Presentation of the Q3/2021 resultsMartin Lindqvist, President & CEOHåkan Folin, CFO

Oct 25, 2021

Agenda

2

►Q3/2021 in brief

►Financials

►Outlook and summary

►Q&A

Nytt foto

Q3/2021 in brief

3

Another record quarter for SSABSolid internal performance in a strong market

4

Improved safety performance SSAB Special Steels growth

Improved product mix, SSAB Europe Record high earnings

6.14.7 4.0

1.9

18Q3 19Q3 21Q320Q3

LTIF

1,600300

-973

5,800

18Q3 19Q3 21Q320Q3

Shipments (ktonnes)

Operating profit (SEK m)

Premium share

320 299259

348

20Q318Q3 21Q319Q3

43%

2018

39%

2019 2020

38%

2021 YTD

36%

Leading force in the green transitionProven fossil-free value chain

5

Fossil-free steel to Volvo Group –load carrier for mining and quarrying

World’s first fossil-free plates rolled in Oxelösund

A number of new strategic agreements

Foto Ox

Operating profit by division – Record levelsSEK million

6

717528

352

-290

450 469

34

518

914

1,1751,006

20Q319Q1 19Q2 20Q119Q419Q3 20Q2 20Q4 21Q1 21Q2 21Q3

SSAB Special Steels

SSAB Europe

SSAB Americas

34766

-480 -609 -566 -631

83

758

1,512

2,524

20Q419Q1 19Q419Q2 19Q3 20Q320Q1 20Q2 21Q1 21Q2 21Q3

0

917 888528

-58

115 6

-395

18258

1,084

1,871

20Q1 20Q319Q1 19Q319Q2 19Q4 20Q2 20Q4 21Q1 21Q2 21Q3

Tibnor38 29 2

-39

12 29 6 48

218

449515

20Q319Q1 20Q219Q319Q2 20Q119Q4 20Q4 21Q1 21Q2 21Q3

Ruukki Construction

-14

95 134 67 1186 145

72 48162 229

19Q1 19Q2 20Q219Q3 19Q4 20Q1 20Q3 20Q4 21Q1 21Q2 21Q3

SSAB Special SteelsHigh level of shipments and earnings

7

► Strong underlying demand – planned maintenance and seasonal slowdown in Europe in Q3

► Shipments at 348 ktonnes – record for a Q3

− Up 34% vs. Q3/20 but -10% vs. Q2/21

► EBIT of SEK 1,006m (34m) and EBIT margin rose to 17% (1%)

− Better prices and higher volumes

− Stable production

► SSAB Special Steels assumed responsibility for the Mobile steel mill in Q3 to increase focus on high-strength steels

717528

352

-290

450 469

34

518

9141,175

1,006

19Q319Q1 19Q2 20Q319Q4 20Q420Q1 20Q2 21Q1 21Q2 21Q3

Operating profit/loss, SEK million

Shipments, ktonnes

338 339 299249

305 266 259 297376 388 348

20Q1 21Q319Q319Q219Q1 19Q4 20Q2 20Q3 21Q220Q4 21Q1

SSAB EuropeStrong market conditions, seasonal slowdown in Q3

8

► Higher share of premium

− Shipments up 6% vs. Q3/20 but -19% vs. Q2/21

− Premium share of 43% YTD and 45% in Q3

► EBIT rose to SEK 2,524m (-631m) – record level

− Higher prices

− Higher volume and better capacity utilization

− Planned maintenance

► EBIT margin increased to 23% (-10%)

Operating profit/loss, SEK million

Good development for Automotive AHSS strategy (y/y growth in %)

34766

-480 -609 -566 -631

83

758

1,512

2,524

20Q219Q1 21Q119Q2 20Q3 20Q419Q419Q3 20Q1 21Q2 21Q3

0

-8-14

40

5

-8

44

20202019 1-8/21

European industry volume, Automotive strip (Eurofer data)

SSAB European volume, Automotive AHSS

SSAB AmericasSignificantly higher prices

9

► Controlled order intake enables good price realization

► Good demand, higher shipments

− Up 5% vs. Q3/20 but down 2% vs. Q2/21

► EBIT rose to SEK 1,871m (-395m) – record level

− Significantly higher prices

► EBIT margin increased to 31% (-15%)

