SSAB — Interim / Quarterly Report 2010

May 4, 2010

Report for the First Quarter of 2010

Report for the First Quarter of 2010

The quarter

• Sales increased by 10% to SEK 8,865 (8,035) million
• Operating profit of SEK 168 (-134) million
• Profit after financial items of SEK 83 (-215) million
• Earnings per share of SEK 0.44 (0.50)
• Operating cash flow of SEK 256 (924) million and cash flow from current operations of SEK 447 (-376) million
• Net debt/equity ratio was unchanged since the beginning of the year and amounted to 49%

(In the report, amounts in brackets refer to the corresponding period of last year.)

Comments by the CEO

2010 began with a continued increase in demand and increasing production volumes. The improvement is due to recovery at our customers and a degree of inventory restocking at our customers. The quarter was negatively affected by a scheduled maintenance outage in the US and by the anticipated increases in the price of iron ore. However, due to existing stocks the price of iron ore had only a limited effect.

A new iron ore pricing model is in the process of being established. Instead of annual contracts, a transition is now taking place to quarterly contracts. The annual contracts provided the steel market with stability. But in times of great volatility, it is easier for all parties to adapt to fluctuations if contracts entered into on a quarterly basis.

When these lines are being written, we have not yet signed a contract with our main supplier, LKAB. However, bearing in mind the trend on the global market, we anticipate a significant increase in the price of iron ore for the second quarter.

Agreements from the second quarter regarding new coal prices involve price increases of just over 50 percent. The impact of these increases will be felt during the third quarter. No agreements have yet been reached regarding the third quarter.

Market prices for scrap metal in the US have steadily increased and are now 36 percent higher than at the beginning of the year.

We have increased our prices for the second quarter. These increases are expected to be sufficient to offset the anticipated increases in the cost of raw materials during the second quarter.

Significant increases in the price of raw materials delivered during the second quarter are expected which will have full impact on the raw material cost during the third quarter. However, in the third quarter we expect to increase our prices further.

During the first quarter, an extended, scheduled production outage took place at our plant in Montpelier, Iowa. This maintenance outage was concluded as planned in the second week of April.

Demand for steel is expected to remain positive during the second quarter. In Latin America, Australia and, primarily, Asia, the trend is very positive. In Europe and North America, too, demand for steel is increasing, although from a low level. The mining industry is currently the strongest growth sector, providing a very strong inflow of orders. There is also an increase within heavy transports, but from a low level.

This is SSAB's first financial report since the implementation of the new structure of the organization. Transactions between the business areas take place at market prices. In part, the report has been given a new structure. I hope that it will make it easier, for all who are interested, to follow SSAB's development.

Consolidated income statement

	2010	2009	April 09 -	2009
SEK millions	Q1	Q1	March 10	Full year
Sales	8,865	8,035	30,668	29,838
Operating profit	168	-134	-1,290	-1,592
Of which operating profit per business area
- SSAB EMEA	214	-43	-1,436	-1,693
- SSAB Americas	134	1	728	595
- SSAB APAC	10	13	67	70
- Tibnor	79	-82	123	-38
- Amortization on surplus values 1)	-223	-263	-902	-942
- Other 2)	-46	240	130	416
	168	-134	-1,290	-1,592
Financial items	-85	-81	-473	-469
Profit after financial items	83	-215	-1,763	-2,061
Tax	69	368	883	1,182
Profit after tax for continuing operations	152	153	-880	-879
Profit after tax for discontinued operations 3)	-	-	-131	-131
Profit for the period after tax	152	153	-1,011	-1,010

1) Depreciation and amortization on surplus values on intangible and tangible fixed assets related to the acquisition of IPSCO.

2) Earnings for the quarter include a profit of SEK 0 (140) million on sales of emission rights.

3) The discontinued operations relate to the tubular business in North America which was divested in 2008. The previous year's cost of SEK 131 million represents provisions for warranty undertakings to the buyer.

Key numbers	2010	2009	April 09 -	2009
	Q1	Q1	March 10	Full year
Return on capital employed before tax (%)	-	-	neg	neg
Return on equity after tax (%)	-	-	neg	neg
Earnings per share (SEK)	0.44	0.50	-3.16	-3.09
-of which for continuing operations (SEK)	0.44	0.50	-2.75	-2.69
Equity (SEK millions)	30,879	35,591	30,879	31,002
Net debt (SEK millions)	15,039	18,631	15,039	15,314
Net debt/equity ratio (%)	49	52	49	49

The market

Demand in all regions continued to improve also during the first quarter. The increase in demand is due partly to the increasing underlying demand and partly to the fact that the strong inventory liquidation period of last year is now being succeeded by a degree of inventory restocking. The Heavy Transports and Mining sectors showed signs of recovery. Demand within the Automotive sector remains strong.

Global crude steel production increased by 4% during the quarter compared with the fourth quarter of last year. During the first quarter, China accounted for 46 (48)% of global crude steel production. In its most recent forecast, the World Steel Association makes the assessment that demand for steel will increase by almost 11% this year compared with 2009.

