Comments by the CEO – continued strong earnings trend

SSAB reports a continued strong earnings trend for Q3 2021. High steel prices in combination with a strong and stable internal performance saw us exceed the record in Q2, despite planned maintenance outages. During the quarter, SSAB made the world’s first fossil-free steel and delivered it to Volvo Group. We also signed a number of new collaboration agreements for fossil-free steel, including one with Mercedes Benz.

Operating profit for Q3 2021 increased to SEK 5,800 (-973) million, a new record for a single quarter. Net cash flow was strong and amounted to SEK 2.8 (0) billion and net debt decreased to SEK 3.4 billion, equating to a net debt/equity ratio of 5% (22%).

SSAB Special Steels’ shipments were 348 (259) thousand tonnes. Operating profit increased to SEK 1,006 (34) million and the operating margin to 17% (1%). Our special steels support, among other things, our customers’ sustainability strategies and their aim to improve productivity and sustainability performance in machinery and other equipment.

SSAB Europe’s result increased to SEK 2,524 (-631) million and the operating margin to 23% (-10%). The upswing was primarily explained by a high price level. SSAB Americas’ result increased to SEK 1,871 (-395) million, driven by rising market prices for heavy plate. The operating margin increased to 31% (-15%).

The spread of Covid-19 is at a low level at SSAB’s production sites and society’s restrictions have largely been phased out. SSAB follows national and local recommendations in its operations. We have made progress with our focus on safety work and lost time injury frequency (LTIF) has decreased to 1.9 (4.0).

Looking ahead, we expect Q4 to show good development, partly because there is a certain lag in the realization of our steel prices, compared to the spot market. However, there is uncertainty in demand on the European market, among other things due to the shortage of semiconductors, which primarily affects the vehicle industry.

During the year, SSAB has strengthened its position as the driving force in the green transition in the steel industry. For the first time ever, iron ore has been reduced at a pilot scale using 100% fossil-free hydrogen. During Q3, the first fossil-free steel was rolled and delivered to Volvo Group. The great interest shown by customers means that we are exploring the prerequisites to convert to fossil-free production earlier than the original plan. However, this requires that society can ensure power transmission, effective permit processes and a level playing field within Europe and beyond.

Invitation to SSAB’s third quarter 2021 results briefing

SSAB invites you to a presentation of the report for the third quarter of 2021 at 9.30am CEST on Monday, October 25, 2021.

The report for the third quarter of 2021 will be presented by SSAB’s President and CEO Martin Lindqvist, and CFO Håkan Folin.

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.

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

Teleconference numbers:
Sweden:                        +46 856 6426 51
United Kingdom:         +44 3333 0008 04
United States:              +1 8558 5706 86

Conference ID: 65457927#

Link to webcast: https://edge.media-server.com/mmc/p/kf783onw

For further information, please contact:                               

Investor Relations: Per Hillström, Head of IR, [email protected], +46 70 2952 912

Media: Viktoria Karsberg, Head of Corporate Identity and Group Communications,
[email protected], +46 8 4545 734

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 October 25, 2021.