SSAB — Interim / Quarterly Report 2007

Jul 17, 2007

Report for the Second Quarter of 2007

• Sales during the first half of the year increased by 14% to SEK 17,879 (15,718) million. Profit after financial items increased by 20% to SEK 4,011 (3,334) million. Profit after tax amounted to SEK 2,880 (2,339) million, entailing earnings per share of SEK 10.88 (8.47).
• Sales during the second quarter amounted to SEK 9,099 (8,096) million and profit after financial items to SEK 1,864 (1,776) million.
• Return on capital employed during the most recent twelve-month period was 38% and return on equity was 31%.
• Deliveries of the core niche products, quenched steels and advanced high-strength sheet, increased during the second quarter by 7% compared with last year and thus far this year have increased by 12%. In total, the core niche products accounted for 43% of deliveries from the steel operations.
• Operational cash flow for the first half of the year was SEK 1,880 (2,216) million.
• On May 3, a public tender offer of just over USD 7.5 billion in cash was made for all of the shares in the North American steel company, IPSCO. The purchase was approved at a special meeting of IPSCO's shareholders on July 16. The takeover is expected to be completed on or about July 18, from which date IPSCO will be included in the SSAB Group.
• At an extraordinary general meeting of SSAB held on July 10, the Board of Directors was granted authorization to carry out a new issue of approx. SEK 10,000 million with pre-emption rights for existing shareholders, conditional on IPSCO's shareholders approving SSAB's acquisition of the company.

	2007	2006	2007	2006	July 06 -	2006
SEK millions	Q 2	Q 2	Q 1-2	Q 1-2	June 07	Full year
Sales	9,099	8,096	17,879	15,718	33,215	31,054
Operating profit	1,849	1,781	3,994	3,338	6,710	6,054
Of which operating profit per business area
- Sheet	879	877	1,902	1,539	3,219	2,856
- Plate	594	658	1,377	1,410	2,201	2,234
- Plannja	50	43	53	29	138	114
- Tibnor	291	186	558	327	1,007	776
- Other	35	17	104	33	145	74
	1,849	1,781	3,994	3,338	6,710	6,054
Financial items	15	-5	17	-4	19	-2
Profit after financial items	1,864	1,776	4,011	3,334	6,729	6,052
Tax	-528	-550	-1131	-995	-1,847	-1,711
Profit after tax	1,336	1,226	2,880	2,339	4,882	4,341

Consolidated Income Statement

Key Ratios, the Group	2007	2006	2007	2006	July 06 -	2006
	Q 2	Q 2	Q 1-2	Q 1-2	June 07	Full year
Return on capital employed before tax (%)	-	-	-	-	38	36
Return on equity after tax (%)	-	-	-	-	31	29
Earnings per share (SEK)	5.03	4.45	10.88	8.47	18.40	16.02
Net debt/equity ratio (%)	0	11	0	11	0	-1

The Market

According to data from Eurofer, demand for steel in the EU increased by over 8% during the first half of 2007 compared with the same period of last year. This rate of growth is significantly stronger than the forecast for the full year published by the International Iron and Steel Institute (IISI) in February.

It is believed that 2007 as a whole will be yet another good year for the steel industry with an increase in global demand of 6%, according to IISI.

The market for the Group's core niche products, advanced high-strength sheet (EHS/UHS sheet) and quenched steels within plate has continued to perform strongly during the second quarter. The market for quenched steels is driven, among other things, by the strong infrastructure and mining sectors. Demand still outstrips our ability to deliver since the customers, in turn, also have very strong order books. The market for advanced high-strength sheet is driven, among other things, by the strong export economy within the transportation sector.

Tibnor continues to benefit from a favorable business climate for the Nordic engineering and construction industries and Plannja benefits from the strong Nordic construction market.

The Group

Sales increased by 14% to SEK 17,879 (15,718) million. Higher prices and an improved mix accounted for 13 percentage points and increased volumes for one percentage point.

Operating profit for the second quarter was SEK 1,849 (1,781) million. The result for the second quarter of last year included a positive adjustment of approx. SEK 150 million regarding excessively high provisional iron ore costs reported in the first quarter.

Operating profit for the first half of the year increased by SEK 656 million to SEK 3,994 (3,338) million.

The profit analysis is set forth in the table below.

