Item 6b Annual General Meeting 2012 Martin Lindqvist, President and - - PowerPoint PPT Presentation

Item 6b

Annual General Meeting 2012 Martin Lindqvist, President and CEO

"A stronger, lighter and more sustainable world"

Together with our customers,we will go further than anyone else in realizing the full value of lighter, stronger and more durable steel products.

Material-tjocklek Weight Material thickness Number of components Laser cutting Number of bendings Weld length 6,000 kg 9.2 mm 100 330 m 185 295 m 3,050 kg 7.3 mm 27 150 m 25 85 m

Recovery– but continued uncertainty

 The recovery on the steel market continued at the

beginning of 2011 and demand increased within most sectors

 The European market in particular weakened during the

second half of the year, leading to cutbacks in production and lower capacity utilization

 The trend in the US and Asia was more stable, and

activity remained on a high level in Latin America

 Prices of raw materials remained high, at the same time

as steel prices weakened towards the end of the year

SSAB in 2011

 Sales increased by 12% to SEK 44.6 billion, and

• perating profit improved to SEK 2.5 billion

 Operational cash flow improved to SEK 2.8 billion  The SSAB Americas and SSAB APAC business areas

performed well

 The earnings trend within SSAB EMEA was affected by

the widespread financial uncertainty in Europe

 Demand for quenched steels continued to increase  During the year, intensive work continued on completing

the strategic capital expenditure projects in Sweden, the US, and China

Sales and earnings

Crude steel production 2011: 5.6 m tonnes (2010: 5.8) Number of employees: 9,107

Sales Operating profit and operating margin

Sales SEK million SEK million Operating profit Operating margin

Sales per business area and shipments

Sales per business area Shipments

Niche products Standard steels ‘000 tonnes

Global leadership and a strong organization

9

Strategies and objectives

 World leader within SSAB’s definition of niche products

– production, process development, innovation, sales

 To increase niche products as a percentage of SSAB’s total

shipments, from 37% in 2011 to 50% in 2015

 To strengthen our presence in Asia; Asia’s share of

shipments of niche products to increase to 20% in 2015

 To ensure a strong position on our domestic markets, viz.

the Nordic region and North America

 To be one of the world’s safest steel companies, with the

most skilled and committed employees

Linköping, December 2011

An important step in achieving objectives

Leadership Innovation Leadership Productivity Industrial Leadership

2012: New investment projects brought into operation

 A new quenching line for quenched steel production brought into

• peration in Mobile, Alabama

 In Borlänge, commencement of commercial production of quenched

steels

 Investments to produce thick heavy plate in Oxelösund  A new finishing line in Kunshan

 At the beginning of 2012,the new quenching

line in Borlänge was brought into commercial

• peration

 Initial capacity of 300,000 tonnes  Installation of equipment was carried out in the

summer of 2011, on time and within budget

 New, thinner Hardox 450 has been produced

with good results

 The investment broadens the total offering and

contributes to SSAB’s unique product portfolio

Production of quenched steels in Borlänge

12 Linköping, December 2011

13 Interim results Q4 2011 - February 10, 2012

Increased quenched steel capacity in Mobile

 A new line for the production of

quenched steels will be brought into

• peration during the second quarter of

2012

 Quenched steel capacity will increase

from~ 100,000 to ~300,000 tonnes

 The investment amounts to SEK 1.5

billion

 Hardox wear steel has been produced in

Mobile since 2011; in 2012, production will commence of the Weldox structural steel

 Strengthens SSAB America’s position

within quenched steels

New finishing line in Kunshan

 As from 2012, SSAB APAC is able to

customize and finish plate at the new line in Kunshan

 Mother plates are delivered from

Oxelösund and Mobile

 Shipment times are cut and improved

logistics result in reduced transportation costs

 The new R&D center is in operation and

will expand its activities in 2012

 The investments amount to SEK 300

million

March 2012 14

High strength steels; advantages for customers and the environment

 Increased strength  Reduced weight  Lower fuel consumption  Longer productive lifespan  Higher load capacity

Winner of Swedish Steel Prize 2011

Environmental work during the year

 Work to increase materials efficiency and reduce waste  Energy recycling in Finspång  Merox operations established in Luleå  Reduced dust and noise in Montpelier andOxelösund  System for monitoring and reporting carbon dioxide emissions in SSAB Americas  Within ULCOS, construction of a demonstration plant began; the aim is to cut by

50% carbon dioxide emissions in conjunction with steel production

 Application regarding new emission rights within the scope of the EU’s 2013-2020

trading period

Corporate social responsibility



In 2011, too, SSAB’s steelworks in the US distinguished themselves as two of the absolutely safest steelworks in North America



The percentage of female managers is almost on par with the percentage of female employees



Purchasing coordination work has continued



A special CSR position was established during the year, which reports to the Group Executive Committee



In 2011, too, SSAB was awarded Green Cargo’s Climate Certificate



SSAB supports the UN’s Global Compact

% female employees % female managers

Short-term prospects

 Generally, uncertainty continues to prevail on the

markets, particularly in Europe

 The recovery is continuing in the US, with announced

price increases for steel

 Asia remains stable; solid activity in Latin America  Demand in Europe is more cautious; a degree of

inventory restocking is expected during the first half of the year

 Contract prices in Europe in Q1-12 were lower than in

Q4-11

18 March 2012

A strong platform for the future

 Increased focus on Market and Sales, as well as R&D  SSAB EMEA has initiated an efficiency improvement

program to increase flexibility in production and the sales organisation

 The new quenching line in Borlänge broadens the

product portfolio and offering to customers as from 2012

 The new quenching line in Mobile strengthens our

position within quenched steels in North and Latin America

 The finishing line in Kunshan will result in significantly

shorter lead times for customers in China

 SSAB has a strong platform for the future

19 Linköping, December 2011