SSAB — Interim / Quarterly Report 2013

Oct 25, 2013

Report for the third quarter of 2013

The quarter

• Sales of SEK 8,375 (8,730) million
• Operating loss of SEK -598 (-665) million
• Loss after financial items of SEK -741 (-789) million
• Earnings per share of SEK -1.61 (-1.60)
• Operating cash flow of SEK 500 (843) million and cash flow from current operations of SEK 373 (697) million

Key numbers

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Sales	8,375	8,730	26,102	30,569	34,456	38,923
Operating profit/loss before depreciation/amortization	-1	4	1,049	2,510	1,030	2,491
Operating profit/loss	-598	-665	-849	569	-1,514	-96
Profit/loss after financial items	-741	-789	-1,292	149	-2,134	-693
Profit/loss after tax	-520	-519	-801	242	-1,028	15
Earnings per share (SEK)	-1.61	-1.60	-2.47	0.75	-3.17	0.05
Operating cash flow	500	843	1,381	3,678	2,632	4,929
Return on equity after tax (%)	-	-	-	-	-4	0
Net debt/equity ratio (%)	55	56	55	56	55	54
Equity ratio (%)	48	49	48	49	48	49

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

Comments by the CEO

Earnings in the third quarter improved slightly by almost SEK 70 million compared with the same quarter of last year. The improvement is primarily attributable to lower fixed and variable costs, higher volumes and improved capacity utilization, in total SEK 900 million. At the same time, earnings were negatively affected by weaker prices, product mix and currency effects, in total SEK 830 million. Cash flow continued to be positive during the third quarter and, so far this year, we have generated operating cash flows of SEK 1.4 billion and reduced our net debt by approximately SEK 500 million.

Global demand for steel during the third quarter was on the same level as during the second quarter, and SSAB's shipments were unchanged compared with the previous quarter. However, the product mix changed somewhat towards a higher percentage of standard steels as demand for niche products within the mining industry and construction machinery was weakening. Otherwise, the quarter was characterized by extensive summer outages and scheduled maintenance outages which affected the earnings of EMEA and Americas by, in total, approximately SEK 300 million. The maintenance outage in Americas was originally scheduled for the fourth quarter, but was moved to the third quarter in order to better utilize production capacity in the fourth quarter.

The gradual recovery in the US is beginning to impact on demand for steel and it has, to a certain extent, been possible to carry out the price increases previously announced in the third quarter. The trend as regards the European economy was unchanged during the quarter. The Chinese economy continues to grow, but we can note that our major customers still hold large stocks, a factor which has negatively affected demand for our products.

The efficiency program within EMEA has been carried out and we are continuing to focus strongly on cost efficiency. Also in Americas, work is taking place continuously to ensure that we maintain our position as the most cost-efficient plate producer in North America. In APAC, we are working actively to broaden the customer base and, so far this year, we have gained more than 500 new customers.

During the fourth quarter, we expect that the US economic recovery will have a positive impact on demand for steel. In the middle of October, SSAB Americas announced a price increase for plate of USD 30 per tonne. In Europe, demand and prices for steel is expected to remain unchanged but in Asia, demand for steel is expected to grow positively.

Sales per business area

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
SSAB EMEA	4,165	4,549	13,461	15,729	17,990	20,258
SSAB Americas	3,639	3,669	10,607	12,935	13,845	16,173
SSAB APAC	394	513	1,404	1,759	1,963	2,318
Tibnor	1,161	1,266	3,943	4,673	5,231	5,961
Other	-984	-1,267	-3,313	-4,527	-4,573	-5,787
Total	8,375	8,730	26,102	30,569	34,456	38,923

Operating/loss profit per business area

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
SSAB EMEA	-475	-644	-472	-385	-1,017	-930
SSAB Americas	53	251	91	1,458	201	1,568
SSAB APAC	-9	16	39	121	85	167
Tibnor	-6	-26	66	146	24	104
Depreciation/amortization on surplus values 1)	-151	-218	-558	-640	-779	-861
Other	-10	-44	-15	-131	-28	-144
Total	-598	-665	-849	569	-1,514	-96

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

Operating margin per business area

	2013	2012	2013	2012	Oct 12-	2012
%	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
SSAB EMEA	-11.4	-14.2	-3.5	-2.4	-5.7	-4.6
SSAB Americas	1.5	6.8	0.9	11.3	1.5	9.7
SSAB APAC	-2.3	3.1	2.8	6.9	4.3	7.2
Tibnor	-0.5	-2.1	1.7	3.1	0.5	1.7
Total	-7.1	-7.6	-3.3	1.9	-4.4	-0.2

Andel av extern försäljning 2013 Percentage of external sales 2013 Percentage of EBITDA 2013

Andel av EBITDA 2013

The market

According to the World Steel Association, global crude steel production during the first nine months of the year reached 1,186 (1,155) million tonnes, an increase of 3% compared with the same period last year. The Chinese crude steel production increased by 8% compared with the same period in 2012. Production fell by 4% in both EU28 and in North America.