Change in operating profit between the first half of 2007 and
2006 (SEK millions)
Sheet Division
- Increased share of advanced high-strength	+100
sheet
- Improved margins	+490
Plate Division
- Increased share of quenched steels	+55
- Improved margins	+20
Tibnor
- Improved margins (incl. inventory gains)	+80
- Higher volumes/improved mix	+175
Plannja
- Improved margins (incl. inventory gains)	+20
- Higher volumes/improved mix	+50
Fixed costs	-345
Other	+11
Change in operating profit	+656

Profit for the first half of the year has been affected negatively in the amount of SEK 120 million with respect to the ongoing skills replacement program, of which SEK 110 million during the second quarter.

Effects relating to the accident that occurred at AGA's oxygen plant during the fourth quarter of last year have negatively impacted on profit for the first quarter in the amount of approx. SEK 100 million. A portion of the costs for the accident may be covered by insurance.

During the second quarter, the major expansion investments that are taking place in the steel operations have affected both production and deliveries resulting in a negative affect in profit of approx. SEK 150 million compared with the second quarter last year.

Financial items amounted to SEK +17 (-4) million. Profit after financial items thereby amounted to SEK 4,011 (3,334) million. Earnings per share increased to SEK 10.88 (8.47).

Return on Capital and Equity

Return on capital employed before tax for the most recent twelve-month period was 38% and return on equity after tax was 31%. For the full year of 2006, the corresponding figures were 36% and 29%.

Capital Expenditures

During the first half of the year, decisions were taken regarding new investments totaling SEK 1,072 (1,517) million, of which SEK 294 (1,260) million related to expansion investments. Of the expansion investments, SEK 84 million comprised Plannja's acquisition of the steel and ventilation supplier, Steinwalls Plåt AB, which since April has been included in the Plannja group, and investment in new wrapping and packing lines in the Sheet Division for SEK 135 million. Capital expenditure payments amounted to SEK 1,264 (639) million, of which SEK 892 (197) million related to expansion investments and acquisitions.

Financing and Liquidity

Operational cash flow from consists of cash flow after financial items and paid tax, changes in working capital as well as regular maintenance investments. During the first half of the year, operational cash flow amounted to SEK 1,880 (2,216) million.

Cash flow per Business Area
	2007	2006	2007	2006	July 06 -	2006
SEK millions	Q 2	Q 2	Q 1-2	Q 1-2	June 07	Full year
Sheet	656	532	1,001	1,148	1,849	1,996
Plate	687	625	1,119	1,060	1,501	1,442
Tibnor	-107	72	-94	110	115	319
Plannja	-87	-31	-141	-31	40	150
Other	-52	-13	-5	-71	117	51
Operational cash flow	1,097	1,185	1,880	2,216	3,622	3,958
Acquisition of companies and operations 1)	-331	0	-331	0	-331	0
Expansion investments	-297	-120	-561	-197	-878	-514
Disposals, companies and operations 2)	70	0	96	1	445	350
Cash flow before dividends and financing	539	1,065	1,084	2,020	2,858	3,794

1) Steinwalls Plåt AB was acquired in April 2007. The second quarter of 2007 also includes acquisition costs of SEK 246 million in respect of IPSCO.

2) Sold operations means, for 2006, the purchase price received for Cogent of SEK 248 million and, for 2006 and 2007, a number of property companies within Tibnor.

Cash flow from the ongoing operations differs from a presentation in accordance with IFRS insofar as the cash flow is affected by current tax costs, i.e. the tax which is to be paid. The difference between this tax and the tax which has actually been paid is thereby regarded as a financial debt/claim. In a presentation in accordance with IFRS, on the other hand, the cash flow from the ongoing operations is affected by the tax actually paid during the year.

Within the Sheet Division, cash flow declined as a consequence of an increase in working capital tied-up in, primarily, accounts receivable, while the cash flow in Tibnor and Plannja declined largely due to an increase in inventory values.

Net debt at the end of the first half of the year amounted to SEK -13 (1,528) million, equal to a net debt/equity ratio of 0 (11)%. Liquid assets amounted to SEK 1,613 (531) million and total borrowing to SEK 1,226 (1,717) million.

Business Areas

The steel operations jointly

Sheet prices in local currencies increased during the second quarter by approx. 2% compared with the first quarter. For heavy plate, prices increased by 3%, primarily due to an improved mix. All in all, prices in Swedish kronor thereby increased by 2% compared with the first quarter.