Inventory levels of steel products at European distributors are on a balanced level compared with sales for the past three months. According to statistics from the Metals Service Center Institute, seasonally adjusted inventories at Steel Service Centers in the US declined to 2.6 months of actual sales in March.

Short-term outlook

Demand for steel is expected to enjoy continued positive growth during the second quarter. The Mining sector is the strongest sector, but an increase is also taking place within Heavy Transports. However, that increase is taking place from low levels.

SSAB's production and shipments are expected to be at close to normal levels during the second quarter. The maintenance outage at the plant in Montpelier, Iowa, continued during the first part of April, while one of the blast furnaces in Oxelösund experienced minor disruptions at the beginning of the second quarter.

SSAB has increased its prices for the second quarter. These increases are expected to be sufficient to offset the anticipated increases in the cost of raw materials during the second quarter.

Significant increases in the price of raw materials delivered during the second quarter are expected which will have full impact on the raw material cost during the third quarter. However, in the third quarter SSAB expects to increase its prices further.

The Group

Raw materials

Australian coal suppliers have changed their contract terms and, going forward, will negotiate prices quarterly instead of annually. Agreements have been reached regarding new prices for Australian coal, which will apply to the second quarter. American coal suppliers will continue with annual agreements and agreements have been reached with the US coal suppliers regarding prices for 2010. These new coal price agreements together entail price increases in USD of 52%, which at an exchange rate of SEK 7.20/USD means a price increase in SEK of approx. 59%. However, since the prices apply commencing April 1 and due to existing stocks, the full impact of the price increase will not be felt until the third quarter.

In March, the largest ore supplier, Vale in Brazil, presented a new price model to its customers in Europe and Asia. In the future, prices will be set quarterly instead of annually. Iron ore agreements for 2010 have not yet been concluded, but bearing in mind the trend on the global market, we anticipate a significant increase in the price for the second quarter.

The American operations regularly purchase scrap metal as a raw material for their production. Market prices for scrap metal in the US have steadily increased and are now 36 percent higher than at the beginning of the year.

Shipments and production

SSAB's shipments during the first quarter increased by 7% compared with the fourth quarter of 2009, as a consequence of increased demand, partly driven by inventory restocking following the substantial inventory liquidation of last year. Shipments during the first quarter increased by 74% compared with the first quarter of 2009. Shipments of niche products fell by 13% compared with the fourth quarter of 2009, primarily due to the

bringing forward of a major project order that SSAB Americas delivered during the fourth quarter of last year. Shipments of niche products were 52% up on the first quarter of last year.

Despite the unusually severe winter, crude steel production increased by 9% compared with the fourth quarter of last year and was up 89% on the first quarter of last year. Steel production was up 7% compared with the fourth quarter and 105% up on the first quarter of last year.

Sales

Sales during the quarter amounted to SEK 8,865 (8,035) million, an increase of SEK 830 million or 10% compared with the first quarter of 2009. Lower prices accounted for a negative effect of 37 percentage points; a weaker product mix for a negative effect of 6 percentage points, and exchange rates for a negative effect of 9 percentage points, while volume increases accounted for a positive effect of 62 percentage points.

Earnings

Operating profit during the quarter improved by SEK 302 million compared with the first quarter of 2009 and amounted to SEK 168 (-134) million. Lower prices were offset by higher volumes, lower variable production costs, lower impairment write-downs of inventories, as well as a reduced need for provisions for bad debt losses. The first quarter of 2009 included a positive effect of SEK 140 million from sales of emission rights.

The profit analysis is shown in the table below.

Change in operating profit between the first quarters of 2010 and 2009 (SEK millions)
Steel operations
- Lower prices	-2,571
- Higher volumes	1,022
- Lower variable production costs	1,593
Tibnor
- Higher volumes, changed mix and margins	89
Lower write-down of coke inventories	182
Lower provisions for anticipated bad debt losses	61
Sold emission rights	-140
Other	66
Change in operating profit	302

Due to a strong Swedish krona compared with 2009, sales have been negatively affected in the amount of approx. SEK 0.7 billion, while operating expenses were positively affected by approx. SEK 0.2 billion.

Financial items for the quarter amounted to SEK -85 (-81) million.

Profit for the quarter after financial items was SEK 83 (-215) million.

Profit after tax and earnings per share

Profit after tax (attributable to the shareholders) for the quarter amounted to SEK 143 (163) million, or earnings per share of SEK 0.44 (0.50). Tax for the quarter amounted to SEK +69 (+368) million.

Financing and liquidity

The operating cash flow for the quarter remained positive and, during the quarter, amounted to SEK 256 (924) million, primarily as a consequence of a positive cash flow from the business operations, reduced by an increase in working capital attributable to higher inventories and accounts receivable.

