THE STENA METALL GROUP2012/2013

RECYCLINGThe Group provides recycling services in five geographical markets under the name Stena Recycling. Waste from throughout society is processed at around 175 facilities and is sold to steel, metal and paper mills among other customers worldwide.www.stenarecycling.comwww.stenametalinternational.com

TRADINGStena Metal Inc. trades in scrap, pig iron, hot briquetted iron (HBI) and finished steel products. The company operates in the USA, Thailand and Chinawww.stenametall.com

ELECTRONICS RECYCLINGEnd-of-life electronic and electrical equipment is collected, processed and recycled in 20 Stena facilities in eight countries.www.stenatechnoworld.com

ALUMINIUMStena Aluminium is the Nordic region’s leading producer of recycled aluminium for foundries and the steel industry. www.stenaaluminium.com

OPERATING OVERVIEW

STEELStena Stål, with facilities in Sweden and Norway, offers a wide range of steel products as well as steel pretreatment and flame cutting / machining of heavy plate.www.stenastal.se

OILStena Oil is the largest Nordic supplier of bunker oil and has operations in the Nordic region and outside West Africa.www.stenaoil.com

FINANCEThe Finance business area handles financial activities and serves as the Group’s internal bank.www.stenametall.com

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69

HIGHLIGHTS OF 2012/2013

• Theyearwascharacterizedbydecliningvolumes,

fallingscrappricesandovercapacityintherecycling

industry.Marketconditionsputseverepressureon

theStenaMetallGroup’sresults.

• Salesofourproductsindomesticand

internationalmarketshavebeengood.

• Anactionplanwasinitiated,throughoutthe

business,toadjustcoststoprevailingmarket

conditions.

• Furthermarketinginitiativesandabroaderrange

ofproductsandservicesmaintainedmarketshare.

• SuccessfulimplementationoftheStenaWay

ofProduction,ourproductionmodel,which

willhelpincreaseproductivityandcoordination.

• InvestmentsinStenaRecycling’sshredding

facilityinHuddinge,heatrecoveryatStena

AluminiuminÄlmhultandnewtechnologiesfor

increasedrecyclingatStenaTechnoworldinVerona.

• Broadinvestmentinproductandmaterial

knowledgedevelopsrefinementprocesses,

whichcreatewide-rangingbenefits.

FIVE YEAR SUMMARY

SEK million 2012/2013 2011/2012 2010/2011 2009/2010 2008/2009

NetSales 25,404 35,193 28,977 23,160 20,465

EBITDA 718 1.154, 1,337 1,247 358

OperatingIncome –31 426 722 603 –338

Shareholders’Equity 4,173 4,432 4.407 4,115 3,716

Equity/AssetsRatio,% 33.9 34.4 33.0 38.0 32,5

AverageNumberofEmployees 3,595 3,831 3,486 3,184 3,453

CONTENTSThe Stena Metall Group .......................................flapSummary of 2012/2013 .......................................flapChief Executive Officer’s comment....................... 2Price trends ................................................................. 4Improvements that benefit the world around us .................................................. 6Recycling for new products ..................................... 8

BUSINESS AREASRecycling ................................................................... 10Trading ....................................................................... 16Electronics recycling ............................................... 18Aluminium ................................................................20Steel ...........................................................................22Oil ...............................................................................24Economics & Finance .............................................26The Stena Sphere ....................................................28

FINANCIAL REVIEWDirectors’ report ......................................................32

Group Income statement ...................................................35Balance sheet ...........................................................36Statement of changes in shareholders’ equity ...............................................38Statement of cash flows ........................................39Accounting and valuation principles .................. 40Notes .........................................................................43

Parent companyIncome statement ...................................................53Balance sheet ...........................................................54Statement of cash flows ........................................56Statement of changes in shareholders’ equity ............................................... 57Notes ......................................................................... 57Shares and participations In Group companies ...............................................60Proposed distribution of earnings ........................62Auditors’ report .......................................................63

Board of Directors ...................................................64Addresses .................................................................65

Cover image: Stena Recycling offers, among other things, the environmentally sound disposal of hazardous waste, in which we ensure collection, transport, statistics, final treatment and recycling. The business performed well in Stena's markets during the year.

2

CHIEF EXECUTIVE OFFICER’S COMMENT

A Challenging Year2012/2013 was a very challenging year in most

of our business areas. Negative trends in the scrap

markets became more pronounced. The wea-

kening economy and a tougher industrial climate

in our home markets, led to volume declines of

around 25 percent in the case of ferrous scrap,

and about 15 percent for non-ferrous, compared

with the previous year. In combination with

falling prices, this has had a very negative effect

on profit margins. Inventory control has been

good during the year, while our sales organiza-

tion has successfully maintained sales of our

products in both domestic and international

markets. For markets in transition – Denmark,

Finland and Poland – earnings have been signi-

ficantly more difficult to achieve than in the

Group’s more established markets. However,

we have consistently defended our market share.

Our Hazardous Waste and Other Waste busines-

ses, in particular, have continued to perform

well.

Unfavorable price fluctuations and tight

profit margins have put severe pressure on

Stena Technoworld, our electronics recycling

operation. The Nordic part of the business has

continued to develop well but with greater

volume shifts than previously.

Germany is an extremely competitive market

where price increases are necessary in order to

restore reasonable profitability, though some

The financial year 2012/13 was challenging for the Stena Metall Group. Deteriorating market conditions with falling volumes and declining prices, were only partially offset by earlier measures and cost-cutting programs. With further marketing initiatives and a broader range of products and services, the Group has maintained its market share. The loss before tax was 213 million SEK.

signs of improvement were noted by the end

of the financial year. Our Italian electronics

recycling business has had a very difficult year,

with declining volumes.

In a very volatile year, Stena Stål strengthened

their market share.

Stena Aluminium has struggled through a

challenging year with increased competition

from the Eurozone, which has put pressure on

profit margins.

Stena Oil is developing well. The investment

in bunker operations in West Africa has compen-

sated for a challenging situation in Scandinavia.

With good business acumen in a relatively stable

financial market, Stena Metall Finans has conti-

nued to contribute positively to the Group's

results.

Market Changes Require ActionWe will make changes based on factors that

we can control, rather than relying on sudden

improvements in market conditions. In the

current business climate, we were compelled to

make rapid adjustments and I am impressed by

the abilities of those in our Group to forcefully

implement these changes. We have implemen-

ted a focused action program throughout the

Group, to improve results and adapt to current

conditions. Together with previous measures,

this will take full effect during the 2013/2014

financial year.

The workforce of the Group has been

reduced and we have introduced measures to

increase flexibility among staff. A major adjust-

ment of the business structure has been imple-

mented and continues in many areas. Stena

Recycling in Denmark, for example, has decided

to reduce the number of branches from 28 to

18. Stena Recycling in Poland has closed four

branches.

Stena Technoworld has sold Griag Glasrecycling

in Germany. In Italy, electronics recycling has

been concentrated and now operates from two

locations instead of four. In parallel with our

ongoing structural changes, we continued to

develop our operations. We have created a

common standard for the management of

production at our recycling facilities. Through

the introduction of this model, Stena Way of

Production, we will also be able to improve

productivity and the coordination of produc-

tion capacity.

A major investment during the year was

the redevelopment and modernization of the

shredding facility in Huddinge. Another invest-

ment was Stena Stål's new high bay warehouses

in Västerås.

Stena Stål also introduced a comprehensive

income and expenditure program, which not

only lowered costs and adapted the business’

structure, but also contributed to improving

gross profit margins.

3

We have also invested in an advanced

metal recycling facility in Verona.

Through continued focus on product and mate-

rial knowledge, we are increasing material refine-

ment processes throughout production systems,

while creating increased benefits across the

whole business.

For many years, we have worked towards

achieving safety goals throughout the Group.

Our long-term goal is to prevent all accidents

and it is gratifying that, during the year, we

have made significant advances in the right

direction.

Investments in the FutureThis year, we continued to invest in new techno-

logies and innovative service solutions to further

increase the value of our products and services.

One example is the collaboration between

Stena Recycling and Stena Oil in the handling

of hazardous waste from shipping. Stena

Aluminium’s heat recovery initiative and

Stena Recycling’s investment in shipbreaking

are examples of new business development

projects carried out during the year.

After the end of the financial year, the

property of Pilkingtons Floatglas was acquired,

which neighbors our shredding facility in Halm-

stad. This property will be an important part of

our future production efforts in recycling.

We never compromise our professionalism

but continue to invest, which strengthen our

position as a leading company in all our busi-

nesses. Looking forward, we will strengthen

our business acumen, increase the intensity

of our sales efforts and continue to develop

the quality of industry and customer specific

solutions. With long-term owners and a strong

business model, based on dedicated business

acumen, there are very good opportunities to

continue to advance in all our business areas.

At the time of writing, we see only mild signs

of improvement in our markets. With the various

improvement programs we have implemented,

along with those we are planning; and with con-

tinued financial discipline, I expect an improved

result for the financial year 2013/2014.

Göteborg, October 2013

Anders Jansson

Drive-in facilities are a new way for Stena Recycling to offer simpler and more flexible solutions for tradespeople, and other low volume suppliers, to sell scrap. Dan Olsson, Branch Manager at Stena Recycling, and Anders Jansson, CEO, at the branch in Tingstad, Göteborg.

Ferrous Scrap (USD/tonne), fob Rotterdam

0

600

400

200

800

10/11 11/12 12/13

PRICE TRENDS

Aluminium (USD/tonne), LME

0

3,000

2,000

1,000

4,000

10/11 11/12 12/13

Copper (USD/tonne), LME

0

6,000

4,000

2,000

10,000

8,000

10/11 11/12 12/13

Nickel (USD/tonne), LME

0

30,000

20,000

10,000

40,000

10/11 11/12 12/13

NON-FERROUS METALSPrices on the London Metal Exchange, LME, have been volatile during the financial year, but the overall trend is that prices are falling. Crucial to LME prices is the assessment of global growth, where developments in China are dominant - whose share of global copper, aluminium and nickel consumption is more than 40 percent. An increase in capacity, combined with the lower growth that now prevails in China, means a sur-plus of primary metals in relation to global consump-tion. During the financial year, there has been a shift in focus from demand to supply.The view of insatiable demand from China and other emerging markets has been modified and supply now has a significantly grea-ter impact on pricing. Continued growth in the USA has

At the beginning of the financial year, prices rose marginally for most of the Group's key commodities, partially as a result of monetary policy stimulus. After the end of the year, the trend reversed with a relatively sharp fall in prices. This was largely due to weaker growth and growth prospects in the, so-called, BRIC countries. Viewed over the whole financial year, commodity prices ended, with some exceptions, slightly lower at close of the year compared to the start. In the steel market, which is suffering from substantial overcapacity, the situation is very difficult. The increased supply of raw materials and a slowdown in the emerging markets is likely to cause an end to the strong boom for raw materials we have experienced over the past decade. Overall, there is continued uncertainty about growth prospects for the next few years, and for the beginning of the financial year 2013/2014.

supported prices at the same time that fears of a euro collapse have significantly reduced.

During the fall, we saw strongly oscillating prices with a major focus on monetary policy stimulus, the US presidential election, change of leadership in China and the potential US budget crisis. After the customary new-year optimism, which produced a price peak in February 2013, prices began to fall later in the spring, partly as expectations for global growth diminished. This was especially apparent on inventories of major LME metals, which rose sharply during the year.

Fundamental factors have regained a grip on metal prices. Supply during the recent heavy investment boom in mining and smelting caught up with demand and has now passed it.

In stark contrast to the surplus of primary metals and tight pricing on the LME, the market for scrap metal has been stable. Lower volumes of scrap combi-ned with continued strong demand from virtually all markets, has meant that the pricing of scrap has been stable. There is a strong trend among European metal smelters to increase the use of scrap as raw material as this reduces costs. Demand from China and other Asian markets has remained stable. Lower LME prices have also negatively affected the influx of scrap to recycling companies, which has further strengthened scrap metal price structures. The exception is stainless steel scrap, where the very weak economic conditions for stainless steel producers have negatively affected demand.

4

FERROUS SCRAPPrices of ferrous scrap have continued the negative trend that started in 2011. Since then, the steel indu-stry has been affected by overcapacity. Worldwide supply levels of iron-ore have put pressure on inter-mediate goods prices for steel making. Iron ore, which is mainly shipped to China, has in recent years had a profound influence on all raw materials in the steel industry; and in line with falling prices, collection of ferrous scrap in the West has declined steadily for two years. Despite this, pricing has managed to stay within a relatively stable range over the last twelve months. However, the overall trend continues to be negative. During the spring, prices have clearly wea-kened due to oversupply after the winter season and lower than expected demand. In 2014, an increased supply of iron ore is expected, which will have further negative effects on pricing unless there are significant reductions in production from the mining sector.

STEELSteel prices fell by about 8 percent during the finan-cial year. This has continued the trend of gradually declining prices that started in the summer of 2011. During the fall, prices fell even more in Sweden because of a strong Swedish Krona but in the New Year the exchange rate normalized and subdued the international price fall.

Overcapacity among steel producers has been, and still is, very extensive. The reductions in production that have been made have not been sufficient to cre-ate a balance against demand. The direct link between prices for ore and scrap, as previously seen, no longer applies.

During August 2013, prices began to rise for long scrap-based products and even higher prices for flat products were announced for the fourth quarter. Pro-duction has increased at the steel mills and delivery times for several products have become longer. Inven-tories are low, in all areas, and it is estimated that pri-ces have bottomed out and that purchases have increased slightly from low levels.