Deliveries of sheet and plate from the steel operations during the second quarter amounted to 807 (841) thousand tonnes and, during the first half of the year, to 1,637 (1,656) thousand tonnes.

The core niche products, quenched steels and advanced high-strength sheet, accounted for 43 (38)% of the sheet and plate deliveries from the steel operations.

Sheet and plate production during the second quarter amounted to 832 (891) thousand tonnes, which was 7% lower than during the second quarter of last year. In total, sheet and plate production during the first half of the year amounted to 1,708 (1,757) thousand tonnes.

Production and deliveries in the steel operations during the quarter have been negatively affected by the ongoing investment projects and by a number of smaller disruptions in production.

New annual agreements for iron ore and coal have been entered into during the first quarter entailing a price increase in dollar terms of 7% for iron ore and a reduction of 13% for coal. The deliveries have been hedged and, as a consequence of a weaker dollar compared with last year, iron ore prices in Swedish kronor increased by 2%. For coal, where the last freight agreements were entered into during the second quarter, at substantially increased costs, the net effect in Swedish kronor was a price reduction of just over 10%. Iron ore agreements enter into force at the beginning of the year and thus the full impact on costs has largely been felt. The coal agreements enter into force on April 1; however, due to current stocks, the impact on earnings will not be felt until the beginning of the third quarter.

Sheet Division

The sheet agreements which were renegotiated pending the second quarter generated an average price increase in local currencies of approx. 2%.

Sales increased by 11% compared with the second quarter of last year and amounted to SEK 4,563 (4,096) million. In total, sales for the first half of the year were SEK 8952 (7,831) million.

Operating profit for the quarter amounted to 879 (877) million. In total for the first half of the year, operating profit amounted to SEK 1,902 (1,539) million.

Deliveries of advanced high-strength sheet during the quarter amounted to 213 (195) thousand tonnes, which was 9% higher than during the second quarter of last year. The increase is primarily attributable to the heavy transport sector in the United States and Asia. In total, deliveries of advanced high-strength sheet for the first half of the year amounted to 425 (365) thousand tonnes, constituting 32 (28)% of total sheet deliveries.

Crude steel production was at a stable, high level during the second quarter, whereas sheet production in the hot strip rolling mill was affected by a number of smaller disruptions. Crude steel production amounted to 581 (554) thousand tonnes and sheet production to 686 (733) thousand tonnes. In total, crude steel production for the first half of the year amounted to 1,161 (1,117) thousand tonnes and sheet production to 1,413 (1,443) thousand tonnes.

During the quarter, decisions were taken regarding new capital expenditures totaling SEK 619 (208) million. SEK 135 million of the decided upon investments relate to new wrapping and packing lines in Borlänge and SEK 150 million to new overhead cranes in Luleå.

Plate Division

Demand for quenched steels remains strong and prices were somewhat higher than during the first quarter. Deliveries have continued to be restricted by available production capacity. During the second quarter, production and deliveries of quenched steels were negatively affected by the ongoing investment projects as well as by a number of smaller disruptions in

production. Nevertheless, deliveries increased by 3% compared with last year and amounted to 137 (133) thousand tonnes. In total, deliveries of quenched steels for the first half of the year amounted to 282 (267) thousand tonnes, constituting 89 (81)% of total plate deliveries.

Sales increased by 11% compared with the second quarter of last year and amounted to SEK 2,895 (2,603) million. In total, sales for the first half of the year amounted to SEK 5,751 (5,395) million.

Operating profit for the quarter fell by SEK 64 million to SEK 594 (658) million, primarily due to higher fixed costs and an adjustment of iron ore costs in the preceding year. In total, operating profit for the first half of the year amounted to SEK 1,377 (1,410) million.

Crude steel production during the second quarter amounted to 449 (437) thousand tonnes and total plate production to 146 (158) thousand tonnes. In total, crude steel production for the first half of the year amounted to 905 (898) thousand tonnes and plate production to 295 (314) thousand tonnes.

During the first half of the year, decisions were taken regarding new capital expenditures totaling SEK 221 (1,263) million. Of investments already decided upon, SEK 770 million relate to expansion investments within quenched steels. Among other things, a line is being constructed for quenching of thick heavy plate in Oxelösund and a distribution center with cutting to size capacity in China. Implementation is taking place gradually during 2007-2009 and the investment will increase quenched steel production capacity to 700 thousand tonnes.

