Creating market for growth P-O Stark EVP & Head of SSAB Special Steels

PUBLIC

Agenda

► Our position in the market

► Market environment and outlook

► Our focus going forward

2 PUBLIC

Global market leader in high-strength steels

12.6 bn

1 Mton

11.8%

Sales in 2016

Shipments in 2016

EBITDA-margin in 2016

►Global market coverage

►Wear, structural, protection and tool steels

►World’s widest product portfolio

►World leading premium product brands

3 PUBLIC

Branded products – competitive advantage

Undisputed market leader for hard and tough steel – uptime and payloads

High-strength, high-performance steel – payload and workshop properties

Protection steel for increased safety

The premium pre-hardened engineering and tool steel for increased productivity

Distributor brand to increase market coverage

Area of use Brand Flexible production model – 9 Quenching lines

Oxelösund

QL 1-4

Raahe

QL 8-9

Borlänge

QL 7

Mobile

QL 5-6

4 PUBLIC

Leading products serving a variety of customer segments

Heavy plate

Strip

Hardox and Raex

Strenx &

Other

Refers to the share of SSAB Special Steels total shipments in tonnes

Lifting

Recycling

Trailers and body builders

Steel Service Centers

Agri, forestry and fishing

Raw material handling

Construction machinery

5 PUBLIC

Global trends drive demand for Special Steels

Sustainability

Productivity

Infrastructure

Resource efficiency Energy efficiency Lower emissions Durable products Recycling

Total cost of ownership (TCO) Maximize payload and lifting capacity Improve fuel efficiency Longer life span Longer service intervals

Global urbanization Significant need of re-building infrastructure in US and EU

6 PUBLIC

Direct and stock sales – 10,000 customers globally

North America 33%

South America 9%

TRMEA 7%

North & East Europe 20%

Western Europe 23%

APAC 8%

Sales split (tonnes) Highly specialized sales force

7 PUBLIC

Leverage potential in business model Upgrading customers to more advanced offerings

Profitability leverage of different sales (illustrative)

HARDOX

RAEX

Non-branded Q&T

DIRECT MILL SALES

LOCAL STOCK SALES

SERVICE OFFERING

Base

+40%

+20%

+20%

SERVICE MODEL UPGRADE

PR

OD

UC

T U

PG

RA

DE

8 PUBLIC

Agenda

► Our position in the market

► Market environment and outlook

► Our focus going forward

9 PUBLIC

Expanding the Special Steels market

Penetration of Q&T plate as % of total plate demand

Western Europe

7-8% North America

4-5%

Emerging markets

<2%

SSAB assessment 10 PUBLIC

Outlook for key special steel segments

Yellow goods

Trailers and body builders

Recycling

Raw Material Handling

Agriculture, forestry and

fishing

Western Europe

Turkey, Middle East,

Africa APAC

Lifting

North & Eastern Europe

US & Canada

Central & South

America

Positive Negative Stable

11 PUBLIC

Strong market position for majority of segments and regions

Yellow goods

Trailers and body builders

Recycling

Raw Material Handling

Agriculture, forestry and

fishing

Eastern Europe/CIS

Western Europe

Turkey, Middle East,

Africa

Asia / Oceania

Lifting

North Europe

US & Canada

Central & South

America

50%

Market position Very strong Strong Moderate

12 PUBLIC

Agenda

► Our position in the market

► Market environment and outlook

► Our focus going forward

13 PUBLIC

www.ssab.com/ecoupgraded Reference document: Environmental evaluation of steel and steel structures – a handbook produced within The Steel Eco-Cycle project, Jernkontoret, 2013.

www.ssab.com/ecoupgraded

SSAB EcoUpgraded Together with our customers, SSAB continually upgrades steel and equipment designs. SSAB EcoUpgraded saves CO2 both in steel production and during the full lifetime of the machine.

From the CO2 payback time and onwards, every extra hour brings additional savings.

Savings on CO2

32 1.3 9,700

TONS/LIFETIME YEARS L/LIFETIME

*) Valid for the whole tractor-trailer vehicle.

Productivity and sustainability – Case EcoUpgraded

Upgrade: Hardox 400 -> Hardox 450

Weight reduction: 28.3 -> 27 tonnes = 5%

PUBLIC

Upgrading and mix shift – tools to fill the gaps

Battlefield X-Days

15 PUBLIC

Cement

Strenx Sheet

Small lifting

Concrete

Agri- cultural

Mining

Road- buildning

Tippers

X-Days 2016

► 20 events during 2016

► 8 different topics

► 230 particpants

Focus segments

16 PUBLIC

Sub-suppliers

OEMS

STOCKS

END-USERS

Marketing targets end-users

17 PUBLIC

End-user focus through after market and brand programs

Hardox In My Body

► Brand program to reach the end-user with the value Hardox provides

► No. of members: 419

► Brand program to reach the end-user with the value Strenx provides

► No. of members: 72

► Network for sharing best practices

► No. of members (YTD): 303

► Certification of work shops for providing high quality parts made of Hardox plate

► Contribute both to higher volume of Hardox plate and to create the market

Hardox Wearparts

My Inner Strenx

>2 million/month social media

views YTD

18 PUBLIC

Strategic products New product areas

►Oxelösund produces very clean steel (with extremely low degree of pollutants and high quality)

► Improved workshop properties, formability, cutting, welding

► Improved toughness and low temperature service

►Suitable for extreme applications

19 PUBLIC

Strategic products New HARDOX 500 TUF

►Hardox 500 TUF delivers exceptional strength, hardness and toughness in one and the same wear plate.

►Combines the best properties from Hardox 450 and Hardox 500 - a wear plate that has no real competition on the market

►Excels in handling heavy and sharp rocks, steel scrap and in demolition

►Several end-user benefits, e.g. for a Tipper

− Reduced thickness from 8 to 6 mm, 25% weight reduction

− Increased payload by 500-750 kg/cycle

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PUBLIC

Upgrading/Strategic products Learning from each other

Cross- Member Ground Engagement Tools Weld on Heel Shrouds

Application

Upgrade

Result

Hardox 550 1 ½” Hardox 550 1 ½” and 2” Strenx CRM 110 XF

Lighter and more cost effective Cost reduction of ~50% Extended service life and lower cost

21 PUBLIC

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Global sales and distribution coverage 80 sales stocks servicing 130 different countries

SSAB stock sales

95

Service center

Sales stock

1. Increase penetration from existing stocks

2. New stock locations

Germany

PUBLIC

1. Increase penetration from existing stocks

2. New stock locations

Grow in emerging markets – substantial potential

Emerging markets <2%

Penetration of Q&T plate as % of total plate demand

23 PUBLIC

Local go-to-market model – Central America

► Experienced sales manager

with entrepreneurial approach

► Extensive training

► X-days and technical sales resources

► Local organization close to customer builds long-term customer confidence

Central America Special Steel sales, tonne

10,800 9,800

13,500

16,500

19,950

2013 2014 2015 2016 2017 FC

+22%

+38%

+21%

Key success factors

24 PUBLIC

Growth target

World leading products

Flexible production capacity

Continuous improvemens

Upgrading Battlefield X-days

Creating the market Global market coverage

Sustainability

Productivity

Infrastructure

1,008

1,350

2016 2020 Target

1,350 kton by 2020

25 PUBLIC

PUBLIC