917 888528

-58

115 6

-395

18258

1,084

1,871

20Q119Q319Q1 20Q419Q2 19Q4 20Q2 20Q3 21Q1 21Q2 21Q3

3110

-14-26 -30 -27 -22

-11

16

62

121

19Q4 20Q319Q319Q1 19Q2 20Q1 20Q2 20Q4 21Q1 21Q2 21Q3

Change in realized prices y/y, %

Operating profit/loss, SEK million

TibnorAnother strong quarter, despite seasonal slowdown

10

► Competitive position improved significantlythrough completed efficiency program – SEK 200m on annual basis

► Revenue was up by 75% vs. Q3/20

► EBIT rose to SEK 515m (6m), EBIT margin 17% (0%)

− Higher volumes

− Better prices

− Inventory gains

38 29 2

-39

12 29 648

218

449515

20Q4 21Q119Q1 19Q2 19Q3 20Q219Q4 20Q1 20Q3 21Q2 21Q3

2.3 2.52.2 2.2 2.4

2.0 1.8 2.0

2.73.2 3.1

19Q4 21Q319Q1 19Q2 20Q319Q3 20Q1 20Q2 20Q4 21Q1 21Q2

Operating profit/loss, SEK million

Revenue, SEK billion

Ruukki ConstructionContinued improvement of operating profit

11

► Solid performance with full focus on productbusiness

► Revenue increased by 27% vs. Q3/20

► EBIT improved to SEK 229m (145m), EBIT margin 13% (10%)

− Better volumes in both Roofing and Envelopes

-14

95134

67

11

86

145

7248

162

229

21Q119Q419Q1 19Q2 20Q2 20Q319Q3 20Q420Q1 21Q2 21Q3

1.3

1.7 1.8 1.81.5 1.4 1.4

1.2 1.1

1.61.8

20Q2 20Q419Q419Q219Q1 19Q3 20Q1 20Q3 21Q1 21Q2 21Q3

Operating profit/loss, SEK million

Revenue, SEK billion

Financials

12

Strong earnings despite planned maintenance and seasonality

13

Sales

EBITDA and EBITDA margin2

Shipments1

EBITDA per tonne delivered steel21) Including the steel operations: Special Steels, Europe and Americas

