SSAB — Earnings Release 2021

Jan 28, 2022

YEAR-END REPORT 2021

January 28, 2022

YEAR-END REPORT 2021

The fourth quarter

• Revenue was SEK 27,337 (16,988) million
• EBITDA was SEK 7,753 (1,439) million
• Operating profit was SEK 6,961 (557) million
• Earnings per share were SEK 5.30 (0.33)
• Net cash was SEK 2.3 billion (net debt of SEK 10.3 billion)
• The Board proposes a dividend of SEK 5.25 (0.00) per share for 2021

Key figures

	2021	2020	2021	2021	2020
SEK millions	Q4	Q4	Q3	Full-year	Full-year
Revenue	27,337	16,988	25,220	95,891	65,396
EBITDA	7,753	1,439	6,582	22,094	3,364
Operating profit/loss	6,961	557	5,800	18,837	-325
Profit/loss after financial items	6,859	418	5,689	18,416	-802
Profit/loss after tax	5,460	346	4,481	14,673	-490
Earnings per share (SEK)	5.30	0.33	4.35	14.24	-0.50
Operating cash flow	6,479	2,930	3,478	15,296	3,460
Net debt	-2,346	10,278	3,370	-2,346	10,278
Net debt/equity ratio (%)	-3	19	5	-3	19

(In the report, the figures in parentheses refer to the corresponding period for the previous year.)

Comments by the CEO – strong finish to a record year

The full year 2021 was the best in SSAB's history with record results posted by all divisions. Most of this improvement was driven by high steel prices. Internal performance was good during the year, with high production stability and improved safety results. During the year, SSAB strengthened its position as the driving force in the green transition in the steel industry.

Operating profit for the fourth quarter of 2021 increased to SEK 6,961 (557) and full-year earnings rose to a record high SEK 18,837 (-325) million. Net cash flow was strong and amounted to SEK 12.4 (2.2) billion for the full year and with net cash of SEK 2.3 billion, the Group is now debt free. The product mix was improved during the year in line with our strategic targets. SSAB Special Steels increased shipments to 1.46 (1.13) million tonnes and SSAB Europe increased its share of premium products to 43% (38%).

SSAB Special Steels' operating profit for the fourth quarter increased to SEK 1,540 (518) million and the operating margin to 23.5% (12.7%). SSAB's high-strength steels support, among other things, our customers' sustainability strategies and their aim to improve productivity and sustainability performance in machinery and other equipment.

SSAB Europe's operating result for the fourth quarter increased to SEK 3,301 (83) million and the operating margin to 26.5% (1.1%). SSAB Americas' operating result increased to SEK 2,188 (18) million and the operating margin increased to 35.6% (0.5%).

Our focus on health and safety work and a stable production level have delivered good results and LTIF decreased to 1.8 (3.7) during 2021. Covid-19 continues to cause problems and we have introduced further measures since the turn of the year to limit the spread.

The outlook for the first quarter of 2022 is basically positive, albeit with continued uncertainty due to a shortage of components at several of our customers, as well as bottlenecks in logistics chains, not least in the light of the growing spread of Covid-19.

SSAB is leading the green transition of the steel industry through the unique HYBRIT initiative, which SSAB is driving forward together with its partners. Demand for fossil-free steel is showing strong growth and it is against this

background that SSAB's Board took a strategic decision to transform the Nordic strip production and accelerate the company's green transition. The plan is to replace the existing production system with so-called mini-mills, which will result in a broader product program and improved cost position. The ambition is to eliminate virtually all carbon dioxide emissions 15 years earlier than the original plan announced earlier. However, for this to be done, the necessary infrastructure must be in place in time, as well as access to fossil-free electricity.

Outlook for the first quarter of 2022

Demand for steel during the first quarter of 2022 is estimated to be good, albeit with continued uncertainty associated with a shortage of components as well as bottlenecks in logistics chains, not least in the light of the growing spread of Covid-19. Global demand for high-strength steel is estimated to be good during the first quarter in more or less all markets.

SSAB Special Steels' shipments are expected to be higher during the first quarter of 2022 compared to the fourth quarter of 2021, whereas realized prices are expected to be stable.

SSAB Europe's shipments are expected to be higher during the first quarter of 2022 compared to the prior quarter, whereas prices are expected to be somewhat lower.

SSAB Americas' shipments are expected to be higher during the first quarter of 2022 compared to the prior quarter, whereas prices are expected to be stable.

Outlook for steel divisions

	Q1 2022 vs. Q4 2021
	Shipments	Realized prices
SSAB Special Steels	Higher	Stable
SSAB Europe	Higher	Somewhat lower
SSAB Americas	Higher	Stable

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

Major planned maintenance outages 2022

The Group's total maintenance costs for the full year 2022 are expected to be SEK 1,040 million, compared to SEK 1,270 million in 2021. The lower figure for 2022 is explained primarily by SSAB Special Steels, where the steel mill in Mobile has a maintenance outage only every other year. The table below shows the major planned maintenance outages for 2022 and the costs of outages completed during 2021. The figures include the impact of the direct maintenance cost and the cost of lower capacity utilization (underabsorption), but exclude lost margins.

Expected maintenance costs for 2022

	2022	2022	2022	2022	2022	2021	2020
SEK millions	Q1	Q2	Q3	Q4	Full-year	Full-year	Full-year
SSAB Special Steels	-	-	-	320	320	590	250
SSAB Europe	-	-	230	120	350	430	335
SSAB Americas	-	-	-	370	370	250	220
Total	-	-	230	810	1,040	1,270	805

The market

According to the World Steel Association, global crude steel production for the first eleven months of 2021 amounted to 1,753 (1,677) million tonnes, up 4.5% compared to the same period in 2020. Chinese steel production contracted by just under 5%. Steel production increased in North America by 18% and in the EU-27 by 17%.

In North America, demand for heavy plate was good in most customer segments during the fourth quarter. Inventory levels at distributors were still low.

In Europe, demand was characterized by a shortage of components in the vehicle industry together with hesitancy by distributors, among others, ahead of the turn of the year. At the same time, the underlying demand remained good in many customer segments. Imports into Europe have increased and the supply of steel has improved during the fall and the assessment is that inventory levels have increased.

Global demand for high-strength steel was good, in principle in all markets, during the quarter.

In North America, prices for heavy plate rose somewhat during the first part of the fourth quarter before leveling out. In Europe, market prices for strip declined during the fourth quarter, whereas plate prices were relatively stable. In China, market prices for similar products contracted somewhat during the fourth quarter of 2021.

SSAB Group – Full-year summary

Revenue and operating result

Revenue for the full-year 2021 was SEK 95,891 (65,396) million, up 47% compared to the year earlier, which was characterized by the outbreak of Covid-19. If revenue is compared to the full-year 2019 instead, the increase amounts to SEK 19,406 million, corresponding to 25%.

Operating result for the full-year 2021 was SEK 18,837 (-325) million, up SEK 19,162 million compared to 2020. All business segments contributed to the improvement. If the operating result is compared to the full year 2019, the increase was SEK 16,678 million.

Revenue and operating profit/loss by business segment

	Revenue				Operating profit/loss
	2021	2020			2021	2020
SEK millions	Full-year	Full-year	Change		Full-year	Full-year	Change
SSAB Special Steels	23,510	16,201	7,309		4,624	1,470	3,154
SSAB Europe	42,311	27,954	14,357		8,095	-1,113	9,208
SSAB Americas	20,680	13,239	7,441		5,412	-257	5,669
Tibnor	12,377	8,241	4,136		1,533	96	1,438
Ruukki Construction	5,999	5,516	483		599	314	285
Other	-	-	-		-1,191	-489	-702
Depr. surplus values	-	-	-		-235	-346	111
Group adjustments	-8,986	-5,754	-3,231		-	-	-
Total	95,891	65,396	30,495		18,837	-325	19,162

Operating result for SSAB Special Steels and SSAB Americas has been restated taking into account the reorganization of Mobile, see page 9 for details.

Result after tax and earnings per share

The result after tax (attributable to shareholders in the parent company) for 2021 was SEK 14,662 (-510) million, equating to SEK 14.24 (-0.50) per share. Tax was SEK -3,743 (312) million.

