Item 6b Annual General Meeting 2012 Martin Lindqvist, President and CEO
"A stronger, lighter and more sustainable world" Together with our customers,we will go further than anyone else in realizing the full value of lighter, stronger and more durable steel products.
Material-tjocklek Weight Material Number of Laser Number of Weld thickness components cutting bendings length 6,000 9.2 mm 100 330 m 185 295 m kg 3,050 7.3 mm 27 150 m 25 85 m kg
Recovery– but continued uncertainty The recovery on the steel market continued at the beginning of 2011 and demand increased within most sectors The European market in particular weakened during the second half of the year, leading to cutbacks in production and lower capacity utilization The trend in the US and Asia was more stable, and activity remained on a high level in Latin America Prices of raw materials remained high, at the same time as steel prices weakened towards the end of the year
SSAB in 2011 Sales increased by 12% to SEK 44.6 billion, and operating profit improved to SEK 2.5 billion Operational cash flow improved to SEK 2.8 billion The SSAB Americas and SSAB APAC business areas performed well The earnings trend within SSAB EMEA was affected by the widespread financial uncertainty in Europe Demand for quenched steels continued to increase During the year, intensive work continued on completing the strategic capital expenditure projects in Sweden, the US, and China
Sales and earnings Sales Operating profit and operating margin SEK million SEK million Operating profit Sales Operating margin Crude steel production 2011: 5.6 m tonnes (2010: 5.8) Number of employees: 9,107
Sales per business area and shipments Sales per business area Shipments ‘000 tonnes Standard steels Niche products
Global leadership and a strong organization
Strategies and objectives World leader within SSAB’s definition of niche products – production, process development, innovation, sales To increase niche products as a percentage of SSAB’s total shipments, from 37% in 2011 to 50% in 2015 To strengthen our presence in Asia; Asia’s share of shipments of niche products to increase to 20% in 2015 To ensure a strong position on our domestic markets, viz. the Nordic region and North America To be one of the world’s safest steel companies, with the most skilled and committed employees Linköping, December 2011 9
An important step in achieving objectives Leadership Leadership Industrial Innovation Productivity Leadership
2012: New investment projects brought into operation A new quenching line for quenched steel production brought into operation in Mobile, Alabama In Borlänge, commencement of commercial production of quenched steels Investments to produce thick heavy plate in Oxelösund A new finishing line in Kunshan
Production of quenched steels in Borlänge At the beginning of 2012,the new quenching line in Borlänge was brought into commercial operation Initial capacity of 300,000 tonnes Installation of equipment was carried out in the summer of 2011, on time and within budget New, thinner Hardox 450 has been produced with good results The investment broadens the total offering and contributes to SSAB’s unique product portfolio Linköping, December 2011 12
Increased quenched steel capacity in Mobile A new line for the production of quenched steels will be brought into operation during the second quarter of 2012 Quenched steel capacity will increase from~ 100,000 to ~300,000 tonnes The investment amounts to SEK 1.5 billion Hardox wear steel has been produced in Mobile since 2011; in 2012, production will commence of the Weldox structural steel Strengthens SSAB America’s position within quenched steels Interim results Q4 2011 - February 10, 2012 13
New finishing line in Kunshan As from 2012, SSAB APAC is able to customize and finish plate at the new line in Kunshan Mother plates are delivered from Oxelösund and Mobile Shipment times are cut and improved logistics result in reduced transportation costs The new R&D center is in operation and will expand its activities in 2012 The investments amount to SEK 300 million March 2012 14
High strength steels; advantages for customers and the environment Increased strength Reduced weight Lower fuel consumption Longer productive lifespan Higher load capacity Winner of Swedish Steel Prize 2011
Environmental work during the year Work to increase materials efficiency and reduce waste Energy recycling in Finspång Merox operations established in Luleå Reduced dust and noise in Montpelier andOxelösund System for monitoring and reporting carbon dioxide emissions in SSAB Americas Within ULCOS, construction of a demonstration plant began; the aim is to cut by 50% carbon dioxide emissions in conjunction with steel production Application regarding new emission rights within the scope of the EU’s 2013-2020 trading period
Corporate social responsibility In 2011, too, SSAB’s steelworks in the US distinguished themselves as two of the absolutely safest steelworks in North America The percentage of female managers is almost on par with the percentage of female employees Purchasing coordination work has continued A special CSR position was established during the year, which reports to the Group Executive Committee % female employees % female managers In 2011, too, SSAB was awarded Green Cargo’s Climate Certificate SSAB supports the UN’s Global Compact
Short-term prospects Generally, uncertainty continues to prevail on the markets, particularly in Europe The recovery is continuing in the US, with announced price increases for steel Asia remains stable; solid activity in Latin America Demand in Europe is more cautious; a degree of inventory restocking is expected during the first half of the year Contract prices in Europe in Q1-12 were lower than in Q4-11 18 March 2012
A strong platform for the future Increased focus on Market and Sales, as well as R&D SSAB EMEA has initiated an efficiency improvement program to increase flexibility in production and the sales organisation The new quenching line in Borlänge broadens the product portfolio and offering to customers as from 2012 The new quenching line in Mobile strengthens our position within quenched steels in North and Latin America The finishing line in Kunshan will result in significantly shorter lead times for customers in China SSAB has a strong platform for the future 19 Linköping, December 2011
Recommend
More recommend