Cash flow before financing and dividends amounted to SEK 299 (-611) million and, together with translation effect on debts, amounted to SEK -24 (-1,028) million, entailing that the net debt declined by SEK 275 million during the quarter and, on March 31, amounted to SEK 15,039 (18,631) million. The net debt/equity ratio was 49 (52)%.

Operating cash flow/change in net debt	2010	2009	April 09 -	2009
SEK millions	Q1	Q1	March 10	Full year
SSAB EMEA	-120	48	1,945	2,113
SSAB Americas	510	268	1,400	1,158
SSAB APAC	-94	68	-21	141
Tibnor	-56	110	559	725
Other	16	430	317	731
Operating cash flow	256	924	4,200	4,868
Financial items	-74	-250	-362	-538
Taxes	265	-1,050	372	-943
Cash flow from current operations	447	-376	4,210	3,387
Strategic investments	-149	-266	-827	-944
Divestment of businesses and operations	1	31	1	31
Cash flow before dividend and financing	299	-611	3,384	2,474
Dividend 1)	-	-	-1,296	-1,296
Currency translation and other 2)	-24	-1,028	1,504	500
Change, net debt (increase/decrease+)	275	-1 639	3,592	1,678

1) The dividend of SEK 324 (1,296) was decided upon in March but not paid out until the beginning of April.

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

As per March 31, the term to maturity on the loan portfolio averaged 3.6 (3.7) years, with an average fixed interest period of 0.9 (0.8) years. Of the loan portfolio of SEK 17,073 (22,144) million, short-term commercial paper accounted for SEK 1,589 (2,241) million.

The Group's liquidity preparedness	2010	2009
SEK millions	March 31	March 31
Cash and cash equivalents	2,097	3,632
Committed credit facilities	15,488	7,161
Liquidity preparedness	17,585	10,793
-as a percentage of annual sales (rolling 12 months)	57%	22%
Less commercial paper	-1,589	-2,241
Liquidity preparedness excluding commercial paper	15,996	8,552
- as percentage of annual sales (rolling 12 months)	52%	17%

Return on capital employed/equity

The return on capital employed before tax and return on equity after tax were negative for the most recent twelve-month period and for the full year of 2009.

Equity

Following the addition of profit for the year of SEK 143 million attributable to the Company's shareholders and other comprehensive income of SEK 64 million (primarily comprising translation differences), and after deduction for a decided-upon dividend of SEK 324 million, the shareholders' equity in the Company amounted to SEK 30,724 (35,430) million, equal to SEK 94.84 (109.37) per share.

Capital expenditures

During the quarter, decisions were taken regarding new capital expenditures totaling SEK 652 (88) million, of which SEK 379 (0) million involved strategic investments. SEK 320 million of the strategic investment decisions related to the finishing line in Kunshan, China, which was reported in the report of the results for 2009. Capital expenditure payments for the entire operations amounted to SEK 356 (514) million, of which SEK 149 (266) involved strategic capital expenditures.

SSAB EMEA

		2010	2009	April 09 -	2009
SEK millions		Q1	Q1	March 10	Full year
Sales		4,836	4,414	15,674	15,252
Operating profit before depreciation		486	214	-348	-620
Operating profit		214	-43	-1,436	-1,693
Operating margin (%)		4%	-1%	-9%	-11%
Return on capital employed (%)		-	-	neg	neg
Shipments ('000 tonnes) - Quenched steels		59	63	163	167
	- AHSS	111	64	329	282
	- Ordinary	377	217	1,186	1,026
Production ('000 tonnes) - Crude steel		874	492	2,269	1,887
	- Steel	738	372	2,116	1,750
Operating cash flow		-120	48	1,945	2,113
Maintenance capital expenditures		-156	-203	-752	-799
Strategic capital expenditures		-117	-170	-691	-744

Demand increased on all markets and the order book was strong. Demand was particularly strong from the Mining sector, Automotive sector and Lifting sector. Steel shipments increased by 10% compared with the fourth quarter of 2009. Shipments of niche products increased by 34% compared with the first quarter of 2009 and totaled 170 (127) thousand tonnes. Shipments of niche products thereby accounted for 31 (37)% of total shipments. Prices in local currency for advanced high-strength steels (AHSS) and quenched steels each declined by 3%, while prices in local currency for ordinary steel increased by 5%.

Both crude steel production and steel production were negatively affected by disruptions resulting from the unusually severe winter. Production at the blast furnaces is back at an almost normal level.

Sales increased by 10% compared with the first quarter of 2009. Lower prices accounted for a negative effect of 24 percentage points; a weaker product mix for a negative effect of 8 percentage points; currency effects for a negative effect of 4 percentage points, while volume increases accounted for a positive effect of 46 percentage points.

Operating profit for the quarter was SEK 214 (-43) million. Lower average prices compared with the first quarter of 2009 were partly offset by higher volumes, lower variable costs, a reduction of SEK 73 million in provisions for bad debt losses, and the fact that during the first quarter of 2009 significant impairment writedowns of coke inventories were incurred in the amount of SEK 182 million.