Market prices in Europe for both strip and plate products increased slightly during the quarter. However, prices at the end of the third quarter were still at a much lower level than at the beginning of the year. Plate prices in North America increased slightly during the quarter. In China, market prices for both strip and plate products increased at the beginning of the third quarter but subsequently fell back again.

During the third quarter, inventory levels at distributors and customers were relatively stable in Europe and North America. The levels are now considered to be low, but in balance, and no restocking or destocking is expected during the coming quarter. In China, several customers still have a generally high inventory level, and many companies still need to reduce their stocks.

The World Steel Association has recently revised its forecast for global steel consumption in 2013 and 2014. For 2013, global consumption is expected to increase by 3.1% compared with 2012, and in 2014 it is expected to increase by a further 3.3%. There are, however, major geographic differences; consumption is expected to fall by almost 4% in EU28 during 2013, while consumption is expected to increase by 6% in China and by 0.2% in North America. The World Steel Association forecasts growth in all geographies in 2014, with consumption expected to increase by 2.1% in EU28, by 3.2% in North America, and in China by 3.0%.

Raw materials

During the second quarter, a new agreement was signed for deliveries of iron ore. The agreement extends from April 1, 2013 to March 31, 2014, but the price is set quarterly. For shipments during the third quarter, this meant a price increase of 6% in Swedish kronor compared with the second quarter of the year.

SSAB purchases approximately 60-70% of its annual coal needs from Australia, and the remainder from the US. Price agreements for Australian coal are signed monthly, while US coal is purchased under annual agreements. Since last year, Australian coal is purchased in pace with actual consumption and, as from June this year, this applies also to coking coal from the US. The price for coking coal for the third quarter entailed a decrease of 11% in Swedish kronor compared with the second quarter.

The US operations regularly purchase scrap metal as a raw material for their production. Spot prices for scrap metal increased at the beginning of the third quarter but then gradually fell back. Spot prices at the end of September were 2% higher than at the end of the second quarter of 2013, but 8% lower compared with the end of the third quarter of last year.

Prospects

In North America, the general growth in the economy is expected to impact positively on demand for steel during the fourth quarter. The economic stabilization in Europe has resulted in a reduction in the general uncertainty, and we expect an unchanged trend as regards demand for steel. In Asia, we anticipate positive growth in demand for steel. Inventory levels at customers and distributors in Europe and North America remain relatively low, and thus we do not anticipate a destocking similar to the one witnessed during the fourth quarter of last year. SSAB's shipment volumes in the fourth quarter are expected to be higher than in the third quarter. No maintenance outages are scheduled during the fourth quarter.

The Group

Nine-month summary

Shipments and production

SSAB's shipments during the first three quarters were in line with the first three quarters of last year and amounted to 3,255 (3,239) thousand tonnes. Shipments of niche products were also in line with the first three quarters of last year and amounted to 1,237 (1,238) thousand tonnes. All in all, during the first three quarters niche products accounted for 38 (38)% of total shipments.

Both crude steel production and steel production were 2% higher than in the first three quarters of last year.

Sales

Sales during the first three quarters amounted to SEK 26,102 (30,569) million. Compared with the first three quarters of last year, lower prices accounted for a negative effect of 10 percentage points currency effects for 3 percentage points, and a weaker mix for 3 percentage points, while higher volumes accounted for a positive effect of 1 percentage point.

Earnings

The operating profit/loss for the first three quarters amounted to SEK -849 (569) million.

Financial items for the first three quarters were SEK -443 (-420) million and earnings after financial items were SEK -1,292 (149) million.

Profit/loss after tax and earnings per share

Profit/loss after tax (attributable to the shareholders) for the first three quarters was SEK -801 (242) million, or SEK -2.47 (0.75) per share. Tax for the first three quarters was SEK 491 (93) million, which have mainly affected the deferred tax liability, which now amount to SEK 3.4 billion.

Financing and liquidity

The operating cash flow for the first three quarters was SEK 1,381 (3,678) million. Cash flow was positively affected by lower working capital, primarily due to reduced inventories and increased accounts payable, while increased accounts receivable had a negative effect.