A further SEK 225 million relates to investments in increased capacity for after-treatment of crude steel in Oxelösund. The plant will be brought into operation in the fall of 2007.

Tibnor

The sales trends during the quarter continued to be strong on all of the geographical markets on which Tibnor operates. The pace of deliveries during the quarter remained at a high level and, in total, deliveries were 8% up on the first half of last year.

Sales increased by 20% compared with the second quarter of last year and amounted to SEK 2,769 (2,301) million. In total, sales for the first half of the year amounted to SEK 5,543 (4,410) million.

Operating profit increased by 56% to SEK 291 (186) million compared with the second quarter of last year, primarily due to higher volumes. In total, operating profit for the first half of the year amounted to SEK 558 (327) million.

Plannja

Plannja's volume growth was strong on all markets, primarily as a consequence of a continued buoyant building sector. Deliveries during the first half of the year were 21% higher than during the corresponding period of last year.

Sales increased by 23% compared with the second quarter of last year and amounted to SEK 513 (418) million. In total, sales for the first half of the year amounted to SEK 831 (644) million.

Operating profit increased by SEK 7 million to SEK 50 (43) million, primarily due to higher volumes. In total, operating profit for the first half of the year amounted to SEK 53 (29) million.

On April 2, 2007, all of the shares were acquired in the steel and ventilation supplier, Steinwalls Plåt AB in Småland, for SEK 84 million. The company has 45 employees and sales of approximately SEK 80 million. Equity in the acquired company amounted to SEK 6 million. The fair value of the acquired assets and liabilities has been provisionally allocated, whereupon SEK 78 million has been ascribed to goodwill.

During the second quarter, Steinwalls' contributed SEK 23 million to sales and SEK 4 million to operating profit.

Events since the End of the Quarter

On May 3, a public tender offer of USD 160 per share or just over USD 7.5 billion in cash was made for the North American steel company, IPSCO, which was approved by a special meeting of IPSCO's shareholders on July 16. In order for the takeover to be completed, the approval of the Ontario Superior Court of Justice is needed. It is estimated that the takeover will be completed on or about July 18, from which date IPSCO will be included as a division in the SSAB Group. In connection with the bid, an agreement was entered into with a syndicate of banks regarding loans totaling USD 8.8 billion. The purpose of the loan agreement is to finance the acquisition of shares in IPSCO and to refinance IPSCO's existing debts. The acquisition of IPSCO is thus financed entirely through borrowed funds. However, the intention is to carry out the new issue authorized by the general meeting and thereby reduce indebtedness. In 2006, IPSCO had sales of almost USD 3.8 billion and an operating profit of almost USD 1 billion. In 2006, IPSCO delivered approx. 3.7 million tonnes of steel and pipes and had just over 4,400 employees.

At an extraordinary general meeting of SSAB's shareholders held on July 10, the Board of Directors was granted authorization to carry out a new issue with pre-emption rights for existing shareholders, conditional on IPSCO's shareholders approving SSAB's acquisition of the company. According to the resolution adopted by the general meeting, the new issue may not exceed approx. SEK 10,000 million. The issue price and the subscription ratio shall be decided upon in consultation with the Company's financial advisors in order to determine an appropriate issue price and subscription ratio. 1)

Prospects for the remainder of the year

The acquisition of IPSCO will have a major impact on SSAB's earnings and financial position; however, since the acquisition has not been completed as of the date of publication of this Report, no effects thereof have been included in the prospects for the remainder of the year.

¹⁾ The allocation of subscription rights to persons who are resident in, or citizens of, Australia, Canada, Hong Kong, Japan or the USA may be affected by the securities legislation in those countries. Consequently, a shareholder who is resident in, or a citizen of, those countries is excluded from participation in a new issue. The subscription rights which otherwise would vest in such a shareholder will, instead, be sold and the proceeds will be paid out to the shareholder.

It is expected that the steel operations' volumes of the core niche products, quenched steels and advanced high-strength sheet, will continue to increase during the remainder of 2007. After the summer, additional quenched steel capacity will be brought into operation.

Based on the agreements that have been entered into, it is estimated that during the third quarter the steel operations' prices in local currencies will be largely unchanged compared with the second quarter.