Cash flow, financing and liquidity

Operating cash flow for the full-year 2021 amounted to SEK 15,296 (3,460) million. Compared with 2020, cash flow was impacted primarily by higher operating profit.

Net cash flow amounted to SEK 12,436 (2,180) million. Net cash at December 31, 2021 was SEK 2,346 (-10,278) million.

The term to maturity of the total loan portfolio at December 31, 2021 averaged 6.2 (4.7) years, with an average fixed interest period of 1.2 (0.9) years.

Cash and cash equivalents were SEK 13,796 (7,051) million and non-utilized credit facilities were SEK 8,605 (14,471) million, which combined corresponds to 23.4% (33%) of rolling 12-month revenue.

Capital expenditure

Capital expenditure, including acquisitions and divestments of operations, for the full-year 2021 totaled SEK 3,018 (2,292) million. Strategic investments were SEK 835 (582) million. The increase compared to the full year 2020 is primarily related to the strategic investments in Mobile and Oxelösund. The assessment is that the sum of maintenance and strategic investments will amount to around SEK 5 billion for the full year 2022 (compared to SEK 2.9 billion in 2021). The increase compared to 2021 is primarily related to the strategic investments in Oxelösund to convert production to fossil-free steelmaking.

Major maintenance outages

During the fourth quarter of 2021, there were maintenance outages in all three steel divisions. The table below shows the major maintenance outages completed in 2021 and 2020. The figures include the impact of the direct maintenance cost and the cost of lower capacity utilization (underabsorption), but exclude lost margins.

Major maintenance outages

	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
SEK millions	Q1	Q1	Q2	Q2	Q3	Q3	Q4	Q4	Full-year	Full-year
SSAB Special Steels	-	-	-	-	440	250	150	-	590	250
SSAB Europe	-	-	-	-	270	250	160	85	430	335
SSAB Americas	-	-	-	50	-	170	250	-	250	220
Total	-	-	-	50	710	670	560	85	1,270	805

Assets with undeterminable useful life

During 2021, SSAB Special Steels assumed responsibility for the steel mill in Mobile from SSAB Americas, resulting in a reallocation of goodwill between SSAB Americas and SSAB Special Steels. Consolidated assets with undeterminable useful life are allocated to the Group's cash-generating units as shown in the table below:

Assets with an undeterminable useful life per cash-generating unit

	2021	2020
SEK millions	Dec 31	Dec 31
SSAB Special Steels	16,464	2,813
SSAB Americas	11,119	22,325
SSAB Europe	2,130	2,085
Tibnor	523	512
Ruukki Construction	140	140
Total goodwill	30,375	27,872
Ruukki Construction (Rautaruukki tradename)	405	397
Total assets with an undeterminable useful life	30,780	28,269

Assets with an undeterminable useful life are tested for impairment each year towards the end of the fourth quarter and in the case of an indication of decline in value. The impairment test showed no need for an impairment charge.

Return on capital employed/equity

Return on capital employed before tax for the full-year 2021 was 27% and return on equity after tax was 23%, whereas the figures for the full-year of 2020 were 2% and -1% respectively.

Equity

With earnings of SEK 14,662 (-510) million and other comprehensive income (mostly consisting of translation differences) of SEK 4,906 (-5,817) million, the parent company's shareholders' equity amounted to SEK 73,477 (53,987) million, equating to SEK 71.35 (52.42) per share.

SSAB Group – Fourth quarter of 2021

Revenue and operating result

Revenue for the fourth quarter of 2021 was SEK 27,337 (16,988) million, up 61% compared to the fourth quarter of 2020 and up 8% compared to the third quarter of 2021.

Operating result for the fourth quarter of 2021 was SEK 6,961 (557) million, up SEK 6,404 million compared to the fourth quarter of 2020. All business segments contributed to the improvement. Compared to the third quarter of 2021, earnings were up SEK 1,161 million.

Revenue and operating profit/loss by business segment

		Revenue			Operating profit/loss
	2021	2020		2021	2020
SEK millions	Q4	Q4	Change	Q4	Q4	Change
SSAB Special Steels	6,549	4,070	2,479	1,540	518	1,022
SSAB Europe	12,446	7,472	4,974	3,301	83	3,217
SSAB Americas	6,153	3,448	2,705	2,188	18	2,170
Tibnor	3,443	2,031	1,412	351	48	303
Ruukki Construction	1,518	1,206	312	161	72	88
Other	-	-	-	-552	-100	-453
Depr. surplus values	-	-	-	-26	-83	57
Group adjustments	-2,773	-1,239	-1,533	-	-	-
Total	27,337	16,988	10,349	6,961	557	6,404

Operating result for SSAB Special Steels and SSAB Americas has been restated taking into account the reorganization of Mobile, see page 9 for details.

Analysis of total change in revenue and operating profit/loss

Revenue		Operating profit/loss
	Change vs		Change vs
	Q4 2020		Q4 2020
	%		SEK m
Volume	-10	Price and product mix	11,620
Price	65	Volume	-460
Product mix	2	Variable costs	-3,920
Currency effects	1	Fixed costs	-810
Other sales	3	Currency effects	-110
		Capacity utilization	20
		Other	64
Total	61	Total	6,404

Raw materials

SSAB sources iron ore from LKAB in Sweden and from Severstal in Russia, and prices vary depending on the market index. SSAB sources coking coal from Australia, the USA and Canada, usually on annual supply contracts with monthly pricing. SSAB Americas regularly purchases scrap metal on the spot market as a raw material for their production. Purchase prices for iron ore fell during the fourth quarter of 2021, but turned sharply upwards from the middle of the fourth quarter. SSAB's iron ore costs in the first quarter of 2022 are expected to increase somewhat compared to the fourth quarter of 2021. Higher coking coal prices will also affect earnings in the first quarter of 2022.

Change in SSAB's average purchase prices, fourth quarter of 2021

	Q4 2020		Q3 2021
% change	USD	SEK	USD	SEK
Iron ore	2%	5%	-45%	-43%
Coking coal	116%	120%	33%	35%
Scrap metal	57%	62%	7%	10%

Production and shipments

Crude steel production during the fourth quarter of 2021 was down 4% compared with the fourth quarter of 2020, whereas it was up 12% compared with the third quarter of 2021.

Rolling production during the fourth quarter of 2021 was down 8% compared with the same quarter of 2020, whereas it was up 3% compared with the third quarter of 2021.

SSAB's steel shipments during the fourth quarter of 2021 were 1,595 (1,779) thousand tonnes, down 10% compared with the fourth quarter of 2020 and down 2% compared with the third quarter of 2021.

Production and shipments

	2021	2020	2021	2021	2020
Thousand tonnes	Q4	Q4	Q3	Full-year	Full-year
Crude steel production	2,066	2,156	1,842	8,179	7,535
Rolling production	1,818	1,970	1,766	7,568	6,937
Steel shipments	1,595	1,779	1,627	6,921	6,459

Earnings after tax and earnings per share

The result after tax (attributable to shareholders in the parent company) for the fourth quarter of 2021 was SEK 5,458 (343) million, equating to SEK 5.30 (0.33) per share. Tax was SEK -1,399 (-73) million.

Cash flow

Operating cash flow for the fourth quarter of 2021 amounted to SEK 6,479 (2,930) million. Compared with the fourth quarter of 2020, cash flow was impacted primarily by higher operating profit.

Net cash flow amounted to SEK 5,397 (2,856) million. Net cash at December 31, 2021 was SEK 2,346 (-10,278) million.

Capital expenditure

Capital expenditure, including acquisitions and divestments of operations, totaled SEK 1,358 (717) million during the fourth quarter of 2021. Strategic investments were SEK 309 (115) million. The increase compared to 2020 is primarily related to the strategic investments in Mobile and Oxelösund, which were paused during 2020.