2) Excluding items affecting comparability

0

5,000

10,000

15,000

20,000

25,000

30,000

18Q

1

18Q

2

18Q

3

18Q

4

19Q

1

19Q

2

19Q

3

19Q

4

20Q

1

20Q

2

20Q

3

20Q

4

21Q

1

21Q

2

21Q

3

2018 2019 2020 2021

SEK

mill

ion

-5.0 %

0.0 %

5.0 %

10.0 %

15.0 %

20.0 %

25.0 %

30.0 %

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

18Q

1

18Q

2

18Q

3

18Q

4

19Q

1

19Q

2

19Q

3

19Q

4

20Q

1

20Q

2

20Q

3

20Q

4

21Q

1

21Q

2

21Q

3

2018 2019 2020 2021

SEK

mill

ion

EBITDA EBITDA %

-5000

5001,0001,5002,0002,5003,0003,5004,0004,5005,000

18Q

1

18Q

2

18Q

3

18Q

4

19Q

1

19Q

2

19Q

3

19Q

4

20Q

1

20Q

2

20Q

3

20Q

4

21Q

1

21Q

2

21Q

3

2018 2019 2020 2021SE

K/t

on

ne

0

500

1,000

1,500

2,000

18Q

1

18Q

2

18Q

3

18Q

4

19Q

1

19Q

2

19Q

3

19Q

4

20Q

1

20Q

2

20Q

3

20Q

4

21Q

1

21Q

2

21Q

3

2018 2019 2020 2021

kto

ns

Change in operating profit Q3/21 vs. Q3/20

SEKm

14

-973

590

-2,150

Var COGS

-120

8,660

2020 Q3 Price Volume

-850

Fixed costs FX

585

2021 Q3Capacity utilization

58

Other

5,800

Mainly SSAB Europe and

SSAB Americas

Higher rawmaterial costMainly Special

Steels

Higheractivity level

Change in operating profit Q3/21 vs. Q2/21

SEKm

15

4,083

5,8004,680 -30

Var COGS

32

-1,510

Price

-790

2021 Q2 Volume Fixed costs FX

-620

Capacity utilization

Other 2021 Q3

-45

Mainly SSAB Europe and

SSAB AmericasHigher raw

material cost

Mainly SSAB Europe

Plannedmaintenance

Effect from vacationreserve counteracted by

higher performancerelated wages

2021 2020 2021 2020 2020

SEK millions Q3 Q3 Jan-Sep Jan-Sep Full-year

Operating profit before depreciation/amortization 6,582 -66 14,341 1,925 3,364

Change in working capital -2,693 699 -4,458 -465 1,570

Maintenance expenditures -461 -332 -1,030 -1,016 -1,622

Other 49 11 -35 87 147

Operating cash flow 3,478 313 8,817 530 3,460

Financial items -125 -164 -302 -460 -545

Taxes -322 3 -712 -178 -56

Cash flow from current operations 3,031 151 7,803 -108 2,859

Strategic expenditures in plants and machinery -218 -75 -526 -467 -582

Acquisitions of shares and operations - -43 -103 -196 -231

Divestments of shares and operations - -1 - 105 143

Cash flow before dividend 2,812 32 7,174 -667 2,189

Dividend, non-controlling interest -2 -4 -9 -8 -9

Acquisitions of shares, non-controlling interest - - -127 - -

Net cash flow 2,810 27 7,039 -675 2,180

Net debt at beginning of period -6,461 -12,782 -10,278 -11,696 -11,696

Net cash flow 2,810 27 7,039 -675 2,180

Revaluation of liabilities against equity 1) -19 168 -219 177 778

Other 2) 300 -340 88 -731 -1,540

Net debt at the end of period -3,370 -12,926 -3,370 -12,926 -10,278

Strong net cash flow

Significant reduction in net debt

17

►Net debt decreased to SEK 3.4bn (12.9bn) at the end of Q3/21

►Net gearing was 5% (22%)

►2015-2017 excluding IFRS 16 (impact of around SEK 2bn)

0

5,000

10,000

15,000

20,000

25,000

2015 2016 2017 2018 2019 2020 2021 Q3

0

10

20

30

40

50

60

Net interest bearing debt, SEKm Net gearing ratio, %

Well-balanced maturity profile

SEKm

SEK 3.4bn

Cash

Back-upfacilities

18

Maturity profile Q3/2021

►Duration of the loan portfolio was 6.7 (4.9) years

►Liquid assets and committed credit lines at SEK 18.1bn – corresponds to 21% of rolling 12-month revenue

►Most maturities in 2021 refer to commercial papers

►Sustainability-linked bond of SEK 2bn issued in Q2

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Cashand

back-upfacilities

2021 2022 2023 2024 2025 2026+

Cash needs of the business

19

0.5

2.2

2.8

Capex (maintenance and strategic)

3.0-3.5

0.1

2020 2021F

Net interest

Taxes and other

4.8-5.3►Total cash needs* estimated at SEK 4.8-5.3bn

in 2021 – unchanged compared to previousforecast

►Higher strategic capex vs. 2020:

− Capacity expansion of Q&T in Mobile

− Start of Oxelösund conversion

► Interest paid expected to be relatively stable

►Taxes paid will normalize**

*Cash needs defined as capex, interest paid and taxes paid. Excluding working capital

**2019-level used as reference point, will depend on earnings in FY 2021

Higher purchase prices for iron ore and coking coal

►Average coking coal purchase price in Q3/21 was 34% higher in terms of SEK (31% in USD) vs. Q2/21

Coking coal

Iron ore

► Average pellet purchase price in Q3/21 was 13% higher in terms of SEK (+9% in USD) vs. Q2/21

SSAB’s purchase price, coking coal and iron ore

Indexed

20

0

50

100

150

200

250

300

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21

Iron ore (SSAB purchase price, indexed) Coal (SSAB purchase price, indexed)