During the third quarter, customary maintenance will take place entailing a production stop of approximately two weeks, which will affect both production and delivery volumes. In addition, the major expansion investments which are taking place in the steel operations will continue to impact negatively on production and deliveries during the third quarter.

Fixed costs during the second half of 2007 will be negatively affected by a further approx. SEK 130 million as a consequence of ongoing rationalizations and skills replacement program entailing that, in total, approx. 400 people are expected to leave SSAB in 2007. These measures, which are primarily based on a voluntary approach, will generate annual cost savings in excess of SEK 200 million commencing 2008.

Sensitivity Analysis

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

	Change during	Effect on profit,	Effect on earning
	the remainder of	SEK millions	per share, SEK
	the year, %
Steel prices – steel operations	5	500	1.40
Volumes- steel operations	5	240	0.65
Volumes – trading operations	5	35	0.10
Margins – trading operations	2% points	90	0.25
Krona index	5	175	0.50

The sensitivity analysis describes the manner in which changes in stated factors during the remainder of the year, as compared with the first half of the year, will affect the profit for the year before tax and earnings per share. The calculation is exclusive of the effects of an acquisition of IPSCO.

Accounting principles

This Half Year Report has been prepared in accordance with IAS 34 and RR31. Apart from the application of IAS 19, Employee Benefits, the accounting principles are unchanged since the annual accounts for 2006 and are based on International Financial Reporting Standards in the form adopted by the EU. Accounting standards and applications implemented during the year have not affected the Group's earnings and financial position. The allocation between Cost of goods sold and Selling and Administrative expenses has been partially revised during 2007. Figures for the preceding year have been adjusted in order to correspond with this, entailing an decrease in Cost of goods sold for 2006 with SEK 504 million while Selling and Administrative expenses have been accordingly increased. The parent company's annual accounts have been prepared in accordance with RR 32:06.

New disclosure requirements

According to a new Act in Sweden which is based on an EU Directive, commencing with the

report for the first half of 2007 there are the following requirements for enhanced disclosure:

Risks and uncertainty:

The acquisition of IPSCO entails that the net debt/equity ratio will initially increase substantially and that SSAB's sensitivity to downturns in the earnings level will increase.

As a consequence of the acquisition being financed through borrowed funds in foreign currency, the effects of exchange rate changes and interest rate changes will also be of extremely great significance for SSAB's financial position and earnings.

With the acquisition of IPSCO, approximately one half of the Group's operating profit will be derived from North America, as a consequence of which the Group's flows in USD and CAD will increase substantially.

Changes in the price of scrap metal, which is an important raw material for IPSCO, will be of greater importance for SSAB's earnings trends.

Changes in the price of sheet and plate products, and in the future also of pipes, will continue to be the most important factor influencing SSAB's earnings trend.

Since no other material changes have taken place during the period with respect to material risks and uncertainty factors, reference is made to the detailed description provided in the annual report for 2006.

Affirmation:

The Board of Directors and the President hereby affirm that the Report provides a true and fair overview of the operations, financial position and earnings of the Company and the Group and describes material risks and uncertainty factors facing the Company and the Group.

Stockholm, July 17, 2007

Sverker Martin-Löf	Carl Bennet	Sture Bergvall
Chairman	Member	Member
Anders G Carlberg	Owe Jansson	Marianne Nivert
Member	Member	Member
Anders Nyrén	Claes Ström	Matti Sundberg
Member	Member	Member
Lars Westerberg Member	Olof Faxander President and CEO

Review Report

We have carried out a review of the interim report for SSAB Svenskt Stål AB as at June 30, 2007 and for the period then ended. According to IAS 34 and the Swedish Annual Reports Act, it is the Board of Directors and the President who are responsible for the preparation and presentation of this interim report. Our responsibility is to state a conclusion regarding this interim report based on our review.

We have conducted our review in accordance with the Standards for Reviews, SÖG 2410 Reviews of financial interim information carried out by the company's selected auditor, which is issued by FAR (Swedish Institute of Authorized Public Accountants). A review consists of conducting enquiries, primarily to persons who are responsible for financial issues and accounting issues, carrying out an analytical review and taking other review measures. A review has a different focus, and is on a significantly smaller scale, than the focus and scale of an audit in accordance with Audit Standards in Sweden (RS) and in accordance with generally accepted auditing standards. The review measures taken in conjunction with a review do not allow us to acquire such a degree of certainty that we will be aware of all important circumstances which might have been identified had an audit been carried out. The stated conclusion based on a review thus does not possess the certainty possessed by a stated conclusion based on an audit.

