SSAB — Interim / Quarterly Report 2013

Apr 25, 2013

Report for the first quarter of 2013

The quarter

• Sales of SEK 8,833 (11,023) million
• Operating profit/loss of SEK -136 (479) million
• Profit/loss after financial items of SEK -278 (329) million
• Earnings per share of SEK -0.42 (0.87)
• Operating cash flow of SEK 85 (1,887) million and cash flow from current operations of SEK -111 (1,684) million

Key numbers

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Sales	8,833	11,023	36,733	38,923
Operating profit before depreciation/amortization	508	1,108	1,891	2,491
Operating profit/loss	-136	479	-711	-96
Profit/loss after financial items	-278	329	-1,300	-693
Profit/loss after tax	-137	281	-403	15
Earnings per share (SEK)	-0.42	0.87	-1.24	0.05
Operating cash flow	85	1,887	3,127	4,929
Return on equity after tax (%)	-	-	-1	0
Net debt/equity ratio (%)	55	57	55	54
Equity ratio (%)	49	49	49	49

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

Comments by the CEO

The economic activity in North America and Asia strengthened somewhat while, as expected, the trend in Europe was very weak. The first quarter was characterized by a degree of restocking by customers, which had a positive impact on SSAB's volumes within all business areas. Prices of SSAB's products were marginally lower during the quarter. Variable as well as fixed costs were lower during the quarter. In North America, margins were negatively affected by the fact that scrap metal prices remained at a relatively high level.

During the quarter, we completed all parts of the previously announced efficiency program. This will gradually have an impact during the year, reaching full effect in 2014. At the same time, a majority of the employees in the Swedish operations have continued with reduced work hours and pay. One of the blast furnaces in Oxelösund was idle also during the first quarter and production otherwise has been adapted to demand. Cash flow continued to be positive and work is continuing on increasing working capital efficiency.

The second quarter will be characterized by continued weak growth in Europe, although we do perceive a degree of recovery on the Nordic markets, a slow recovery in the U.S and a continued solid demand in Latin America. The scheduled maintenance outage at our operations in Montpelier, Iowa will reduce earnings by approximately SEK 150 million. Our total volumes in the second quarter are expected to be somewhat higher than in the first quarter.

Sales per business area

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
SSAB EMEA	4,573	5,780	19,051	20,258
SSAB Americas	3,460	4,609	15,024	16,173
SSAB APAC	555	585	2,288	2,318
Tibnor	1,366	1,771	5,556	5,961
Other	-1,121	-1,722	-5,186	-5,787
Total	8,833	11,023	36,733	38,923

Operating profit/loss per business area

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
SSAB EMEA	-53	-124	-859	-930
SSAB Americas	87	670	985	1,568
SSAB APAC	42	65	144	167
Tibnor	15	105	14	104
Depreciation/amortization on surplus values 1)	-201	-197	-865	-861
Other	-26	-40	-130	-144
Total	-136	479	-711	-96

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

Operating margin per business area

	2013	2012	Apr 12-	2012
%	Q 1	Q 1	Mar 13	Full year
SSAB EMEA	-1.2	-2.1	-4.5	-4.6
SSAB Americas	2.5	14.5	6.6	9.7
SSAB APAC	7.6	11.1	6.3	7.2
Tibnor	1.1	5.9	0.3	1.7
Total	-1.5	4.3	-1.9	-0.2

Percentage of sales 2013

Percentage of EBITDA 2013

The market

According to the World Steel Association, global crude steel production during the first quarter of the year amounted to 387 (379) million tonnes, an increase of 2% compared with the same period last year. The Chinese crude steel production increased by 9% during the first quarter of the year compared with the same period in 2012. Production in EU27 declined by 5% and in North America by 6%.

Following the price increase for both strip and plate products since November last year, market prices for plate in Europe came under pressure early in the quarter, while prices for strip began to decline in the latter part of the quarter. Plate prices in North America bottomed out in February and, since then, have increased somewhat as several producers have announced price increases. In China, market prices for plate steel increased slightly during most of the quarter, but declined towards the end of the quarter. Prices of strip steel in China took a downward turn during the second half of the quarter. A degree of restocking by customers took place during the first quarter, which contributed to SSAB's shipments within all business areas being higher than in the preceding quarter.

