Ssab Ab Class A · OMXSTO:SSAB_A
Ssab Ab Class A — Q3 2023 Earnings Presentation
29 slides from Ssab Ab Class A's earnings presentation, Oct 25, 2023
Slide 1: Presentation of the Q3/2023 report
SSAB Presentation of the Q3/2023 report Martin Lindqvist, President & CEO Leena Craelius, CFO October 25, 2023
Slide 2: Agenda
Agenda − Q3/23 in brief − Financials − Outlook and summary − Q&A 2
Slide 3: Q3/23 in brief
Q3/23 in brief SSAB
Slide 4: Highlights in Q3
Highlights in Q3 Somewhat lower Focus on actions Good trend in Strong cash flow earnings vs. Q2/23 to lower costs safety generation 6,742 4.20 8,880 -12% 3.70 4,733 4,963 6,281 6,311 4,371 3,768 1.80 3,135 1.06 0.94 1,771 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 2019 2020 2021 2022 Q3/23 Q3/22 Q4/22 Q1/23 Q2/2
Slide 5: SSAB Special Steels
SSAB Special Steels Shipments, ktonnes 364 − Shipments impacted by weaker market, especially Europe 336 305 349 313 − Prices held up − Strong market position with products that adds significant customer value in the form of higher productivity and sustainability performance – more stable prices over
Slide 6: World leading product offering in high-strength steels
World leading product offering in high-strength steels Wear QT Structural QT Protection QT Tooling QT Additive Powder Key segments: Key segments: Key segments: Key segments: Key segments: Truck & body builder Lifting Civil Tooling Tooling Material handling Forestry Military Engineering Automotive AM
Slide 7: SSAB Europe
SSAB Europe Automotive AHSS Weak market Weak market Lower shipments at good level prices in Q3 -16% 160 912 907 174 166 140 1,446 161 778 759 140 713 138 120 100 764 80 254 60 0 40 20 -229 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 0 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 2112 2203 2206 2209
Slide 8: Strong market position in Automotive AHSS
Strong market position in Automotive AHSS Leading green transition opens new opportunities Roof rail, several Ford models Seat cross members for Lower-control-arm, Toyota Yaris Prototype Door-beam Docol CR 1700M-UC battery protection, ID. Buzz Docol HR 1000CP-UC Docol CR 1700M-EG Docol CR PHS2000-UC
Slide 9: SSAB Americas
SSAB Americas Earnings at Shipments slightly Some pressure on good level lower market prices in Q3 110 -3% 100 3,034 476 451 2,725 2,675 2,642 2,653 416 418 439 90 80 70 60 50 40 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 2112 2203 2206 2209 2212 2303 2306 2309 Operating result (adj
Slide 10: Ruukki Construction and Tibnor
Ruukki Tibnor Construction Inventory losses Actions to reduce Lower shipments continue Weak market costs +2% -13% 242 1 1,739 156 212 206 1,534 1,559 1,587 183 180 -50 1,329 -113 -181 28 10 -408 -1 -9 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/
Slide 11: Ramp-up of SSAB Zero continues
Ramp-up of SSAB Zero continues − Based on recycled steel, fossil- free electricity, bio carbon and bio gas − No carbon emission offsetting or mass balancing allocation schemes − Strong demand from key segments, Heavy Transport, Automotive, Construction, both in Europe and the US − Platform to levera
Slide 12: Financials
Financials SSAB
Slide 13: Weak European market - Special Steels and Americas more stable
Weak European market - Special Steels and Americas more stable 0%
Slide 14: Change in adjusted operating result Q3 vs. Q2
Change in adjusted operating result Q3 23 vs. Q2 23 Mainly SSAB Special Steels -1,830 Primarily due to SSAB Europe and seasonality Special Steels 1,035
Slide 15: Change in adjusted operating result Q3 vs. Q3
Change in adjusted operating result Q3 23 vs. Q3 22 Lower prices in all -1,645 divisions except for Special Steels -2,115 -750
Slide 16: Strong cash flow
Strong cash flow SEK millions 2023 2022 2022 Q3 Q3 Full-year EBITDA 5,307 7,451 32,340 Change in working capital 1,599 -5,400 -8,279 Maintenance capex -640 -478 -2,196 Other 44 198 828 Operating cash flow 6,311 1,771 22,693 Financial items 96 41 -17 Taxes -967 -1,644 -5,947 Cash flow from current op
Slide 17: Net cash position increased
Net cash position increased – Net cash of SEK 16,780m at the end of Q3 2023
Slide 18: Raw material
Raw material SSAB’s purchase price, year over year changes Market prices (AMM) Iron ore Coking coal Scrap 500 USD/ gross tonne 400 300 200 100 0 AMM Chicago #1HM • The costs of raw materials are expected to be fairly • Scrap prices stable stable • The purchase prices of scrap affect the result after
Slide 19: Expected maintenance costs
Expected maintenance costs – SSAB’s total maintenance costs for 2023 are expected to be SEK 1,525 (1,540) million, virtually unchanged compared to previous SEK millions 2023 2023 2023 2023 2023 forecast Q1 Q2 Q3 Q4 Full-year – Most maintenance to be carried out in Q4 SSAB Special Steels — — 75 600 6
Slide 20: Outlook and summary
Outlook and summary SSAB
Slide 21: SSAB's outlook for main customer segments Q4/2023
SSAB’s outlook for main customer segments Q4/2023 Segment Demand Comments Strong Neutral Weak - Healthy level of heavy truck production in Europe Heavy Transport - Good activity in shipbuilding in the US - Structurally growing AHSS market Automotive - Signs of slowdown in car demand (inflation, high
Slide 22: SSAB's outlook for Q4/2023
SSAB’s outlook for Q4/2023 - The market in Europe was weak during the third quarter and the assessment is that demand will remain subdued during the fourth quarter Volume and pricing outlook - The heavy plate market in North America Q4/23 vs. Q3/23 Shipments Realized prices is assessed to continue a
Slide 23: Summary
Summary − Continued good trend in safety − Weak European market – measures to reduce cost − Good cash flow generation − Leading the green transition − Investments continues − Power cables to Oxelösund approved by the Land and Environment court (could be appealed) − Strong demand for SSAB Zero 23
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 6.7 8.0 5.00 (6.1) years 7.0 4.50 4.00 − Averaged fixed interest term was 1.4 6.0 3.50 (1.0) years 5.0 3.00 − Average interest rate was 4.6% (3.0%) 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 36.3bn at the end of Q3 40,000 35,000 30,000 Back-up facilities 25,000 20,000 15,000 Cash 10,000 5,000 0 Cash and back- 2023 2024 2025 2026 2027+ up facilities 27
Slide 28: Cash needs of the business
Cash needs of the business − Total cash needs1) in 2023 estimated at around SEK 11bn (unchanged) ~11 − Higher strategic capex vs. 2022 due to ramp-up of Oxelösund conversion 10.0 Capex − Based on assumption of payment of steady taxes. This will, (maintenance ~5 however, depend on the outcome of FY 2
Slide 29: SSAB
SSAB