Operating cash flow and net debt

	2021	2020	2021	2020
SEK millions	Q4	Q4	Full-year	Full-year
Operating profit before depreciation/amortization	7,753	1,439	22,094	3,364
Change in working capital	-1,027	2,036	-5,485	1,570
Maintenance expenditures	-1,023	-606	-2,053	-1,622
Other	776	61	741	147
Operating cash flow	6,479	2,930	15,296	3,460
Financial items	-72	-84	-373	-545
Taxes	-644	122	-1,357	-56
Cash flow from current operations	5,763	2,967	13,566	2,859
Strategic expenditures in plants and machinery	-309	-115	-835	-582
Acquisitions of shares and operations	-27	-35	-130	-231
Divestments of shares and operations	-	39	-	143
Cash flow before dividend	5,427	2,856	12,602	2,189
Dividend, non-controlling interest	0	-1	-9	-9
Acquisitions of shares, non-controlling interest	-30	-	-157	-
Net cash flow	5,397	2,856	12,436	2,180
Net debt at beginning of period	-3,370	-12,926	-10,278	-11,696
Net cash flow	5,397	2,856	12,436	2,180
Other 1)	319	-208	188	-762
Net debt at the end of period	2,346	-10,278	2,346	-10,278

1) Mainly valuation changes of derivatives and revaluations of other financial assets and liabilities in foreign currencies

Business segments – Fourth quarter of 2021

The information in the tables below excludes the depreciation/amortization on surplus values on tangible and intangible assets relating to the acquisitions of IPSCO and Rautaruukki and excludes items affecting comparability. From the third quarter of 2021 onwards, SSAB Special Steels assumed responsibility for SSAB's steel mill in Mobile, Alabama from SSAB Americas. The change is in line with SSAB strategy to continue to grow and be a leader within special steel in the global market. The new organizational set up will provide a specialization of the American sites, following a clearer focus for future development and investments. The change entails a certain effect on the figures for SSAB Special Steels and SSAB Americas and all reference figures have been restated accordingly to reflect the new structure. For more information about the business segments, see page 23.

SSAB Special Steels

Fourth quarter in brief

• Good demand and stable production
• Higher prices
• Operating profit increased to SEK 1,540 (518) million
• Shipments rose 18% to 350 (297) thousand tonnes

Key figures

	2021	2020	2021	2021	2020
SEK millions	Q4	Q4	Q3	Full-year	Full-year
Revenue	6,549	4,070	5,993	23,510	16,201
Operating profit/loss before depr./amort., EBITDA	1,777	794	1,220	5,567	2,604
Operating profit/loss	1,540	518	1,006	4,624	1,470
Operating cash flow	1,055	1,090	1,382	3,916	2,372
Number of employees at end of period	3,922	3,806	3,893	3,922	3,806

The number of employees for 2020 has been adjusted due to Abraservice. Operating profit excludes depreciation/amortization on surplus values on tangible and intangible assets related to the acquisition of IPSCO. Depreciation/amortization on surplus values during the fourth quarter was SEK 17 (16) million.

Revenue and operating profit

Revenue was up 61% compared with the fourth quarter of 2020 and amounted to SEK 6,549 (4,070) million. Higher prices had a positive impact of 42 percentage points and higher volumes 18 percentage points. Other revenue contributed 1 percentage point.

Compared with the third quarter of 2021, revenue was up 9%. Higher prices contributed 9 percentage points, whereas higher volumes contributed 1 percentage point. Other revenue had a negative impact of 1 percentage point.

Operating profit for the fourth quarter of 2021 was SEK 1,540 (518) million, up SEK 1,022 million compared with the fourth quarter of 2020. Higher prices primarily had a positive impact, whereas higher raw material costs had a somewhat negative impact. Higher volumes had a positive impact. Fixed costs increased somewhat since the same quarter a year earlier was to some extent characterized by weaker demand and savings measures.

Compared with the third quarter of 2021, earnings were up SEK 534 million. Higher prices and better capacity utilization impacted positively. Higher fixed costs, related to seasonality and performance-based remuneration, had a somewhat negative effect.

Market trend

All SSAB Special Steels' customer segments had good underlying demand. The strongest trend was seen in customer segments with exposure to the aftermarket, including within the Hardox Wearparts network. Demand within Heavy Transport was stable, despite the shortage of components experienced by OEMs.

Production and shipments

Crude steel production and rolling production was down 16% and 18% respectively, compared with the fourth quarter of 2020, mainly due to the planned maintenance outage in Mobile. Shipments of steel during the fourth quarter of 2021 were up 18% due to higher activity level in the market.

Production and shipments

	2021	2020	2021	2021	2020
Thousand tonnes	Q4	Q4	Q3	Full-year	Full-year
Crude steel production	545	645	469	2,312	2,307
Rolling production	351	430	395	1,667	1,687
Shipments	350	297	348	1,462	1,127

The figures for 2020 and the first half of 2021 have been restated to reflect the new setup involving Mobile.

Cash flow and capital expenditure

Operating cash flow during the fourth quarter was SEK 1,055 (1,090) million. Higher operating result was counteracted by a build-up of working capital. Working capital was released during the fourth quarter of 2020.

Capital expenditure during the fourth quarter was SEK 502 (226) million, of which SEK 198 (47) million were strategic investments.

SSAB Europe

Fourth quarter in brief

• Higher prices
• Operating profit increased to SEK 3,301 (83) million
• Shipments decreased by 9% to 832 (913) thousand tonnes

Key figures

	2021	2020	2021	2021	2020
SEK millions	Q4	Q4	Q3	Full-year	Full-year
Revenue	12,446	7,472	10,789	42,311	27,954
Operating profit before depr./amort., EBITDA	3,690	496	2,912	9,640	554
Operating profit/loss	3,301	83	2,524	8,095	-1,113
Operating cash flow	2,764	1,419	604	5,893	702
Number of employees at end of period	6,705	6,701	6,646	6,705	6,701

Excluding depreciation/amortization on surplus values on tangible and intangible assets related to the acquisition of Rautaruukki.

Depreciation/amortization on surplus values was SEK 1 (60) million during the fourth quarter.

Revenue and operating profit

Revenue was up 67% compared with the fourth quarter of 2020 and amounted to SEK 12,446 (7,472) million. Higher prices contributed 74 percentage points and other revenue 3 percentage points. Lower volumes impacted 9 percentage points and negative currency effects 1 percentage point.

Compared with the third quarter of 2021, revenue was up 15%. Higher prices had a positive impact of 9 percentage points and higher volumes 5%. Other revenue had a positive impact of 1 percentage point.

Operating profit for the fourth quarter of 2021 was SEK 3,301 (83) million, up SEK 3,218 million compared with the same quarter in 2020. Higher prices were the main driver behind the uplift in earnings, which was partly counteracted by higher costs of raw material. Lower volumes had a negative impact. Fixed costs increased somewhat since the fourth quarter of 2020 was to some extent affected by savings measures.

Compared with the third quarter of 2021, earnings were up SEK 777 million. Higher prices, which to some extent were counteracted by somewhat higher raw material costs, lifted earnings. Higher volumes and better capacity utilization contributed positively. Higher fixed costs, related to seasonality and performance-based remuneration, had a somewhat negative effect.

Market trend

Demand during the fourth quarter was affected by a shortage of semiconductors, but despite this, SSAB's shipments of high-strength steel to the car industry reached a new record level for the full-year. Demand in the Construction, Heavy Transport and Construction Machinery segments was good. The Steel Service Center segment had a wait-and-see attitude during the quarter, which was partly due to low visibility for production levels in the vehicle industry.

Production and shipments

The production was fairly stable compared to the fourth quarter of 2020. Shipments of steel during the fourth quarter of 2021 were down 9%, compared with the fourth quarter of 2020. This was due to the component shortages and a wait-and-see mode within Steel Service Centers, among other things.

Production and shipments

	2021	2020	2021	2021	2020
Thousand tonnes	Q4	Q4	Q3	Full-year	Full-year
Crude steel production	1,193	1,207	1,080	4,635	4,046
Rolling production	1,163	1,220	1,081	4,741	4,111
Shipments	832	913	795	3,588	3,314

Production figures include high-strength steel made for SSAB Special Steels. These volumes are not included in SSAB Europe's shipments.

Cash flow and capital expenditure

Operating cash flow during the fourth quarter was SEK 2,764 (1,419) million. Compared with the fourth quarter of 2020, cash flow was positively impacted by higher earnings, which were partly counteracted by tied-up working capital. Working capital was released during the fourth quarter of 2020.

Capital expenditure during the fourth quarter was SEK 672 (426) million, of which SEK 68 (52) million were strategic investments.