Operating cash flow during the first quarter was negatively affected by increased accounts receivable as a result of increased sales as well as by increased inventories, and amounted to SEK -120 (48) million.

During the quarter, decisions were taken on new capital expenditures totaling 282 (71) million. Capital expenditure payments during the quarter amounted to SEK 273 (373) million, of which SEK 117 (170) million involved strategic investments. The largest ongoing project is an investment for the production of quenched steel at the plant in Borlänge. The line is expected to be brought into commission in 2012.

Coke inventory write-down, 1/09	182
Provision, bad debt losses	73
Other	36
Change in operating profit	257

Analysis of operating profit	SEK	Price analysis	Ordinary	Quenched
quarter 1/09 to 1/10	millions	quarter 4/09 to 1/10	steel	steel	AHSS
Price/mix	-1,129	Price change, local currency	5%	-3%	-3%
Volume	332	Changed product mix	2%	-5%	-1%
Variable costs	758	Currency changes	-2%	0%	-2%
Fixed costs	5	Net price change	5%	-8%	-6%

SSAB Americas

	2010	2009	April 09 -	2009
SEK millions	Q1	Q1	March 10	Full year
Sales	3,142	2,566	11,288	10,712
Operating profit before depreciation	235	116	1,137	1,018
Operating profit 1)	134	1	728	595
Operating margin (%)	4%	0%	6%	6%
Return on capital employed (%) 2)	-	-	neg	neg
Shipments ('000 tonnes) - Quenched steels	40	25	123	108
- AHSS	86	45	417	376
- Ordinary	439	238	1,431	1,230
Production ('000 tonnes) - Crude steel	585	280	1,971	1,666
- Steel	558	260	1,861	1,563
Operating cash flow	510	268	1,400	1,158
Maintenance capital expenditures	-49	-128	-20	-99
Strategic capital expenditures	-32	-96	-71	-199

1) Excluding depreciation and amortization on surplus values on intangible and tangible fixed assets

2) The return is calculated based on operating profit including amortization on surplus values

Demand is expected to remain strong within all customer segments, but primarily within the mining, energy and infrastructure sectors. Steel shipments were 2% lower than in the fourth quarter of 2009, but 83% up on the first quarter of 2009, and amounted to 565 (308) thousand tonnes. Shipments of niche products were 80% higher than in the first quarter of 2009 and totaled 126 (70) thousand tonnes. Shipments of niche products thereby accounted for 22 (23%) of shipments.

AHSS prices in USD declined by 12%, while quenched steel prices increased by 3% and ordinary steel prices by 2% compared with the fourth quarter of last year. The decrease in AHSS prices was largely offset by an improved mix. Production was restricted by the scheduled maintenance outage at the plant in Montpelier, from March 22 to the beginning of April, but was nevertheless more than double compared with the severely curtailed production during the first quarter of last year.

Sales during the first quarter increased by 22% compared with the first quarter of 2009. Lower prices accounted for a negative effect of 49 percentage points; currency effects for a negative effect of 17 percentage points, while an improved product mix accounted for a positive effect of 5 percentage points and volume increases for a positive effect of 83 percentage points.

Operating profit for the quarter was SEK 134 (1) million. The improvement of SEK 133 million in operating profit is primarily due to increased volumes and lower variable costs, which were, however, offset by lower average prices.

Operating cash flow during the first quarter was positively affected by a positive cash flow from current operations and by higher accounts payable, and amounted to SEK 510 (268) million.

During the quarter, decisions were taken regarding new capital expenditures totaling 49 (17) million. Capital expenditure payments during the quarter amounted to SEK 81 (224) million, of which SEK 32 (96) million involved strategic investments. The largest ongoing project is the expansion of the quenching line in Mobile, Alabama in order to increase quenched steel production capacity by approx. 200 thousand tonnes. The quenching line is expected to be brought into commission during the first half of 2012.

Fixed costs	-49
Inventory write-down	54
Other	-34
Change in operating profit	133

Analysis of operating profit	SEK	Price analysis	Ordinary	Quenched
quarter 1/09 to 1/10	millions	quarter 4/09 to 1/10	steel	steel	AHSS
Price/mix	-904	Price change, local currency	2%	3%	-12%
Volume	645	Changed product mix	1%	-3%	11%
Variable costs	421	Net price change in USD	3%	0%	-1%

SSAB APAC

	2010	2009	April 09 -	2009
SEK millions	Q1	Q1	March 10	Full year
Sales	589	427	1,745	1,583
Operating profit before depreciation	11	15	72	76
Operating profit	10	13	67	70
Operating margin (%)	2%	3%	4%	4%
Return on capital employed (%)	-	-	12%	13%
Shipments ('000 tonnes) - Quenched steels	25	15	72	62
- AHSS	19	11	54	46
- Ordinary	26	0	27	1
Operating cash flow	-94	68	-21	141
Maintenance capital expenditures	0	-2	-4	-6
Strategic capital expenditures	0	0	0	0

Growth in demand remains positive, primarily in China, Australia, India and Indonesia, where demand is driven by the mining industry. The aftermarket, through Steel Service Centers, is also demonstrating strong demand. In China, after a weak 2009 demand is once again increasing in the Lifting sector. Japan and Korea also show signs of increased demand. Shipments of niche products increased by 69% compared with the first quarter of 2009 and amounted to 44 (26) thousand tonnes, representing 63 (96)% of total shipments.