Operating cash flow

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Operating profit/loss before depreciation/amortization	-1	4	1,049	2,510	1,030	2,491
Change in working capital	660	1,014	805	1,621	2,158	2,974
Maintenance expenditures	-153	-206	-402	-555	-622	-775
Other	-6	31	-71	102	66	239
Operating cash flow	500	843	1,381	3,678	2,632	4,929

Operating cash flow

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
SSAB EMEA	-166	163	701	1,782	1,179	2,260
SSAB Americas	490	551	295	1,823	862	2,390
SSAB APAC	158	121	290	-3	392	99
Tibnor	-10	4	103	197	284	378
Other	28	4	-8	-121	-85	-198
Operating cash flow	500	843	1,381	3,678	2,632	4,929
Financial items	-104	-119	-333	-353	-552	-572
Taxes	-23	-27	-162	-449	-145	-432
Cash flow from current operations	373	697	886	2,876	1,935	3,925
Strategic capital expenditures	-26	-137	-116	-557	-215	-656
Acquisitions of businesses and operations	-16	-29	-20	-30	-20	-30
Divestments of businesses and operations	-	-	69	31	69	31
Cash flow before dividend and financing	331	531	819	2,320	1,769	3,270
Dividend to the Parent Company's shareholders	-	-	-324	-648	-324	-648
Net cash flow	331	531	495	1,672	1,445	2,622
Net debt at beginning of period	-15,594	-17,446	-15,498	-18,475	-16,391	-18,475
Net cash flow	331	531	495	1,672	1,445	2,622
Revaluation of liabilities against equity 1)	503	668	165	532	243	610
Currency effects 2)	-208	-144	-130	-120	-265	-255
Net debt at end of period	-14,968	-16,391	-14,968	-16,391	-14,968	-15,498

1) Revaluation of hedging of currency risks in foreign operations.

2) Mainly consisting of cash flow effects on derivative instruments and revaluation of other financial liabilities in foreign currency.

Net cash flow for the first three quarters amounted to SEK 495 (1,672) million. Net cash flow was affected by, among other things, strategic capital expenditure payments of SEK 116 (557) million and dividend of SEK 324 (648) million. Currency effects had a positive impact on net debt in the amount of SEK 35 million during the first three quarters and net debt thereby decreased by SEK 530 million and, on September 30, amounted to SEK 14,968 million. The net debt/equity ratio was 55%.

As of September 30, the term to maturity on the total loan portfolio averaged 4.2 (5.0) years, with an average fixed interest period of 1.0 (1.2) years. The average term to maturity excluding commercial paper was 4.3 (5.2) years.

The Group's liquidity preparedness

	2013	2012
SEK millions 30 Sept		30 Sept
Cash and cash equivalents	2,193	2,166
Committed credit facilities, net	7,438	8,700
Liquidity preparedness	9,631	10,866
-as a percentage of annual sales (rolling 12 months)	28%	26%
Less commercial paper	-306	-946
Liquidity preparedness excluding commercial paper	9,325	9,920
- as percentage of annual sales (rolling 12 months)	27%	24%

Return on capital employed/equity

The return on capital employed before tax and return on equity after tax for the most recent twelvemonth period were -3% and -4% respectively, while for the full year of 2012 both amounted to 0%.

Equity

After deduction of earnings attributable to the Company's shareholders of SEK -801 million for the first three quarters and other comprehensive income (primarily comprising currency translation differences) of SEK -383 million, and after deduction of dividends amounting to SEK 324 million, the shareholders' equity in the Company amounted to SEK 27,261 (29,225) million, which was SEK 1,508 million lower than at the beginning of the year. Shareholders' equity amounted to SEK 84.15 (90.22) per share.

Capital expenditures

Capital expenditure payments during the first three quarters amounted to SEK 518 (1,112) million, of which SEK 116 (557) million involved strategic capital expenditures. Business acquisitions during the first three quarters amounted to SEK 20 (30) million.

Development during the third quarter

Shipments and production

SSAB's shipments during the seasonally weak third quarter were unchanged (-1%) compared with the second quarter of 2013, but were 12% higher than in the third quarter of 2012 and amounted to 1,070 (956) thousand tonnes. Shipments of niche products were 10% lower than in the second quarter of 2013 but 6% higher than in the third quarter of 2012. All in all, during the third quarter niche products accounted for 36 (38)% of total shipments.

Crude steel production fell by 2% compared with the second quarter of 2013 but increased by 25% compared with the third quarter of last year. Steel production declined by 1% compared with the second quarter of 2013 but was 17% up on the third quarter of last year.

Sales

Sales during the third quarter amounted to SEK 8,375 (8,730) million, a reduction of 4% compared with the third quarter of last year. Lower prices accounted for a negative effect of 10 percentage points, a weaker mix for 4 percentage points and currency effects for 2 percentage points, while higher volumes accounted for a positive effect of 12 percentage points compared with the third quarter of 2012. 0

Earnings

The operating loss during the third quarter amounted to SEK -598 (-665) million, an improvement of SEK 67 million compared with the third quarter of last year. The improved result is primarily attributable to lower variable costs (SEK 340 million), higher capacity utilization (SEK 200 million), higher volumes (SEK 150 million) and lower fixed costs and depreciation/amortization (SEK 130 million). The efficiency program within EMEA has had a positive impact on variable as well as fixed costs during the quarter. However, earnings were negatively affected by lower prices and a weaker product mix (SEK -760 million) and negative currency effects (SEK -70 million).