SSAB Americas

Fourth quarter in brief

• Operating profit increased to SEK 2,188 (18) million, primarily due to higher prices
• Shipments contracted by 27% to 413 (569) thousand tonnes, due to planned maintenance and bad weather

Key figures

	2021	2020	2021	2021	2020
SEK millions	Q4	Q4	Q3	Full-year	Full-year
Revenue	6,153	3,448	6,061	20,680	13,239
Operating profit/loss before depr./amort., EBITDA	2,235	57	1,917	5,587	-63
Operating profit/loss	2,188	18	1,871	5,412	-257
Operating cash flow	2,537	128	1,538	4,922	222
Number of employees at end of period	644	646	651	644	646

Operating profit excludes depreciation/amortization on surplus values on tangible and intangible assets related to the acquisition of IPSCO. Depreciation/amortization on surplus values was SEK 1 (1) million during the fourth quarter.

Revenue and operating profit

Revenue was up 78% compared with the fourth quarter of 2020 and amounted to SEK 6,153 (3,448) million. Higher prices had a positive impact of 99 percentage points. Currency effects had a positive impact of 5 percentage points and a better product mix contributed 1 percentage point. Lower volumes decreased revenue by 27 percentage points.

Compared with the third quarter of 2021, revenue was up 2%. Higher prices had a positive impact of 14 percentage points. Currency effects had a positive impact of 2 percentage points, whereas lower volumes had a negative impact of 15 percentage points. Other revenue had a positive impact of 1 percentage point.

Operating profit for the fourth quarter of 2021 was SEK 2,188 (18) million, up SEK 2,170 million compared with the fourth quarter of 2020. Higher prices, which were to some extent counteracted by higher scrap prices and planned maintenance, mostly explained the upswing.

Compared with the third quarter of 2021, earnings were up SEK 317 million. The increase was primarily explained by higher prices, which were partly counteracted by lower volumes and the costs of planned maintenance.

Market trend

Demand was good during the fourth quarter although SSAB's shipments were negatively affected by the planned maintenance outage in Mobile, as well as bad weather conditions and lack of transport capacity. Demand improved somewhat in the Energy customer segment with regard to the oil and gas industry.

Production and shipments

The production was relatively stable compared to the fourth quarter of 2020. Shipments of steel were down 27% compared with the fourth quarter of 2020 and down 15% compared with the third quarter of 2021. The planned maintenance outage in Mobile, as well as bad weather conditions and lack of transport capacity impacted shipments negatively.

Production and shipments

	2021	2020	2021	2021	2020
Thousand tonnes	Q4	Q4	Q3	Full-year	Full-year
Crude steel production	328	304	293	1,233	1,182
Rolling production	303	321	291	1,160	1,140
Shipments	413	569	484	1,871	2,019

Shipments figures include heavy plate made at SSAB Special Steels' steel mill in Mobile but sold by SSAB Americas. From the third quarter of 2021 onwards, the steel mill in Mobile is no longer part of SSAB Americas' organization and the reference figures have been restated accordingly to reflect this.

Cash flow and capital expenditure

Operating cash flow during the fourth quarter of 2021 was SEK 2,537 (128) million. Compared with the fourth quarter of 2020, cash flow was impacted positively by higher earnings.

Capital expenditure during the fourth quarter was SEK 71 (21) million, of which SEK 5 (-) million were strategic investments.

Tibnor

Fourth quarter in brief

• Operating profit increased to SEK 351 (48) million
• Higher prices and improved margins

Key figures

	2021	2020	2021	2021	2020
SEK millions	Q4	Q4	Q3	Full-year	Full-year
Revenue	3,443	2,031	3,063	12,377	8,241
Operating profit before depr./amort., EBITDA	390	83	552	1,680	240
Operating profit/loss	351	48	515	1,533	96
Operating cash flow	19	285	56	500	186
Shipments, thousand tonnes	201	198	190	869	781
Number of employees at end of period	1,007	981	1,003	1,007	981

Excluding depreciation/amortization on surplus values on tangible and intangible assets related to the acquisition of Rautaruukki. Depreciation/amortization on surplus values was SEK 4 (6) million during the fourth quarter.

Revenue and operating profit

Revenue was up 70% compared with the fourth quarter of 2020 and amounted to SEK 3,443 (2,031) million, driven by higher prices.

Compared with the third quarter of 2021, revenue was up 12%.

Operating profit for the fourth quarter of 2021 was up SEK 303 million compared with the same period a year earlier and amounted to SEK 351 (48) million. Higher prices and inventory gains contributed to the improvement.

Compared with the third quarter of 2021, earnings were down SEK 164 million. Lower earnings were primarily attributable to lower inventory gains as a result of the downturn in steel prices after the summer. In addition, higher fixed cost related to performance-based remuneration had a negative effect.

Market trend

The market was stable during the fourth quarter but affected to some extent by a lower production among several customers due to the shortage of components. Shipments improved somewhat compared to the third quarter of 2021.

Cash flow and capital expenditure

Operating cash flow during the fourth quarter was SEK 19 (285) million. Compared with the fourth quarter of 2020, cash flow was positively impacted by higher earnings, whereas a build-up of working capital had a negative impact. Working capital was released during the fourth quarter of 2020.

Capital expenditure during the fourth quarter was SEK 22 (17) million, of which SEK 3 (1) million were strategic investments.

Ruukki Construction

Fourth quarter in brief

• Operating profit increased to SEK 161 (72) million
• Good underlying demand

Key figures

	2021	2020	2021	2021	2020
SEK millions	Q4	Q4	Q3	Full-year	Full-year
Revenue	1,518	1,206	1,766	5,999	5,516
Operating profit before depr./amort., EBITDA	202	116	270	762	484
Operating profit/loss	161	72	229	599	314
Operating cash flow	15	139	209	466	481
Number of employees at end of period	1,403	1,362	1,381	1,403	1,362

Excluding depreciation/amortization on surplus values on tangible and intangible assets related to the acquisition of. Depreciation/amortization on surplus values was SEK 3 (-1) million during the fourth quarter.

Revenue and operating profit

Revenue was up 26% compared with the fourth quarter of 2020 and amounted to SEK 1,518 (1,206) million, driven by primarily by Building Envelopes.

Compared with the third quarter of 2021, revenue was down 14%, primarily related to a seasonal downturn in Roofing.

Operating profit for the fourth quarter of 2021 increased to SEK 161 (72) million, the improvement was primarily attributable to better volumes and higher margins in Building Envelopes.

Compared with the third quarter of 2021, earnings were down SEK 68 million, primarily due to seasonally lower volumes in Roofing. In addition, higher fixed cost related to performance-based remuneration had a negative effect.

Concerning the full year comparison, the business area Building Systems had revenue of around SEK 600 million until divestment in April 2020 and a minor positive operating profit.

Market trend

Demand was seasonally weaker during the fourth quarter, but the trend in underlying demand remained good on all major markets.

Cash flow and capital expenditure

Operating cash flow during the fourth quarter was SEK 15 (139) million. Cash flow was impacted positively by higher earnings, which were offset by a build-up of working capital. Working capital was released during the fourth quarter of 2020.

Capital expenditure during the fourth quarter was SEK 55 (28) million, of which SEK 35 (14) million were strategic investments.

Sustainability

Key figures – rolling 12 months

	2021	2021	2021	2021	2020
	Full-year	Q3	Q2	Q1	Full-year
Responsible partner
Lost time injury frequency (LTIF) 1)	1.8	1.9	2.0	2.9	3.7
Total number of injuries (LTI) 2)	47	50	60	76	101
Sustainable operations
Energy consumption, GWh 3)	9,409	9,561	8,752	9,312	9,070
Energy intensity, kWh/tonnes crude steel	1,150	1,156	1,250	1,172	1,204
Carbon dioxide emissions (Scope 1), thousand tonnes 4)	9,917	9,807	8,553	9,374	8,906
Carbon dioxide emissions (Scope 2), thousand tonnes 5)	1,070	1,115	1,112	1,110	1,142
Intensity, tonnes of CO2/tonnes crude steel 6)	1.34	1.32	1.38	1.32	1.33

1) Number of accidents resulting in an absence of more than one day per million working hours (LTIF, Lost Time Injury Frequency), own employees and contractors.

2) Number of accidents resulting in an absence of more than one day (LTIs, Lost Time Injuries), including contractors.