An order for ordinary steel, signed at a low price in 2009, was delivered during the first quarter of 2010 and resulted in a sharp decline in average prices, while the percentage of niche products also fell. Prices in local currencies for the shipments of quenched steels increased by 1%, while AHSS prices increased by 3%.

Sales were 38% up on the first quarter of 2009 and amounted to SEK 589 (427) million. Lower prices accounted for a negative effect of 57 percentage points; a weaker mix for a negative effect of 58 percentage points; currency effects for a negative effect of 9 percentage points, while higher volumes accounted for a positive effect 162 percentage points.

Operating profit for the quarter was SEK 10 (13) million. The decline of SEK 3 million in operating profit is attributable mainly to lower price/mix and higher fixed costs partly offset by lower variable costs and higher volumes.

Operating cash flow during the first quarter was negatively affected by increased accounts receivable as a consequence of increased sales, and amounted to SEK -94 (68) million.

During the quarter, decisions were taken regarding new capital expenditures totaling SEK 320 (0) million, relating to the finishing line in Kunshan, China. The line will have capacity for cutting to size, blasting and organic coating and is expected to be brought into commission in the middle of 2011. Capital expenditures during the quarter amounted to SEK 0 (2) million, of which 0 (0) million involved strategic investments.

Other	-2
Change in operating profit	-3

Analysis of operating profit	SEK	Price analysis	Ordinary	Quenched
quarter 1/09 to 1/10	millions	quarter 4/09 to 1/10	steel	steel	AHSS
Price/mix	-538	Price change, local currency	-14%	1%	3%
Volume	45	Changed product mix	-45%	-4%	2%
Variable costs	496	Currency changes	0%	-3%	1%
Fixed costs	-4	Net price change	-59%	-6%	6%

Tibnor

	2010	2009	April 09 -	2009
SEK millions	Q1	Q1	March 10	Full year
Sales	1,474	1,578	5,182	5,286
Operating profit before depreciation	91	-67	180	22
Operating profit	79	-82	123	-38
Operating margin (%)	5%	-5%	2%	-1%
Return on capital employed (%)	-	-	7%	neg
Shipments ('000 tonnes)	147	129	489	471
Operating cash flow	-56	110	559	725
Maintenance capital expenditures	-1	-9	-51	-59

Shipments during the first quarter were up 24% compared with the fourth quarter of 2009 and were 14% higher than in the first quarter of 2009. The increase is primarily attributable to increased demand for strip products.

Sales fell by 7% compared with the first quarter of 2009 and amounted to SEK 1,474 (1,578) million. The decrease is due to lower average prices and a weaker mix.

Operating profit for the first quarter amounted to SEK 79 (-82) million. The improvement of SEK 161 million in operating profit is due primarily to write-down of inventories of SEK 105 million incurred in the first quarter of 2009, lower fixed costs and a higher share in profit from affiliated companies.

Operating cash flow during the quarter was SEK -56 (110) million. The operating cash flow was negatively affected primarily by increased accounts receivable.

Capital expenditure payments during the first quarter amounted to SEK 1 (9) million.

Analysis of operating profit	SEK
quarter 1/09 to 1/10	millions
Margin	3
Volume/mix	-19
Write-down of inventories 1/09	105
Fixed costs	28
Profit share, affiliated companies	25
Other	19
Change in operating profit	161

Sustainability work during the quarter

SSAB has submitted to the Swedish Environmental Protection Agency verified information regarding carbon dioxide emissions in 2009. These amounted to 227 thousand tonnes in Borlänge, 952 thousand tonnes in Oxelösund and 869 thousand tonnes in Luleå. In addition, in Luleå 1,587 thousand tonnes were transferred to another user via process gases, and thus in total 3,635 thousand tonnes of carbon dioxide are attributable to emissions from SSAB's plants.

Risks and uncertainties

For information regarding significant risks and uncertainty factors, see the detailed description in the annual report for 2009. The transition to shorter term contracts for coal and iron ore purchases entails increased volatility as regards the costs for these raw materials. This will probably lead to a transition to shorter term price agreements also in conjunction with sales. No further risks and uncertainty factors have been identified during the quarter.

Accounting principles

This quarterly report has been prepared in accordance with IAS 34.

