Årsredovisning 2008 Annual report 2009

With our high strength steels, cranes become lighter, truck beds stronger, and containers more durable.

Our customers achieve reduced costs and improved performance. This benefits the customers and the environment. This is the way we create a stronger, lighter and more sustainable world.

The cover does not show an exact depiction of an SSAB application, but the originals on which it is based are some of the longest truck cranes to have been constructed using SSAB's high strength steels. They can be over 30 meters long and, when fully extended, carry loads in excess of one tonne.

SSAB in 90 seconds

SSAB is a leading manufacturer of high strength and quenched steels, with production in Sweden and the United States. We develop solutions that increase the competitiveness of our customers. In 2009, sales amounted to SEK 29,8 billion.

Significant events during 2009 Table of contents

The operations

2009 was marked by a very weak steel market as a result of the global financial crisis
Slight improvement in demand toward the end of the year
Strong cash flow despite an operating loss
The cost reduction program proceeded well
Continued reduction in the number of accidents

Profit

Sales declined by 45 percent to SEK 29,838 (54,329) million
Profit after financial items amounted to SEK -2,061 (8,953) million
Profit after tax was SEK -879 (6,508) million. Earnings per share were SEK -2.69 (19.90)
Cash flow from the current operations was SEK 3,387 (5,387) million
Net debt/equity ratio at year-end was 49 (48) percent
Proposed dividend of SEK 1.00 (4.00) per share

	Page
Significant events during 2009	1
Comments by the Chief Executive Officer	2
Strategies and targets	4
SSAB's offering	7
Report of the Directors
Table of contents	9
Market	10
Sales and profit	11
Capital expenditures and cash flow	16
Compensation to senior executives	20
Risk and sensitivity analysis	22
Outlook for 2010	23
SSAB Strip Products	24
SSAB Plate	26
SSAB North America Tibnor	28 30
Other companies	32
Sustainability
- Environment	34
- Employees	39
- Suppliers	42
SSAB on the stock exchange	44
5-year summary	46

Financial reports
Consolidated income statement	48
Consolidated statement of comprehensive income	48
Consolidated balance sheet	49
Consolidated statement of changes in equity	50
Consolidated cash flow statement	51
Parent company's income statement	52
Parent company's balance shee	53
Parent company's changes in equity	54
Parent company's cash flow statement	55
Accounting and valuation principles	56
Table of contents, notes	64
Proposed allocation of profit	100
Auditor's report	101
Corporate governance report	104
Board of Directors	114
Group Executive Committee	116
Annual General Meeting,
Nomination Committee, Calendar	118
Steel Talk ABC – a glossary	119
Addresses	120

The Annual Report is published in Swedish and English. In the event of differences between the English translation and the Swedish original, the Swedish Annual Report shall prevail.

Prompt response lessened the impact of the crisis

Without question, 2009 was dominated by the global economic downturn in the wake of the financial crisis. Almost all markets and segments in which we operate were affected. Although this led to a negative result, we succeeded in maintaining a positive cash flow.

We are living in a period of rapid change. It is crucial to adapt quickly to the market dynamics. At the same time, one must have a clear and unambiguous strategy for the future.

During the autumn of 2008, SSAB initiated an ambitious cost reduction program. Thanks to the excellent cooperation and efforts of our employees, we exceeded our initial targets. The program resulted in savings of SEK 750 million in 2009 and is expected to generate annual sustainable savings of SEK 1 billion commencing 2010. Together with other efficiency enhancement measures, this resulted in a positive operating cash flow of SEK 4,868 million.

In particular, it should be noted that our North American business recovered quickly from the economic crisis and was able to report positive earnings as early as the third quarter. Key factors include two modern steel mills and a flexible organization which is able to adapt quickly to market fluctuations.

Demand in our markets was very weak during most of the year. The only real exceptions were the light vehicle segment within our strip products operations, as well as the aftermarket segment, Hardox Wearparts, within the plate operations. As a consequence of the weak market conditions, we ceased all slab production in Sweden for more than two months. This was an extremely unusual measure in response to an extremely unusual situation.

At the same time, we were able to exploit the slow pace of production for additional training and skills development. Also we substantially reduced the percentage of accidents with absense. The number of accidents continues to be low in our U.S. operations, and we have now also significantly improved the situation at our Swedish plants.

The capital expenditure program of SEK 5.3 billion, decided upon in the autumn of 2008, was under constant review during 2009. In light of market conditions, only parts of the investments were commenced. Those are primarily our investment in quenched steel in Borlänge. In the long-term, our ambition is to continue to invest in order to increase our quenched steel capacity.

Our strategy of being the leader in high strength steels, where the acquisition of IPSCO was an important step, remains unchanged. During the year, we further strengthened our ambitions of increasing the share of niche products to 50 percent of our deliveries in 2015. Our strategy also includes maintaining our position in our domestic markets; i.e., in the Nordic region and North America. At the same time, we will establish a stronger foothold in Asia with particular focus on China. We will also coordinate our entire marketing and sales organization in order to provide a clearer and more focused product and service offering to our customers.

To support this new strategy, we decided to introduce a new organization structure. Effective January 1, 2010, we have three geographic business areas: SSAB EMEA (Europe, the Middle East and Africa); SSAB Americas (North and Latin America); and SSAB APAC (Asia, Australia and New Zealand). The new business structure replaces the divisions SSAB North America, SSAB Strip Products and SSAB Plate.

SSAB has demonstrated a pioneering position as one of the leading steel companies which has progressed the most to limit carbon dioxide emissions from blast furnacebased production. With currently available technology, it is not possible to go much further to limit emissions from iron ore-based steel production. SSAB is intensifying its research efforts to develop new production methods. We have become a core member of the European cooperation project, ULCOS (Ultra–Low Carbon dioxide Steelmaking), which is aimed at developing production methods to halve carbon dioxide emissions from steel production in the longterm. We have the ambition to enhance the efficiency of our existing manufacturing processes; by 2012, we aim to reduce carbon dioxide emissions by 2 percent per produced tonne (under normal production conditions at our blast furnacebased plants).

SSAB's focus on high strength steels is in itself beneficial to the environment. Light and high strength steel applications save materials and energy, both during production and for the end user. The use of SSAB's steels in vehicles, excavation machinery and cranes give products with a longer life and reduced fuel consumption, which in turn lead to lower emissions.

Naturally, reduced fuel consumption and increased lifespan are of greatest importance for our customers. It has been particularly pleasing to note that during this crisis year, we have had more development projects in cooperation with our customers than at any time in our history. This demonstrates that there is a long-term interest in SSAB's niche products.

The number of shareholders continued to increase during the year and has now reached approximately 70,000. In light of the negative earnings and the fact that our net gearing is higher than our long-term target, the Board has proposed that the dividend be reduced to SEK 1.00 per share.

The development going forward is difficult to assess. Most signs indicate that the world's steel industry is through the worst crisis and that the market has stabilized. However, it remains uncertain how quickly the recovery will take place. But the world will continue to need steel in the future. Infrastructure and transport systems need to be further developed. As a consequence of increased demands for lower carbon dioxide emissions, lighter, stronger and more sustainable steel products are increasingly in demand.

SSAB has a clear strategy in place for the future.

Olof Faxander President and CEO

SSAB advances its positions

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

SSAB's overall strategy is to be a global leading supplier of high strength steels, while at the same time maintaining its strong positions in its domestic markets of the Nordic region and North America. The new organization, which is in place as of 2010, supports this strategy.

Increasing the share of niche products

SSAB enjoys global leadership within the development and production of high strength steels and has an expressed ambition to expand the market through new areas of use. By replacing traditional steels with advanced high strength steels, the end products can be made lighter, stronger and more durable. This gives the end user improved economic benefits, while at the same time reducing environmental impact.

In the long-term, SSAB's assessment is that high strength steels will demonstrate higher growth rates than standard steels. Thus, SSAB is endeavoring to increase the share of niche products as a percentage of total deliveries. On a Group level, the objective is to reach a 50 percent share in 2015. In 2009, niche products accounted for 32 percent of total deliveries.

Securing strong positions on the domestic markets

SSAB has two domestic markets: The Nordic region and North America. A clear presence and strong position in these markets, together with production close to the customers, provide SSAB with cost advantages, not only within high strength steels but also within standard grades. SSAB is the leading supplier of strip products in the Nordic region. The subsidiary, Tibnor, is a leading full range distributor, supplying the steel needs in the Nordic markets. In North America, SSAB is one of the leading suppliers of plate, with sales both directly to end customers and via distributors.

Strengthening presence in Asia

Currently SSAB has a relatively limited presence in Asia. The long-term strategy includes strengthening the position in the Asian market, with particular focus on China. With approximately half the world's steel production as well as consumption, China remains a highly important market for the steel industry. However, the market for high strength steels remains relatively untapped, therefore offering significant opportunities for growth in the years ahead. In these markets, there is still a great need for important infrastructure development, at the same time as demands are increasing for improved environmental and sustainability standards.

In connection with the major reorganization of SSAB's operations in 2010, a new business area, APAC, has been established covering Asia, Australia and New Zealand. The business area's management team is based in Kunshan in the vicinity of Shanghai (see page 5).

New organization – a strategic decision

The central features of SSAB's strategic action plan are based on increasing growth within niche products, increasing profitability at existing plants, and strengthening the organization. The acquisition of IPSCO in 2007 was an important step in achieving the strategic goals.

In January 2010, SSAB completed an extensive reorganization of SSAB's operations, representing an important element in the creation of future conditions for achieving the strategic objectives. In the new organization, the former divisions have been replaced by three geographic business areas.

The aim is to strengthen and broaden the product and service offering to our customers. Through increased presence and coordination across the former divisions, customers receive a broader offering, encompassing SSAB's entire product and service portfolio. This strengthens the possibilities to accelerate growth within our niche products.

The new organization is expected to generate significant synergies within purchasing, inventory management, research and distribution. The former sales organizations within the different divisions have been coordinated into a joint marketing organization within each business area, as well as the HR, finance, purchasing and IT functions. SSAB is a global knowledge company. With this reorganization, SSAB continues to strengthen its position and continues to attract the brightest and the best employees.

The new structure comprises the following three business areas:

• SSAB EMEA (Europe, Middle East and Africa)
• SSAB Americas (North and Latin America)
• SSAB APAC (Asia, Australia and New Zealand)

Pro forma 2009
	External		Deliveries in thousand tonnes (steel operations)
	sales in SEK billion	Quenched steels	AHSS	Ordinary steels
SSAB EMEA	12.4	167	282	1,026
SSAB Americas	10.7	108	376	1,230
SSAB APAC	1.6	62	46	1
Tibnor	5.1	-	-	-
Total	29.8	337	704	2,257

Pro forma for 2009, sales and deliveries broken down by the new business areas would have been as follows:

Financial targets

SSAB's strategy is aimed at securing the Company's long-term development, thereby creating value for shareholders and other stakeholders. To support the strategy, SSAB has established a number of financial targets.

Profitability

Taking into consideration the equity ratio requirement and the dividend policy, the target for the return on capital employed is that it shall exceed 15 percent over a business cycle.

In 2009, the return on capital employed was negative (17 percent).

Capital structure

The Group's operations are sensitive to the state of the economy. The objective is a long-term equity ratio of approximately 50 percent and a long term net debt/equity ratio of 30 percent.

As of December 31, 2009, the equity ratio was 51 (51) percent and the net debt/equity ratio was 49 (48) percent.

Dividends

Dividends shall be adapted to the average level of earnings over a business cycle and, in the long-term, constitute approximately 50 percent of profit after tax. In the short-term, however, the net debt/equity ratio must be taken into account. It shall also be possible to use dividends to adapt the capital structure.

The Board proposes a dividend for 2009 of SEK 1.00 (4.00) per share.

Net debt/equity ratio

ROCE – return on capital employed

Niche products (deliveries)

SSAB's offering strengthens the customer

SSAB work continously to realize the potential of high strength steels, together with the customers. The starting point is SSAB's global leadership within the high strength steel niche market, from production and process development to innovation and sales.

Leading product quality

SSAB's steel products are recognized for their superior characteristics, including high and consistent quality. SSAB is continously engaged in research projects for metallurgy and new product applications. A research and development council has been established to coordinate the strategic research efforts. In addition, SSAB also cooperates with research and development institutions throughout the world.

Strong brands

SSAB has several well-known brands: Hardox, Domex, Weldox, Docol, Armox, Prelaq and Toolox. SSAB enjoys a strong market position thanks to the unique product properties with regard to, for example, high strength, wear resistance, abrasion resistance, bending, and welding. SSAB participates in various customer and end user forums to increase knowledge about the Group's brands.

Expertise in developing new applications

SSAB is committed to educating its customers and end users by offering technical expertise to help demonstrate how high strength steels contribute to improved productivity and environmental advantages. Through collaborative research projects, SSAB continues to build long-term relationships, promote innovation and increase sales.

Platform for SSAB's customer offering

• Superior product quality and industry-leading properties
• Strong brands designed to support customer needs
• Best in class technical expertise to support development of new applications
• Strong sales and support organizations

Strong sales organization

SSAB continues to identify new markets and applications where high strength steels can be used. The sales organization carries out joint efforts with customers to develop new product applications. In doing so, the sales organization creates increased exposure for SSAB's product and service offering.

Close cooperation to realize steel's potential

Focusing on the customer's needs, SSAB's ambition is to constantly identify new high strength steel applications which can create customer benefits such as improved functionality, cost savings and reduced environmental impact. During 2009, this ambition has resulted in many good projects.

Swedish Steel Prize 2009

The Swedish Steel Prize, which is aimed at stimulating new, innovative ways of using high strength steels, was awarded for the eleventh consecutive year. The competition is open to customers who use high strength steels in their product applications. The result is solutions with functional and environmental advantages which increase the customer's competitiveness.

The 2009 winner was the Canadian refuse truck manufacturer, Labrie Environmental Group, with its new Wittke Starlight vehicle model. This is a front-loader refuse collection truck that has around 700 kg higher payload capacity than earlier models. In addition to being lighter, the new vehicle is also built to achieve higher compaction of the

refuse in the container. This has resulted in a more efficient vehicle that contributes to fewer transport journeys and thus reduced environmental impact.

There were a variety of entry submissions representing a large range of applications. In 2009, the other submissions that were nominated included a new sprayer unit spreader arm, a roller ski built of high strength steel, and a trailer with a sandwich construction platform.

Energy-saving steel in the Swedish Pavilion

The Swedish Pavilion, which will house the Swedish exhibition at the World Expo 2010 in Shanghai, was unveiled during the year. SSAB's Prelaq Energy steel, which reduces the need for artificial indoor cooling in hot climates, was used for the pavilion's façade and roof. Thanks to the properties of the coated surface, energy consumption can be reduced by up to 15 percent.

SSAB's in-house development projects

As an example of SSAB's endeavors to further develop applications using high strength steel, the company has produced in-house an entirely new design for a freestanding dumper bed. The new design provides significantly greater payload, but weighs only half as much as a traditional dumper bed.

The prototype is manufactured in Hardox 450, and has been tested under exacting conditions. The free-hanging U-shaped dumper bed structure means that the weight of the bed is reduced substantially, while at the same time as the new design is more abrasion resistant.

Labrie Environmental Group was awarded the Swedish Steel Prize in Stockholm for its new vehicle model, Wittke Starlight.

Report of the Directors

	Page
Market	10
Sales and profit	11
Capital expenditures and cash flow	16
Compensation to senior executives	20
Risk and sensitivity analysis	22
Outlook for 2010	23
SSAB Strip Products	24
SSAB Plate	26
SSAB North America	28
Tibnor	30
Other companies	32
Sustainability
- Environment	34
- Employees	39
- Suppliers	42
SSAB on the stock exchange	44
5-year summery	46
Financial reports	48
Proposed allocation of profit	100

Reduced global demand offset by continued strong growth in China

At the start of 2009, the steel industry was characterized by great uncertainty. In April, the steel industry organization, the World Steel Association issued a forecast which indicated a decline of 14.9 percent in global steel consumption in 2009.

A large-scale downturn in the economies of both the western world and several developing countries forced most steel producers to curtail production in response to the weaker demand and falling prices. The mature economies of Europe, North America and Japan were hardest hit, with demand falling by more than 30 percent in each region.

Favorable recovery driven by China

Due to significant governmental stimulus packages, however, the economic recovery started earlier than expected, even if there is still great uncertainty regarding its durability. The global recovery in steel consumption, driven primarily by China's substantial stimulus measures, caused the World Steel Association to revise its forecast upward in October and, instead, to state an anticipated decline of 8.6 percent in steel consumption for 2009. On the supply side, global crude steel production in 2009 fell by 8.1 percent. China's importance for the international steel market further strengthened during the year. In 2009, the country accounted for 47 percent of total global crude steel production and, according to the revised forecast from the World Steel Association, approximately 48 percent of global steel consumption.

Fluctuations in raw materials prices

The beginning of 2009 was characterized by falling raw materials prices. Prices of Australian coking coal fell by 60 percent, while the price of iron ore pellets almost halved. Despite these price decreases, the 2009 contract prices for coal and iron ore are at the second highest levels ever. In the agreements for 2010, prices for coking coal and iron ore are expected to increase once again, largely due to increased Chinese demand. Scrap metal prices in North America fell during the first quarter of 2009 and thereafter turned upward. By the end of the year, North American scrap metal prices had more than doubled compared with the lowest prices noted at the beginning of April.

A degree of recovery in the market

After the price rally in 2008, global steel prices fell during the first quarter of 2009. Despite price increases during

third quarter, prices at the end of the year were far below the 2008 levels. The sharpest price decreases at the beginning of the year took place in Europe and the United States. Price growth in these regions thereafter continued to be weaker than in China. During the first half of the year, extensive inventory liquidation took place at distributors and consumers, and thus demand at steel companies fell more sharply than the underlying demand. As inventory restocking takes place in various steel consuming industries, demand at steel companies is increasing by more than the underlying demand. During the second half of 2009, the demand at steel companies increased, due to a certain upturn in demand but also due to the end of the destocking.

Continued uncertain market trend

With the first signs that the bottom of the recession had been reached, a number of steel producers brought forward planned restarts of blast furnaces in order to increase production capacity. Demand outside Asia, however, continue to develop weakly. It remains to be seen if the increases in production in Europe will be in line with demand and not generating overcapacity.

An additional uncertainty factor is the impact the conclusion of the various stimulus packages will have on steel consumption. The wave of consolidations and structural transactions which have characterized the steel market in recent years tapered off during 2009. Most companies in the industry have focused on internal matters and worked on cost savings and activities to promote cash flow.

Crude steel production per market (million tonnes)

	2009	2008	%	Q4-09	Q4-08	%
Europe	139	198	-30	41	39	5
USA	58	91	-36	18	16	12
Former Soviet Union	97	114	-15	27	19	42
China	568	500	14	147	110	34
Other	358	424	-16	94	88	7
Global	1 220	1 327	-8	327	271	21

Sales and profit

Without question, 2009 was dominated by the global economic downturn in the wake of the financial crisis.

Sales

Demand was very weak in almost all markets during most of the year.

The Group's sales amounted to SEK 29,838 (54,329) million, a decline of SEK 24,491 million or 45 percent. Lower volumes accounted for a negative effect of 39 percentage points, lower prices for a negative effect of 10 percentage points, a weaker product mix for a negative effect of 1 percentage point, while currency effects accounted for a positive effect of 5 percentage points.

For the Group as a whole, 76 (75) percent of sales were outside Sweden, as shown in the table below.

Sales per market area

SEK millions	2009	Share, %	2008	Share, %
Europe	16,881	57	31,756	59
of which Sweden	7,099	24	13,518	25
NAFTA	10,366	35	19,171	35
South America	413	1	526	1
Asia	1,915	7	2,154	4
Other	263	1	722	1
Total	29,838	100	54,329	100

Sales in the largest markets

SEK millions	2009	2008	Change, %
USA	8,621	17,962	-52
Sweden	7,099	13,518	-47
Germany	1,813	2,810	-35
Canada	1,447	1,101	+31
Finland	1,287	2,306	-44

External sales per business area

SEK millions	2009	%	2008	%
SSAB Strip Products	7,798	26	14,110	26
SSAB Plate	6,525	22	10,760	20
SSAB North America	8,769	29	16,455	30
Tibnor	5,236	18	10,457	19
Other	1,510	5	2,547	5
Total	29,838	100	54,329	100

USA Japan

EU 25 South Korea

China

Former Soviet Union Other

Global steel consumption Steel consumption in the USA Steel consumption in EU-15 Steel consumption in Sweden

70 75 80 85 90 95 00 05 10

Cost reduction program

As a consequence of the severe decline on the steel market and the uncertain prospects for 2009, at the beginning of December 2008 the Board decided on a cost reduction program aimed at reducing operating costs by at least SEK 1 billion annually. A reserve of SEK 498 million for the cost of this program was incurred in 2008. In 2009, implementation of the program has, in all major aspects, proceeded somewhat quicker than originally estimated and the cost is now estimated at SEK 422 million. During 2009, SEK 76 million of the reserve was reversed. The savings are estimated to have generated a positive effect of just over SEK 750 million in 2009 and, commencing 2010, it is estimated that the sustainable yearly cost reduction will amount to approximately SEK 1 billion.

Cost trends

Costs in the business decreased by 30 percent compared with the preceding year and were SEK 32,412 (46,306) million. Of these costs, SEK 3,706 (6,969) million related to products purchased in the processing and trading operations.

Remaining costs consists primarily of processing costs, selling and administrative costs, depreciation/amortization, and costs for input materials and energy.

Processing costs, selling and administrative costs are comprised primarily of costs for the Group's own personnel and purchased material and services. Due to the low production and sales, the processing costs have been reduced significantly during the year. The fixed costs have been reduced

by SEK 1,552 million of which SEK 750 million relates to the cost reduction program.

Raw materials are priced in the world market and the prices, which are primarily quoted in USD, are very sensitive to the steel business cycle. Iron ore and coal are the dominant raw materials within the blast furnace based manufacturing in Sweden and price and delivery agreements are normally entered into annually at the beginning of the year. Scrap metal is an important raw material for the North American operations with two scrap-based steel works.

Agreements on the new price for iron ore pellets were not reached until the third quarter and entailed price decreases in USD of 48 percent i.e. a price decrease in SEK of approximately 36 percent. The iron ore agreements entered into force at the beginning of 2009 but, due to existing stocks, the new price impacted earnings only towards the end of the second quarter.

Agreements on new coal prices were reached during the second quarter and entailed price decreases in USD of 47percent, i.e. a price decrease in SEK of approximately 35 percent. The coal agreements entered into effect on April 1 but, due to existing stocks and the slow pace of production, the new price impacted earnings only towards the end of 2009.

The price of scrap metal was volatile during 2009, but with a rising trend from April onward. Changes in scrap prices have a relatively quick impact on earnings due to a high rate of inventory turnover. The Group's cost structure is shown in the diagram on page 13.

Energy

Coal is an essential reduction agent to remove oxygen from iron ore and constitutes one of the most important raw materials in iron ore-based steel production. Coal also provides approximately 85 percent of the energy for the Swedish steel operations.

Energy is otherwise provided through electricity, oil and LPG. In total, the Swedish steel operations consumed 1,243 (1,638) GWh of electric power and 1,102 (1,629) GWh of oil and LPG during the year. By utilizing the energy-rich gases that are formed during steel production, among other things, electricity is produced at the OK3 heat and power plant in Oxelösund and in the half-owned energy company, Lulekraft. During the year, these plants produced 516 (837) GWh of electricity.

Electricity and natural gas represent significant energy costs for SSAB North America and account for approximately 10 percent of total steel plant production costs. SSAB North America has long-term, inflation-indexed agreements.

In total, the Group's energy costs (excluding coal) amounted to SEK 2,484 (3,146) million.

Result
SEK millions	2009	2008
Sales	29,838	54,329
Operating profit per business area
- SSAB Strip Products	-1,637	3,324
- SSAB Plate	-73	3,154
- SSAB North America1)	-271	2,951
- Tibnor	-38	634
Provisions, cost reduction program2)	76	-498
Other 3)	351	-49
Operating profit	-1,592	9,516
Financial items	-469	-563
Earnings after financial items	-2,061	8,953
Tax	1,182	-2,445
Earnings after tax for continuing operations	-879	6,508
Earnings after tax for discontinued operations 4)	-131	490
Earnings after tax	-1,010	6,998
Key ratios
Return on capital employed before tax (%)	neg	17
Return on equity after tax (%)	neg	22
Earnings per share (SEK)	-3.09	21.41
of which for continuing operations (SEK)	-2.69	19.90
Goodwill	19,701	21,105
Equity	31,002	35,193
Net debt	15,314	16,992
Net debt/equity ratio (%)	49	48

1) SSAB North America's operating profit during the year was impacted by SEK 942 (745) mil-

lion in depreciation/amortization of surplus values on intangible and tangible fixed assets. 2) The provisions at the end of 2008 are reported as a joint item for the entire Group. The allocation between the divisions is SEK 200 million for SSAB Strip Products, SEK 125 million for SSAB Plate, SEK 0 million for SSAB North America, SEK 34 million for Tibnor and SEK 62 million for Other, as well as an unallocated portion of SEK 77 million. SEK 76 million of the reserve was dissolved in the fourth quarter of 2009.

3) Profit includes a profit of SEK 313 (240) million on the sale of emission rights, allocated as SEK 13 (-) million to SSAB Strip Products and SEK 300 (240) million to Other.

4) The discontinued operations relate to the tubular business in North America which was divested in 2008. The cost for the year of SEK 131 million is a provision in respect of warranty obligations to the buyer.

The profit analysis is set forth in the table below.

Change in operating profit between 2009 and 2008 (SEK millions)
Steel operations
- Lower prices	-4,120
- Lower volumes	-7,220
- Higher variable production costs	-340
Tibnor
- Lower volumes, change mix and margins	-780

and margins	-780
Lower fixed costs	+1,552
Lower sales of by-products and slabs	-655
Higher provisions for anticipated bad debt losses	-31
Costs for under-utilized subcontractor agreements	-103
Non-recurring insurance indemnification, preceding year	-114
Sold emission rights	+73
Reserve for cost reduction program 2008	+574
Other	+56
Change in operating profit	-11,108

The Group's cost structure

Profit after financial items

Profit

Operating profit for the full year was negatively impacted by write-downs of the finished goods inventories in the steel operations and Tibnor by SEK 445 (489) million and coke inventories by SEK 316 (-) million. Fixed costs declined by SEK 1,552 million, of which just over SEK 750 million relates to the ongoing cost reduction program, and expected to be sustainable savings. Costs for anticipated bad debt losses increased and amounted to SEK 88 (57) million. Due to weaker demand, it is believed that some agreements with subcontractors will not be utilized and the resulting costs

impacted earnings by SEK 103 million. Due to a weak Swedish krona sales were positively impacted by approximately SEK 2.5 billion while operating expenses were negatively impacted by approximately SEK 1.6 billion compared with 2008.

Financial items for the full year amounted to SEK -469 (-563) million. Financial items for 2008 included SEK +146 million with respect to the interest compensation included in the indemnification relating to an older blast furnace breakdown.

Earnings for the full year after financial items were SEK -2,061 (8,953) million, a decline of SEK 11,014 million.

Tax

Tax for the year amounted to SEK +1,182 (-2,445) million. The effective tax rate was +57 (-27) percent. Tax for the year was positively impacted by 9 percentage points as a consequence of changes in the calculated tax rate, primarily due to a reappraisal of the deferred tax liability from the acquisition of SSAB North America. Furthermore, lower tax rates on positive earnings and higher tax rates on negative earnings in foreign subsidiaries impacted positively by 22 percentage points.

Result and earnings per share

Earnings after tax (attributable to the shareholders) for the continuing operations amounted to SEK -871 (6,445) million or SEK -2.69 (19.90) per share. Including the divested operations, earnings for the year amounted to SEK -1,002 (6,935) million or SEK -3.09 (21.41) per share.

Index 100 = 1988 Q1

Plate production

Return on capital employed/equity

The return on capital employed before tax and return on equity after tax were negative for 2009. For 2008, the corresponding figures were 17 percent and 22 percent respectively.

Equity

Following deduction for the year's losses attributable to the Company's shareholders of SEK -1,002 million, other comprehensive income (primarily comprising translation differences) of SEK -1,855 million, and after payment of the year's dividend of SEK 1,296 million (SEK 4.00/share), the shareholders' equity in the Company amounted to SEK 30,841 (34,994) million, equal to SEK 95.21 (108.64) per share.

Profitability and the net debt/equity relation in relation to targets are presented in a diagram under the heading Financial Targets on page 6.

Test of impairment for goodwill

On November 30, the annual impairment test was carried out regarding goodwill. At the end of the year there remained SEK 19,701 million in goodwill, of which in principle the entire amount relates to SSAB North America. The result of the impairment test indicated no impairment. For further information, see Note 6.

Divestment of the North American tubular business

The tubular business was sold on June 12, 2008 for a purchase price of USD 4,038.5 million. In the income statement for 2008, the items relating to the discontinued operations

were removed from the income statement and reported net on a separate line, "Earnings after tax for discontinued operations". There are warranty obligations to the buyer relating to the period prior to the divestment. In connection with the divestment, a provision was made for this type of obligation. In connection with the accounts for 2009, a renewed estimate has been made and an increase of the provision by SEK 131 million was made and reported for the year as "Earnings after tax for discontinued operations".

Currency flows

Capital expenditures and cash flow

Capital expenditures

During the year, decisions were made regarding new capital expenditures totaling SEK 572 (7,314) million, of which SEK 0 (5,483) million involved strategic investments. Capital expenditure payments for the entire operations amounted to SEK 1,912 (2,606) million, of which SEK 944 (770) million related to strategic investments. Project planning regarding the major strategic investments was underway, but the pace of the investments was reduced and was regularly being reviewed. Since the end of the period, decisions have been made to continue on a somewhat smaller scale with the investment program presented in the fall 2008. Accordingly, the construction of a quenching line in Mobile, Alabama will continue to be implemented in a somewhat scaled down form, which will result in an increase of approximately 200 thousand tonnes in quenched steel production capacity. In addition, the investment to render possible production of quenched steel at the plant in Borlänge will be implemented, which will allow for an initial sales volume of 300 thousand tonnes of quenched steel. Both investments amount to approximately SEK 3.6 billion, of which approximately SEK 0.5 billion was paid in 2008–2009. Of outstanding projects totaling SEK 1.7 billion of the original SEK 5.3 billion that were announced during the fall 2008, projects of approximately SEK 1.5 billion have not yet been started. Since the end of the period, the Board has also decided on an investment of just over SEK 300 million for a finishing line in Kunshan, China. The line will have capacity for formatting, blasting and organic coating and is expected to be commissioned in the middle of 2011.

Financing and liquidity

During the year, the operating cash flow amounted to SEK 4,868 (9,085) million, primarily as a consequence of a reduction in working capital in all divisions totaling SEK 5,135 million. Excluding currency effects, inventories declined by SEK 4,532 million and accounts receivable by SEK 984 million, which were offset by a reduction in accounts payable of SEK 268 million. The cash flow from current operations amounted to SEK 3,387 (5,387) million. Cash flow were negatively affected by expenditures of just over SEK 380 million in respect of the ongoing cost reduction program.

Cash flow before financing was SEK 2,474 (29,525) million and, together with positive translation effects on the debt of SEK 500 (-2,071) million, meant that the net debt during the year declined by SEK 1,678 million, after the dividend of SEK 1,296 (1,620) million, and on December 31, amounted to SEK 15,314 (16,992) million. Equity (including the minority share) declined during the year by SEK 4,191 million, from SEK 35,193 million to SEK 31,002 million. The net debt/equity ratio was 49 (48) percent. ⁰

Operating cash flow/change in net debt
SEK millions	2009	2008
SSAB Strip Products	1,006	2,692
SSAB Plate	1,312	1,818
SSAB North America	1,376	4,139
Tubular business (up to date of divestment)	0	-160
Tibnor	725	677
Other	449	-81
Operating cash flow	4,868	9,085
Financial items 1)	-538	-1,132
Taxes 2)	-943	-2,566
Cash flow from current operations	3,387	5,387
Acquisition of companies and operations	0	-10
Strategic investments	-944	-770
Divestment of businesses and operations 3)	31	24,918
Cash flow before dividend and financing	2,474	29,525
Dividend	-1,296	-1,620
Net debt in divested companies	0	817
Currency translation, etc. 4)	500	-2,071
Change, net debt (increase-/ decrease+)	1,678	26,651

1) Financial items consist primarily of paid interest, while reappraisals of financial instruments and currency differences are reported in the financing activities.

2) Taxes means tax paid during the period.

3) Divested companies and operations during the year refers to SSAB Laminated Steel (lamination of steel and aluminum sheet), while for 2008 it refers to the North American tubular business.

4) Most of the currency translation comprised reappraisals of liabilities against equity for hedging of foreign operations.

Cash flow from current operations

		Sales	Change	Change 3)		Operating profit		Return on capital employed
SEK millions	2009	2008			2009	2008	2009	2008
SSAB Strip Products	10,091	17,981	-44%	-47%	-1,637	3,324	neg	39%
SSAB Plate	7,634	13,237	-42%	-47%	-73	3,154	neg	40%
SSAB North America 1)	8,799	16,745	-47%	-57%	-271	2,951	neg	10%
Tibnor	5,286	10,562	-50%	-50%	-38	634	neg	31%
Other subsidiaries	1,633	2,171			-32	68	-	-
Parent Company 2)	-	-			-43	2,232	-	-
Parent Company's affiliated companies	-	-			5	84	-	-
Provision for cost reduction program	-	-			76	-498	-	-
Other Group adjustments	-3,605	-6,367			421	-2,433	-	-
Total	29,838	54,329	-45%	-50%	-1,592	9,516	neg	17%

The divisions' / subsidiaries' sales, profits and return on capital employed

1)SSAB North America's operating profit during the year was impacted by SEK 942 (745) million in depreciation/amortization of surplus values on intangible and tangible assets. 2) The Parent Company's profit includes a profit of SEK 300 (240) million on the sale of emission rights. In 2008, the Parent Company's profit included the sale of the tubular business.

3) Adjusted for changes in exchange rates.

During the fourth quarter 2009, bond loans of SEK 3.5 billion were issued, and were used in partial repayment of bank loans. These measures resulted in a more evenly-spread debt maturity structure on the loan portfolio and an extension of the average term to maturity by approximately 6 months. The term to maturity at December 31 was 3.5 (4.1) years, with an average fixed interest period of 0.9 (0.8) years. Of the loan portfolio of SEK 18,876 (19,704) million, short-term commercial paper was SEK 2,601 (1,339) million.

The Group's liquidity preparedness consisted of cash and cash equivalents and non-utilized binding credit facilities, but excluding short-term commercial paper of SEK

2,601 (1,339) million, at December 31 amounted to SEK 16,249 (8,431) million, equal to 54 (16) percent of annual sales. Including the short-term commercial paper, liquidity preparedness amounted to approximately 63 (18) percent of annual sales.

Dividend

The Board proposes that the Annual General Meeting issue a dividend of SEK 1.00 (4.00) per share, equal to SEK 324 (1,296) million. For considerations relating to proposed allocation of profit, see Note 30.

Accounts receivable

As a percentage of sales Accounts receivable

Inventories

Investments and depreciation/ amortization

31 dec	31 dec 2008

	21,105
	6,663
	17,584
	373
	119
	245
	46,089
8,221	12,924
4,435	5,921
667	154
665	1,454
3,652	2,713
17,640	23,166
60,419	69,255
	2009 19,701 5,374 17,137 348 55 164 42,779

Equity and liabilities
Equity for shareholders in the company	30,841	34,994
Minority shares	161	199
Total equity	31,002	35,193
Deferred tax liabilities	5,283	6,279
Other long-term provisions	550	504
Long-term interest-bearing liabilities	14,878	18,064
Total long-term liabilities	20,711	24,847
Current interest-bearing liabilities	3,998	1,640
Current tax liabilities	96	868
Accounts payable	3,063	3,831
Other current liabilities	1,549	2,876
Total current liabilities	8,706	9,215
Total equity and liabilities	60,419	69,255

SSAB enjoys close cooperation with a select network of leading institutions and industry organizations including the Swerea institutions (Swedish research), MEFOS and KIMAB, the Swedish Steel Producers' Association, Eurofer (European Confederation of Iron and Steel Institutes), and the World Steel Association. In North America, SSAB supports research activities at a number of universities including the Colorado School of Mines and the University of Iowa.