FREIGHTThe market has followed the normal seasonal fluctua-tions. In the fall, an increase in shipments of grain reduced the availability of vessels for scrap, which resulted in substantially higher freight rates. During the remainder of the financial year, the market has remained difficult for shipping companies. Bunker pri-ces have been falling during winter and spring though they have since stabilized. Freight rates recovered somewhat during the summer of 2013.

OILThe price of crude oil, WTI (Nymex), rose during the financial year from 96 USD per barrel and concluded at 108 USD per barrel. The corresponding trend for Brent oil is from 114 USD per barrel to 115 USD per barrel. The large price difference between the two grades has been reduced and this has also continued into the new financial year.

The fall was characterized by relatively stable oil prices, followed by a small price decline. The factors contributing to lower oil prices were reduced demand in combination with increased expectations and a growing supply of, primarily, American shale oil/gas. The scenario of the USA becoming less dependent on oil imports has also contributed to the declining pri-ces. The rising prices in the third quarter were a direct result of the crisis in Syria, the potential involvement of the USA and the threat of military action, as well as the potential after-effects of these factors.

The short to medium-term assessment is for oil prices to continue falling, as long as the crisis in Syria does not escalate. The increasing supply of shale oil/gas will exert downward pressure.

Corrugated Board (EUR/tonne), Export Prices

0

150

100

50

200

10/11 11/12 12/13

Oil (USD/barrel), Nymex

30

90

70

50

130

110

10/11 11/12 12/13

*All graphs on this page refer to prices for the period September 1, 2010 through September 19, 2013. All graphs refer to monthly figures. Sources: MBR and Stena Metall.

5

RECOVERED PAPERThe year was characterized by large-scale closures throughout the graphic paper sector in Europe. All the major manufacturers have reduced production. In Scandinavia, the closure of Dalum Papir reduced overall output by 100,000 tonnes and Stora Enso shut down two machines leading to the loss of around 400,000 tonnes of production.

Price levels for newsprint and other graphic material fluctuated only marginally throughout the year due to lower collection volumes.

Total production of raw material for corrugated board has increased both in Europe and the rest of the world. Capacity increases at Chinese mills have continued but at a slightly slower pace than plan-ned. Demand has thus been high in Europe but somewhat subdued among Chinese buyers.

The new financial year has begun with a conti-nued high demand from all the markets where we are active.

IMPROVEMENTS THAT

SAFE WORKPLACES

Stena is investing in systematic safety work at 250

facilities. This year, for example, nearly 7,000 safety

walks were carried out, where employees take part in

identifying and preventing potential accidents at all

our workplaces. This success inspires us to do even

better.

INCREASED INVESTMENT IN KNOWLEDGE OF MATERIALS

Stena Recycling is implementing a comprehensive training program

in the knowledge of products and materials. Experts, selected from

within the company, serve as teachers developing our employees’

knowledge of different materials. With this investment we wish to

further improve our recycling services and contribute to greater

environmental benefits. Hundreds of employees have been trained

and the initiative will continue in our different markets, in the year

ahead.

7

BENEFIT THE WORLD

LEADING RESEARCH INTO RECYCLING

Stena conducts successful research into new, environmentally sound

and profitable recycling methods - for the products and materials of

today and tomorrow. In 2007, Stena initiated a professorship in

industrial material recycling. Today, 15 researchers are investigating

areas such as the increased recycling of rare earth metals and

lithium-ion batteries, as well as extracting titanium dioxide from

paint waste.

NEW TRANSPORT SOLUTIONS

We are constantly developing new solutions for transporting

waste or products. In Sweden, we are investing in rail-based

solutions wherever possible. Every year, Stena Recycling can

use rail transport to replace 15,000 truck journeys, to and from

facilities, or to ports. This also means that we can reduce the

load of heavy traffic on public roads. We always export recycled

material by sea whenever possible.

RAISING AWARENESS ABOUT THE BENEFITS OF RECYCLING

The Stena Sphere sponsors Stena Match Cup, one of the world’s most

attractive match racing competitions, which is held at Marstrand, near

Gothenburg. Over one hundred thousand visitors attend the event,

which puts a high demand on waste management and recycling. This

is handled by Stena Recycling Crew, who travel in electric vehicles,

collecting and recycling all the waste. The energy produced from this

recycling is enough to keep the Hätteberget lighthouse in Marstrand

lit up for over four years! During the week of the competition, we offer

recycling services to all the residents of Marstrand and all visitors can

learn more about the benefits of recycling.

8

RECYCLING FORRecycling is important if we are to conserve the earth’s resources and maintain good living standards - even though population increases around the planet. Every day, the Stena Metall Group handles over 14,000 tonnes of waste. At 175 recycling facilities, we strive to process as much as possible of this waste into new raw materials - everything from an old electric toothbrush to a scrapped car. We do this again and again. These environmental benefits are something that we create together with all our customers. Thank you for your cooperation during the year!

This year, the Stena Metall

Group handled enough ferrous

scrap to build one Eiffel tower

every day.

Each year, we recycle more than two million refrigerators

and freezers. 98 percent of the components are processed

into new, prime raw materials and returned into circulation,

while environmentally harmful CFCs are neutralized in closed

systems. If you stacked up all the refrigerators and freezers

that we recycle in one day it would create a pile 9,860

meters high, which is higher than Mount Everest.

LONDON

BEIJING

The overall environmental benefit of the Stena Metall Group’s recycling

is vast. Annually, we reduce potential carbon dioxide emissions by 9.4

million tonnes. These emissions would have occurred if equivalent raw

materials had been produced from mining, forestry and oil drilling instead

of material recycled by Stena. That compares to the environmental

impact of two million Europeans travelling by train from London to

Beijing every day of the year. And then back again.

9

Stena recycles large quantities of aluminium, everything from food

squeeze tubes to large aluminium beams. Every day, we recycle

enough aluminium to produce one aluminium can for every person

in Norway, Denmark, Finland and Iceland – over 17 million.

NEW PRODUCTS

Recycling paper reduces the harvesting of new wood – so that

more trees can be used as a resource for other things, such as

active recreation. Every day, we recycle paper to the equivalent

of 120 football fields of mature forest. This area of forest could

produce over 12 million paperbacks.

Every day, we handle large amounts of waste oil and other waste con-

taining oil from industry, ports and ships. We process and refine the oil

into new oil-based products or fuel. In this way, we can contribute to

the conservation of other oil resources. Every day, we handle the equi-

valent of 23 truckloads of waste oil. Over the course of a year, this adds

up to an 83 kilometer-long caravan of oil-filled trucks!

The chemical company Ineos, in Stenungsund, Sweden, has high demands for environmental work and safety, among other things. With a total waste management solution from Stena Recycling, all Ineos employees have received environmental training, while the company has achieved significant savings and increased material recovery. With a customer portal, Ineos can continually monitor its waste streams and waste economy.

Dan-Inge Andersson, Branch Manager, Stena Recycling, and Ingela Frössling, Environmental Engineer at Ineos, meet to develop their recycling solution.

11

RECYCLING

NEW SOLUTIONS FOR THE BENEFIT OF CUSTOMERS AND SOCIETY

– We know that many of our customers are

having a tough time, but they stay with us.

We work closely with them, even in uncertain

times, and it is appreciated. This is always our

quest; that the customer should feel we are

reliable partners, whether production is going

up or down. The client and the client's needs

are number one priorities. We are flexible and

give support, even though conditions may

change, says Leif Gustafsson, Manager of

Business Area Recycling.

He also notes that, despite tough times,

Stena Recycling’s customized recycling solutions,

Stena Solutions, are valued by more and more

customers. Total waste management solutions

have been provided in Sweden since the mid-

1990s, but they are constantly evolving and are

now spreading also into Stena Recycling's other

markets in Norway, Denmark, Finland and Poland.

Stena Solutions offers a complete recycling

package to suit the customer, which includes

collection, retrieval and transportation, as well

as education, a customer portal and other ser-

vices. By combining experience with innovative

thinking, Stena Recycling helps to make the

customer’s recycling management simpler

and more profitable.

– We are reaching out into many different

areas. More businesses and industries want us

to take care of more types of waste and many

want us to take care of their entire waste mana-

gement system. It is a great way for customers

to save time and money that they can put into

Strong ties with customers, successful safety work, more efficient production – and for the first time in a long time – recycling large ships on Swedish soil. These are some of the high-lights for Stena's recycling activities during the financial year.

other parts of their business. In short, we create

the best waste economy system for the customer,

says Leif Gustafsson.

During the past year, the recycling market

has generally seen a reduction in waste volumes

combined with falling prices for raw materials.

Stena Recycling has adapted to market conditions

– partially through increased synergies between

production facilities.

Cooperation and exchange between Stena’s

different markets has also intensified. The

streamlining and optimization of operations

has been implemented and continues to be

implemented through the new financial year

Stena is one of the few recycling companies

actively working on research and development.

Through Stena Recycling, there is the desire

i

Stena Recycling has recycling operations in Sweden, Norway, Denmark, Finland and Poland, with a network of around 175 branches. Through innovative and cost effective solutions, we recycle waste from the whole of society with our total waste management offer, Stena Solutions. This service includes: internal logistics, education, statistics, safety advice and customer focus.

Chief Business Area Leif Gustafsson

National PresidentsSweden Staffan PerssonNorway Max TrandemDenmark Ulf ArnessonFinland Leena Mekkonen-LeppänenPoland Fredrik Valentin

and curiosity to constantly find new and unique

solutions for specific industries.

How, for example, will the automobile of the

future be recycled? This is an example where new

solutions are being developed. Stena Recycling

already has a high recovery rate when it comes

to automobiles, but this will be improved even

further. From 2015, the EU directive states that

every end-of-life automobile must be recycled to

a rate of 95 percent. In Sweden, the BilRetur

network represents an important step towards

that goal. BilRetur is a nationwide partnership

between vehicle dismantlers, Stena Recycling

and SBR, Sweden’s automobile scrapping asso-

ciation. With a solution for the whole recycling

chain, both consumers and automobile manu-

facturers are offered the best service.

STENA RECYCLING

12

New Facility in FinlandAnother important step towards achieving higher

recovery rates is the new facility in Finland,

which undertakes more extensive processing

of SLF (shredder light fractions). This type of

waste contains fabric mixed with small pieces

of plastic and metal, which comes from car

interiors, for example. The new plant performs

very efficient sorting.

– From this mix of material, that previously

went to landfill, we are now extracting metals

that can be recycled and used as fuel for energy

production. This creates major environmental and

economic benefits for both car manufacturers

and us, who are responsible for the recycling of

automobiles, says Leena Mekkonen-Leppänen,

President of Stena Recycling in Finland.

Stena Recycling is moving forward with all its

recycling solutions for businesses and organiza-

tions. The goal is always to improve sorting,

increase recycling, reduce waste volumes and

lower customer costs.

– Customers of Stena Recycling should

always receive ideas and suggestions that put

their operations at the forefront. We are there

to solve all waste-related topics, create strong

waste economies and environmental benefits

together.

We are also active in international issues

related to recycling. It is important that custo-

mers can rely on Stena as a partner who is aware

of worldwide developments, which acts to

develop the industry in the right direction and

constantly develops innovative recycling solu-

tions, says Leif Gustafsson.

Show of Strength in SwedenA milestone and a show of strength this year,

is that Stena Recycling Sweden began the recy-

cling of two large vessels: the 92-meter-long

marine vessel, HMS Visborg, and the 127-meter

passenger ferry, Stena Voyager.

– This is just one example where we, as

Sweden's largest and most innovative recycling

company, are taking the lead and showing what

is possible. Despite tough times, we do business

in completely new areas - that provide great

benefit to society, says Staffan Persson,

President of Stena Recycling in Sweden.

Tough times also mean that it becomes

increasingly important for companies to save

costs through smarter waste management.

An example is the chemical company Ineos,

in Stenungsund, who have made significant

savings since they decided to let Stena Recyc-

ling take care of their entire waste management

system. Stena's analysis of their mixed waste

showed that 60 tonnes out of every 150 was

recyclable. The personnel have been trained

in environmental and recycling issues and a

customized waste-sorting handbook has been

developed. Altogether, these activities have

given quick results at Ineos.

Improving the economics of waste manage-

ment requires constant improvement to the

refining process. A major investment this year

included new recycling technologies at the

shredding facility in Huddinge, outside Stock-

holm. The plant grinds old cars and other scrap

down at high speed.

The materials are sorted and become raw

material for smelting, ultimately becoming new

products. The initiative allows for increased

recycling, greater environmental protection and

promotes businesses

and local authorities throughout the region.

Sustainability is an integral part of Stena

Recycling's business. Sustainable business

means business where customer satisfaction,

profitability, environmental benefits and safety

go hand in hand. In order to drive development

forward in Sweden, Stena Recycling is part of

the Haga Initiative - a business network which,

among other things, works to reduce industrial

emissions.

– As Sweden's largest recycling company,

we have an important role to fulfill regarding

sustainability in society. We are both willing

and able to be involved in, and increase the

pace of, these issues, says Staffan Persson.

Stena's competence and expertise has been

built up gradually over decades. The product

and material knowledge that currently exists

at Stena Recycling benefits our customers on a

daily basis. In order to increase and disseminate

knowledge further, an ambitious competence

development program has been launched this

year.

– This is the largest investment in education

undertaken within Stena Recycling. We have

begun in Sweden, where more than 350

employees have already taken one or more

training courses. The initiative will be rolled out

in all our markets. By extension, this means that

we will be even better partners to all our

customers, says Leif Gustafsson.

Safety is a high priority area. There is conti-

nuous work to prevent incidents and accidents

in all operations and these efforts produce

results. Several key objectives were achieved

this year, in terms of number of days without

accidents with absence.