Based on our review, no circumstances have arisen which provide us with reason to believe that the interim report has not, in all material respects, been prepared in accordance with IAS 34 and the Swedish Annual Reports Act.

Stockholm, July 17, 2007

PricewaterhouseCoopers AB

Claes Dahlén Authorised public accountant

July 17, 2007 Q2-2007e.ce

Production and Deliveries, Steel Operations

'000 tonnes	1/05	2/05	3/05	4/05	1/06	2/06	3/06	4/06	1/07	2/07
Crude steel production
- Sheet Division	589	573	563	514	563	554	487	602	580	581
- Plate Division	469	483	338	437	461	437	291	341	456	449
- Total	1,058	1,056	901	951	1,024	991	778	943	1,036	1,030
Sheet/plate production
- Sheet	700	629	520	591	710	733	539	678	727	686
- Plate	174	174	113	171	156	158	120	152	149	146
- Total	874	803	633	762	866	891	659	830	876	832
Sheet/plate deliveries
- Sheet	620	591	515	585	646	679	525	624	665	656
- Plate	186	178	138	159	169	162	127	164	165	151
- Total	806	769	653	744	815	841	652	788	830	807
of which
- AHS 1)	136	143	102	126	170	195	154	180	212	213
- Quenched steels	122	126	105	118	134	133	111	132	145	137
- Total core niche products	258	269	207	244	304	328	265	312	357	350

1) Advanced high-strength sheet

The report for the first three quarters of 2007 will be published on October 29, 2007

SSAB Svenskt Stål AB (publ) Telephone +46 8-45 45 700 Box 26208, 100 40 Stockholm Fax +46 8-45 45 725 Street address: Birger Jarlsgatan 58, Stockholm E-mail: info@ssab.com Company no. 556016-3429 www.ssab.se

Consolidated Income Statement

	2007	2006	2007	2006	July 06 -	2006
SEK millions	Q 2	Q 2	Q 1-2	Q 1-2	June 07	Full year
Sales	9,099	8,096	17,879	15,718	33,215	31,054
Cost of goods sold 2)	-6,526	-5,804	-12,628	-11,360	-24,355	-23,087
Gross profit	2,573	2,292	5,251	4,358	8,860	7,967
Selling and administrative expenses 2)	-783	-601	-1,359	-1,153	-2,547	-2,341
Other operating revenues and expenses	7	1	12	-18	219	189
Affiliated companies, profit before tax	52	89	90	151	178	239
Operating profit	1,849	1,781	3,994	3,338	6,710	6,054
Financial income	34	23	59	52	103	96
Financial expenses	-19	-28	-42	-56	-84	-98
Profit after financial items	1,864	1,776	4,011	3,334	6,729	6,052
Tax	-528	-550	-1,131	-995	-1,847	-1,711
Profit after tax	1,336	1,226	2,880	2,339	4,882	4,341
Of which attributable to:
- the parent company's shareholders	1,305	1,206	2,819	2,303	4,769	4,253
- minority interests	31	20	61	36	113	88
Key ratios
Return on capital employed before tax (%)	-	-	-	-	-	36
Return on equity after tax (%)	-	-	-	-	-	29
Earnings per share (SEK) 2)	5.03	4.45	10.88	8.47	18.40	16.02
Equity per share (SEK)	65.72	51.82	65.72	51.82	65.72	59.18
Equity ratio incl. minority (%)	69	65	69	65	69	68
Net debt/equity ratio (%)	0	11	0	11	0	-1
Average no. of shares during the period (mil.)	259.1	271.1	259.1	272.0	259.1	265.5
Number of shares at end of period (mil.) 1)	259.1	259.1	259.1	259.1	259.1	259.1
Average number of employees 3)	-	-	-	-	7,916	8,031

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

2) The allocation of Cost of goods sold and Selling and Administrative expenses has been partially revised. Figures for the preceding year have been adjusted in order to correspond with this, entailing SEK 141 million for Q2 and SEK 268 million for the first half of 2006, as well as SEK 504 million for the full year of 2006. 3) The average number of employees is reported in accordance with the Swedish Accounting Standards Board's new definition. Figures for the preceding year have been adjusted in order to correspond thereto.