Research and development

SSAB's research and development work focuses on process development, product development and customer applications. During the year, research and development expenditures amounted to almost SEK 200 million. Research and development activities are governed by the Group's business strategy and validated by the Research and Development Council. To further strengthen SSAB's long-term product development goals, a new strategic research center for the entire Group will be established in 2010. With respect to ongoing process development, SSAB in 2009, successfully pioneered a method for producing cleaner (less nonmetallic inclusions) steel with improved material properties. Also during this year, SSAB conducted a record number of development projects with customers. In particular, SSAB successfully launched a new concept for lightweight dumper bodies which reduces fuel consumption and offers improved productivity.

In terms of the product range, a number of new steel grades were introduced to the market. Domex 960 is a new high strength construction steel for applications within heavy transportation and the lifting industry. Docol 1000 CLE is a new cold rolled steel with significantly improved welding qualities, ideal for safety components in the automotive industry.

During the year, SSAB has become a core member of the European cooperation project ULCOS, which is aimed at developing production methods to reduce carbon dioxide emissions.

» A new suspended dumper bed made of Hardox weighs only half as much as a traditional dumper bed, while having greater abrasion-resistance and resistance to knocks. The end customers benefit from increased payload, lower fuel consumption, as well as fewer and shorter maintenance stoppages.«

Compensation to senior executives

Proposal by the Board for 2010

For 2010, the Board proposes that compensation to the President and other members of the Company's management shall comprise a fixed salary, possible variable salary component, other benefits, such as company car, as well as pension. "Other members of the Company's management" means members of the Group Executive Committee, currently eight persons in addition to the President. The total compensation package shall be on market terms and competitive in the employment market in which the executive works. Fixed salary and variable salary components shall be related to the executive's responsibilities and authority. The variable salary component shall be based on results as compared with defined and measurable targets and shall be subject to a ceiling in relation to the fixed salary. Variable salary shall not be included in the basis for computation of pension, except in those cases where so provided in the rules of a general pension plan (e.g. the Swedish ITP plan). For

senior executives outside Sweden, all or parts of the variable salary may be included in the basis for pension computation due to legislation or local market practice.

The program for variable salary should be structured such that, in the event of exceptional circumstances, the Board has the possibility to limit or withhold payment of variable salary where such a measure is deemed reasonable and compatible with the Company's responsibilities to shareholders, employees and other stakeholders.

Consulting fees on market terms may be payable to the extent a director performs work on behalf of the Company, in addition to the duties serving on the Board.

individual retirement ages, however under no circumstances below the age of 60. Benefit-based pension benefits are conditional on the benefit being earned during a predetermined period of employment. In the event the employment terminates prior to retirement age, the executive shall receive a paid-up policy regarding earned pension. Termination periods and severance compensation for senior executives outside Sweden may vary due to legislation or local market practice.

The Board of Directors shall be entitled to deviate from the guidelines where special reasons exist in an individual case. For more detailed information regarding compensation, see Note 2.

Variable salary 2009

For the President and the other members of the Group Executive Committee, the variable salary component 2009 is linked to the Group's EBITDA margin relative to a number of comparable steel companies and to a target for cash flow established by the Board, combined with one or more individual targets. There will be no variable salary paid for 2009.

Temporary incentive program

In connection with the acquisition of IPSCO, the Board made the assessment that, in light of the size of the acquisition and the major financial strain resulting from the acquisition, it was of the utmost importance to achieve a rapid integration of the business, that identified synergies quickly could be realized, that earnings continued to develop positively during the integration of the merged SSAB/IPSCO, and that senior executives remained with the Company during this

critical period. Therefore, the Board of Directors decided on a temporary incentive program for a number of key persons stationed in Sweden who are engaged in the integration of SSAB North America, which includes the Swedish members of the Group Executive Committee, including the President. This temporary incentive program consisted of variable compensation and applied as a supplement to the already existing variable salary component. For the Swedish members of the Group Executive Committee, the incentive program applied during a maximum of two years commencing July 2007 and was capped at 100 percent of each member's fixed annual salary. The amount payable depended entirely on the degree to which a number of established targets were achieved as regards the integration of SSAB North America into SSAB's operations. The targets comprised the Group's EBITDA margin compared with a number of comparable steel companies, a cash flow target established by the Board, and realized synergies. The first year's outcome was paid in cash in 2008. Payment of the second year's outcome, two thirds of the maximum outcome, was, for the time being, stopped in accordance with the resolution adopted at the 2009 Annual General Meeting which authorized the Board to limit or withhold payment of variable compensation in the event of exceptional circumstances.

Compensation and benefits

During the last three years the following compensation and benefits have been paid to the President and other Group Executive Members.

Compensation and benefits for the President and other Group Executive Committee members
		President			Other Group Exec. Comm. Members
SEK millions	2009	2008	2007	2009	2008	2007
Fixed salary	4.7	4.7	4.5	16.6	16.6	11.2
Other benefits	0.2	0.3	0.1	0.8	0.9	0.5
Variable salary	-	2.2	2.2	-	9.8	7.2
Incentive program	-	4.5	-	-	11.2	-
Other compensation 1)	-	-	-	-	2.2	-
Total compensation	4.9	11.7	6.8	17.4	40.7	18.9
Pension expenses	1.3	1.4	1.3	7.3	7.8	5.5
Total	6.2	13.1	8.1	24.7	48.5	24.4

1) Relates to disbursed severance compensation.

For more detailed information regarding compensation, see Note 2.

Risk and sensitivity analysis

Significant risks and uncertainty factors

The Group's results and financial positions are affected by a large number of factors, several of which are beyond the Company's control. These include, for example, the political and economic conditions that affect the markets for steel.

The dramatic events of recent times on the global financial markets have been accompanied by increased general uncertainty, which also results in risks and uncertainty in the business operations. The consequent main risks and uncertainty factors encountered by the Group relate to the impact of the macro-economy on demand, existing financing and possibilities for future financing, as well as changes in value of fixed assets and operating assets.

Weak demand leads to a low rate of inventory turnover, which increases the risk of physical obsolescence in inventories within the steel divisions.

The work of identifying and analyzing the risks and deciding how, and to what extent, the risks shall be addressed is a prioritized area in the Group.

Risks and uncertainty in the Group's operations

Steel production takes place in a chain of processes. Disruptions in any part of the chain can rapidly have serious repercussions on the entire process. Thus, a disruption in the operations due, for example, to transportation obstacles and damage to assets resulting from, e.g. fire, explosions and other types of accidents can be costly. The risk that disruptions in one part of the process will have repercussions on other parts of the process can be minimized by keeping stocks of raw materials, work in progress, inventories of finished goods, as well as other types of inventory on as optimal a level as possible. Both property insurance and business disruption insurance are held in order to minimize the costs resulting from this type of problem.

The possibility to attract and retain skilled personnel represents a key factor in being able to conduct the operations with good profitability in the long term. Thus, skills development and management development are prioritized areas. The niche strategy is contingent also on a continued strong process and product development, and thus skills development in these areas is of particular importance.

The Group's reputation can be eroded quickly if safety, environmental responsibility and ethics are called into question, and thus priority is given to these issues in the day-to-day work as well as in long-term training and work on influencing attitudes.

The acquisition of IPSCO resulted in a significant increase in the net debt/equity ratio, but the Group's exposure to interest rate changes has been reduced as a consequence of the divestment of the tubular business in 2008, and subsequent reduction in the net debt.

In an international business such as SSAB's, there are also a number of financial risks in the form of currency risks, financing risks, liquidity risks, interest rate risks and credit risks. The management of these risks is governed by the Group's finance policy which is described in greater detail in Note 27.

Risks and uncertainty in the steel industry

The steel industry is strongly affected by the business cycle for steel and the most important raw materials. The high percentage of fixed costs due to the large capital expenditures that characterize the steel industry also increases sensitivity to business cycle fluctuations. It is difficult to protect against this, but a focus on niche products and long-term agreements for the supply of raw materials are examples of ways in which SSAB has chosen to minimize the cyclical nature of its earning capacity.

In times of sharply falling prices for both raw materials (coal and iron ore) and steel, there is the risk that steel prices will continue to fall after the annual agreements for purchases of coal and iron ore (which are entered into the beginning of the year) have been concluded.

Competitors' development is something that cannot be influenced; however, the major acquisitions and mergers within the steel industry in recent times are a positive factor for a niche company such as SSAB. It is through a continued focus on developing its niche products that SSAB can maintain and, preferably, strengthen its position against competitors.

The system of carbon dioxide emission rights has resulted in new rules for companies in the steel industry. As the system functions today, there is a risk of distortion of competition due to the fact that a large proportion of steel producing countries in the world are not covered by the system.

External risks and uncertainty

There are a large number of extraneous factors that impact the entire steel industry and, therefore, SSAB. Examples include the introduction of various obstacles to trade, energy price trends and increased environmental requirements.

(The work of managing environmental risks and increased environmental requirements is addressed in greater detail under the section entitled "SSAB's environmental activities").

Sensitivity analysis

The approximate effect in 2009 on profit after financial items and earnings per share of changes in significant factors is shown in the sensitivity analysis below.

	Change, %	Effect on profit, SEK millions	Effect on earnings per share, SEK 3)
Steel prices - steel operations	10	2,250	5.10
Volumes - steel operations	10	400	0.90
Iron ore prices 1)	10	170	0.40
Coal prices 1)	10	270	0.60
Scrap metal prices	10	310	0.70
Interest rates	1 percent age point	130	0.30
Krona index 2)	5	390	0.90

1) Prices are established in annual agreements.

2) Calculated based on SSAB's exposure without hedging. If the krona is weakened, this has a positive effect.

3) Calculated based on a tax rate of 26.3%.

Outlook for 2010

Demand is expected to strengthen somewhat during the first quarter of 2010. In the US, prices during the first quarter are expected to be lower, primarily as a consequence of mix changes. In Europe and Asia, it is anticipated that general pressure on prices during the fourth quarter of 2009 will lead to lower prices during the first quarter.

The degree of utilization at SSAB's production lines has gradually increased but is estimated to be somewhat lower than normal during the first quarter. The full impact of the cost reduction program will be realized during 2010, in line with the fourth quarter of 2009.

At the steel works in Montpelier, Iowa, a scheduled maintenance outage will take place for three weeks commencing the third week in March. The outage is estimated to impact earnings by just over SEK 250 million, of which just over half is expected to be incurred during the first quarter. Major maintenance outages of this type normally take place every two to three years at each plant in the United States.

New price agreements for iron ore and coal have not yet been signed. Spot prices for both ore and coal have increased in excess of the levels in the 2009 agreements and the market expects both iron ore and coal prices in USD to increase compared with the 2009 agreements. However, over time the higher raw material prices are expected to be compensated by the improving market conditions. Coal agreements will impact earnings towards the end of the second quarter, whereas iron ore agreements will impact earnings during the first quarter.

The price of scrap metal was volatile during 2009, but has been on the rise from April onward. The increasing price trend has thus far carried over into 2010 and at the end of January prices were approximately 17 percent above the level at the end of December 2009. Changes in scrap prices have a relatively quick impact on earnings due to a high rate of inventory turnover.

SSAB Strip Products

SEK millions	2009	2008
Sales	10,091	17,981
Operating profi t	-1,637	3,324
Operating cash fl ow	1,006	2,692
Capital expenditures	900	1,127
Capital employed at year-end	7,727	9,876
Return on capital employed % 1)	neg	39
Average number of employees	3,468	3,789
1) Refers to return on average capital employed.

Share of the Group

Sales 26%

of employees 41%

Capital employed 15%

SSAB Strip Products is the largest manufacturer of strip products in the Nordic region and one of the leading companies in Europe within the niche for advanced high strength steels. The products are marketed under the Domex, Docol, Dogal, and Prelaq brands. The niche products are mainly sold directly to the end customers, whereas ordinary grades also are sold via Steel Service Centers.

Advanced high strength steels can be used in a large number of different applications to reduce weight, increase strength and extend product life. Hot-rolled advanced high strength steels are used, among other things, in the automotive industry, primarily for trucks, and in areas such as cranes and containers. Cold rolled advanced high strength steels are used primarily for safety components in the automotive industry. Galvanized advanced high strength steels are used in applications that require a high level of anti-corrosion protection. The main European competitors within advanced high strength steels are ThyssenKrupp, and ArcelorMittal.

Ordinary strip steel is used primarily within the engineering, construction, and automotive industries. Competitors within these sectors consist of most Western European steel companies.

Strip is produced in thicknesses ranging from 0.1 mm to 16 mm, with a maximum width of 1,600 mm. Production takes place mainly at two plants: an ore-based metallurgy comprising coking plant, blast furnaces, and steel mills for the production of slabs is located in Luleå, while rolling mills as well as coating and after-treatment lines are situated in Borlänge. The capacity in Luleå is insuffi cient to supply all strip production needs. The remaining slabs required are, therefore, purchased from SSAB Plate. Production capacity in Borlänge is almost 3 million tonnes per year.

Further processing is also carried out through organic coating in Finspång and through cutting to size at subsidiaries in Italy, Great Britain and The Netherlands.

SSAB Strip Products' strategy is to grow and become a leading company in Europe within the area of advanced high strength steels. At the same time, a leading position in the

entire strip product range will be maintained on the domestic market in the Nordic region.

Market

Strip products constitute the largest product group within commercial steels. In Europe, this product group accounts for approximately one half of the market. Price levels for ordinary strip steel are relatively uniform on the larger markets in Europe.

During most of the year, demand for strip steel in Europe was very weak, as it was in large parts of the world, with falling prices as a result. Demand increased somewhat during the fi nal months of the year.

Deliveries of advanced high strength steels amounted to 410 (857) thousand tonnes, a decrease of 52 percent. Total deliveries declined to 1,400 (2,335) thousand tonnes, primarily due to the general economic situation. Deliveries of advanced high strength steels, accounted for 29 (37) percent of total strip product deliveries. Exports accounted for 67 (70) percent of sales. The geographic breakdown of deliveries is shown in the table on the following page.

Capital expenditures

During 2009, the Division focused on maintaining a positive cash fl ow, despite weaker earnings. One objective with this was to render possible implementation of the strategically important investment in quenching capacity for quenched steel.

All in all, decisions were made during the year regarding new capital expenditures totaling SEK 153 (2,189) million. The investment in increased quenching capacity totaling

approximately SEK 1.5 billion continued during the year, notwithstanding the difficult state of the economy. It is of great importance to be in state of readiness to produce quenched strip steel when the market improves. The investment represents an important element of SSAB's niche strategy and provides great possibilities for increasing the portion of advanced high strength steels.

Total capital expenditures during the year amounted to SEK 900 (1,127) million, of which SEK 377 (431) million related to strategic investments.

Product development

Product development within SSAB Strip Products is focused on advanced high strength steels. The aim is to develop tailormade products for different applications and to create increased customer benefit within important customer segments.

Within hot rolled products, development was focused primarily on quenched strip steel. During the year, among other things this resulted in Domex 960, an ultra high strength construction steel, as well as the abrasion resistant steel, Domex Wear 400.

With regards to cold rolled and metal coated steels, the trend has continued towards the development of martensitic steels to achieve greater strengths. The family of DP (Dual Phase) steels was also expanded by optimizing various combinations of qualities, especially intended for safety components for the automotive industry. There were also great advances in zinc plated ultra high strength steels, where SSAB now has several unique products.

Share of deliveries, %	2009	2008	2007
Sweden	33	30	37
Other Europe	58	64	53
North America	4	0	4
Asia, including the Middle East	3	4	4
South America	2	1	1
Africa	0	1	1
Total	100	100	100

Within organic coated products, focus was placed on functional coatings. This involved, among other things, further development of Prelaq Energy, coatings with controlled energy absorption from thermal radiation, as well as coatings with self-cleaning surfaces. Organic coating from renewable raw materials was also another area which expanded.

Production

As a consequence of the general economic situation, for most of the year slab production at the steel mill took place at a reduced pace, approximately 50 percent of normal annual volume. Among other things, there was an extended maintenance outage during the holiday period. Towards the end of the year, however, production returned to a normal level in order to meet somewhat stronger demand and to remedy certain delays in delivery which arose in connection with the start-up following the summer maintenance outage. Total production declined to 1,344 (2,095) thousand tonnes.

Production in the hot-strip rolling mill and downstream lines were also adapted to the weak market during most of the year. Toward the end of the year, production was in principle close to a normal level. Total production for the year amounted to 1,456 (2,362) thousand tonnes.

Production, thousand tonnes	2009	2008	Change, %
Strip steel	1,456	2,362	-38
Slabs	1,344	2,095	-36
Coke	617	746	-17

Profit

Sales declined by SEK 7,890 million to SEK 10,091 (17,981) million. Earnings before depreciation/amortization amounted to SEK -1,016 (3,902) million. Operating profit declined by SEK 4,961 million to SEK -1,637 (3,324) million. Profit includes write-down of inventories of SEK 200 (0) million. Profit for 2008 included non-recurring items of SEK +114 million.

SSAB Plate

SEK millions	2009	2008
Sales	7,634	13,237
Operating profi t	-73	3,154
Operating cash fl ow	1,312	1,818
Capital expenditures	554	659
Capital employed at year-end	7,868	8,683
Return on capital employed (%) 1)	neg	40
Average number of employees	2,266	2,570
1) Refers to return on average capital employed.

Share of the Group

Sales 22%

Registered number of employees 29%

Capital employed 16%

SSAB Plate is the world's leading manufacturer of quenched steels, i.e. plate with extra high strength and good weldability combined with high abrasion resistance and good formability. The main products are abrasion resistant steels and construction steels, which are marketed under the Hardox and Weldox, as well as Toolox and Armox brands, in more than 45 countries throughout the world.

SSAB Plate's quenched steels give the customers the possibility to design and manufacture light, strong products with good total economy. The products contribute to a more sustainable world, since lighter end products require smaller quantities of steel. In addition, in most areas of use, the steels give rise to reduced energy consumption and a longer lifespan.

The products are mostly sold and delivered directly to end customers, with properties that are tailored to their needs.

Hardox products are used in applications in which there are major demands as regards hardness, high strength, and toughness, combined with good welding and bending characteristics. Important areas of use include construction machinery and mining equipment.

Weldox is characterized by good weldability and formability in combination with high strength, as well as fl atness and fi ne surfaces. Construction steels are used, among other things, in the manufacture of cranes and bridges.

Manufacturing takes place in Oxelösund in an integrated process from iron ore to fi nished plate. Thicknesses can vary between 3–170 mm, with widths of up to 3,500 mm.

The main competitors within quenched steels are ThyssenKrupp and Dillingen in Europe, and ArcelorMittal and Algoma, in North America.

Market

SSAB Plate enjoys a very strong market position. The sales force is highly specialized and is continually engaged in seeking new applications and areas of use for the products. The offering comprises a combination of products and services. The aim is to make SSAB the most attractive supplier on the market.

During the year, new sales offi ces were established in

India and Kenya. Marketing activities in South America further intensifi ed and a decision was taken to expand the offering in Chile with further steel processing and to open a sales offi ce in Columbia.

Over several years, Hardox has developed into one of the strongest brands in the steel industry. An important aspect of the Division's marketing is aimed at developing the brand vis-à-vis an even broader target group.

The after-market is cultivated through the international network, Hardox Wear Part Suppliers. This takes place either through independent co-operation partners or by in-house service workshops. Own operations are conducted in Canada, South Africa, Portugal, Singapore and China. The network has some 100 members.

The brand program "Hardox in my body" is an example of how SSAB Plate, together with the customers, creates a joint profi ling of quality products manufactured using top class materials. Just over 200 customers are affi liated to this program.

After almost fi ve years of very strong demand for quenched steels, demand fell sharply at the beginning of 2009. Over time, signifi cant inventories of fi nished machinery, components and steel had been built up at the customers. Due to a signifi cantly lower rate of production in 2009 at most of the Division's customers, deliveries were signifi cantly lower during the year.

In the autumn of 2008, efforts to reach new customers were strengthened and the customer base increased by just over 10 percent in 2009. Orders increased somewhat towards the end of the year.

All in all, the year's deliveries of quenched steels amounted to 304 (585) tonnes and accounted for 88 (94)

percent of total plate deliveries. The geographic breakdown of deliveries is shown in the table below.

Capital expenditures

During the year, decisions were made for new capital expenditures of SEK 344 (1,884) million.

In January, a decision was made regarding an environmental investment of SEK 199 million in an exhaust hood and filter to minimize dust emissions from the coking plant, which will be taken into operation in 2010.

During the autumn, a decision was taken regarding investments to increase annual production capacity by a further 80 thousand tonnes to 780 thousand tonnes. The implementation of the investment was postponed in order to adapt production to the prevailing state of the economy.

In 2008, a decision was also taken to construct three new hot stoves for the blast furnace 2 in Oxelösund. Due to the economic situation, completion was postponed until April 2010. The investment will lead to lower fuel consumption and the release of coke gas, which will further reduce oil consumption in the slab furnaces.

An automatic door and frame cleaning mechanism for the coke plant's pusher cars was installed in 2009. Thanks to this investment, there will be significant ergonomic improvements. Total capital expenditure payments during the year amounted

Share of deliveries, %	2009	2008	2007
Sweden	6	6	10
Other Europe	49	60	61
Asia, including the Middle East	20	14	9
North America	17	14	14
South America	4	3	2
Africa	4	3	4
Total	100	100	100

to SEK 554 (659) million, of which SEK 368 (339) million related to strategic investments.

Production

Slab production in SSAB Plate was kept at a low level during a large part of the year in response to the economic situation. Blast furnace 4 was shut down at the end of 2008 due to weak demand. The blast furnace was re-started at the end of 2009 in response to a moderate increase in demand. Blast furnace 2 was closed for fifteen weeks during an extended summer outage. Due to problems at start-up, ramping up to full production took several weeks longer than normal.

In total, slab production amounted to 383 (1,186) thousand tonnes. The coking plant adapted production to approximately 75 percent of capacity during most of the year, but by the end of 2009 and the beginning of 2010 was back to normal production.

In order to adapt the operations to the downturn in the economy, one slab furnace in the plate production was closed in December 2008. As a consequence of the low utilization level, a large part of the maintenance activities which are normally done during the regular summer outages, were carried out during the first half of the year.

Extensive safety training was completed during 2009 within both the metallurgy and the plate units.

Plate production amounted to 293 (640) thousand tonnes.

Production,
thousand tonnes	2009	2008	Change, %
Slabs	383	1,186	-68
Coke	363	428	-15
Plate	293	640	-54

Profit

Sales fell by SEK 5,603 million to SEK 7,634 (13,237) million. Earnings before depreciation/amortization amounted to SEK 360 (3,520) million. Operating profit declined by SEK 3,227 million to SEK -73 (3,154) million. Profit includes write-down of inventories of SEK 287 (127) million.

SSAB North America

SEK millions	2009	2008
Sales	8,799	16,745
Profi t before depreciation and amortization on surplus values	671	3,696
Operating profi t	-271	2,951
Operating cash fl ow	1,376	4,139
Capital expenditures	295	676
Capital employed at year-end	30,574	34,352
Return on capital employed (%) 1)	neg	10
Average number of employees	993	993

Share of the Group

Sales 29%

Registered number of employees 12%

SSAB North America is one of the leading supplier of plate in the region. The Division produce and sells plate to end use customers, intermediate fabricators and to Steel Service Centers. Important industry segments include oil and gas exploration and transmission, shipbuilding, heavy equipment, transportation, and infrastructure. The wind power industry is an increasingly important end customer group.

The main manufacturing sites include two scrap-based steel works with integrated Steckel rolling mills in Montpelier, Iowa, and Mobile, Alabama. The two steel mills have an aggregate annual capacity of 2.5 million tonnes of crude steel. Production is dictated by order infl ow thus avoiding inventory build-up.

The Division also operates three cut-to-length lines in Houston, Texas; St. Paul, Minnesota, and Scarborough, Ontario, Canada.

Market

The fi rst six months of the year were characterized by extremely weak plate demand. This was a consequence of the slowdown in the North American economy and the global fi nancial crisis which began in the later part of 2008. Numerous projects, most notably within the infrastructure and energy sectors, were discontinued or put on hold due to fi nancing diffi culties.

SSAB North America's orders declined due to destocking efforts by the Division's customers. Among other things, many Original Equipment Manufacturers (OEMs) and Steel Service Centers liquidated much of their inventories. The weak demand also led to downward pressure on prices.

Demand for quenched steel in North America was weak during most of the year. At the same time, inventory levels at the Division's customers were high in late 2008, when the recession began.

Order infl ow improved signifi cantly during the third quarter of 2009, primarily due to stronger demand for coil plate within the energy sector. Other than transmission towers for electricity, demand within most end customer segments

remained relatively weak. Activity increased somewhat after the Steel Service Centers and end customer destocking efforts levelled off.

Plate deliveries amounted to 1,551 (2,446) thousand tonnes, of which 327 (327) thousand tonnes comprised quenched steels and advanced high strength steels. Deliveries of niche products accounted for 21 (13) percent of total deliveries.

Capital expenditures

With focus on securing cash fl ow SSAB North America reduced capital expenditures. During the year, decisions were made regrding new capital expenditures totaling SEK 33 (3,167) million. Most of the strategic investment program announced in August 2008 was postponed due to the prevailing recession and market prospects. Total capital expenditure payments during the year were SEK 295 (676) million.

Product Development

SSAB North America's product development activities focus on meeting the current and future needs of its customers. Development is primarily focused on niche products.

In terms of plate demand, many sectors, particularly energy, are witnessing a trend towards higher strength steels.

This trend drives the need for continuous improvement in the area of thermo-mechanically controlled steels. During 2009, work was successfully completed on developing plate products from SSAB North America for further processing into niche products at SSAB Plate's plants. The close co operation between SSAB Plate and SSAB North America has continued and SSAB North America's customers were able to evaluate

more abrasion-resistant high strength plate grades.

It is planned that a new Research and Development facility in Montpelier will be operational during the second quarter of 2010. The laboratory building will contain advanced equipment for testing, simulation and metallographic trials. The facility's staff will focus on product and process development projects and customer support activities.

Production

Capacity utilization was negatively impacted by the slowdown in the U.S. economy. During the first six months of the year, capacity utilization was just over 50 percent but increased to more than 85 percent in the third and fourth quarters. An effective production and sales organization, together with great flexibility in the production system, were factors which had a positive impact on capacity utilization

in an otherwise weak market. Total plate production for the year was 1,563 (2,345) thousand tonnes.

Production, thousand tonnes	2009	2008	Change, %
Slabs	1,639	2,431	-33
Plate	1,563	2,345	-33

Profit

SSAB North America's sales declined by SEK 7,946 million to SEK 8,799 (16,745) million. Earnings before depreciation/ amortization amounted to SEK 1,090 (4,072) million. Operating profit declined by SEK 3,222 million to SEK -271 (2,951) million. Amortization on surplus values amounted to SEK 942 (745) million.

Tibnor

SEK millions	2009	2008
Sales	5,286	10,562
Operating profi t	-38	634
Operating cash fl ow	725	677
Capital expenditures	65	132
Capital employed at year-end	1,736	2,465
Return on capital employed (%) 1)	neg	31
Average number of employees	931	1,076
1) Relates to the return on average capital employed.

Share of the Group

of employees 10%

Capital employed 3%

channel for SSAB's steel operations, primarily in the Swedish market. The company is owned by SSAB (85 percent) and Outokumpu (15 percent). Tibnor has a leading position in the Nordic countries and also has subsidiaries in Poland and Latvia.

Tibnor is Sweden's leading steel distributor and constitutes an important sales

Tibnor enjoys a leading position within steel and non-ferrous metal trading in the Nordic region. The most important customer segments comprise companies within the automotive, engineering, construction, and processing industries. A signifi cant portion of Tibnor's customers within the automotive and engineering industries are suppliers to Swedish export industries.

Steel is supplied to the Swedish market by steel distributors or directly from Swedish and foreign steel producers. Other players include various Steel Service Centers and companies specializing within a limited product area. The largest competitors among distribution companies in the Nordic region are BE Group and Rautaruukki, as well a number of companies with a narrow product focus, which are either independent or owned by foreign producers.

Tibnor's traditional core business lies within the areas of commercial steels and stainless steel in which industry is supplied with a complete range of strip products, plate, engineering steels and pipes. In addition, the business operations include the sale of non-ferrous metals and constructionrelated steel products. Tibnor's foreign subsidiaries supply their customers with a selection from the product range, depending on market conditions.

Tibnor offers a wide range of services as a supplement to the steel and non-ferrous products. As a consequence of customer demand for tailor-made logistics solutions, steel and non-ferrous metal products are delivered pre-treated for immediate use in the customer's production. Tibnor possesses resources for pre-treatment of materials, such as slitting and cutting to length of strip steel and also has its own production centers for pre-treatment of other materials in the form of cutting in lengths, shot blasting, primer

coating, fi gure cutting, etc. In addition, Tibnor is able to offer production resources through a network of partners in various areas of expertise.

In combination with sales, warehouse and distribution functions that are cost-effi cient and strong in terms of resources, Tibnor is thereby able to be an important partner for the customers in all supplies of steel and non-ferrous products. The objective is that Tibnor can be used as a fi rst stage in the customer's own production.

Within the non-ferrous metals area, specialization has taken place towards trading in non-ferrous metals for industrial use. Within this area, Tibnor is one of the largest distributors of semi-fi nished goods and raw materials of aluminum, copper and brass, not only in Sweden but also in Finland and Denmark.

Tibnor is one of Sweden's leading suppliers of reinforcement products, with major construction companies in the country constituting its most important customer group. Through two plants for the manufacture of insertion-ready rebar products, the company provides tailor-made reinforcement solutions, in addition to standard materials. Tibnor is also one of Sweden's leading suppliers of sheet piling, which is used in the laying of foundations.

Tibnor is continously engaged in structural changes and investments in order to develop its operations and ensure quality and productivity. In 2009, the warehouse in Malmö was shut down and the operations were relocated to Köping and Eskilstuna, where the facilities have been expanded in order to handle the processing of larger volumes. The Steel Service Center operations in Gothenburg and Copenhagen began to relocate to a new facility in Gothenburg. These measures were taken to enhance effi ciency in the operations

and increase the availability of materials to customers. A new drilling and cutting line for long products, primarily beams, was brought into commission during the year. It further expanded Tibnor's range of production services.

Market

Demand fell sharply in the autumn of 2008. The downward trend continued during the first quarter of 2009, with the lowest delivery levels being recorded in March and April. During the spring, prices fell and lead times from suppliers were very short. The market recovered somewhat during the following months, but July developed quite weakly due to the fact that many customers had long summer stoppages. During the autumn, the delivery trend stabilized at a low level, however somewhat higher than in the spring. All in all, deliveries in 2009 fell by 45 percent.

Production at the steel mills was sharply curtailed in the spring of 2009, and this resulted in long lead times and, in certain cases, shortage of materials at the suppliers when the market recovered slightly after the summer. This, in turn, led to a certain increase in prices on the market during the autumn.

Norsk Stål and Norsk Stål Tynnplater

Tibnor owns 50 percent of the shares in Norsk Stål and Norsk Stål Tynnplater. The remaining 50 percent stake is owned by Corus.

Norsk Stål is Norway's largest steel distributor. Sales for the year decreased to SEK 2,170 (3,403) million, and Tibnor's share of earnings was SEK -4 (-6) million. There were 290 (327) employees.

Norsk Stål Tynnplater is Norway's largest Steel Service Center. Sales for the year amounted to SEK 487 (808) million and Tibnor's share of earnings was SEK -8 (17) million. There were 45 (56) employees.

Profit

The Tibnor group's sales in 2009 amounted to SEK 5,286 (10,562) million, which was 50 percent lower than in the preceding year. Earnings before depreciation/amortization amounted to SEK 22 (692) million. Operating profit was SEK -38 (634) million. The sharp deterioration compared with 2008 was due primarily to reduced volumes and lower prices. Gross margins were higher than in 2008 and the cost level was lower. Profit includes a negative effect of inventory appraisal of SEK 132 (250) million.

SEK millions	2009	2008	Change, %
Strip and plate	2,013	4,054	-50
Long products	1,107	2,169	-49
Engineering steels	713	1,520	-53
Non-ferrous metals	647	1,243	-48
Stainless steel	527	962	-45
Reinforcement products	266	601	-56
Other	13	13	-
Total	5,286	10,562	-50

Other companies

Profit after financial items in each company

SEK millions	2009	2008
Plannja	-68	20
Lulekraft	5	10
Oxelösunds Hamn	31	28

Plannja

Plannja is wholly owned by SSAB. It is one of Europe's leading producers of building sheet, with a geographic focus on the Nordic region, the rest of the Baltic region, as well as Central and Eastern Europe. The product range consists of a comprehensive range of flat and profiled building sheet, sheet roofing tiles, rainwater run-off goods, and sandwich-type wall panels. Plannja's products are based overwhelmingly on metal coated strip steel. Most of the material are being supplied by SSAB Strip Products. Demand during the year was weak, impacted by the severe contraction in the building industry.

As a consequence of the deteriorating market prospects, in 2009 a restructuring project was carried out in which parts of the production in Luleå and the production in Denmark were integrated into the existing production in Järnforsen. The measures are intended to strengthen Plannja's offering, increase productivity and improve cost efficiency.

Sales declined to SEK 1,342 (1,796) million and the result after financial items was SEK -68 (20) million. There were 553 (622) employees.

Lulekraft

Lulekraft operates a combined heat and power plant in Luleå. The company is owned by SSAB (50 percent) and the municipality of Luleå (50 percent). The combined heat and power plant utilizes energy-rich gases from SSAB Strip Products' steel production and produces district heating

and electricity. The district heating is sold to Luleå Energi, which distributes it to approximately 20,000 households in the municipality of Luleå. The electricity is sold to SSAB Strip Products.

In 2009, the power plant produced 789 (776) GWh of district heating and 444 (597) GWh of electricity. Sales decreased to SEK 292 (394) million. Profit after financial items was SEK 5 (10) million. There were 29 (30) employees.

Oxelösunds Hamn

The port operations in Oxelösund are among the largest in Sweden. The port has excellent draught conditions and plays an important role in the Group's extensive imports of raw materials and exports of strip and plate. Oxelösunds Hamn is owned by SSAB (50 percent) and the municipality of Oxelösund (50 percent).

Sales in 2009 decreased somewhat to SEK 238 (262) million. Profit after financial items was SEK 31 (28) million. There were 193 (219) employees.

SSAB ANNUAL REPORT 2009 – 33

Report of the Directors

SSAB's environmental activities support the business strategy

Continued focus on advanced high strength steel products results in a more efficient use of resources, particularly for SSAB's customers. SSAB's environmental programs are conducted in a systematic and proactive manner governed by objectives to constantly reduce the impact on the environment. Ongoing employee education and active participation in such programs are vital to maintaining the highest environmental standards.

The Group's Environmental Council, a coordinated team of representatives throughout the organization, is responsible for overseeing SSAB's strategic environmental initiatives.

Within each division and subsidiary there are special environmental departments with responsibility for ensuring compliance with laws and contracts, administering permit applications and measuring and reporting emissions. All manufacturing units have environmental management systems approved in accordance with ISO 14001. Such systems are integral to the units' operations.

Each SSAB production plant conducts monitoring programs and tests water, air and noise samples of the immediate environment. The results are reported to the relevant authorities.

Continued efforts to decrease impact on the environment

The past year has been characterized by a number of improvement and efficiency enhancement measures. Even though there has been reduced production output in 2009, SSAB has equipped the plants for continued production improvements.

Exhaust hood and filter system in Oxelösund

In 2009, a decision was taken regarding a new exhaust hood and filter system at SSAB Plate's coking plant in Oxelösund. The system will significantly limit dust emissions, which will improve the working environment and benefit residents in the community. Based on experience from Luleå, it is estimated that dust emissions can be reduced by one hundred tonnes per year. The investment amounts to approximately SEK 200 million.

Recycling of dust generates cost savings

At SSAB North America's plant in Mobile, Alabama, electric arc furnace dust is recycled representing cost savings of approximately USD 1 million. At the end of 2009, the electric arc furnace dust from Montpelier, Iowa, was also sent to a recycling plant. Under normal production this translates to

the recycling of 40,000 tonnes of dust that was previously disposed of.

