Year-end report: Strong cash flow despite weak European market

The fourth quarter

• Revenue was SEK 26,469 (30,138) million
• Adjusted operating result was SEK 2,400 (3,768) million
• Adjusted earnings per share were SEK 1.86 (3.18)
• Net cash was SEK 18.2 (14.3) billion
• The Board proposes a dividend of SEK 5.00 (8.70) per share

Full-year 2023

• Revenue was SEK 119,489 (128,745) million
• Adjusted operating result was SEK 16,467 (29,283) million
• Earnings per share was SEK 12.67 (-10.57)

Comments by the CEO

SSAB's adjusted operating result for the fourth quarter of 2023 amounted to SEK 2,400 (3,768) million and the adjusted operating result for the full year was SEK 16.5 (29.3) billion. The decrease compared to last year's record high level was primarily due to a weaker market and lower steel prices, especially in Europe. SSAB continues to generate strong cash flow, with operating cash flow for the full year amounting to SEK 21.5 (22.7) billion. Against the background of this good financial position, we started to buy back shares during the fourth quarter and the Board proposes a dividend of SEK 5.00 (8.70) per share. During the year, SSAB further consolidated its leadership in the green transition in the steel industry and launched the unique steel, SSAB Zero.

SSAB Special Steels had an adjusted operating result of SEK 847 (1,369) million and an operating margin of 12% (16%) during the fourth quarter. The performance and high quality of SSAB Special Steels' unique products provide added value for our customers and this in turn creates conditions for more stable prices over the business cycle.

SSAB Americas' adjusted operating result for the fourth quarter was SEK 1,681 (2,725) million and the operating margin was 25% (36%). SSAB Europe had an adjusted operating result of SEK 165 (-229) million and an operating margin of 2% (-2%). All steel divisions had costs for planned maintenance outages in the fourth quarter.

Safety performance continued to improve and LTIF decreased to 0.87 (1.06) in 2023.

Due to the weak market, both Tibnor and Ruukki Construction has implemented cost saving programs, which include reduction of personnel. SSAB Europe adjusted production, cost and staffing and these measures will continue to a certain extent during the first quarter of 2024, as demand for products to the construction segment continues to be low. Also in SSAB Special Steels' markets, customers have adopted a more cautious approach, especially in Europe. The heavy plate market price in North America stabilized at the end of the fourth quarter.

There was increased interest in products with no carbon dioxide emissions during 2023 and we delivered more than 50,000 tonnes of SSAB Zero, a steel without Scope 1 and 2 emissions. Interest increased strongly not only in Europe, but also in the USA. We have started the construction of the electric arc furnace (EAF) in Oxelösund, a key item for fossil-free steelmaking. At the end of January 2024, the ruling on the granted concession for the power lines to Oxelösund gained legal force and the project continues according to plan.

SSAB invites you to a presentation of the Year-end report of 2023 at 9.30am CET on Wednesday, January 31, 2024.

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.

Link to webcast: https://edge.media-server.com/mmc/p/2twb9ckz

You can also participate in the briefing by telephone. Click on the link below and complete the online registration form. You can chose if you want to dial in or click “Call Me” for a call-back.

Link to teleconference: https://register.vevent.com/register/BI65ff6f74470a47be943ba8a67319870e

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 CET on January 31, 2024.

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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