This document provides an overview of SSAB, a global steel company. It discusses SSAB's strategy and targets, highlights from the first quarter of 2018, and an outlook for the second quarter. Key points include SSAB achieving good growth in strategic areas like high-strength steels in Q1, an improved earnings outlook for Q2 due to strong demand and higher prices, and progress made on the HYBRIT initiative to develop fossil-free steel production in partnership with other companies. The presentation establishes SSAB's position as a leader in specialty steels and its goals for continued growth, higher profitability, and more sustainable operations through 2020.

1. Text
Text
SSAB – Global leader
in high-strength steels
Håkan Folin, CFO
April 25, 2018
Nordnet Bank
Helsinki
PUBLIC

2. Agenda
2
SSAB in brief
Strategy and targets 2020
Highlights in Q1/2018 and outlook for
Q2/2018
More sustainable SSAB
Q&A
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3. SSAB in brief
66BILLION
SEK
Net sales in 2017
Steel making since
1878
15,000professionals
in 50 countries
8.8MILLION
TONNES
Annual steel
production capacity:
OUR BUSINESSES:
SSAB Special Steels,
SSAB Europe,
SSAB Americas, Tibnor,
Ruukki Construction
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4. Our businesses
– Leaders in their respective sectors
TIBNOR
Leading Nordic supplier of
steel, other metals and
processing services
SSAB
AMERICAS
Market-leading
North American producer of
quality steel plate and coil
SSAB
SPECIAL STEELS
Global steel and
service partner in
Quenched & Tempered Steels
(Q&T) and
Advanced High-Strength Steels
(AHSS)
SSAB
EUROPE
Leading Nordic-based steel
producer
of high-quality strip, plate and
tube products
RUUKKI CONSTRUCTION
Sustainable building and
construction products and
services in Europe
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5. Strong globally and locally
SSAB main production sites
SSAB production sites
SSAB tubes production
Sales coverage
Luleå, Sweden
Raahe, Finland
Hämeenlinna, Finland
Borlänge, Sweden
Oxelösund, Sweden
Montpelier, Iowa, USA
Mobile, Alabama, USA
Tube production in the
Nordics
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6. Plate North America Special Steels (Q&T) Globally
Flat carbon steels Nordic region Automotive premium (AHSS) Globally
# 1
# 1
~# 5
# 1
SSAB’s four focus areas
2017 market position (#) and shipment volumes
(#1 Martensitic)
6
1,691
537
1,971
1,192
Ktonnes
Ktonnes
KtonnesKtonnes
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7. The high-strength,
high-performance
steel
The renowned
hard and tough
steel for aggressive
environments
The premium
engineering and
tool steel
Hardest steel for
maximum
protection
For harsh weather
and greener living
SSAB
DOMEX / BORON
FORM / WEATHERING
LASER® PLUS
Optimized
families
Safety for
automotive
Strong brands and unique product portfolio
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8. Strategy and targets
2020
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9. Taking the Lead! strategy as a foundation
9
Global leadership
in high-strength
steels
Leading
home market
positions
Leading
value-added
services
Superior customer
experience
Most
flexible
operations
High-performing
organization
Taking
the Lead!
