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                        Global megatrends affecting SSAB

                        Climate change and resource scarcity

                        Description

                        • Increasing consumption of world’s natural resources
                        • To meet the goals set in the Paris Agreement, global greenhouse gas emissions need to be radically reduced in order to limit global warming

                        Impacts on steel industry dynamics

                        • Increased demand for sustainable, recyclable material, e.g. steel
                        • Cost of carbon emissions
                        • Optimization of available steel capacity to promote more resource and CO2 efficient products/processes (e.g., China closing down overcapacity and environmentally inefficient production)

                        SSAB's response

                        • Helping customers to innovate their products and reducing their CO2 footprint through upgrading to high-strength steel

                        SSAB works toward a fossil-free steelmaking process through the HYBRIT initiative and by eliminating other fossil related emissions, with a goal to be able to offer fossil-free steel to the market in 2026 and become fossil-free throughout our entire operation by 2045

                        Population growth and urbanization

                        Description

                        • Growing global population
                        • Rapid urbanization primarily taking place in developing countries
                        • Urban areas need to be continuously developed to manage the increasing complexity

                        Impacts on steel industry dynamics

                        • Increased demand for steel in construction, infrastructure and energy sector
                        • Increased demand for sustainable and energy-efficient buildings

                        SSAB's response

                        • Developing new products and offerings to meet challenges of the future
                        • Offering broad spectrum of products to be used in construction and infrastructure, as well as in construction machinery, renewable energy plants

                        Digitalization

                        Description

                        • New technologies available at affordable cost
                        • Digitalization impacting the business model for most companies

                        Impacts on steel industry dynamics

                        • More efficient operating practices available
                        • Digital services adding more transparency in the value chain
                        • E-commerce and trade platforms impacting demand-supply dynamics

                        SSAB's response

                        • Using robotics, machine learning and advanced analytics to improve production stability and process efficiency
                        • Renewing digital service portfolio to improve customer experience
                        • Developing new digital tools such as SSAB SmartSteel to help customers realize the full potential of our steel

                        Changing geopolitical landscape

                        Description

                        • Increasing protectionism, e.g., trade protection measures
                        • Increased steel demand in developing economies

                        Impacts on steel industry dynamics

                        • Higher importance of regional markets
                        • Restrictions on trade and other cross-border flows

                        SSAB's response

                        • Securing leadership positions in our home markets with cost leadership and preferred supplier status
                        • Taking an active stance for free and fair trade
                        • Advancing SSAB’s position in emerging markets for high-strength steels
                        • Improve production capabilities, so that each site can cover a broader product range

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