As a consequence of restocking by customers in Europe and North America during the first quarter, their inventories are now considered to be at normal levels. In China, inventory levels declined during the quarter and, within certain segments, inventories are now at a normal level. The stimulus package announced by the Chinese government has not yet had any appreciable impact on demand for steel. In other parts of the world, the market has been relatively stable.

Raw materials

Due to a price clause in SSAB's iron ore purchase agreement, the price in USD has been reduced by 23% from October 1, 2012 until the expiration of the contract term on March 31, 2013. The price reduction has impacted earnings in the first quarter of 2013. No new price agreement has yet been signed regarding iron ore deliveries as from the second quarter.

SSAB purchases approximately 60 - 70% of its annual coal needs from Australia, and the remainder from the US. Coal agreements for deliveries from the US take place on an annual basis and, during the first quarter, the final delivery was received under the 2012 price agreement. No new price agreement has yet been signed regarding deliveries in 2013.

Price agreements for Australian coal are signed on a monthly basis. The Australian coal is purchased in pace with actual consumption. Consumption of Australian coal during the first quarter entailed price reductions in USD of 6% compared with the fourth quarter of last year. The lower prices will begin to impact earnings during the second quarter of 2013.

The US operations regularly purchase scrap metal as a raw material for their production. Spot prices for scrap metal were volatile during the quarter. Spot prices at the end of March were 5% higher than at the end of the fourth quarter of last year, but 7% lower compared with the end of the first quarter of 2012.

Prospects

Due to the economic and political instability in many countries, it remains difficult to assess demand. The restocking by customers who took place during the first quarter is expected to come to an end during the second quarter. The maintenance outage in Montpelier will negatively affect volumes in Americas and will in total impact the second quarter negatively by approximately SEK 150 million. However, SSAB's volumes are expected to be somewhat higher than in the first quarter.

The Group

Development during the first quarter

Shipments and production

SSAB's shipments during the first quarter increased by 16% compared with the fourth quarter of 2012 but were 6% lower than in the first quarter of 2012 and amounted to 1,100 (1,174) thousand tonnes. Shipments of niche products increased by 21% compared with the fourth quarter of 2012 but were 8% lower than in the first quarter of 2012. All in all, during the first quarter niche products accounted for 38 (39)% of total shipments.

Crude steel production was up 10% and steel production increased by 22% compared with the fourth quarter of 2012, but were 7% and 3% lower respectively compared with the first quarter.

Sales

Sales during the first quarter amounted to SEK 8,833 (11,023) million, a reduction of 20% compared with the first quarter of last year. Lower prices accounted for a negative effect of 10 percentage points, lower volumes for 5 percentage points, a weaker mix for 2 percentage points, and currency effects for 3 percentage points, compared with the first quarter of 2012.

Earnings

Operating profit/loss during the first quarter was SEK -136 (479) million, a fall of SEK -615 million compared with the first quarter of last year. Lower prices (SEK -850 million), lower volumes (SEK -150 million), currency effects (SEK -150 million) and lower capacity utilization (SEK -80 million) were the primary reasons for the weaker earnings. However, earnings were positively affected by lower operating expenses (SEK +650 million) and lower fixed costs (SEK +140 million).

Financial items for the first quarter were SEK -142 (-150) million and earnings after financial items amounted to SEK -278 (329) million.

Profit/loss after tax and earnings per share

Profit/loss after tax for the first quarter was SEK -137 (281) million or SEK -0.42 (0.87) per share. Tax for the first quarter amounted to SEK 141 (-48) million.

Financing and liquidity

The operating cash flow for the first quarter was SEK 85 (1,887) million. Cash flow was positively affected by, primarily, a positive operating profit before depreciation/amortization but negatively affected by an increase in working capital.

