Swiss Steel Group

Media and Investor Presentation Q2 2022 Results

Lucerne, August 16, 2022

Disclaimer

Forward-looking statements

This presentation contains forward-looking statements about developments, plans, intentions, assumptions, expectations, convictions, possible impacts or the description of future events, outlooks, revenues, results or situations, for example. These are based upon the company's current expectations, convictions and assumptions, but could materially differ from any future results, performance or achievements. We are providing this communication as of the date hereof and do not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

2

Solid Q2/22 results but uncertainties have intensified

  • Sales volume came in at 457kt in Q2/22 which is 9.2% below Q2/21 due to missing volume from the stoppage of the steel mill in Ugine and lower demand from automotive
  • Order book decreased to 590kt compared to 726kt in Q1/22 reflecting lower market demand as well as hesitancy of customers to place new orders before the summer break
  • Average sales price at 2,442 EUR/t increased versus 2,145 EUR/t in Q1/22 and 1,621 in Q2/21 reflecting continued price increases for raw material and energy, supported by base price increases
  • Adjusted EBITDA at EUR 96.0 mn, an increase by EUR 30.6 mn compared to Q2/21 and EUR 21.0 mn versus Q1/21 driven by improved margins
  • NWC increased from EUR 1,192 mn in Q1/22 to EUR 1,307 mn in Q2/22 mainly driven by a higher valuation of inventories
  • Free Cash Flow at EUR -66.0 mn in Q2/22 (EUR - 66.6 mn in Q2/21) despite good operating result due to additional investment in net working capital
  • Equity increased by EUR 146 mn from EUR 448.7 mn (equity ratio 20.1%) at year-end 2021 to EUR 594.7 (21.6%), mainly due to the strong operational result and positive valuation effects from pension obligation
  • Net debt at EUR 936 mn in Q2/22 from EUR 721 mn in Q4/21 driven by negative free cash flow
  • New sales organization based on the Divisions Stainless Steel, Engineering Steel and Tool Steel starting September 2022
  • Green Steel - become one of the most ecological and efficient steel producers
  • Ugine steel mill is running again since mid June

3

SSG 2025: The new Divisions Stainless Steel, Engineering Steel and Tool Steel go into operation in September

Transitioning the portfolio of loosely connected companies…

…to one integratedSwiss Steel Group

  • with increased (market) effectiveness
  • with increased (cost) efficiency
  • consequently performance driven

Group Functions -

consolidated on Group level with close integration to business to drive effectiveness and synergies

Divisions -

Production Assets -

"market back" steering

focus on quality, service

based on integrated P&L

level and cost efficiency

4

Swiss Steel continues to expand its position as one of the leading sustainable special steel producers and commits to SBTi

Approved committment to SBTi

Green Steel Product Offering

1. Developing and

2. Increasing

executing a clear

transparency on

decarbonization

emissions per site and

Illustrative SSG decarbonization

strategy

product

roadmap [In development]

3. Working in partnership

Recently communicated partnerships

along the value chain,

providing green steel solutions

to help decarbonize industries

5

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Swiss Steel Holding AG published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 05:11:06 UTC.