Changes in PolandThis year, Stena Recycling in Poland streamlined

and strengthened its organization. The changes

were partly made to address changes in the

market and to focus more clearly on customized

total waste management solutions and resource

optimization for large and medium-sized indu-

stries.

–To offer both existing and new customers

partnership with a single provider to solve all

problems and undertakings, will benefit both

us, and our customers’ profitability. Now that

the industry is beginning to understand and

require this more frequently, we are pushing

forward as we are one of the few players who

can offer these services nationally, says Fredrik

Valentin, President of Stena Recycling in

Poland.

In addition to well-developed total waste

management solutions, Stena Recycling is also

moving the Polish recycling market forward in

other areas. During the year, the company

undertook many new measures.

– At the beginning of the financial year,

we opened Poland's first real recycling center,

Stena Ekostacja, built following the Swedish

model, which was inaugurated by the Swedish

Ambassador and the Mayor of Warsaw. The

recycling center fulfills an important function

in the local area, in that it is open to all, and has

received positive attention from the Polish

media this year, says Fredrik Valentin.

Another example of innovative recycling is a

new concept for receiving scrap cars.

– To scrap a car in Poland is normally a time-

consuming process with paperwork and visits to

various institutions. At Stena Recycling it takes

twenty minutes. We resolve everything while

you drink a cup of coffee in our lounge. The

money goes into your account after a few days

and all documents are sent to you as soon as

they are ready, says Fredrik Valentin.

RECYCLING

13

Stena Recycling has a recycling partnership with Fields, the largest shopping mall in the Nordic countries, in Copenhagen. An incentive for increased sorting has been implemented whereby combustible waste is weighed and then billed separately to each shopkeeper. It makes it possible for retailers to keep a check on their costs and consider both environment and economic issues simultaneously. The picture shows the waste station where 26 types of waste can be sorted for recycling.

14

RECYCLING

Stena Recycling’s shredding and sorting facilities are at the heart of our recycling operation. This is where scrap and other waste is processed into clean mate-rial or material mixes that are put to use in new pro-ducts worldwide. In addition to giving value to our customers, processing also greatly benefits the envi-ronment.

Stena is constantly striving to raise the recycling rate in the production process. Every tonne of scrap, every discarded car should generate even more raw material than before, to the benefit of both custo-mers and the environment.

– During the year we started a new facility in Finland that extracts materials from SLF, shredder light fraction, a mix of small pieces of material that

have previously been put to landfill. It means that we can now return more raw material into circula-tion. Corresponding facilities will be opened in seve-ral countries, says Mats Ottosson, Director of Pro-duction.

At the beginning of the new financial year, the Stena Metall Group acquired a large industrial pro-perty in Halmstad, which provides good conditions for future recycling efforts. The property is strategi-cally located near to the existing Stena shredding facility in Halmstad.

– This provides good opportunities to invest in the processes we are planning in the future, which will increase the recycling of metals and other raw materials. We will create even greater environmental benefits and make it possible to offer local authori-ties and businesses even better recycling services in the future. These new investments also mean that we will achieve the requirements of the ELV Direc-tive, which states that 95 percent of every scrapped automobile must be recycled by 2015, says Mats Ottosson.

NEW PROCESSES THAT SHARPEN UP RECYCLING

Large-Scale Operations in NorwayStena Recycling's business spans a large geo-

graphical area as well as a wide range of clients,

in various industries and local authorities. The

types of waste and dimensions vary: it can be

anything from cardboard containers of a few

kilos to large metal structures weighing hund-

reds of tonnes.

Stena Recycling Norway has increased its

focus on the booming Norwegian offshore

industry. The company often deals with large

dimensions. For example, in May, two 65-meter

ballast tanks, weighing 1,500 tonnes, were recei-

ved by the Stena Recycling branch in Stavanger.

Thanks to the branch location, they could be

lifted directly onto the Stena dock by the world's

second largest, floating crane.

– This was a fast and cost effective solution

for the customer, with no additional transpor-

tation. It was simple and safe, as it always

should be when you work with Stena, says Max

Trandem, President Stena Recycling in Norway.

An Effective Approach in DenmarkThis year, Stena Recycling in Denmark initiated

changes to ensure that customers continue to

receive the best waste management solutions

on the market. Among other initiatives, facilities

were merged so that each one can manage

many different types of waste.

– This means more efficient handling, which

benefits the customer. The changes will continue

into the new financial year, in order to offer the

best service and the most economical waste solu-

tions for Danish businesses, says Ulf Arnesson,

President of Stena Recycling in Denmark.

A good example where Stena Recycling

makes a difference is at one of Scandinavia's

largest shopping malls, Fields, outside Copen-

hagen. Much of the waste from the 140 shops

and 20 restaurants was previously incinerated.

By combining their efforts, Fields and Stena

Recycling have come close to the owner’s,

Steen & Strøm, target of a 75 percent recycling

rate for waste.

– In cooperation with Fields, we created a

simple and effective solution where as much

waste as possible was sorted into different

types. As an incentive for increased sorting,

we weigh the combustible waste and charge

each storekeeper for their share. It allows for

the stores to keep a check on their costs and

consider both environmental and economic

factors at the same time.

i

15

HMS Visborg has made its final voyage in naval service. Stena Recycling has been awarded a contract from the Armed Forces in Sweden to dismantle and recycle the whole ship. Ann-Charlotte Ramström, Branch Manager at Stena Recycling, has a close dialogue with Göran Kollind, Project Manager at Krandepån, the company hired to perform part of the work.

16

Having a close relationship, being responsive to

customer requirements and quickly reacting to

increasing or decreasing needs. That is the

recipe for success at Stena Metal International,

the Group’s sales company for its own ferrous

and non-ferrous scrap.

In the last financial year, the markets for fer-

rous and non-ferrous scrap as well as stainless

steel scrap have been highly volatile, both in

terms of price and customer requirements. In

this unpredictable environment, Stena Metal

International still succeeded to deliver what

customers demanded.

– This year, the market has been extremely

erratic and difficult to assess. Many buyers have

found conditions immensely tough and acted

cautiously. The natural consequence is that we

have had to work more intensively. We have

made more transactions with more customers,

but every transaction has been, on average,

smaller than before, says Thomas Andersson,

President.

Overall, Stena Metal International, as in

previous years, found many sales opportunities,

both in the domestic markets of Sweden,

Norway, Finland and Poland as well as globally.

China, which is the largest export market for

metals, has been of great importance during

the year. Germany, Turkey and the United

States are other major sales markets.

– A clear trend is that we are becoming more

and more successful with our customized grades.

We do well with this because we strive to have

a close relationship with the customer. We learn

more about our customers' business and can

deliver accordingly. This is appreciated.

Another trend is that deliveries to primary

smelting facilities are increasing. The primary

smelting industry used to be entirely dependent

on ore-based raw materials to produce their

product. Today, Stena delivers recycled materials

that match the quality of ore-based materials.

– Deliveries to primary smelters are an

acknowledgment that Stena has an exceptional

Stena Metal International is the Group’s sales company for Stena Recycling’s stocks of ferrous, non-ferrous and stainless steel scrap. The head office is in Gothenburg with a representative office in China. Customers include steel and non-ferrous mills worldwide.

President Thomas Andersson

STENA METAL INTERNATIONAL

Stena Metal Inc. trades internationally in scrap metal, pig iron, hot briquetted iron (HBI) and finished steel products. The company has offices in the USA and Thai-land. From its headquarters in Stamford, USA, raw material suppliers and custo-mers from around the world receive help finding each other.

President Doug Fried

STENA METAL INC.

Stena's USA-based company, Stena Metal Inc.,

trades internationally, not only in scrap metal

but also in pig iron, hot briquetted iron (HBI)

and finished steel products. With more than 25

years experience in the industry, the company

has the right qualities to find new approaches

that add value for the customer. Trading in a

market with great transparency is primarily

about solving problems, providing unparalleled

service and allowing customers to benefit from

the company's vast worldwide network.

The prospects for trading have changed sig-

nificantly and we have become more selective

in our business when balancing risk against

expected returns. This year, Stena Metal Inc.

has simultaneously found new customers and

begun fruitful collaborations both with existing

and new partners.

– We can look back on a relatively good year.

We have created good solutions for new clients

in the Caribbean, Vietnam and Indonesia. In

South America, we have become involved in the

construction boom and have developed beyond

our core business. Ahead of the 2014 World

Cup and the 2016 Summer Olympics, there is

an incredible amount of building work being

undertaken. We supply raw materials to the

cement industry which is operating at top

speed to be ready for the big events, says Doug

Fried, President of Stena Metal Inc.

He also explains that trade in finished steel

products has become more important during

the year.

– Especially in the United States and Latin

America, we found many customers for steel

rod and wire, and selected pipe products. One

process that produces highly refined grades. We

create value for the customer while contributing

to the preservation of natural resources, says

Thomas Andersson.

TRADING

CLOSE COLLABORATION WITH THE CUSTOMER

i

i

of our key success factors is that we can always

adapt and offer good solutions for customers in

completely new areas.

17

Nicklas Estberg, Site Manager at Stena Recycling, in Ljungby, Fredrik Nyström, Salesperson at Stena Metal International and Emma Johansson, Purchasing Manager at Combi Wear Parts.

At the Combi Wear Parts (CWP) foundry, in Ljungby in Sweden, they manufacture wear parts systems for machinery. The company is investing in new furnaces and a new production line and there are stringent quality requirements for the raw materials that go into their products. Stena Metal International and Stena Recycling supply scrap and alloying elements and over the years have collaborated with CWP to meet their increased demands for quality and reliable delivery.

Stena Metal Inc. trades internationally in scrap, hot briquetted iron (HBI) and finished steel products, as well as pig iron, shown here.

18

ELECTRONICS RECYCLING

IMPORTANT INVESTMENTS FOR THE FUTURE OF RECYCLING IN EUROPE

Every year, approximately 10 million tonnes

of electronic products and white goods are sold

in Europe. That equals about 2,000 100-meter-

long cargo ships fully loaded with products.

In 2019, it will become a requirement that 65

percent of all electronic equipment sold must

be collected and recycled. This is one of the

major changes resulting from the revised WEEE

Directive, approved in 2012. This represents a

huge challenge for waste collection schemes

throughout Europe and is the moment of truth

for electronics recyclers as well. As a leading

electronics recycler, Stena has an important

role to play.

– We are working on several levels to adapt

to these new and challenging circumstances.

It requires us to increase the volume collected

through improved accessibility and stronger

incentives for consumers, as well as businesses

and organizations. It also requires us to increase

our own efficiency and refinement processes, and

thereby improve the quality of our products, says

Rasmus Bergström, Business Area Manager of

Stena's electronics recycling.

An important step, this year, was the new PMR

(precious metal recycling) plant in northern Italy.

The plant is designed to recycle metal and plastic

waste from electronic and electrical equipment.

Tens of thousands of tonnes of end-of-life elec-

It is a time of change for electronics recycling in Europe. Legal requirements and demands are becoming progressively tougher. Stena continues to invest in recycling solutions for the challenging circumstances of the future. The single largest investment, this year, was a new electronics recycling facility in northern Italy.

tronics and appliances can be handled each year.

Appliances such as vacuum cleaners, dishwashers,

computers, mostly from the Italian market, pass

through a state-of-the-art process. From this,

different specified materials are produced that

can be used again - and be manufactured into

new products.

The facility is equipped with the best techno-

logy available. All processing is done indoors

and great focus has been placed on the working

environment for staff.

– The facility is unique in Italy. Its location

in Northern Italy is close to Stena's facilities in

Austria and southern Germany, which creates a

strong hub for Stena in southern Europe, says

Rasmus Bergström.

Another important event during the year, was

that Stena became one of the first companies in

Europe to implement WEEELABEX – a new stan-

dard which for the first time sets minimum requi-

rements for the entire recycling chain: collection,

transport, environmental cleanup, processes and

buyers.

– For us as a large, serious, international com-

pany, it is positive that regulations are tightened

in the industry and become a decisive factor at

the procurement stage. We are confident that

professionalism and quality have value for the

customer and that this will make us successful

and profitable in the long term.

In 2013, WEEELABEX has already become a

requirement for recycling scheme procurements

in Western Europe. This year, Stena's German

facility in Wangerland became the first to

implement this standard.

STENA TECHNOWORLDStena is Europe's leading electronics recycler with 20 facilities in eight countries: Sweden, Norway, Denmark, Finland, Poland, Germany, Austria and Italy. We also collect material from around ten other countries. Stena collects, processes and recycles electronic waste from households, businesses and manufacturers. We also develop and sell a variety of products made from recycled material.

Chief Business Area Rasmus Bergström (from November 1, 2013)

!

19

We have seen declining volumes and fierce

competition in many areas during the year. It is

a reflection of the general economic situation

with reduced growth throughout Europe. How-

ever, Stena has maintained its position as market

leader in several of our markets. Operations are

currently conducted in Sweden, Norway, Italy,

Germany, Austria, Denmark, Finland and Poland.

In addition, some business is also carried out in

Holland, Belgium and Switzerland.

Stena's recycling has an important role in

society. For example, during the year, tens of

thousands of refrigeration appliances from

European households and businesses, have

reached their final destination in one of our

efficient recycling facilities where they are recy-

cled to 99 percent. The environmental benefits

of recycling refrigerators and freezers are very

significant. Recycling one old refrigerator, con-

taining Freon, can save the equivalent of two

tonnes of carbon dioxide emissions.

This is due to the negative impact of the

Freon leaking out into the atmosphere instead.

At Stena all climate-damaging refrigerants are

disposed of in closed processes.