3) Total energy consumption (electricity, purchased fuels and purchased heat).

4) Direct emissions from production (Scope 1).

5) Indirect emissions from the generation of purchased electricity, heating and steam (Scope 2).

6) Includes Scope 1 and Scope 2.

Leading sustainability performance

SSAB's goal is to become the world's safest steel company and to achieve zero accidents and work-related injuries and illnesses. During the full year 2021, lost time injury frequency resulting in an absence of at least one day (LTIF) was 1.8 (3.7). The reduction was primarily attributable to long-term work including work to improve the safety culture. Total recordable injury frequency (TRIF) was 9.2 (9.7).

There was somewhat of an increase in energy use and direct emissions from production compared with a year earlier. These increases were in line with increased production. Starting with the Annual and Sustainability Report 2021, SSAB will track the Science based target, which entails an emissions reduction of 35% by 2032 compared to the level in 2018.

First with fossil-free steel

During the year, SSAB strengthened its leading position in the green transition of the steel industry, not least by rolling our first fossil-free steel and delivering it to Volvo Group. SSAB's fossil-free steel is based on HYBRIT technology, where the coal and coke used in traditional ore-based steelmaking is replaced with fossil free electricity and hydrogen. The process virtually eliminates carbon dioxide emissions in steelmaking. During 2026, SSAB plans to supply the market with fossil-free steel at a commercial scale following the replacement of the blast furnaces in Oxelösund with an electric arc furnace, that will be powered by fossil-free electricity.

We entered into several new partnerships during the year. The great interest shown by customers means that we are planning to convert to fossil-free production earlier than the original plan. However, this requires that society can ensure power transmission, effective permit processes and a level playing field with similar conditions within Europe and beyond.

Already now, SSAB's customers can improve the sustainability performance of their products by using steel better. This is made possible through increased use of high-strength steel, which means lower weight greater durability. During 2021, this work has resulted in annual CO2-savings of 12 million tonnes during the user phase of the products. This corresponds to more than SSAB's direct CO² emissions during the year.

More information on sustainability at SSAB is available at https://www.ssab.com/company/sustainability.

Risks and uncertainty factors

SSAB's fully owned subsidiary SSAB EMEA AB has a 50% holding in Oxelösunds Hamn AB. A legal process has been underway since 2017, when Swedish Customs has imposed specific purchase taxes and VAT on imports to a value of around SEK 260 million. There is a risk of Oxelösunds Hamn being required to pay the amount, in full or in part, and that SSAB EMEA AB will have to make a shareholder contribution so that Oxelösunds Hamn is able to pay. SSAB's view is that there is no obligation to impose specific purchase taxes and VAT and, hence, no provision has been made.

For information regarding other material risks and uncertainty factors, reference is made to the detailed description in the Annual Report for 2020.

Changes in Group management

Leena Craelius was appointed acting CFO from November 1, 2021. She succeeds Håkan Folin, who has left SSAB.

Dividend

The Board is to propose a dividend of SEK 5.25 (0.00) per share for 2021 and April 8, 2022 as the record date. If the annual general meeting adopts the Board's proposal, the dividend is expected to be paid on April 13, 2022. The proposal will involve a payout totaling SEK 5.4 billion to shareholders.

Annual general meeting

The annual general meeting will be held on April 6, 2022 in Stockholm. The form of the meeting will be announced in conjunction with the notice of the meeting, which is planned to be published in week 8. The Annual Report will be published in week 11 at the latest and will be available at the company's head office and at www.ssab.com.

Subsequent events

SSAB is leading the green transition in the steel industry through the unique HYBRIT initiative, which SSAB is driving forward together with its partners. Demand for fossil-free steel is showing strong growth and it is against this background that in January 2022, SSAB's Board took a strategic decision to fundamentally transform Nordic strip production and accelerate the company's green transition. The plan is to replace the existing production system with so-called mini-mills, which will result in a broader product program and improved cost position. The ambition is to eliminate virtually all carbon dioxide emissions 15 years earlier than the original plan announced earlier. However, for this to be done, the necessary infrastructure, electricity transmission capacity in particular, must be in place in time.

Strategic investments in the new strip production system are expected to total around SEK 45 billion during 2022-2030. At the same time, this will eliminate the need to invest in existing systems with blast furnaces, steel plants and rolling mills. SSAB has a strong financial position and the assessment is that the company can finance the strategic investment program through its own cash flow.

Accounting principles

This interim report has been prepared in compliance with IAS 34.

The accounting principles are based on International Financial Reporting Standards as adopted by the EU and ensuing references to Chapter 9 of the Swedish Annual Accounts Act. The accounts of the parent company have been prepared in compliance with RFR 2 and the Swedish Annual Accounts Act.

No material changes in accounting principles have taken place since the Annual Report for 2020.

Review

This Year-end report has not been reviewed by the auditors.

Stockholm, January 28, 2022

Martin Lindqvist President and CEO

Financial reports in accordance with IFRS – The Group

The figures in the tables have been rounded, which might affect aggregates

Consolidated statement of profit and loss, in summary

	2021	2020	2021	2020
SEK millions	Q4	Q4	Full-year	Full-year
Revenue	27,337	16,988	95,891	65,396
Cost of goods sold	-18,934	-15,450	-72,425	-61,617
Gross profit/loss	8,403	1,537	23,466	3,780
Selling and administrative costs	-1,332	-1,008	-4,620	-4,074
Other operating income and expenses	-59	29	13	-30
Affiliated companies, profit/loss after tax	-51	-2	-22	-1
Operating profit/loss	6,961	557	18,837	-325
Financial income	936	620	2,095	2,130
Financial expenses	-1,039	-758	-2,516	-2,607
Profit/loss for the period after financial items	6,859	418	18,416	-802
Tax	-1,399	-73	-3,743	312
Profit/loss for the period	5,460	346	14,673	-490
Of which attributable to:
- Parent Company's shareholders	5,458	343	14,662	-510
- Non-controlling interest	2	3	11	20

Consolidated statement of comprehensive income

	2021	2020	2021	2020
SEK millions	Q4	Q4	Full-year	Full-year
Profit/loss for the period after tax	5,460	346	14,673	-490
Other comprehensive income
Items that may be subsequently reclassified to the income statement
Translation differences for the period	1,541	-4,790	4,745	-6,252
Cash flow hedges	88	37	348	-131
Hedging of currency risks in foreign operations 1)	1	600	-218	778
Tax attributable to items that may be subsequently reclassified to the
income statement	-18	-177	-25	-181
Total items that may be subsequently reclassified to the income
statement	1,612	-4,330	4,850	-5,787
Items that will not be reclassified to the income statement
Remeasurements of the net defined benefit liability	-23	-18	71	-38
Tax attributable to items that will not be reclassified to the income
statement	7	-2	-12	2
Total items that will not be reclassified to the income statement	-16	-20	59	-35
Total other comprehensive income for the period, net after tax	1,597	-4,349	4,909	-5,823
Total comprehensive income for the period	7,055	-4,004	19,581	-6,312
Of which attributable to:
- Parent Company's shareholders	7,055	-4,002	19,568	-6,327
- Non-controlling interest	0	-2	13	15

1) Hedging is structured such that the net/equity ratio is unchanged in the event of changed exchange rates.

Consolidated statement of financial position, in summary

	2021	2020
SEK millions	Dec 31	Dec 31
Assets
Intangible assets	31,455	28,896
Tangible fixed assets	23,044	22,022
Right of use assets	2,457	2,344
Financial assets	1,559	1,348
Deferred tax receivables	309	233
Total fixed assets	58,824	54,843
Inventories	25,599	17,444
Accounts receivable	10,870	6,905
Current tax receivables	452	417
Other current receivables 1)	2,479	1,942
Cash and cash equivalents	13,796	7,051
Total current assets	53,195	33,759
Total assets	112,019	88,601
Equity and liabilities
Equity for the shareholders in the Parent Company	73,477	53,987
Non-controlling interest	31	109
Total equity	73,508	54,096
Deferred tax liabilities	1,476	376
Other long-term provisions	632	657
Long-term non-interest bearing liabilities	218	316
Long-term interest-bearing liabilities	8,492	9,031
Lease liability	1,920	1,801
Total long-term liabilities and provisions	12,736	12,181
Short-term interest-bearing liabilities	1,430	5,960
Lease liability	670	652
Accounts payable	16,219	11,068
Current tax liabilities	1,662	233
Other current liabilities and provisions	5,795	4,412
Total current liabilities and provisions	25,774	22,324
Total equity and liabilities	112,019	88,601
Pledged assets	1,024	878
Contingent liabilities	3,640	2,338

1) Other current receivables comprise short-term bank deposits (escrow agreement) in the amount of SEK 963 (818) million.