Application procedures during the year

SSAB Strip Products in Borlänge has applied and received approval for the construction of a quenching line at the hot strip rolling mill, which will allow for the production of higher strength steels. The largest environmental impact is an increased need for water for cooling, but thanks to an efficient closed system, the degree of recirculation will increase.

At the beginning of 2009, SSAB in Mobile applied for a permit to construct a new tank vacuum plant.

Positive results in Luleå

SSAB's steel mill in Luleå has invested in a LD secondary filter for dust separation, which has already demonstrated good results and decreased dust emissions. It has been possible to reduce these emissions by 90 percent, equivalent to a decrease of approximately 10 percent in the steel mill's total dust emissions

Research and development efforts

Leading edge knowledge and expertise is crucial for SSAB's position as a leading manufacturer of advanced high strength steels. Through both its own development work and through joint environmental research projects with other steel producers, SSAB is engaged in the continued development of an environmentally sustainable manufacturing process.

Research into new steel production technology

Since the middle of the 1970s, carbon dioxide emissions per tonne of produced steel have halved in Europe due to continuous improvement efforts. Together with industry partners, SSAB is actively working to identify and evaluate new technology which may lead to a potential reduction in carbon dioxide emissions, which cannot be achieved using current technology. An important part of this work involves carbon capture and storage technology, where SSAB is active within both Swedish and international research communities.

The EU's ULCOS project was launched in 2004. Its objective is to halve the carbon dioxide emissions related to the steel production process. The project, which involves research into entirely new steel production technology, is now in a phase to test the most promising technology and evaluate on a larger scale. In 2009, SSAB further strengthened its commitment to the project and became a member of the steering group.

SSAB is participating in the Stålkretsloppet (Steel echocycle) program, which is co-financed by the Swedish steel industry and Mistra (the Foundation for Strategic Environment Research). In 2005, this four-year research program started with the aim of "developing safe, resource-efficient and recyclable products which satisfy the more stringent demands of society." SSAB is one of the industry financiers and is actively participating in four sub-projects during the period 2009-2012.

ENVIRONMENTAL IMPACT DURING THE PROCESS During 2009, SSAB's pace of production was affected by the global demand for steel. The production stoppage was longer than in prior years and thus the total impact on the environment was also lower during this period. The uneven rate of production affected the result and made it difficult to measure improvements. However, SSAB is continuing to invest in improvement programs which create better products and more favorable conditions for the environment.

Raw materials, byproducts and types of energy in the processes

SSAB uses two different steelmaking production processes to manufacture its high strength steel products.

In Sweden, hot metal is produced in three blast furnaces, one of which is located in Luleå and two in Oxelösund. Iron ore pellets are reduced to hot liquid metal through the use of coal and coke. Oxygen is used to lower the hot metal's carbon content until it becomes steel and contaminants are removed through the use of lime. The process takes place in an oxygen converter and generates excess heat, which is

cooled through the addition of scrap metal, primarily derived from the plants themselves.

In North America, hot metal is produced using recycled steel – scrap – which is smelted in electric arc furnaces. The scrap metal is purchased on the open market. The electric arc furnaces are operated using electrical power.

In 2009, 47 percent of SSAB's total steel production was based on iron ore and 53 percent on recycled scrap metal. This can be compared with the international average in which recycled steel accounts for 35 percent of produced steel.

Both of the processes produce liquid steel which is subsequently refined with different processes and alloys in various finishing stages before being cast in the continuous casting line. The slabs that are manufactured in the continuous casting line are further processed in the rolling mills into different grades of steel. Today, SSAB produces both strip steel and plate in Sweden and plate in North America.

Steel production generates large quantities of heat, gas, slag and dust, which are utilized to a large extent.

The blast furnaces' coke requirements, during normal production, are largely supplied by SSAB's coking plants. The coking process generates several byproducts in the form of coke furnace gas, tar, ammonium sulphate, benzene, sulfur and sulfuric acid. The coke furnace gas constitutes a source of energy in various heating ovens and in heat and power plants, and thereupon replaces oil. Other byproducts are sold on the market to various industries including pharmaceutical companies.

Different types of energy are used in the heating furnaces for steel and slabs. Natural gas is used in the United States, while coke furnace gas, LPG, oil and electric power are used in Sweden.

Energy-rich coke oven and blast furnace gases not used in the steel production process are utilized in heat and power plants, and supply SSAB with approximately 50 percent of the electrical power needed in the Swedish operations. In addition, district heating is delivered to over 70 percent of the

Read more about the production process in Steel Book, which is available on www.ssab.com

Material and Energy Balance and Carbon Dioxide Emissions for the production of 1 tonne of steel in the SSAB Group 2009

Flows also include the heat and power plants in Lulea and Oxelösund which mainly are using the process gases from SSAB's operations.

population in the urban areas of Oxelösund and Luleå, and approximately 15 percent of the population in Borlänge.

Carbon dioxide

During the steel production process, the use of coal, coke, oil, natural gas, and LPG gives rise to carbon dioxide emissions. With the help of coal and coke in the blast furnaces, iron is produced through the reduction of iron ore, which generates carbon dioxide. International comparisons demonstrate that SSAB's blast furnaces are at the forefront in terms of low carbon dioxide emissions per tonne of hot metal. There are several reasons for this: high quality raw materials such as iron ore pellets and coke, as well as efficient processes. It is also important that the blast furnaces are able to operate without interruption. In Oxelösund, there is a granulation plant for hot metal, and consequently the blast furnaces can continue to produce even if subsequent stages in the production chain are standing idle.

SSAB's plants in the United States manufacture steel based on recycled scrap metal. Certain quantities of coal and natural gas are used in the manufacturing process, but electricity is primarily used for smelting the scrap metal, which generates smaller emissions of carbon dioxide than in the case of production of steel from iron ore.

In 2009, SSAB delivered approximately 1.0 million tonnes of steel niche products. If the use of the high strength steel were to be replaced by ordinary steel, an additional 0.45 million tonnes of steel would be required to withstand the same load. Since the production of each tonne of finished steel generates approximately two tonnes of carbon dioxide during normal production via blast furnace, then thanks to the use of SSAB's high strength steels, carbon dioxide emissions are 0.89 million tonnes lower than if ordinary steels were used for the same purpose. The example is based on high strength steel having a yield point which is twice as high as that of the ordinary steel, with the weight consequently being reduced by approximately 30 percent.

Nitrogen and sulfur dioxides

Various types of combustion generate nitrogen and sulfur dioxides emissions. Significant sources include slab heating furnaces and, in Sweden, under-firing of the coke batteries and firing of Cowper stoves for the blast furnaces. In Sweden, the fuel consists of blast furnace gas, coke oven gas, LPG and oil and, in the United States, natural gas. SSAB chooses low sulfur content oil and gas to reduce sulfur dioxide emissions and it has made positive steps to reduce nitrogen oxide emissions by continuously adjusting the burners.

Dust

On a regular basis, dust levels from the operations are measured; all newly constructed plants meet stringent dust emission standards. At older plants, improvement work is constantly taking place to reduce such emissions. A few of these improvement projects including the new exhaust hood in Oxelösund, the LD secondary filter in Luleå and the dust recycling programs in SSAB's North American plants, are described in the environmental events section.

Water emissions in the steel manufacturing process

Large quantities of water are used for cooling furnaces, coke and steel. This process use takes place primarily in closed systems and the water is purified through sedimentation and filters before leaving the industrial area. SSAB conducts extensive water quality control to ensure compliance with all government and local authority requirements.

Recycling and more efficient use of resources In order to minimize the use of natural resources such as iron ore, coal and energy, SSAB's objective is to achieve the highest levels of recycling possible throughout its operations.

Through the use of scrap metal and the recycling of slag, SSAB reduces the need for iron ore and lime. Approximately one-half of all converter slag is returned to the blast furnaces. Slag contains 15–20 percent iron and 40 percent burnt lime.

1) Relates to the Swedish steel operations. Due to the low porduction level during 2009, the efficiency went down and the emissions per tonne produced steel increased.

Coal and coke requirements are minimized in several ways. One example is that dust containing coal from the blast furnace gas purification plants is returned to the blast furnaces. The electric arc furnace in Mobile represents another example. Since 2004, almost 2.6 million worn-out tires have replaced a corresponding quantity of coke. Since 2008, SSAB's Mobile facility has also recycled coal residue from spills, which were previously treated as waste and cleaned up. In this way, up to 60 percent of the coal which is used for the electric furnaces is replaced.

By recycling process gases, SSAB keeps oil and electricity needs to a minimum, which also benefits the local communities through the production of district heating.

Byproducts and new markets

During the steel production process, valuable byproducts are recycled for use in other industries. SSAB sells the by products for various purposes, primarily through its subsidiary, Merox.

Merox's high quality products include Hyttsten, which is used for road construction purposes and gives the road a significantly longer life, allowing roads to be built using less materials. Also, the cement and concrete materials, Merit 5000 and Merolit, replace burnt lime. The use of one tonne of slag as a raw material in cement reduces carbon dioxide emissions by one tonne, compared with the use of lime stone. Other products include Paddex for riding tracks, an organic plant fertilizer, M-kalk and Black Iron, which is used in the manufacture of ferrite magnates, which are included in many of today's electrical goods, ranging from mobile phones to cars. In the United States, the largest byproducts are steel slag and oxide scale. These are used in asphalt and cement production.

Regulated handling of waste

Steel production also generates waste; i.e., materials for which, at present, there are no environmentally or economically justified area of use or materials which, for environmental reasons, are removed from the production use cycle. At SSAB, waste largely consists of flue gas purification dust which, due to physical or chemical properties, cannot presently be reused. The waste is handled either through destruction or depositing. The company's deposits are strictly regulated by governmental authorities. The waste is handled in such a way that it will be possible to utilize these resources in the future.

Rail transportation dominates

Transportation takes place primarily by rail, ship and truck. All divisions within SSAB have their own logistics departments, with the objective of making transportation as efficient and cost-effective as possible.

In Sweden, raw materials are transported to Luleå and Oxelösund by rail or ship. Steel slabs are transported by rail between the production sites. This year once again, SSAB

Strip Products and Plate locations in Sweden were awarded Green Cargo's "Climate Certificate for Transportation", meeting the criteria established by the Swedish Society for Nature Preservation with respect to Good Environmental Choice for Transportation.

Prior to the construction of SSAB North America's two electric steel plants in Montpelier and Mobile, the locations were chosen based on the potential market and access to their most important raw material – scrap metal. This strategy minimizes the environmental impact of the transportation since all plants have access to railways. In North America, the inland waterway system is also used.

Environmental conditions for the operations SSAB's operations are covered by several hundred environmental conditions which regulate production levels, air and water emissions, noise levels and regulations regarding deposits. All production units comply with their respective local environmental requirements.

In Sweden, the Environmental Court establishes conditions for the operations at SSAB's major plants following a public assessment. Swedish environmental legislation is affected to a great extent by decisions taken by the European Parliament and the Council of Ministers. In the United States, environmental legislation is controlled through the federal government and through the Environmental Protection Agency.

The Group holds mandatory environmental damage insurance as well as liability insurance covering damage to third parties.

In Sweden, production permits are based mainly on a maximum permitted produced tonnage per year, while in North America, permits are based on productivity restrictions in the form of maximum produced tonnage per hour.

The maximum permitted production levels for the Swedish operations are shown in the table below.

Thousand tonnes	Locality	Permitted production	Production 2009
Coke	Luleå Oxelösund	800 530	617 363
Hot metal	Luleå Oxelösund	2,530 1,900	1,549 417
Crude steel	Luleå Oxelösund	2,530 1,900	1,471 416
Hot-rolled steel	Borlänge Oxelösund	3,200 820	1,476 293
Pickled steel	Borlänge	2,500	1,064
Cold-rolled steel	Borlänge	1,400	752
Annealed steel	Borlänge	650	362
Metal-coated steel	Borlänge	680	378
Organic-coated products	Borlänge Luleå Köping Finspång *	140 85 30 40	102 16 18 20

* Unit million m2

For more information concerning the sustainability work, see SSAB's Sustainability Report 2009, which is available on www.ssab.com

» The retractable spreader arms on the sprayer unit manufactured by the Italian company, Andreoli, are 50 percent lighter than similar units made of standard steel. The combination of rigidity and lightness increases both flexibility and precision, thereby minimizing the use of chemicals. In addition, production costs are significantly lower. «

Employees are crucial to the change initiatives

2009 has been a year of great challenges for SSAB's employees. To ensure the organization is well positioned for the future, strong focus has been placed on continued skills development, while at the same time personnel reductions have been carried out throughout the Group.

Internal mobility contributes to development

The overarching aim of SSAB's HR strategy is to continue to develop the organization and strengthen its highperformance culture. The employees' commitment to skills development and mutual learning are key factors in SSAB's journey to become a knowledge-based company.

Internal mobility helps develop employees' skills and increase the dissemination of knowledge throughout the Company, which is positive. SSAB encourages internal mobility and skills development through initiatives such as the introduction of individual development plans for all employees, the implementation of annual performance and planning interviews between managers and employees, and the use of a joint CV database to fill internal vacancies. SSAB has already achieved increased internal mobility and a growing interest among employees to take part in the CV database.

Leadership excellence is crucial to ssab's continued success

Generally speaking, SSAB endeavours to recruit internally to fill managerial positions within the Group. The ambition is to have three internal candidates per vacant managerial position. Within the new organization structure, a high degree of internal staffing was required for the business areas demonstrating SSAB's ongoing commitment to successfully identify and develop employees with the correct skill set. Thanks to conscious efforts to address generational change, knowledge sharing and skill transfer, all management groups reflect diverse age groups, talents and cultural backgrounds.

As part of the long-term work, the Group Executive Committee has implemented a management development review process involving six key criteria to identify, appoint, develop, and evaluate SSAB's managers.

The identification of roles and opportunities for specialist careers within the Company also constitutes an important element in the succession planning and skills development work. Throughout the year, this process takes place continuously in the organization and during the year, SSAB has identified three levels of speciallists.

Special training programs throughout the year

Taking advantage of periods of reduced production in 2009, SSAB carried out special training programs aimed at equipping employees and preparing the organization for future market demands. Most notably, SSAB initiated one of the largest training sessions in Sweden during this time; the highly successful "Customer's Business in Focus" course was attended by over 1,160 employees and implemented at several locations within the Group.

Criteria for managers:

• Achieves results
• Sets an example
• Realizes improvements • Gives others development
opportunities • Generates energy
• Is aware of own strengths and weaknesses

SSAB – an attractive knowledge company

In an annual survey conducted by the research company, Universum, SSAB improved its ranking in the category of workplaces considered most attractive to newly graduated engineers in Sweden. One reason for this is that SSAB has become more active in its recruitment activities at universities and colleges, therefore creating more awareness of the potential opportunities available within the Group. Also in 2009, the business magazine Veckans Affärer designated SSAB as one of the best workplaces in Sweden and was named one of the 40 best equal opportunity employers.

Dialogue in conjunction with operational changes

At the end of 2008, SSAB announced cost savings measures which, among other things, involved personnel reductions in 2009. While the negotiations began in 2008, the implementation work continued through 2009.

In Sweden, SSAB has worked closely with the career transition organization, Trygghetsrådet, and Startkraft, to help support managers, union representatives and other employees affected by the changes. Since the changes affect the entire Company, constructive dialogue has been conducted with those employees who had to leave SSAB and those who remain with the organization.

In North America, the personnel reductions have primarily affected subcontractors and consultants. Personnel costs have been reduced largely as a result of variable wages which were impacted with declines in production.

Diversity strengthens ssab's business

Diversity strengthens the Company's ability to develop its employees and achieve success. SSAB's commitment to workplace diversity and equality opportunities begins with the nine members of the Group Executive Committee. Two of the nine members are women. With a variety of backgrounds and experiences, the Group Executive Committee's members reflect different ages, genders and nationalities.

Within the new business areas, the composition of the managerial corps areas also reveals ongoing dedication to diversity throughout SSAB which, together with increased internal mobility, lays the foundation for a stronger global organization.

SSAB operates in a traditionally male-dominated indus-

try, especially with regard to production employees. In 2009, the percentage of women in the Group remained stable at 18 percent. The percentage of female managers in the Group increased to 16 percent (14 percent), indicating that the gap between the percentage of female managers and percentage of other female employees has diminished.

Continued exchange of knowledge within health and safety

Health and safety are fundamental prerequisites as an attractive employer. SSAB's goal is to focus on continuous improvement efforts so that best practices can be shared across the business areas. In this vein, the North American operations can be regarded as an industry leader in terms of health and safety programs. In 2009, the Group's safety coordination manager presided over an internal work group on health and safety. In an effort to proactively identify health and safety issues, the work group has focused on sharing innovations, implementing best practices and exchanging lessons learned from accidents and near misses.

Order and tidiness are crucial

Order and tidiness in the workplace are the cornerstones of the preventive health and safety programs. For several years, in an effort to help raise awareness and education of safety issues within the employee community, SSAB North America has promoted the widespread internal use of safety innovations and solutions. Such proactive measures were taken as a result of initiatives led by workgroups and individual employees. The continuous improvement work and

Average number of employees, gender break down					Age structure
	employees	Number of		Women, %	Ages
	2009	2008	2009	2008
Parent Company					60–
Sweden	44	44	40	38	50–59
Subsidiaries
Sweden	6,453	7,289	18	18	40–49
USA	959	992	13	13
Other	878	847	24	22	30–39
Total	8,334	9,172	18	18

implementation of best practices is supported by the SSAB One production system, which also includes the Six Sigma program. With a focus on quality and efficiency improvements, Six Sigma involves structured work for measuring, controlling and reducing deviations. Order and tidiness help prevent many accidents, while at the same time create positive synergies such as cost and resource savings.

Several of SSAB's operations are in the process of implementing OHSAS 18001, an international occupational health and safety management system. At present, the plants in Luleå are certified and there are implementation plans in place for Borlänge, Mobile and Montpelier. The system offers a clear and systematic approach and is verified through external third party certification. Overall, the various activities have contributed to numerous positive developments throughout the organization.

Preventive healthcare

SSAB has a major commitment to promoting health and wellness programs throughout the organization.

A number of preventive healthcare projects are underway within the various operations. Examples include support for hiking paths in the vicinity of the steel mills in North America, a joint healthcare center project with the local municipality in Oxelösund, as well as the HälsoSAM health project to improve the work environment and ergonomy in Luleå. Borlänge has also adapted the HälsoSAM model. The active promotion of the importance of health issues has yielded good results. Sick leave within the Swedish part of the Group in 2009 fell to 3.4 (4.2) percent. Sick leave was 4.3 (5.5)

percent for blue collar workers and 1.8 (2.1) percent for professional staff.

Personnel

During the year, the number of employees fell by 830, primarily as a result of the cost savings program. At the end of the year, there were 8,454 (9,284) employees.

Number of employees at year-end	2009	2008	Change, %
SSAB Strip Products	3,465	3,731	-7
SSAB Plate	2,478	2,753	-10
SSAB North America	1,007	1,016	-1
Tibnor	857	1,046	-18
Other	647	738	-12
Total	8,454	9,284	-9

Personnel expenses Sick leave Number of accidents

Per million work hours 20

Long-term supplier relationships

As SSAB purchases large volumes of raw materials for its steelmaking operations, it is vital to have long-term relationships with key suppliers. As a result, SSAB is committed to maintaining the internationally accepted principles for human rights through its participation in the UN's Global Compact from 2010.

A foundation of internationally accepted principles

SSAB's Code of Business Ethics is the most important control document when working with suppliers. The Code is based on the United Nations' Declaration on Human Rights, particularly with respect to the abolition of forced labor and child labor. SSAB communicates its Code of Business Ethics and encourages suppliers to comply with them. Respect for fundamental human rights is a criterion in supplier selection.

SSAB's Code of Business Ethics is supplemented by SSAB's Instructions regarding the Giving and Acceptance of Bribes. The Instructions provide employees with clear information outlining how SSAB defines bribery and improper

The Global Compact's ten principles

1. Businesses should support and respect the protection of internationally proclaimed human rights; and
1. Make sure that they are not complicit in human rights abuses.
1. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; and
1. The elimination of all forms of forced and compulsory labor; and
1. The effective abolition of child labor; and
1. The elimination of discrimination in respect of employment and occupation.
1. Businesses should support a precautionary approach to environmental challenges; and
1. Undertake initiatives to promote greater environmental responsibilities; and
1. Encourage the development and diffusion of environmentally friendly technologies.
1. Businesses should work against corruption in all its forms, including extortion and bribery.

benefits, expectations for employee compliance regarding suppliers, customers and other business partners and the prohibition on the giving and acceptance of bribes.

From 2010, SSAB is a member of the UN Global Compact and will continue to apply its principles when working with suppliers.

Follow up and control

SSAB endeavors to be a dedicated and knowledgeable purchaser and believes in positive, long-term supplier relationships. The divisions and subsidiaries are responsible for monitoring their respective suppliers' compliance with SSAB's principles.

Each division and subsidiary carries out a risk assessment with regard to its suppliers, including the monitoring of working conditions. Industries or countries associated posing higher risks with respect to fundamental human rights are closely monitored. To ensure due diligence, monitoring activities include obtaining and verifying the codes of conduct, or certification of compliance with the United Nations' Declaration on Human Rights. Another method is to verify working conditions at factories and plants through site visits.

New internal workgroup for purchasing

In 2009, in an effort to strengthen the review and evaluation process regarding supplier working conditions, SSAB formed a workgroup involving purchasing and legal representatives from the divisions and subsidiaries. Throughout the year, the group has held regular meetings aimed at identifying an effective way to conduct supplier evaluations and systematic follow up of working conditions.

» Thanks to an advanced sandwich construction made of high strength steel, the Spanish company, Lecitrailer, is producing a new truck trailer which has the same weight, strength and rigidity as other similar products, but at a significantly lower cost.«

SSAB on the stock exchange

SSAB's shares are listed on the Nasdaq OMX Stockholm, Large cap list. OMX Nordic Exchange issues call and put options on the shares.

The final transaction prices in 2009 were SEK 122.10 for SSAB's class A share and SEK 111.50 for SSAB's class B share, corresponding to a total market capitalization of almost SEK 39 billion. During the year, SSAB's class A share increased in price by 80 percent and the class B share by 76 percent. During the same period, Nasdaq OMX Stockholm increased by 47 percent. The highest transaction prices during the year were listed on December 29 and were SEK 124.90 for the class A share and SEK 113.00 for the class B share. The lowest transaction prices, SEK 53.00 and SEK 50.00 respectively, were listed on January 23. During the year, SSAB's shares were traded for almost SEK 81 billion. Trading in shares took place on all exchange days and averaged approximately SEK 322 million per day. The volume of traded A-shares corresponded to 313 percent of the average number of outstanding shares. The volume of traded B-shares corresponded to 169 percent of the average number of outstanding shares. SSAB's shares accounted for 2.38 percent of trading on the Nasdaq OMX Stockholm Exchange. The SSAB-share is also traded on market places such as BOAT, Burgundy, Chi-X and Turqouise.

Dividends

Dividends shall be adjusted to the average profit level over a business cycle and, in the long term, constitute approximately 50 percent of profit after tax. It should also be possible to use dividends to adjust the capital structure. For the 2009 financial year, a dividend to the shareholders is proposed of SEK 1.00 per share. For the 2008 financial year, the dividend

Owners as of December 31, 2009

	% of share capital	% of votes
Industrivärden	16.0	20.7
Swedbank Robur Funds	7.0	5.8
LKAB	3.8	5.0
AMF – Försäkring och Fonder	2.5	3.3
Nordea Investment Funds – Sweden	2.0	1.9
Afa Försäkring	1.7	0.2
SEB Investment Management	1.6	1.6
Folksam – KPA – Förenade Liv	1.6	1.8
Skandia Liv	1.5	0.7
Handelsbanken incl. pension fund	1.4	1.6
Handelsbanken fonder incl. XACT	1.4	1.4
Second Swedish National Pension Fund	1.2	1.3
Foreign-registered shareholders	21.5	21.9
Other shareholders	36.8	32.9
Total	100.0	100.0

amounted to SEK 4.00 per share, i.e. 19 percent of profit after tax.

Share capital

At the end of the year there were 323,934,775 shares, divided into 240,765,832 class A shares and 83,168,943 class B shares, which was unchanged since December 31, 2008. Each class A share carries one vote and each class B share carries one-tenth of one vote. The quotient value per share is SEK 8.80. At the end of 2009, SSAB's three largest owner groups in terms of capital were Industrivärden, Swebank Robur Funds and LKAB. It should be noted that the holdings of foreign owners in SSAB are nominee-registered. At the end of 2009, SSAB had just almost 70,000 shareholders, an increase of 7,000 during the year. The 10 largest identified owners together owned 39 percent of the share capital and 42 percent of the voting capital. Foreign-registered ownership in SSAB was more or less unchanged during the year and, at the end of December, represented approximately 22 percent of the share capital.

Investor relations

During 2009, a large number of meetings took place with representatives of financial institutions. Meetings were held, among other places, in Stockholm, New York, Boston, London, Frankfurt, Edinburgh, Madrid, and Paris. Presentations were regularly arranged in connection with publication of interim reports and the results for the year.

Ticker

NASDAQ OMX Stockholm AB: class A SSAB A (SSE300) NASDAQ OMX Stockholm AB: class B SSAB B (SSE301)

Share breakdown

Shareholding	Number	% of all shareholders
1–500	36,607	52.4
501–1 000	12,297	17.6
1 001–5 000	18,479	26.4
5 001–10 000	1,275	1.8
10 001–15 000	340	0.5
15 001–20 000	178	0.3
20 001–	733	1.0
Total	69,910	100.0

The share's performance Number of shares traded, Nasdaq OMX

The number of shares and the share capital have changed since 1989 as follows:

Year		Change in number of of shares	Number of shares	Change in share capital SEK millions	Share capital SEK millions
1989	Conversion	1,500,000	26,500,000	150	2,650
1994	Conversion	5,500,000	32,000,000	550	3,200
1995	4:1 split	96,000,000	128,000,000	0	3,200
1998	Redemption	-15,891,199	112,108,801	-397	2,803
2001	Reduction	-11,210,880	100,897,921	-281	2,522
2005	Redemption	-9,968,861	90,929,060	-249	2,273
2006	Redemption	-4,546,453	86,382,607	-114	2,159
2006	Bonus issue	0	86,382,607	121	2,280
2006	3:1 split	172,765,214	259,147,821	0	2,280
2007	1:4 new issue	64,786,954	323,934,775	571	2,851

Data per share

	2009	2008	2007	2006	2005
Exchange price December 31, class A share, SEK	122.10	68.00	176.00	148.69	87.72
Profit, SEK 1)	-3.09	21.41	15.36	14.66	12.87
Cash flow, SEK 1)	7.64	91.20	neg	14.29	14.81
Equity, SEK 1)	95.21	108.64	89.19	59.18	52.01
Dividend, SEK	1.002)	4.00	5.00	4.50	3.00
Average number of shares, million.	323.9	323.9	296.9	265.5	285.6
Number of shares at year-end, million	323.9	323.9	323.9	259.1	90.9
Number of shares at year-end adjusted for split, million	323.9	323.9	323.9	259.1	272.8
Market capitalization, SEK millions, Decemer 31	38,671	21,653	55,599	41,579	25,805
Valuation
Direct yield, %	0.8	5.9	2.8	3.0	3.4
P/E ratio	neg	3.2	11.5	10.1	6.8
Price/equity, %	128	63	197	251	169

1) Adjusted based on the final value of net assets in IPSCO Inc.

2) In accordance with the Board's proposal.

5-year summary

	2009	20085)	2007 5)	2006	2005
Sales (SEK millions)	29,838	54,329	40,441	31,054	27,804
Operating profit (SEK millions)	-1,592	9,516	7,923	5,951	5,712
Profit after financial items (SEK millions)	-2,061	8,953	6,964	5,949	5,648
Profit after tax for shareholders in the Company (SEK millions) 1)	-1,002	6,935	4,560	4,253	4,021
Investments in plant and operations (SEK millions)	1,912	2,606	57,592	1,407	853
Cash flow from current operations (SEK millions)	3,387	5,387	3,574	3,958	2,976
Net debt (SEK millions)	15,314	16,992	43,643	-176	407
Capital employed at year-end (SEK millions)	50,015	55,511	74,390	17,285	16,658
Total assets (SEK millions)	60,419	69,255	91,706	22,795	21,820
Return on capital employed before tax (%)	neg	17	18	36	34
Return on equity after tax (%)	neg	22	22	29	30
Equity ratio (%)	51	51	32	68	66
Net debt/equity ratio (%)	49	48	150	-1	3
Dividend per share (SEK) - 2009 proposal 2)	1.00	4.00	5.00	4.50	3.00
Earnings per share (SEK) 2)	-3.09	21.41	15.36	14.66	12.87
Average number of employees 3)	8,334	9,172	8,663	8,031	8,832
Sales per average employee (SEK millions)	3.6	5.9	4.7	3.9	3.1
Production of crude steel (thousand tonnes) 4)	3,553	6,074	6,540	3,737	3,966

1) Earnings from the discontinued tubular business in IPSCO impacted on earnings for 2009 in the amount of SEK -131 million and for 2008 in the amount of SEK 490 million.

2) Data per share has been recalculated in light of the 3:1 split carried out in 2006 and the 1:4 new issue carried out in 2007.

3) New definition commencing 2007. Only the 2006 figure has been adjusted.

4) 2007 includes "old SSAB" with 3,957 thousand tonnes and SSAB North America for the full year of 2007 with 2,583 thousand tonnes.

5) Excluding the divested tubular business.

Financial reports Table of contents

Consolidated income statement 48

Consolidated statement of
comprehensive income	48
Consolidated balance sheet	49
Consolidated statement of changes in equity	50
Consolidated cash flow statement	51
Parent company's income statement	52
Parent company's balance sheet	53
Parent company's changes in equity	54
Parent company's cash flow statement	55
Accounting and valuation principles	56
Table of contents, notes	64
Proposed allocation of profit	100
Auditor's report	101

Page

Consolidated income statement

SEK millions	Note	2009	2008

Sales	1	29,838	54,329
Cost of goods sold	2	-29,020	-42,197
Gross profit		818	12,132
Selling expenses	2	-1,668	-1,778
Administrative expenses	2	-1,384	-1,566
Other operating revenue	1, 25	975	1,398
Other operating expenses	2	-340	-765
Shares in earnings of affiliated companies and joint ventures after tax	3	7	95
Operating profit		-1,592	9,516
Financial income	4	50	403
Financial expenses	4	-519	-966
Profit after financial items		-2,061	8,953
Taxes	5	1,182	-2,445
Profit for the year, continuing operations		-879	6,508
Profit for the year, discontinued operations	25	-131	490
Profit for the year		-1,010	6,998
Of which attributable to:
- parent company's shareholders		-1,002	6,935
- minority interests		-8	63
Earnings per share1)	12, 29	-3.09	21.41
- of which for continuing operations 1)		-2.69	19.90
- of which for discontinued operations 1)		-0.40	1.51
Dividend per share – 2009 proposal		1.00	4.00

1) There are no outstanding share instruments and thus no dilution is relevant.

Consolidated statement of comprehensive income

SEK millions	2009	2008
Profit for the year	-1,010	6,998

Other comprehensive income
Translation differences for the period	-2,219	3,555
Cash-flow hedges	-2	-
Tax attributable to cash-flow hedges	0	-
Hedging of currency risks in foreign operations	475	-3,746
Tax attributable to hedging of currency risks in foreign operations	-125	984
Share in other comprehensive income of affiliated companies
and joint ventures	16	0
Other comprehensive income for the year, net after tax	-1,855	793
Total comprehensive income for the year	-2,865	7,791

Of which attributable to:
- parent company's shareholders	-2,857	7,724
- minority interests	-8	67

Consolidated balance sheet

SEK millions	Note	2009	2008
ASSETS
Fixed assets
Goodwill	6	19,701	21,105
Other intangible assets	6	5,374	6,663
Tangible fixed assets	7	17,137	17,584
Participations in affiliated companies and joint venture	3, 8	348	373
Financial assets	8	55	119
Deferred tax receivables	14	164	245
Total fixed assets		42,779	46,089
Current assets
Inventories	9	8,221	12,924
Accounts receivable	27	4,435	5,921
Prepaid expenses and accrued revenue	10	331	659
Current tax receivables		667	154
Other current interest-bearing receivables	11	-	142
Other current receivables	27	334	653
Cash and cash equivalents	11	3,652	2,713
Total current assets		17,640	23,166
Total assets		60,419	69,255
EQUITY AND LIABILITIES
Equity
Share capital		2,851	2,851
Other contributed funds		9,944	9,944
Reserves	12	-916	939
Retained earnings		18,962	21,260
Total equity for shareholders in the Company		30,841	34,994
Minority shares incl. minority's share of earnings		161	199
Total equity		31,002	35,193
Long-term liabilities
Long-term interest-bearing liabilities	16	14,878	18,064
Pension provisions	13	135	251
Deferred tax liabilities	14	5,283	6,279
Other long-term provisions	15	415	253
Total long-term liabilities		20,711	24,847
Current liabilities
Current interest-bearing liabilities	16	3,998	1,640
Accounts payable	27	3,063	3,831
Accrued expenses and deferred revenue	17	1,327	2,073
Current tax liabilities		96	868
Other current liabilities	27	179	285
Current provisions	15	43	518
Total current liabilities		8,706	9,215
Total equity and liabilities		60,419	69,255
Pledged assets	21	40	49
Contingent liabilities	22	88	90

Consolidated statement of changes in equity

			Other
		Share	contribu		Retained		Minority	Total
SEK millions	Note	capital	ted funds	Reserves	earnings	Total	interest	equity

Equity, January 1, 2008		2,851	9,944	150	15,945	28,890	229	29,119
Translation difference	12	-	-	3,551	-	3,551	4	3,555
Effects of hedging of currency
risks in foreign operations	12	-	-	-3,746	-	-3,746	-	-3,746
Tax on hedging of currency risk
in foreign operations	12	-	-	984	-	984	-	984
Profit for the year		-	-	-	6,935	6,935	63	6,998
Total comprehensive income		-	-	789	6,935	7,724	67	7,791
Dividend		-	-	-	-1,620	-1,620	-97	-1,717
Equity, December 31, 2008		2,851	9,944	939	21,260	34,994	199	35,193

Equity, January 1, 2009		2,851	9,944	939	21,260	34,994	199	35,193
Translation difference	12	-	-	-2,217	-	-2,217	-2	-2,219
Effects of cash-flow hedge	12	-	-	-2	-	-2	-	-2
Tax attributable to cash-flow
hedges	12	-	-	0	-	0	-	0
Effects of hedging of currency
risks in foreign operations	12	-	-	475	-	475	-	475
Tax on hedging of currency risks
in foreign opertions	12	-	-	-125	-	-125	-	-125
Share in other comprehensive
income in affiliated companeis
and joint ventures		-	-	14	-	14	2	16
Profit for the year		-	-	-	-1,002	-1,002	-8	-1,010
Total comprehensive income		-	-	-1,855	-1,002	-2,857	-8	-2,865
Dividend		-	-	-	-1,296	-1,296	-30	-1,326
Equity, December 31, 2009	12	2,851	9,944	-916	18,962	30,841	161	31,002

Consolidated cash flow statement

SEK millions	Note	2009	2008
BUSINESS OPERATIONS
Profit from operating activitIes
Operating profit		-1,592	9,516
Reversal of non-cash items
- Non distributed shares in affiliated companies' earnings		31	-36
- Depreciation of tangible fixed assets	7	1,599	1,572
- Amortization of intangible assets	6	907	935
- Profit upon sale of fixed assets		118	4
- Profit upon sale of subsidiaries and affiliated companies		-8	-
- Change in provisions		-423	582
- Other reversals		-168	472
Interest received		54	332
Interest paid		-565	-991
Tax paid		-943	-2,566
Working capital		-990	9,820
Inventories (+ decrease)		4,532	-2,745
Accounts receivable (+ decrease)		984	1,206
Accounts payable (+ increase)		-268	-64
Other current receivables (+ decrease)		627	-302
Other current liabilities (+ increase)		-740	-854
		5,135	-2,759
Cash flow from operating activities		4,145	7,061
INVESTING ACTIVITIES
Investments in plants and machinery	6, 7	-1,912	-2,597
Sale of plants and machinery		145	23
Acquisition of companies and shares	24	-	-9
Sold companies and operations	25	31	24,918
Other long-term receivables (+ decrease)		65	128
Cash flow from investing activities		-1,671	22,463
FINANCING ACTIVITIES
Dividend to shareholders		-1,296	-1,620
New loans		8,273	16,992
Repayment/amortization of loans		-9,032	-41,531
Financial investments		142	-227
Other financing (+ increase) Cash flow from financing activities		456 -1,457	-2,076 -28,462

CASH AND CASH EQUIVALENTS
Balance, January 1		2,713	1,707
Cash flow from operating activities		4,145	7,061
Cash flow from investing activities		-1,671	22,463
Cash flow from financing activities		-1,457	-28,462
Translation differences, cash and cash equivalents		-78	-56
Balance, December 31	11	3,652	2,713
Contracted, non-utilized overdraft facilities		15,198	7,057
Disposable cash and cash equivalents		18,850	9,770

Parent company's income statement

SEK millions	Note	2009	2008

Gross profit		-	-
Administrative expenses	2	-165	-265
Other operating revenue	1	378	2,498
Other operating expenses	2	-256	-1
Operating profit		-43	2,232
Dividend from subsidiaries	4	431	4,770
Financial items	4	-256	651
Profit after financial items		132	7,653
Appropriations	23	5	-644
Tax before profit		137	7,009
Tax	5	11	-65
Profit for the year		148	6,944

Parent company's balance sheet

SEK millions	Note	2009	2008
ASSETS
Fixed assets
Tangible fixed assets	7	4	6
Financial assets	8	36,758	36,758
Long-term receivables from subsidiaries		23	32
Deferred tax receivables	14	1	1
Total fixed assets		36,786	36,797
Current assets
Accounts receivable	27	-	11
Current receivables from subsidiaries		10,027	13,218
Prepaid expenses and accrued revenue	10	79	583
Current tax receivables		1	-
Other current interest-bearing receivables	11	-	142
Other current receivables	27	2	31
Cash and cash equivalents	11	2,184	2,219
Total current assets		12,293	16,204
Total assets		49,079	53,001
EQUITY AND LIABILITIES
Equity
Restricted equity:
Share capital		2,851	2,851
Statutory reserves		902	902
Unrestricted equity:
Retained earnings		25,380	19,706
Profit for the year Total equity		148 29,281	6,944 30,403

Untaxed reserves	23	652	657
Provisions
Pension provisions	13	5	5
Other long-term provisions	15	355	224
Total provisions		360	229
Long-term liabilities
Liabilities to subsidiaries		1	1
Other long-term interest-bearing liabilities Total long-term liabilities	16	14,596 14,597	18,023 18,024

Current liabilities
Accounts payable	27	9	31
Liabilities to subsidiaries		1,237	1,372
Current interest-bearing liabilities	16	2,863	1,482
Accrued expenses and deferred revenue	17	61	211
Current tax liabilities Other current liabilities	27	- 4	548 26
Current provisions	15	15	18
Total current liabilities		4,189	3,688
Total equity and liabilities		49,079	53,001

Pledged assets	21	-	-
Contingent liabilities	22	422	162

Parent company's changes in equity

			Restricted equity Unrestricted equity
			Statutory	Retained	Profit for
SEK millions	Note	Share capital	reserve	earnings	the year	Total

Equity, January 1, 2008		2,851	902	15,767	4,571	24,091
Retained earnings
from previous year		-	-	4,571	-4,571	-
Effect of hedging of currency
risks in foreign operations	12	-	-	1,464	-	1,464
Tax on hedging of currency
risks in foreign operations	12	-	-	-476	-	-476
Dividend	12	-	-	-1,620	-	-1,620
Profit for the year		-	-	-	6,944	6,944
Equity, December 31, 2008		2,851	902	19,706	6,944	30,403

Equity, January 1, 2009		2,851	902	19,706	6,944	30,403
Retained earnings from previous year		-	-	6,944	-6,944	-
Effect of hedging of currency
risks in foreign operations	12	-	-	475	-	475
Tax on hedging of currency
risks in foreign operations	12	-	-	-125	-	-125
Group contributions given		-	-	-441	-	-441
Tax on Group contributions		-	-	117	-	117
Dividend	12	-	-	-1,296	-	-1,296
Profit for the year		-	-	-	148	148
Equity, December 31, 2009		2,851	902	25,380	148	29,281

Retained earnings include a premium reserve of SEK 9,391 (9,391) million and a fair value reserve of SEK 1,573 (1,223) million.