Financial items for the third quarter amounted to SEK -143 (-124) million and earnings after financial items were SEK -741 (-789) million.

-1 000

Profit/loss after tax and earnings per share

Loss after tax (attributable to the shareholders) for the third quarter amounted to SEK -520 (-519) million or SEK -1.61 (-1.60) per share. Tax for the third quarter was SEK 221 (270) million.

Financing and liquidity

The operating cash flow for the third quarter was SEK 500 (843) million. Cash flow was positively affected by a reduction in working capital, primarily due to seasonally reduced accounts receivable and inventories.

Net cash flow amounted to SEK 331 (531) million. The net cash flow was affected by, among other things, strategic capital expenditure payments of SEK 26 (137) million (total capital expenditures amounted to SEK 179 (343) million). Business acquisitions during the quarter amounted to SEK 16 (29) million. The net debt decreased by SEK 626 million during the third quarter and, on September 30, amounted to SEK 14,968 million. The net debt/equity ratio was 55%.

SSAB EMEA

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Sales	4,165	4,549	13,461	15,729	17,990	20,258
Operating profit/loss	-475	-644	-472	-385	-1,017	-930
Operating cash flow	-166	163	701	1,782	1,179	2,260
Number of employees at end of period	6,084	6,486	6,084	6,486	6,084	6,504

Demand during the seasonally weak third quarter was slow, with a "wait and see" approach from the customers, especially as regards niche products. However, the Automotive segment remained stable. A number of orders for standard steels have been supplied in order to maintain capacity utilization.

The external steel shipments during the third quarter declined by 14% compared with the second quarter of 2013 but were 8% higher than in the third quarter of 2012 and amounted to 407 (378) thousand tonnes. Shipments of niche products declined by 17% compared with the second quarter of 2013 but were unchanged compared with the third quarter of 2012 and amounted to 186 (186) thousand tonnes. Shipments of niche products thereby accounted for 46 (49)% of total shipments.

In local currency, during the third quarter prices of niche products fell by 2%, and prices of standard steels fell by 5%, compared with the second quarter of 2013.

Crude steel production declined by 9% compared with the second quarter of 2013 but was up 33% compared with third quarter of last year. Steel production was 11% lower than in the second quarter of 2013 but 20% higher than in the third quarter of last year.

Sales declined by 8% compared with the third quarter of 2012 and amounted to SEK 4,165 (4,549) million. Lower prices accounted for a negative effect of 7 percentage points, a weaker mix for 7 percentage points and negative currency effects for 2 percentage points, while higher volumes accounted for a positive effect of 8 percentage points.

The operating loss for the quarter was SEK -475 (-644) million, which was affected by the summer outage. The result was an improvement of SEK 169 million compared with the third quarter of last year. Lower variable costs and improved capacity utilization were the primary reasons for the improved result.

The operating cash flow during the third quarter was SEK -166 (163) million. The negative operating loss was partly compensated by lower working capital.

Capital expenditure payments during the quarter amounted to SEK 115 (170) million, of which SEK 2 (6) million involved strategic capital expenditures.

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Sales	3,639	3,669	10,607	12,935	13,845	16,173
Operating profit 1)	53	251	91	1,458	201	1,568
Operating cash flow	490	551	295	1,823	862	2,390
Number of employees at end of period	1,479	1,391	1,479	1,391	1,479	1,394

SSAB AMERICAS

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

Demand from the Energy segment was good during the quarter, while demand from other segments was in line with the second quarter.

During the third quarter, external shipments of steel were 9% higher than in the second quarter of 2013 and 16% higher than in the third quarter of 2012. Steel shipments amounted to 628 (540) thousand tonnes. Shipments of niche products were 2% lower than in the second quarter of 2013 but 16% higher than in the third quarter of last year. Shipments of niche products amounted to 166 (143) thousand tonnes and thereby accounted for 26 (26)% of total shipments.

In local currency, prices of niche steels were unchanged compared with the second quarter of 2013, while prices of standard steels were 3% lower.

Crude steel production was 8% higher than in the second quarter of 2013 and 17% higher than in the third quarter of 2012. Steel production was 9% higher than in the second quarter of 2013 and 14% higher than in the third quarter of 2012.

Sales during the third quarter were 1% lower than in the third quarter of 2012 and amounted to SEK 3,639 (3,669) million. Lower prices accounted for a negative effect of 11 percentage points, negative currency effects for 4 percentage points and a weaker product mix for 2 percentage points, while higher volumes accounted for a positive effect of 16 percentage points.

The operating profit for the quarter was SEK 53 (251) million, a decrease of SEK 198 million compared with the third quarter of 2012. The weaker result is attributable primarily to lower prices and a weaker product mix as well as the maintenance outage in Mobile.

The operating cash flow during the third quarter was SEK 490 (551) million. Cash flow was positively affected by, primarily, a reduction in working capital.

