Interim report Q1 2023: Good results for Special Steels and Americas, but weaker market in Europe

The first quarter

• Revenue was SEK 31,904 (31,575) million
• Operating result was SEK 4,733 (8,162) million
• Earnings per share were SEK 3.59 (5.84)
• Net cash was SEK 15.6 (5.7) billion
• Launch of SSAB Zero – based on recycled steel and no fossil carbon emissions

Comments by the CEO

SSAB’s operating result for the first quarter of 2023 was SEK 4,733 (8,162) million. SSAB Special Steels and SSAB Americas continued with strong performance. A weaker European market with lower prices but higher raw material costs, compared to the first quarter of 2022, impacted SSAB Europe, Tibnor and Ruukki Construction, which was also affected by weak construction activity. Compared with the adjusted fourth quarter of 2022, the result increased by SEK 965 million. Demand improved and we increased production with better capacity utilization and higher shipments, which compensated for lower realized prices. SSAB launched a new steel during the quarter, SSAB Zero, with 0.0 kg emissions of carbon dioxide equivalent. SSAB Zero is based on recycled steel, processed and transported with fossil-free energy and is the world’s first commercial product of its kind.

SSAB Special Steels’ operating result* was SEK 2,094 (2,086) million and the operating margin was 24.4% (26.4%). SSAB Americas operating result was SEK 2,675 (2,991) million and the operating margin was 34.7% (40.1%). SSAB Europe’s operating result fell to SEK 0 (3,249) million.

Safety performance continued to improve and Lost Time Injury Frequency (LTIF) decreased to 0.92 (1.60) in the first quarter.

Demand in Europe improved during the quarter compared with the weak market during the second half of last year. We increased production and shipments following the fourth quarter’s planned maintenance and steel slab production in Raahe was record high in March. Market prices rose, which affects SSAB after a certain delay. The heavy plate market in North America continues to be strong and market prices stabilized during the quarter. Demand for high-strength steel is good on several markets. There is uncertainty regarding the second half of the year against a background of higher interest rates and high inflation, especially in Europe.

*) Adjusted operating result is applied for comparative information, no items affecting comparability were reported in the first quarter of 2023.

Updated financial targets were published in conjunction with the Capital Markets Day at the end of March. SSAB also launched new growth targets for high-strength steel and other premium products. The plan is that investments in the Nordic production system will enable us to reach the growth targets while reducing production costs, increasing flexibility and largely eliminating all carbon dioxide emissions.

There is strong demand for steel without any carbon footprint and SSAB launched a new steel which reduces customers’ indirect emissions. This is the world’s first product of its kind, with 0.0 kg emissions of fossil carbon dioxide equivalents per kg of steel. SSAB Zero is based on recycled steel and we estimate total deliveries of around 40,000 tonnes during 2023 to leading customers like Volvo Group.

SSAB invites you to a presentation of the report for the first quarter of 2023 at 9.30am CEST on Wednesday, April 26. The report will be presented by SSAB’s President and CEO Martin Lindqvist and CFO Leena Craelius.

The press conference will be held in English and live webcast on SSAB’s website www.ssab.com. You can also participate in the briefing by telephone.

Teleconference numbers:
Sweden:                        +46 8 505 100 30
United Kingdom:         +44 121 281 8004
United States:              +1 718 7058796

Please ask the operator to be connected to “SSAB”. There is no conference ID or code required.

Link to webcast: https://edge.media-server.com/mmc/p/vg6zwusq

For further information, please contact:
Per Hillström, Head of Investor Relations, per.hillstrom@ssab.com, phone: +46 702 95 29 12
Viktoria Karsberg, Head of Corporate Identity and Group Communications,
viktoria.karsberg@ssab.com, phone: +46 72 233 5288

This information is inside information that SSAB AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that SSAB AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7.30am CEST on April 26, 2023.

SSAB is a Nordic and US-based steel company. SSAB offers value added products and services developed in close cooperation with its customers to create a stronger, lighter and more sustainable world. SSAB has employees in over 50 countries. SSAB has production facilities in Sweden, Finland and the US. SSAB is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki. www.ssab.com.
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