Parent company's cash flow statement

SEK millions	Note	2009	2008
BUSINESS OPERATIONS
Profit from operating activities
Operating profit		-43	2,232
Reversal of non-cash items
- Depreciation of tangible fixed assets	7	2	2
- Profit upon sale of subsidiaries
and affiliated companies		-	-2,179
- Change in provisions		128	233
- Other reversals		-14	41
Interest received		241	2,483
Interest paid		-537	-1,052
Tax paid		-547	-2
		-770	1,758
Working capital
Accounts receivable (+ decrease)		11	-11
Accounts payable (+ increase)		-22	5
Other current receivables (+ decrease)		524	-539
Other current liabilities (+ increase) Commercial intra-group transactions		-45 -11	46 77
		457	-422
Cash flow from operating activities		-313	1,336
INVESTING ACTIVITIES
Investments in plants and machinery	6, 7	0	-
Sold companies and operations	25	-	14,801
Cash flow from investing activities		0	14,801
FINANCING ACTIVITIES
Dividends to shareholders		-1,296	-1,620
Group contributions		-441	-
Dividends from subsidiaries		431	6,210
Shareholder contributions to subsidiaries		-	-37,197
New loans		6,932	16,992
Repayments/amortization of loans		-8,977	-30,641
Financial intra-group transactions		3,054	29,323
Financial investments		142	-142
Other financing (+ increase) Cash flow from financing activities		433 278	1,687 -15,388
CASH AND CASH EQUIVALENTS
Balance, January 1		2,219	1,470
Cash flow from operating activities		-313	1,336
Cash flow from investing activities		0	14,801
Cash flow from financing activities		278	-15,388
Balance, December 31	11	2,184	2,219

Contracted, non-utilized overdraft facilities		15,164	7,057
Disposable cash and cash equivalents		17,348	9,276

Accounting and valuation principles

The most important accounting principles applied in the preparation of these consolidated financial statements are set forth below. Unless otherwise stated, these principles have been applied consistently with respect to all presented years.

General information

SSAB AB is a limited liability company with its registered office in Stockholm, Sweden. The parent company is listed on the OMX Nordic Exchange Stockholm.

Principles for preparation of the report

The consolidated financial statements have been prepared in accordance with the Swedish Annual Reports Act as well as International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) with interpretation statements issued by the International Financial Reporting Interpretations Committee (IFRIC), as such have been adopted by the EU. In addition, the Swedish Financial Reporting Board's recommendation RFR 1.2, Supplementary Accounting Rules for Groups, has been applied.

Accounting standards and applications introduced during the year have had a marginal impact on the Group's earnings and financial position.

The consolidated financial statements have been prepared under the historical cost convention, other than with respect to certain financial assets and liabilities (including derivative instruments) which are valued at fair value via the income statement.

The preparation of reports in accordance with IFRS requires the use of a number of important estimations for accounting purposes. In addition, management must make certain assessments in conjunction with the application of the Group's accounting principles. Those areas that include a high degree of assessment, which are complex, or in which assumptions and estimations are of material significance for the consolidated financial statements are stated in Note 28.

The parent company applies the same accounting principles as the Group, except where stated below in a particular section. The differences that exist between the principles applied by the parent company and the Group are due to limitations on the possibilities to apply IFRS to the parent company as a consequence of the provisions of the Swedish Annual Reports Act and the Swedish Pension Obligations (Security) Act and also, in certain cases, for tax reasons. In addition, the Swedish Financial Reporting Board's recommendation RFR 2.2, Accounting for Legal Entities, has been applied.

i. Standards, changes and interpretations that entered into force in 2009 and are relevant to the Group

• IAS 1 (Revised), "Presentation of financial statements": This change entered into force on January 1, 2009. The revised standard prohibit presentation of revenue and expense items (i.e. " changes in equity other than those arising from transactions with equity holders acting in their capacity as equity holders") in the statement of changes in equity, but rather requires that " changes in equity other than those arising from transactions with equity holders acting in their

capacity as equity holders" be reported separately, in a statement of comprehensive income, from changes in equity which relate to transactions with equity holders. The Group applies IAS 1 (Revised) commencing January 1, 2009. The Group thus presents all changes in equity relating to equity holders in the report of the Group's changes in equity, while all changes in equity which do not relate to transactions with equity holders are presented in the Group's statement of comprehensive income. Comparison information has been recalculated so that it corresponds to the revised standard. Since this change in accounting principle only affects the presentation, it has no impact on earnings per share.

• IFRS 8 "Operating segments": This standard entered into force on January 1, 2009 and replaced IAS 14. The new standard requires that segment information be presented based on the management's perspective, entailing that it is presented in the manner used in the internal reporting. The Group has applied this standard since January 1, 2009. The application has not resulted in any change in the number of operating segments, but only resulted in an increased number of disclosure requirements.
• IFRS 7 (Amendment) "Financial Instruments Disclosures" – entered into force on 1 January 2009. The amendment requires increased disclosures regarding valuation at fair value and liquidity risk. In particular, the amendment requires disclosure regarding valuation at fair value per level in a valuation hierarchy. Since this amendment only results in additional disclosures, it has no impact on earnings per share.

ii. Standards, changes and interpretations relevant to the Group which have been adopted by the EU but have not yet entered into force and have not been early adopted by the Group

The following standards, amendments and interpretations of existing standards are obligatory with regards to the consolidated financial statements for financial years commencing January 1, 2010 or later.

• IAS 27 (Revised), "Consolidated financial statements and separate financial statements": This change entered into force on July 1, 2009. The revised change applies to future transactions with minority shareholders after the date of entry into force. One of the changes entails that the term 'minority interests' is replaced by the term 'non-controlling interests.' In addition, the amendment entails, among other things, profit/loss relating to minority interests must always be reported even if this entails that the portion attributable to the minority interests is negative; that transactions with minority interests must always be reported in equity; and that in those cases where a parent company relinquishes its controlling influence, any remaining share must be revalued at fair value. The Group will apply IAS 27 (Revised) commencing the financial year beginning January 1, 2010. The revised standard will have no effect on previously conducted transactions with non-controlling interests, but rather will only affect the reporting of future transactions.

• IFRS 3 (Revised), "Business combinations": This change entered into force on July 1, 2009. The change applies to future acquisitions after the date of entry into force. The application will entail a change in the manner in which future acquisitions are reported, among other things regarding reporting of transaction costs, any conditional purchase price and step acquisitions. The Group will apply IFRS 3 (Revised) commencing the financial year beginning January 1, 2010. The change will have no effect on previously implemented acquisitions, but will affect the reporting of any future acquisitions.
• IFRS 5 (Amendment), "Non-current assets held for sale and discontinued operations": This change applies going forward as from July 1, 2009. The change clarifies that all of a subsidiary's assets and liabilities be classified as held for sale if a plan for partial divestment leads to the loss of the controlling influence. Necessary disclosure must be provided regarding such subsidiary, if the definition of discontinued operations is fulfilled. The Group will apply IFRS 5 (Amendment) commencing the financial year beginning January 1, 2010.

Consolidated financial statements

TThe consolidated financial statements cover SSAB AB (publ.) and the companies in which the Group is entitled to formulate financial and operational strategies in a manner which is normally associated with a shareholding in excess of 50 percent of the voting capital. Companies in which the Group exercises a significant but not controlling influence are reported as affiliated companies; this is normally the case where shares are held equal to between 20 percent and 50 percent of the voting capital. Those companies in which the Group, together with one or more co-owners, is bound by a cooperation agreement which provides that the co-owners shall jointly exercise a controlling influence are reported as joint ventures.

Subsidiaries

The Group's annual accounts are prepared in accordance with the purchase accounting method, entailing that the equity of a subsidiary at the time of acquisition – defined as the difference between the fair value of identifiable assets, liabilities and potential obligations – is eliminated in its entirety against the acquisition price. Those surpluses that comprise the difference between the acquisition value and the fair value of the Group's share of identifiable acquired assets, liabilities and potential obligations are reported as goodwill. If the acquisition price is below the fair value of the net assets of the acquired subsidiary, the difference is reported directly in the income statement.

Acquired companies are included in the consolidated financial statements commencing the date on which a controlling influence is obtained, while sold companies are reported up to the date on which the controlling influence ceases.

Intra-group transactions, dealings and unrealized profits are eliminated in the consolidated financial statements. Unrealized losses are also eliminated unless the transaction constitutes evidence of impairment of the transferred asset. Where appropriate, the accounting principles for subsidiaries have been changed in order to ensure a consistent application of the Group's principles.

In the consolidated cash flow statement, the purchase price with respect to acquired or sold operations is reported under the headings "Acquisition of companies and shares" and "Sold

companies and operations". Thus, the assets and liabilities of the acquired/sold companies at the time of the acquisition/sale are not included in the cash flow statement.

Affiliated companies and joint ventures

Affiliated companies and joint ventures are reported in accordance with the equity method and valued initially at acquisition value. The equity method entails that the Group's book value of the shares in affiliated companies and joint ventures corresponds to the Group's share in the equity of the affiliated companies and joint ventures and, where appropriate, the residual value of surplus values or under-values from a Group perspective, including goodwill. The Group's share in the earnings of affiliated companies and joint ventures which arise after the acquisition is reported in the income statement. In the consolidated income statement, "Shares in earnings of affiliated companies and joint ventures after tax" comprise the Group's share in the post-tax earnings of the affiliated company or joint venture. Shares in the earnings of affiliated companies and joint ventures are reported in the operating profit when operations in affiliated companies and joint ventures are related to SSAB's operations and considered to be of a business nature. Any intra-group profits are eliminated in relation to the share of equity held.

In the parent company, affiliated companies and joint ventures are reported under the historical cost convention.

Transactions in foreign currencies

Items included in the financial statements for the various units in the Group are valued in the currency used in the economic environment in which the company in question primarily operates (functional currency). Swedish kronor are used in the consolidated financial statements; this is the functional currency and reporting currency of the parent company.

Transactions in foreign currency are reported at the exchange rate prevailing on the transaction date. In certain cases, the actual rate is approximated to the average rate during a month. At the end of the month, receivables and liabilities in foreign currency are translated in accordance with the closing day rate at that time. Exchange rate differences relating to the business are reported in the operating profit, while differences attributable to financial assets and liabilities are reported as a net sum among financial items.

The income statements of foreign subsidiaries are translated into Swedish kronor at the average exchange rates for the year, while their balance sheets are translated into Swedish kronor at the closing day rates. Any translation differences that arise are transferred directly to the Group's statement of comprehensive income and reported in the item "Translation reserve".

Loans or other financial instruments taken up in order to hedge net assets in foreign subsidiaries are reported in the consolidated financial statements at the closing day rate. Any exchange rate differences less deferred taxes are reported in the statement of the comprehensive income and thereby set off against the translation differences which arise in conjunction with the translation of these subsidiaries' balance sheets into Swedish kronor.

Upon sales of foreign subsidiaries, the total translation differences that relate to the foreign subsidiary are reported as a part of capital gains/losses in the consolidated income statement.

Goodwill and adjustments of assets and liabilities to fair value in connection with the acquisition of foreign subsidiaries are treated as assets and liabilities in the foreign operations and thus translated in accordance with the same principles as the foreign subsidiaries.

Revenue recognition

Sales are reported after the crucial risks and benefit associated with title are transferred to the buyer and no right of disposition or possibility of actual control over the goods remains. In most cases, this means that sales are reported upon delivery of the goods to the customer in accordance with agreed delivery terms and conditions. The sale is reported less value added tax, discounts, returns and freight, including exchange rate differences from forward contracts which are entered into in order to hedge sales in foreign currency. Intra-group sales are eliminated in the consolidated financial statements.

With respect to revenue other than from sales of goods, interest income is recognized in accordance with the effective return and dividends are reported when the entitlement to the dividend is established. Regarding dividends from subsidiaries see the section entitled "Dividends".

Pricing between Group companies

Arm's length pricing is applied to deliveries of goods and services between companies in the Group. However, deliveries of slabs from SSAB Plate to SSAB Strip Products take place at cost price.

Government grants

Government grants are reported at fair value when there is reasonable certainty that the grant will be received and that the Group will fulfill the conditions attached to the grant.

Government grants are allocated over the same period as the expenses which the grants are intended to reimburse. Grants provided as compensation for expenses are recognized in the income statement as an expense reduction. Grants related to assets are recognized in the balance sheet through a reduction in the reported value of the assets.

Research and development expenses

Research and development expenses are booked as they are incurred. Development expenses may be capitalized under certain strict conditions. However, this requires, among other things, that future economic benefits can be demonstrated at the time the expenses are incurred. At present, there are no such projects and thus development expenditures are also booked as expenses.

Software development expenses

Expenses for development and acquisition of new software are capitalized and reported as an intangible asset provided they have a significant value for the Company in the future and they can be deemed to have a useful life in excess of three years. These capitalized expenses are depreciated on a straight line basis over the assessed useful life. Expenses for training and software maintenance are, however, booked directly as expenses.

Tangible fixed assets

Tangible fixed assets are reported at acquisition value less deductions for accumulated depreciation and any accumulated impairment. Depreciation is based on the acquisition value of

the assets and estimated useful life. If major investments include components, an assessment shall always be made as to whether the useful life of the component differs from that of the entire facility. The acquisition value includes expenses directly attributable to the acquisition of the asset. Any borrowing costs in conjunction with the construction and design of fixed assets, a significant portion of which is required for completion for use or sale, are added as a part of the acquisition cost of the asset. Restoration expenses in connection with disposals of fixed assets are included in the acquisition value only where the criteria for making a provision for such restoration expenses may be deemed fulfilled. Additional expenses for acquiring replacement components are added to the reported value of the fixed asset or recognized as a separate asset only where it is likely that the Group will enjoy the future economic benefits associated with the asset and the acquisition value of the asset can be measured in a reliable manner. The reported value for the replaced part is deleted from the balance sheet. All other forms of repairs and maintenance are recognized as expenses in the income statement during the period in which they occur.

Land is assumed to have a perpetual period of use and thus is not depreciated. Other tangible fixed assets are classified into groups for calculation of depreciation based on their estimated useful life, in accordance with the following table.

Examples of items	Estimated use, years
Vehicles, office equipment
and computers	3–5
Light machinery	5–12
Heavy machinery
- Relining of blast furnaces	12–15
- Steel furnaces, rolling mills and cranes	15–20
- Blast furnaces and coke ovens	15–20
Land improvement	20
Buildings	25–50

The useful life of the assets is reviewed annually and adjusted where required. The assets are normally depreciated to zero without any remaining residual value.

The straight line depreciation method is used for all types of tangible fixed assets with a limited useful life. Where the book value of an asset exceeds the expected recovery value, the asset is written down to such value.

Capital gains and capital losses upon the sale of tangible fixed assets are determined by comparing the revenue from the sale with the reported value; this is reported in the income statement as "Other operating revenues" or "Other operating expenses".

Intangible assets

Similarly, intangible assets are classified in two groups, with assets with a determinable useful life being amortized over a determined useful life, while assets with an undeterminable useful life are not amortized at all.

Goodwill

Goodwill comprises the amount by which the acquisition value exceeds the fair value of the Group's share of the identifiable net assets of the acquired subsidiary at the time of the acquisition. Goodwill upon the acquisition of a subsidiary is reported as an intangible asset.

Goodwill is reviewed annually to identify any impairment and reported at acquisition value less accumulated impairment. Impairment of goodwill is not reversed. Profits or losses upon the sale of a unit include the remaining reported value of the goodwill which relates to the sold unit.

When testing for any impairment, goodwill is allocated over cash-generating units. The allocation is made on the cashgenerating units or groups of cash-generating units which are expected to benefit from the business combination which gave rise to the goodwill item.

Customer relations

Acquired customer relations are reported at acquisition value. Customer relations have a determinable useful life and are reported at acquisition value less accumulated amortization. Straight line amortization is applied to allocate the costs for customer relations over their assessed useful life (six to twelve years).

Trademarks

Acquired trademarks and licenses are reported at acquisition value. Trademarks and licenses have a determinable useful life and are reported at acquisition value less accumulated amortization. Straight line amortization is applied to allocate the costs for trademarks over their assessed useful life and licenses are amortized over the term of the agreement (five to ten years).

Software

Acquired software licenses are capitalized on the basis of the costs incurred upon acquisition and placement into operation of the relevant software. These capitalized costs are amortized on a straight line basis over the assessed useful life (three to five years).

Other intangible assets

Other intangible assets are reported at acquisition value less accumulated amortization. Straight line amortization is applied to allocate the costs over their assessed useful life (five to fifteen years).

Impairment of non-financial assets

Intangible assets with an undeterminable useful life (including goodwill) are not amortized but, rather, tested annually for any impairment or otherwise where signs indicate impairment. Other non-financial assets with an undeterminable useful life are tested when signs indicate impairment. Amortized assets are tested for impairment when signs indicate impairment. Where the estimated recovery value is less than the reported value, the asset is written down to the recovery value. Testing of the value of an asset with an undeterminable useful life may also result in the asset being reclassified as an asset with a determinable useful life. The asset's period of use is then calculated and amortization commences. The recovery value is the asset's fair value reduced by selling expenses, or its useful value, whichever is higher. When testing for impairment, assets are grouped on the lowest levels for which there are separately identifiable cash flows (cash-generating units). With respect to assets other than financial assets and goodwill which have previously been impaired, an annual test is conducted as to whether a reversal should be made.

Leased assets

Expenses for non-current assets that are leased instead of owned are reported primarily as lease expenses on a straight line basis over the leasing period (operational leasing). Where lease agreements contain terms and conditions pursuant to which the Group enjoys the economic advantages and incurs the economic risks that are associated with ownership of the property (financial leasing), they are reported in the consolidated balance sheet under 'Fixed Assets' and depreciated over the useful life (the economic life or the outstanding leasing period, whichever is the shorter). At the beginning of the leasing period, financial leasing is reported in the balance sheet at the leased object's fair value or the present value of the minimum leasing charges, whichever is lower. Each lease payment is divided into interest payment and repayment of the debt; interest is allocated over the leasing period. Corresponding payment obligations, less deductions for financial expenses, are included in the balance sheet items, "Current interest-bearing liabilities" and "Long-term interest-bearing liabilities".

In the parent company, all leasing agreements are reported as operational.

Financial assets

Financial assets include cash and cash equivalents, accounts receivable, shares and participations, loan claims and derivative instruments. They are reported initially at an acquisition value corresponding to the fair value of the asset plus a supplement for transaction costs, with the exception of assets that are valued at fair value. Reporting thereafter takes place depending on the classification of the asset. Financial assets are removed from the balance sheet when the debt/instrument is finally paid or ceases to apply or is transferred through all risks and benefits being assigned to an external party.

Spot purchases and sales of financial assets are reported on the settlement day, i.e. the day on which the asset is delivered. Accounts receivable are reported in the balance sheet when an invoice has been issued.

The fair value of listed financial assets corresponds to the asset's listed transaction price on the balance sheet date. The fair value of unlisted financial assets is determined through use of valuation techniques, for example, recently conducted transactions, prices of similar instruments and discounted cash flows.

Financial assets are classified in four valuation categories: "holdings valued at fair value via the income statement", "held to maturity", "loans and receivables" and "available for sale".

• Holdings valued at fair value via the income statement: Assets that are acquired primarily in order to enjoy profits upon short-term price fluctuations, holdings for trading, are classified as "Holdings valued at fair value via the income statement" and reported as short-term investments if the term to maturity on the acquisition date is less than three months and as "Other interest-bearing current receivables" if the term to maturity is between three and twelve months. Derivative instruments are classified as holdings for trading except where used for hedge accounting. Assets in this category are valued regularly at fair value and changes in value are reported in the income statement. Derivative instruments taken up in respect of business related items are reported in the operating profit, while derivative

instruments of a financial nature are reported in financial items. Assets in this category are included in current assets, with the exception of items with maturity dates more than twelve months after the balance sheet date, which are classified as non-current assets.

• Held to maturity: Assets with a fixed maturity date and which are intended to be held until maturity are classified as "held to maturity" and reported as financial non-current assets, except those parts with maturity date within twelve months; these are reported as "Other interest-bearing current receivables". Assets in this category are valued at the amortized cost. The amortized cost is determined based on the effective interest rate, which is calculated on the acquisition date. The Group held no instruments in this category during 2008 or 2009.
• Loans and receivables: Loans and receivables are financial assets that are not derivative instruments, which have fixed or determinable payments and which are not listed on an active market. The claims arise when cash, goods or services are provided directly to the debtor without an intention of trading in the receivables. Just as with the preceding category, assets in this category are valued at the amortized cost. They are included in current assets, with the exception of items with maturity dates more than twelve months after the balance sheet date, which are classified as non-current assets.
• Available for sale: Assets without a fixed term to maturity but which can be sold should liquidity needs arise or upon changes in interest rates are classified as "available for sale" and reported as financial non-current assets. Assets in this category are valued regularly at fair value with changes in value reported in the statement of comprehensive income. Upon removal of the investments from the balance sheet, any previously reported accumulated profit or loss in the statement of comprehensive income is transferred to the income statement. They are included in current assets, with the exception of items with maturity dates more than twelve months after the balance sheet date, which are classified as non-current assets.

Other shares and participations

Consist primarily of investments in equity instruments which do not have a listed market price and the fair value of which cannot be calculated in a reliable manner. They are valued at acquisition value.

Long-term receivables

Long-term receivables are receivables held without any intention of trading in the claim. Parts where the outstanding holding period is less than one year are reported among "Other current interest-bearing receivables". The receivables are classified in the category, "Loans and receivables".

Accounts receivables

Accounts receivables are classified in the category, "Loans and receivables". Accounts receivables are reported initially at fair value and accounts receivable in excess of twelve months are reported at the amortized cost applying the effective interest rate method, less any provisions for reduction in value. The Company has had no accounts receivable with a due date in excess of twelve months. Any impairment of accounts receivable takes place in selling expenses in the income statement.

Cash and cash equivalents

Cash and cash equivalents include cash, immediately accessible bank balances as well as other short-term deposits with an original term to maturity of less than three months (short-term investments). Investments with an original term to maturity of between three and twelve months are reported under "Other current interest-bearing receivables" and classified as assets valued at the fair value via the income statement. Overdraft facilities are reported in the balance sheet as borrowing among "Current interest-bearing liabilities".

Impairment of financial assets

The Group regularly assesses whether there is any objective evidence for impairment of a financial asset or a group of financial assets. With respect to investments in equity instruments which are valued at acquisition value, a significant or prolonged decline in the fair value of a share to a level below its acquisition value is considered to be an indication of impairment. If such evidence exists, the difference between the reported value and the current fair value is reported in the income statement. Impairment of equity instruments is not reversed. Tests for impairment of accounts receivable are based on an individual assessment of bad debts. The size of the provision comprises the difference between the reported value of the asset and the present value of estimated future cash flows, discounted applying an effective interest rate. The remaining amount is reported in the income statement.

Inventories

Inventories are valued at the lower of acquisition cost and net realizable value, with the acquisition value being calculated in accordance with the FIFO method (first in, first out). When calculating the acquisition value, a weighted average value is normally used to approximate FIFO.

The net realizable value is normally calculated as the sales price less production and selling expenses. With respect to raw materials and products in the trading operations, the replacement cost is used as the best gauge of the net realizable value. However, raw materials are not written down below the acquisition value where the end product in which they are included is expected to be sold at a price which exceeds the manufacturing cost. Work in progress and finished inventories are valued at the manufacturing cost or the net realizable value, whichever is lower. Necessary provision is made for obsolescence.

The acquisition value of inventories includes all costs for purchasing, production and other expenses incurred in bringing the goods to their current location and condition.

Employee benefits

Pensions

Within the Group there are both contribution-based and benefit-based pension plans. Generally, the plans are financed through payments to insurance companies or manager-administered funds.

In the contribution-based plans, fixed fees are paid to a separate legal entity and there is no obligation, legal or informal, to pay any additional fees. In the contribution-based plans, payments are recognized as an expense during the period when the employees have performed the services to which the fees relate. Blue collar employees in Sweden are covered by such a contribution-based plan.

In the benefit-based plans, compensation is payable to employees and former employees based on salary at the time of retirement and number of years in service. The Group bears the risk that the costs for the promised payments will be higher than estimated.

In the consolidated balance sheet, the net of the estimated present value of the obligations and fair value of the managed assets is reported either as a long-term provision or as a longterm financial claim. In those cases where a surplus in a plan cannot be utilized in full, only that part of the surplus which can be recovered through reduced future fees or refunds is reported. Set-off of a surplus in one plan against a deficit in another plan takes place only where a right of set-off exists.

Pension expenses and pension obligations for benefitbased plans are calculated in accordance with the Projected Unit Credit Method. The method allocates pension expenses as the employees perform the services that increase their entitlement to future compensation. The obligation is calculated by independent actuaries and constitutes the present value of the anticipated future disbursements. The discount rate that is applied corresponds to the rate of interest on top rated corporate bonds or government bonds with a term to maturity which corresponds to the average term for the obligations. The most important actuarial assumptions are stated in Note 13.

Actuarial profits or losses may arise upon determination of the present value of the obligations and the fair value of the managed assets. These arise either as a consequence of the actual result differing from previously made assumptions, or due to changes in the assumptions. Such actuarial profits and losses are recognized in their entirety in the Group's results when they arise.

White collar staff in Sweden are covered by a collective benefit-based plan, the ITP (supplementary pensions for salaried employees) plan. The ITP plan has been financed through the purchase of pension insurance with the mutual insurance company, Alecta. However, at present no information is available which makes it possible to report this plan as a benefitbased plan. Accordingly, the plan is reported as a contributions-based plan, and thus premiums paid to Alecta during the year are reported as pension expenses.

The parent company and other legal entities within the Group report benefit-based pension plans in accordance with the local rules in each country.

Profit shares and variable salary

SSAB employees are covered by a profit sharing system which entitles them to a share in the profit above a minimum level. The Group Executive Committee and a number of other senior executives also have salaries which contain a variable element related to the profit level. The costs for these systems are booked as accrued expenses regularly during the year as soon as it is likely that the profit level will exceed the profit threshold requirement.

Share-related compensation

A number of senior executives at SSAB North America participate in a long-term incentive program. During 2007, a component in the calculation of the result was related to earnings per share. Commencing 2008, this component has been replaced by a profit related share. There is a ceiling for the result in relation to fixed salary and the entire compensation is paid in cash. The costs are booked as accrued expenses regularly during the year as soon as it is likely that the profit level will exceed the profit threshold requirement.

Compensation upon termination of employment Compensation upon termination of employment is paid when employment is terminated prior to the normal retirement age or where an employee accepts voluntary retirement in exchange for such compensation. The Group reports severance compensation when the Group is demonstrably obliged either to terminate an employee in accordance with a detailed formal plan without the possibility of recall, or to provide compensation upon termination as a result of an offer made in order to encourage voluntary retirement. Benefits which fall due more than twelve months from the balance sheet date are discounted to present value.

Provisions

Provisions are reported when the Group has an obligation as a result of an event that has occurred and it is likely that payments will be demanded for fulfillment of the obligation. A further requirement is that it is possible to make a reliable estimation of the amount to be paid out.

Provisions for restructuring measures are made when a detailed, formal plan for the measures is in place and wellfounded expectations have been created among the parties that will be affected by the measure, and this takes place prior to the balance sheet date.

Emission rights

SSAB participates in the EU's emission rights trading system. The emission rights are valued initially at acquisition value. Provision is made if a shortfall in emission rights is identified between owned rights and those rights which will have to be delivered due to emissions having taken place. The value of any surplus emission rights is reported only when it is realized as an external sale. Emission rights are reported as intangible assets with an acquisition value of SEK 0.

Environmental restoration expenses

Expenses for environmental measures associated with previous operations and which do not contribute to current or future revenue are booked as a cost when incurred. The environmental undertaking is calculated based on interpretations of applicable environmental legislation and regulations and reported when it is likely that payment liability will be incurred and a reasonable estimation can be made of such amount. Provisions have not been made for land clean-up to prepare the industrial areas for other use in the future, since it is not possible to make a reasonable estimation of when such clean-up will take place.

Financial liabilities

Financial liabilities include loan debts, accounts payable and derivative instruments. Reporting takes place depending on how the liabilities are classified. Financial liabilities are removed from the balance sheet when the debt/instrument is paid in full, or ceases to apply, or is transferred through all risks and benefits being assigned to an external party.

Accounts payable

Accounts payable are valued initially at fair value and thereafter at amortized cost.

Loan debts

Loan debts are valued initially at net fair value after transaction costs, and thereafter at amortized cost. The amortized cost is determined based on the effective interest rate when the loan was taken up. Accordingly, surplus values and undervalues as well as direct issuance costs are allocated over the loan period. Long-term loan debts have an anticipated term to maturity in excess of one year, while current loan debts have a term to maturity of less than one year.

Derivative instruments and hedging

Currency derivatives in the form of forward contracts and swaps are used to hedge exchange rates on purchase orders for coal and iron ore, to hedge significant sales in foreign currency, in conjunction with major investments in non-current assets made in foreign currency, to hedge net investments in foreign subsidiaries, and to hedge Swedish kronor payment flows on foreign loans. Derivative instruments in the form of interest swaps are used to hedge exposure to interest rate risks.

All derivative instruments are reported on the balance sheet at fair value. The method for reporting accrued profit/ loss differs, however, depending on the purpose of the derivative instrument. When a derivative contract is entered into, it is characterized as hedging of the fair value of a reported asset/ liability or of a signed delivery order ("fair value hedging"), hedging of a planned transaction ("cash flow hedging"), hedging of a net investment in a foreign company, or as a derivative instrument which does not meet the requirements for hedging transactions.

When the transaction is entered into, the Group documents the relationship between the hedge instrument and the hedged item, as well as the Group's risk management objectives and risk management strategy as regards the hedging. The Group also documents its assessment, both when hedging is entered into and on a regular basis, of whether the derivative instruments used in hedge transactions are effective in counteracting changes in fair value or cash flows that relate to the hedged items.

Information regarding fair value of various derivative instruments used for hedging purposes is set forth in Note 27. Changes in the hedging reserve in equity are set forth in Note 12. The entire fair value of a derivative instrument which constitutes a hedge instrument is classified as a non-current asset or long-term liability when the outstanding term of the hedged item exceeds twelve months and as a current asset or current liability when the outstanding term of the hedged item is less than twelve months.

• Fair value hedging: Changes in the fair value of derivative instruments which are categorized as, and meet the requirements for, "fair value hedging" are reported in the income statement together with changes in the fair value of the asset/liability or the delivery order to which the hedging relates. Transaction costs related to fair value hedging are recognized immediately in the income statement.
• Cash flow hedging: The effective part of changes in fair value of derivative instruments which are characterized as, and meet the requirements for, cash flow hedging, is reported in

the statement of comprehensive income. The profit or loss attributable to the ineffective part is reported immediately in financial items in the income statement. However, the ineffective part of the profit or loss relating to cash flow hedging of sales in foreign currency is reported among other operating expenses or revenue. The accumulated amount in equity is reversed to the income statement in those periods in which the hedged item affects earnings (e.g. when the forecast sale which is hedged takes place). The profit or loss attributable to the effective part of a forward contract which hedges sales in foreign currency is reported in the income statement item, Sales. When a hedge instrument lapses or is sold, or when the hedging no longer fulfils the criteria for hedge accounting and there are accumulated profits or losses in equity regarding the hedging, such profits or losses remain in equity and are reported as income at the same time as the forecast transaction is finally reported in the income statement. When a forecast transaction is no longer expected to occur, the accumulated profit or loss which is reported in equity is transferred immediately to the income statement. Where the transfer relates to cash flow hedging of sales in foreign currency, it is reported among other operating expenses or revenue. Where the transfer relates to cash flow hedging of financial items, it is reported in the income statement among financial items.

• Net investment hedging: Hedging of net investments in foreign companies is reported in the same manner as cash flow hedging. The effective part of changes in value of derivative instruments and liabilities, which are used as hedge instruments, is reported in the statement of comprehensive income. The ineffective part of changes in value is reported immediately in financial items in the income statement. Accumulated profits and losses in equity are reported in the income statement when the foreign operations are divested, in whole or in part.
• Certain derivative transactions do not meet the formal criteria for hedge accounting.