The refrigerators and freezers are ground

down and the material is sorted and turned

into new material, which is sold on and can go

directly into production at smelters, for

example. To further improve efficiency and

reduce environmental impact, this year, we

implemented a rail transport solution in Swe-

den. Refrigerators and freezers, from the

northern parts of the country, are transported

in an environmentally sound way to our recyc-

ling facility in the south. This saves huge

amounts of carbon dioxide emissions as

80,000 refrigerators and freezers per year no

longer need to be transported by road. It also

means that heavy traffic can be removed from

the public highway.

The collection of electronic waste in Europe

presently relies on large national collection

schemes that perform the task on the producers'

behalf. To meet the new, stricter requirements

for collection and recycling rates, the industry

as a whole is facing major challenges.

– The key words are availability and incentive.

More channels for collecting are necessary.

Stena will be working with other operators to

develop new collection systems. During the

year, we have already taken the first steps in

Finland to start our own collection scheme

together with retailers, says Rasmus Bergström.

At a newly built PMR (precious metal recycling) facility in Italy, metals and plastics from electronic scrap are recycled using the best technology available. Said Kouki is one of the operators, and is pictured at the conveyor belt where material is fed on to a water sorting table. There, heavy metals are extracted and separated, at a rapid rate, using water sorting techniques.

In recent years, Stena Aluminium has made major investments in the future. With new environmental technologies installed, production can increase in the future. Another project is the recovery of waste heat from production that can be distributed as district heating in Älmhult. Top picture shows Fredrik Pettersson, President of Stena Aluminium and Karin Jarl-Månsson, President of E.ON Värme at the opening ceremony in November 2012. In the background, a display is showing the number of houses that can be heated with excess heat.

21

ALUMINIUM

QUALITY PRODUCTS FOR A SUSTAINABLE SOCIETY

In recent years, Stena Aluminium has undertaken

the most comprehensive investment in the

company's history. New environmental techno-

logy has been utilized to minimize environmental

impact and to increase future production.

During the financial year, a system to recycle

waste heat was also initiated. The production

of aluminium generates large amounts of excess

heat, and the company uses this to heat the

water distributed throughout Älmhult’s district

heating network. This is part of a long-term

collaboration with the power company E.ON.

– We always strive to help our clients to greater

success with our services, at the same time as

we achieve energy savings, high levels of safety

and create environmental benefits. This is what

makes sustainable business. The success of

recent years encourages us to become even

better in the future, says Fredrik Pettersson,

President of Stena Aluminium.

Production and deliveries of liquid aluminium

continues to grow. During the year, the company

exceeded 1,000 deliveries for liquid aluminium,

a product Stena Aluminium is alone in being

able to deliver in the Nordic countries.

– We have increased the number of weekly

deliveries and expanded cooperation with

customers. We see this as a good sign that the

market has recovered and that we offer a good

service.

The Company's development work at the

Älmhult facility received a great deal of attention

during the year. For example, Stena Aluminium

was awarded Sweden’s Metal Recycler of the

Year and also Älmhult’s Annual Development

Prize.

– In parallel with the environmental work,

we have continued to focus on improving our

customer service. We continue, for example, to

strengthen our technical support that helps to

increase the customer's yield and utility from

aluminium alloys. For example, through regular

sampling of castings, to ensure the properties

of the product, we can reduce and optimize the

customer's energy consumption in its heat treat-

ment process.

The company also continued its systematic

safety work and ambitious goals have been

achieved. This year, implementation of the

so-called safety walks expanded. On these

tours employees actively identify risks and

suggest preventative measures in the work-

place.

The global use of aluminium has greatly

increased since the 1950s. Thanks to its proper-

ties of malleability, conductivity, density, strength

and low weight, its uses are multi-faceted in

terms of construction, design, environmental

characteristics, and more. It is also a very durable

material which is confirmed by the fact that 75

percent of all the aluminium ever produced is

still in use.

– Demand for aluminium, especially as a

recycled raw material, continues to increase.

Demand is expected to double by 2030, so we

definitely seem to be in an industry of the future.

Stena Aluminium operates and participates

in several research projects, involving both new

solutions to production residues, waste minimi-

zation, and new, more efficient aluminium alloys.

– There are very promising tests and the out-

look is good to reach our aims for the coming

years, in terms of product development, service

and environmental initiatives. This is how we

can continue to carry out our goal to help

customers to greater success with reliable

delivery, flexibility, the right grades and high

accessibility to both products and technical

support. Market conditions were very tough in

the financial year 2012/2013, with weaker sales

in all vehicle-related industries, which are the

basis for the company's sales.

– European overcapacity in aluminium has

spread northward and, together with the strong

Swedish Krona, has negatively affected our

profit margins. At the time of writing, we see

positive signs that the market is recovering,

says Fredrik Pettersson.

This year, Stena Aluminium continued its investment in new products, improved service and environmental protection despite difficult market conditions. It is also positive that our efforts were recognized by the out-side world. The company was awarded a number of prizes, such as Sweden’s Metal Recycler of the Year and Älmhult’s Development Prize, as well as the E-Prize, a prize for intelligent energy solutions that combine innovation, environmental awareness and good business.

Stena Aluminium is the Nordic region’s leading supplier of recycled aluminium to foundries and the steel industry. It also offers technical support, training and services in metallurgy, materials and pro-cessing. The largest part of the company’s operations is in Älmhult, Sweden, with a sales office in Kol-ding, in Denmark.

President Fredrik Pettersson

STENA ALUMINIUM

i

Stena Stål has built two automated high-storage systems in Västerås that increase storage capacity. This has made it possible to expand the product range and customer services. Pictured (bottom left): Patrik Beijbom, warehouse worker at Stena Stål in Västerås.

23

STEEL

STEEL PRODUCTS FOR EVERY NEED

Being close to customers is an area where Stena

Stål distinguishes itself in the industry. This clo-

seness is evident in three ways: committed

staff, highly developed customization of steel

products and geographic proximity with 19

warehouses, production facilities and sales

offices around Sweden and in Moss, Norway.

– We have increased our market share during

the year and developed customer services in

many ways. This is very positive if we consider

that this year, business has resulted in weaker

demand and a gradual fall in prices, says Presi-

dent Jan-Erik Dahlin.

The investments of recent years have develo-

ped well. The newly opened tool steel center in

Värnamo has increased our ability to serve the

many toolmakers in the Småland region. Thanks

to this initiative, customers can access our pro-

ducts locally. This strengthens the company's

role as one of the nation's leading suppliers of

tool steel.

The same improvement of service can be

seen in Sweden's Norrland region. Operations

in Sundsvall have been moved to Timrå, making

it possible to offer larger and more rationalized

stocks of steel products, while also improving

distribution. In Skellefteå, warehouse space and

cutting capacity has expanded to meet the

increased demand, especially for reinforcing

steel and steel plate.

This year, Stena Stål has created new customer benefits with all types of products despite tougher market conditions. Examples include: a new automated high-storage systems in Västerås, an increased range of stock, as well as improved services in more locations.

The company's main investment in recent

years has been in the construction of two auto-

mated, high-storage systems in Västerås. The

high-storage systems became operational

during the year and have resulted in many

benefits for both customers and the company.

– With our new warehouses, we have been

able to develop services, with rationalized deli-

veries and better packaging. The high-storage

systems have freed up storage space, which in

turn made it possible to further expand the

range of steel products.

Stena Stål has also been EN1090-1 certified.

This certification already meets the future

requirements of steel for load-bearing structures.

– This provides benefits to customers who

themselves are certified and already require

steel products that meet these requirements.

Safety work in Stena Stål's workplaces has

retained certification in accordance with

OHSAS 18001. So-called safety walks are carried

out in the workplace to identify hazards and

help prevent accidents. The number of safety

walks has more than doubled over the year.

Both management and individual branches

have targets for carrying out safety walks at

agreed intervals. The company's new transport

planning system has progressed well.

– This is encouraging since it is always

important for us to develop efficient transpor-

STENA STÅLStena Stål is a nationwide supplier of steel with a wide range of products that include beams, reinforcing bars, tube, plate, merchant bars, stainless, aluminium, tool steel, alloyed struc-tural steel, forgings and castings. The company is a leader in flame cutting and CNC processing of heavy plate while also offering slitting and cut to length, and sheets from coils. Stena Stål has warehouses, production and sales facilities at 18 locations in Sweden and in Moss, Norway.

President Jan-Erik Dahlin

tation that provides customers with the

best service, while reducing our environmental

impact.

Market conditions are currently uncertain,

but Jan-Erik Dahlin is cautiously optimistic.

– Right now, it looks like Europe is on track

to pick up, which may positively affect demand.

Also, prices seem to be strengthening at the

beginning of the new financial year.

!

24

OIL

QUALITY-ASSURED FUELS IN SCANDINAVIA AND WEST AFRICA

The bunker market in the waters off the West

African coast has been in growth for several

years. These waters are crossed by ocean-going

cargo vessels and oil tankers, many of which

now bunker in the region. In addition, the off-

shore oil industry requires large quantities of

fuel for supply ships and such.

Stena Oil was quick to identify the need for

quality-assured deliveries in the area and has

now been operating in West Africa, for almost

four years, with its own chartered bunker tankers.

– We have tried out different approaches

over the years and learned a tremendous

amount. We have tested several different com-

binations, in terms of the number and size of

our bunker tankers and we have also used diffe-

rent local suppliers of marine fuel. Our set-up is

based on the fact that we buy oil in Scandinavia

and ship it under our own management. It

works very well, says Jonas Persson, President

of Stena Oil.

This solution gives Stena Oil control over the

entire logistics chain and avoids unnecessary

intermediaries, which is of great benefit to the

customer. It guarantees that deliveries take

place at the right time, while the quality of the

product is assured, which has always been a

hallmark of Stena Oil. This is a simple and

reliable service for customers who receive a

Stena Oil is one of the major suppliers of marine fuel in West Africa. The quality of the product is ensured by a system that gives the company full control of the entire logistics chain. In Scandinavia, as well as fuel, Stena Oil also offers to take care of slops and sludge.

competitive offer for a quality product at the

right price.

In March, two of Stena Oil’s chartered ves-

sels were seized by the authorities in Sao Tomé.

This was surprising and without grounds.

– The reason for the seizure was unfounded.

At the time of writing, all parties involved are

working to find a solution, says Jonas Persson.

Stena Oil could quickly get new bunker tan-

kers in place to replace the seized ones, then

the business could continue as before with the

same highly reliable delivery system.

Stena Oil remains a leading supplier of

marine fuel in Scandinavia. The European bun-

ker market is in a completely different state to

the one in West Africa. Bunker volumes have

declined, partly due to slow steaming - shipping

companies lowering the speed of their vessels

to reduce fuel consumption. Anything to save

money in an industry that is being squeezed by

overcapacity in the commercial fleets.

Stena Oil is constantly seeking opportunities

to expand the business and offer services in

new geographic areas and to new types of

customers. This year, for example, Stena Oil has

taken over responsibility for bunkering Stena

Line vessels in the Irish Sea, where they operate

extensive ferry services.

In Nordic waters, our full-service marine

solution, which involves taking slops and

sludge, after bunkering, is a valued service. This

waste is passed on to our sister company, Stena

Recycling, where part of it is recycled into con-

verted fuel oil, which is used by the cement

industry, to name one.

– We solve this problem for the customer in

a reliable and simple way. The ships do not have

to go into port to get rid of the waste. The ship-

ping companies save both time and money,

says Jonas Persson.

Stena Oil is Scandinavia’s leading supp-lier of bunker oil and full-service marine solutions for ships in the Skagerrak, Kat-tegatt and North Sea region. Since 2010, it has also bunkered ships off the West African coast.

President Jonas Persson

STENA OIL!

25

Christopher Torreon, Able Seaman aboard the bunker vessel Norden, makes preparations for bunkering the cruise ship Brilliance of the Seas on its visit to Gothenburg. Norden is one of several ships that Stena Oil charters for their business.

26

ECONOMICS & FINANCE

ADAPTATIONS TO MAINTAIN COMPETITIVENESS

Overcapacity in the recycling industry, falling scrap prices and decreasing volumes. This is the general description of the conditions that characterized the 2012/2013 financial year.

– What we have seen during the year is a clear

downward trend, in terms of both prices and

volumes in the scrap market, says Jonas Höglund,

CFO of the Stena Metall Group.

He describes overcapacity in the recycling

industry as one of the major challenges for the

whole industry, including the Stena Metall

Group. Last year also saw overcapacity in

Europe and the USA, but it has become even

clearer this year when volumes have fallen.

This is a situation that companies with recycling

operations must deal with. During the year,

it has led to fierce competition for existing

volumes.

– This is the reality we have to accept. We

cannot wait for volumes to return but must

work to adapt our cost structure and production

capacity to current conditions. During the year,

we initiated changes within the Group in order

to maintain our competitiveness. This work will

continue into the new financial year, says Jonas

Höglund.

Satisfactory Results from Stena Metall FinansStena Metall Finans serves as the Group's

internal bank with responsibility for finance

and administration. President of AB Stena

Metall Finans, Peter Gustafsson, notes that the

activities during the year have given a satisfac-

tory result.

– Again, we are pleased with returns and

results. We have a competent organization,

we are successful in our analysis and have

good financial discipline, he said.

Significant events during the year were two

successful bond issues, one in Norway and one

in Sweden. These have five-year maturity,

where liquidity has been used to redeem loans

with shorter maturities. The bonds were quickly

subscribed, which is proof that the market has

good confidence in the Stena Metall Group.

Jonas Höglund, CFO of the Stena Metall Group and Peter Gustafsson, President of AB Stena Metall Finans.

27

Stena Metall Finans handles financial activities and internal banking within the Group.

THE GROUP’S INTERNAL BANKStena Metall Finans serves as the Group’s internal bank. Its areas of responsibility include:

• Active participation in analysis, quality assurance of guidance documents and financing of investment activities.