Operating cash flow
	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Operating profit before amortization/depreciation	508	1,108	1,891	2,491
Change in working capital	-344	952	1,678	2,974
Maintenance expenditures	-111	-164	-722	-775
Other	32	-9	280	239
Operating cash flow	85	1,887	3,127	4,929

Net cash flow amounted to SEK -164 (1,450) million. Net cash flow was affected by, among other things, strategic capital expenditure payments of SEK 53 (265) million (total capital expenditures amounted to SEK 164 (429) million). The net debt increased by SEK 156 million during the first quarter and amounted to SEK 15,654 million on March 31. The net debt/equity ratio was 55 (57)%.

Operating cash flow per business area
	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
SSAB EMEA	-115	1,198	947	2,260
SSAB Americas	155	699	1,846	2,390
SSAB APAC	45	-79	223	99
Tibnor	22	95	305	378
Other	-22	-26	-194	-198
Operating cash flow	85	1,887	3,127	4,929
Financial items	-104	-104	-572	-572
Taxes	-92	-99	-425	-432
Cash flow from current operations	-111	1,684	2,130	3,925
Strategic capital expenditures	-53	-265	-444	-656
Acquisitions of businesses and operations	-	-	-30	-30
Divestments of businesses and operations	-	31	-	31
Cash flow before dividend and financing	-164	1,450	1,656	3,270
Dividend to the Parent Company's shareholders	-	-	-648	-648
Net cash flow	-164	1,450	1,008	2,622
Net debt at beginning of period	-15,498	-18,475	-16,697	-18,475
Net cash flow	-164	1,450	1,008	2,622
Revaluation of liabilities against equity 1)	-4	457	149	610
Currency effects 2)	12	-129	-114	-255
Net debt at end of period	-15,654	-16,697	-15,654	-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.

As of March 31, the term to maturity on the total loan portfolio averaged 4.6 (5.3) years, with an average fixed interest period of 1.1 (1.2) years. The average term to maturity excluding commercial paper was 4.8 (5.6) years.

The Group's liquidity preparedness

	2013	2012
SEK millions	Q 1	Q 1
Cash and cash equivalents	2,119	1,670
Committed credit facilities	8,652	11,406
Liquidity preparedness	10,771	13,076
-as a percentage of annual sales (rolling 12 months)	29%	29%
Less commercial paper	-882	-917
Liquidity preparedness excluding commercial
paper	9,889	12,159
- as percentage of annual sales (rolling 12 months)	27%	27%

Return on capital employed/equity

Both the return on capital employed before tax and return on equity after tax for the most recent twelve-month period amounted to -1%, while for the full year of 2012 both amounted to 0%.

Equity

With earnings for the quarter of SEK -137 million and other comprehensive income (primarily comprising currency translation differences) of SEK -25 million, the shareholders' equity in the Company amounted to SEK 28,607 (29,440) million, corresponding to SEK 88.31 (90.88) per share.

Dividend

At the annual general meeting held on April 12, 2013, a resolution was adopted to issue a dividend of SEK 1.00 (2.00) per share, totaling SEK 324 (640) million. The dividend was paid out on April 22, 2013.

Capital expenditures

Capital expenditure payments during the first quarter amounted to SEK 164 (429) million, of which SEK 53 (265) million involved strategic capital expenditures. Depreciation and amortization amounted to SEK 644 (629) million.

SSAB EMEA's efficiency program

During the quarter, all announced parts of SSAB EMEA's efficiency program in the Swedish operations were concluded. This will gradually impact on earnings during the year, reaching full effect in 2014.

The program involving reduced work hours and pay which was introduced for both blue-collar employees and white-collar staff in SSAB Sweden at the end of 2012 will apply until the end of May 2013. The cost savings achieved through this program are expected to amount to approximately SEK 80 million.

SSAB EMEA

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Sales	4,573	5,780	19,051	20,258
Operating profit/loss	-53	-124	-859	-930
Operating cash flow	-115	1,198	947	2,260
Number of employees at end of period	6,267	6,676	6,267	6,504

Demand during the first quarter increased somewhat thanks to restocking by customers, primarily with respect to standard strip products. The Automotive segment demonstrated an improved demand.