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10. 2020 - Targets
Grow Special Steels
1.35 MTON
2016 2017 Target
1.35
1.0
Enhance premium
mix in SSE
Develop SSAB
Services
Hardox Wearparts
members
Leader North
American plate
Market share (over time)
Automotive
premium 750 KTON
2016 2017 Target
KTON
1 2 3 4 5
442
750
MTON
Share of
Premium products
40%
32 % in 2017 (30%)2016 2017 Target
265
>500
10
1.2
537
360 30%
28 % in 2017
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11. SSAB Special Steels
Focus on growth in high-strength steels and related services
11
ktonShipments 2013-2016 were impacted by
low activity in mining, construction
machinery and lifting segments
Improved growth rate in 2017 and
Q1/2018
Upgrading applications to high-strength steel
Cyclical recovery
Solid demand trend
0%
2%
4%
6%
8%
10%
12%
14%
0
200
400
600
800
1,000
1,200
1,400
2013 2014 2015 2016 2017 Q1/2018,
Rolling 12
months
Shipments EBITDA margin
Shipments and EBITDA-margin
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12. SSAB Special Steels - Growth target 1,350 kton by 2020
World leading
products
Flexible production
capacity
Continuous
improvements
Upgrading Battlefield X-days
Creating the market Global market coverage
Sustainability
Productivity
Infrastructure
12
2016 2017 Target
1.35
1.0
1.2
MTON
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13. SSAB Europe
Focus on improving product mix and growing in automotive segment
13
kton
Challenging market situation during
2013-2015
Chinese imports peaked in 2015
Synergies, cost savings, improved market
conditions (anti-dumping) and better
product-mix has lifted profitability
Continuous improvements and further
strengthening of the product-mix in focus
Solid demand trend 0%
2%
4%
6%
8%
10%
12%
14%
16%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013 2014 2015 2016 2017 Q1/2018,
Rolling 12
months
Shipments EBITDA-margin
Shipments and EBITDA-margin
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14. n/a
n/a
n/a
n/a
Increase premium product share to 40% by 2020
32% in 2017
14
30%
40%
70%
60%
100%
2016
100%
Premium
products
Standard
products
2020
Share of SSAB Europe volumes, % Focus areas for profitable mix growth
Nordic Rest of EU RoW
Automotive
premium
Other premium
products
Tubular
products
Processed products
(CTL / Slitted)
Standard hot
rolled coils and other
standard products
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15. Automotive - growth of AHSS will outperform the overall
market
AHSS
11.6mt
148
410
50
Total AHSS use car body
(kg)
AHSS
MILD
OTHERS
187
195
80
Total AHSS use in car body
(kg)
AHSS
MILD
OTHERS
157
320
60
Total AHSS use in car body
(kg)
AHSS
MILD
OTHERS
Others
8.8mt
AHSS
20.5mt
AHSS
15.7mt
2017 2020 2025
Mild
steel
32.1 mt
Mild
steel
32.0mt
Mild
steel
21.4 mt
Others
6.0 mtOthers
3.9 mt
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16. SSAB automotive focuses on five strategic applications
% of total volume
Bumpers
11%
Car seats
20%
Side impact
beams
9%
Structural
details
57%
Chassis,
wheels &
powertrain
3%
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17. SSAB Americas
Focus on maintaining the leading position and growing market share to 30%
17
kton
Higher import volumes and lower
demand resulted in weak pricing in 2016
Anti-dumping duties introduced for
heavy plate from 12 countries
Improved market situation since
beginning of Q4 2017
Good activity in Energy, Heavy
Machinery, Steel Service Centers
Tariff of 25% to be imposed on steel
imports into the US (Section 232) –
uncertainty around possible exceptions
0%
2%
4%
6%
8%
10%
12%
14%
0
500
1,000
1,500
2,000
2,500
2013 2014 2015 2016 2017 Q1/2018,
Rolling 12
months
Shipments EBITDA margin
Shipments and EBITDA-margin
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18. SSAB Americas’ five key strategic cornerstones
Industry Leadership in Safety
Leading Home Market Position
Superior Customer Experience
Low Cost/High Flexibility Strategy
Market Diversification
The safest steelmaking operations in all of North America,
striving for zero accidents
Number one in the American plate market in terms of
EBITDA margin and market share
Number one in customer service against our peers
based on quarterly third-party surveys
The best cost position versus our peer competitors and
aggressively pursue continuous improvement projects
Increase our premium product offering and geographic
footprint, both by expanding existing customers and winning
new ones
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19. Financial targets
* ArcelorMittal, AK Steel, Nucor, Salzgitter, Tata Steel Europe, ThyssenKrupp, US Steel
Profitability
SSAB aims for an industry-
leading profitability measured
as EBITDA-margin among
comparable peers*
The objective is that the net
debt/equity ratio will not
normally exceed 35%
Capital Structure
Dividend target is 30-50% of
profit after tax
Dividends