Derivative instruments taken out in respect of items related to the operations are reported in operating profit, while derivative instruments of a financial nature are reported in financial items.

The fair value of currency forward contracts and currency swaps is calculated based on prevailing forward contract prices on the balance sheet date, while interest rate swaps are valued calculated on the basis of future discounted cash flows.

Taxes

The Group's reported tax expenses consist of tax on the taxable earnings of Group companies for the period as well as any adjustments with respect to tax for previous periods and changes in deferred tax.

Deferred tax

Deferred tax is calculated to correspond to the tax effect which arises when final tax is triggered. It corresponds to the net effect of tax on all differences between the tax value of assets and liabilities and the value for accounting purposes (temporary differences), applying the future tax rates already decided upon or announced which will apply when the tax is expected to be realized.

Temporary differences arise primarily through accelerated depreciation/amortization of fixed assets, profits from intragroup inventory transactions, untaxed reserves in the form of tax allocation reserves, non-utilized losses carried forward, as well as fair value adjustments in conjunction with business combinations. A deferred tax receivable due to losses carried forward is, however, recognized as an asset only to the extent that it is likely that it can be set off against future surpluses.

In the parent company's balance sheet, the accumulated values of accelerated depreciation and other untaxed reserves are reported in the item "Untaxed reserves" without deduction of the deferred tax. In the parent company's income statement, changes in the untaxed reserves are reported on a separate line.

Dividends

Dividends proposed by the Board of Directors do not reduce equity until the annual general meeting has adopted a resolution regarding payment of the dividend.

Dividends, the parent company

An anticipated dividend is reported in those cases where the parent company is exclusively entitled to decide on the amount of the dividend and the parent company, prior to the date on which its financial statements are published, has decided on the amount of the dividend and ascertained that the dividend will not exceed the dividend capacity of the subsidiary.

Group contributions in the parent company

Group contributions and the tax consequences thereof are reported directly against equity and thus do not affect earnings.

Cash flow statement

The cash flow statement is prepared in accordance with the indirect method. Cash and cash equivalents in the cash flow statement consist of cash and bank balances as well as shortterm investments with a term to maturity of less than three months from the acquisition date which are exposed to only an insignificant risk of change in value.

Segment reporting

Operating segments

The Group is organized into four reporting operating segments: SSAB Strip Products, SSAB Plate, SSAB North America, and Tibnor. In addtion, there are other operating segments that are not reportable since they do not reach the quantitative thresholds in IFRS 8 and they are not monitored seperately by the Group Executive Committee. The segment reporting takes place in a manner which corresponds to the internal reporting provided to the Group Executive Committee. The Group Executive Committee is the highest chief operating decision maker, and is responsible for the allocation of resources and assessment of the results of operating segments, and takes the strategic decisions. A detalied description of the reportable segments and their operations is provided on pages 24–32 and in Note 26.

Fixed assets held for sale

Significant fixed assets (or divestment groups) are classified as "Fixed Assets Held for Sale" and their reported value will primarily be recovered through a sales transaction and a sale is considered extremely likely. If their book value will be recovered primarily through a sales transaction and not through permanent use, they are reported at reported value or fair value less selling expenses, whichever is lower.

Discontinued operations

The line in the income statement, "Profit for the year for discontinued operations", shows the net profit after tax attributable to important independent lines of business, or operations conducted within a geographic area, which are either divested or are to be sold through a coordinated plan. Significant additional costs in a subsequent period which related to discontinued operations are also reported on the line, "Profit for discontinued operations."

Notes

		Page
1	Sales and other operating revenue	65
2	Operating expenses	65
3	Affiliated companies and joint venture	69
4	Financial items	70
5	Taxes	71
6	Intangible assets	72
7	Tangible fixed assets	74
8	Financial assets, shares and participations in affiliated companies and joint venture	76
9	Inventories	78
10	Prepaid expenses and accrued revenue	78
11	Other current interest-bearing receivables/Cash and cash equivalents	78
12	Equity	79
13	Pensions	80
14	Deferred tax liabilities and tax receivables	81
15	Other provisions	82
16	Interest-bearing liabilities	84
17	Accrued expenses and deferred revenue	85
18	Net debt	86
19	Average number of employees, gender breakdown and sick leave	86
20	Leasing	87
21	Pledged assets	87
22	Contingent liabilities	88
23	Untaxed reserves and appropriations	88
24	Business combinations	88
25	Divestment of operations and companies	89
26	Segments	90
27	Financial risk management	92
28	Critical estimations and assessments	97
29	Definitions	98
30	Considerations relating to proposed allocation of profit	99

1 Sales and other operating revenue

Sales per product area Group
SEK millions	2009	2008
Hot-rolled strip	4,754	8,637
Cold-rolled and metal-coated strip	2,709	3,465
Organic-coated and profiled strip	2,756	3,983
Plate	12,896	25,720
Trading operations	4,871	9,709
Slabs	74	250
By products/scrap	1,224	2,191
Other	554	374
Continuing operations	29,838	54,329
Discontinued operations	-	7,918
Total sales per product area	29,838	62,247

Sales broken down by business area and geographic area are shown in the Group Review on page 11 and in Note 26.

Other operating revenue		Group, SEK	Parent Company, SEK
SEK millions	2009	2008	2009	2008
Sales of purchased energy and media	264	152	-	-
Net exchange rate gains	276	706	1	-
Profit upon sale of emission rights	313	240	300	240
Profit upon sale of companies and operations 1)	8	-	-	2,179
Profit upon sale of fixed assets	20	1	-	-
Insurance indemnification	-	197	-	-
Other	94	102	77	79
Continuing operations	975	1,398	378	2,498
Discontinued operations	-	-	-	-
Total other operating revenue	975	1,398	378	2,498

1) For 2009, the group´s capital gains comprise capital gains from sales of Laminated Steel AB. The capital gain for 2008 on the sale of the tubular business is reported in the Group on a separate line in the income statement: "Profit for the year, discontinued operations". For 2008, the parent company's capital gains comprise capital gains of SEK 1,593 million from IPSCO Tubular as well as SEK 586 million from the affiliated companies, Norsk Stål A/S and Norsk Stål Tynnplater A/S.

Type of cost		Group	Parent Company
SEK millions	2009	2008	2009	2008
Raw materials in the steel operations	10,171	18,403	-	-
Purchased products and other input materials in the steel operations	966	1,919	-	-
Purchased products in the processing and trading operations	3,706	6,969	-	-
Materials and services	4,318	8,186	47	84
Energy	2,484	3,146	-	-
Compensation to employees	4,963	5,707	84	143
Depreciation/amortization	2,506	2,164	2	2
Change in inventory	2,523	-892	-	-
Provision, cost reduction program	-76	498	-	-
Other	851	206	288	38
Continuing operations	32,412	46,306	421	267
Discontinued operations	-	6,969	-	-
Total operating expenses per type of cost	32,412	53,275	421	267

Fees and compensation to accounting firms amount to:

Fees for audits and related services		Group		Parent Company
SEK millions	2009	2008	2009	2008
PricewaterhouseCoopers	14	15	4	6
Ernst & Young	0	36	-	-
KPMG	1	9	-	-
Other	1	2	-	-
Total expenses for audit and related services	16	62	4	6


Other compensation to accounting firms	Group		Parent Company

SEK millions PricewaterhouseCoopers 1)	2009 7	2008 43	2009 2	2008 42

Ernst & Young	4	9	0	5
KPMG Other	9 1	11 1	3 -	11 -

1) In addition to the audit, other compensation to PricewaterhouseCoopers for 2008 relates primarily to services in connection with the sale of SSAB North America's tubular business. For 2007, other compensation amounted to SEK 40 million and related primarly to services in connection with the acquisition of IPSCO Inc.

Operating expenses have been reduced by the following government grants:

	Group		Parent Company
SEK millions	2009	2008	2009	2008
Freight support	11	15	-	-
Other	2	2	-	-
Total government grants	13	17	-	-

Directors, President and		Other
Compensation to employees		Executive Vice President	employees
SEK millions	2009	2008	2009	2008
Parent company 1)	15	34	39	69
Subsidiaries in Sweden	11	22	2,350	2,541
Subsidiaries outside Sweden
USA	3	15	603	651
Canada	1	2	32	20
Denmark	3	4	68	73
Finland	3	3	51	48
France	0	0	11	9
Italy	1	1	21	22
China	2	1	5	3
Netherlands	1	1	9	10
Norway	3	3	18	20
Poland	5	7	22	21
South Africa	1	0	18	21
Great Britain	1	1	19	20
Germany	0	0	25	25
Other countries	1	4	66	54
Total wages and salaries 2)	51	98	3,357	3,607
Social security expenses	20	29	1,430	1,566
(of which pension expenses)	(11)	(13)	(534)	(435)
Profit-sharing scheme	0	1	2	314
Other expenses for employee benefits	1	1	102	91
Total compensation to employees	72	129	4,891	5,578

1) Relates only to personnel employed and working within the parent company. Personnel in some of the larger subsidiaries are formally employed in the parent company but are reported in terms of number and expense in the relevant subsidiary. In the parent company expenses for the Presidents of SSAB Strip Products and SSAB Plate are also reported . 2) Total wages and salaries include variable salary components to Presidents and Executive Vice Presidents in the amount of SEK 0 (18) million, of which SEK 0 (13) million in

the parent company. The parent company also includes variable salary components to the Presidents of SSAB Strip Products and SSAB Plate. The summary for 2009 is inclusive expenses reported against the cost reduction provision. The summary for 2008 is exclusive of the discontinued operations.

Board fees and terms of employment for the Group's senior executives

Board of Directors

The general meeting decides upon fees payable to the Chairman of the Board and the directors elected by the general meeting. The Chairman's fee was SEK 1,200 (1,200) thousand and directors (excluding the President) each received a fee of SEK 400 (400) thousand. In addition, members of Board committees received SEK 75,000 for each committee on which the member served, with the exception of the Chairman of the Audit Committee, who instead received SEK 100,000. In total, SEK 4,400 (4,000) thousand was paid in fees to the Board of Directors.

			Fees 2009, SEK			Fees 2008, SEK
Directors	Elected	Position	Board fees	Committee fees		Board fees Committee fees
Elected by the general meeting
Sverker Martin-Löf	2003	Chairman	1,200,000	150,000	1,200,000	150,000
Carl Bennet	2004	Board member	400,000	-	400,000	-
Anders G Carlberg	1986	Board member	400,000	100,000	400,000	100,000
Olof Faxander	2006	Board member, President	-	-	-	-
Marianne Nivert	2002	Board member	400,000	-	400,000	75,000
Anders Nyrén	2003	Board member	400,000	-	400,000	75,000
Matti Sundberg	2004	Board member	400,000	75,000	400,000	-
John Tulloch	2009	Board member	400,000	-	-	-
Lars Westerberg	2006	Board member	400,000	75,000	400,000	-

Salaries and compensation for the President and other senior executives

Resolution of the Annual General Meeting

According to a resolution adopted by the AGM in March 2009, the President and other persons in the Company's senior management shall receive compensation comprising fixed salary, possible variable compensation, other benefits, and pension. "Other persons in the Company's senior management" means members of the Group Executive Committee in addition to the President. The total compensation package shall be on market terms and competitive in the employment market in which the executive works. The fixed salary and variable compensation shall be related to the executive's responsibilities and powers. The variable compensation shall be based on the results relative to defined and measurable targets and shall be capped relative to the fixed compensation. Variable compensation shall not be included in the computation of pension rights, except in those cases where so prescribed in the rules of a general pension plan (e.g. the Swedish ITP plan). For senior executives outside Sweden, all or parts of the variable compensation may be included in the computation of pension rights due to legislation or local market practice.

The program for variable compensation should be structured such that, in the event of exceptional circumstances, the Board has the possibility to limit or withhold payment of variable compensation where such a measure is deemed reasonable and compatible with the Company's responsibilities to shareholders, employees and other stakeholders.

Consultants fees may be payable to the extent a director performs work on behalf of the Company, in addition to the duties serving on the Board.

Senior executives in Sweden must give six months' notice of termination of employment. In the event of termination by the Company, the total termination period and the period during which severance compensation is payable shall not exceed 24 months. Pension benefits are determined either as benefitbased or contribution-based, or a combination thereof, with individual retirement ages, however under no circumstances below the age of 60. Benefit-based pension benefits are conditional on the benefit being earned during a predetermined period of employment. In the event the employment terminates prior to retirement age, the executive shall receive a paid-up policy regarding earned pension. Termination periods and severance compensation for senior executives outside Sweden may vary due to legislation or competitive practice on the local market.

The Board of Directors shall be entitled to deviate from the guidelines where special reasons exist in an individual case.

Compensation Committee

Within the Board of Directors there is a Compensation Committee which issues proposals to the Board regarding the President's salary and other employment terms and conditions, and determines the salary and other employment terms and conditions for the Group Executive Committee in accordance with guidelines decided upon by the AGM. The Committee consists of Sverker Martin-Löf (chairman) and Lars Westerberg. The President is a co-opted member of the Committee but does not participate in discussions concerning his own salary and employment terms and conditions.

Compensations 2009

Compensation to the President and other members of the Group Executive Committee consists of fixed and variable salary components. For the members of the Group Executive

2 cont. Operating expenses

Committee stationed in Sweden, the variable salary component is linked to the Group's EBITDA margin relative to a number of comparable steel companies and to a, by the Board, established target for cash flow, combined with one or more individual targets. The variable salary component may not exceed a given percentage of fixed salary, which varies between 45 and 50 percent. There is no share-related compensation. There will be no variabel salary paid for 2009.

In connection with the acquisition of IPSCO, the Board made the assessment that, in light of the size of the acquisition, it was the utmost importance to achieve a rapid integration of the business, that identified synergies quickly could be realized, that earnings continued to develop positively during the integration of the merged SSAB/IPSCO, and that senior executives remained with the Company during this critical period. Therefore, the Board of Directors decided on a temporary incentive program for a number of key persons stationed in Sweden who are engaged in the integration of SSAB North America, including the Swedish members of the Group Executive Committee, including the President. This temporary incentive program consisted of variable compensation and applied as a supplement to the already existing variable salary component. For the Swedish members of the Group Executive Committee, the incentive program applied during a maximum of two years commencing July 2007 and was capped at 100 percent of each member's fixed annual salary. The fixed annual salary was to be unchanged during the two years in which the incentive program was in force. The amount payable depended entirely on the degree to which a number of established targets were achieved as regards the integration of SSAB North America into SSAB's operations. The targets comprised the Group's EBITDA margin compared with a number of comparable steel companies, a cash flow target established by the Board, and realized synergies.The first year's outcome (for the period 1 July 2007 up to 30 June 2008) was paid in cash in 2008. Payment of the second year's outcome, two thirds of the maximum outcome, was, for the time being, stopped.

The member of the Group Executive Committee who is stationed in the United States receives compensation which is considered to be competitive from a North American perspective, and which also applied in IPSCO prior to the acquisition. He receives a fixed basic salary and, in addition, annual variable compensation which varies depending on SSAB North America's results compared with a number of comparable steel companies. His annual variable compensation is capped relative to the fixed salary. The target result is 60 percent of fixed salary but, in the event of extremely high profitability, may amount to a maximum of 400 percent. In addition, during his employment he is entitled to participate in SSAB North America's long-term incentive program. The outcome depends on SSAB North America's return on capital employed, SSAB North America's earnings and a component which is related to the Group's earnings. The outcome is capped relative to fixed salary. Fully developed, the plan has a target outcome of 100 percent of fixed annual salary, but in an extreme case may amount to a maximum of 200 percent. Payments under the long-term incentive program take place in cash, solely on condition that he remains in his employment. Finally, he receives a retention bonus of USD 225,000 annually for three years, calculated from the acquisition of IPSCO in July 2007, provided that he remains in his employment.

President and Chief Executive Officer

Olof Faxander's total compensation excluding pension amounted to SEK 4.9 (11.7) million, of which SEK 0 (2.2) million consisted of the earnings-related ordinary variable salary component, which will be paid out in 2010 (2009) and SEK 0 (4.5) million comprised the temporary integration bonus for the period July 2008–June 2009 (July 2007–June 2008). Hence, no variable salary was paid for 2009.

The minimum retirement age is 60. The pension is based on contributions and covered by insurance. The cost amounted to 29 (31) percent of fixed salary. Earned pension is inviolable, but premium payments cease upon termination of the employment.

There is a 24-month notice period in the event of dismissal by the Company, while the President must give 6 months' notice of termination.

Other Group Executive Committee members

Apart from the President, the Group Executive Committee during the year comprised 8 (8) persons. The Group Executive Committee is presented on page 116.

The retirement age is 65 for other members of the Group Executive Committee stationed in Sweden. Pensions are based on contributions. Members of the Group Executive Committee stationed in Sweden are entitled to 12-months' notice in the event of dismissal by the Company. In addition, in such a situation severance compensation is payable equivalent to 0–12 months' salary. Members of Group Executive Committee must give 6 months' notice of termination, whereupon there is no entitlement to severance compensation.

For the member of the Group Executive Committee stationed outside Sweden, other rules apply with respect to pension, termination periods and severance compensation in accordance with US legislation and practice.

Total compensation and benefits are shown in the table on next page.

Compensation and benefits for the President and other members of the Group Executive Commitee	President		Other Group Executive Committee
SEK millions	2009	2008	2009	2008
Basic salary	4.7	4.7	16.6	16.6
Other benefits 1)	0.2	0.3	0.8	0.9
Variable compensation 2)	-	2.2	-	9.8
Integration bonus 3)	-	4.5	-	11.2
Other compensation 4)	-	-	-	2.2
Total compensation before pension expenses	4.9	11.7	17.4	40.7
Pension expenses	1.3	1.4	7.3	7.8
Total	6.2	13.1	24.7	48.5

1)Relates primarily to car and gasoline benefits. 2) Relates to expenses for each financial year, which are disbursed the following year.

3)Relates to compensation disbursed for the period July 2007–June 2008. 4) Relates to disbursed severance compensation.

3 Affiliated companies and joint venture

Share of earnings and share of equity Share of earnings after tax			Share of equity
SEK millions	2009	2008	2009	2008
Lulekraft AB	5	0	15	10
Norsk Stål A/S	-4	65	192	214
Norsk Stål Tynnplater A/S	-8	6	43	52
Oxelösunds Hamn AB	11	10	79	71
Blastech Mobile LLC (joint venture)	3	14	19	26
Total	7	95	348	373

Share of sales and assets	Share of sales		Share of assets
SEK millions	2009	2008	2009	2008
Lulekraft AB	154	197	78	82
Norsk Stål A/S	1,085	1,671	333	450
Norsk Stål Tynnplater A/S	246	375	106	134
Oxelösunds Hamn AB	119	131	128	121
Blastech Mobile LLC (joint venture)	19	44	22	27
Total	1,623	2,418	667	814

Receivables from affiliated companies and joint venture		Group		Parent Company
SEK millions	2009	2008	2009	2008
Included in balance sheet items:
Accounts receivable	106	19	-	-
Prepaid expenses and accrued revenue	0	0	-	-
Total	106	19	-	-


Liabilities to affiliated companies and joint venture	Group		Parent Company
SEK millions	2009	2008	2009	2008
Included in balance sheet items:
Accounts payable	61	39	-	-
Accrued expenses and deferred revenue	0	1	-	-

There were no transactions with the joint venture company. The following transactions with affiliated companies occurred during the year: Lulekraft purchased gas from SSAB Strip Products for SEK 338 (368) million and resold electricity for SEK 176 (336) million. Norsk Stål and Norsk Stål Tynnplater purchased steel from the steel operations for SEK 341 (459) million and sold for

SEK 11 (12) million. Oxelösunds Hamn sold port services to SSAB Plate for SEK 190 (184) million and to SSAB Strip Products for SEK 9 (-) million and purchased other services from SSAB Plate for SEK 18 (14) million. The transactions took place at arm's length prices.

Group
SEK millions	Note	2009	2008
Financial income
Interest income		45	299
Dividends		2	4
Net exchange rate differences		-	81
Other		3	19
Total financial income		50	403

Financial expenses
Interest expenses		437	838
Net exchange rate differences		49	-
Other		33	128
Total financial expenses		519	966

Financial items, continuing operations		-469	-563
Discontinued operations	25	-	-320
Total financial revenue and expenses		-469	-883

Net result attributable to derivatives is included in the Net exchange rate differences with the amount of SEK -36 (7) million.

Parent company
SEK millions	2009	2008
Dividends from subsidiaries 1)	431	4,770
Dividends from affiliated companies	1	59
Profit from other securities and
receivables which constitute fixed assets
Other interest income	20	31
Other interest income and similar revenues
Interest income from subsidiaries	204	1,525
Other interest income	6	9
Net exchange rate differences	-	81
Total financial revenue	662	6,475
Interest expenses and similar expenses
Interest expenses to subsidiaries	9	21
Other interest expenses	421	1,015
Net exchange rate differences	42	-
Other	15	18
Total financial expenses	487	1,054
Total financial revenue and expenses	175	5,421

1) Anticipated dividend is included in the amount of SEK – (2,600) million.

Tax expenses		Group	Parent Company
SEK millions	2009	2008	2009	2008
Swedish corporate income tax	-136	1,390	-11	65
Foreign corporate income tax	-384	723	-	-
Total current tax expenses	-520	2,113	-11	65
Deferred taxes	-662	332	-	-
Reported tax expenses, continuing operations	-1,182	2,445	-11	65
Discontinued operations	-	209	-	-
Total tax expenses	-1,182	2,654	-11	65

Reconciliation of tax rates	Group		Parent Company
%	2009	2008	2009	2008
Applicable tax rate in Sweden	26	28	26	28
Tax effect of:
non-deductible expenses	-3	0	52	0
non-taxable divestments	0	0	0	-7
non-taxable revenue	2	-1	-85	-20
changes in tax rates	9	-1	-	0
other tax rates in foreign subsidiaries	22	1	-	-
taxes relating to earlier periods	1	0	-1	0
losses carried forward which it is believed cannot be utilized	0	0	-	-
previous non-booked tax receivables on losses carried forward	-	0	-	-
Effective tax rate	57	27	-8	1

The parent company's other non-taxable revenue consists primarily of dividends from subsidiaries.

The tax for the year was positive SEK 1,182 (2,445) million and the effective tax rate was +57 (-27) percent. The tax rate was positively affected by 9 percentage points due to a re-appraisal of the deferred tax liability from the acquisition of SSAB North America as a consequence of changes in the tax rate as well as by lower tax rates on positive results and higher tax rates on negative results in foreign subsidiaries by 22 percentage points.

6 Intangible assets

	Customer	Non compete	Trade	Patents, licenses, technology and other		Total intangible
Group	relations	agreements	marks	rights	Goodwill	assets
SEK millions
Acquisition value, January 1, 2008	10,592	90	149	136	30,203	41,170
Adjustment of opening balance1)	1,145	-	2,937	1,758	-2,951	2,889
Adjusted acquisition value, January 1, 2008	11,737	90	3,086	1,894	27,252	44,059
Acquisitions	-	-	-	1	-	1
Increase through business combinations	-	-	-	-	13	13
Sales and disposals	0	0	0	0	0	0
Decrease through discontinued operations	-5,307	-85	-3,073	-1,311	-8,094	-17,870
Translation differences	1,004	-5	-8	104	1,934	3,029
Acquisition value, December 31, 2008	7,434	0	5	688	21,105	29,232
Acquisition value, January 1, 2009	7,434	0	5	688	21,105	29,232
Acquisitions	-	-	-	7	-	7
Translation differences	-496	-	-	-42	-1 404	-1 942
Acquisition value, December 31, 2009	6,938	0	5	653	19,701	27,297
Accumulated amortizaton, January 1, 2008	438	17	11	56	-	522
Adjustment of opening balance 1)	146	-	-11	293	-	428
Adjusted accumulated amortization,
January 1, 2008	584	17	0	349	-	950
Amortization for the year	752	9	2	171		934
Decrease through discontinued operations	-303	-25	0	-276	-	-604
Translation differences	148	-1	0	37	-	184
Accumulated amortization, December 31, 2008	1,181	0	2	281	-	1,464
Accumulated amortization,
January 1, 2009	1,181	0	2	281	-	1,464
Amortization for the year	804	-	1	102	-	907
Translation differences	-128	-	-	-21	-	-149
Accumulated amortization, December 31, 2009	1,857	0	3	362	-	2,222
Residual value, December 31, 2008	6,253	0	3	407	21,105	27,768
Residual value, December 31, 2009	5,081	0	2	291	19,701	25,075

1) The adjustment in the opening balance has taken place based on a final valuation of the net assets in the acquisition of IPSCO Inc.

Amortization for the year is included in the income statement in the amount of SEK 903 (835) million in costs of goods sold; SEK 0 (96) million in selling expenses; SEK 1 (0) million in administrative expenses; and SEK 3 (3) million in other operating expenses. There are no internally generated intangible assets.

Test of impairment of goodwill

A test of impairment of goodwill takes place annually on November 30. Significant goodwill balances are allocated to two of the Group's cash-generating units identified below:

	SSAB North America			Steinwalls Plåt
SEK millions	2009	2008	2009	2008
	19,630	21,033	60	60

A recoverable amount for a cash-generating unit is based on calculations of value in use. These calculations are based on financial budgets and forecasts produced on a regular basis by management. Cash flows beyond a five year period have been extrapolated using assessed growth in accordance with the information below. The rate of growth does not exceed the long-term rate of growth for the market on which these cashgenerating units operate.

Significant assumptions used in calculations of use value are shown in the table below:

	SSAB North America			Steinwall Plåt
%	2009	2008	2009	2008
Assessed rate
of growth	2	2	2	2
Weighted
average
discount rate,
before tax (%)	11.7	12.3	11.7	12.3

The assumptions have been used to analyze each cashgenerating unit.

The management has established the budgeted and forecast margin based on historical results and expectations regarding market trends and the cash generating unit. The rate of growth used corresponds to the forecasts available in industry and analyst reports. The discount rate used is stated before tax and reflects specific risks applicable to the different cashgenerating units.

Calculations conducted using the above assumptions have demonstrated that no impairment of goodwill existed as per December 31. For a sensitivity analysis, see Note 28.

Emission rights

As a method for curtailing carbon dioxide emissions, in 2005 the EU introduced a system of emission rights. For the trading period 2008–2012, the Group received 36.7 million tonnes, of which 6.2 million tonnes were consumed in 2008. Estimated consumption for 2009 is 3.4 tonnes. As a consequence of the lower production and thereby reduced carbon dioxide emissions, 2.4 (1.5) million tonnes were sold during the year. Emission rights are reported as intangible assets booked at an acquisition value of SEK 0. Sold rights have generated a profit of SEK 313 (240) million.

7 Tangible fixed assets

					Construc
	Land			Equipment,	tion in pro	Total
	and land			tools, fix	gress and	tangible
	improve			tures and	advances	fixed
Group	ments	Buildings	Plant	fittings	to suppliers	assets
SEK millions
Acquisition value, January 1, 2008	967	3,422	29,504	949	3,031	37,873
Adjustment of opening balance1)	149	351	-2,448	347	-	-1,601
Adjusted acquisition value, January 1, 2008	1,116	3,773	27,056	1,296	3,031	36,272
Acquisitions	7	434	2,364	200	-409	2,596
Increase through business combinations	-	-	0	-	-	0
Sales and disposals	-3	-16	-322	-47	-	-388
Decrease through discontinued operations	-560	-700	-3,734	-445	-576	-6,015
Reclassifications	-40	205	-6	0	-159	0
Translation differences	11	130	953	11	9	1,114
Acquisition value, December 31, 2008	531	3,826	26,311	1,015	1,896	33,579

Acquisition value, January 1, 2009	531	3,826	26,311	1,015	1,896	33,579
Acquisitions	83	86	1,635	64	37	1,905
Sales and disposals	0	-5	-570	-71	-11	-657
Decrease through discontinued operations	-	-	-21	-2	-	-23
Reclassifications	1	27	503	-476	-22	33

Translation differences	-13	-79	-486	-7	-29	-614
Acquisition value, December 31, 2009	602	3,855	27,372	523	1,871	34,223

Accumulated depreciation, January 1, 2008	66	1,674	12,651	664	-	15,055
Adjustment of opening balance	6	1	-147	-2	-	-142
Adjusted accumulated depreciation, January 1, 2008	72	1,675	12,504	662	-	14,913

Sales and disposals	0	-16	-315	-30	-	-361
Depreciation for the year	16	123	1,352	81	-	1,572
Decrease through discontinued operations	-8	-22	-195	-26	-	-251
Reclassifications	-22	21	4	-3	-	0
Translation differences	-1	13	109	-	-	121
Accumulated depreciation, December 31, 2008	57	1,794	13,459	684	-	15,994

Accumulated depreciation, January 1, 2009	57	1,794	13,459	684	-	15,994
Sales and disposals	-	-2	-331	-64	-	-397
Depreciation for the year	29	101	1,438	31	-	1,599
Decrease through discontinued operations	-	-	-16	-1	-	-17
Reclassifications	-	0	392	-392	-	0
Translation differences	0	-10	-86	2	-	-94
Accumulated depreciation, December 31, 2009	86	1,883	14,856	260	-	17,085

Accumulated write-down, January 1, 2008	1	-	-	-	-	1
Write-down for the year	-	-	-	-	-	-
Accumulated write-down, December 31, 2008	1	-	-	-	-	1

Accumulated write-down, January 1, 2009	1	-	-	-	-	1
Write-down for the year	-	-	-	-	-	-
Accumulated write-down, December 31, 2009	1	-	-	-	-	1

Residual value, December 31, 2008	473	2,032	12,852	331	1,896	17,584
Residual value, December 31, 2009	515	1,972	12,516	263	1,871	17,137

1) The adjustment in the opening balance has taken place based on a final valuation of the net assets in the acquisition of IPSCO Inc.

Depreciation for the year is included in the income statement in the amount of SEK 1,493 (1,460) million in costs of goods sold; SEK 44 (58) million in selling expenses; SEK 51 (43) million in administrative expenses; and SEK 11 (11) million in other expenses. Commencing October 1, 2008, the Company applies IAS 23 regarding capitalization of interest during the construction period. During the period, SEK 8 million was capitalized and the rate of interest applied was 2.0 percent. The item "Machinery"

includes leasing agreements in the amount of SEK 88 (90) million in acquisition value and SEK 38 (45) million in residual value. The tax assessment value of properties in Sweden is SEK 2,206 (2,180) million, while the corresponding properties residual value is SEK 1,519 (1,233) million. As per the balance sheet date, there were contracted investments in fixed assets valued at SEK 1,018 (1,399) million which were not reported in the financial statements.

Parent company	Equipment, tools, fixtures and fittings	Total tangible fixed assets
SEK millions
Acquisition value, January 1, 2008	9	9
Acquisitions	0	0
Sales and disposals	0	0
Acquisition value, December 31, 2008	9	9
Acquisition value, January 1, 2009	9	9
Acquisitions	0	0
Sales and disposals	0	0
Acquisition value, December 31, 2009	9	9
Accumulated depreciation, January 1, 2008	1	1
Sales and disposals	0	0
Depreciation for the year	2	2
Accumulated depreciation, December 31, 2008	3	3
Accumulated depreciation, January 1, 2009	3	3
Sales and disposals	0	0
Depreciation for the year	2	2
Acquisition value, December 31, 2009	5	5
Residual value, December 31, 2008	6	6
Residual value, December 31, 2009	4	4

8 Financial assets, shares and participations in affiliated companies and joint venture

Group	Other shares and participations	Other long-term receivables	Total financial assets	Participations in affiliated companies
SEK millions
Book value January 1, 2008	6	266	272	353
Investments	-	78	78	-
Sales and amortization	-	0	0	-
Decrease through divestment
of businesses	-	-249	-249	-
Shares in profit after tax	-	-	-	95
Dividend	-	-	-	-75
Translation differences	0	18	18	0
Book value at December 31, 2008	6	113	119	373
Book value at January 1, 2009	6	113	119	373
Investments	1	3	4	-
Sales and amortization	-	-66	-66	-
Shares in profit after tax	-	-	-	7
Reclassification	3	-1	2	-
Dividend	-	-	-	-45
Translation differences	-	-4	-4	13
Book value at December 31, 2009	10	45	55	348

Other shares and participations consist primarily of unlisted holdings in equity instruments which do not have a listed market price and the fair value of which cannot be calculated in a reliable manner. They are valued at acquisition value

Other long-term receivables are receivables that are classified in the category "Loans and receivables", they are valued at amortized cost.

Parent company	Shares in subsidiaries	Shares in affiliated companies	Other shares and participations	Total financial assets
SEK millions
Acquisition value, January 1, 2008	12,434	51	3	12,488
Investments	29,787	-	0	29,787
Sales and amortization	-5,476	-41	-	-5,517
Residual value according to plan, December 31, 2008	36,745	10	3	36,758
Acquisition value, January 1, 2009	36,745	10	3	36,758
Investments	-	-	-	-
Sales and amortization	-	-	-	-
Residual value according to plan, December 31, 2009	36,745	10	3	36,758

8 cont.

Financial assets, shares and participations in affiliated companies and joint venture

Parent company's shares and participations in subsidiaries	Reg. no	Office	Number	% 2)	Book value, SEK millions
Swedish operating subsidiares:
Plannja AB	556121-1417	Luleå	80,000	100	16
SSAB Oxelösund AB	556313-7933	Oxelösund	1,000	100	450
SSAB Tunnplåt AB	556313-7941	Borlänge	1,000	100	1,500
Tibnor AB	556004-4447	Stockholm	850,000	85	283
Svenskt Stål Domnarvet AB	556207-4905	Stockholm	1,000	100	0
Foreign operating subsidiaries:
SSAB Central Inc.		Canada	1,000	100	272
SSAB Swedish Steel Inc.		USA	100	100	4,149
Western Steel Limited		Canada	682	100	182
SSAB Finance Belgium		Belgium	49,999,999	100	29,787
Other 1)					105
Dormant companies					1
Total					36,745

Parent company's other shares

3
3
7

10

1) A complete specification of other shares and participations is available from SSAB's Group headquarters in Stockholm.

2) The percentages indicate the equity share which, in all cases, also corresponds to the share of the voting capital.

Parent company's shares in
affiliated companies
Lulekraft AB	556195-0576	Luleå	100,000	50	10
Total, parent company's shares in
affiliated companies					10
Subsidiaries' shares and participations					Participation
in affiliated companies and joint venture					SEK millions
Oxelösunds Hamn AB	556207-4913	Oxelösund	5,000	50	79
Blastech Mobile LLC		USA		50	19
Norsk Stål A/S		Norway	31,750	50	193
Norsk Stål Tynnplater A/S		Norway	13,250	50	43
					334
Equity shares in affiliated companies and
joint venture's equity in excess of the
book value in the parent company					5
Total, Group participations in affiliated
companies and joint venture					348

9 Inventories

	Group		Parent Company
SEK millions	2009	2008	2009	2008
Raw materials, consumables and semi
finished goods	3,058	5,015	-	-
Work in progress	539	1,017	-	-
Stocks of finished goods	4,624	6,892	-	-
Advances to suppliers	-	-	-	-
Total inventories	8,221	12,924	-	-

SEK 1,165 (1,645) million of the inventory value is valued at net realizable value. The share of inventories which is booked as an expense amounts to SEK 29,020 (37,192) million during the period, whereof SEK 761 (489) million was reported as an expense relating to impairment of inventories.

10 Prepaid expenses and accrued revenue

	Group		Parent Company
SEK millions	2009	2008	2009	2008
Delivered, non-invoiced goods
and services	42	33	-	-
Bonuses, discounts, licenses and similar	12	42	-	-
Prepaid rents	31	35	2	2
Prepaid insurance premiums	21	37	-	-
Accrued interest income	12	23	12	21
Currency derivatives reported in hedge
accounting	84	290	44	290
Currency derivatives not reported in
hedge accounting	9	70	4	70
Reappraisal, hedged orders	3	-	-	-
Freight support	6	7	0	-
Unsettled insurance indemnification	8	0	0	-
Other prepaid expenses	103	122	17	200
Total prepaid expenses
and accrued income	331	659	79	583

11 Other current interest-bearing receivables/Cash and cash equivalents

	Group		Parent Company
SEK millions	2009	2008	2009	2008
Other current interest-bearing
receivables
Funds on deposit	-	142	-	142
Total current interest-bearing receivables	-	142	-	142
Cash and cash equivalents
Cash and bank balances	1,835	963	1,104	469
Short-term investments (term to maturity of less than three months)	1,817	1,750	1,080	1,750
Total cash and cash equivalents	3,652	2,713	2,184	2,219

All short-term investments and current interest-bearing receivables are valued at amortized cost. Short-term investments with terms to maturity of less than three months consist of overnight deposits at banks.