Commencing January 1, 2010, the Group applies IAS 27 (Revised). The revised change applies going forward to transactions with minority owners and, among other things, the designation "minority owners" has been changed to "non-controlling interests". The change also means, among other things, that earnings attributable to minority owners must always be reported even if this means that the portion attributable to minority owners is negative; that transactions with minority owners must always be reported in equity; and that in those cases where a parent company relinquishes controlling influence, any remaining holding must be reappraised at fair value. The revised standard has had no effect on previously executed transactions with non-controlling interests.

Commencing January 1, 2010, the Group applies IFRS 3 (Revised). The application entails a change in the way in which future acquisitions are reported, among other things as regards reporting of transaction costs, any conditional purchase price and step acquisitions. No acquisitions took place during the first quarter of 2010 and the change has had no effect on previously executed acquisitions. The revised standard has had no impact on the consolidated financial statements.

Commencing January 1, 2010, the Group applies IFRS 5 (Amendment) "Non-current assets held for sale and discontinued operations". The amendment clarifies that a subsidiary's entire assets and liabilities must be classified as being held for sale where a plan for a partial divestment results in the loss of controlling influence. Where the definition of discontinued operations is fulfilled, necessary disclosure must be provided regarding such a subsidiary. The Group has held no non-current assets for sale and discontinued operations during the first quarter of 2010, and the amendment has had no effect on previously executed divestments. Thus, this amendment has had no impact on the consolidated financial statements.

The accounting principles are otherwise unchanged compared with the annual accounts for 2009 and are based on International Financial Reporting Standards as adopted by the EU and consequential references to Chapter 9 of the Annual Accounts Act. The accounts of the parent company have been prepared in accordance with RFR 2.3 and the Annual Accounts Act.

Review report These results have not been reviewed by the auditors.

Stockholm, May 4, 2010

Olof Faxander President and CEO

Sensitivity analysis

The approximate full year effect 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	2,640	6.00
Volumes – steel operations	10	300	0.70
Iron ore prices 1)	10	300	0.70
Coal prices 1)	10	210	0.50
Scrap metal prices	10	580	1.30
Interest rates	1 percentage point	130	0.30
Krona index 2)	5	330	0.80

1) Calculated based on the price level before any increase in the price of iron ore and coal this year.

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%.

Production and shipments

Thousand tonnes	1/09	2/09	3/09	4/09	1/10
Crude steel production
- SSAB EMEA	492	418	233	744	874
- SSAB Americas	280	278	514	594	585
- Total	772	696	747	1,338	1,459
Steel production 1)
- SSAB EMEA	372	441	285	652	738
- SSAB Americas	260	262	477	564	558
- Total	632	703	762	1,216	1,296
Steel shipments
- SSAB EMEA	344	341	295	495	547
- SSAB Americas	308	319	510	577	565
- SSAB APAC	26	25	25	33	70
- Total	678	685	830	1,105	1,182
of which
- AHSS, SSAB EMEA 2)	64	71	59	88	111
- Quenched steels, SSAB EMEA	63	29	29	46	59
- AHSS, SSAB Americas 2)	45	40	99	192	86
- Quenched steels, SSAB Americas	25	23	29	31	40
- AHSS, SSAB APAC 2)	11	10	11	14	19
- Quenched steels, SSAB APAC	15	15	13	19	25
- Total niche products	223	188	240	390	340

1) Including subcontract rolling.

2) Advanced high strength steels.

Consolidated income statement

	2010	2009	April 09 -	2009
SEK millions	Q1	Q1	March 10	Full year
Sales	8,865	8,035	30,668	29,838
Costs of goods sold	-8,055	-7,643	-29,432	-29,020
Gross profit	810	392	1,236	818
Selling and administrative costs	-627	-861	-2,818	-3,052
Other operating income and expenses 1)	-22	353	260	635
Affiliated companies, profit after tax	7	-18	32	7
Operating profit/loss	168	-134	-1,290	-1,592
Financial income	20	91	-21	50
Financial expenses	-105	-172	-452	-519
Profit/loss for the period after financial items	83	-215	-1,763	-2,061
Tax	69	368	883	1,182
Profit/loss for the period after tax for continuing opera
tions	152	153	-880	-879
Profit for the period after tax for discontinued operations 2)	-	-	-131	-131
Profit/loss for the period after tax	152	153	-1,011	-1,010
Of which attributable to:
- the parent company's shareholders	143	163	-1,022	-1,002
- non-controlling interests	9	-10	11	-8
Key ratios	2010	2009	April 09 -	2009
	Q1	Q1	March 10	Full year
Return on capital employed before tax (%)	-	-	neg	neg
Return on equity after tax (%)	-	-	neg	neg
Earnings per share (SEK) 3)	0.44	0.50	-3.16	-3.09
- of which continuing operations (SEK) 3)	0.44	0.50	-2.75	-2.69
Equity per share (SEK)	94.84	109.37	94.84	95.21
Equity ratio including non-controlling interests (%)	52	50	52	51
Net debt/equity ratio (%)	49	52	49	49
Average number of shares during the period (millions)	323.9	323.9	323.9	323.9
Number of shares at end of period (millions)	323.9	323.9	323.9	323.9
Average number of employees	-	-	8,169	8,334

1) The results for the quarter include primarily exchange rate profits/losses on operating receivables/liabilities of SEK -33 (132) million and sales of emission rights of SEK 0 (140) million.