• Maintaining routines for cash management, capital procurement and account structures, and actively working to reduce the Group’s tied-up working capital.

• Contributing to the Group’s short- and long-term earnings by efficiently managing and trading liquid assets.

• Monitoring financial markets.• Weighing risk levels in the Group’s customer

credits and managing the credit portfolio.• Ensuring the Group’s access to long-term

financing.

MANAGEMENT OF EXCHANGE RATE EFFECTSThe best possible balance is always sought between assets and liabilities and between revenue and expenses in foreign currency. It is important that the Stena Metall Group finances its operations in the right currency. Other projected flows are continuously hed-ged using forward exchange contracts.

LIQUIDITY AND FINANCINGThe Group’s external financing is secured through capital markets and the banking system. During the financial year, we issued five-year bonds in Norway and Sweden to the value of just over SEK 800 million. The majority of the funds were used to buy back previously issued bonds with shorter matu-rities. A syndicated and revolving facility including four banks, agreed in 2012, remains unchanged. Working capital is financed through Nordic banks; the agree-ments are bilateral. In addition to the custo-mary financing, the Group may need relati-vely high guarantee limits, since a large part of its operations are accredited.

For financing purposes, the basic rule is that no assets belonging to the Group’s core businesses may be used as collateral. Agree-ments have been reached with our banks, on certain covenants and periodic information updates as a condition for financing.

ENVIRONMENTAL INSURANCEAs in previous years, the Group had allocated the necessary provisions for environmental insurance to cover future remediation costs for contaminated soil.

AB STENA METALL FINANS

Maturing Bond Loans (SEK million)

0

300

600

900

1.200

1.500

2013 2014 2015 2016 2017 2018

USD/SEK

EUR/SEK

Stockholm Stock Exchange’s OMXS30 Index*

6

7

8

11

10

9

10/11 11/12 12/13

VIX Volatility Index*

10

20

30

40

50

10/11 11/12 12/13

Stockholm Stock Exchange’s OMXS30 Index*

800

1.000

1.100

900

1.300

1.200

10/11 11/12 12/13

Morgan Stanley World Index, USD*

1.000

1.450

1.300

1.150

1.600

11/12 11/12 12/13

* All graphs on this page refer to prices during the period September 1, 2010 through September 19, 2013. All graphs refer to monthly figure Sources: MBR and Stena Metall.

i

28

FERRY LINESSales SEK 10,395 million Profit SEK -265 million

Stena Line

OFFSHORE DRILLING Sales SEK 7,025 millionProfit SEK 779 million

Stena Drilling Shuttle tankers

Shuttle tankers

SHIPPINGSales SEK 2,426 millionProfit SEK -244 million

Stena Bulk Stena RoRo, Stena LNG Stena Teknik, NMM

Concordia Maritime (52%) RoPax-fartyg

REAL ESTATESales SEK 2,468 millionProfit SEK 979 million

Stena Fastigheter Stena Realty

ADACTUMSales SEK 4,977 millionProfit SEK 204 million

Stena Adactum

FINANCE/OTHERSales SEK 21 millionProfit SEK 216 million

Stena Finans MEDA (28%) Beijer Electronics (26%)

Stena Metall Finans

RECYCLING, ENVIRONMENTAL SERVICES AND TRADINGSales SEK 25,404 millionProfit SEK -213 million

Stena Metall

BUSINESS AREA* STENA METALL ABSTENA SESSAN ABSTENA AB

THE STENA SPHERE

Net sales (SEK million)*

0

10.000

20.000

30.000

Stena AB

Stena Metall

AB

Stena Sessan

AB

Concordia Maritime

AB

*Stena Metall’s figures cover the period September 1, 2012 through August 31, 2013. For the other companies, the period covered is January 1, 2012 through December 31, 2012.

Number of employees in the Stena Sphere

0

5.000

10.000

15.000

20.000

2009 2010 2011 2012 2013

The Stena Sphere is comprised of three parent

companies, wholly owned by the Sten A. Olsson

family – Stena AB (publ), Stena Sessan AB and

Stena Metall AB – in addition to their wholly,

or partly owned, subsidiaries.

The partly owned company Concordia Maritime AB

(publ), which is listed on NASDAQ OMX Stockholm,

is 52 percent owned by Stena Sessan AB

Total sales for the Stena Sphere amounted

to SEK 51,461 million*.

29

Stena Recycling provides hazardous waste solutions for all types of industries. A growing area is safety advice, where clients receive help with sorting, training, contact with authorities and ensuring that transportation meets all legislative requirements. Pictured: Jonas Bring, Chemist and Safety Advisor at Stena Recycling’s treatment plant in Göteborg.

31

FINANCIAL REVIEW

Directors’ report ...........................................32

GroupIncome statement ........................................35Balance sheet ................................................36Shareholders’ equity ....................................38Statements of cash flows ...........................39Accounting and valuation principles ..................................... 40Notes ..............................................................43

Parent companyIncome statement ........................................53Balance sheet ................................................54Statement of cash flows .............................56Shareholders’ equity ....................................57Notes ..............................................................57

Shares and participationsIn Group companies ................................... 60Proposed distribution of earnings .............62Auditors’ report ............................................63

Board of Directors ....................................... 64Addresses .......................................................65

32

The Board of Directors and the President of Stena Metall Aktiebolag,

corporate identity number 556138-8371, with its registered address

in Göteborg, Sweden, herewith present the report for the financial

year September 1, 2012 to August 31, 2013.

About Stena Metall The Stena Metall Group is an innovative recycling leader that

collects, processes and recycles all types of waste.

The Group also includes production of recycled aluminium,

supply of steel products, financial operations and international

trading in ferrous and non-ferrous metals and oil. At the end of

the financial year 2012/2013 the Group had operations in around

250 locations in Sweden, Norway, Denmark, Finland, Poland,

Switzerland, Malta, Germany, Austria, Italy, the U.S., Thailand

and China.

Widespread concern about Europe’s economic problems and a

cautious approach toward investment were noted throughout the

financial year. The steel sector is facing overcapacity and practically

all mills are under economic pressure. This has resulted in falling

ferrous and non-ferrous scrap prices and a weak market for the

majority of Stena Metall’s operations. During the financial year

nearly every business area and their operations saw market volumes

decline, adversely affecting annual earnings. With the slowdown

in emerging markets and increased extraction of metals in recent

years, supply has caught up with demand. With few exceptions,

metal prices were trading lower at the end of the year than the

beginning.

Market RecyclingStena Recycling has recycling operations at around 175 facilities in

Sweden, Norway, Denmark, Finland and Poland. Declining waste

volumes and falling raw material prices affected the entire recycling

market during the past financial year.

Stena Recycling has adapted well to market conditions, partly

through improved synergies and collaborations between production

facilities and markets. Efficiency improvements and operational

optimization were implemented and will continue during the new

financial year. One example is Stena Recycling A/S in Denmark,

which has decided to reduce its number of facilities from 28 to 18.

The business area’s sales amounted to SEK 10,720.0 million

(14,042.1) with an operating loss of SEK 5.4 million, against

year-earlier operating income of SEK 270.2 million.

DIRECTORS’ REPORT

TradingThe Stena Metall Group trades scrap, pig iron, HBI (hot briquetted

iron) and finished steel products. Stena Metal Inc. serves as a link

between raw material suppliers and steel mills around the world.

During the year the company won new business in a generally weak

market with lower volumes and prices. Trading volumes decreased

during the year in a difficult market with considerable margin

pressure.

The business area’s sales and operating income amounted to

SEK 1,042.8 million (2,289.1) and SEK 5.1 million (22.7), respectively.

Electronics recyclingStena is one of Europe’s leading electronics recyclers, with 20

facilities in eight countries. The latter part of the year saw lower

volumes, declining prices and tough competition in many places.

Stena Technoworld has retained its position as a leader in several

of our markets, but metal prices are having an adverse effect on

earnings.

The single largest investment was a new Precision Metal Recycling

(PMR) facility for electronics in northern Italy, which makes it pos-

sible to process large volumes of waste with the best available

technology. The facility is the only one of its kind in Italy.

Sales amounted to SEK 803.4 million (921.0) with an operating

loss of SEK 163.6 million, against year-earlier operating income of

SEK 16.3 million.

AluminiumStena Aluminium is the Nordic region’s leading producer of recycled

aluminium. During the year the company continued to invest in new

products, improved service and environmental protection, despite

tight market conditions.

A facility that makes it possible to recycle waste heat from

production and distribute it through Älmhult’s district heating

network was opened during the year.

An operating loss of SEK 24.8 million was reported, compared

with operating income of SEK 49.7 million a year earlier. Sales

amounted to SEK 923.5 million (896.6).

Steel Stena Stål is a nationwide steel supplier in Sweden with a steadily

growing variety of steel products and services. Major overcapacity

in the steel sector has caused prices to decline and created difficult

conditions for Stena Stål. Despite weaker demand and price declines,

Stena Stål strengthened its market share and was able to improve

customer service.

The business area’s sales amounted to SEK 1,749.4 million

(1,978.4) with an operating loss of SEK 28.2 million, against

year-earlier operating income of SEK 12.2 million.

33

OilStena Oil is Scandinavia’s leading supplier of marine fuels and

bunkers ships mainly in the North Sea region and outside the coast

of West Africa. Bunker volumes in Europe fell during the year, and

merchant fleets were pressured by overcapacity. The opposite is

true of West Africa, where the market has grown for several years.

One incident during the year was the confiscation of two chartered

ships by the authorities in Sao Tomé, as described in more detail in

Stena Oil’s section on page 26.

Sales and operating income amounted to SEK 5,744.2 million

(8,116.0) and SEK 15.2 million (40.4), respectively.

Finance operationsStena Metall Finans manages financial operations and serves as

the Group’s internal bank. The company’s income was satisfactory.

Disciplined risk-taking and a diversified strategy were underlying

factors.

Changes in the Group’s compositionDuring the year the Group invested in two wind farms by acquiring

95% of Örbacken Energi HB and Möckelsjö Energi HB. The Möckelsjö

wind farm, located north of Härnösand, consists of five turbines.

The Örbacken wind farm owns ten turbines and is located south

of Mjölby. In September 2012 Stena Stål AB acquired Handelsstål

i Sundsvall AB.

Ormudden Invest AB was sold to Stena Rederi AB and Söderberg

& Björk AB was divested outside the Group. The subsidiaries Göran

Åströms Åkeri AB, Kretsloppsparken Kristianstad AB and AB Skan-

dinaviska Oljecentralen were merged.

Environmental informationThe large part of the Group’s operations is subject to environmental

notification or permit requirements. Six of the Group’s Swedish

companies operate in accordance with chapter 9 section 6 of the

Environmental Code (1999:808). In total, the companies have 120

facilities subject to notification or permit requirements. These com-

panies are engaged in the recycling of ferrous and non-ferrous scrap,

paper, electronics and the production of aluminium alloys. Opera-

tions also comprise the collection, storage and treatment of waste,

including hazardous waste, as well as storage of bunker oil and steel

pretreatment.

Two of the six companies are currently revising or renewing their

permits due to increased production volumes. The largest environ-

mental impacts from their operations are from noise and soil, air

and water emissions from handling and processing incoming mate-

rial. Fires occurred during the year, e.g., at the Malmö operations.

To strengthen environmental protection and prevent fires, the

Group relies on established control systems to achieve continuous

improvements to environmental and safety work. All companies

have specially appointed individuals with responsibility for safety

and environmental work. All recycling companies and steel opera-

tions are ISO 14001 certified.

Certain Group companies conduct operations on land which has

or may have been contaminated. Through environmental insurance,

the Stena Metall Group has transferred the risk to remediate conta-

minated soil to an insurance company. The insurance company’s

commitment applies as long as the insurance premium is paid.

Since the insurance company reinsures part of the risk with an

insurance company owned by the Group, the estimated liability

for all companies that are part of the Group is recognized in the

consolidated accounts. The insurance covers the estimated reme-

diation costs of the most likely occurrences for all of the Group’s

operating locations.

PersonnelDuring the year the number of employees in the Group was reduced

by 236, or 6 percent. The decrease is the result of attrition as well as

cutbacks. The Group has continued to intensify its efforts to develop

employee skills. One example is broad-based training in products

and materials as well as leadership.

The Group has taken a number of initiatives under the heading

“Workforce Flexibility” to better balance manpower supply and

demand and create positive impacts for both employer and

employee. This work will continue in 2013/2014.

Long-term, focused safety improvements to reduce the number

of incidents and accidents have continued and produced good

results. The number of accidents causing absences of one day or

more (LTIFR) has decreased and was below target for the year.

Absenteeism in the Group is at a relatively low level despite a

slight increase among blue collar employees.

Research and developmentThe Group conducts a number of environmental technology projects,

some on its own and others in cooperation with institutes of techno-

logy, universities, public authorities, organizations and other busines-

ses. During the year a total of around SEK 20 million (22) was invested

in research and development.

Accounting principlesThe accounting and valuation principles are unchanged from the

previous year’s annual report. The Group’s accounting principles

are explained on pages 40-42.

34

DIRECTORS’ REPORT

Significant risks and uncertainties The Stena Metall Group is exposed to a number of risk factors

outside its control, wholly or in part, but which could impact the

Group’s income and working capital. Demand for and purchases of

the company’s products are dependent on activity in the ironworking,

paper, construction, transportation and manufacturing sectors as

well as the private market. The company regularly monitors market

trends in order to quickly adapt to current conditions. See also Note

36 Financial instruments/risks.

Events after the balance sheet dateIn September the Pilkington Floatglas property in the Kistinge

industrial zone in Halmstad was acquired. Halmstad has been an

important production center for the Stena Metall Group for many

years, and the property enables it to invest in future recycling

processes.