The share capital is SEK 2,851 (2,851) million, divided into 323.9 (323.9) million shares, with a par value of SEK 8.80 (8.80) per share. 240.7 (240.7) million of the shares are Class A shares while 83.2 (83.2) million are Class B shares. Each Class A share

entitles the holder to one vote, while each Class B share entitles the holder to one-tenth of one vote. No shares are held in treasury by the Company or its subsidiaries.

Shares/share capital	2009	2008
Numbers of shares in million	323.9	323.9
Share capital in SEK million	2,851	2,851

The average number of shares was 323.9 (323,9) million. Other contributed funds amount to SEK 9,944 (9,944) million and

consist of funds paid in by the shareholders in connection with new issues, in excess of the par value of the shares.

Reserve for
hedge of foreign	Reserve for	Translation	Total
operations	cashflow hedge	reserve	reserves

	-	-85	150

-	-	3,096	3,096
-3,442	-	-	-3,442

984	-	-	984
-304	-	455	151

-	-	-	-
-2,527	-	3,466	939

-2,527	-	3,466	939

-	-	-2,203	-2,203
475	18	-	493

-125	-5	-	-130
-	-20	-	-20
			5
-	5	-
-2,177	-2	1,263	-916
		235

Exchange rate differences which arise upon the translation into Swedish kronor of the net investment in foreign subsidiaries are transferred to the translation reserve. The accumulated translation differences amounted to SEK 1,263 (3,466) million. The exchange rate differences in conjunction with the translation of loans or other financial instruments taken up in order to hedge the exchange rate of net assets in foreign subsidiaries are transferred to the reserve for hedge of foreign operations. The accumulated translation differences amounted to SEK -2,177

(-2,527) million. Exchange rate differences in conjunction with cash flow hedge of significant sales in foreign currency are transferred to the reserve for cashflow hedge.The accumulated translation differences amounted to SEK -2 (-) million.

The proposed but as yet not resolved upon dividend for 2009 amounts to SEK 324 (1,296) million, equal to SEK 1.00 (4.00) per share. The amount has not been reported as a liability.

Within the Group there are both contribution-based and benefit-based pensions. In respect of contribution-based pensions and the pension plan for white collar staff in Sweden which is taken out with Alecta, the premiums relating to the period that has elapsed are reported as expenses for the year. The scope

of benefit-based pension plans in the Group has increased through the acquisition of IPSCO, but has been substantially reduced through the divestment of the tubular business. Actuarial profits and losses are reported in their entirety in the result.

The following provisions for pension obligations have been made in the balance sheet:

		Group		Parent Company
SEK millions	2009	2008	2009	2008
Funded pension obligations	30	36	-	-
Fair value of managed assets	-30	-35	-	-
Pension obligations less managed assets	0	1	-	-
Unfunded pension obligations	135	250	5	5
Pension provisions	135	251	5	5

The total pension expenses are broken down as follows:

		Group	Parent Company
SEK millions	2009	2008	2009	2008
Fees for contribution-based plans	376	185	8	6
Fees for pension insurance policies with Alecta 1)	58	68	3	3
Pension expenses, benefit-based plans	13	93	-1	0
Special employer's contributions	97	69	3	4
Other	1	1	-	-
Total pension expenses	545	416	13	13
Discontinued operations	-	34	-	-
Total, including discontinued operations	545	450	13	13

1)Alecta's surplus can be allocated to the policyholders and/or the insureds. At the end of September 2009, Alecta's surplus in the form of the collective funding level amounted to 136 percent compared to 112 percent as per the end of 2008. The collective funding level consists of the market value of Alecta's assets as a percentage of insurance commitments calculated in accordance with Alecta's actuarial calculation assumptions, which do not concur with IAS 19. The summary for 2009 is inclusive expenses reported against the cost reduction provision.

Changes in benefit-based obligations during the year:

		Group	Parent Company
SEK millions	2009	2008	2009	2008
Pension obligations, opening balance	285	2,185	5	6
Acquired operations	-	-	-	-
Divested operations	-	-1,859	-	-
Benefits earned during the year	10	39	0	0
Interest expenses	6	13	0	0
Paid benefits	-129	-176	0	-1
Exchange rate differences	0	70	-	-
Actuarial losses (+)/profits (-)	-6	13	-	0
Pension obligations, closing balance	166	285	5	5

Changes in the value of the managed assets during the year:

		Group		Parent Company
SEK millions	2009	2008	2009	2008
Managed assets, opening balance	34	1,803	-	-
Acquired operations	-	-	-	-
Divested operations	-	-1,806	-	-
Return during the year	4	-1	-	-
Fees from employer	92	118	-	-
Disbursed benefits	-94	-121	-	-
Exchange rate differences	2	44	-	-
Actuarial losses (-)/profits (+)	-7	-3	-	-
Managed assets, closing balance	31	34	-	-

	2009	2008
SEK millions
Experience based adjustments
- benefit-based obligations	8	-14
- managed assets	-7	0

Actuarial calculation assumptions

The actuarial calculation of pension obligations and pension expenses is based on the following assumptions.

	2009	2008
%
Discount rate	3	3
Inflation	2	2
Anticipated increase in salaries	3	3
Personnel turnover	1	1
Increase in income-base amount	3	3
Return on managed assets	6	6

In SSAB North America, however, the discount rate has been 6.6 (5.7) percent, the salary increase 3.5 (3.7) percent and the return 6.5 (6.5) percent.

14 Deferred tax liabilities and tax receivables

	Group		Parent Company
SEK millions	2009	2008	2009	2008
Deferred tax liabilities have arisen
- through accelerated depreciation/
amortization of fixed assets	5,058	5,533	-	-
- through transfers to tax allocation reserves	261	899	-	-
- through pension provisions	-2	-41	-	-
- through other temporary differences	-34	-112	-	-
Total deferred tax liabilities	5,283	6,279	-	-

Deferred tax receivables have arisen
- through non-utilized losses carried forward	69	6	-	-
- through pension provisions	37	43	1	1
- through fixed assets	1	5	-	-
- through provision, cost savings program	-	131	-	-
- through other temporary differences	57	60	-	-
Total deferred tax receivables	164	245	1	1

Deferred tax on retained earnings in subsidiaries and affiliated companies is not taken into consideration. To the extent profits are transferred to the parent company, such a transfer is normally exempt from taxation. To the extent such a transfer is not exempt from taxation, the parent company determines the date of such a transfer and such a transfer will not take place within the foreseeable future.

Changes in deferred tax liabilities	Group		Parent Company
SEK millions	2009	2008	2009	2008
Opening balance	6,279	8,514	-	-
Adjustment of opening balance 1)	-	1,025	-	-
Changes against earnings	-744	-275	-	-
Change through divestment of companies	-	-3,616	-	-
Translation difference	-252	631	-	-
Closing balance	5,283	6,279	-	-

Changes in deferred tax receivables
Opening balance	245	1,025	1	1
Changes against earnings	-82	-606	-	0
Change through divestment of companies	-	-177	-	-
Translation difference	2	3	-	-
Closing balance	164	245	1	1

1)Adjustment of the opening balance has taken place based on the final valuation of net assets in the acquisition of IPSCO Inc.

	Warranties,

			Total

-	-	99	99
-	-	-52	-52
498	224	22	744
-	-	-	-
-	-	-24	-24
-	-	4	4
498	224	49	771

498	224	49	771
	131	50	181
-76	-	-	-76
-400	-	-20	-420
-	-	2	2
22	355	81	458

		2009	2008

		415	253
		43	518
	Cost reduction program	divestment of operations 1)	Other provisions

"Other provisions" consist primarily of provisions for warranties, complaints as well as personnel-related provisions.

	Warranties, divestment of
Parent company	operations 1)	Other provisions	Total
SEK millions
Opening balance, January 1, 2008	-	7	7
Additional provisions	224	18	242
Utilized during the year	-	-7	-7
Closing balance, December 31, 2008	224	18	242
Opening balance, January 1, 2009	224	18	242
Additional provisions	131	15	146
Utilized during the year	-	-18	-18
Closing balance, December 31, 2009	355	15	370

		2009	2008
of which reported as:
- Other long-term provisions		355	224
- Current provisions		15	18

1) The Tubular business was sold on June 12, 2008 and there are warranty obligations to the buyer relating to the period prior to the divestment. In connection with the divestment, a provision was made for this obligation. In connection with the accounts for 2009, a renewed estimate has been made and the provision for this obligation has been increased to SEK 355 million. It is difficult to foresee when this undertaking will be settled, but the estimated period is whithin one to five years.

"Other provisions" consist primarily of personnel-related provisions.

Long-term interest-bearing liabilities	Group		Parent Company
SEK millions	2009	2008	2009	2008
Bonds 1)	5,010	1,868	5,010	1,868
Financial leasing agreements	37	43	-	-
Utilized credit facilities 2)	-	5,778	-	5,778
Bank loans 3)	9,534	10,477	9,534	10,477
Export financing 4)	246	-	-
Other	57	4	53	0
Total	14,884	18,170	14,597	18,123
Less amortization 2010 and 2009	-6	-106	-	-100
Total	14,878	18,064	14,597	18,023

	Interest rate
Issued/matures	(nominal) %	Group		Parent Company
SEK millions		2009	2008	2009	2008
1) Specification of bonds
Fixed interest 2007–2017	5.875	1,510	1,718	1,510	1,718
Variable interest 2009–2016	stibor +1.70 – +2.45	3,500	150	3,500	150
Total bonds		5,010	1,868	5,010	1,868
2) Specification of utilized credit facilities
Variable interest 2008–2013	libor +0.55	-	5,778	-	5,778
Total utilized credit facilities		-	5,778	-	5,778
3) Specification of bank loans
Fixed interest 2009–2014	5.25	516	-	516	-
Variable interest 2007–2014	libor +0.45 – +1.00	9,018	10,477	9,018	10,477
Total bank loans		9,534	10,477	9,534	10,477
4) Specification of export financing
Variable interest 2009–2016	euribor + 1.50	246	-	-	-
Total export financing		246	-	-	-

Repayment of long-term interest-bearing liabilities

SEK millions	2010	2011	2012	2013	2014	Later
As per December 31, 2009
Group	6	50	3,774	4,531	2,933	3,590
Parent company	0	16	3,718	4,475	2,877	3,510

Repayment of long-term interest-bearing liabilities
SEK millions	2009	2010	2011	2012	2013	Later
As per December 31, 2008
Group	106	157	6	6,635	9,636	1,630
Parent company	100	150	0	6,625	9,630	1,618

Current interest-bearing liabilities	Group		Parent Company
SEK millions	2009	2008	2009	2008
Current part of long-term liabilities	6	106	-	100
Commercial paper	2,601	1,339	2,601	1,339
Overdraft facilities	1,391	195	262	43
Total current interest-bearing liabilities	3,998	1,640	2,863	1,482

Loan debts are valued at the amortized cost except for a fixed interest loan of SEK 1,000 million which is a fair value hedge valued at the amortized cost, adjusted for changes in fair value on the hedged risk. The outstanding portion of loans in foreign currency is used as hedging for the net investment in SSAB North America and thus has not been hedged.

On the balance sheet date, the Group's exposure to changes in interest rates and the contractually agreed dates for interest renegotiation with respect to borrowing was as follows:

Amount falling due for interest rate renegotiation

SEK millions	2010	2011	2012	2013	2014	Later
As per December 31, 2009
Group	12,776	24	24	24	520	1,516
Parent company	12,518	18	18	18	514	1,510

Amount falling due for interest rate renegotiation
SEK millions	2009	2010	2011	2012	2013	Later
As per December 31, 2008
Group	16,356	154	-	-	-	1,660
Parent company	16,355	150	-	-	-	1,618

Reported amounts, per currency, for the Group's borrowing are set forth in Note 27.

17 Accrued expenses and deferred revenue

	Group		Parent Company
SEK millions	2009	2008	2009	2008
Accrued personnel expenses	808	1,175	17	17
Non-invoiced goods and services received	279	316	-	-
Accrued interest expenses	42	169	42	169
Accrued discounts, bonuses and complaints	20	71	-	-
Reappraisal, hedged orders	38	227	-	-
Derivatives reported in hedge accounting	29	12	-	12
Derivatives not reported in hedge accounting	2	-	-	-
Accrued expenses vis-à-vis affiliated companies	0	0	-	-
Energy taxes	9	22	-	-
Other items	100	81	2	13
Total Accrued expenses and
deferred revenue	1,327	2,073	61	211

18 Net debt

	Group		Parent Company
SEK millions	2009	2008	2009	2008
Cash and bank balances	1,835	963	1,104	469
Short-term investments	1,817	1,750	1,080	1,750
Receivables from subsidiaries	-	-	10,034	12,893
Other receivables	47	252	-	142
Interest-bearing assets	3,699	2,965	12,218	15,254

Current interest-bearing liabilities	3,998	1,640	2,863	1,482
Long-term interest-bearing liabilities	14,878	18,064	14,596	18,023
Pension provisions	135	251	5	5
Liabilities to subsidiaries	-	-	1,201	1,006
Other liabilities	2	2	-	-
Interest-bearing liabilities	19,013	19,957	18,665	20,516

Net debt	15,314	16,992	6,447	5,262

For defintion see Note 29.

19 Average number of employees, gender breakdown and sick leave

	Number of employees		Women, %
	2009	2008	2009	2008
Parent company
Sweden	44	44	40	38
Total, parent company	44	44	40	38
Subsidiaries
Sweden	6,453	7,289	18	18
Denmark	112	129	35	28
Finland	136	134	26	25
Italy	54	56	26	25
Canada	74	79	7	9
China	33	3	15	0
Norway	33	34	18	21
Poland	107	117	28	31
Great Britain	45	47	34	28
South Africa	64	75	0	21
Germany	31	36	37	39
USA	959	992	13	13
Other < 20 employees	189	140	19	20
Total, subsidiaries	8,290	9,128	18	18
Total, Group	8,334	9,172	18	18

19 cont. Average number of employees, gender breakdown and sick leave

The calculation is based on a normal number of working hours per year in different production areas. Consideration has been given, among other things, to different forms of shift work. The percentage of women relates to the numbers employed on December 31. Women accounted for 6 (4) percent of the members of all boards of directors in the Group, while the figure for the Board of Directors of the Parent Company was 8 (9) percent. The percentage of women in the management groups (including Presidents) in the Group was 13 (11) percent. The Group Executive Committee comprises seven men and two women.

The summary for 2008 is exclusive of the discontinued operations.

Personnel sick leave	Group1)		Parent Company 2)
(% of ordinary work time)	2009	2008	2009	2008
Total sick leave absence	3.4	4.2	0.6	1.0
- of which 60 days or more	34.7	47.6	0	0
Sick leave absence per group
- women	4.7	5.8	1.3	1.4
- men	3.2	3.9	0.2	0.8
- age 29 and younger	3.1	3.5
- aged 30–49	3.1	3.8
- aged 50 and older	3.9	5.1

1) Relates to the Group's employees in Sweden

2)Sickness in the parent company is reported only as a total and by gender since there are only 48 (45) employees.

Operational leasing	Group		Parent Company
SEK millions	2009 2008		2009	2008
Minimum leasing charges during the year	93	98	8	8

The agreed minimum leasing charges relating to operational leasing agreements that cannot be terminated amount to SEK 95 million for 2010; a total of SEK 267 million for 2011–2014; and to SEK 234 million for the years after 2014. Operational leasing includes office equipment, leases for property, premises and rolling stock for transportation in the steel operations.

Financial leasing	Group		Parent Company
SEK millions	2009	2008	2009	2008
Minimum leasing charges during the year	11	11	-	-

Agreed minimum leasing charges for 2010 amount to SEK 11 million; to a total of SEK 42 million for 2011–2014; and to SEK 8 million for the years after 2014. The present value of financial leasing liabilities is SEK 37 (45) million. Financial leasing includes a switchgear, rolling stock for transportation in the steel operations, as well as a number of fork lift trucks.

	Group		Parent Company
SEK millions	2009	2008	2009	2008
Real property mortgages	39	39	-	-
Floating charges	1	10	-	-
Total pledged assets	40	49	-	-

	Group		Parent Company
SEK millions	2009	2008	2009	2008
Guarantees	0	0	0	0
Contingent liabilities regarding
subsidiaries' obligations	41	-	396	103
Other contingent liabilities	47	90	26	59
Total contingent liabilities	88	90	422	162

Conditions not reported as contingent liabilities

In 2005, IPSCO was involved in two legal proceedings which are still pending in the state of Alabama, USA. The opposing party (initially, approximately 300 plaintiffs) alleges, among other things, that emissions from the steel mill in Mobile, Alabama affect the environment and, as a consequence, is claiming an unspecified amount in damages. IPSCO – and, following the acquisition, SSAB – have denied the allegations and to date over 160 claims have been dismissed by the court, while 17 claims which were tried on the merits were adjudicated in SSAB's favor.

During the autumn of 2008, a number of class actions were brought in Illinois, USA against a number of steel producers including SSAB alleging that they had violated US anti-trust legislation by colluding to restrict steel production in the United States during 2005 – 2008 with the aim of influencing steel prices. The opposing party consists of direct and indirect purchasers of relevant steel products who are claiming an unspecified amount in damages from the sued steel producers. SSAB will deny the allegations.

The Group is otherwise involved in a very limited number of legal disputes concerning insurance and warranty matters, as well as complaints. The anticipated outcome of these cases has been taken into consideration in the accounting.

Untaxed reserves	Parent Company
SEK millions	2009	2008
Depreciation in excess of plan	0	3
Tax allocation reserve 2008	652	654
Total untaxed reserves in the balance sheet	652	657

Appropriations	Parent Company
SEK millions	2009	2008
Difference between booked depreciation and depreciation according to plan	3	-1
Change in tax allocation reserve	2	-643
Total appropriations in the income statement	5	-644

No business acquisitions have accured in 2009. In 2008, 100 percent of the shares in the Romanian company, Plannja SRL was acquired. The purchase price, including acquisition costs, was SEK 10 million and the impact on the Group's cash and cash equivalents is SEK -9 million.

During 2009, SSAB Laminated Steel was sold with a profit of SEK 8 million and had a positive effect on the liquidity in the amount of SEK 31 million. The profit on the sale is reported as Other operating income.

During 2008, SSAB North America's tubular business was sold for a purchase price of USD 4,038.5 million. A specification of divested operations is presented in the tables below:

Income statement, tubular business in SSAB North America

SEK millions	2009	2008
Sales	-	7,918
Operating expenses	-	-6,969
Operating profit	-	949
Financial items 1)	-	-320
Profit after financial items	-	629
Tax	-	-209
Profit after tax	-	420
Profit upon valuation at fair value	-	-
Tax effect of lost losses carried forward 2)	-	-117
Total profit from the business	-	303
Earnings upon sale of discontinued operations 3)	-131	699
Tax on sale of discontinued operations	-	-165
Transaction expenses	-	-196
Profit from hedging and translation differences	-	-151
Total earnings for discontinued operations	-131	490

1) In order to provide a fairer view of the profit of the continuing operations, an interest expense on a debt equal to the net purchase price received in the sale has

been borne by the discontinued operationgs during the period of ownership.

2) Upon the divestment of the tubular business, losses carried forward could no longer be utilized, entailing a tax burden in connection with the sale.

3) The earnings for 2009 is a provision in respect of warranty obligations to the buyer for the period prior to the divestment.

Value of assets and liabilities divested in SSAB North America

SEK millions	Note	2009	2008
Goodwill	6	-	8,094
Other intangible assets	6	-	9,171
Tangible fixed assets	7	-	5,764
Financial assets	14	-	177
Inventories		-	4,411
Accounts receivables		-	1,540
Other current financial receivables		-	0
Other current receivables		-	494
Cash and cash equivalents		-	0
Deferred tax liabilities and provisions	14	-	-3,616
Long-term interrest-bearing liabilities		-	-400
Current interest-bearing liabilities		-	-120
Accounts payable		-	-1,238
Other curent liabilities		-	0
Divested net assets		-	24,277
Capital gain		-	490
Reversal of hedging and translation differences not affecting cash		-	151
Received purchase price after transaction costs and tax		-	24,918
Cash and cash equivalents in divested companies		-	0
Net received payment and effect on the Group's cash
and cash equivalents		-	24,918

Cash flow from divested tubular business in SSAB North America
SEK millions		2009	2008
Cash flow fom operations		-	54
Cash flow from investing activities		-	-338
Cash flow from financing activities		-	284

The Group Executive Committee has agreed upon operating segments, based on the information used to make strategic decisions. The Group Executive Committee is monitoring the business from a geografic perspective as well as an operational perspective. The segment information is presented in the tables below:

Sales and results per business area

	Total sales		Of which internal sales		Operating profit4)		Return on capital employed, %
SEK millions	2009	2008	2009	2008	2009	2008	2009	2008
Business area:
SSAB Strip Products	10,091	17,981	2,293	3,871	-1,637	3,324	neg	39
SSAB Plate	7,634	13,237	1,109	2,477	-73	3,154	neg	40
SSAB North America 1)	8,799	16,745	30	290	-271	2,951	neg	10
Tibnor	5,286	10,562	50	105	-38	634	neg	31
Other	1,633	2,171	14	2	-32	68	-	-
Parent company:
Parent company 2)	-	-	-	-	-43	2,232
Affiliated companies	-	-	-	-	5	84
Provision, cost reduc
tion program 3)	-	-	-		76	-498
Group adjustments	-3,605	-6,367	-3,496	-6,745	421	-2,433
Total, continuing
operations	29,838	54,329	0	0	-1,592	9,516	neg	17
Discontinued
operations	-	7,918			-	949
Total	29,838	62,247			-1,592	10,465

1) SSAB North America's operating profit has been affected by SEK 942 (745) million in depreciation and amortization on allocated surplus values on intangible and tangible fixed assets.

2) The result in the parent company includes result from sales of emission rights of SEK 300 (240) million. 2008 include the parent company's result of the divested tubular business.

3) The provision made in the end of 2008 was reported as a joint item for the entire group. The allocation between the business areas amount to SEK 200 million (SSAB Strip Products); SEK 125 million (SSAB Plate); SEK 0 million, (SSAB North America); SEK 34 million, (Tibnor); SEK 62 million (Other); as well as an unallocated portion of SEK 77 million. During 2009, SEK 76 million has been reversed.

4) Operating profit includes shares of earnings in affiliated company for SSAB Plate with SEK 11 (10) million for SSAB North America with SEK 3 (14) million and for Tibnor with SEK -12 (-14) million.

Balance sheet and cash flow information per business area

	Depreciation/ Operating
	Assets		Liabilities		amortization		Investments		cash flow
SEK millions	2009	2008	2009	2008	2009	2008	2009	2008	2009	2008
Business area:
SSAB Strip Products	10,513	13,555	7,079	7,770	621	579	900	1,127	1,006	2,692
SSAB Plate	9,843	11,620	6,921	7,262	433	366	554	659	1,312	1,818
SSAB North America	35,252	38,930	32,579	31,793	1,361	1,121	295	676	1,376	4,139
Tubular business (to
date of divestment)	-	-	-	-	-	-	-	-	-	-160
Tibnor	2,599	3,631	1,521	2,303	59	58	65	132	725	677
Others	28,757	29,750	876	1,016	30	38	98	51	-96	53
Parent company:
Parent company	49,079	53,001	19,798	22,597	2	2	0	-	545	-134
Group adjustments	-75,624	-81,232	-39,357	-38,679	-	-	-	-48	-	-
Total	60,419	69,255	29,417	34,062	2,506	2,164	1,912	2,597	4,868	9,085

Geographical areas

The Group's export sales from Sweden are focused primarily on Europe. However, as a consequence of growth in the Group's niche products, sales on more distant markets are increasing. The manufacture of the Group's steel products has taken place almost exclusively in Sweden and the United States. Thus, investments other than in those countries have been small.

The table below shows the breakdown of the Group's sales per country/region, irrespective of where the products are manufactured.

Sales per country/region

SEK millions	2009	%	2008	%
Sweden	7,099	24	13,518	25
EU-27 (excl. Sweden)	8,491	29	16,187	30
Rest of Europe	1,291	4	2,051	4
North America	10,366	35	19,171	35
Asia	1,915	6	2,154	4
Rest of the world	676	2	1,248	2
Continuing operations	29,838	100	54,329	100
Discontinued operations	-		7,918
Total	29,838		62,247

The table below shows the reported value of tangbile and intangible assets and investments broken down by geographic areas according to the location of the assets.

Tangible/Intangible assets				Investments
SEK millions	2009	%	2008	%	2009	%	2008	%
Sweden	9,796	23	9,441	21	1,583	83	1,845	71
EU-27 (excl. Sweden)	227	1	295	1	14	1	54	2
Rest of Europe	40	0	19	0	7	0	7	0
North America	32,065	75	35,510	78	296	16	680	27
Asia	70	0	72	0	6	0	5	0
Rest of the world	14	0	15	0	6	0	6	0
Total	42,212	100	45,352	100	1,912	100	2,597	100

Financial risk management is governed by the Group's finance policy. Most financial transactions take place through the parent company's finance function in Stockholm and through SSAB Finance Belgium.

SSAB's operational business gives rise to a number of financial risks, among other things refinancing risks (liquiditiy risks), market risks (interest rate risks and currency risks) and credit risks.

Refinancing risks (liquidity risks)

With its current financial targets, SSAB is a net borrower. Thus, a refinancing risk arises in connection with extensions of existing loans and the raising of new loans.

The borrowing strategy is focused on securing the Group's needs for loan financing, with regard to both long-term loans and SSAB's day-to-day payment obligations to its lenders and suppliers. Borrowing takes place primarily through the parent company, taking into consideration the Group's financial targets.

At year-end, long-term borrowing amounted to SEK 14,878 (18,064) million. Borrowing takes place primarily through the bank market and through existing note and commercial paper programs. For borrowing for terms of up to ten years, a European Medium Term Note Program (EMTN) or a Swedish MTN program is used, while a Swedish commercial paper program is used for borrowing for shorter terms. The program limit of the EMTN program is EUR 2,000 million, the MTN program has a limit of SEK 7,000 million, while the commercial paper programs has a limit of SEK 5,000 million. The Swedish commercial paper program is rated by Standard & Poor's at K-3 and the note programs at BBB-. At year-end, long-term borrowing within

the EMTN program amounted to SEK 1,510 (1,618) million, borrowing within the MTN program amounted to SEK 3,500 (250) million, and borrowing within the commercial paper program amounted to SEK 2,601 (1,339) million.

In order to minimize the refinancing risk, the objective is that the total of loans maturing during a single year shall not exceed 50 percent of the total debt portfolio. In addition, not more than 50 percent of the loans shall mature within the coming year. With respect to long-term financing, the target is an average term to maturity in excess of 3 years.

The liquidity buffer, i.e. non-utilized and binding credit facilities as well as cash and cash equivalents, should exceed 10 percent of the Group's turnover. The liquidity buffer consists primarily of a back-up facility of USD 1,500 million. During the autumn of 2009, the back-up facility which was previously utilized to ensure the Group's liquidity in the financial crisis prevailing at the time was repaid. The Group's liquidity preparedness, consisting of cash and cash equivalents, short-term investments and non-utilized binding credit facilities, amounted at yearend to SEK 18,850 (9,770) million, equal to 63 (18) percent of turnover.

To the extent surplus liquidity arises, it is used first and foremost to repay loans. If that is not possible, the funds are invested in government securities or deposited with approved banks.

The total loan debt at year-end was SEK 18,876 (19,704) million, with an average term to maturity of 3.5 (4.1) years. The maturity structure during the coming years is presented in Note 16.

The contractual payments as per December 31 on the outstanding loan debt, including interest payments and derivatives, are shown in the following table:

	Book	Contractual
SEK millions	value	cash flow	2010	2011	2012	2013	2014	Later
Bond loans	5,010	6,128	195	195	195	195	1,695	3,653
Bank loans	9,534	10,005	107	116	3,822	4,543	1,417	-
Export financing	246	276	5	21	55	55	55	85
Commercial paper	2,601	2,605	2,605	-	-	-	-	-
Credit facilities	1,391	1,397	1,397	-	-	-	-	-
Other	94	94	6	29	24	23	6	6
Total loan debt	18,876	20,505	4,315	361	4,096	4,816	3,173	3,744

Derivatives,
outflow, net	1,910	1,910	1,666	107	137	-	-	-
Derivatives, inflow,
net	-1,879	-1,879	-1,638	-105	-136	-	-	-
Total including derivative
instruments	18,907	20,536	4,343	363	4,097	4,816	3,173	3,744

In addition to the above loan debts and derivatives, there are accounts payable and other current liabilities which are due and payable within one year. Interest flows are calculated based on interest rates and exchange rates at year-end.

Market risks

Market risks are the risk of changes in market prices, such as interest rates and exchange rates, that can affect the Group's earnings or financial position.

Interest rate risks

The Group's interest rate risks relate to changes in market interest rates and their impact on the debt portfolio.

The average fixed rate term in the total debt portfolio should be approx. 1 year, but is permitted to vary between 0.5 and 2.5 years. The fixed rate term on the borrowing may be adjusted through the use of interest rate swaps.

At the end of the year, the total loan debt amounted to SEK 18,876 (19,704) million, of which SEK 3,026 (1,610) million carried fixed interest. SEK 1,000 million in fixed interest loans have been converted to variable 3-month interest rates through interest rate swaps. Including the interest rate swaps, the average fixed rate term was 0.9 (0.8) years. Given the same loan debt, short-term investments, cash and cash equivalents and the same fixed rate terms as at the end of the year, a change in market interest rates of 100 points (1 percentage point), including interest hedging, would change earnings after tax by approximately SEK 100 (130) million. Loans which are subject to rate renegotiation in the coming years are shown in Note 16.

At the end of the year, the value of interest rate swaps reported under hedge accounting was SEK 0 (-) million and loan reappraisal amounted to SEK 0 (-). No inefficiency was identified during the year.

The Group's interest-bearing assets amounted to SEK 3,699 (2,965) million and consisted almost exclusively of cash equivalents at variable rates of interest.

Currency risks

The Group's currency risks are managed by SSAB's treasury function. SSAB's currency exposure largely relates to the translation risk regarding net assets of foreign subsidiaries and divisions.

This exposure is hedged through borrowing in foreign currency, so-called Equity Hedge. Exceptions are made in the case of small amounts, e.g. for equity in foreign sales companies. The objective with the Equity Hedge is to minimize the translation effect on the net debt/equity ratio. The Swedish krona is the base currency.

Most of the commercial currency flows which qualify for hedge accounting (at present annual purchases of coal and iron ore in USD and sales in EUR) are hedged. Major investments decided upon in foreign currency are hedged in their entirety. Other commercial currency flows that arise in connection with purchases and sales in foreign currency are short term in nature and thus no hedging takes place; instead, they are exchanged on the spot market.

The Group had a net inflow in the most important currencies. The net foreign currency inflow in 2009 was SEK 7,940 (5,580) million. The Group's most important currency flows are shown in the diagram on page 15.

Based on revenues and expenses in foreign currency in 2009, a five percentage point devaluation of the Swedish krona against other currencies, including hedging, would have an annual effect on earnings after tax of just over SEK +290 (+210) million.

A five percentage point devaluation of the Swedish krona against the Group's two most important currencies, USD and EUR, would have a negative impact on earnings after tax of SEK 0 (310) million with respect to USD and a positive impact of just over SEK 170 (300) million with respect to EUR. The negative effect vis-à-vis USD consists of an increased cost for the Group's purchases of the raw materials, coal, iron ore and scrap metal, in the amount of SEK 270 (540) million, a positive effect on the business' net flows of USD in other respects of approximately SEK 280 (260) million, and a negative impact as regards increased interest payments of just over SEK 10 (30) million. The positive effect vis-à-vis EUR derives from the business' net flows.

In 2009, net exchange rate differences were booked in the amount of SEK 51 (+426) million in operating profit and SEK -49 (+81) million in financial items.

As per December 31, the breakdown per currency of the accounts receivable, other current receivables and derivative instruments was as follows:

		Group	Parent company
SEK millions	2009	2008	2009	2008
SEK	1,280	1 894	2	31
USD	1,429	1 789	16	273
EUR	1,346	2 109	32	98
Other currencies	807	1,142	-	-
Total	4,862	6,934	50	402
of which:
Accounts receivable	4,435	5,921	-	11
Other current receivables	334	653	2	31
Derivative instruments 1)	93	360	48	360
Total	4,862	6,934	50	402

1) Derivative instruments are included in the balance sheet item, Prepaid expenses and accrued revenue, in the amount of SEK 93 (360) million and for the parent company with SEK 48 (360) million.

As per December 31, the breakdown per currency of the accounts payable, other current liabilities and derivative instruments was as follows:

	Group		Parent Company
SEK millions	2009	2008	2009	2008
SEK	1,166	1,835	13	57
USD	1,262	1,513	-	12
EUR	617	546	-	0
Other currencies	228	234	-	0
Total	3,273	4,128	13	69
of which::
Accounts payable	3,063	3,831	9	31
Other current liabilities	179	285	4	26
Derivative instruments 1)	31	12	-	12
Total	3,273	4,128	13	69

1) Derivative instruments are included in the balance sheet item, Accrued expenses and deferred revenue, in the amount of SEK 31 (12) million, and for the Parent Company with SEK 0 (12) million..

The Group's borrowing broken down per currency is shown below:

	Group		Parent Company
SEK millions	2009	2008	2009	2008
SEK	8,251	1,680	8,210	1,632
USD	10,125	17,874	9,146	17,873
EUR	350	-	104	-
Other currencies	150	150	-	-
Total	18,876	19,704	17,460	19,505

As shown above, the Group's borrowing in foreign currency is largely in USD.

Borrowing in USD has not been hedged since exchange rate differences on loans are offset by exchange rate differences on the net investment in SSAB North America and the net investment in SSAB Finance Belgium (which provides the internal financing for SSAB North America).

The objective is to obtain an even balance in which the currency effect on the net investment in SSAB North America and SSAB Finance Belgium has as little impact as possible on the Group's net debt/equity ratio.

At year-end, this net investment amounted to USD 4,314 (4,314) million. In total, hedged accounted loans and currency derivatives amounted to USD 1,370 million. At year end, the accumulated fair value change in the hedge reserve on the part that was defined as loans and derivatives amounted to SEK 3,036 (-3,511) million. During the year, an inefficiency of SEK 10 (-138) million was identified and has been reported in its entirety in the result.

Credit risk

Financial counterparties are selected based on Standard & Poor's (S&P) and Moody's current ratings for long-term borrowing and taking into account the Group's reciprocal commercial relations with the relevant counterparty. The lowest acceptable ratings are A- from Standard & Poor's or A3 from Moody's.

The financial crisis has increased the credit risk in the financial system. In the autumn of 2008, the limits for individual counterparties were reduced and, during 2009, these have remained unchanged at SEK 1,500 (1,500) million for any individual counterparty.

The total counterparty risk in derivative instruments at year-end was SEK 3,714 (3,041) million, of which derivative instruments accounted for SEK 62 (328) million and investments in cash equivalents accounted for SEK 3,652 (2,713) million.

In addition to the above, there are credit risks associated with accounts receivable and other receivables, which are managed in each subsidiary. Prior to write down in respect of bad debts, these receivables had a gross value of SEK 4,943 (6,660) million. The risk is allocated over a large number of customers. In addition, individual credit rating tests are conducted and limits imposed for each customer. The financial crisis has increased the credit risk in accounts receivable and other receivables during the year, the provision made for bad debts increased, as shown in the table on the next page. No security has been received for these receivables.

Age analysis regarding Accounts receivable

and Other receivables	Group		Parent Company
SEK millions	2009	2008	2009	2008
Not due	3,770	4,778	2	31
0–30 days	659	1,317	-	11
31–120 days	196	420	-	-
121–365 days	110	53	-	-
> 365 days	34	6	-	-
Total	4,769	6,574	2	42

Bad debts, change	Group		Parent Company
SEK millions	2009	2008	2009	2008
Opening balance Anticipated	-86	-29	-	-
bad debt losses Established	-135	-53	-	-
bad debt losses Reversed non-utilized	28	5	-	-
amount	17	-	-	-
Translation differences	2	-9	-	-
Closing balance	-174	-86	-	-

No other financial assets have been written-down.