Capital expenditure payments during the quarter amounted to SEK 61 (128) million, of which SEK 24 (101) million involved strategic capital expenditures.

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Sales	394	513	1,404	1,759	1,963	2,318
Operating profit/loss	-9	16	39	121	85	167
Operating cash flow	158	121	290	-3	392	99
Number of employees at end of period	202	220	202	220	202	220

SSAB APAC

Demand within APAC remained weak also during the third quarter. Demand increased somewhat within Automotive, but weakened in other segments.

External shipments of niche products fell by 8% compared with the second quarter of 2013 and by 6% compared with the third quarter of last year. Shipments of niche products amounted to 34 (36) thousand tonnes and accounted for 97 (95)% of total shipments. The decline is due to high inventory levels at customers and increased competition from local Asian producers as regards less advanced niche products.

Prices of niche steels in local currencies were 1% lower than in the second quarter of 2013.

Sales declined by 23% compared with the third quarter of 2012 and amounted to SEK 394 (513) million. Lower prices accounted for a negative effect of 8 percentage points, lower volumes accounted for a negative effect of 7 percentage points, a weaker product mix for 4 percentage points, and currency effects for a negative effect of 4 percentage points.

The operating profit/loss for the quarter was SEK -9 (16) million, a decline of SEK 25 million compared with the third quarter of 2012. The weaker result is attributable primarily to lower volumes and lower prices.

The operating cash flow during the third quarter amounted to SEK 158 (121) million. The cash flow was positively affected by lower working capital, primarily due to reduced inventories.

Capital expenditure payments during the quarter amounted to SEK 1 (30) million, of which SEK 0 (30) million involved strategic capital expenditures.

Tibnor

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Sales	1,161	1,266	3,943	4,673	5,231	5,961
Operating profit/loss	-6	-26	66	146	24	104
Operating cash flow	-10	4	103	197	284	378
Number of employees at end of period	781	800	781	800	781	797

During the seasonally weak third quarter, total shipments fell by 17% compared with the second quarter of 2013 but were unchanged compared with the third quarter of last year. The strip and rebar product groups demonstrated an increase in shipments compared with the third quarter of 2012.

Sales were 8% lower than in the third quarter of 2012 and amounted to SEK 1,161 (1,266) million, attributable to lower prices.

The operating loss for the third quarter was SEK -6 (-26) million, an improvement of SEK 20 million compared with the third quarter of 2012. The improved result is attributable primarily to better margins.

The operating cash flow for the third quarter was SEK -10 (4) million. Cash flow was negatively affected by an increase in working capital.

Risks and uncertainties

For information regarding material risks and uncertainty factors, reference is made to the detailed description in the 2012 Annual Report. No material new or changed risks and uncertainty factors were identified during the quarter.

Accounting principles

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

The accounting principles 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 and the Annual Accounts Act.

The application of the new IFRS 13, "Fair Value" and amendments to IFRS 7, "Financial Instruments: Disclosures" has entailed the disclosure of additional information regarding financial instruments; see page 14. Otherwise no material changes in accounting principles have taken place since the annual report for 2012.

Review report

This quarterly report has not been subject to review by the auditors.

Stockholm, October 24, 2013

Martin Lindqvist President and CEO

Consolidated income statement

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Sales	8,375	8,730	26,102	30,569	34,456	38,923
Cost of goods sold	-8,231	-8,494	-24,850	-27,911	-33,068	-36,129
Gross profit	144	236	1,252	2,658	1,388	2,794
Selling and administrative costs	-668	-676	-2,127	-2,140	-2,963	-2,976
Other operating income and expenses 1)	-72	-228	16	20	50	54
Affiliated companies, profit after tax	-2	3	10	31	11	32
Operating profit/loss	-598	-665	-849	569	-1,514	-96
Financial income	15	22	42	55	48	61
Financial expenses	-158	-146	-485	-475	-668	-658
Profit/loss for the period after financial items	-741	-789	-1,292	149	-2,134	-693
Tax	221	270	491	93	1,106	708
Profit/loss for the period after tax	-520	-519	-801	242	-1,028	15
Of which attributable to:
- the Parent Company's shareholders	-520	-519	-801	242	-1,028	15
- non-controlling interests	0	-	0	-	0	-

Key numbers	2013	2012	2013	2012	Oct 12-	2012
	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Operating margin (%)	-7	-8	-3	2	-4	0
Return on capital employed before tax (%)	-	-	-	-	-3	0
Return on equity after tax (%)	-	-	-	-	-4	0
Earnings per share (SEK) 2)	-1.61	-1.60	-2.47	0.75	-3.17	0.05
Equity per share (SEK)	84.15	90.22	84.15	90.22	84.15	88.81
Equity ratio (%)	48	49	48	49	48	49
Net debt/equity ratio (%)	55	56	55	56	55	54
Average number of shares during the period (millions)	323.9	323.9	323.9	323.9	323.9	323.9
Number of shares at end of period (millions)	323.9	323.9	323.9	323.9	323.9	323.9
Number of employees at end of period	8,723	9,039	8,723	9,039	8,723	8,978

1) The results for the quarter include primarily currency effects on operating receivables/liabilities of SEK -66 (-162) million. Last year, costs were included in respect of SSAB EMEA's efficiency program, SEK - (-55) million.