To grow and develop the Group’s plastics recycling, a facility in

Perstorp that produces high-quality raw material for the plastics

industry was acquired on September 3.

The Group’s German subsidiary, Griag Glasrecycling AG,

was sold on September 1.

Sales and incomeThe Group’s sales amounted to SEK 25,404.2 million (35,192.9),

a decrease of 27.8 percent compared with the previous financial

year. The Parent Company’s sales were SEK 156.4 million (167.6),

of which intra-Group transactions accounted for SEK 148.3 million

(154.6).

The Group reported a net loss of SEK 249.2 million, against

year-earlier income of SEK 94.3 million. The Parent Company’s

income amounted to SEK 241.0 million (8.2).

Future outlookMajor uncertainty continues to affect the global economy.

The Group’s long, successful history and range of expertise position

us well to weather even tough times in the best way possible. The

Group expects continued challenging market conditions in terms

of price fluctuations, volumes and competition.

Parent CompanyThe Parent Company’s operations primarily consist of leasing

properties to Group companies and supplying certain Group-wide

functions such as internal audit and accounting.

35

GROUP

INCOME STATEMENTSeptember 1–August 31. SEK million Note 2012/2013 2011/2012

Net sales 1. 3 25,404.2 35,192.9

Cost of goods sold 1. 4 –23,982.6 –33,224.5

Gross income 1,421.6 1,968.4

Sales expenses 1. 4 –643.0 –706.0

Administrative expenses 2. 4 –903.3 –915.5

Income from investments in associated companies 5 2.8 2.4

Other operating income 6 90.7 99.7

Other operating expenses — –22.8

Operating income/loss 7 –31.2 426.2

Interest income and similar credits 8 98.0 144.7

Interest expenses and similar charges 9 –280.1 –375.9

Income/loss before tax –213.3 195.0

Taxes 10 –36.4 –99.8

Minority interests in income 11 0.5 –0.9

Net income/loss for the year –249.2 94.3

36

GROUP

BALANCE SHEET

August 31, SEK million Note 2013 2012

ASSETS

Fixed assets

Intangible fixed assets

Goodwill 12 900.3 1,033.8

Other intangible assets 13 3.4 5.9

Total intangible fixed assets 903.7 1,039.7

Tangible fixed assets

Buildings 14 1,165.8 1,199.1

Land and other real estate 15 565.7 557.8

Plant and machinery 16 2,035.8 1,674.9

Equipment 17, 35 54.5 313.2

Construction in progress 18 112.6 150.7

Total tangible fixed assets 3,934.4 3,895.7

Financial fixed assets

Shares and participations in associated companies 19 13.9 11.0

Other long-term securities 5.9 5.8

Deferred tax assets 20 51.8 57.0

Other long-term receivables 21 163.3 156.8

Total financial fixed assets 234.9 230.6

Total fixed assets 5,072.9 5,166.0

Current assets

Inventories 22 1,752.9 1,865.8

Current receivables

Accounts receivable 1,782.2 2,234.4

Prepaid tax 35.4 116.2

Other receivables 23 209.0 268.8

Prepaid expenses and accrued income 24 442.5 438.2

Total current receivables 2,469.1 3,057.6

Short-term securities 876.5 1,100.2

Cash and bank balances 2,136.0 1,687.7

Total current assets 7,234.5 7,711.3

TOTAL ASSETS 12,307.4 12,877.3

37

August 31, SEK million Note 2013 2012

SHAREHOLDERS’ EQUITY AND LIABILITIES

Shareholders’ equity

Share capital, 130,000 shares 13.0 13.0

Restricted reserves 311.6 319.6

Unrestricted reserves 4,097.9 4,005.3

Net income/loss for the year –249.2 94.3

Total shareholders’ equity 4,173.3 4,432.2

Minority interests 25 7.6 0.6

Provisions

Provisions for pensions 26 20.6 28.4

Other provisions 27 608.1 650.4

Total provisions 628.7 678.8

Long-term liabilities

Bond loans 28 3,895.0 4,586.4

Loans from credit institutions 29 497.5 258.6

Other liabilities 0.4 10.4

Total long-term liabilities 4,392.9 4,855.4

Current liabilities

Bond loans 28 300.0 —

Loans from credit institutions 30 88.6 194.1

Accounts payable 1,251.1 1,455.3

Tax liabilities 12.6 38.6

Other liabilities 31 498.5 257.6

Accrued expenses and prepaid income 32 954.1 964.7

Total current liabilities 3,104.9 2,910.3

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 12,307.4 12,877.3

Assets pledged 33 215.7 291.6

Contingent liabilities 33 512.8 357.9

38

GROUP

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

Share capital

Restricted reserves

Unrestricted reserves

Net income /loss

Total shareholders’

equity

Opening balance, September 1, 2011 13.0 320.4 3,736.6 336.6 4,406.6

Transfer of previous year’s income 336.6 –336.6 —

Dividend –57.5 –57.5

Transfer between restricted and unrestricted equity 37.4 –37.4 —

Translation differences, etc. –38.2 27.0 –11.2

Net income for the year 94.3 94.3

Closing balance, August 31, 2012 13.0 319.6 4,005.3 94.3 4,432.2

Transfer of previous year’s income 94.3 –94.3 —

Dividend –22.0 –22.0

Transfer between restricted and unrestricted equity –20.0 20.0 —

Translation differences, etc. 12.0 0.3 12.3

Net loss for the year –249.2 –249.2

Closing balance, August 31, 2013 13.0 311.6 4,097.9 –249.2 4,173.3

Specification of restricted reserves Aug. 31. 2013 Aug. 31. 2012

Equity portion of untaxed reserves 39.3 88.1

Other restricted reserves 272.3 231.5

Total 311.6 319.6

Translation differences, etc. consist of the year’s translation difference in foreign subsidiaries, -5.9 (-65.7), and the translation of loans pledged as collateral for equity in foreign

subsidiaries, 24.8 (54.5). The translation of deferred tax to a new tax rate, 22% (26.3), has reduced shareholders’ equity by 4.6.

39

GROUP

STATEMENT OF CASH FLOWSSeptember 1–August 31, SEK million Note 2012/2013 2011/2012

Operating activities

Income/loss before tax –213.3 195.0

Adjustments for non-cash items, etc. 643.1 813.7

429.8 1,008.7

Taxes repaid/paid 35.8 –306.0

Cash flow from operating activities before changes in working capital 465.6 702.7

Cash flow from changes in working capital

Increase(–)/decrease (+) in inventories 113.6 615.5

Increase (–)/decrease (+) in current receivables 501.5 590.6

Increase (+)/decrease (–) in current liabilities 23.2 –333.1

Cash flow from operating activities 1,103.9 1,575.7

Investing activities

Acquisition of subsidiaries and assets/liabilities 34 –125.6 –921.1

Sale of subsidiaries 34 9.3 –0.7

Acquisition of intangible fixed assets –1.3 –1.9

Acquisition of tangible fixed assets –387.5 –1.000.3

Sale of tangible fixed assets 42.2 88.4

Increase in financial assets –2.5 –197.2

Decrease in financial assets 223.7 2.5

Cash flow from investing activities –241.7 –2,030.3

Cash flow after investments 862.2 –454.6

Financing activities

Loan proceeds 300.0 —

Amortization of loan liabilities –690.2 –312.6

Share dividend –20.0 –52.5

Donation to foundation –2.0 –5.0

Cash flow from financing activities –412.2 –370.1

Cash flow for the year 450.0 –824.7

Liquid assets, September 1 1,687.7 2,527.5

Translation difference in liquid assets –1.8 –15.1

Liquid assets, August 31 34 2,136.0 1,687.7

Supplemental disclosure to statement of cash flows

Adjustments for non-cash items, etc.

Income from investments in associated companies –2.8 –2.4

Depreciation and impairment losses on assets 749.6 727.5

Unrealized translation differences –41.7 82.7

Capital gain/loss on sale of fixed assets –7.6 –35.4

Capital gain/loss on sale of subsidiaries –0.8 –11.6

Withdrawals from/provisions for pensions –6.5 –21.9

Other provisions –47.1 74.8

Total 643.1 813.7

40

GROUP, ACCOUNTING AND VALUATION PRINCIPLES

GROUP AND PARENT COMPANY

ACCOUNTING AND VALUATION PRINCIPLES Amounts stated in the annual report are in millions of Swedish kronor

(SEK million) unless indicated otherwise.

General accounting principlesThe annual report has been prepared in accordance with the

Annual Accounts Act, the recommendations of the Swedish

Financial Accounting Standards Council and the pronouncements

of the Emerging Issues Task Force.

The company’s shares are not publicly traded. Consequently,

it does not apply RR 18 Earnings per Share and RR 25 Segment

Reporting.

The accounting principles below apply to both the Group and

the Parent Company, unless indicated otherwise.

Consolidated accountsThe consolidated accounts have been prepared in accordance with

the Swedish Financial Accounting Standards Council’s recommen-

dation RR 1:00 Consolidated Financial Statements.

The consolidated financial statements comprise Stena Metall AB

and all companies in which the Parent Company at the end of the

financial year directly or indirectly owns more than 50 percent of

the voting rights or otherwise exercises a decisive influence. Com-

panies acquired during the year have been included in the consoli-

dated income statement as of their date of acquisition.

Intra-Group receivables and liabilities as well as transactions

between Group companies and internal gains are eliminated upon

consolidation.

The consolidated accounts have been prepared according to the

purchase method. The accounts of foreign subsidiaries have been

translated to Swedish kronor according to the current method.

Accordingly, all assets, provisions and liabilities are translated at

closing day exchange rates, while all income statement items are

translated at the average exchange rates for the year. Translation

differences are posted directly to shareholders’ equity.

The Parent Company’s shares in subsidiaries are measured at

cost, adjusted for any revaluations and impairment losses.

Associated companiesShareholdings in associated companies, in which the Group owns

at least 20 percent but not more than 50 percent of the voting rights

or otherwise exercises a significant influence over operational and

financial management, are reported according to the equity method.

The equity method means that the book value of the shares in

associated companies carried by the Group corresponds to its share

of these companies’ equity plus any residual surplus or deficit value.

In the consolidated income statement, the Group’s share of the

income before tax of associated companies is recognized as

“Income from investments in associated companies.” The Group’s

share of the reported taxes of associated companies is included in

the Group’s tax expenses. Profit shares earned after the acquisition

of associated companies and which have not yet been realized

through dividends or distributions are included in the Group’s

restricted equity.

MergerMergers are reported in accordance with BFNAR 1999:1 Merger

of wholly owned subsidiaries. The consolidated value method has

been applied, whereby the acquiring company reports the assets

and liabilities of the merged subsidiary at the values they had in

the consolidated accounts.

Classification Fixed assets, long-term liabilities and provisions largely consist of

the amounts that are expected to be recovered or paid more than

twelve months after the closing day. Current assets and liabilities

essentially consist of the amounts that are expected to be recovered

or paid within twelve months of the closing day.

Valuation principles, etc.Assets, provisions and liabilities have been valued at cost unless

indicated otherwise.

Transactions in foreign currencyTransactions in foreign currency are translated at the exchange

rate on the transaction date. Monetary assets and liabilities in

foreign currency are translated at closing day rates, with the

exception of long-term monetary balances with companies with

independent foreign operations, where the historical exchange

rate is used. Exchange rate differences that arise through the

translations are recognized in net income for the year. Non-mone-

tary assets and liabilities recognized at historic cost are translated

at the transaction date exchange rate. Where forward contracts

have been used as a currency hedge, the forward rate is applied.

Financial instrumentsFinancial instruments are recognized according to the cost method.

The Group has the following financial instruments:

Long-term securities and investments

In companies that trade securities the holding is recognized as

short-term investments in accordance with the lowest value princi-

ple. Security trades are recognized in net sales and cost of goods

sold.

41

In other companies, the holding of securities is recognized as

fixed assets at cost, where appropriate after impairment losses.

Accounts receivable

Accounts receivable are recognized at the amount expected to be

received based on an individual valuation. Credit insurance has

been obtained on a large part of the Group’s accounts receivable.

Liquid assets

For a definition of liquid assets, see Note 34 to the consolidated

financial statements.

Financial liabilities

Loans and other financial liabilities, e.g., accounts payable, are

measured at cost.

Derivatives

The Group uses several different derivatives to minimize currency

risks from financial flows as well as assets and liabilities. Moreover,

various fixed income instruments are used to ensure an appropriate

interest rate level.

Derivatives include forward contracts, options and swaps used

to cover the risk of changes in exchange rates and exposure to

interest rate risks. The derivatives are recognized according to the

cost method except when balance sheet items have been hedged,

in which case the contract rate is used in the valuation of the hedged

item.

Translation differences from the exposure of net assets in foreign

subsidiaries are posted directly to the Group’s shareholders’ equity.

Exchange rate differences from the revaluation of funding in foreign

currency designed to hedge foreign assets are also posted directly

to the Group’s shareholders’ equity and matched against the

translation differences in such foreign net assets.

The Group hedges anticipated future payment flows. Realized

results from foreign exchange contracts or currency option cont-

racts, including premiums paid or received from option contracts,

are accrued and recognized as an adjustment in the underlying

transaction when it occurs.

Interest rate swaps are used to hedge future interest payments.

Interest income or expenses according to these contracts are

accrued and recognized as an adjustment to the interest expense

from the underlying liability.

For a description of the Group’s financial risks, see Note 36 to the

consolidated financial statements.

Intangible fixed assets and amortization Intangible assets are measured at cost less accumulated amortiza-

tion and impairment losses. Amortization according to plan is

booked on a straight-line basis based on original cost less any resi-

dual value.