Emission rights

The parent company's treasury function is responsible for managing any deficits or surpluses in emission rights. This takes place through external trading with approved counterparties.

Valuation of financial instruments

Currency derivatives and interest rate swaps According to the financing policy, currency hedging takes place mainly to minimize the translation risk associated with the impact of changes in exchange rates on the net debt/equity ratio. The translation exposure is hedged primarily through loans in the same currency, in the absence of which currency derivatives may be used instead. At year-end, the SSAB North America investment was hedged with loans amounting to USD 1,250 million and derivative instruments amounting to USD 120 million.

Currency hedging takes place also with respect to purchases of coal and iron ore, as well as for major investments in foreign currency. Only currency derivatives are used to hedge such currency risks and all currency derivatives are valued at fair value on the balance sheet. For the currency hedging which meets the requirements for hedge accounting pursuant to IAS 39 and comprises fair value hedging, changes in value of the currency derivative do not impact earnings but, rather, are set off in the income statement against corresponding changes in value of the hedged order. In connection with the delivery of such hedged purchases, the hedged part of the acquired asset is booked at the hedged rate, and thus no separately booked exchange rate difference arises on the purchase. At year end, purchase orders for which currency futures had been contracted had a total value of SEK 1.1 (2.4) billion. At year-end, derivative instruments for "fair value hedging" had a booked fair value of SEK +41 (+278) million, while

purchases reported in hedge accounting were booked at SEK -41 (-278) million, entailing that there was no inefficiency at the end of the accounting year.

Currency hedging also takes place on sales in EUR. For currency hedging which meets the requirements for hedge accounting, changes in value of a currency derivative do not impact on earnings but, rather, are reported in the statement of comprehensive income as a hedge reserve. In connection with sales, accumulated amounts are reversed from the hedge reserve in equity to the income statement in the periods in which the hedged item affects earnings. At year-end, the total value of forecast sales in respect of which currency futures had been contracted was SEK 2.5 (-) billion. Derivative instruments which relate to forecast sales and which meet the requirements for hedge accounting amounted to net SEK -2 (-) million at year end; these have been booked against the hedge reserve in the statement of comprehensive income. There was no inefficiency at the end of the accounting year.

Fair value hedging also takes place with respect to certain bond loans carrying fixed interest where a fixed to variable interest rate swap is used. For interest rate derivatives which meet the requirements for hedge accounting pursuant to IAS 39 and comprise fair value hedging, changes in value of the interest rate derivative do not impact earnings but, rather, are set off in the income statement against corresponding changes in value of the hedged debt. At year-end, interest rate derivatives for "fair value hedging" had a booked fair value of SEK 0 (-) million, while reappraisal of the hedged bond debt was booked at SEK 0 (-) million. There was no inefficiency at the end of the accounting year.

Derivative instruments which are not reported in hedge accounting are valued at fair value over the income statement. At yearend, net non-realized derivative instruments amounted to SEK 7 (70) million, of which SEK 0 (50) million was reported in "Other operating revenue" and SEK 7 (20) million in "Financial items".

The net result from realized derivatives amounted during the year to SEK -43 (-13) million, which was reported in its entirety in "Financial items". The Group's total outstanding derivatives at year end had an average remaining term of 4.0 (5.9) months.

Valuation of financial assets and liabilities

The table below shows the reported value compared with the assessed fair value per type of financial asset and liability:

	Reported	Fair value	Reported	Fair
Group	value	value	value	value
SEK millions	2009	2009	2008	2008
Financial,assets
3. Financial,fixed assets	55	55	119	119
1. Currency derivatives not subject to hedge accounting*)	9	9	70	70
6. Currency derivatives for "fair value hedging" of flows *)	45	45	290	290
6. Currency derivatives for hedging of net investment *)	16	16	-	-
6. Currency derivatives for cash-flow hedging of sales *)	23	23	-	-
6. Interest rate swaps for "fair value hedging"	0	0	-	-
3. Accounts receivable	4,435	4,435	5,921	5,921
3. Other current interest-bearing receivables	-	-	142	142
3. Cash and cash equivalents	3,652	3,652	2,713	2,713
Financial liabilities
5. Long-term interest-bearing liabilities	13,878	14,051	18,064	18,507
7. Long-term interest-bearing liabilities	1,000	1,000	-	-
5. Current interest-bearing liabilities	3,998	3,998	1,640	1,640
1. Currency derivatives not subject to hedge accounting*)	2	2	-	-
6. Currency derivatives for "fair value hedging" of flows *)	4	4	12	12
6. Currency derivatives for hedging of net investment *)	-	-	-	-
6. Currency derivatives for cash-flow hedging of sales *)	23	25	-	-
5. Accounts payable	3,063	3,063	3,831	3,831

*) Derivative instruments are included in the balance sheet item prepaid expenses and accrued revenue and accrued expenses and deferred revenue.

Balance sheet item classification:

Holding valued at fair value in the income statement.

2.Holding to maturity.

1. Loan claims and accounts receivable.
1. Assets available for sale.
1. Financial liabilities valued at amortized cost.
6.Derivatives for hedging.
Long-term liabilities valued at amortized cost adjusted for fair value changes of the hedged risk.

Financial fixed assets consist largely of other long-term receivables and are valued at the amount which is expected to be received following an assessment of bad debts.

Derivative instruments are valued at fair value and calculated based on prevailing market prices on a listed market.

Accounts receivable are reported in the amount which is expected to be received following an individual assessment of bad debt. There is no concentration of credit risks since the Group has a large number of customers spread throughout the world.

Other current interest-bearing receivables consist of claims with terms to maturity of less than 3 months. Fair value is estimated at the acquisition value.

Cash and cash equivalents consist of bank balances and deposits at banks with short terms until maturity and the fair value is estimated at the acquisition value.

Long-term interest-bearing liabilities consist primarily of loans and are valued at amortized cost. Loans which are reported in hedge accounting are valued and booked at fair value. Fair value has been calculated based on the rate of interest for outstanding terms to maturity as applicable at the end of the year.

Current interest-bearing liabilities are valued at amortized cost. Fair value has been calculated based on the rate of interest for outstanding terms to maturity as applicable at the end of the year. Accounts payable are reported in the amount which is expected to be paid and valued at acquisition value.

Management of capital

The Company's capital management objective is to ensure that the operations can continue to be conducted to generate good returns for the shareholders. Since the Group's operations are dependent on the business cycle, the target is to maintain a long-term net debt/equity ratio of around 30 percent.

In order to maintain or adapt the capital structure, dividends may be adjusted, share buy-backs or redemption may take place, or new issues or divestments of assets may take place in order to reduce liabilities.

During the year, the net debt/equity ratio was relatively stable. The net debt/equity ratio at year end was 49 (48) percent.

Important assessments upon application of the accounting principles

In the steel operations' industrial areas, there is a need for future land clean up. In accordance with applicable rules, such clean up will become relevant only when SSAB ceases to conduct operations in the area. At present, it is not possible to assess if and when operations will cease and, accordingly, no provision has been made for such land clean up.

Important sources of uncertainty in estimations

Test of impairment of goodwill

On November 30, the annual impairment test was carried out of the goodwill which arose in conjunction with the acquisition of IPSCO. The test showed no impairment (see Note 6). The valuation was carried out at a time when the global economy was characterized by great uncertainty and, under such circumstances, it is of course extraordinary difficult to make an assessment as regards future earning capacity and thereby an assessment of the fair value of goodwill.

Had the estimated discount rate before tax which was applied to the discounted cash flows been 2.3 percentage points higher than the assessment made in the calculation or if the long term forecasted gross margin will be 6.2 percentage points lower than the assessment made in the calculation, the useful value of the goodwill would correspond to the book value.

Pension benefits

A large part of the Group's pension obligations with respect to white collar staff are benefit based and insured on a collective basis with Alecta. Since it is not possible at present to obtain information from Alecta regarding the Group's share of the obligations and managed assets, the pension plan taken out with Alecta is reported as a contributions based plan. The funding level reported by Alecta at the end of the year does not indicate the existence of a deficit; however, it is not possible to obtain any detailed information from Alecta regarding the amount of the pension liabilities.

Accounts receivable

Provision for bad debts is based on assessments of the customers' payment ability and, in the prevailing financial crisis, is extremely difficult to estimate. The item has been the subject of special assessment and, compared with the preceding year, the provision for bad debts was increased by SEK 88 million to SEK 174 (86) million, thereby representing 3.8 (1.3) percent of outstanding accounts receivable.

Other provisions

A possible claim by the buyer of the tubular business regarding our warranty obligations attributable to the period prior to the divestment represents the management's estimation and is difficult to assess. As far as is currently known, the most unfavorable outcome would result in a need for further provisions. However, such a position will be challanged by the Company and, in such case, it will probably be necessary for the matter to proceed to litigation. See other provisions, Note 15.

Sales

Sales less deduction for value added tax, discounts, returns, and freight.

Equity

Total equity according to the consolidated balance sheet.

Capital employed

Total assets less non-interest-bearing current and long-term liabilities.

Cash and cash equivalents

Cash and bank balances, as well as short-term investments with a term to maturity of less than three months on the date of acquisition.

Net debt

Interest-bearing liabilities less interest-bearing assets. (Commencing 2008, no longer includes current interest-bearing tax receivables/liabilities.)

Return on equity after tax

Profit for the year after tax as a percentage of average equity per month during the year.

Return on capital employed before tax

Operating profit before participations in affiliated companies increased by financial revenue as a percentage of average capital employed per month during the year.

Equity ratio Equity as a percentage of total assets.

Net debt/equity ratio

Net debt as a percentage of equity.

Operating cash flow

Funds generated from operations including change in working capital as well as cash flow for regular maintenance investments, but before financial items and paid tax.

Cash flow from current operations

Operational cash flow less financial items and paid tax.

Earnings per share

Profit for the year attributable to the parent company's shareholders divided by the average number of shares.

P/E ratio

Share price at year end divided by earnings per share.

Equity per share

Equity, excluding minority interests, divided by number of shares at year end.

Yield

Dividend as a percentage of the share price at year end.

30 Considerations relating to proposed allocation of profit

At the 2010 Annual General Meeting, the shareholders shall, among other things, vote on the dividend proposed by the Board of Directors.

At the end of the year, the net debt was SEK 15,314 (16,992) million, entailing a net debt/equity ratio of 49 (48) percent. The Group's long-term target over a business cycle is 30 percent. The average term to maturity on the loan portfolio at the end of the year was 3.5 years, and no major loans will mature during the coming two years. The Group's retained earnings amounted to SEK 18,962 million and the parent company's unrestricted funds to SEK 25,528 million. Equity included no unrealized profits resulting from financial instruments being reported at market value. Since the end of the year, nothing material has occurred which has had a negative impact on the Group's financial position.

According to SSAB's financial targets, dividends over a business cycle shall comprise approximately 50 percent of profit after tax. In recent years, SSAB has been slightly below this target also when the redemption program carried out by the

Company is taken into account. In proposing the dividend, the Board of Directors has weighed the negative result generated in 2009 against the financial target for dividend. Against this background, the Board has decided to propose to the Annual General Meeting that the dividend to be reduced by SEK 3 per share and thus that a dividend be paid of SEK 1,00 (4.00) per share, equal to SEK 324 (1,296) million. The dividend will thereupon, measured at the turn of the year, increase the net debt/ equity ratio of the Group to 51 percent.

The Board believes that the proposed distribution of profit to the shareholder is defensible with respect to both the Company and the Group, taking into consideration the demands placed by the nature, scope and risks associated with the operations regarding the size of equity and also taking into account the need to consolidate the balance sheet, financing, liquidity and financial position in general.

Proposed allocation of profit

The amount at the disposal of the Annual General Meeting is as follows

Retained earnings	25,380
Profit for the year	148
SEK millions	25,528

Of this, a share premium reserve comprises SEK 9,391 million and a fair value reserve comprises SEK 1,573 million.

The Board of Directors and President recommend that the profit be allocated as follows:

Dividend to the shareholders
SEK 1.00 per share	324
Carried forward to next year	25,204
SEK millions	25,528

According to the consolidated balance sheet, the Group's retained earnings amounted to SEK 18,962 (21,260) million.

The Board of Directors and the President hereby affirm that the consolidated financial statements have been prepared in accordance with international accounting standards, IFRS, as adopted by the EU and provide a true and fair view of the Group's financial position and earnings. The Annual Report has been prepared in accordance with generally accepted accounting principles and provides a fair and true view of the parent company's financial position and earnings. The report of the directors for the Group and the parent company provides a true and fair overview of the development of the operations, financial position and earnings of the Group and parent company and describes material risks and uncertainty factors facing the parent company and the companies included in the Group.

Sverker Martin-Löf Carl Bennet Anders G Carlberg Chairman Director Director

Stockholm, February 9, 2010

Bert Johansson Marianne Nivert Anders Nyrén Director Director Director

Ola Parten Per Scheikl Matti Sundberg

John Tulloch Lars Westerberg Olof Faxander Director Director President and CEO

Director Director Director

Our auditor's report was submitted on February 12, 2010 PricewaterhouseCoopers AB

Claes Dahlén Authorized public accountant

Auditor's report

To the annual general meeting of SSAB AB (publ) Reg. no. 556016-3429.

We have audited the annual report, consolidated financial statements, accounting records and the management by the Board of Directors and President of SSAB AB (publ) for 2009. The Company's annual report and consolidated financial statements are included in the printed version of this document, on pages 9-100. The Board of Directors and President are responsible for the accounting documents and management and for ensuring that the annual report is prepared in accordance with the Swedish Annual Reports Act and that the international accounting standards, IFRS, as adopted by the EU, are applied in conjunction with the preparation of the consolidated financial statements. Our responsibility is to express an opinion on the annual report, the consolidated financial statements and management based on our audit.

The audit has been conducted in accordance with Generally Accepted Auditing Standards in Sweden. This entails that we have planned and performed the audit in order to ensure with a high degree of certainty, however not absolutely, that the annual report and consolidated financial statements contain no material errors. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounting documents. An audit also includes assessing the accounting principles used and their application by the Board of Directors and the President, as well as evaluating the significant estimations made by the Board of Directors and President in the preparation of the annual report and the consolidated financial statements and an assessment of the information compiled in the annual report and consolidated financial statements. As a basis for our opinion concerning discharge from liability, we have

examined significant decisions, actions taken, and circumstances in the Company in order to be able to determine the liability to the Company, if any, of any director or the President. We have also examined whether any director or the President has otherwise acted in contravention of the Companies Act, the Annual Reports Act, or the bylaws. We believe that our audit provides a reasonable basis for our opinions set out below.

The annual report has been prepared in accordance with the Annual Reports Act and provides a true and fair view of the results and financial position of the Company in accordance with Generally Accepted Accounting Principles in Sweden. The consolidated financial statements have been prepared in accordance with the international accounting standards, IFRS, as adopted by the EU and in accordance with the Annual Reports Act and provide a true and fair view of the results and financial position of the Group. The Report of the Directors is compatible with other parts of the annual report and the consolidated financial statements.

We recommend that the annual general meeting adopt the income statements and balance sheets for the parent company and the Group, allocate the profit of the parent company in accordance with the proposal set forth in the Report of the Directors, and grant the directors and President discharge from liability for the financial year.

Stockholm, February 12, 2010 PricewaterhouseCoopers AB

Claes Dahlén Authorized public accountant

» Through innovative exploitation of the elasticity and strength of high strength steels, the Swedish company, Hydroforming Design Light, has developed roller skis which can be adapted to the weight of the user. The experience is almost the same as skiing on real snow. «

102 – SSAB ANNUAL REPORT 2009

Corporate governance report 2009

	Page
Application and deviations	104
Shareholders	104
General Meeting	105
2009 Annual General Meeting	105
Nomination Committee	105
The Board of Directors	106
Auditors	107
Compensation Committee	109
Audit Committee	109
Group Executive Committee	109
Compensation guidelines	110
Internal control and risk management	110
Internal audit	111
The Board's description of internal control and risk
management with respect to financial reporting	111
Information and communication	113

Corporate governance report 2009

SSAB AB was formed in 1978 and, through a successful and deliberate niche focus, has developed into one of the world's most profitable steel companies.

Application and deviations

SSAB's organization is characterized by a decentralized work method in which responsibilities and powers are, to a large degree, delegated to the respective divisions and subsidiaries.

The Group's steel operations in 2009 comprised the three divisions, SSAB Strip Products, SSAB Plate and SSAB North America, while trading and processing operations consisted of the subsidiaries, Tibnor and Plannja. At the end of 2009, a decision was taken to change the organization structure in the Group so that, commencing January 1, 2010, the divisions are replaced by three geographic business areas: SSAB EMEA (Europe, the Middle East and Africa), SSAB Americas (North and Latin America) and SSAB APAC (Asia, Australia and New Zealand).

SSAB is listed on Nasdaq OMX Stockholm and comp-

lies with its rules and regulations and thereby applies the Swedish Code on Corporate Governance (the "Corporate Code"). SSAB has no deviations from the Corporate Code to report with respect to 2009.

The corporate governance report for 2009 does not constitute a part of the formal annual report documents and has not been reviewed by the Company's auditors.

The diagram below illustrates SSAB's corporate governance model as per December 31, 2009 and how the central bodies operate.

Shareholders

SSAB's share capital consists of class A and class B shares, with class A shares carrying one vote and class B shares one-tenth of one vote. Both classes of shares carry the same

Important external and internal regulations and policies that affect corporate governance.

Important internal regulations and policies

• By-laws
• The Rules of Procedure for the Board of Directors with instructions for the President
• Instructions for Board committees
• Accounting manual (Financial Gudelines),
including finance policy
• Code of Business Ethics

Significant external rules and regulations

• Swedish Companies Act
• Swedish Accounting Act
• Swedish Annual Reports Act
• Nasdaq OMX Stockholm's Rules and Regulations
• Swedish Code on Corporate Governance

rights to participate in the Company's assets and profits.

On December 31, 2009 there were 69,910 shareholders. In terms of votes, Industrivärden was the largest shareholder, followed by Swedbank Robur Funds, LKAB and AMF. 70 percent of the shareholders held 1,000 shares or fewer, while the ten largest institutional owners together owned just over 39 percent of the total share capital. Foreign owners accounted for 22 (21) percent of shareholdings. For further information regarding the ownership structure, see page 44.

Owners as per December 31, 2009

Owner	% of votes	% of shares	Number of shares
Industrivärden	20.7	16.0	51,711,440
Swedbank Robur Funds	5.8	7.0	22,718,167
LKAB	5.0	3.8	12,344,064
AMF – Försäkring och Fonder	3.3	2.5	8,112,860
Nordea Investment Funds - Sweden	1.9	2.0	6,446,166
Folksam – KPA – Förenade Liv	1.8	1.6	5,064,782
SEB Investment Management	1.6	1.6	5,311,930
Handelsbanken incl. pension fund	1.6	1.4	4,526,804
Other shareholders	58.5	64.1	207,698,562
Total Source: Euroclear	100.0	100.0	323,934,775

General Meeting

The General Meeting is the Company's highest decisionmaking body; it is there that shareholder influence in the Company is exercised. At the Annual General Meeting (Ordinary General Meeting), the shareholders decide, among other things, on the following:

• Adoption of the Annual Report and consolidated financial statements
• Allocation of the Company's profit
• Discharge from liability for the Board of Directors and the President
• Election of the Board and its Chairman and, where appropriate, election of auditors
• Method of appointment of the Nomination Committee
• Compensation to the Board and the auditors
• Guidelines for compensation to the President and other senior executives

2009 Annual General Meeting

The 2009 Annual General Meeting adopted the Annual Report and consolidated financial statements for 2008 presented by the Board and the President, decided on the allocation of the Company's profit, and granted the directors and the President discharge from liability.

In addition, the Chairman of the Nomination Committee described the work during the year and described the reasons for the presented proposals. The General Meeting decided on compensation to the Board and auditors in accordance with the Nomination Committee's proposals. Carl Bennet, Anders G Carlberg, Olof Faxander (President and CEO), Sverker Martin-Löf (Chairman), Marianne Nivert, Anders Nyrén, Matti Sundberg and Lars Westerberg were re-elected as directors. John Tulloch was newly elected to the Board.

The General Meeting decided that the dividend would be SEK 4.00 per share.

With the exception of Marianne Nivert, all directors and the auditor-in-charge were present at the Annual General Meeting.

See the minutes of the General Meeting on www.ssab.com

Nomination Committee

The Nomination Committee's duties The Nomination Committee's duties include presenting proposals to the Annual General Meeting regarding:

• Chairman of the Board
• Directors
• Auditors, where appropriate
• Chairman of the Annual General Meeting
• Fees to the Board
• Fees to auditors

Composition of the Nomination Committee The 2009 Annual General Meeting adopted guidelines for the Nomination Committe. According to these guidelines, the Chairman of the Board is charged with the task of requesting no fewer than three and no more than five of the larger shareholders in terms of votes to each appoint one member to form a Nomination Committee together with the Chairman of the Board. The total number of members shall not exceed six. The Chairman of the Nomination Committee shall be the representative of the largest shareholder.

The composition of the Nomination Committee was announced on the Company's website, www.ssab.com, on September 25, 2009.

Nomination Committee for the 2010 Annual General Meeting
Appointed by, name	Share in % of voting capital
Industrivärden, represented by Carl-Olof By, Chairman	20.7
Swedbank Robur Fonder, represented by Peter Rydell	5.8
LKAB, represented by Lars-Erik Aaro	5.0
AMF, represented by John Hernander	3.3
Sverker Martin-Löf, Chairman of the Board	-

Until December 31, 2009 shareholders were able to submit proposals to the Nomination Committee, among other things by e-mail. The Nomination Committee's proposals are published not later than in connection with the notice to attend the Annual General Meeting. In connection with issuance of the notice to attend the Annual General Meeting, the Nomination Committee will provide, on www.ssab.com, a detailed statement regarding its proposal for a Board.

The Nomination Committee's work pending the 2010 Annual General Meeting

Since being appointed in the autumn of 2009, the Nomination Committee has held three meetings at which all members were present.

The Chairman of the Board has described to the Nomination Committee the process applied in the Company in conjunction with the annual evaluation of the Board of Directors and the President, as well as the result of the evaluation. In addition, the Chairman of the Nomination Committee has informed the Nomination Committee of the result of the evaluation of the Chairman of the Board. At one of its meetings, the Nomination Committee also met the Company's President, who informed the members about the Company's operations and strategy.

The Nomination Committee has discussed the composition of the Board and agreed on the main demands which should be imposed on the directors, including the demand for independent directors. The Nomination Committee has also had access to an external consultant in the work of identifying and evaluating potential new directors.

The Nomination Committee has produced proposals for fees for the Board and its committees, among other things taking into consideration levels of Board fees in similar companies. In the production of a proposal regarding fees for audit work, the Nomination Committee has been assisted by the Audit Committee.

The Board of Directors

The Board's responsibilities

The overall task of the Board of Directors is to manage the Company's affairs on behalf of the shareholders in the best possible manner. The Board of Directors shall regularly assess the Group's financial position and evaluate the operational management. The Board of Directors decides, among other things, on questions concerning the Group's strategic focus and organization, and decides on important capital expenditures (exceeding SEK 50 million) and undertakings.

Each year, the Board shall prepare proposals for guidelines regarding determination of salary and other compensation for the President and other members of the Company's management, to be decided upon at the Annual General Meeting.

The Board's rules of procedure

Each year the Board adopts rules of procedure including instructions to the President which, among other things, govern the allocation of work between the Board and the President. The rules of procedure also regulate the manner in which Board work is allocated among the directors, the frequency of Board meetings and the allocation of work among various Board committees. According to the rules of procedure an Audit Committee and a Compensation Committee shall be established. Prior to each Board meeting, the directors receive a written agenda and full documentation to serve as a basis for decisions. At each Board meeting, a review is conducted regarding the current state of the business, the Group's results and financial position, and prospects for the remainder of the year. Other issues addressed include competition and the market situation.

Chairman of the Board

The Chairman of the Board of Directors presides over the Board's work, represents the Company on ownership issues and is responsible for the evaluation of the work of the Board. In addition, the Chairman is responsible for regular contacts with the President and for ensuring that the Board of Directors performs it obligations.

Composition of the Board

According to the by-laws, the Board shall consist of no fewer than five and no more than ten directors elected by the general meeting. The Board is quorate when more than half of the directors elected by the general meeting are present. Taking into consideration the Company's operations, phase of development and circumstances in general, the Board must have an appropriate composition which is characterized by diversity and breadth as regards the expertise, experience and background of its members. New directors undergo an introduction course to rapidly acquire the knowledge which is expected in order to best promote the interests of the Company and its shareholders.

The Board's work in 2009

In 2009, nine meetings were held at which minutes were taken and the Board was at all times quorate. SSAB's General Counsel, who is not a director, served as secretary to the Board. During the year, SSAB's Board has worked intensively to counteract the financial crisis and the effects of the recession on the Company's business and financial situation. Focus was placed on issues concerning the Company's cash flow and follow-up of the Company's cost reduction program which was initiated at the end of 2008. The Board has also devoted a great deal of time to the Company's strategy and organization and, at the meeting in October, decided on a radical change in the Company's organization, aimed primarily at clarifying and strengthening the Company's total offering to customers. Work continued on ensuring the integration work following the acquisition in 2007 of the North American steel company, IPSCO Inc. (SSAB North America) and the subsequent divestment of the North American tubular business in 2008.

Auditors

According to the by-laws, SSAB shall have one or two external auditors. At the 2007 General Meeting, PricewaterhouseCoopers was re-elected as auditor for an additional four-year term. Authorized public accountant Claes Dahlén has been the auditor-in-charge since 2005; he is also the auditor-in-charge of the listed company, Medivir. PricewaterhouseCoopers is the elected auditor of a total of 23 of the 61 companies in the "Large cap" segment, and 94 out of a total of 262 companies on Nasdaq OMX, Stockholm.

The external audit of the financial statements of the parent company and the Group, as well as management by the Board of Directors and President, is conducted in accordance with Generally Accepted Auditing Standards in Sweden. The company's auditor-in-charge participates at all meetings of the Audit Committee. The auditor attends at least one Board meeting per year and goes through the audit for the year and discusses the audit with the directors, without the President being present. For information regarding fees to the auditors, see Note 2.

PricewaterhouseCoopers AB

Elected at the 2007 Annual General Meeting for a term up to and including the 2011 Annual General Meeting. Auditorin-charge: Claes Dahlén, authorized public accountant.

			Attendance statistics 2009			Independent
Name of Director	Elected to the Board	Total annual fee, SEK	Board meetings	Compensation Committee	Audit Committee	In relation to the Company and Company management	In relation to the Company's major shareholders
Elected by the General Meeting
Sverker Martin-Löf, Chairman of the Board (1943)	2003, Chairman since 2003	1,350,000	9	5	5	Yes	No, deputy chairman of Industrivärden
Carl Bennet (1951)	2004	400,000	9			Yes	Yes
Anders G Carlberg (1943)	1986	500,000	9		5	Yes	Yes
Olof Faxander, President and CEO (1970)	2006	-	9			No, President and CEO of the Company	No, director of Industrivärden
Marianne Nivert (1940)	2002	400,000	7		1	Yes	Yes
Anders Nyrén (1954)	2003	400,000	9	1		Yes	No, President and CEO of Industrivärden
Matti Sundberg (1942)	2004	475,000	7		4	Yes	Yes
John Tulloch (1947)	2009	400,000	61)			No, former President of IPSCO Division	Yes
Lars Westerberg (1948)	2006	475,000	9	4		Yes	Yes
Employee representatives
Bert Johansson (1952)	1998	-	9	-	-	-	-
Ola Parten (1953)	2005	-	9	-	-	-
Per Scheikl (1968)	2009	-	61)	-	-	-	-
Alternates
Sture Bergvall (1956)	2005	-	9	-	-	-	-
Uno Granbom (1952)	2008	-	9	-	-	-	-
Owe Jansson (1945)	1990	-	3 2)
Bo Jerräng (1947)	2004	-	9	-	-	-	-
1) As from the 2009 AGM.

²⁾ Until the 2009 AGM.

Honorary Chairman: Björn Wahlström since 1991.

Appointed by the Annual General Meeting

	Elected	Share
Member	to the Board	holding*	Experience and current appointments
Sverker Martin-Löf, Chairman (1943)	2003, Chairman	21,563 shares	Licentiate of Technology, dr h.c. Board Chairman: SCA and Skanska.
	since 2003		Deputy-Chairman: Ericsson, Industrivärden and Svenskt Näringsliv. (Confederation of Swedish Enterprise).
			Director: Handelsbanken.
			Formerly President and CEO of SCA.
Carl Bennet (1951)	2004	53,375 shares	MSc. in Economics, Tech dr h.c.
			Board Chairman: Elanders, Getinge, Lifco and University of Gothenburg.
			Director: Holmen and L E Lundbergföretagen.
			Formerly President and CEO of Getinge.
Anders G Carlberg (1943)	1986	6,000 shares	MSc. in Economics.
			Board Chairman: Höganäs.
			Director: Axel Johnson, Mekonomen, Beijer Alma, Sapa, Sweco and Säkl.
			Formerly President and CEO of Nobel Industrier, J.S. Saba and Axel John son International, and Executive Vice President of SSAB.
Olof Faxander, President and CEO (1970)	2006	8,000 shares	MSc. (Materials Science) and BSc. (Business Administration). Chairman of the Council of the Swedish Steel Producers' Association.
			Director: Industrivärden.
			Employed at SSAB since 2006. Formerly Executive Vice President of Outokumpu.
Marianne Nivert (1940)	2002	10,000 shares	BA.
			Director: Beijer Alma and Wallenstam.
			Formerly President and CEO of Telia.
Anders Nyrén (1954)	2003	2,812 shares	MSc. in Economics, MBA.
			President and CEO of Industrivärden.
			Deputy Chairman: Handelsbanken and Sandvik.
			Director: Ericsson, Industrivärden, SCA, Volvo and Ernströmgruppen.
			Chairman of the Board of the Association of Exchange Listed Companies and the Association for Generally Accepted Principles in the Securities Market.
			Formerly Executive Vice President of Skanska.
Matti Sundberg (1942)	2004	10,000 shares	Mining Counselor, MSc. in Business and Economics, econ dr h.c.
			Board Chairman: Chempolis.
			Director: Boliden and Skanska.
			Formerly President and CEO of Valmet/Metso and Ovako Steel.
John Tulloch (1947)	2009	15,000 shares	Bachelor of Agricultural Science, Master of Science.
			Formerly Executive Vice President, Steel & Chief Commercial Officer of IPSCO and Executive Vice President of SSAB & President, Division IPSCO.
Lars Westerberg (1948)	2006	10,000 shares	Civil Engineer and MBA.
			Board Chairman: Autoliv, Husqvarna and Vattenfall.
			Director: Volvo.
			Formerly President and CEO of Autoliv and Gränges.

*Shareholdings include shares owned by closely-related persons.

Appointed by the employees
Bert Johanssonl (1952)	1998	Electrician, SSAB Strip Products.
Ola Parten (1953)	2005	Engineer, SSAB Strip Products.
Per Scheikl (1968)	2009	Mechanic, SSAB Plate.
Alternates:
Sture Bergvall (1956)	2005	Electrician, SSAB Strip Products.
Uno Granbom (1952)	2008	Technician, SSAB Strip Products.
Bo Jerräng (1947)	2004	Personnel, SSAB Plate.

Compensation Committee

Duties

The Compensation Committee's work duties are set forth in the Board's rules of procedure. The Compensation Committee presents proposals to the Board of Directors regarding the President's salary and other employment terms, establishes salaries and employment terms for other members of the Group Executive Committee and establishes limits regarding salary and employment terms for other senior executives. The Compensation Committee assists the Board in its task of drawing up proposals for guidelines for determination of salary and other compensation for the President and other members of the Company's management, to be decided upon at the Annual General Meeting.

Work in 2009

In 2009, the Compensation Committee held five meetings at which minutes were taken. The Compensation Committee comprises Sverker Martin-Löf (Chairman) and Lars Westerberg. The President is co-opted to the Committee but does not participate in discussions concerning his own salary and employment terms.

Audit Committee

Duties

The Audit Committee's work duties are set forth in the Board's rules of procedure. The Chairman of the Audit Committee is responsible for ensuring that the entire Board is kept regularly informed regarding the work of the Committee and, where necessary, shall submit matters to the Board for a decision. The main duties of the Audit Committee are to support the Board in the work of ensuring the quality of the financial reporting. The Committee regularly meets the Company's auditors, evaluates the audit work and establishes guidelines as to which additional services the Company may procure from its auditors. Such additional services must be approved in advance by the Chairman of the Audit Committee in each individual case.

There is an established risk management process in the Company which is based and structured on processes and flows in production. In this process, the Audit Committee reviews and takes into account the risk areas that have been identified (both commercial risks and risks of errors in the financial reporting). Based on the result of the internal and external risk assessment, the Committee regularly analyses the focus and scope of the audit with the Company's internal and external auditors.

Each year, the Audit Committee adopts an internal audit plan which, among other things, is based on the risks that have arisen in the risk management process described above. The audit plan is discussed with the external auditors in order to enhance the efficiency and quality of the regular

audit work. The Committee also analyses and elucidates significant accounting issues which affect the Group and assists the Nomination Committee in producing proposals as regards auditors and their fees.

Work in 2009

In 2009, the Audit Committee developed and improved the presentation of the external financial reporting. The Audit Committee, together with the external auditors, reviewed and analyzed the risk analysis and audit plan prepared by the auditors as a basis for the statutory audit.

The Committee's members were Anders G Carlberg (Chairman), Sverker Martin-Löf and Matti Sundberg. In 2009, the Audit Committee held five meetings at which minutes were taken.

Group Executive Committee

The Group Executive Committee's work and responsibilities

The Group Executive Committee is responsible for the formulation and implementation of the Group's overall strategies and addresses issues such as acquisitions and divestments. These issues, as well as major capital expenditures (in excess of SEK 50 million), are prepared by the Group Executive Committee for decision by the Board of Directors of the parent company.

The President is responsible for the day-to-day management of the Company in accordance with the Board of Directors' instructions and guidelines. As per December 31, 2009, the Group Executive Committee consists, in addition to the President, of the Presidents of SSAB Strip Products, SSAB Plate and SSAB North America, the Chief Financial Officer, the General Counsel, the Executive Vice President, Human Resources, the Chief Technical Officer, and the Executive Vice President, Communications.

The Group Executive Committee holds monthly meetings in order to follow up on the results and financial position of the Group as well as divisions/subsidiaries. Other issues addressed at Group Executive Committee meetings include strategic issues and follow-up on budget and forecasts.

The head of each division and subsidiary is responsible for the relevant income statement and balance sheet. Overall operational control of the divisions takes place through monthly performance reviews and, in Plannja and Tibnor, through each board of directors. In most cases, the President of the parent company is the Chairman of the Board of each of the directly-owned major subsidiaries and these boards also include other members from the Group Executive Committee as well as employee representatives. The boards of the subsidiaries monitor the ongoing operations and adopt strategies and budgets.

Compensation Guidelines

The 2009 Annual General Meeting decided that compensation to the President and other members of the Company's senior management shall comprise fixed salary, possible variable compensation, other benefits and pension. The total compensation package shall be on market terms and competitive in the employment market in which the executive works. Fixed salary and variable compensation shall be related to the executive's responsibilities and powers. The variable compensation shall be based on results as compared with defined and measurable targets and shall be subject to a ceiling in relation to the fixed salary. Variable compensation shall not be included in the basis for computation of pension, except in those cases where so provided in the rules of a general pension plan, e.g. the Swedish ITP plan. For senior executives outside Sweden, all or parts of the variable compensation may be included

in the basis for pension computation due to legislation or competitive practice on the local market. The Board shall be entitled to deviate from the guidelines where special reasons exist in an individual case. For more detailed information regarding current compensation, reference is made to Note 2.

The Company currently has no share or share-price related incentive programs.