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

Consolidated statement of comprehensive income

					2012
Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
					15
-1,462	-1,939	-505	-1,526	-729	-1,750
50	41	12	-5	-67	-84
503	668	165	532	243	610
					3
					-138
					-1,359
					-10
					3
					-7
					-1,366
					-1,351
					-1,351
					-
	2013 -520 -9 -121 -1,039 - - - -1,039 -1,559 -1,559 0	2012 -519 -4 -187 -1,421 - - - -1,421 -1,940 -1,940 -	2013 -801 -16 -39 -383 - - - -383 -1,184 -1,184 0	2012 242 1 -139 -1,137 - - - -1,137 -895 -895 -	Oct 12- -1,028 -14 -38 -605 -10 3 -7 -612 -1,640 -1,640 0

1) Hedging is structured such that the net debt/equity ratio is unchanged in the event of changed exchange rates

Consolidated statement of changes in equity

		Equity attributable to the Parent Company's shareholders
SEK millions	Share capital	Other contributed funds	Reserves	Retained earnings	Total equity	Non controlling interests	Total equity
Equity, December 31, 2011	2,851	9,944	-1,769	19,742	30,768	-	30,768
Changes Jan 1 - Sep 30, 2012 Comprehensive income for the period Dividend			-1,137	242 -648	-895 -648	- -	-895 -648
Equity, September 30, 2012	2,851	9,944	-2,906	19,336	29,225	-	29,225
Changes Oct 1 - Dec 31, 2012 Comprehensive income for the period			-222	-234	-456	-	-456
Equity, December 31, 2012	2,851	9,944	-3,128	19,102	28,769	-	28,769
Changes 1 Jan - Sep 30, 2013 Comprehensive income for the period Non-controlling interests resulting from			-383	-801	-1,184	-	-1,184
business acquisitions					-	23	23
Dividend				-324	-324	-	-324
Equity, September 30, 2013	2,851	9,944	-3,511	17,977	27,261	23	27,284

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

Consolidated balance sheet

	30 Sept	30 Sept	31 Dec
SEK millions	2013	2012	2012
Assets
Goodwill	17,613	18,017	17,882
Other intangible assets	2,226	2,951	2,734
Tangible fixed assets	16,596	17,889	17,610
Participations in affiliated companies	280	332	327
Financial assets 1)	1,776	78	1,035
Deferred tax receivables 2)	888	1,038	668
Total fixed assets	39,379	40,305	40,256
Inventories	8,803	10,140	9,435
Accounts receivable	5,003	4,979	4,383
Current tax receivables	329	321	426
Other current receivables	763	1,388	1,115
Cash and cash equivalents	2,193	2,166	3,004
Total current assets	17,091	18,994	18,363
Total assets	56,470	59,299	58,619

Equity and liabilities

Equity for shareholders in the Company	27,261	29,225	28,769
Non-controlling interests	23	-	-
Total equity	27,284	29,225	28,769
Deferred tax liabilities	3,363	4,655	3,820
Other long-term provisions	270	283	306
Deferred income 2)	452	516	456
Long-term interest-bearing liabilities	17,578	17,203	18,267
Total long-term liabilities	21,663	22,657	22,849
Short-term interest-bearing liabilities	1,262	1,218	1,115
Current tax liabilities	188	238	243
Accounts payable	4,162	3,542	3,470
Other current liabilities	1,911	2,419	2,173
Total current liabilities	7,523	7,417	7,001
Total equity and liabilities	56,470	59,299	58,619
Pledged assets 3)	2,122	39	242
Contingent liabilities	587	630	594

1) Financial assets include long-term bank deposits (escrow agreement) in the amount of USD 270 (-) million.

2) Of the deferred tax receivable, SEK 452 (516) million constitutes a valuation of the future tax credits regarding investments in Alabama, USA. Since the credits have not yet been booked as income, a corresponding liability has been booked as a Long-term non-interest-bearing liability.

3) The increase in pledged assets primarily comprises surplus liquidity in the Belgian finance company which is pledged to the benefit of other Group companies.

Valuation of financial assets and liabilities

Financial assets and liabilities in the balance sheet are valued based on their classification at acquisition value or fair value. Both interest rate derivatives and currency derivatives are valued at fair value. In the balance sheet item "Other current receivables" derivatives are valued at a total of SEK 165 million and in the balance sheet item "Other current liabilities" derivatives are valued at a total of SEK 123 million.

