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SSAB and Ruukki have now joined forces

Nov 12, 2014

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Ruukki

SSAB and Ruukki have now joined forces. "A stronger, lighter, more sustainable world"
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Page 1: SSAB and Ruukki have now joined forces

SSAB and Ruukki have joined forces

Page 2: SSAB and Ruukki have now joined forces

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“It’s a deal! SSAB and Ruukki are now one”

Page 3: SSAB and Ruukki have now joined forces

Content

New SSAB – More competitive together

Our vision and history

Company overview

Steel business

Tibnor – Nordic Steel Distribution business

Ruukki Construction

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Page 4: SSAB and Ruukki have now joined forces

New SSAB – More competitive together

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New SSAB – More competitive together

Strengthened customer offering

Enhanced ability to invest in product development and R&D – innovation leader

Enhanced potential for profitable growth in Advanced High Strength Steels (AHSS) and Quenched & Tempered steels (Q&T)

Increased flexibility and cost-effectiveness

Annual cost synergies of up to SEK 1.4 billion (EUR 150 million) realized over a three year period

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Our vision and history

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Our vision

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Together with our customers, SSAB will go further than anyone to realize the full potential of lighter, stronger and more durable steel products

» A stronger, lighter and more sustainable world «

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We share a common heritage of steel making

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SSAB was formed in 1978 through a merger of three companies: Domnarvets Jernverk (originally started in 1878), Norrbottens Järnverk (1940) and Oxelösunds Järnverk (1914). This was a big restructuring of the Swedish steel industry led by the state

In 1989, SSAB’s shares were listed on the Stockholm Stock Exchange

With the acquisition of IPSCO in North America in 2007, SSAB carried out one of the largest Swedish corporate acquisitions of modern times

Rautaruukki was established in 1960 to ensure the availability of raw materials for the Finnish shipbuilding and other metal industries

Pig iron production started in Raahe in 1964 Cold-rolling and galvanizing started in

Hämeenlinna in 1972 In the early 1990s, Ruukki expanded into the

construction business In 2004, all the different companies in

Rautaruukki Corporation started using the marketing name Ruukki

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Company overview

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New SSAB – Strong globally and locally

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New SSAB in brief Nordic and US-based steel company with a global reach Leading producer of Advanced High Strength Steels (AHSS)

and Quenched & Tempered steels (Q&T), standard strip, plate and tubular products as well as construction solutions

Preliminary net sales in 2013, appr. SEK 56 billion (EUR 6.4 billion)

About 17,300 employees in 50 countries Steel production facilities in Sweden, Finland and the US Annual steel production capacity of 8.8 million tonnes Organized in five divisions:

– SSAB Special steels, SSAB Europe, SSAB Americas, Tibnor, Ruukki Construction

Listed on the NASDAQ OMX Nordic Exchange in Stockholm and secondary listing on NASDAQ OMX in Helsinki

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Five divisions – Leading in their businesses

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Global steel and service partner in value added Advanced High Strength Steels (AHSS) and Quenched & Tempered steels (Q&T)

SSAB Europe SSAB Americas

Tibnor Ruukki Construction

SSAB Special Steels

Nordic-based steel producer of high-quality strip, heavy plate and tubes

North America-based steel producer of high-quality heavy plate

Nordic full-service steel distribution partner

European provider of energy efficient building and construction solutions

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SSAB Special Steels SSAB Europe SSAB Americas Tibnor Ruukki Construction

Olavi Huhtala Charles Schmitt Mikael Nyquist Marko Somerma

Finance Legal and Strategy HR, Procurement, Shared Services Communications Market

Development

Håkan Folin

Divisions

Functions

Jonas Bergstrand Monika Gutén

Martin LindqvistPresident and CEO

Per Olof Stark

Technical Development

Gregoire Parenty

Group Executive Committee (GEC)

Taina Kyllönen Martin Pei

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Steel business

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Strategic focus areas for the steel business

Growth in Advanced High Strength Steels (AHSS) and Quenched & Tempered steels (Q&T) – pursue new segments and geographies

Maintain home market leadership – clear ambition to remain leader in both North America and the Nordics

Growth in value added services – provide more customer value

Improve customer experience – continue to develop the SSAB way of engaging customers

Improve profitability through cost synergies, efficiency and flexibility

Strengthen performance culture – combine the “best of both”

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Nordic and US-based steel company with global reach

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Luleå – employees 1,200

Broadened steel production base in the Nordics1

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Raahe – employees 2,800

Hämeenlinna – employees 900

Borlänge – employees 2,100

Oxelösund – employees 2,300

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Strip productsSSAB Europe

Steel-making, heavy plates and strip products, SSAB Europe

Strip products and tubesSSAB Europe

Steel-makingSSAB Europe

Steel-making, heavy platesSSAB Special Steels

17Employees per December 2013

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Two production facilities in the US

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Montpelier, Iowa

Mobile, AlabamaEmployees: 592Heavy plate mill, 1.2 MTONScrap based EAF productionQ&T lines

Employees: 497Heavy plate mill, 1.2 MTONScrap based EAF productionR&D Centre

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SSAB Production locationsWear Solutions

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1

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Tube and infrastructure production in the Nordics

Strong set-up for producing tubes, profiles and infrastructure components – 3 tube works in Finland producing

piles, structural hollow sections and precision tubes

– 1 tube works in Finland producing sections and profiles

– 1 tube works in Sweden producing line pipes and structural hollow sections

– Also Hämeenlinna and Borlänge sites have tube production

SSAB tube millsRuukki tube mills

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Key customer segments for steel business

Heavy transport

Automotive

Construction machinery

Construction

Material handling

Energy

Service centers

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Strong product brands

Structural Protection Automotive Wear Color-coatedEngineering and tooling

Joint product brand portfolio for the new SSAB will be ready at the beginning of 2015

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Wear services – Products and applications

Products and applications for the wear market and aftermarket

“One stop shop” for Wear Services within, e.g. infrastructure and recycling

Strengthen presence within the mining sector

By expanding our offering, we become a more complete supplier

With focused resources and work methods we work close to the end-user

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Tibnor – Nordic Steel Distribution business

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Strategic focus areas for Tibnor Grow home market leadership

– Growth in standard and special steels– Expand value-added services

Establish one true Nordic set-up– Specialization and optimization of assets and flows

across countries– Expand collaboration with SSAB Europe and SSAB

Special Steels

Expand distribution offering in the Nordics– Expand multi-metal product and processing services

offering– Increase distribution margin through:

• Realization of synergies in assets, purchasing and SG&A*• Growth of multi-metal offering in all countries• Focusing on value-added distribution

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Strong combined set-up of processing sites for SSAB products– Value added services processing

sites for plate and carbon steel– 2 value added services processing

sites for tubes

Leading Nordic multi-metal distribution division

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Ruukki Construction

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Strategic focus areas for the construction business Rapid growth and role change in roofing

– Build and roll-out replicable business model– Expand distribution and installation to get closer to

consumers

Run systematic path to energy-efficient and functional envelopes – Differentiate business focusing on energy-efficient

and functional products – Focus on fewer market segments and growth within

them

From tailored towards modular concept buildings – Step change in commercial and operational project

management excellence – Develop repeatable modular solutions

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Building a major European construction business

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2013 Plannja Ruukki Combined

Employees 340 3,200 3,500Manufacturing sites 4 12 16

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Strong product portfolio under Ruukki and Plannja brands

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PROFILESROOFPRODUCTS STEEL STRUCTURESPANELS

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