Internal control and risk management

The overall objective of the internal control is to ensure, to a reasonable degree, that the Company's operational strategies and targets are followed up and that the owners' investments are protected. In addition, the internal control shall ensure with reasonable certainty that the external financial reporting is reliable and prepared in accordance with generally accepted accounting principles, and shall

Name	Member of Group Executive Committee	Shareholding*	Education and experience
Olof Faxander, President and CEO (1970)	2006	8,000 shares	MSc. (Materials Science) and BSc. (Business Administration). Employed at SSAB since 2006. Formerly Executive Vice President of Outokumpu.
Jonas Bergstrand, General Counsel and Executive Vice President, Legal (1965)	2006	4,242 shares	Master of Law. Employed at SSAB since 2006. Formerly corporate counsel at ABB; OM Gruppen; Ericsson Radio Systems.
David Britten, Executive Vice President, SSAB and President, SSAB North America (1960)	2008	5,000 shares	MSc. (Engineering). Employed at SSAB since 2007. Formerly Executive Vice President, IPSCO.
Martin Lindqvist, Executive Vice President, SSAB and President, SSAB Strip Products (1962)	2001	17,109 shares	BSC (Economics). Employed at SSAB since 1998. Formerly CFO at SSAB, CFO at SSAB Strip Products and Chief Controller at NCC.
Martin Pei, Executive Vice President, Technical Development (1963)	2007	1,000 shares	Ph. D (Technology). Employed at SSAB since 2001. Formerly Head of Research and Development; General Manager, Slab Production, SSAB Plate.
Karl-Gustav Ramström, Executive Vice President SSAB and President, SSAB Plate (1954)	2007	1,000 shares	Master of Engineering, MBA. Employed at SSAB since 2007. Formerly Head of Division, Svenska ABB.
Helena Stålnert, Executive Vice President, Communications (1951)	2007	500 shares	Master program in Journalism. Employed at SSAB since 2007. Formerly Senior Vice President, Communications at Saab, Editor-in-Chief Aktuellt Swedish Television.
Anna Vikström Persson, Executive Vice President, Human Resources (1970)	2006	2,500 shares	Master of Law. Employed at SSAB since 2006. Formerly Head of Human Resources at Ericsson's Swedish operations.
Marco Wirén, Chief Financial Officer and Executive Vice President, Finance (1966)	2008	4,850 shares	Master in Economics. Employed at SSAB since 2007. Formerly Chief Controller at SSAB and CFO at Eltel Networks AB and Vice President, Strategic Plan ning and Group Controller at NCC .

* Shareholdings include shares owned by closely-related persons.

ensure compliance with applicable laws and regulations and the requirements imposed on listed companies.

During the autumn of 2008, SSAB decided to employ a risk manager in SSAB to replace the Company's Risk Committee. The risk manager has the task of developing and implementing a uniform risk management model regarding the Group's risks, primarily with respect to injuries to individuals as well as damage to machinery and the environment, The risk manager is required to identify, evaluate and report these risks, and to compile and update SSAB's risk structure and risk model. The work also involves assessing which preventive measures are to be taken in the internal control in order to reduce and prevent such risks. The risk manager shall also ensure that the Group is sufficiently insured and prepare information which serves as a basis for decisions by the Group Executive Committee, the divisions, and subsidiaries. The risk manager reports directly to the Company's General Counsel. The financial risks will continue to be managed by the Group's treasury function and are thus outside the mandate of the risk manager.

For a description of the organization of the internal control with respect to financial reporting, see below.

Internal audit

SSAB has an established internal audit function reporting directly to the Audit Committee but functionally subordinate to the Chief Financial Officer.

During 2009, the internal audit function carried out and reported on audits in accordance with an audit plan adopted by the Audit Committee. These audits were carried out in accordance with a developed and adopted audit process which is regularly developed in order to optimize

the work method and delivery of reports which generate added value.

For a further description of the work of the internal audit in 2009, see the section entitled "The Board's description of the internal control and risk management regarding financial reporting".

The Board's description of the internal control and risk management regarding financial reporting

In accordance with the Swedish Companies Act and the Swedish Code on Corporate Governance, the Board of Directors of SSAB is responsible for the internal control. This description has been prepared in accordance with section 10.5 of the Swedish Code on Corporate Governance. This description does not constitute a part of the formal annual report documents and has not been reviewed by the Company's auditors.

Framework for internal control

SSAB complies with the internationally established framework, Internal Control – Integrated Framework, which is issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). In accordance with COSO, SSAB's internal control process is based on five components: control environment, risk assessment, control activities, information and communications, as well as follow-up. SSAB's internal control process is structured in order to ensure, to a reasonable degree, the quality and accuracy of the financial reporting. In addition, the process shall ensure that the reporting is prepared in accordance with applicable laws and regulations, reporting standards, as well as requirements imposed on listed companies in

The Group's operational management structure

Sweden. Prerequisites for this being achieved are that a sound control environment is in place, that reliable risk assessments are carried out, that established control activities are in place and that information and communication as well as follow-up function satisfactorily.

CONTrOL ENvIrONMENT

The control environment is characterized by the organization structure, management's work methods and philosophy as well as other roles and responsibilities within the organization. The Audit Committee assists the Board with respect to important accounting issues which the Group applies, and monitors the internal control with respect to fi nancial reporting. In order to maintain an effi cient control environment and sound internal control, the Board of Directors has delegated the practical responsibility to the President who, in turn, has delegated responsibility to other members of the Group Executive Committee as well as to heads of divisions/subsidiaries.

A number of projects aimed at achieving improvements in work methods, routines and documentation are regularly conducted with the aim of ensuring that the Group's internal controls meet the requirements imposed by various stakeholders. In order to ensure the quality of the fi nancial reporting, work takes place regularly on further developing policies and manuals for the entire Group; among other things, an accounting manual (Financial Guidelines) for the Group has been produced and communicated within the Group. The Financial Guidelines also include the fi nance policy. Apart from the Financial Guidelines, the most important overall control documents and policies for the Group are the information policy and ethics policy. In addition, there are control documents and policies, e.g. credit policy and policy for dissemination of fi nancial information.

All divisions and subsidiaries have adopted guidelines with respect to ethical issues. The work on clarifying the

Internal control process

Group's Code of Business Ethics continued during 2009. The Group has also decided to participate in the UN Global Compact commencing January 1, 2010. This represents a stage in further strengthening the communication of the Group's values and philosophy.

rISk ASSESSMENT

SSAB is an organization which is exposed to internal and external risks. To appropriately ensure a sound internal control, the risks which may affect the fi nancial reporting are identifi ed, gauged and measures are taken. The Group's system for identifying, reporting and taking measures as regards risks is integrated in the regular reporting to Group Executive Committee and the Board of Directors and also constitutes the basis for the assessment of risks of error in the fi nancial reporting. SSAB's operations are characterized by processes involving well-established routines and systems. The risk assessment thus takes place largely within these processes. Only general risk assessments take place on a Group level. Responsible persons in the Group identify, monitor and follow-up risks. This creates conditions for well-founded and correct commercial decisions at all levels. Financial risks such as currency, fi nancing and liquidity risks, as well as interest rate and credit risks, are handled primarily by the parent company's treasury function in accordance with the Group's fi nance policy (see Note 27). See also the section entitled "Internal control and risk management" as well as the Report of the Directors, page 22, for an outline of the Group's commercial risk exposure.

CONTrOL ACTIvITIES

The primary purpose of control activities is to prevent and discover at an early stage errors in the fi nancial reporting so that they can be addressed and rectifi ed. Control activities, both manual and automated, take place on both overall and more detailed levels within the Group. Routines and activities have been designed in order to handle and rectify signifi cant risks associated with the fi nancial reporting as identifi ed in the risk analysis. Corrective measures, implementation, documentation and quality assurance take place on a Group level, subsidiary level or process level, depending on the nature and affi liation of the control activity. As with other processes, the relevant head is responsible for the completeness and accuracy of the control activities.

In 2007, the Group commenced work on implementing a joint Group consolidation system. All companies in the Group report in this system commencing 2009. The joint Group system entails an improved internal control over the fi nancial reporting. Work has also continued in the Group concerning automation of more controls and processes,

and limitations on authority in IT systems in accordance with express and ostensible powers.

Control activities are carried out at all levels in the Group. For example, there are established Controller functions which analyze and follow-up deviations and forward reports in the Company. Monitoring by Group Executive Committee takes place, among other things, through regular meetings with heads of divisions and subsidiaries with regard to the operations, their financial position and results, as well as financial and operational key ratios. The Board of Directors analyses, among other things, monthly business reports in which the Group Executive Committee describes the period that has elapsed and comments on the Group's financial position and results. In these ways, important fluctuations and deviations are followed up, a factor which minimizes the risks of errors in the financial reporting.

The work on the closing accounts and the annual report involves processes in which there are additional risks of error in the financial reporting. This work is less repetitive in nature and contains several elements in the nature of an assessment. Important control activities include ensuring the existence of a well-functioning reporting structure in which the divisions/subsidiaries report in accordance with standardized reporting templates, and that important income statement and balance sheet items are specified and commented on.

Information and communication

Externally

SSAB's communications must be correct, open, and prompt and provided simultaneously to all interested groups. All communications must take place in accordance with Nasdaq OMX Stockholm's Rules and Regulations and in accordance with other regulations. The financial information must provide the capital market and stock market, as well as current and future shareholders, with a comprehensive and clear view of the Company, its operations, strategy and financial development.

The Board of Directors approves the Group's annual reports, results for the year, and half-yearly reports, and instructs the CEO to submit quarterly reports in accordance with the Board's rules of procedure. All financial reports and press releases are published on the website (www.ssab. com) simultaneously with publication via Nasdaq OMX Stockholm, and are also notified to the Swedish Financial Supervisory Authority.

Financial information regarding the Group may be provided only by the CEO and CFO, as well as by the Executive Vice President, Communications and Director Investor Relations. The divisions/subsidiaries disseminate financial information regarding their business only after the Group has published corresponding information.

The Company applies silent periods during which the Company does not communicate information regarding

the Company's development. Silent periods are three weeks prior to publication of results for the year, halfyearly reports and quarterly reports.

In the event of a leakage of price sensitive information or upon the occurrence of special events which may affect the valuation of the Company, Nasdaq OMX Stockholm will be notified, after which a press release containing the same information will be distributed. Informational activities are governed by an information policy.

Internally

Each division and subsidiary has a chief financial officer who is responsible for maintaining high quality and precision of delivery with respect to the financial reporting.

The local intranets constitute important communication channels in the Company on which information is published regularly. In 2008, SSAB introduced a new joint Group intranet. Regular joint Group accounting meetings are held with the chief financial officers of the divisions/ subsidiaries. In this way, the divisions/subsidiaries are updated regarding news and changes within, among other things, the accounting area as well as routines and internal controls with respect to the financial reporting. In addition, the parent company regularly communicates changes in the joint Group accounting principles and policies as well as other issues relating to the financial reporting.

Follow-up

The Board's follow-up of the internal control with respect to financial reporting takes place primarily through the Audit Committee, among other things through follow-up of the work and reports of the internal and external auditors.

The internal audit regularly carries out independent and objective audits in accordance with an established audit plan. The audits are carried out in accordance with an adopted audit process which commences with an annual risk analysis in order to create an audit plan. Following a completed audit, the audit is formally concluded with regular reporting back to the Audit Committee regarding observations and measures taken by the Company. The audits are carried out as process audits focusing on SSAB's compliance with its internal rules and regulations and the existence of efficient and suitable processes for risk management, business management and internal controls.

The external auditors each year review selected parts of the internal control within the scope of the statutory audit. The external auditors report the results of their review to the Audit Committee and Group Executive Committee. Important observations are also reported directly to the Board of Directors. In 2009, the external auditors reviewed the internal control in selected key processes and reported thereon to the Audit Committee and Group Executive Committee.

Further information regarding corporate governance in SSAB is available on www.ssab.com, including the following information:

• Routines regarding the Annual General Meeting (when the Annual General Meeting is to be held, notice to attend and registration procedure, as well as which important decisions are to be taken at the Annual General Meeting)
• Information from SSAB's previous Annual General Meetings (commencing 2005), including notices, minutes, addresses by the President and communiqués
• The by-laws
• Corporate governance reports from previous years
• Information regarding the Nomination Committee

Directors appointed by the Annual General Meeting

Carl Bennet (1951) Elected 2004. Shareholding 53,375 shares. MSc. in Economics, Tech dr h.c. Board Chairman: Elanders, Getinge, Lifco and University of Gothenburg. Director: Holmen and L E Lundbergföretagen Formerly President and CEO of Getinge.

Anders Nyrén (1954) Elected 2003.

Shareholding 2,812 shares. MSc. in Economics, MBA. President and CEO of Industrivärden. Deputy Board Chairman: Handelsbanken and Sandvik. Director: Ericsson, Industrivärden, SCA, Volvo och Ernström-gruppen, Chairman of the Board of the Association of Exchange Listed Companies and Association for Generally Accepted Principles in the Securities Market. Formerly Executive Vice President of Skanska.

Lars Westerberg (1948) Elected 2006. Shareholding 10,000 shares. Civil Engineer,MBA. Board Chairman: Autoliv, Husqvarna and Vattenfall. Director: Volvo. Formerly President and CEO of Autoliv and Gränges.

Anders G Carlberg (1943) Elected 1986.

Shareholding 6,000 shares. MSc. in Economics. Board Chairman: Höganäs. Director: Axel Johnson, Mekonomen, Beijer Alma, Sapa, Sweco and SäkI. Formerly President and CEO of Nobel Industrier, J.S. Saba and Axel Johnson International, as well as Executive Vice President of SSAB.

Matti Sundberg (1942) Elected 2004. Shareholding 10,000 shares. Mining Counsellor, MSc. in Business and Economics; Econ dr h.c. Board Chairman: Chempolis. Director: Boliden and Skanska. Formerly President and CEO of Valmet/ Metso and Ovako Steel.

Sverker Martin-Löf (1943) Chairman of the Board. Elected 2003, chairman since 2003. Shareholding 21,563 shares. Licentiate of Technology, dr h.c. Board Chairman: SCA and Skanska. Board Deputy Chairman: Ericsson, Industrivärden and Svenskt Näringsliv (Confederation of Swedish Enterprise). Director: Handelsbanken. Formerly President and CEO of SCA.

Marianne Nivert (1940) Elected 2002. Shareholding 10,000 shares. BA. Director: Beijer Alma and Wallenstam. Formerly President and CEO of Telia.

John Tulloch (1947) Elected 2009.

Shareholding 15,000 shares. Bachelor of Agricultural Science, Master of Science. Formerly Executive Vice President, Steel & Chief Commercial Officer of IPSCO and Executive Vice President of SSAB & President Division IPSCO.

Olof Faxander (1970) Elected 2006. Shareholding 8,000 shares. President and CEO. MSc. (Material Science) and BSc. (Business Administration). Employed at SSAB since 2006. Chairman of the Council of Jernkontoret (Swedish Steel Producers' Association). Director: Industrivärden. Formerly Executive Vice President of Outokumpu.

Directors appointed by the employees

Bert Johansson (1952) Employee representative. Elected 1998. Electrician, SSAB Strip Products.

Ola Parten (1953) Employee representative. Elected 2005. Engineer, SSAB Strip Products.

Per Scheikl (1968) Employee representative. Elected 2009. Mechanic, SSAB Plate.

Sture Bergvall (1956) Employee representative. Alternate member. Elected 2005. Electrician, SSAB Strip Products.

Uno Granbom (1952) Employee representative. Alternate member. Elected 2008. Technician, SSAB Strip Products.

Bo Jerräng (1947) Employee representative. Alternate member. Elected 2004. Personnel, SSAB Plate.

Group Executive Committee

Olof Faxander (1970), President and CEO

Member of the Group Executive Committee since 2006. Shareholding 8,000 shares. Education: Master of Science in Material Science from the Royal Institute of Technology, Stockholm; Bachelor of Social Science (Business Administration), Stockholm University. Background: Employed at SSAB since 2006. Previously, Executive Vice President, Outokumpu.

Martin Lindqvist (1962), Executive Vice President, SSAB and President, SSAB Strip Products

Member of the Group Executive Committee since 2001. Shareholding 17,109 shares.

Education: Bachelor of Science in Economics, Uppsala University.

Background: Employed at SSAB since 1998. Previously, among other positions, CFO at SSAB; CFO at SSAB Strip Products; Chief Controller at NCC.

Karl Gustav Ramström (1954), Executive Vice President, SSAB and President, SSAB Plate

Member of the Group Executive Committee since 2007. Shareholding 1,000 shares. Education: Master of Engineering in Technical physics from Uppsala University;Master of Business Administration in International Marketing, also from Uppsala University. Background: Employed at SSAB since 2007. Previously, Head of division within Process Automation at ABB Sweden.

David Britten (1960), Executive Vice President, SSAB and President, SSAB North America

Member of the Group Executive Committee since 2008. Shareholding 5,000 shares. Education: Master of Science Degree from Queen's University at Kingston in Mechanical Engineering. Background: Employed at IPSCO Inc since 1985. Previously, Senior Vice President of Steel within the IPSCO Division.

David Britten Karl Gustav Ramström Martin Lindqvist Anna Vikström Persson Olof Faxander Helena Stålnert Marco Wirén Martin Pei Jonas Bergstrand

Jonas Bergstrand (1965), General Counsel and Executive Vice President, Legal

Member of the Group Executive Committee since 2006. Shareholding 4,242 shares. Education: Master of Law, Uppsala University. Background: Employed at SSAB since 2006. Previously, Corporate Counsel at ABB; OM Gruppen; Ericsson Radio Systems.

Martin Pei (1963), Executive Vice President, Technical Development

Member of the Group Executive Committee since 2007. Shareholding 1,000 shares. Education: Ph. D from the Royal Institute of Technology, Stockholm.

Background: Employed at SSAB since 2001. Previously, Manager R & D Department, and General Manager, Slab Production within SSAB Plate.

Helena Stålnert (1951), Executive Vice President, Communications

Member of the Group Executive Committee since 2007. Shareholding 500 shares.

Education: Master program in Journalism, Stockholm Background: Employed at SSAB since 2007. Previously, Senior Vice President, Communications at Saab; Editor-in-Chief Aktuellt Swedish Television.

Anna Vikström Persson (1970), Executive Vice President, Human Resources

Member of the Group Executive Committee since 2006. Shareholding 2,500 shares. Education: Master of Law, Lund University. Background: Employed at SSAB since 2006. Previously, Head of Human Resources at Ericsson's Swedish operations.

Marco Wirén (1966), Chief Financial Officer and Executive Vice President, Finance

Member of the Group Executive Committee since 2008. Shareholding 4,850 shares. Education: Master in Economics, Uppsala University. Background: Employed at SSAB since 2007. Previously, Chief Controller at SSAB; CFO at Eltel Networks; and Vice President Strategic Planning and Group Controller at NCC.

Shareholdings include shareholdings of closelyrelated persons.

David Britten Karl Gustav Ramström Martin Lindqvist Anna Vikström Persson Olof Faxander Helena Stålnert Marco Wirén Martin Pei Jonas Bergstrand

Annual General Meeting, Nomination Committee, Calendar

Annual General Meeting

The Annual General Meeting will be held in Stockholm at 1:00pm on Friday, March 26, 2010. To be entitled to participate at the Annual General Meeting, shareholders must be included in the share register that is printed out by Euroclear Sweden AB on Saturday, March 20, 2010 and must have registered their intention to participate at the meeting not later than 12 noon on Monday, March 22, 2010.

Nominee-registered shares

Shareholders whose shares are registered in the name of a nominee must register their shares in their own names in order to be entitled to participate at the annual general meeting. Temporary owner-registration (voting registration) should be effected in due time prior to March 20, 2010.

Registration

Registration in respect of participation at the annual general meeting takes place via the Company's website, www.ssab.com or by telephone on +46 8-45 45 760. The name, personal identification number (company registration number), address and telephone number of the shareholder must be provided in the notice of registration. Notices must be received by SSAB not later than 12 noon on Monday, March 22, 2010, at which time the registration period will expire.

Proxies

Powers of attorney in original and, as regards legal entities, certificates of registration, should be submitted in due time prior to the annual general meeting to: SSAB AB, Årsstämman, Box 70, 101 21 Stockholm, Sweden

Nomination committee

Carl-Olof By, Industrivärden, Chairman Peter Rydell, Swedbank Robur Funds Lars-Eric Aaro, LKAB John Hernander, AMF Sverker Martin-Löf, Chairman of the Board

The Nomination Committee presents, among other things, proposals to the annual general meeting concerning the election of the Board of Directors, fees for the Board of directors, and election of auditors.

Dividends

March 31, 2010, is proposed as the record date for the right to receive dividends. It is thereupon estimated that payment of dividends might be effected through Euroclear Sweden AB on April 7, 2010. The Board of Directors and the President propose that the annual general meeting resolve upon the payment of a dividend for 2009 in the amount of SEK 1.00 per share.

Financial information

SSAB will provide the following information with respect to the 2010 financial year: Report for the first quarter, May 4, 2010. Report for the first six months, July 22, 2010. Report for the third quarter, October 28, 2010. Results for 2010, February 11, 2011. Annual report, March 2011.

Steel Talk ABC – a glossary

A After-treatment – Heat treatment, cooling, etc., in order to endow the steel with certain qualities; also galvanizing, organic coating, and cutting to size

Alloy – A substance composed of two or more metals. Alloy Steel – An iron-based mixture is considered to be an alloy steel when manganese is greater than 1.65%, silicon over 0.5%, copper above 0.6%, or other minimum quantities of alloying elements such as chromium, nickel, molybdenum, or tungsten are present. An enormous variety of distinct properties can be created for the steel by substituting these elements in the recipe.

Alloying material – Material that is added to the molten metal during the steelmaking process and which combines with iron or other metals and changes the metal's qualities Annealing – A thermal cycle involving heating to, and holding at a suitable temperature and then cooling at a suitable rate, for such purposes as reducing hardness, improving machinability, facilitating cold working, producing a desired microstructure, or obtaining desired mechanical or other properties

Application – Area of use; a product which uses a certain grade of steel.

Applications engineer – Trained specialists in the qualities of the material and its areas of use; problem solvers and developers

B Base industry – Industry involving the extraction and processing of raw materials; fundamental for the Swedish economy and other economies around the globe Billet – A semi-finished steel form that is used for "long" products: bars, channels or other structural shapes. A billet is different from a slab because of its outer dimensions; billets are normally 50 to 180 mm square (2 to 7"sq), while slabs are 760 to 3,200 mm (30 to 126") wide and 50 to 250 mm (2 to 10") thick. Both shapes are generally continually cast, but they may differ greatly in their chemistry. Blast Furnace – A shaft furnace lined with heat-resistant (refractory) bricks, used by integrated steel mills to reduce and melt iron ore to iron. Its name comes from the "blast" of hot air and gases forced up through the iron ore, coke, and limestone that load the furnace.

Blast air Heated air which is blown into the blast furnace under high pressure
C Carbon dioxide CO2, colorless gas, soluble in water to form carbonic acid; included in carbonated drinks and comprises 0.03% of the atmosphere and is identified as a greenhouse gas

Carbon monoxide – Colorless and odorless energy-rich gas which burns with a blue flame; noxious. Upon combustion, carbon dioxide is formed.

Charging – The act of loading material into a vessel. For example, iron ore, coke, and limestone are charged into a blast furnace; a basic oxygen furnace is charged with scrap and hot metal, and an electric arc furnace is charged with steel scrap and fluxes.

Coil box – Rolling machinery; box for coiled steel employed to promote temperature uniformity during the hot rolling process

Coiler – Mechanical part which captures plate, sheet or strip from the rolling mill and coils it

Coke – Dry distilled coal, the basic fuel consumed in blast furnaces in the smelting of iron ore. Approx. 450 kg (1,000 pounds)) of coke are needed to process a ton of pig iron, an amount which represents more than 50% of

an integrated steel mill's total energy use. Cold rolling – Metalworking process in which the thickness of a sheet, strip or plate is reduced by rolling at ambient temperature

Continuous casting – A process by which molten metal is solidified into a semi-finished billet, bloom, or slab for subsequent rolling.

Cowper stoves – Heating apparatus; ceramic towers used for pre-heating blast air

Crude steel – Steel in its solidified state directly after casting. This is then further processed by rolling or other treatments, which can change its properties. Cutting station – Place for cutting the steel strand into

slabs D Decarburization – In oxygen-blown steelmaking processes, the reduction of the hot metal's carbon content during refining by the use of gaseous oxygen

Desulphurization – Method for removing sulphur from the hot metal; for example, through the addition of calcium carbide or magnesium oxide

Dry distillation process – Combustion without entry of oxygen Dual-phase steel (DP) – High-strength steel that has a one soft (ferrite) and one hard (martensite) microstruc-

ture which allows for desired combination of good formability with high strength E Electric arc furnace (EAF) – Steel-making furnace where scrap is generally 100% of the charge. Heat is supplied from electricity that arcs from the graphite electrodes
to the metal bath. Furnaces may be either an alternating current (AC) or direct current (DC). DC units consume less energy and fewer electrodes, but they are more expensive. F Fatigue – The progressive and localized structural damage that occurs when a material is subjected to cyclic

loading at stresses considerably below the ultimate tensile strength Four-high rolling mill – Mechanical equipment; com-

prises four cylindrical rollers with extremely high pressure which press slabs into plate by repeatedly rolling backwards and forwards

H Hardening – Process that increases the hardness of steel, i.e. the degree to which steel will resist cutting, abrasion, penetration, bending, and stretching Hearth – Lower part of the blast furnace; area for col-

lection of molten hot metal Hematite –Fe2O3 , non-magnetic iron ore or blood ore High-strength steel – Strong steel with high resistance to tensile stress before fatigue and breaking may occur. A very strong steel that is able to withstand high loads before failure.

Hot dip galvanization – Method for adding a rust protection surface layer. For example, adding zinc and aluminum in hot molten form on the steel. The opposite to zinc-plating, an electrochemical method of applying a coat of molten zinc to the surface of steel for the purpose of enhancing corrosion resistance.

Hot metal – The name for the molten iron produced in a blast furnace. It proceeds to the basic oxygen furnace in molten form or is cast as pig iron.

Hot strip rolling mill –A mill for rolling heated slabs through a series of rolling stands to produce sheet steel in coil form

Hot rolling – A metalworking process in which slabs are heated to high temperatures and then deformed between rollers to form thinner cross-sections

I Injection coal – Coal powder which is injected into the blast furnace under high pressure without being converted to coke

Iron ore pellets – Iron ore particles rolled into small balls and compacted by heating

L Ladle – A "bucket" lined with refractory (heat resistant) bricks, used to transport molten steel from process to process in a steel plant

Ladle change – Switch from an empty to a full container of steel

Ladle Metallurgy Furnace (LMF) – An intermediate steel processing unit that further refines the chemistry and temperature of molten steel while it is still in the ladle. The ladle metallurgy step comes after the steel is melted and refined in the electric arc or basic oxygen furnace, but before the steel is sent to the continuous caster. Ladle treatment method – Different methods for ladle

metallurgy LD converter – Oxygen steelmaking process employing a converter (vessel) and top blowing oxygen lance to refine the blast furnace hot metal into crude steel. Named for the Austrian towns of Linz and Donawitz, L-D. Often referred to as Basic Oxygen Furnace (BOF) in North America. Low alloyed steel grades – A steel, other than a carbon steel, that requires the minimum content for each specified alloying element to be lower than the applicable limit for the definition for alloy steel

M Magnetite – Fe3 O4, magnetic iron ore

Martensitic steel – Steel with a very hard form of steel crystalline structure called martensite that is formed by displacive transformation. The martensite is formed by rapid cooling (quenching) of austenite which traps carbon atoms that do not have time to diffuse out of the crystal structure

Material design – Control of the steel chemical composition and processing to achieve a microstructure that offers a combination of properties desirable for an intended product or application

Metallurgy – The science and technology of metals – a broad field that includes, but is not limited to, the study of internal structures and properties of metals, and the effects on them of various processing methods

Mold – Casting mold O Ore car – Railcar for transportation of lump ore, iron ore

concentrate or pellets Oxide scale – An oxide of iron which forms on the surface of hot rolled steel

Oxygen lance – Pipe-shaped lance for treatment using oxygen

P Pair of rollers – A pair of cylindrical rollers for rolling steel to thinner dimensions under high pressure Particulates filter – Purification plant for gas or air in

which particulates are separated and condensed for recycling Phases – Steel has different crystal structures at various

temperatures and the phase(s) present depend on heat treatment, alloy quantity, hardening, quenching, etc. Best known are the martensite (quick hardening) phase, ferrite phase (pure iron) austenite (non-magnetic) phase and bainite phase.

Pickling line – A processing line which chemically removes oxide or scale from the steel surface to obtain a clean surface for subsequent processing

Plate – Flat rolled steel product which is typically classified as over 1,200 mm (48") in width and 4.5 mm (0.180") in thickness

Process gas – Gas from metallurgical processes; often energy rich

Process methods – Methods for extracting raw materials and manufacturing products in a continuous cycle without disruption

Process water – Water from cooling or treatment in the processes. Always undergoes purification and can often be re-circulated

Q Quenched steels – Hardened or toughened steel. SSAB's quenched steels are also high strength

R Recycling – Return of used products or byproducts to enter a new cycle of production and use Reduction agents – Carbon or hydrogen used to remove

oxygen from iron ore to produce iron Rolling mill – Any of the mills in which metal undergoes a rolling process. For plate, sheet and strip, these include the slabbing mill, hot rolling mills, cold rolling mills, and temper mills.. Any operating unit that reduces gauge by application of loads through revolving cylindrical rolls; operation can be hot or cold. The elevated temperature rolling mill is the Hot Mill and is capable of reducing the gauge of a slab 92-99%.

Roll pass – Number of times a billet or slab passes through a pair of rollers

Rougher – Two rough cylindrical rollers which press the steel to thinner dimensions prior to hot rolling Runner – Ceramic-lined spout for controlling molten, hot

metal. S Scrap – Ferrous (iron-containing) material that generally is re-melted and re-cast into new steel. Integrated steel mills use scrap for up to 25% of their basic oxygen furnace charge; electric-arc furnace based steel mills may use scrap for 100% of the furnace charge.

SEN – Submerged entry nozzle, a ceramic pipe which protects the steel from exposure to air, in conjunction with casting

Sintering – A process that combines iron-bearing particles, once recovered from environmental control filters, into small pellets. Previously, these materials were too fine to withstand the air currents of the smelting process and were thrown away. The iron is now conserved because the chunks can be charged into the blast furnace.

Skirt – Pipe around the blast furnace for the supply and allocation of hot blast air, also known as a bustle pipe Slab furnace – Furnace for heating steel slabs to rolling temperatures

Slabs – The most common type of semi-finished steel. Traditional slabs can measure 150 to 400 mm thick (6 to 15.7") and up to 3,200 mm (126") wide, while the output of the recently developed "thin-slab" casters is approximately 40 to 70 mm (1.6 to 2.7 ") thick. Subsequent to casting, slabs are sent to the hot-strip mill or plate mill to be rolled into coiled sheet and plate products.

Slag – Solution of mainly liquid oxides. Flux such as limestone may be added to foster the congregation of undesired elements into a slag. Because slag is lighter than

iron, it will float on top of the pool, where it can be skimmed. Smelting reduction process – Process for smelting and removing unwanted substances from, for example, metal raw materials

Steckel mill – A four-high reversing rolling mill, the Steckel mill allows the rolling of a large slab by providing heated coil furnaces or boxes on both sides of the mill to store the increased length produced during rolling. These coil furnaces allow for additional heat retention and thermal consistency in the rolled piece, which in turn produces improved uniformity throughout the rolled product. Steel – Alloy of iron and carbon with a carbon content of less than 1.7%

Steel bath – The hot, molten steel in a container Steel shuttle – Train system for transportation of steel slabs between Luleå, Borlänge and Oxelösund production facilities

Strand – The continuous cast slab within the continuous casting machine prior to cutting into individual slabs Strength – Properties related to the ability of steel to oppose applied forces. Forms of strength include withstanding imposed loads without a permanent change in

shape or structure and resistance to stretching. Structure – The steel's molecular form following different treatment methods; crystalline structure. May also refer to the size, shape, and arrangement of phases within the steel. Strip – Thin, flat steel that resembles hot-rolled sheet, but it is normally narrower (up to 300 mm, or 12" wide) and produced to more closely controlled thicknesses. Strip also may be cut from steel sheet by a slitting machine. Surface treatment – Cleaning, polishing or coating of surfaces; for example, through galvanization or organic coating

T Temper Mill – A type of cold-rolling mill, usually a fourhigh, single stand mill, used to provide a relatively light cold rolling reduction to hot rolled, cold rolled, or coated flat steel products to improve flatness, minimize surface disturbances such as coil breaks, and to alter mechanical properties

Tempering – Heating to 200-500°C degrees in order to make steel tougher and less brittle Tensile strength – Ability to withstand tensile stress. (See

Strength.) Torpedo – Cylinder-shaped brick-lined railway car used for transporting hot, molten metal

Tundish An intermediate container in the casting process to facilitate ladle change without disruption in the process V Vacuum Degassing – An advanced steel refining facility
that removes oxygen, hydrogen and nitrogen under low pressures (in a vacuum) to produce high quality steel for demanding applications. Normally performed in the ladle, the removal of dissolved gases results in cleaner, higher quality, more pure steel (see Ladle Metallurgy).
W Wear resistance Ability to resist the erosion of material from the surface as a result of mechanical action, e.g. abrasion and friction

Addresses

Group offi ces:

SSAB AB

Box 70 101 21 Stockholm, Sweden Telephone +46 8-45 45 700 Fax +46 8-45 45 725 Visiting address: Klarabergsviadukten 70, D6 www.ssab.com

Divisions / subsidiaries:

SSAB Plate

613 80 Oxelösund, Sweden Telephone +46 155-25 40 00 Fax +46 155-25 40 73

SSAB Strip Products

781 84 Borlänge, Sweden Telephone +46 243-700 00 Fax +46 243-720 00

SSAB North America

650 Warrenville Road, Suite 500 Lisle, Illinois 60532, USA Telephone +1 630-810 4800 Fax +1 630-810 4600

Tibnor

Box 600 169 26 Solna, Sweden Telephone +46 10-484 00 00 Fax +46 10-484 00 76 www.tibnor.se

Plannja

971 88 Luleå, Sweden Telephone +46 10-516 10 00 Fax +46 10-516 11 82 www.plannja.com

Mobile

Montpelier

Production: Hallvarsson & Halvarsson. Print: Elanders in Falköping. Paper: Arctic Matt.

AI assistant

SSAB — Annual Report 2009

2975_10-k_2010-03-02_3670f57c-f757-4340-b199-495e695cf0cc.pdf

Årsredovisning 2008 Annual report 2009

SSAB in 90 seconds

Significant events during 2009 Table of contents

The operations

Profit

Prompt response lessened the impact of the crisis

SSAB advances its positions

Increasing the share of niche products

Securing strong positions on the domestic markets

Strengthening presence in Asia

New organization – a strategic decision

Financial targets

Profitability

Capital structure

Dividends

Net debt/equity ratio

ROCE – return on capital employed

Niche products (deliveries)

SSAB's offering strengthens the customer

Leading product quality

Strong brands

Expertise in developing new applications

Platform for SSAB's customer offering

Strong sales organization

Close cooperation to realize steel's potential

Swedish Steel Prize 2009

Energy-saving steel in the Swedish Pavilion

SSAB's in-house development projects

Report of the Directors

Table of contents

Reduced global demand offset by continued strong growth in China

Favorable recovery driven by China

Fluctuations in raw materials prices

A degree of recovery in the market

Continued uncertain market trend

Crude steel production per market (million tonnes)

Sales and profit

Sales

Sales per market area

Sales in the largest markets

External sales per business area

Cost reduction program

Cost trends

Energy

The Group's cost structure

Profit after financial items

Profit

Tax

Result and earnings per share

Return on capital employed/equity

Equity

Test of impairment for goodwill

Divestment of the North American tubular business

Currency flows

Capital expenditures and cash flow

Capital expenditures

Financing and liquidity

Cash flow from current operations

The divisions' / subsidiaries' sales, profits and return on capital employed

Dividend

Accounts receivable

Inventories

Investments and depreciation/ amortization

Research and development

Compensation to senior executives

Proposal by the Board for 2010

Variable salary 2009

Temporary incentive program

Compensation and benefits

Risk and sensitivity analysis

Significant risks and uncertainty factors

Risks and uncertainty in the Group's operations

Risks and uncertainty in the steel industry

External risks and uncertainty

Sensitivity analysis

Outlook for 2010

SSAB Strip Products

SSAB Annual Report 2009