Other financial assets and liabilities in the balance sheet are reported at acquisition value. In the case of valuation at fair value, the loans at fixed interest reported in the balance sheet item "Long-term interest-bearing liabilities" would exceed the reported amount by SEK 454 million; however, since the loans will be held until maturity, this does not affect the reported value.

Assessment of fair value of financial instruments

The classification shall take place hierarchically on three different levels based on the input data used in valuing instruments. On level 1, listed prices on an active market are used, e.g. stock exchange prices. On level 2, observable market data regarding assets and liabilities other than listed prices are used, e.g. interest rates and return curves. On level 3, the fair value is determined based on a valuation technique which is based on assumptions which are not based on prices or observable data.

The fair value valuation of the financial assets in SSAB in based on data in accordance with level 2.

Cash flow

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Operating profit/loss	-598	-665	-849	569	-1,514	-96
Adjustments for depreciation and impairment	596	668	1,897	1,940	2,543	2,586
Adjustment for other non-cash items	-18	9	-86	88	19	193
Received and paid interest	-104	-119	-333	-353	-552	-572
Tax paid	-23	-27	-162	-449	-146	-433
Change in working capital	660	1,014	805	1,621	2,158	2,974
Cash flow from operating activities	513	880	1,272	3,416	2,508	4,652
Capital expenditure payments	-179	-343	-518	-1,112	-837	-1,431
Acquisitions, businesses and operations	-16	-29	-20	-30	-20	-30
Divested businesses and operations	-	-	69	31	69	31
Other investing activities	12	23	16	15	49	48
Cash flow from investing activities	-183	-349	-453	-1,096	-739	-1,382
Dividend	-	-	-324	-648	-324	-648
Change in loans	17	-516	-409	-1,711	701	-601
Change in financial investments	-3	24	-758	330	-1,663	-575
Other financing activities	-99	253	-81	255	-324	12
Cash flow from financing activities	-85	-239	-1,572	-1,774	-1,610	-1,812
Cash flow for the period	245	292	-753	546	159	1,458
Cash and cash equivalents at beginning of period	2,046	1,900	3,004	1,648	2,166	1,648
Exchange rate difference in cash and cash equivalents	-98	-26	-58	-28	-132	-102
Cash and cash equivalents at end of period	2,193	2,166	2,193	2,166	2,193	3,004

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

	Sales					Sales, external		Operating profit/loss	Return on capital employed (%) 3)
	2013	2012	Change		2013	2012	2013	2012	Oct 12-	2012
SEK millions	Qs 1-3	Qs 1-3	in %	in % 2)	Qs 1-3	Qs1-3	Qs 1-3	Qs 1-3	Sep 13	Full year
SSAB EMEA	13,461	15,729	-14%	-11%	10,312	11,559	-472	-385	-7	-6
SSAB Americas	10,607	12,935	-18%	-14%	10,562	12,708	91	1 458	3	18
SSAB APAC	1,404	1,759	-20%	-16%	1,404	1,759	39	121	6	11
Tibnor	3,943	4,673	-16%	-15%	3,824	4,543	66	146	2	7
Amortization on							-558	-640
surplus values 1)
Other	-3,313	-4,527					-15	-131	-	-
Total	26,102	30,569	-15%	-12%	26,102	30,569	-849	569	-3	0

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

2) Adjusted for changes in exchange rates.

3) SSAB Americas' return is calculated excluding surplus values. Inclusive of surplus values, the returns are -2% and 2% respectively.

The Group's results per quarter

items	509	1,186	401	-98	329	609	-789	-842	-278	-273	-741
Profit/loss after financial
Financial items	-112	-144	-110	-148	-150	-146	-124	-177	-142	-158	-143
Affiliated companies	5	23	4	12	7	21	3	1	-1	13	-2
Depreciation	-572	-561	-585	-627	-629	-643	-668	-646	-644	-657	-596
Operating expenses	-9,868	-9,901	-9,825	-10,233	-9,922	-9,439	-8,730	-8,374	-8,324	-8,365	-8,375
Sales	11,056	11,769	10,917	10,898	11,023	10,816	8,730	8,354	8,833	8,894	8,375
SEK millions	1/11	2/11	3/11	4/11	1/12	2/12	3/12	4/12	1/13	2/13	3/13

Sales per quarter and business area

SEK millions	1/11	2/11	3/11	4/11	1/12	2/12	3/12	4/12	1/13	2/13	3/13
SSAB EMEA	6,071	6,386	5,491	5,820	5,780	5,400	4,549	4,529	4,573	4,723	4,165
SSAB Americas	3,984	4,403	4,505	4,207	4,609	4,657	3,669	3,238	3,460	3,508	3,639
SSAB APAC	690	788	625	708	585	661	513	559	555	455	394
Tibnor	1,951	1,957	1,637	1,699	1,771	1,636	1,266	1,288	1,366	1,416	1,161
Other	-1,640	-1,765	-1,341	-1,536	-1,722	-1,538	-1,267	-1,260	-1,121	-1,208	-984
Sales	11,056	11,769	10,917	10,898	11,023	10,816	8,730	8,354	8,833	8,894	8,375

