Weak demand negatively impacts on SSAB’s third-quarter earnings

Volume growth, especially within strip products, has been much weaker than the
assessment which was made in connection with publication of the report for the
second quarter of 2012. In addition to normal maintenance outages during the
summer, so far during the third quarter capacity utilization within SSAB EMEA’s
strip operations has been slightly less than 60%. Customers have been extremely
hesitant in both northern and southern Europe. However, the assessment is that
underlying demand will gradually result in improved capacity utilization
compared with the trend so far during the third quarter.

Iron ore prices have fallen sharply on the spot market. The price change is
expected to impact on SSAB's earnings during the first quarter of 2013. The
change in the price of iron ore has resulted in downward pressure on steel
prices, especially for standard products, while quenched plate products are
demonstrating a more stable price level.

Thanks to currency hedging, the substantial strengthening during the summer of
the Swedish krona against the Euro has had a limited effect on earnings.
Approximately one half of SSAB EMEA’s sales take place in Euro, while costs are
mainly in SEK and USD.

At the beginning of 2012, SSAB EMEA initiated an efficiency improvement program
aimed at reducing fixed costs and increasing flexibility in the operations. The
program has now been accelerated and is expected to be completed during the
first quarter of 2013. It is estimated that the program will generate annual
savings of SEK 800 million. During the autumn, the number of white collar
employees within SSAB EMEA will be reduced by 10% and negotiations with labor
unions are underway. The results for the third quarter will be negatively
impacted by a provision of approximately SEK 50-60 million for non-recurring
costs.

SSAB Americas’ operations have also been affected by a weakening in demand, as
forecast in the report for the second quarter. The economic slowdown in China
has had a negative impact on operations within SSAB APAC.

In total, SSAB is expected to report an operating loss for the third quarter of
2012 of approximately SEK -700 million (including provisions for non-recurring
costs), with a continued positive operational cash flow.

SSAB’s CEO Martin Lindqvist and CFO Marco Wirén will be available for Q&A:s at a
telephone conference, 12.00 CET today.

Telephone numbers: +46 8 505 598 53 (Sweden), +44 203 043 24 36 (UK), +1 866 458
40 87 (USA)
For additional questions, please contact:

Helena Stålnert, EVP, Head of Communications, +46 8 45 45 734

Catarina Ihre, Director, Investor Relations,+46 8 45 45 729
SSAB is a global leader in value added, high strength steel. SSAB offers
products developed in close cooperation with its customers to create a stronger,
lighter and more sustainable world. SSAB has employees in over 45 countries and
operates production facilities in Sweden and the US. SSAB is listed on the
NASDAQ OMX Nordic Exchange, Stockholm. www.ssab.com.