Consolidated Balance Sheet

	June 30,	June 30,	Dec. 31,
SEK millions	2007	2006	2006
Assets
Intangible fixed assets	89	11	10
Tangible fixed assets	8,340	7,824	7,962
Participations in affiliated companies	363	409	283
Financial fixed assets	14	41	15
Deferred tax claims	65	87	70
Total fixed assets	8,871	8,372	8,340
Inventories	7,271	6,132	6,951
Accounts receivable	6,162	5,262	4,926
Current tax claims	41	60	37
Other current interest-bearing receivables	-	1	495
Other current receivables	855	693	673
Liquid assets	1,613	531	1,373
Total current assets	15,942	12,679	14,455
Total assets	24,813	21,051	22,795
Equity and liabilities
Equity for shareholders in the company	17,032	13,428	15,335
Minority shares	191	165	216
Total equity	17,223	13,593	15,551
Deferred tax liabilities	1,312	1,387	1,302
Other long-term provisions	171	148	154
Long-term interest-bearing liabilities	446	1,133	850
Total long-term liabilities	1,929	2,668	2,306
Current interest-bearing liabilities	779	586	306
Current tax liabilities	266	315	448
Accounts payable	2,540	1,981	2,362
Other current liabilities	2,076	1,908	1,822
Total current liabilities	5,661	4,790	4,938
Total equity and liabilities	24,813	21,051	22,795

The Group's Changes in Equity

	Share	Contrib	Translation	Retained			Total
SEK millions	capital	uted funds	reserves	earnings	Total	Minority	equity
Equity, December 31, 2005	2,273	560	30	11,321	14,184	180	14,364
Changes Jan. 1 – June 30, 2006
Translation difference			-36		-36	0	-36
Change in affiliated companies'
equity			0		0		0
Result for the period				2,303	2,303	36	2,339
Redemption of shares 1)	-114			-2,091	-2,205		-2,205
Bonus issue 1)	121	-7		-114	0		0
Dividends				-818	-818	-51	-869
Equity, June 30, 2006	2,280	553	-6	10,601	13,428	165	13,593
Changes July 1 – Dec. 31, 2006
Translation difference			-43		-43	-1	-44
Change in affiliated companies'
equity			0		0		0
Result for the period				1,950	1950	52	2,002
Equity, Dec. 31, 2006	2,280	553	-49	12,551	15,335	216	15,551
Changes Jan. 1 – June 30, 2007
Translation difference			44		44	1	45
Change in affiliated companies'
equity			0		0		0
Result for the period				2,819	2,819	61	2,880
Dividends				-1,166	-1,166	-87	-1,253
Equity, June 30, 2007	2,280	553	-5	14,204	17,032	191	17,223

1) The redemption of 4.5 million shares in 2006 reduced the share capital by SEK 114 million and the bonus issue increased it by SEK 121 million. Following implementation of a 3:1 split, the number of shares thereafter amounts to 259,147,821 with a quotient value of SEK 8.80.

Cash Flow Statement

	2007	2006	2007	2006	July 06 -	2006
SEK millions	Q 2	Q 2	Q 1-2	Q 1-2	June 07	Full year
Profit from ongoing operations	1,535	1,656	3,104	2,662	5,542	5,100
Change in working capital	-213	-46	-1,036	-126	-1,175	-265
Cash flow from ongoing operations	1,322	1,610	2,068	2,536	4,367	4,835
Investing activities	-776	-364	-1,168	-639	-1,786	-1,257
Sold operations 1)	-	-	-	-	248	248
Cash flow from investing activities	-776	-364	-1,168	-639	-1,538	-1,009
Dividend/redemption to shareholders	-1,166	-3,023	-1,166	-3,023	-1,166	-3,023
Other financing activities	540	115	506	773	-581	-314
Cash flow from financing activities	-626	-2,908	-660	-2,250	-1,747	-3,337
Change in liquid assets	-80	-1,662	240	-353	1,082	489

1) 'Sold operations' for 2006 relates to the purchase price received for Cogent.

