Half-year report 2015


Strong cash flow despite somewhat lower result in Q 2

The quarter

  · Sales were SEK 15,303 (9,717) million
  · Operating profit, excluding items affecting comparability, was SEK 301 (267)
million
  · The profit after financial items, excluding items affecting comparability,
was SEK 88 (80) million
  · Earnings per share were SEK 0.31 (0.41)
  · Items affecting comparability had an impact of SEK -8 (-6) million on profit
after tax
  · Operating cash flow was SEK 1,462 (528) million
  · Currency effects impacted sales positively with over SEK 1.1 billion
compared with pro forma 2014, while operating profit was impacted positively
with around SEK 70 million
Comments by the CEO

SSAB’s operating profit for the second quarter of 2015 was SEK 301 million
(excluding items affecting comparability), down by SEK 263 million compared with
the first quarter of 2015 and at the same level as the second quarter last year.
Lower earnings compared to the first quarter are primarily due to lower prices
for heavy plate in North America and costs incurred by relining of the blast
furnace in Luleå. Production difficulties experienced by the Swedish mills
during the quarter impacted negatively on second-quarter shipments. Actions have
been taken to address these problems and we expect to be able to return to
normal deliveries during the third quarter. Cash flow remained strong and was
SEK 1,462 (528) million, which was largely driven by lower working capital
despite a certain build-up of slab inventories ahead of the relining work in
Luleå which began on June 1. The blast furnace is expected to be back in
operation in early September.

In North America, the quarter was marked by continued destocking at
distributors, which resulted in heavy pressure on prices. High import volumes of
heavy plate during 2014 and the first half of 2015 have impacted negatively on
the situation in North America. In the Nordic region and rest of Europe, demand
for standard steel showed some growth, albeit from low levels. However, prices
have shown a slightly downward trend. Global demand for high-strength steel
continued to be at a low level during the second quarter and some pressure on
prices was noted.

Work on achieving synergies from the acquisition of Rautaruukki is progressing
according to plan. During the second quarter, we achieved synergies of SEK 125
million and at the end of the second quarter; the annual run rate amounted to
around SEK 525 million. As we announced earlier, we will achieve the full run
rate of SEK 1.4 billion in synergies on an annual basis from the second half of
2016 onwards.

During the second quarter, we launched a number of concrete sustainability
targets which, among other things, mean we will cut carbon dioxide emissions,
use less energy sourced externally and further improve the monitoring of our
suppliers’ sustainability work. We will also increase the share of renewable
energy we consume since we have taken the decision that at least 50% of the
electricity we purchase externally in the Nordic region must be derived from
wind and hydro power.

This information is such that SSAB must disclose in accordance with the
Securities Markets Act. The information was submitted for publication on July
22, 2015 at 07.30 am.

Invitation to SSAB’s second quarter 2015 results briefing at 09.30am CEST on
Wednesday July 22, 2015.

The interim report for the second quarter of 2015 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 webcast 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, 09.30am CEST.

Telephone numbers:
+46 8 5055 64 74 (Sweden),
+44 203 364 53 74 (UK),
+1 855 753 22 30 (USA).

Link to webcast: Go to webcast (http://edge.media-server.com/m/p/gvooqw3q)

Instructions on how to participate in the webcast will be available on SSAB’s
website, including presentation material for downloading.

For further information:

Andreas Koch, Head of Investor Relations and Financial Communications, Phone +46
70 509 77 61

Marie Elfstrand, Director Media Relations and PR, Phone. +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

07215999.pdf SSAB Q2 2015 Presentation_final.pdf