash of SEK 18.2 billion at the end of Q1/2024 – Net debt/equity ratio -25% (-22%) – Dividend of SEK 5.00 per share proposed, would mean around SEK 5bn payout in Q2/24 – Share buy back completed in Q1/2024 (total of SEK 2.5bn)
Slide 19: Raw material
Raw material SSAB’s purchase price, year over year changes Market prices (USD/tonne) Iron ore Coking coal Scrap 450 400 350 300 250 200 150 100 50 0 AMM Chicago #1HM • In Q2/24 , the cost of raw materials is expected to be • Scrap price decreased during Q1 somewhat lower than prior quarter • Purchas
Slide 20: Expected maintenance costs
Expected maintenance costs – SSAB’s total maintenance costs for 2024 are SEK millions 2024 2024 2024 2024 2024 expected to be SEK 1,555 (1,480) million, unchanged to previous forecast Q1 Q2 Q3 Q4 Full-year – Most maintenance to be carried out in Q3 SSAB Special Steels — — 100 330 430 SSAB Europe — —
Slide 21: Outlook and summary
Outlook and summary SSAB
Slide 22: SSAB's outlook for main customer segments Q2/2024
SSAB’s outlook for main customer segments Q2/2024 Segment Demand Comments Strong Neutral Weak - Heavy trucks in Europe slowing down from high level Heavy Transport - Good activity railcars and shipbuilding in the US - Structurally growing AHSS market Automotive - Generally good market, with a somewh
Slide 23: SSAB's outlook for Q2/2024
SSAB’s outlook for Q2/2024 - Underlying demand estimated to be fairly Volume and pricing outlook stable in Q2/24 vs Q1/24 in SSAB’s main markets Q2/24 vs. Q1/24 Shipments Realized prices SSAB Special Steels Higher Somewhat lower SSAB Europe Higher Stable SSAB Americas Somewhat higher Somewhat lower
Slide 24: Summary
Summary − Good level of earnings in SSAB Special Steels − High level of Automotive AHSS shipments − Leading the green transition − Oxelösund transformation on-going − Decision to build mini-mill in Luleå − Strong demand for SSAB Zero 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 6.1 8.0 5.0 (5.4) years 4.5 7.0 − Averaged fixed interest term was 1.2 6.0 4.0 (0.8) years 3.5 5.0 3.0 − Average interest rate was 4.6% (3.8%) 4.0 2.5 3.0 2.0 1.5 2.0 1.0 1.0 0.5 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 28: Maturity profile
Maturity profile − Liquid assets and committed credit lines at SEK 37.5bn at the end of Q1 SEK m 40,000 35,000 Back-up 30,000 facilities 25,000 20,000 Cash 15,000 10,000 5,000 0 Cash and back-up 2024 2025 2026 2027+ facilities 28
Slide 29: SSAB
SSAB