Goodwill (both consolidated goodwill and goodwill from asset

acquisitions) exceeding SEK 5 million is amortized over a period of

10-20 years. Goodwill of less than SEK 5 million for an individual

acquisition is amortized directly against income (materiality principle).

Amortization of goodwill is classified as sales expenses.

Research and development is expensed directly through profit

or loss.

Tangible fixed assets and depreciationTangible fixed assets are recognized as assets in the balance sheet

when it is likely based on available information that the future eco-

nomic benefits associated with the holding will accrue to the Group

and that the cost of the asset can be reliably estimated.

Incremental expenses are added to cost to the extent the asset’s

performance improves compared with when it was originally acqu-

ired. All other incremental expenses are expensed when they arise.

The branch network is considered part of production and its

costs are included in their entirety in the cost of goods sold. As a

result, all depreciation of fixed assets in the branch network has

been classified as cost of goods sold.

Other equipment relates to sales and administrative expenses.

Depreciation according to plan is booked on buildings and land

improvements, machinery and equipment, is based on initial cost

less any estimated residual value. Depreciation schedules are

based on the estimated useful lives of the assets.

Plant and machinery and equipment are depreciated over 3–20

years, buildings over 25–50 years and land improvements over 20

years.

The difference between the above-mentioned depreciation and

tax depreciation is recognized by the individual companies as acce-

lerated depreciation, which is included in untaxed reserves.

Impairment lossesIf there is an indication of an impairment loss, the recoverable

value of the assets in question is estimated as the higher of value

in use and net realizable value. Impairment losses are recognized

if the recoverable value is less than the net carrying value.

When calculating value in use, future cash flows are discounted

at a pretax interest rate that reflects the market’s estimate of the

risk-free rate of interest and risk associated with the specific asset.

An asset that is dependent on other assets is not considered to

generate independent cash flows. Such assets are instead attributed

to the smallest cash generating unit where the independent cash

flows can be identified.

Construction in progressThe cost of construction in progress is estimated on the same basis

as acquired assets. Each asset is reclassified once it can be taken

into use.

42

InventoriesInventories have been measured at the lower of cost and net reali-

zable value, with the risk of obsolescence taken into account. In

the case of semi-finished and finished goods produced in-house,

cost is comprised of direct manufacturing costs and a reasonable

share of indirect manufacturing costs. Normal capacity utilization

is assumed in the valuation.

ReceivablesReceivables are recognized at the amounts that are expected to

be received after an individual valuation.

ProvisionsA provision is recognized in the balance sheet when there is a formal

or informal commitment resulting from an incident that has occurred

and it is likely that an outflow of resources will be needed to settle

the commitment and a reliable estimate of the amount can be

made.

Employee benefitsPost-employment compensation such as pensions is disbursed in

large part through periodic payments to independent authorities

or institutions, which thereby assume the commitment to employ-

ees, i.e., through defined contribution plans. The Group’s income is

charged as the benefits are vested.

The remainder is fulfilled through defined benefit plans, where

the commitments are retained by the Stena Metall Group. Defined

benefit plans are recognized as provisions and relate to Norway.

For defined benefit plans, the company’s costs and the value of

outstanding commitments as of the closing day are estimated with

the help of actuarial calculations designed to determine the pre-

sent value of outstanding commitments. See also Note 26.

Certain pensions in Sweden are secured through insurance with

Alecta. Although they are designed as defined benefit plans, they

are recognized as defined contribution in accordance with UFR 6.

Certain pension obligations are secured through company-owned

endowment insurance.

Revenue recognitionRevenue primarily consists of the sale of goods and is recognized at

fair value when performance is rendered and the economic benefits

and risks associated with ownership are transferred to the buyer.

Revenue from service assignments is recognized when the services

are rendered. In cases where the Group has performed a service

and payment has been received before the material has been pro-

cessed as agreed with the customer, the revenue is recognized as a

liability until the service is completed.

Leasing In the consolidated accounts, leasing is classified as either finance

or operating. A lease where the economic risks and benefits are

essentially transferred to the lessee is defined as a finance lease.

Assets obtained through finance leases are recognized as fixed

assets in the consolidated balance sheet. The assets are depreciated

according to plan, while lease payments are recognized as interest

and amortization of liabilities. Other leases are recognized as ope-

rating leases, which means that the lease fee is expensed over the

lease term on the basis of utilization.

In the Parent Company, all leases are recognized according to

the rules for operating leases.

Loan expensesLoan expenses have been charged against income in the period to

which they refer regardless of how the borrowed funds have been

used.

TaxesTotal tax consists of current tax and deferred tax. Current tax is tax

that will be paid or credited for the current year. This includes any

adjustments to current tax attributable to earlier periods. Deferred

tax is calculated according to the balance sheet method on the

basis of temporary differences between the net carrying value of

assets and liabilities and their value for tax purposes. Temporary

differences are not taken into account in consolidated goodwill or

in any differences attributable to participations in subsidiaries and

associated companies that are not expected to be taxed in the

foreseeable future.

In the consolidated accounts, untaxed reserves are divided

between deferred tax liabilities and restricted equity. Deferred tax

assets in deductible temporary differences are recognized only to

the extent it is likely they will result in lower tax payments in the

future.

Group contributions and shareholders’ contributionsStena Metall reports Group contributions and shareholders’

contributions in accordance with pronouncement URA 7.

Group contributions are based on financial implication, i.e., to

minimize the Group’s total tax. Since Group contributions there-

fore do not constitute consideration for services rendered, they are

recognized directly in retained earnings after deducting their tax

effect.

Shareholders’ contributions are posted directly to the shareholders’

equity of the recipient and capitalized in the shares and participa-

tions of the contributor, to the extent impairment losses are not

required.

Contingent liabilitiesA contingent liability is recognized when a potential commitment

arises due to events that have occurred and whose occurrence is

only confirmed by one or more uncertain future events or when

there is a commitment that is not recognized as a liability or provi-

sion because it is unlikely that an outflow of resources will be

required.

43

GROUP

NOTES

2012/2013 2011/2012

Average number of employees Total Of whom men Total Of whom men

Parent Company

Sweden 14 8 14 8

Subsidiaries and representative offices

Sweden 1,823 1,465 1,979 1,589

Denmark 403 329 442 356

Norway 306 271 262 226

Finland 142 109 133 105

Germany 245 220 243 216

Switzerland 3 1 3 1

Austria 24 21 35 32

Italy 168 148 171 151

Poland 461 329 529 375

Czech Republic — — 12 13

USA 3 2 4 3

Brazil 2 2 3 3

Thailand 1 1 1 1

Group total 3,595 2,906 3,831 3,079

The average number of employees has been calculated based on the company’s paid working hours during the year in relation to the normal number of annual working hours

in the company. The Board of Directors of both the Group and the Parent Company consists exclusively of men. Of Stena Metall’s senior executives, none are women.

2012/2013 2011/2012

Salaries, remuneration and social insurance contributions

Salariesand other

remuneration

Social insurance contributions (of which pensions)

Salariesand other

remuneration

Social insurance contributions (of which pensions)

Parent Company 37.1 25.6 36.9 31.5

(15.1) (20.0)

Subsidiaries 1,384.3 445.7 1,503.8 449.4

(125.5) (152.4)

Group total 1,421.4 471.2 1,540.7 480.9

(140.7) (172.4)

1 Personnel

Salaries and other remuneration paid to the Parent Company’s President, Vice Presidents and the Board of Directors amounted to 19.2 (19.1) during the year.

Corresponding pension costs amount to 8.1 (9.6), while outstanding pension commitments total 45.1 (58.6).

An agreement has been reached with the President entitling him to 24 months’ severance pay.

The Stena Metall Group is covered by the collectively negotiated ITP plan (a Swedish pension plan), including an alternative ITP pension for salaried employees with salaries

exceeding ten times the income base amount. The alternative ITP applies the alternative Alecta premium, with the exception of senior executives in Executive Management

positions, where the premium is 30 percent of pensionable salary.

2012/2013 2011/2012

Salaries and other remuneration Parent Company Subsidiaries Parent Company Subsidiaries

Board and President

Salaries 14.8 35.1 13.9 41.0

Bonuses 4.4 8.7 5.2 13.7

Other employees

Salaries 14.2 1,304.5 14.3 1,398.3

Bonuses 3.7 36.0 3.5 50.8

Group total 37.1 1,384.3 36.9 1,503.8

44

2 Fees to auditors

2012/2013 2011/2012

Audit fees

PwC (previous year KPMG) 7.7 9.3

Revisionstjänst Falkenberg AB 0.1 0.1

Other 0.3 2.1

Total 8.1 11.5

Tax advice

PwC (previous year KPMG) 0.6 0.7

Other 0.5 0.7

Total 1.1 1.4

Other services

PwC (previous year KPMG) 0.9 3.8

Other 0.5 2.4

Total 1.4 6.2

Audit assignments refer to the review of the annual report and accounts and the admi-

nistration by the Board of Directors and the President. Also included are other duties

that are the responsibility of the company’s auditors as well as consulting or other assis-

tance resulting from observations during such reviews or the implementation of such

other duties. All other work is considered other services.

3 Net sales

By business area 2012/2013 2011/2012

Recycling 10,720.0 14,042.1

Aluminium 923.5 896.6

Electronics recycling 803.4 921.0

Oil 5,774.2 8,116.0

Steel 1,749.4 1,978.4

Trading 1,042.8 2,289.1

Finance 4,302.3 6,885.3

Other 88.6 64.4

Total 25,404.2 35,192.9

By geographical market 2012/2013 2011/2012

Europe 21,728.5 27,691.4

Rest of world 3,675.7 7,501.5

Total 25,404.2 35,192.9

By significant revenue source 2012/2013 2011/2012

Goods 19,737.5 26,894.5

Services 1,363.4 1,404.9

Securities trading 4,302.3 6,885.3

Other 1.0 8.2

Total 25,404.2 35,192.9

Excise duties of 0.1 (0.1) are included in sales.

4 Operating expenses

2012/2013 2011/2012

Amortization/depreciation according to plan and impairment losses by item

Cost of goods sold –560.2 –523.7

Sales expenses –156.9 –163.3

Administrative expenses –32.5 –40.5

Total –749.6 –727.5

Amortization/depreciation and impairment losses according to plan by asset

Goodwill –141.5 –146.4

Other intangible assets –1.3 –7.2

Buildings –96.9 –85.1

Land improvements –7.1 –6.9

Plant and machinery –452.4 –434.2

Equipment –50.4 –47.7

Total –749.6 –727.5

Operating expenses include a provision to cover future soil remediation expenses. The

provision, which was allocated in accordance with the requirements of the Environmen-

tal Code, was made to an environmental insurance policy. See also Note 27 Other provi-

sions.

5 Income from investments

in associated companies

2012/2013 2011/2012

Retupapperscentralen i Uppsala HB 2.3 2.1

Other 0.5 0.3

Total 2.8 2.4

6 Other operating income

2012/2013 2011/2012

Rent from lease of ships, net 41.6 35.0

Recovered receivable 19.3 10.2

Gain on sale of tangible fixed assets 13.5 40.9

Grants received 4.3 1.4

Rental income 2.8 1.6

Insurance compensation 2.2 3.2

Other 7.0 7.4

Total 90.7 99.7

GROUP NOTES

45

7 Operating income

By business area 2012/2013 2011/2012

Recycling –5.4 270.2

Aluminium –24.8 49.7

Electronics recycling –163.6 16.3

Oil 15.2 40.4

Steel –28.2 12.2

Trading 5.1 22.7

Finance 99.9 43.8

Other 70.6 –29.1

Total –31.2 426.2

By geographical market

Europe –51.0 378.9

Rest of world 19.8 47.3

Total –31.2 426.2

Net exchange rate differences recognized in operating income amount to -2.7 (-10.3).

8 Interest income and similar credits

2012/2013 2011/2012

Interest income 70.7 44.8

Exchange rate differences 27.3 99.9

Total 98.0 144.7

9 Interest expenses and similar charges

2012/2013 2011/2012

Interest expenses –207.8 –264.6

Exchange rate differences –34.7 –63.5

Other –37.6 –47.8

Total –280.1 –375.9

10 Taxes

2012/2013 2011/2012

Current tax –19.3 –53.3

Deferred tax –17.1 –46.5

Total –36.4 –99.8

Current tax

Current tax for the period –19.9 –52.6

Adjustment of previous years’ tax 0.6 –0.7

Total –19.3 –53.3

Note 10 Taxes, cont.

Deferred tax

Related to temporary differences –11.2 –18.0

Related to tax loss carryforwards –5.9 –28.5

Total –17.1 –46.5

Deferred tax related to temporary differences primarily refers to accelerated

depreciation of tangible fixed assets.

Reconciliation of reported tax charge

Income/loss before tax –213.3 195.0

Tax according to Parent Company’s current tax rate (26.3%) 56.1 –51.3

Effect of other tax rates for foreign subsidiaries –5.2 –2.1

Effect of revised tax rates –13.2 —

Amortization of goodwill –31.9 –32.9

Other non-deductible expenses –17.4 –31.9

Tax-exempt revenue 31.1 4.1

Utilized tax loss carryforwards 29.8 54.0

Unreported tax assets on net loss for the year –85.0 –42.7

Tax attributable to previous years 0.6 –0.7

Other –1.3 3.7

Reported tax charge –36.4 –99.8

11 Minority interests in income

Refers to the minority owners’ interest in the loss of the newly acquired partnerships

Örbacken Energi HB (5%) 0.3 and Möckelsjö Energi HB (5%) 0.2.