Consolidated statement of changes in equity, in summary

Equity attributable to the Parent Company's shareholders
		Other				Non
	Share	contributed		Retained		controlling	Total
SEK millions	capital		funds Reserves		earnings Total equity	interest	equity
Total equity, Dec 31, 2019	9,063	23,022	7,028	21,202	60,314	103	60,417
Changes Jan 1 - Dec 31, 2020
Total comprehensive income for the period			-5,781	-545	-6,327	15	-6,312
Dividend, non-controlling interest					-	-9	-9
Total equity, Dec 31, 2020	9,063	23,022	1,247	20,655	53,987	109	54,096
Changes Jan 1 - Dec 31, 2021
Total comprehensive income for the period			4,848	14,721	19,568	13	19,581
Result from transaction with owners of non
controlling interest				-78	-78	-82	-160
Dividend, non-controlling interest					-	-9	-9
Total equity, Dec 31, 2021	9,063	23,022	6,095	35,298	73,477	31	73,508

Valuation of financial assets and liabilities

Financial assets and liabilities in the balance sheet are valued based on their classification at acquisition value or fair value. Both interest rate derivatives and currency derivatives as well as electricity derivatives are valued at fair value. In the balance sheet item "Other current receivables" derivatives are valued at a total of SEK 643 (224) million and in the balance sheet item "Other current liabilities" derivatives are valued at a total of SEK 39 (805) million. In the balance sheet item "Financial assets" derivatives are valued at a total of SEK 94 (4) million and in the balance sheet item "Longterm non-interest bearing liabilities", derivatives are included valued at a total of SEK 1 (55) million.

Other financial assets and liabilities in the balance sheet are reported at acquisition value. In the case of valuation at fair value, the loans reported in the balance sheet item "Long-term interest-bearing liabilities" (including the short-term part) would exceed the reported amount by SEK 81 (176) million. However, since the loans will be held until maturity, this does not affect the reported value.

Assessment of the fair value of financial instruments

Classification takes place hierarchically on three different levels based on the input data used in valuing instruments. On level 1, listed prices on an active market are used, e.g. stock exchange prices. On level 2, observable market data regarding assets and liabilities other than listed prices are used, e.g. interest rates and return curves. On level 3, the fair value is determined based on a valuation technique which is based on assumptions which are not based on prices or observable data.

The fair value valuation of the financial assets in SSAB in based on data in accordance with level 2, with the exception of electricity derivatives, where the fair value is based on listed market prices, and which are therefore classified on level 1.

Consolidated statement of cash flows, in summary

	2021	2020	2021	2020
SEK millions	Q4	Q4	Full-year	Full-year
BUSINESS OPERATIONS
Profit from operating activities
Operating profit/loss	6,961	557	18,837	-325
Reversal of non-cash items:
-Depreciation, amortization and write-down of fixed assets	791	883	3,257	3,689
-Other non-cash items	97	36	-6	32
Received and paid interest	-72	-84	-373	-545
Tax paid	-644	122	-1,357	-56
Change in working capital	-1,027	2,036	-5,485	1,570
Cash flow from operating activities	6,107	3,549	14,873	4,366
INVESTING ACTIVITIES
Investments in plant and machinery	-1,826	-721	-3,382	-2,204
Sales of plant and machinery	1,176	28	1,235	114
Acquisitions, shares and operations	-27	-35	-130	-233
Divested shares and operations	-	39	-	143
Other investing activities	-3	-3	5	2
Cash flow from investing activities	-680	-693	-2,271	-2,178
FINANCING ACTIVITIES
Dividend, non-controlling interest	-	-1	-9	-9
Change in loans	-1,426	-692	-5,674	3,302
Change in financial investments	-126	124	-133	-715
Acquisitions shares, non-controlling interest	-30	-	-157	-
Other financing	747	-1,136	944	-1,893
Cash flow from financing activities	-834	-1,705	-5,029	685
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning of period	9,594	5,412	7,051	3,597
Cash flow for the period	4,593	1,152	7,572	2,872
Translation differences, cash and cash equivalents	-390	487	-827	581
CASH AND CASH EQUIVALENTS, END OF PERIOD	13,796	7,051	13,796	7,051
Contracted, non-utilized overdraft facilities	8,605	14,471	8,605	14,471
Disposable cash and cash equivalents (incl. non-utilized overdraft
facilities)	22,401	21,522	22,401	21,522

Key figures

	2021	2020	2021	2020
	Q4	Q4	Full-year	Full-year
Operating margin (%)	25	3	20	-1
Earnings per share (SEK)	5.30	0.33	14.24	-0.50
Equity per share (SEK)	71.35	52.42	71.35	52.42
Net debt/equity ratio (%)	-3	19	-3	19
Equity ratio (%)	66	61	66	61
Adjusted average number of shares during the period (millions)	1,029.8	1,029.8	1,029.8	1,029.8
Number of shares at end of period (millions)	1,029.8	1,029.8	1,029.8	1,029.8
Number of employees at end of period	14,235	13,974	14,235	13,974

Financial reports – The Parent Company

Parent Company´s statement of profit and loss, in summary

	2021	2020	2021	2020
SEK millions	Q4	Q4	Full-year	Full-year
Gross profit	-	-	-	-
Selling and administrative costs	-147	-86	-464	-315
Other operating income/expenses	83	28	248	164
Operating loss	-64	-58	-216	-150
Financial items	-10	-274	-225	-39
Profit/loss after financial items	-74	-332	-441	-190
Appropriations	983	-312	833	-312
Profit before tax	909	-645	392	-502
Tax	-241	-41	-140	-14
Profit after tax	668	-686	252	-516

Parent company´s statement of comprehensive income

	2021	2020	2021	2020
SEK millions	Q4	Q4	Full-year	Full-year
Profit after tax	668	-686	252	-516
Other comprehensive income
Items that may be classified to the income statement
Cash flow hedges	16	3	22	-5
Tax attributable to other comprehensive income	-3	-1	-5	1
Total items that will be reclassified to the income statement	12	2	18	-4
Other comprehensive income, net after tax	12	2	18	-4
Total comprehensive income for the period	680	-684	269	-520

Parent Company´s statement of financial position, in summary

	2021	2020
SEK millions	Dec 31	Dec 31
Assets
Fixed assets	72,358	75,096
Other current assets	8,728	8,084
Cash and cash equivalents	12,031	5,662
Total assets	93,117	88,842
Equity and liabilities
Restricted equity	9,964	9,964
Unrestricted equity	54,216	53,947
Total equity	64,180	63,911
Long-term liabilities and provisions	6,605	7,055
Current liabilities and provisions	22,332	17,876
Total equity and liabilities	93,117	88,842

Information about the business segments

SSAB has been organized into five reportable business segments with a clear profit responsibility. The business segments consist of the three steel divisions: SSAB Special Steels, SSAB Europe and SSAB Americas as well as the fully owned subsidiaries Tibnor and Ruukki Construction. Tibnor and Ruukki Construction are operated as independent subsidiaries.

SSAB Special Steels

SSAB Special Steels has global responsibility for the marketing and sales of all SSAB's quenched and tempered steels (Q&T) and hot-rolled, advanced high-strength steels (AHSS) with yield strengths of 690 MPa and above. SSAB Special Steels is responsible for steel and rolling production in Oxelösund (Sweden), and Mobile (USA), as well as for sales of the aforementioned products made in Raahe (Finland) and Borlänge (Sweden). When SSAB Special Steels sells steels made by another division, the revenue is reported by SSAB Special Steels and the accounts are settled between the divisions at the cost of goods sold.

SSAB Europe

SSAB Europe has responsibility for strip, plate and tubular products in Europe, and global profit responsibility for the Automotive segment (cold-rolled strip). SSAB Europe is responsible for steel and plate production in Raahe and Hämeenlinna (Finland), and in Luleå and Borlänge (Sweden).