Steel shipments during the quarter increased by 26% compared with the fourth quarter of 2012 but were down 8% compared with the first quarter of 2012, and amounted to 469 (511) thousand tonnes. Shipments of niche products were up 16% compared with the fourth quarter of 2012 but were 12% lower than in the first quarter of 2012, and amounted to 200 (227) thousand tonnes. Shipments of niche products thereby accounted for 43 (44)% of total shipments.

Prices in local currency in the first quarter were 1% lower than in the fourth quarter as regards niche steels but 1% higher as regards standard steels.

Crude steel production increased by 4% compared with the fourth quarter of 2012 but fell by 11% compared with the first quarter of 2012. The smaller blast furnace in Oxelösund was out of operation also during the first quarter of 2013. Steel production increased by 27% compared with the fourth quarter of 2012 but was 2% lower than in the first quarter of 2012.

Sales declined by 21% compared with the first quarter of 2012 and amounted to SEK 4,573 (5,780) million. Lower volumes accounted for a negative effect of 8 percentage points, lower prices for 6 percentage points, a weaker mix for 5 percentage points, and currency effects accounted for 2 percentage points.

The operating loss for the quarter was SEK -53 (-124) million, an improvement of SEK 71 million compared with the first quarter of 2012. The improvement in earnings was primarily attributable to lower variable costs as well as lower fixed costs.

The operating cash flow for the first quarter was SEK -115 (1,198) million. Cash flow was negatively affected primarily by increased accounts receivable.

Capital expenditure payments during the quarter amounted to SEK 100 (429) million, of which SEK 13 (265) million involved strategic capital expenditures.

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Sales	3,460	4,609	15,024	16,173
Operating profit 1)	87	670	985	1,568
Operating cash flow	155	699	1,846	2,390
Number of employees at end of period	1,452	1,363	1,452	1,394

SSAB Americas

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

Demand from the Energy segment increased strongly during the first quarter. The Heavy Transport segment also increased during the quarter.

During the first quarter, steel shipments were 11% higher than in the fourth quarter of 2012 but 6% lower than in the first quarter of 2012. Steel shipments amounted to 587 (622) thousand tonnes. Shipments of niche products were 33% higher than in the fourth quarter of 2012 but 7% lower than in the first quarter of 2012. Shipments of niche products amounted to 179 (193) thousand tonnes and thereby accounted for 30 (31)% of total shipments.

Compared with the fourth quarter of 2012, prices of niche products fell by 2% in local currency while prices of standard steels fell by 1%.

Crude steel production was 18% up compared with the fourth quarter of 2012 but 2% lower than in the first quarter of 2012. Steel production was 18% higher than in the fourth quarter of 2012 but 3% lower than in the first quarter of 2012.

Sales during the first quarter declined by 25% compared with the first quarter of 2012 and amounted to SEK 3,460 (4,609) million. Lower prices accounted for a negative effect of 15 percentage points, lower volumes for a negative effect of 6 percentage points, and a weaker product mix and currency effects for a negative effect of 4 percentage points.

Operating profit for the quarter was SEK 87 (670) million, a decline of SEK 583 million compared with the first quarter of 2012. Lower prices and lower volumes were the primary reasons for the weaker earnings.

The operating cash flow during the first quarter was SEK 155 (699) million. Cash flow was negatively affected by a slight increase in working capital.

Capital expenditure payments during the quarter amounted to SEK 56 (213) million, of which SEK 37 (192) million involved strategic capital expenditures.

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Sales	555	585	2,288	2,318
Operating profit	42	65	144	167
Operating cash flow	45	-79	223	99
Number of employees at end of period	215	182	215	220

SSAB APAC

Demand within APAC improved at the beginning of the year but slowed down during the latter part of the first quarter. However, the Material Handling segment demonstrated a stable trend, while demand weakened from the mobile crane industry within the Construction Machinery segment.

Shipments of niche products were up 5% compared with the fourth quarter of 2012 and increased by 8% compared with the first quarter of 2012. Shipments of niche products amounted to 42 (39) thousand tonnes and accounted for 95 (95)% of total shipments.

Prices of niche steels in local currencies were 3% lower than in the fourth quarter of 2012.