Scrap spot prices stable

Scrap spot price

USD/gross ton

Source: AMM21

►SSAB’s average purchase price for scrap in Q3/21 was 1% higher (in terms of USD) vs. Q2/21

►Slight decrease in October

0

50

100

150

200

250

300

350

400

450

500

AMM Chicago #1HM

Major planned maintenance outages in 2021

SEKm Q1/21 Q2/21 Q3/21 Q4/21 2021 2020 2019

SSAB Special Steels

- - 440 150 590 250 300

SSAB Europe - - 270 140 410 335 420

SSAB Americas

- - - 265 265 220 415

Total - - 710 555 1,265 805 1,135

Note: The estimates shown in table includes direct maintenance cost and cost of lower capacity utilization (under absorption), but excludes lost margins.

22

► Total maintenance costs for 2021 expected to be SEK 1,265m

► As of Q3/21, Mobile is part of SSAB Special Steels and maintenance cost will be shared between SSAB Special Steels and SSAB Americas

► Costs in 2020 were lower than normal – more use of our own resources, due to a lower level of production

Outlook and summary

23

Outlook for Q1 for SSAB’s key customer segments

Segment Demand Comments

Heavy Transport Heavy truck production impacted by shortage of semi-conductors

Improvement in rail car in the US

Automotive Good end-user demand – shortage of semi-conductors

Underlying structural growth in AHSS

Construction Machinery Good level in main markets, except China

Material Handling Strong demand from mining

Energy Modest improvement in oil and gas

Good activity within wind power and transmission

Construction Good underlying demand, seasonal slowdown in Q4

Service Centers Inventory more normal in Europe. Hesitation due to price level24

WeakHealthyGood

SSAB’s outlook for main customer segments Q4/2021

SSAB’s outlook for Q4/2021

►Demand for steel is estimated to be good, however, in Europe demand is expected to be impacted by semiconductor shortage and seasonal slowdown towards the end of the year

− Global demand for high-strength steel is estimated to be strong

25

Volume and pricing outlook

Q4 2021 vs. Q3 2021

Shipments Realized prices

SSAB Special Steel Stable Higher

SSAB Europe Higher Somewhat higher

SSAB Americas Significantly lower Significantly higher

Definitions: Significantly lower (>10%), Lower (5-10%), Somewhat lower (0-5%), Stable (~0%), Somewhat higher (0-5%), Higher (5-10%), Significantly higher (>10%)

Summary

►Solid internal performance in a strong market

►Record earnings

►Continued strong cash flow generation

►Significant reduction in net debt

►Leading position in fossil-free steel

− First steel rolled in Oxelösund

− Shipments to Volvo Group

− Proven fossil-free value chain

26

Questions & Answers

27

Appendix

28

Order intake

29

SSAB Europe, monthly order intake, tonnes

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000O

ct-2

0

Jul-

20

Ap

r-20

May

-20

Jun

-20

Au

g-20

Sep

-20

No

v-20

Dec

-20

Jan

-21

Mar

-21

Feb

-21

Ap

r-21

May

-21

Jun

-21

Jul-

21

Au

g-21

Sep

-21

► Q4/21 is expected to be fully booked

► Some uncertainty regarding the impact of component shortages and the extent of the seasonal slowdown

Debt cost and duration

%

Debt portfolio duration and interest rate

►Duration of the loan portfolio was 6.7 (4.9) years

►Averaged fixed interest term was 1.2 (0.9) years

►Average interest rate was 2.17% (1.85%)

Years

30

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2018Q1

2018Q2

2018Q3

2018Q4

2019Q1

2019Q2

2019Q3

2019Q4

2020Q1

2020Q2

2020Q3

2020Q4

2021Q1

2021Q2

2021Q3

2018 2019 2020 2021

Avg. interest rate Avg. duration (rhs)

SSAB's climate goals approved by the Science Based Targets initiative

31

►SSAB is committed to reducing its greenhouse gas (CO2e) emissions by 35% by 2032 (based on 2018 figures).

− The goal applies to both direct and indirect emissions (Scope 1 and 2)

− In line with the objective of keeping global warming well below 2°C

►Objective is scientifically based and in line with the Paris Agreement