#3 (in 2017) 22% (at the end of 2017) Dividend of SEK 1.00 per share
(45% of profit after tax)
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20. Highlights in
Q1/2018 and
outlook for Q2/2018
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21. Q1/2018 – In summary
21
Generally good demand
Good growth in strategic areas
Positive outlook – volume and price
Improved earnings despite operational headwinds
HYBRIT takes the next step
AGM approved dividend of SEK 1.00 per share
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22. 2222
Spot price development: Hot Rolled Coil (HRC) in Northern Europe, Plate in US, HRC in China
Indexed (Jan 2013 =100)
Q1
Northern Europe/HRC
US/Plate
HRC, NorthernEurope
Plate, US
HRC, China
0
20
40
60
80
100
120
140
160
Jan
13
Mar
13
May
13
Jul
13
Sep
13
Nov
13
Jan
14
Mar
14
May
14
Jul
14
Sep
14
Nov
14
Jan
15
Mar
15
May
15
Jul
15
Sep
15
Nov
15
Jan
16
Mar
16
May
16
Jul
16
Sep
16
Nov
16
Jan
17
Mar
17
May
17
Jul
17
Sep
17
Nov
17
Jan
18
Mar
18
Northern Europe US China
Strong demand both in Europe and North America
Good demand continued, low imports,
inventories in balance, spot prices
increasedStrong demand from
both end-users and
distributors, low
inventories, plate spot
prices increased sharply
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23. Strong trend in profitability improvement
23
EBIT of SEK 916m, up SEK 214m compared
with Q1/17
Profitability improvement continued in
Q1/2018, despite some disruptions in
operations and higher raw material costs
Net debt reduced to SEK 11.4bn and
gearing to 21% (32%)
Earnings per share SEK 0.65 (1.49)
Dividend of SEK 1.00 paid in Q2
MSEK
Operating profit, EBIT
-2000
-1000
0
1000
2000
3000
4000
5000
2012 2013 2014 2015 2016 2017 Q1/2018,
Rolling 12
months
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24. Cash flow trend
Potential to further improve
profitability
Well-invested
Reduction of working
capital/sales
Lower interest cost
Tax rate ~20%
24
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
Operating cash flow (Rolling 12 months)
SEKm
Operating cash flow
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25. Stronger balance sheet
Net debt and gearing continued to decrease in Q1/2018
25
SSAB has strengthened its balance sheet
remarkably during 2016-2017
In Q1/2018 net gearing ratio decreased
from 22% at the end of 2017 to below
21%
Net debt decreased by SEK 183m during
Q1/18 and amounted to SEK 11.4bn
%SEKbn
Net debt and net debt/equity ratio
0
10
20
30
40
50
60
2012 2013 2014 2015 2016 2017 Q1/2018
0
5,000
10,000
15,000
20,000
25,000
30,000
Net interest bearing debt, SEKm Net gearing ratio, %
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26. Investments outlook
Production capacity in place to reach 2020
growth targets
Investments kept below depreciation:
SSAB and Ruukki merger
Major strategic investments in 2010-2012
Blast furnaces recently relined
Areas for strategic CAPEX 2018
and going forward:
Automotive high-strength steels
Service expansion
SEK bn
26
Investments
0
0.5
1
1.5
2
2.5
3
2014 2015 2016 2017 2018 and
onwards
Strategic
Maintenance
2.1
2.5
1.3
1.6
~2
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27. SSAB’s outlook for Q2/2018
27
Segment
Volume trend Q2 vs.
Q1
Comment
SSAB Special Steels High level in Q1
SSAB Europe
Transport problem
resolved
SSAB Americas Strong demand
In North America, demand for heavy plate is expected to
remain strong
In Europe, demand for strip and heavy plate is expected to
remain good
The underlying demand for high-strength steels is
anticipated to be good in most markets
The prices realized by the three steel divisions are expected
to be somewhat higher during the second quarter,
particularly for SSAB Americas
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28. More sustainable
SSAB
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29. Long-term options for steel production in the Nordics
29
Blast furnace route
Relinings, coking coal
batteries
HYBRIT-route
Joint venture with
Vattenfall and LKAB
Electric arc furnaces
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30. Initiative for fossil-free steel (HYBRIT)
Joint venture with Vattenfall and LKAB
Successful pre-feasibility study closed in
Q1 2018
Planning and designing of a pilot plant in
Luleå and the iron ore deposits in
Norrbotten
30
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31. Summary - a strong platform to continue profitable growth
31
Top-line growth will be driven by high-strength
steels
Home market leadership, growth and mix
improvement will continue to support
profitability development
Several initiatives on-going to improve
operational performance
Stronger balance sheet and continued strong
cash flow generation
Well-invested to achieve the 2020 targets
Good market situation and outlook
HYBRIT takes the next step
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32. Q&A
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33. PUBLIC