Annual General Meeting 2011 Martin Lindqvist, President and CEO

Transcription

1 Annual General Meeting 2011 Martin Lindqvist, President and CEO

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3 A year of recovery The economic recovery continued during the year, which resulted in increased demand for steel Asia and Latin America demonstrated the strongest growth The US and Europe also showed a positive trend, but the rate of growth was somewhat slower Global steel production in 2010 increased by 15%, reaching new record levels China accounted for 44% of global steel production Sharp increases in raw materials costs for iron ore, coal and scrap could not be offset in full by higher steel prices 3

4 SSAB in 2010 Operating profit improved by SEK 2.7 billion to SEK 1.11 billion Capacity utilization increased to 85% Niche products accounted for 32% of shipments The new organization is in place, with more coordinated sales to customers Work on the strategic investment program is proceeding according to plan Participated at World Expo, where the façade of the Swedish Pavilion was constructed of steel from SSAB 4

5 Sales and earnings SEK million Sales Crude steel production 2010: 5.8 mt (2009: 3.5) Number of employees: 8,500 Operating margin Operating profit 5

6 Sales per business area and shipments Sales per business area Shipments tonne 000 Ordinary steels Niche products 6

7 New R&D center Increased investments in R&D aimed at improving the offering to the customer During the year,a new R&D center opened in Montpelier, Iowa A new R&D center will open in Kunshan, China, in 2012 The work is focused on developing products and applications which are environmentally friendly and cost-efficient for our customers 7

8 Environmental work during the year New Cowpers installed at one of the blast furnaces in Oxelösund New exhaust hood in Oxelösund results in reduced emissions Environmental improvements also generate savings in the US Continued focus on new technology within ULCOS Unique solution reduces nitrogen in water from the coking plant Audits of the ISO environmental management system Participation in international cooperation projects 8

9 Focus on safety zero tolerance Per million work hours The target, which was adopted in 2010, is an annual reduction of at least 5% in accidents resulting in sick leavee 9

10 Equality & Diversity New diversity i policy in place During the year, SSAB has reviewed its employee policy and gone further in emphasizing the importance of diversity in the organization Percentage of female employees Percentage of female managers 10

11 Corporate social responsibility During the year, work proceeded d on coordinating purchasing and more effective inclusion of principles regarding labor law and human rights in contracts with suppliers Since 2010, SSAB is included in OMX GES OMXS30 Ethical Index och OMX GES30 Ethical Sweden Index SSAB participated in the Carbon Disclosure Project and qualified for inclusion in Carbon Disclosure Leadership Index (the 20 Nordic countries with the highest rankings) SSAB was awarded Green Cargo s Climate Certificate also in

12 Strategies and targets To be the world leader within our niche products production, process development, innovation, and sales To increase niche products to 50% of shipments as from 2015 To ensure a strong position in Europe and North America To strengthen our presence in Asia To be one of the safest steel companies in the world with the most skilled and committed employees 12

13 Advantages for customers and the environment Increased strength Reduced weight Lower fuel consumption Longer productive life cycle Increased load capacity SSAB s niche products consist of advanced high strength strip and quenched steels The development of niche products covers not only the qualities of the steel, but also the entire customer offering 13

14 New dump truck body winner of Swedish Steel Prize

15 Applications made of high strength steels Wranne/Fåhraeus Design AB - Sweden Bluepoint PTY LTD, Australia Ruthmann GmbH & Co KG (DE) Germany Labrie Environ. Group, Inc. Canada Bed spring: Bucket teeth: Sky lift telescope Garbage truck: Unique design Easy to fit and low in weight 30% lower cost boom: Increased lift height and load capacity Increase of 700 kg in load capacity. 15

16 Investment program supports the strategy In 2012, a new quenching line with capacity for producing 200, tonnes of quenched steels will be brought into commission in Mobile, Alabama In Borlänge, production of quenched steels will begin during the first half of 2012, with an initial capacity of 300,000 tonnes During the autumn of 2011, a new finishing line was brought into commission in Kunshan, China The strategic investment program amounts to approx. SEK 3 billion 16

17 Summary The recovery continued during 2010 and is expected to continue also in 2011 Asia and Latin America demonstrated the strongest growth Sharp increases in raw materials costs for iron ore, coal and scrap could not be offset in full by higher steel prices Growth for SSAB s niche products is expected to be higher h than for ordinary steels The strategic investment program will further strengthen SSAB s position within high strength steels The ambition is to increase prices as demand for steel increases 17

18 "A stronger, lighter and more sustainable world" Together with our customers, we will go further than anyone else in realizing i the full value of lighter, stronger and more durable steel products. 18