SSAB Report for the third quarter of 2014


The quarter

•             Sales of SEK 13,314 (8,695) million, of which SEK 3,534 million
come from Rautaruukki

•             Excluding items affecting comparability, operating profit/loss of
SEK 510 (-602) million

•             Excluding items affecting comparability, profit/loss after
financial items of SEK 433 (-745) million

•             Earnings per share of SEK -0.26 (-1.61)

•             Items affecting comparability related to the acquisition of
Rautaruukki affected profit/loss after tax by SEK -450 million and earnings per
share by SEK -0.94

•             Operating cash flow of SEK 77 (500) million

•             On July 29, the share exchange offer to Rautaruukki’s shareholders
was completed, whereupon Rautaruukki’s shareholders received newly issued shares
in SSAB in exchange for their shares in Rautaruukki

•             Rautaruukki is consolidated in SSAB as from July 29. Pro forma
accounts for the Group, if Rautaruukki had been owned during the entire third
quarter, would (excluding items affecting comparability) have yielded an
operating profit/loss of SEK 409 (-521) million

•             The acquisition analysis of Rautaruukki is only preliminary and
will be concluded during the fourth quarter. In principle, only
depreciation/amortization on surplus values in inventory and order books has
been incurred in the quarter

•             From September 1, the Group has been reorganized into five
divisions and new segment reporting has been introduced

Comments by the CEO

The pro forma underlying operating profit for the third quarter was SEK 409
million, an improvement of almost SEK 1 billion compared with the third quarter
of 2013, driven primarily by significantly higher earnings in the North American
operations, due primarily to higher prices and improved productivity. The
improvement in earnings in the European operations is due primarily to higher
volumes and lower raw materials costs.

Demand in North America has remained good and we operated at full capacity
utilization at both of our North American mills during the third quarter. The
European market has been relatively stable when adjusted for customary seasonal
effects. The global market for high strength steels has demonstrated a mixed
trend: good in the US, stable in Europe, and still challenging in Asia. In
total, shipments for the Group during the third quarter were somewhat lower than
during the second quarter.

Inventory levels at distributors have increased somewhat in the US due to high
import volumes, while inventory levels in Europe are in balance. The market for
construction materials is normally seasonally good during the third quarter, but
developments in Eastern Europe and Russia have dampened demand this year.

We anticipate that our North American operations will continue to develop
positively, driven by continued good demand from end-customers. However, as
usual we expect a seasonal slowdown in demand towards the end of the year,
primarily in demand from Steel Service Centers. The trend in Europe is difficult
to assess due, among other things, to the complicated situation in Russia and
Ukraine, but prices and volumes are expected to be relatively stable during the
fourth quarter. The market for high strength steels is expected to remain
unchanged, with continued good demand in North America but weak demand on
several emerging markets.

On July 29, the combination with Rautaruukki was completed. The combination
provides clear benefits as we will be able to structurally reduce the annual
cost base by SEK 1.4 billion and release working capital, and also avoid capital
expenditures costing approximately SEK 2 billion. Furthermore, we have obtained
a product portfolio which is absolutely unique in the world and, with even
greater resources to develop our offerings to the customers; we will ensure that
SSAB continues to be the world leader within high strength steels.

The new organization, comprising five divisions, has been in place since
September 1 and the integration work is proceeding well and according to plan.
The segment reporting connected thereto is described on page 10. The
organization has been structured to maximize cost synergies and flexibility and
to achieve a stronger focus on the global high strength steels market, as well
as our two important domestic markets – the Nordic region and North America.

The new SSAB has achieved an improved cost position, a stronger product
portfolio, and a greater possibility to handle periods of weak demand as well as
strong demand in a cost-efficient manner.

Invitation to SSAB’s third quarter 2014 results briefing

SSAB invites you to a presentation of the report for the third quarter on
Monday, October 27, 2014.

The interim report for the third quarter of 2014 will be presented by SSAB’s
President and CEO Martin Lindqvist and CFO Håkan Folin.

The press conference will be held in English and live webcasted on SSAB’s
website www.ssab.com. It is also possible to participate in the briefing via
telephone.

Venue and time of briefing: World Trade Center (WTC) Stockholm, Kungsbron 1,
Conference room Manhattan, 09:30 a.m. CET.

Telephone numbers: +46 8 505 564 74 (Sweden), +44 203 364 53 74 (UK), +1 855 753
22 30 (USA).

Link to webcast: Go to webcast (http://www.media-server.com/m/p/k4z32fxy)

This information is such that SSAB must disclose in accordance with the
Securities Markets Act. The information was submitted for publication on October
27, 2014 at 07.30 am.

For further information:

Andreas Koch, Director IR and Financial Communications, Tel. +46 (0)70 – 509 77
61

Marie Elfstrand, Director Media Relations and PR, Tel. +46 8 45 45 734
SSAB is a Nordic and US-based steel company. SSAB offers value added products
and services developed in close cooperation with its customers to create a
stronger, lighter and more sustainable world. SSAB has employees in over 50
countries. SSAB has production facilities in Sweden, Finland and the US. SSAB is
listed on the NASDAQ OMX Nordic Exchange in Stockholm and has a secondary
listing on the NASDAQ OMX in Helsinki. www.ssab.com.

Attachments

10276625.pdf SSAB Q3 2014 Presentation.pdf