Operating profit/loss per quarter and business area

SEK millions	1/11	2/11	3/11	4/11	1/12	2/12	3/12	4/12	1/13	2/13	3/13
SSAB EMEA	236	664	-3	-248	-124	383	-644	-545	-53	56	-475
SSAB Americas	383	651	661	414	670	537	251	110	87	-49	53
SSAB APAC	102	67	59	96	65	40	16	46	42	6	-9
Tibnor Amortization on surplus	128	99	12	15	105	67	-26	-42	15	57	-6
values 1)	-189	-183	-189	-197	-197	-225	-218	-221	-201	-206	-151
Other	-39	32	-29	-30	-40	-47	-44	-13	-26	21	-10
Operating profit/loss	621	1,330	511	50	479	755	-665	-665	-136	-115	-598

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

The Parent Company's income statement

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Gross profit	0	0	0	0	0	0
Administrative expenses	-29	-59	-132	-193	-184	-245
Other operating income/expenses	21	30	113	74	142	103
Operating profit/loss	-8	-29	-19	-119	-42	-142
Dividend from subsidiaries	10	7	80	1,076	87	1,083
Financial items	-91	-81	-275	-240	-360	-325
Profit/loss after financial items	-89	-103	-214	717	-315	616
Appropriations	-	-	-	-	-105	-105
Tax	21	28	64	92	132	160
Profit/loss after tax	-68	-75	-150	809	-288	671

The Parent Company's statement of comprehensive income

	2013	2012	2013	2012	Oct 12-	2012
SEK millions	Q 3	Q 3	Qs 1-3	Qs 1-3	Sept 13	Full year
Profit/loss after tax	-68	-75	-150	809	-288	671
Other comprehensive income
Items which will be reclassified to the income statement
Hedging of currency risks in foreign operations	503	668	165	532	243	610
Cash flow hedges	21	-8	24	-16	12	-28
Tax attributable to other comprehensive income	-114	-174	-41	-136	-61	-156
Total items which will be reclassified to the income statement	410	486	148	380	194	426
Other comprehensive income, net after tax	410	486	148	380	194	426
Total comprehensive income for the year	342	411	-2	1,189	-94	1,097

The Parent Company's balance sheet

	30 Sept	30 Sept	31 Dec
SEK millions	2013	2012	2012
Assets
Fixed assets	39,323	39,355	39,264
Other current assets	10,760	12,503	12,809
Cash and cash equivalents	216	1,563	539
Total assets	50,299	53,421	52,612
Equity and liabilities
Restricted equity	3,753	3,753	3,753
Unrestricted equity	26,977	27,395	27,303
Total equity	30,730	31,148	31,056
Untaxed reserves	175	661	175
Long-term liabilities and provisions	15,823	15,673	16,455
Current liabilities and provisions	3,571	5,939	4,926
Total equity and liabilities	50,299	53,421	52,612

Production and shipments
Thousand tonnes	1/11	2/11	3/11	4/11	1/12	2/12	3/12	4/12	1/13	2/13	3/13
Crude steel production
- SSAB EMEA	943	957	612	741	832	867	551	713	744	805	732
- SSAB Americas	631	624	607	556	624	609	540	517	610	584	632
-Total	1,574	1,581	1,219	1,297	1,456	1,476	1,091	1,230	1,354	1,389	1,364
Steel production 1)
- SSAB EMEA	765	755	506	591	638	664	466	491	624	625	559
- SSAB Americas	592	579	563	537	591	571	516	487	574	541	590
-Total	1,357	1,334	1,069	1,128	1,229	1,235	982	978	1,198	1,166	1,149
Steel shipments
- SSAB EMEA	571	556	418	455	511	437	378	373	469	474	407
- SSAB Americas	623	628	612	579	622	626	540	530	587	574	628
- SSAB APAC	57	64	46	52	41	46	38	42	44	37	35
-Total	1,251	1,248	1,076	1,086	1,174	1,109	956	945	1,100	1,085	1,070
of which niche products
- SSAB EMEA	233	244	187	190	227	215	186	172	200	223	186
- SSAB Americas	170	154	171	150	193	154	143	135	179	170	166
- SSAB APAC	56	61	45	52	39	45	36	40	42	37	34
-Total niche products	459	459	403	392	459	414	365	347	421	430	386

1) Including subcontract rolling.

Note:

This report has been published in Swedish and English. In the event of differences between the English translation and the Swedish original, the Swedish Report shall prevail.

For further information:

Maria Långberg, Executive VP Communications Tel. +46 8-45 45 727 Catarina Ihre, Director, Investor Relations, Tel. +46 8-45 45 729

Results for 2013

The results for 2013 will be published on February 7, 2014.

SSAB AB (publ)

Box 70, SE-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