2)'Discontinued operations' means the tubular business in North America divested in 2008. The preceding year's cost of SEK 131 million is a provision for warranty undertakings to the buyer.

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

Consolidated statement of comprehensive income

	2010	2009	April 09 -	2009
SEK millions	Q1	Q1	March 10	Full year
Profit/loss for the period after tax	152	153	-1,011	-1,010
Other comprehensive income
Translation differences for the period	76	2,369	-4,512	-2,219
Cash flow hedging	2	0	0	-2
Hedging of currency risks in foreign operations	-30	-1,102	1,547	475
Share in other comprehensive income of affiliated companies
and joint ventures	9	14	11	16
Tax attributable to other comprehensive income	7	290	-408	-125
Other comprehensive income for the period, net after tax	64	1,571	-3,362	-1,855
Total comprehensive income for the period	216	1,724	-4,373	-2,865
Of which attributable to:
- parent company's shareholders	207	1,732	-4,382	-2,857
- non-controlling interests	9	-8	9	-8

Consolidated statement of changes in equity

				Equity attributable to the parent company's shareholders
SEK millions	Share capital	Other con tributed funds	Reserves	Retained earnings	Total	Non controlling interests	Total equity
Equity, December 31, 2008	2,851	9,944	939	21,260	34,994	199	35,193
Changes Jan 1 – Mar 31, 2009 Comprehensive income for the period Dividend			1,569	163 -1,296	1,732 -1,296	-8 -30	1,724 -1,326
Equity, Mar 31, 2009	2,851	9,944	2,508	20,127	35,430	161	35,591
Changes Apr 1 – Dec 31, 2009 Comprehensive income for the period Dividend			-3,424	-1,165	-4,589 0		-4,589 0
Equity, December 31, 2009	2,851	9,944	-916	18,962	30,841	161	31,002
Changes Jan 1 – Mar 31, 2010 Comprehensive income for the period Dividend			55	152 -324	207 -324	9 -15	216 -339
Equity, Mar 31, 2010	2,851	9,944	-861	18,790	30,724	155	30,879

There were 323,934,775 shares with a quotient value of SEK 8.80.

Consolidated balance sheet

	Mar 31	Mar 31	Dec 31
SEK millions	2010	2009	2009
Assets
Goodwill	19,756	22,627	19,701
Other intangible assets	5,180	6,899	5,374
Tangible fixed assets	17,106	18,259	17,137
Participations in affiliated companies	365	367	348
Financial assets	55	59	55
Deferred tax receivables	243	267	164
Total fixed assets	42,705	48,478	42,779
Inventories	8,572	11,794	8,221
Accounts receivable	5,205	4,924	4,435
Current tax receivables	450	540	667
Other current receivables	729	1,233	665
Cash and cash equivalents	2,097	3,632	3,652
Total current assets	17,053	22,123	17,640
Total assets	59,758	70,601	60,419
Equity and liabilities
Equity for shareholders in the company	30,724	35,430	30,841
Non-controlling interests	155	161	161
Total equity	30,879	35,591	31,002
Deferred tax liabilities	5,151	6,031	5,283
Other non-current provisions	718	416	550
Non-current interest-bearing liabilities	14,912	19,060	14,878
Total non-current liabilities	20,781	25,507	20,711
Current interest-bearing liabilities	2,161	3,096	3,998
Current tax liabilities	140	131	96
Accounts payable	3,376	2,638	3,063
Other current liabilities	2,421	3,638	1,549
Total current liabilities	8,098	9,503	8,706
Total equity and liabilities	59,758	70,601	60,419

Cash flow
	2010	2009	April 09 -	2009
SEK millions	Q1	Q1	March 10	Full year
Operating profit/loss	168	-134	-1,290	-1,592
Adjustments for depreciation and impairment	611	652	2,465	2,506
Adjustment for other non-cash items	-13	-105	-358	-450
Received and paid interest	-74	-251	-334	-511
Tax paid	265	-1,050	372	-943
Change in working capital	-329	688	4,118	5,135
Cash flow from operations	628	-200	4,973	4,145
Capital expenditure payments	-356	-514	-1,754	-1,912
Divested companies and businesses	1	31	1	31
Other investing activities	26	72	164	210
Cash flow from investing activities	-329	-411	-1,589	-1,671
Dividend	-	-	-1,296	-1,296
Change in loans	-1,803	2,467	-5,029	-759
Change in financial investments	0	142	0	142
Other financing activities	-56	-1,099	1,499	456
Cash flow from financing activities	-1,859	1,510	-4,826	-1,457
Cash flow for the period	-1,560	899	-1,442	1,017
Cash and cash equivalents at beginning of period	3,652	2,713	3,632	2,713
Exchange rate difference in cash and cash equivalents	5	20	-93	-78
Cash and cash equivalents at end of period	2,097	3,632	2,097	3,652

