Updated financial information from SSAB


The value of net assets from the acquisition of the Finnish company Rautaruukki
has now been confirmed as per the acquisition date of July 29, 2014 and results
in goodwill of SEK 5.2 billion.

In conjunction with a review of the asset value for the year-end results, it has
been decided to write down certain book values by SEK 1.3 billion. This
primarily relates to the partly-owned company Fortaco and goodwill in Ruukki
Construction. The write-downs mean a decrease of SEK 0.3 billion in the goodwill
arising from the acquisition of Rautaruukki.

Good progress is being made on the work to achieve synergies following the
acquisition of Rautaruukki, and to date actions have been carried out equating
to annual synergies of SEK 300 million. The original goal was to achieve annual
cost synergies of SEK 1.4 billion within three years, of which SEK 350 million
was scheduled for 2015. The current assessment is that the cost synergies can be
carried out more quickly and that the full annualized effect will be reflected
from the second half of 2016 onwards, which is one year faster than announced
earlier.

The financial statements for the fourth quarter of 2014 are still being
completed, but the preliminary estimate is that the operating result for the
fourth quarter will be between SEK 100 million and 150 million (excluding items
affecting comparability).
The acquisition analysis of the net assets in Rautaruukki has been completed.
Net assets have been confirmed as totaling SEK 9,789 million as at July 29,
2014. The acquisition cost through the share exchange offer amounted to SEK
14,967 million, which results in goodwill of SEK 5,178 million.

In addition to goodwill, the surplus value of the acquisition amounts to SEK 0.8
billion divided into a number of different asset and liability classes.
Depreciation periods for these vary depending on asset class. In 2014,
depreciation of surplus values had a negative impact amounting to SEK 57
million, of which SEK 23 million was for the third quarter and SEK 34 million
for the fourth quarter. In 2015 and 2016, depreciation of the surplus value
relating to the acquisition of Rautaruukki is estimated to amount to SEK 210
million per year. More details about surplus values and depreciation will be
given in conjunction with the year-end results, which will be published on
February 10, 2015.

In conjunction with a review and updated valuations of SSAB’s assets for the
year-end results, a decision has been made to write down certain book values by
around SEK 1.3 billion. This will impact negatively on the pre-tax result for
the fourth quarter and will be reported as items affecting comparability. The
impact on the operating result will be around SEK 700 million, and the financial
items will be impacted by a further SEK 600 million, which mostly relates to
shareholder loans to the partly-owned company Fortaco. Other write-downs relate,
among other things, to goodwill within the Ruukki Construction business area and
to expected capital losses arising from units to be divested as a result of the
European Commission’s conditions for approval of the combination with
Rautaruukki.

The write-downs have no impact on cash flow, but have a negative impact of
around 2 percentage points on SSAB’s debt/equity ratio, which was 53% as at
September 30, 2014.

Only a minor part of the write-downs above are related to achievement of the
synergies identified in conjunction with the acquisition of Rautaruukki. Synergy
work is actively under way and good progress is being made. Annual cost savings
amount to SEK 300 million for actions carried out to date and these will impact
the result from the first quarter of 2015 onwards. The goal for 2015 was to
achieve cost synergies of SEK 350 million. The current assessment is that it
will be possible to carry out the cost synergies more quickly than announced
earlier and that SSAB will be able to achieve annualized savings of SEK 1.4
billion from the second half of 2016 onwards, which is one year faster than
announced earlier.

The financial statements for the fourth quarter of 2014 are still being
completed, but the preliminary estimate (unaudited figures) is that the
operating result for the fourth quarter will be between SEK 100 million and 150
million (excluding items affecting comparability, but including depreciation
according to the plan of surplus value relating to the acquisitions of Ipsco and
Rautaruukki).

For further information, please contact

Andreas Koch, Head of Investor Relations, andreas.koch@ssab.com,  +46 8 454 5729

This information is published by SSAB pursuant to the requirements of the
Finnish Securities Market Act and the Swedish Securities Market Act. Submitted
for publication at 08.30 am CET, January 20, 2015.
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.

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01207590.pdf