SSAB Americas

SSAB Americas has profit responsibility for heavy plate in North America, and for steel and plate production in Montpelier, USA.

Tibnor

Tibnor is the Group's distributor of a full range of steel and non-ferrous metals in the Nordic region and Baltics. Tibnor buys and sells materials produced both by SSAB and other suppliers.

Ruukki Construction

Ruukki Construction is responsible for the sales and production of energy-efficient building and construction solutions, with a focus on northern and Eastern Europe. Ruukki Construction includes Plannja.

Specification of external revenue

The following table describes external revenue by business segments broken down by geographical areas and product areas.

External revenue by business segments, full-year

External revenue Full-year 2021			Business segments
	SSAB Special	SSAB	SSAB		Ruukki
SEK millions	Steels	Europe	Americas	Tibnor	Construction	Total
Geographical areas
Sweden	596	8,644	-	4,600	1,421	15,261
Finland	320	5,645	-	2,114	1,563	9,642
Denmark	171	1,764	-	2,844	164	4,943
Germany	1,443	2,366	-	60	1	3,871
Poland	922	2,284	-	42	949	4,196
Italy	1,390	2,103	-	1	-	3,493
Other EU-27	3,157	6,263	121	691	1,108	11,340
Great Britain	533	1,351	-	0	3	1,887
Norway	62	782	-	1,825	562	3,231
Other Europe	1,681	1,040	-	28	208	2,956
USA	4,525	1,083	17,931	0	1	23,540
Canada	1,481	-	2,161	-	4	3,646
Rest of the world	6,387	1,130	353	14	3	7,886
Total	22,666	34,454	20,566	12,219	5,986	95,891
Product area
Steel products	22,080	31,889	20,566	-	-	74,535
Trading operations	-	-	-	12,219	-	12,219
Ruukki Construction operations	-	-	-	-	5,986	5,986
Slabs, by-products and scrap	256	2,480	-	-	-	2,736
Other	331	85	0	-	-	415
Total	22,666	34,454	20,566	12,219	5,986	95,891

External revenue Full-year 2020			Business segments
	SSAB Special	SSAB	SSAB		Ruukki
SEK millions	Steels	Europe	Americas	Tibnor	Construction	Total
Geographical areas
Sweden	336	5,149	-	3,100	1,474	10,059
Finland	235	3,490	-	1,426	1,536	6,687
Denmark	104	1,156	1	1,745	116	3,122
Germany	1,018	2,077	-	29	2	3,125
Poland	569	1,731	-	20	771	3,090
Italy	754	1,182	-	1	0	1,937
Other EU-27	2,258	4,266	-	455	926	7,905
Great Britain	375	942	-	0	6	1,324
Norway	64	505	-	1,315	512	2,396
Other Europe	1,208	654	-	17	142	2,022
USA	3,163	868	11,672	0	1	15,704
Canada	873	-	1,320	-	2	2,195
Rest of the world	4,750	902	164	13	2	5,831
Total	15,706	22,922	13,158	8,120	5,490	65,396
Product area
Steel products	15,137	21,338	13,158	-	-	49,632
Trading operations	-	-	-	8,120	-	8,120
Ruukki Construction operations	-	-	-	-	5,490	5,490
Slabs, by-products and scrap	258	1,495	-	-	-	1,753
Other	310	90	-0	-	0	400
Total	15,706	22,922	13,158	8,120	5,490	65,396

External revenue by business segments, the fourth quarter

External revenue Q4 2021			Business segments
	SSAB Special	SSAB	SSAB		Ruukki
SEK millions	Steels	Europe	Americas	Tibnor	Construction	Total
Geographical areas
Sweden	150	2,407	-	1,320	375	4,252
Finland	93	1,909	-	586	389	2,977
Denmark	16	535	-	758	44	1,353
Germany	404	637	-	13	0	1,055
Poland	252	589	-	12	200	1,053
Italy	476	556	-	0	-	1,032
Other EU-27	895	1,702	39	157	290	3,083
Great Britain	138	338	-	-	3	479
Norway	19	321	-	534	152	1,025
Other Europe	468	430	-	15	60	973
USA	1,277	351	5,282	-	0	6,910
Canada	398	-9	713	-	0	1,103
Rest of the world	1,695	260	84	2	1	2,042
Total	6,280	10,026	6,118	3,399	1,514	27,337
Product area
Steel products	6,121	9,238	6,118	-	-	21,477
Trading operations	-	-	-	3,399	-	3,399
Ruukki Construction operations	-	-	-	-	1,514	1,514
Slabs, by-products and scrap	78	769	-	-	-	847
Other	81	20	-	-	-	100
Total	6,280	10,026	6,118	3,399	1,514	27,337

External revenue Q4 2020			Business segments
	SSAB Special	SSAB	SSAB		Ruukki
SEK millions	Steels	Europe	Americas	Tibnor	Construction	Total
Geographical areas
Sweden	105	1,407	-	813	363	2,687
Finland	60	801	-	330	312	1,504
Denmark	28	265	-	416	80	789
Germany	228	672	-	8	1	909
Poland	167	453	-	4	182	806
Italy	197	393	-	0	-	589
Other EU-27	591	1,286	-	108	109	2,094
Great Britain	116	336	-	0	0	453
Norway	12	121	-	314	115	563
Other Europe	353	166	-	5	41	565
USA	735	254	2,956	0	0	3,946
Canada	228	-	389	-	-	617
Rest of the world	1,150	236	79	2	0	1,467
Total	3,969	6,390	3,424	2,000	1,205	16,988
Product area
Steel products	3,795	5,828	3,424	-	-	13,047
Trading operations	-	-	-	2,000	-	2,000
Ruukki Construction operations	-	-	-	-	1,205	1,205
Slabs, by-products and scrap	88	541	-	-	-	629
Other	86	21	0	-	-	107
Total	3,969	6,390	3,424	2,000	1,205	16,988

Relevant reconciliations of non-IFRS-based performance measures

SSAB has applied the guidelines issued by ESMA (European Securities and Markets Authority) on alternative performance measures (AFMs). These performance measures are not defined or specified in accordance with IFRS, but provide complementary information to investors and company management about the company's financial position and development. Besides the definitions below, definitions of the non-IFRS-based performance measures below can be found in the Annual Report.

Operating profit/loss before depreciation/amortization, EBITDA

	2021	2020	2021	2020
SEK millions	Q4	Q4	Full-year	Full-year
Operating profit/loss	6,961	557	18,837	-325
Depreciation and impairment	791	883	3,257	3,689
Operating profit/loss before depreciation/amortization, EBITDA	7,753	1,439	22,094	3,364

Return on capital employed before tax, rolling 12 months

	2021	2020
SEK millions	Full-year	Full-year
Operating profit/loss	18,837	-325
Financial income	2,095	2,130
Total	20,932	1,805
Average capital employed	77,975	79,059
Return on capital employed before tax, %	27%	2%

Return on equity after tax, rolling 12 months

	2021	2020
SEK millions	Full-year	Full-year
Profit/loss for the period, after tax	14,673	-490
Average equity	62,586	59,430
Return on equity after tax, %	23%	-1%

Operating cash flow

	2021	2020	2021	2020
SEK millions	Q4	Q4	Full-year	Full-year
Cash flow from operating activities	6,107	3,549	14,873	4,366
Reversal received and paid interests	72	84	373	545
Reversal tax paid	644	-122	1,357	56
Maintenance expenditures 1)	-1,023	-606	-2,053	-1,622
Other investing activities 2)	679	24	746	115
Operating cash flow	6,479	2,930	15,296	3,460

1) See the definition of Maintenance capital expenditures in the Annual Report.

2) Other investing activities primarily refer to cash flow from long-term receivables and investments and purchase of emission allowances.

Net debt

	2021	2020
SEK millions	Dec 31	Dec 31
Interest-bearing assets 1)	15,337	8,289
Interest-bearing liabilities2)	12,991	18,567
Net debt	-2,346	10,278

1) Interest-bearing assets primarily refer to long-term and current interest-bearing receivables and investments, together with derivatives and cash and cash equivalents. 2) Interest-bearing liabilities primarily consist of long-term and current interest-bearing debt, pension liability and derivatives.

