Year-end report 2022: Record full-year earnings

The fourth quarter

• Revenue was SEK 30,138 (27,337) million
• Adjusted operating result was SEK 3,768 (6,961) million
• Adjusted earnings per share were SEK 3.18 (5.30)
• Goodwill impairment of SEK 33.3 billion, reported as an item affecting comparability
• Net cash was SEK 14.3 (2.3) billion
• The Board proposes a dividend of SEK 8.70 (5.25) and given SSAB’s strong financial position, an authorization to buy back up to 10% of all outstanding SSAB shares will be proposed to the AGM

Full-year 2022

• Revenue was SEK 128,745 (95,891) million
• Operating result was SEK -4,355 (18,837) million including the goodwill impairment of SEK 33.3 billion and adjusted operating result was SEK 29,283 (18,837) million
• Earnings per share was SEK -10.57 (14.24) and adjusted earnings per share was SEK 22.38 (14.24)

SSAB’s adjusted operating result for the full-year 2022 was SEK 29.3 (18.8) billion, the highest in the company’s history. For the fourth quarter, the adjusted operating result was SEK 3.8 (7.0) billion. The net cash flow was strong, SEK 6.7 billion for the quarter, supported by release of working capital. SSAB Europe adjusted production to a cautious European steel market and brought forward maintenance. SSAB consolidated its position as leader in the green transition in the steel industry by making significant progress in the development of fossil-free steelmaking during 2022 and by delivering around 500 tonnes of fossil-free steel to strategic customers.

SSAB Special Steels had a planned maintenance outage during the fourth quarter and adjusted operating result was SEK 1,386 (1,540). The operating margin decreased to 16.6% (23.5%). SSAB Americas’ adjusted operating result increased to SEK 2,726 (2,188) million and the operating margin rose to 36.1% (35.6%). SSAB’s strategy with leading positions in special steel and US heavy plate compensated for a weak European market, which together with maintenance meant that SSAB Europe’s adjusted operating result decreased to SEK -228 (3,301) million.

Safety performance continued to improve and Lost Time Injury Frequency (LTIF) decreased to 1.06 (1.80) during the full-year 2022.

The European market remained weak during the fourth quarter and SSAB adjusted production and brought forward maintenance of one of the blast furnaces in Raahe. The assessment is that the market has stabilized, although there is continued uncertainty, and SSAB re-started the blast furnace at the start of this year. 

During the fourth quarter, SSAB made a goodwill impairment of SEK 33.3 billion, which includes all the goodwill related to the acquisitions of Ipsco and Rautaruukki, completed in 2007 and 2014, respectively. The impairment is reported as an item affecting comparability and did not impact the cash flow. The background of the impairment was increased interest rates and a more prudent method in the impairment test.

SSAB has a strong financial position and the Board proposes a dividend of SEK 8.70 (5.25) per share for the year ended 2022.

The Board will propose an authorization for a share buyback program to the AGM.

During 2022, SSAB made further progress on the journey towards fossil-free steelmaking. Feasibility studies for cost-effective mini-mills in Luleå and Raahe are ongoing and the joint venture Hybrit continued to develop the technology for fossil-free ironmaking using hydrogen. During the fourth quarter, SSAB became the only steel company to be included in the Dow Jones Sustainability Europe Index 2022.

SSAB invites you to a presentation of the Year-end report of 2022 at 9.30am CET on Friday, January 27, 2023. 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.

Venue and time of briefing: World Trade Center (WTC) Stockholm, Kungsbron 1, Conference room Manhattan, 9.30am CET.

Teleconference numbers:
Sweden:                        +46 8 505 100 30
United Kingdom:         +44 121 281 8004
United States:              +1 718 705 8796

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/c8ufasci

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 27, 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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