Sales declined by 5% compared with the first quarter of 2012 and amounted to SEK 555 (585) million. Higher volumes accounted for a positive effect of 6 percentage points, while lower prices accounted for a negative effect of 6 percentage points and a weaker product mix and currency effects accounted for a negative effect of 5 percentage points.

Operating profit for the quarter was SEK 42 (65) million, a decline of SEK 23 million compared with the first quarter of 2012. The weaker result was mainly due to lower prices.

The operating cash flow during the first quarter amounted to SEK 45 (-79) million. The cash flow was positively affected by a positive operating profit, but negatively affected by a slight increase in working capital.

Capital expenditure payments during the quarter amounted to SEK 3 (22) million, of which SEK 2 (21) million involved strategic capital expenditures.

Tibnor

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Sales	1,366	1,771	5,556	5,961
Operating profit	15	105	14	104
Operating cash flow	22	95	305	378
Number of employees at end of period	786	777	786	797

Total shipments increased by 10% during the first quarter compared with the fourth quarter of 2012, but fell by 18% compared with the first quarter of 2012. All product groups reported reduced shipments compared with the first quarter of 2012.

Sales fell by 23% compared with the first quarter of 2012 and amounted to SEK 1,366 (1,771) million. The decrease is attributable to lower volumes with a negative effect of 17 percentage points and lower prices with a negative effect of 5 percentage points, as well as currency effects with a negative effect of 1 percentage point.

The operating profit for the quarter was SEK 15 (105) million, a reduction of SEK 90 million compared with the first quarter of 2012. The weaker result was primarily attributable to lower prices and lower volumes.

The operating cash flow for the first quarter amounted to SEK 22 (95) million. Cash flow was positively affected by a positive operating profit as well as reduced 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 amendment to IFRS 7, "Financial Instruments: Disclosures" has entailed the disclosure of additional information regarding financial instruments; see page 13. Otherwise no material changes in accounting principles have taken place since the annual report for 2012.

Review report This quarterly report has not been reviewed by the auditors.

Stockholm, April 24, 2013

Martin Lindqvist President and CEO

Consolidated income statement

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Sales	8,833	11,023	36,733	38,923
Cost of goods sold	-8,249	-9,852	-34,526	-36,129
Gross profit	584	1,171	2,207	2,794
Selling and administrative costs	-687	-686	-2,977	-2,976
Other operating income and expenses 1)	-32	-13	35	54
Affiliated companies, profit after tax	-1	7	24	32
Operating profit/loss	-136	479	-711	-96
Financial income	16	10	67	61
Financial expenses	-158	-160	-656	-658
Profit/loss for the period after financial items	-278	329	-1,300	-693
Tax	141	-48	897	708
Profit/loss for the period after tax	-137	281	-403	15
Of which attributable to:
- the Parent Company's shareholders	-137	281	-403	15

Key numbers	2013	2012	Apr 12-	2012
	Q 1	Q 1	Mar 13	Full year
Operating margin (%)	-2	4	-2	0
Return on capital employed before tax (%)	-	-	-1	-
Return on equity after tax (%)	-	-	-1	-
Earnings per share (SEK) 2)	-0.42	0.87	-1.24	0.05
Equity per share (SEK)	88.31	90.88	88.31	88.81
Equity ratio (%)	49	49	49	49
Net debt/equity ratio (%)	55	57	55	54
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
Number of employees at end of period	8,866	9,057	8,866	8,978

1) The results for the quarter include primarily provision for the efficiency program in the amount of SEK -24 (-) million.

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

Consolidated statement of comprehensive income

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Profit/loss for the period after tax	-137	281	-403	15
Other comprehensive income
Items which will be reclassified to the income statement:
Translation differences for the period	-16	-1,327	-439	-1,750
Cash flow hedges	2	37	-119	-84
Hedging of currency risks in foreign operations 1)	-4	457	149	610
Share in other comprehensive income of affiliated companies and joint ventures	-8	2	-7	3
Tax attributable to items which will be reclassified to the income statement	1	-130	-7	-138
Total items which will be reclassified to the income statement	-25	-961	-423	-1,359
Items which will not be reclassified to the income statement:
Actuarial profits and losses, pensions	-	-	-10	-10
Tax attributable to items which will not be reclassified to the income statement	-	-	3	3
Total items which will not be reclassified to the income statement	-	-	-7	-7
Total other comprehensive income for the period, net after tax	-25	-961	-430	-1,366
Total comprehensive income for the period	-162	-680	-833	-1,351
Of which attributable to:
- Parent Company's shareholders	-162	-680	-833	-1,351

