Annual General Meeting 2014

Transcription

1 Annual General Meeting 2014 Martin Lindqvist President and CE Stockholm April 9, 2014

2 2013 in brief 2013 continued to be a challenging year for the steel industry and for SSAB. The year was characterized by weak demand and low prices SSAB s shipments increased by 6% but with a lower percentage of niche products perating loss of SEK -1,131 million SSAB continues to deliver positive cash flows the operating cash flow was approximately SEK 2 billion Signs of an improved market towards the end of 2013 and beginning of 2014 April 9, 2014 Annual General Meeting

3 Sales and operating profit April 9, 2014 Annual General Meeting

4 Milestones during 2013 The business Implementation of efficiency programs within the EMEA och Americas business areas Continued development of the offering within the aftermarket for wear steels - SSAB Wear Services The Swedish Steel Prize celebrated its 15th anniversary April 9, 2014 Annual General Meeting

5 A new sustainability strategy was developed in 2013 Environmental responsibility educed carbon dioxide emissions educed volume of purchased energy educed volume of material sent to landfill Sustainable products 50% of shipments shall comprise high strength steels, of which 35% on emerging markets Social responsibility eduction in the number of lost time accidents Employee satisfaction targets Compliance with the Code of Business Ethics April 9, 2014 Annual General Meeting

6 Environment, health and social responsibility Events and activities in 2013 isk identification of the Group s suppliers and improved system support for monitoring suppliers Training of the purchasing organization for monitoring of suppliers Approximately 90% of employees have undergone training in business ethics Decision to switch from oil to natural gas in one of the two ovens at the hot rolling mill in Borlänge Decision to build a new quenching tower at the coking plant in Luleå Tragic accident in Luleå April 9, 2014 Annual General Meeting

7 SSAB intends to acquire autaruukki April 9, 2014 Annual General Meeting

8 A combination with clear industrial logic Flexible and cost effective production to better adapt to changes in market demand Value creation through tangible synergies Accelerated growth in high strength steels, standard strip, heavy plate and tubular products Enhanced ability to invest in product development and &D innovation leader A more competitive Nordic and USbased steel company April 9, 2014 Annual General Meeting

9 Complemental strengths and offerings April 9, 2014 Annual General Meeting

10 Global reach for the combined company April 9, 2014 Annual General Meeting

11 Broadened steel production base in the Nordics 1 Luleå Steel-making 2 Borlänge Strip products xelösund Steel-making, heavy plates aahe Steel-making, heavy plates and strip products 2 Hämeenlinna Strip products and tubes April 9, 2014 Annual General Meeting

12 Anticipated synergies of up to SEK 1.4 billion Summary of expected synergies, m SEK Source to expected synergies, % April 9, 2014 Annual General Meeting

13 Increased flexibility in the Nordic blast furnaces production system to better adapt to changes in market demand Million tonnes Nordic slab production / from million tonnes Illustration of possible production scenarios L L L L L 0.5 L 0.0 April 9, 2014 Annual General Meeting

14 The acquisition fits in well with the existing strategy April 9, 2014 Annual General Meeting

15 The offer to autaruukki s owners creates value for all shareholders newly issued SSAB class A shares and newly issued SSAB class B shares are being offered for each autaruukki share The offer to autaruukki s shareholders corresponds to a premium of 20% Upon full acceptance of the offer, SSAB s existing shareholders will hold 58% of the share capital and 75% of the voting rights Value creation for all shareholders April 9, 2014 Annual General Meeting

16 wnership structure after the combination* wner % Votes % Capital Industrivärden 17,5% 10,5% Solidium 10,0% 16,8% LKAB 3,7% 2,2% Swedbank obur fonder 3,4% 2,5% Handelsbanken fonder 2,8% 2,0% ther shareholders 62,6% 65,9% Total 100% 100% Current SSAB shareholders 75% 58% Current autaruukki shareholders 25% 42% Industrivärden intends to remain as a longterm main owner of the combined company *Proforma 28 Februari 2014 April 9, 2014 Annual General Meeting

17 Milestones before the acquisition can be completed SSAB s shareholders: Approval of the issuance of shares to autaruukki s shareholders at SSAB s Annual General Meeting on April 9 autaruukki s shareholders: The formal exchange offer will be presented on April 10 The acceptance period will begin on April 14 The transaction must be approved by the competition authorities in the EU and in several other countries The preparation process has begun It is estimated that the transaction might be completed during the summer April 9, 2014 Annual General Meeting

18 ur vision Together with our customers, SSAB will go further than anyone to realize the full potential of lighter, stronger and more durable steel products April 9, 2014 Annual General Meeting

19 April 9, 2014 Annual General Meeting