Financial information, per quarter

Since July 1, 2021, the steel mill in Mobile in the USA has been part of SSAB Special Steels. To reflect the organizational change, SSAB has restated the historical figures as if the new set-up had taken place on December 31, 2018. These amounts have been restated applying the Group's accounting principles. The new set-up has had no impact on the Group's total financial reports, only on the information about the business segments SSAB Special Steels and SSAB Americas. For further details, go to www.ssab.com.

The Group's result per quarter, excluding items affecting comparability

SEK millions	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21
Revenue	20,017	20,654	18,840	16,973	18,772	15,155	14,481	16,988	19,661	23,673	25,220	27,337
Operating expenses	-17,295	-18,269	-17,524	-17,086	-17,500	-14,442	-14,543	-15,544	-16,820	-18,779	-18,644	-19,534
Depreciation/amort.	-1,081	-1,102	-1,028	-1,005	-942	-956	-907	-885	-867	-815	-782	-791
Affiliated companies	33	33	12	-14	13	-7	-5	-2	19	4	5	-51
Financial items	-91	-86	-99	-114	-123	-114	-102	-138	-106	-101	-111	-103
Result before tax	1,583	1,230	201	-1,245	221	-365	-1,075	418	1,887	3,981	5,689	6,859

Revenue per quarter and business segment

SEK millions	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21
SSAB Special Steels	4,897	5,159	4,531	3,988	4,553	3,997	3,581	4,070	5,122	5,845	5,993	6,549
SSAB Europe	8,577	8,814	7,637	6,702	8,139	6,189	6,153	7,472	8,829	10,246	10,789	12,446
SSAB Americas	4,862	4,546	4,441	3,583	3,871	3,211	2,709	3,448	3,644	4,822	6,061	6,153
Tibnor	2,264	2,534	2,179	2,172	2,421	2,037	1,752	2,031	2,656	3,214	3,063	3,443
Ruukki Construction	1,274	1,690	1,794	1,752	1,480	1,439	1,391	1,206	1,122	1,593	1,766	1,518
Other	0	0	0	0	-	-	-	-	-	-	-	-
Group adjustments	-1,857	-2,089	-1,741	-1,224	-1,691	-1,718	-1,105	-1,239	-1,713	-2,047	-2,452	-2,773
Total	20,017	20,654	18,840	16,973	18,772	15,155	14,481	16,988	19,661	23,673	25,220	27,337

Historical figures have been restated due to the reorganization of Mobile in the third quarter of 2021.

Operating profit/loss before depreciation/amortization, EBITDA, per quarter and business segment, excluding items affecting comparability

SEK millions	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21
SSAB Special Steels	995	805	624	12	738	758	313	794	1,189	1,390	1,220	1,777
SSAB Europe	738	469	-67	-194	413	-133	-221	496	1,139	1,900	2,912	3,690
SSAB Americas	966	934	582	15	169	59	-348	57	301	1,126	1,917	2,235
Tibnor	78	73	47	8	50	65	42	83	252	486	552	390
Ruukki Construction	30	141	179	116	55	128	185	116	87	202	270	202
Other	-52	-3	-37	-83	-140	-172	-37	-106	-108	-206	-288	-540
Total	2,755	2,419	1,327	-127	1,286	705	-66	1,439	2,860	4,899	6,582	7,753

Historical figures have been restated due to the reorganization of Mobile in the third quarter of 2021.

Operating profit/loss per quarter and business segment, excluding items affecting comparability

SEK millions	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21
SSAB Special Steels	717	528	352	-290	450	469	34	518	914	1,175	1,006	1,540
SSAB Europe	347	66	-480	-609	0	-566	-631	83	758	1,512	2,524	3,301
SSAB Americas	917	888	528	-58	115	6	-395	18	258	1,084	1,871	2,188
Tibnor	38	29	2	-39	12	29	6	48	218	449	515	351
Ruukki Construction	-14	95	134	67	11	86	145	72	48	162	229	161
Depr. surplus val, IPSCO	-201	-207	-118	-39	-25	-20	-16	-18	-19	-17	-18	-18
Depr. surplus val, Rautaruukki	-64	-66	-67	-67	-66	-69	-66	-66	-63	-64	-28	-8
Other	-67	-18	-52	-97	-153	-186	-50	-100	-120	-218	-300	-552
Total	1,674	1,316	300	-1,131	343	-251	-973	557	1,993	4,083	5,800	6,961

Historical figures have been restated due to the reorganization of Mobile in the third quarter of 2021.

Items affecting comparability in operating profit/loss, per quarter and business segment

SEK millions	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21
SSAB Special Steels	-	-	-	-	-	-	-	-	-	-	-	-
SSAB Europe	-	-	-	-	-	-	-	-	-	-	-	-
SSAB Americas	-	-	-	-	-	-	-	-	-	-	-	-
Tibnor	-	-	-	-52	-	-	-	-	-	-	-	-
Ruukki Construction	-	-	-	-	-	-	-	-	-	-	-	-
Other	-	-	-150	5	-	-	-	-	-	-	-	-
Total	-	-	-150	-47	-	-	-	-	-	-	-	-

Production and shipments

Thousand tonnes	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21
Crude steel production
SSAB Special Steels	729	673	695	393	639	608	415	645	648	649	469	545
SSAB Europe	993	1,120	930	926	1,130	872	837	1,207	1,157	1,204	1,080	1,193
SSAB Americas	277	307	277	303	312	299	267	304	297	315	293	328
Total	2,000	2,100	1,902	1,621	2,081	1,779	1,519	2,156	2,103	2,168	1,842	2,066
Rolling production
SSAB Special Steels	459	435	449	323	465	455	336	430	456	466	395	351
SSAB Europe	1,162	1,198	980	876	1,190	836	864	1,220	1,207	1,290	1,081	1,163
SSAB Americas	267	292	266	285	300	282	238	321	272	294	291	303
Total	1,889	1,926	1,696	1,484	1,955	1,573	1,438	1,970	1,935	2,050	1,766	1,818
Steel shipments
SSAB Special Steels	338	339	299	249	305	266	259	297	376	388	348	350
SSAB Europe	907	909	794	752	955	695	751	913	980	980	795	832
SSAB Americas	500	475	521	478	527	460	462	569	480	494	484	413
Total	1,744	1,722	1,614	1,479	1,787	1,422	1,472	1,779	1,837	1,861	1,627	1,595

Historical figures for crude steel production and rolling production have been restated due to the reorganization of Mobile in the third quarter of 2021.

Sensitivity analysis

The approximate full-year effect on profit/loss after financial items and earnings per share of changes in significant factors is shown in the sensitivity analysis below.

		Effect on profit/loss
		before tax, SEK	Effect on earnings	Effect on equity,
% change	Change %	millions	per share, SEK 2)	SEK millions 2)
Steel price - steel operations	+/- 10	+/-7,910	+/-6.10	+/-6,281
Volume - steel operations 1)	+/- 10	+/-2,640	+/-2.04	+/-2,096
Iron ore prices	+/- 10	+/-1,370	+/-1.06	+/-1,088
Coal prices	+/- 10	+/-340	+/-0.26	+/-270
Scrap metal prices	+/- 10	+/-1,020	+/-0.79	+/-810
Interest rate	+/- 1	+/-60	+/-0.05	+/-48
Krona index 3)	+/- 5	+/-830	+/-0.64	+/-659

1) Excluding the effect of lower capacity utilization (underabsorption).

2) Calculated based on tax at 20.6%.

3) Calculated on SSAB's exposure without currency hedging. Any weakening of the Swedish krona entails a positive effect

This report has been published in Swedish and English. In the event of any differences between the English translation and the Swedish original, the Swedish Report shall prevail.

For further information:

Per Hillström, Head of Investor Relations, Tel +46 70-295 29 12 Viktoria Karsberg, Head of Corporate Identity and Group Communications, Tel +46 72-233 52 88

Interim report for January-March 2022

The interim report for the first quarter of 2022 will be published on April 26, 2022.

SSAB AB (publ)

P.O. Box 70, SE-101 21 Stockholm, Sweden Telephone +46 8-45 45 700. Telefax +46 8-45 45 725 Visiting address: Klarabergsviadukten 70 D6, Stockholm E-post: info@ssab.com www.ssab.com