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
	Share	Other contributed		Retained	Total
SEK millions	capital	funds	Reserves	earnings	equity
Equity, December 31, 2011	2,851	9,944	-1,769	19,742	30,768
Changes Jan 1 - Mar 31, 2012 Comprehensive income for the period			-961	281	-680
Dividend				-648	-648
Equity, March 31, 2012	2,851	9,944	-2,730	19,375	29,440
Changes Apr 1 - Dec 31, 2012
Comprehensive income for the period			-398	-273	-671
Equity, December 31, 2012	2,851	9,944	-3,128	19,102	28,769
Changes Jan 1 - Mar 31, 2013
Comprehensive income for the period			-25	-137	-162
Equity, March 31, 2013	2,851	9,944	-3,153	18,965	28,607

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

Consolidated balance sheet

	31 Mar	31 Mar	31 Dec
SEK millions	2013	2012	2012
Assets
Goodwill	17,888	18,122	17,882
Other intangible assets	2,555	3,304	2,734
Tangible fixed assets	17,300	18,315	17,610
Participations in affiliated companies	318	354	327
Financial assets 1)	1,814	75	1,035
Deferred tax receivables 2)	737	783	668
Total fixed assets	40,612	40,953	40,256
Inventories	8,976	10,919	9,435
Accounts receivable	5,284	5,861	4,383
Current tax receivables	476	238	426
Other current receivables	912	998	1,115
Cash and cash equivalents	2,119	1,670	3,004
Total current assets	17,767	19,686	18,363
Total assets	58,379	60,639	58,619
Equity and liabilities
Equity for shareholders in the Company	28,607	29,440	28,769
Total equity	28,607	29,440	28,769
Deferred tax liabilities	3,736	4,788	3,820
Other long-term provisions	301	297	306
Deferred income 2)	455	512	456
Long-term interest-bearing liabilities	18,325	14,078	18,267
Total long-term liabilities	22,817	19,675	22,849
Short-term interest-bearing liabilities	1,121	4,401	1,115
Current tax liabilities	208	247	243
Accounts payable	3,478	4,067	3,470
Other current liabilities	2,148	2,809	2,173
Total current liabilities	6,955	11,524	7,001
Total equity and liabilities	58,379	60,639	58,619
Pledged assets	1,003	39	242

1) I Financial assets include long-term bank deposits (escrow agreement) in the amount of USD 270 million, of which USD 120 million was added in the first quarter.

2) Of the deferred tax receivable, SEK 454 (512) 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 Non-current non-interest-bearing liability.

Valuation of financial assets and liabilities

Financial assets and liabilities in the balance sheet are valued based on their category 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 286 million and in the balance sheet item "Other current liabilities" derivatives are valued at a total of SEK 189 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 482 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	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Operating profit/loss	-136	479	-711	-96
Adjustments for depreciation and impairment	644	629	2,601	2,586
Adjustment for other non-cash items	27	-5	225	193
Received and paid interest	-104	-104	-572	-572
Tax paid	-92	-99	-426	-433
Change in working capital	-344	952	1,678	2,974
Cash flow from operating activities	-5	1,852	2,795	4,652
Capital expenditure payments	-164	-429	-1,166	-1,431
Acquisitions, businesses and operations	-	-	-30	-30
Divested businesses and operations 1)	-	31	-	31
Other investing activities	5	-4	57	48
Cash flow from investing activities	-159	-402	-1,139	-1,382
Dividend	-	-	-648	-648
Change in loans	70	-1,697	1,166	-601
Change in financial investments	-750	187	-1,512	-575
Other financing activities	-18	91	-97	12
Cash flow from financing activities	-698	-1,419	-1,091	-1,812
Cash flow for the period	-862	31	565	1,458
Cash and cash equivalents at beginning of period	3,004	1,648	1,670	1,648
Exchange rate difference in cash and cash equivalents	-23	-9	-116	-102
Cash and cash equivalents at end of period	2,119	1,670	2,119	3,004

1) Plannja's panel manufacturing unit was divested during the first quarter of 2012.