The business areas' sales, earnings and return on capital employed

		Sales				Sales, external		Operating profit/loss		Return on capital employed (%) 4)
	2010	2009	Change	Change	2010	2009	2010	2009	Apr 09-	2009
SEK millions	Q1	Q1	in %	in % 3)	Q1	Q1	Q1	Q1	Mar 10	Full year
SSAB EMEA	4,836	4,414	10%	14%	3,709	3,544	214	-43	neg	neg
SSAB Americas	3,142	2,566	22%	40%	3,133	2,529	134	1	neg	neg
SSAB APAC	589	427	38%	47%	589	427	10	13	12	13
Tibnor	1,474	1,578	-7%	-6%	1,434	1,535	79	-82	7	neg
Amortization on surplus values 1)							-223	-263
Other 2)	-1,176	-950					-46	240	-	-
Total	8,865	8,035	10%	19%	8,865	8,035	168	-134	neg	neg

1) Depreciation and amortization on surplus values on intangible and tangible assets related to the acquisition of IPSCO.

2) "Other" includes a profit of SEK 0 (140) million on sales of emission rights.

3) Adjusted for changes in exchange rates.

4) SSAB's return is calculated based on operating profit including amortization on surplus values.

The Group's results per quarter

SEK millions	1/09	2/09	3/09	4/09	1/10
Sales	8,035	6,583	6,936	8,284	8,685
Operating expenses	-7,499	-6,911	-7,269	-7,252	-7,913
Depreciation	-652	-633	-611	-610	-611
Affiliated companies	-18	9	8	8	7
Financial items	-81	-144	-162	-82	-85
Profit/loss after financial
items	-215	-1 096	-1,098	348	83

Sales per quarter and business area

SEK millions	1/09	2/09	3/09	4/09	1/10
SSAB EMEA	4,414	3,551	3,168	4,119	4,836
SSAB Americas	2,566	1,943	2,909	3,295	3,142
SSAB APAC	427	492	341	323	589
Tibnor	1 578	1,319	1,122	1,267	1,474
Other	-950	-722	-604	-720	-1,176
Sales	8,035	6,583	6,936	8,284	8,865

Operating profit/loss per quarter and business area

SEK millions	1/09	2/09	3/09	4/09	1/10
SSAB EMEA	-43	-757	-1,078	185	214
SSAB Americas	1	-107	327	374	134
SSAB APAC	13	62	8	-13	10
Tibnor	-82	-11	62	-6	79
Amortization on surplus value 1)	-263	-248	-222	-209	-223
Other	240	109	-33	99	-46
Operating profit/loss	-134	-952	-936	430	168

1) Depreciation and amortization on surplus values on intangible and tangible assets related to the acquisition of IPSCO.

The Parent Company's income statement

	2010	2009	April 09 -	2009
SEK millions	Q1	Q1	March 10	Full year
Gross profit	0	0	0	0
Administrative expenses	-42	-49	-158	-165
Other operating income 1)	4	161	-35	122
Operating profit/loss	-38	112	-193	-43
Dividend from subsidiaries	85	412	104	431
Financial items	-59	-17	-298	-256
Profit/loss after financial items	-12	507	-387	132
Appropriations	0	0	5	5
Tax	20	-26	57	11
Profit/loss after tax	8	481	-325	148

The Parent Company's balance sheet

	Mar 31	Mar 31	Dec 31
SEK millions	2010	2009	2009
Assets
Fixed assets	36,813	36,796	36,786
Other current assets	10,711	13,828	10,109
Cash and cash equivalents	1,162	3,278	2,184
Total assets	48,686	53,902	49,079
Equity and liabilities
Restricted equity	3,753	3,753	3,753
Unrestricted equity	25,190	25,024	25,528
Total equity	28,943	28,777	29,281
Untaxed reserves	652	657	652
Non-current liabilities and provisions	15,166	19,250	14,957
Current liabilities 2)	3,925	5,218	4,189
Total equity and liabilities	48,686	53,902	49,079

1) "Other operating income" includes a profit of SEK 0 (140) million on sales of emission rights.

2) During April 2010, dividends were paid to the Company's shareholders in the amount of SEK 324 (1,296) million, which are booked as a liability in the accounts for the quarter.

For further information:

Helena Stålnert, Executive VP Communications Tel.+46 8 - 45 45 734 Catarina Ihre, Director, Investor Relations, Tel. +46 8 - 45 45 729

Half-yearly report:

The half-yearly report will be published on July 22, 2010.

SSAB AB (publ)

Box 70, 101 21 Stockholm, Sweden Telephone +46 8-45 45 700. Fax +46 8-45 45 725 Visiting address: Klarabergsviadukten 70 D6, Stockholm E-mail: info@ssab.com www.ssab.com