Business Areas'/Subsidiaries' Sales, Operating Profit and Return on Capital Employed

		Sales		Operating	Return on capital
				profit	employed (%)
	2007	2006	2007	2006	July 06 -	2006
SEK millions	Q 1-2	Q 1-2	Q 1-2	Q 1-2	June 07	Full year
Business Area/Subsidiary
Sheet	8,952	7,831	1,902	1,539	39	34
Plate	5,751	5,395	1,377	1,410	36	40
Plannja	831	644	53	29	33	30
Tibnor	5,543	4,410	558	327	59	50
Other subsidiaries	527	488	31	24	-	-
Parent company 1)	-	-	-27	-63	-	-
Affiliated companies	-	-	83	61	-	-
Group adjustments	-3,725	-3,050	17	11	-	-
Total	17,879	15,718	3,994	3,338	38	36

1) Excluding dividends from subsidiaries and affiliated companies. The profit in the parent company units consist primarily of administrative expenses and financial items.

Profit per Quarter for Remaining Operations

SEK millions	1/05	2/05	3/05	4/05	1/06	2/06	3/06	4/06	1/07	2/07
Sales	7,060	7,444	6,294	7,006	7,622	8,096	7,020	8,316	8,780	9,099
Operating expenses	-	-	-	-	-	-	-	-	-	-
	5,047	5,505	5,131	5,530	5,895	6,169	5,697	6,515	6,420	7,043
Depreciation	-237	-236	-239	-239	-232	-235	-239	-257	-253	-259
Affiliated companies	28	62	24	-19	62	89	43	45	38	52
Financial items	-12	-17	-15	-20	1	-5	-8	10	2	15
Profit after financial items	1,792	1,748	933	1,198	1,558	1,776	1,119	1,599	2,147	1,864

Operating profit per Quarter and Business Area/Subsidiary

SEK millions	1/05	2/05	3/05	4/05	1/06	2/06	3/06	4/06	1/07	2/07
Sheet	1,196	1,006	485	488	662	877	551	766	1,023	879
Plate	478	578	294	644	752	658	303	521	783	594
Plannja	-5	35	40	10	-14	43	57	28	3	50
Tibnor	165	137	69	55	141	186	202	247	267	291
Other incl. parent company	-30	9	60	21	16	17	14	27	69	35
Operating profit	1,804	1,765	948	1,218	1,557	1,781	1,127	1,589	2,145	1,849

Parent Company's Income Statement

	2007	2006	2007	2006	July 06 -	2006
SEK millions	Q 2	Q 2	Q 1-2	Q 1-2	June 07	Full year
Gross profit	0	0	0	0	0	0
Administrative expenses	-33	-44	-65	-64	-112	-111
Other operating revenue	0	1	38		39	2
Operating profit/loss	-33	-43	-27	-63	73	-109
Dividends from subsidiaries	2	3,188	496	3,188	3,973	6,665
Financial items	64	71	99	86	166	153
Profit after financial items	33	3216	568	3,211	4,066	6,709
Tax	-9	0	-20	-1	-16	3
Profit after tax	24	3216	548	3,210	4,050	6,712

Parent Company's Balance Sheet

	June 30,	June 30,	Dec 31,
SEK millions	2007	2006	2006
Assets
Tangible fixed assets	1	12	1
Financial fixed assets	2,308	2,307	2,307
Deferred tax claims	1	1	1
Total fixed assets	2,310	2,309	2,309
Receivables from subsidiaries	8,329	5,972	8,854
Current tax claims	0	-	-
Other current interest-bearing receivables	-	-	495
Other current receivables	323	131	181
Liquid assets	1,273	1,159	974
Total current assets	9,925	7,262	10,504
Total assets	12,235	9,571	12,813
Equity and liabilities
Share capital	2,280	2,280	2,280
Statutory reserve	902	902	902
Retained earnings	6,004	451	458
Profit for the year	548	3,210	6,712
Total equity	9,734	6,843	10,352
Pensions provisions	6	5	6
Liabilities to subsidiaries	1	1	1
Long-term interest-bearing liabilities	400	1,048	800
Total long-term liabilities and provisions	407	1,054	807
Liabilities to subsidiaries	1,193	856	1,216
Current interest-bearing liabilities	745	555	275
Current tax liabilities	21	3	1
Accounts payable	9	7	4
Other current liabilities	126	253	158
Total current liabilities	2,094	1,674	1,654
Total equity and liabilities	12,235	9,571	12,813

The parent company reports a profit after tax for the first half of the year of SEK 548 million, of which SEK 496 million consists of dividends from subsidiaries.

Liquid assets amounted to SEK 1,273 million.

In April, dividends were paid to the Company's shareholders in the amount of SEK 1,166 million (SEK4.50/share).