	Sales					Sales, external		Operating profit/loss	capital employed (%)	Return on 3)
	2013	2012	Change		2013	2012	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	in %	in % 2)	Q 1	Q 1	Q 1	Q 1	Mar 13	Full year
SSAB EMEA	4,573	5,780	-21%	-19%	3,511	4,203	-53	-124	-6	-6
SSAB Americas	3,460	4,609	-25%	-21%	3,440	4,511	87	670	12	18
SSAB APAC	555	585	-5%	0%	555	585	42	65	9	11
Tibnor	1,366	1,771	-23%	-22%	1,327	1,724	15	105	1	7
Amortization on							-201	-197
surplus values 1)
Other	-1,121	-1,722					-26	-40	-	-
Total	8,833	11,023	-20%	-17%	8,833	11,023	-136	479	-1	0

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

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 1% and 6% respectively.

The Group's results per quarter

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

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

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

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	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Gross profit	0	0	0	0
Administrative expenses	-53	-57	-241	-245
Other operating income/expenses	23	22	104	103
Operating profit/loss	-30	-35	-137	-142
Dividend from subsidiaries	70	180	973	1,083
Financial items	-87	-76	-336	-325
Profit/loss after financial items	-47	69	500	616
Appropriations	-	-	-105	-105
Tax	25	28	157	160
Profit/loss after tax	-22	97	552	671

The Parent Company's statement of comprehensive income

	2013	2012	Apr 12-	2012
SEK millions	Q 1	Q 1	Mar 13	Full year
Profit/loss after tax	-22	97	552	671
Other comprehensive income
Items which will be reclassified to the income statement
Hedging of currency risks in foreign operations	-4	457	149	610
Cash flow hedging	6	17	-39	-28
Tax attributable to other comprehensive income	0	-125	-31	-156
Total items which will be reclassified to the income statement	2	349	79	426
Other comprehensive income, net after tax	2	349	79	426
Total comprehensive income for the year	-20	446	631	1,097

The Parent Company's balance sheet

	31 Mar	31 Mar	31 Dec
SEK millions	2013	2012	2012
Assets
Fixed assets	39,289	39,278	39,264
Other current assets	10,807	12,352	12,809
Cash and cash equivalents	1,094	1,202	539
Total assets	51,190	52,832	52,612
Equity and liabilities
Restricted equity	3,753	3,753	3,753
Unrestricted equity	27,283	26,652	27,303
Total equity	31,036	30,405	31,056
Untaxed reserves	175	661	175
Long-term liabilities and provisions	16,508	12,441	16,455
Current liabilities and provisions	3,471	9,325	4,926
Total equity and liabilities	51,190	52,832	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
Crude steel production
- SSAB EMEA	943	957	612	741	832	867	551	713	744
- SSAB Americas	631	624	607	556	624	609	540	517	610
-Total	1,574	1,581	1,219	1,297	1,456	1,476	1,091	1,230	1,354
Steel production 1)
- SSAB EMEA	765	755	506	591	638	664	466	491	624
- SSAB Americas	592	579	563	537	591	571	516	487	574
-Total	1,357	1,334	1,069	1,128	1,229	1,235	982	978	1,198
Steel shipments
- SSAB EMEA	571	556	418	455	511	437	378	373	469
- SSAB Americas	623	628	612	579	622	626	540	530	587
- SSAB APAC	57	64	46	52	41	46	38	42	44
-Total	1,251	1,248	1,076	1,086	1,174	1,109	956	945	1,100
of which niche products
- SSAB EMEA	233	244	187	190	227	215	186	172	200
- SSAB Americas	170	154	171	150	193	154	143	135	179
- SSAB APAC	56	61	45	52	39	45	36	40	42
-Total niche products	459	459	403	392	459	414	365	347	421

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:

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

Half-Year Report 2013:

The Half-Year Report 2013 will be published on July 19, 2013.

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