12 Goodwill

Aug. 31, 2013 Aug. 31, 2012

Acquisition value, opening balance 1,692.8 1,169.4

Acquisition of subsidiaries 5.3 658.5

Divestment of subsidiaries –16.7 —

Disposal of fully amortized goodwill –14.1 –67.4

Translation differences 21.7 –67.7

Acquisition value, closing balance 1,689.0 1,692.8

Accumulated amortization, opening balance –659.0 –578.2

Accumulated amortization in acquired companies, opening balance — –39.2

Divestment of subsidiaries 11.9 —

Amortization and impairment losses for the year –141.5 –146.4

Disposal of fully amortized goodwill 14.1 67.4

Translation differences –14.2 37.4

Accumulated amortization, closing balance –788.7 –659.0

Net carrying value 900.3 1,033.8

46

14 Buildings

Aug. 31, 2013 Aug. 31, 2012

Acquisition value, opening balance 1,953.7 1,612.5

Acquired companies — 232.6

Divested companies –10.1 —

Acquisitions during the year 20.8 154.6

Reclassification 45.8 39.5

Reclassification from intangible assets –12.5 —

Sales and disposals –4.1 –10.5

Translation differences etc. 7.0 –75.0

Acquisition value, closing balance 2,000.6 1,953.7

Accumulated depreciation, opening balance –776.8 –678.3

Accumulated depreciation in acquired companies, opening balance — –50.5

Accumulated depreciation in divested companies, opening balance 5.0 —

Reclassifications –1.1 —

Reclassification from intangible assets 8.6 —

Sales and disposals 3.3 4.6

Depreciation for the year –84.3 –81.9

Translation differences etc. 0.1 29.3

Accumulated depreciation, closing balance –845.2 –776.8

13 Other intangible assets

Aug. 31, 2013 Aug. 31, 2012

Acquisition value, opening balance 50.2 62.1

Acquisitions during the year 1.2 1.9

Disposal of fully amortized assets — –2.1

Divested companies — –5.7

Reclassification to tangible fixed assets –18.1 —

Translation differences etc. –2.9 –6.0

Acquisition value, closing balance 30.4 50.2

Accumulated amortization, opening

balance – 44.3 –49.4

Amortization for the year –1.3 –7.2

Disposal of fully amortized assets — 2.1

Divested companies — 5.1

Reclassification to tangible fixed assets 14.9 —

Translation differences etc. 3.7 5.1

Accumulated amortization,

closing balance –27.0 –44.3

Net carrying value 3.4 5.9 15 Land and other real estate

Aug. 31, 2013 Aug. 31, 2012

Acquisition value, opening balance 613.8 625.2

Acquired companies –3.0 12.5

Acquisitions during the year 8.4 6.7

Reclassification 3.0 –2.1

Reclassification from intangible assets 3.5 —

Sales and disposals –1.8 –1.9

Translation differences etc. 5.3 –26.6

Acquisition value, closing balance 629.2 613.8

Accumulated depreciation, opening balance –84.5 –78.0

Sales and disposals 0.2 —

Depreciation for the year –7.1 –6.9

Translation differences etc. –0.6 0.4

Accumulated depreciation, closing balance –92.0 –84.5

Accumulated revaluations, net, closing balance 28.5 28.5

Net carrying value 565.7 557.8

The acquisition value of land amounts to 443.8 (430.2).

GROUP NOTES

Revaluations, opening balance 45.6 49.0

Translation differences 1.6 –3.4

Depreciation of revaluated amount, opening balance –23.3 –22.3

Depreciation of revaluated amount for the year –3.0 –3.2

Translation differences –0.7 2.2

Accumulated revaluations, net, closing balance 20.2 22.3

Accumulated impairment losses, opening balance –0.1 –0.1

Impairment losses for the year –9.7 —

Accumulated impairment losses, closing balance –9.8 –0.1

Net carrying value 1,65.8 1,199.1

Note 14 Buildings, cont.

47

16 Plant and machinery

Aug. 31. 2013 Aug. 31. 2012

Acquisition value, opening balance 5,699.3 5,180.9

Acquired companies 486.0 349.3

Acquisitions during the year 186.6 387.4

Reclassification 147.9 131.9

Reclassification from intangible assets 12.1 —

Sales and disposals –222.1 –168.9

Translation differences etc. 44.6 –181.3

Acquisition value, closing balance 6,354.4 5,699.3

Accumulated depreciation, opening balance –3,993.9 –3,629.1

Accumulated depreciation in acquired companies, opening balance — –185.8

Reclassification 1.0 3.1

Reclassification from intangible assets –13.9 —

Sales and disposals 198.8 124.0

Depreciation for the year –427.2 –426.5

Translation differences etc. –27.7 120.4

Accumulated depreciation, closing balance –4,262.9 –3,993.9

Accumulated impairment losses, opening balance –30.5 –22.8

Impairment losses for the year –25.2 –7.7

Accumulated impairment losses, closing balance –55.7 –30.5

Net carrying value 2,035.8 1,674.9

With regard to the leasing of tangible assets, see Note 35.

Note 17 Equipment, cont.

17 Equipment

Aug. 31. 2013 Aug. 31. 2012

Acquisition value, opening balance 488.7 –248.6

Acquired companies — –0.2

Divested companies –258.1 —

Acquisitions during the year 6.7 279.2

Reclassification -0.1 6.7

Reclassification from intangible assets 15.0 —

Sales and disposals –33.0 –42.0

Translation differences etc. 1.6 –3.6

Acquisition value, closing balance 220.8 488.7

Accumulated depreciation, opening balance –175.5 –155.8

Accumulated depreciation in acquired companies, opening balance — 0.5

Accumulated depreciation in divested companies, opening balance 45.9 —

Reclassification — –3.1

18 Construction in progress

Aug. 31. 2013 Aug. 31. 2012

Acquisition value, opening balance 150.7 94.8

Acquired companies — 3.4

Acquisitions during the year 165.0 238.1

Reclassification –196.6 –176.0

Translation differences 1.9 –4.9

Other –8.4 –4.7

Net carrying value 112.6 150.7

Reclassification from intangible assets –9.6 —

Sales and disposals 24.3 27.6

Depreciation for the year –50.3 –47.7

Translation differences etc. –1.1 3.0

Accumulated depreciation, closing balance –166.3 –175.5

Net carrying value 54.5 313.2

With regard to leasing of fixed assets, see Note 35.

19 Shares and participations

in associated companies

Indirectly ownedVoting

rights, %Equity

interest, %

Net carrying

value

Returpapperscentralen i Uppsala HB, corp. ID no. 916513-9313, Uppsala 50.0 50.0 7.7

Jern og Metallomsetning AS, Norge 50.0 50.0 5.2

Mørlandsmoens Bilupphuggning AS, Norway 33.3 33.3 0.5

Stenoco Miljø AS, Norway 40.0 40.0 0.4

Sp/f Gotship, Faroe Islands 49.0 49.0 0.1

Total 13.9

Accumulated cost Aug. 31, 2013 Aug. 31, 2012

Net carrying value, opening balance 11.0 5.4

Acquired holdings 0.5 5.3

Share of net income for the year 2.8 2.4

Distribution/withdrawal from partner-ships — –2.0

Translation difference –0.4 –0.1

Net carrying value, closing balance 13.9 11.0

48

21 Other long-term receivables

Aug. 31, 2013 Aug. 31, 2012

Endowment insurance 115.2 102.7

Interest-bearing receivables 44.1 49.0

Other 4.0 5.1

Total 163.3 156.8

Aug. 31, 2013 Aug. 31, 2012

Opening balance 156.8 140.2

Additional receivables 12.5 106.9

Settled receivables –6.1 –80.8

Translation differences 0.1 –9.5

Net carrying value, closing balance 163.3 156.8

22 Varulager

Aug. 31, 2013 Aug. 31, 2012

Goods for resale, raw materials 1,516.1 1,572.6

Goods for resale, finished products 236.8 293.2

Total 1,752.9 1,865.8

23 Other current receivables

Aug. 31, 2013 Aug. 31, 2012

Value-added tax 113.8 175.6

Advance payments to suppliers 1.0 3.5

Interest-bearing receivables 0.1 16.1

Other 94.1 73.6

Total 209.0 268.8

24 Prepaid expenses and

accrued income

Aug. 31, 2013 Aug. 31, 2012

Prepaid overhead 182.8 194.4

Goods delivered not invoiced 165.3 193.8

Accrued interest income 3.9 4.5

Other 90.5 45.5

Total 442.5 438.2

25 Minority interests

Refers to the minority owners’ interest in the newly acquired partnerships Örbacken

Energi HB (5%) 4.0 and Möckelsjö Energi HB (5%) 3.0, as well as in Bilretur ABC AB

(49%) 0.3 (0.3) and Stena Technoworld Asia Pacific Co Ltd (49%) 0.3 (0.3).

26 Provisions for pensions

Aug. 31, 2013 Aug. 31, 2012

Net carrying value, opening balance 28.4 25.1

Acquired companies — 26.5

Provisions during the period 0.2 5.0

Utilized during the period — –14.1

Reversal of unused amount –6.6

Redemption of debt — –13.2

Translation differences –1.4 –0.9

Net carrying value, closing balance 20.6 28.4

Defined benefit plans are used in Norway. For actuarial calculations in Norway, a discount

rate of 3.9% (3.8) has been used and the anticipated salary increase has been estimated at

3.25% (3.25). The pension liability for defined benefit plans amounts to 20.2 (24.5).

Pension costs for the year Aug. 31, 2013 Aug. 31, 2012

Defined contribution plans 120.7 146.3

Defined benefit plans — 5.0

Total pension costs for the year 120.7 151.3

GROUP NOTES

20 Deferred tax assets/

Provisions for deferred taxes

Aug. 31, 2013 Aug. 31, 2012

Net carrying value, opening balance 57.0 34.3

Acquired companies — 79.0

Divested companies 16.1 —

Additional receivables/utilized provi-sions 55.3 41.1

Settled receivables/provisions –72.4 –87.6

Change in tax rate 22% (26.3%) –4.6 —

Translation differences 0.4 –9.8

Net carrying value, closing balance 51.8 57.0

Provisions for deferred taxes Temporary differences arise when the net carrying values of assets and liabilities differ

from their tax values. The Group’s temporary differences have resulted in deferred tax

liabilities/tax claims for the following items:

Aug. 31, 2013 Aug. 31, 2012

Tangible assets –163.7 –187.5

Inventories 1.7 1.3

Receivables 39.7 45.5

Provisions for pensions 5.7 8.3

Other provisions 64.0 62.7

Liabilities 3.3 8.9

Tax loss carryforwards 100.9 115.1

Other 0.2 2.7

Total 51.8 57.0

Deferred tax assets related to tax loss carryforwards which have not been recognized in

the income statement and balance sheet amount to 473,7 (490.9). Finland and Poland

have time limits on the use of tax loss carryforwards.

49

27 Other provisions

Aug. 31, 2013 Aug. 31, 2012

Future soil remediation costs 384.0 376.8

Unsecured pension commitments 152.2 123.7

Other 71.9 149.9

Total 608.1 650.4

Aug. 31, 2013 Aug. 31, 2012

Net carrying value, opening balance 650.4 578.8

Acquired companies — 16.3

Provisions during the period 138.4 88.0

Utilized during the period –185.3 –24.6

Translation differences, etc. 4.6 –8.1

Net carrying value, closing balance 608.1 650.4

The provisions are primarily expected to be paid after more than 12 months.

Certain Group companies conduct operations on land which has or may have been

contaminated. Through environmental insurance, the Stena Metall Group has transfer-

red the risk to remediate contaminated soil to an insurance company. The insurance

company’s commitment applies as long as the insurance premium is paid. Since the insu-

rance company reinsures part of the risk with an insurance company owned by the

Group, the estimated liability for all companies that are part of the Group is recognized

in the consolidated accounts. The insurance covers the estimated remediation costs,

assuming the most likely outcome, for all the Group’s operating locations. The premium

is paid annually and reported under the heading Cost of goods sold.

30 Short-term loans

from credit institutions

Aug. 31, 2013 Aug. 31, 2012

Utilized bank overdraft facilities 1.2 137.9

Leasing liabilities 61.5 53.9

Other loans 25.9 2.3

Total 88.6 194.1

The Group has credit commitments of 854.4 (1,058.1), of which 853.2 (920.2) has not

been utilized. The agreement contains financial covenants.

31 Other current liabilities

Aug. 31, 2013 Aug. 31, 2012

Employee salaries and withholding taxes 69.8 76.3

Value-added tax 64.9 106.0

Property tax 3.7 3.4

Advance payments from customers 272.6 11.1

Other 87.5 60.8

Total 498.5 257.6

29 Long-term loans from credit institutions

Aug. 31, 2013 Aug. 31, 2012

Leasing liabilities 37.9 81.7

Other liabilities 459.6 176.9

Total 497.5 258.6

The Group has credit commitments of 2,000.0 (2,000.0), of which 2,000.0 (2,000.0)

has not been utilized. The agreement contains financial covenants.

28 Bond loans

The loans are issued by AB Stena Metall Finans (publ) and guaranteed by the Parent Company.

The loans carry variable rates of interest.

Bond loanRemaining

maturityAug. 31,

2013Aug. 31,

2012

SE0001965419 2007-2013 — 500.0

SE0003395920 2010-2013 — 300.0

SE0001933839 2007-2014 1 year 300.0 600.0

SE0001934175 2007-2015 2 years 300.0 300.0

SE0003395938 2010-2015 2 years 300.0 300.0

SE0003918119 2011-2016 3 years 425.0 425.0

SE0003395946 2010-2017 4 years 400.0 400.0

SE0003918127 2011-2017 4 years 300.0 300.0

SE0003950443 2011-2017 4 years 200.0 200.0

SE0003950450 2011-2017 4 years 400.0 400.0

SE0005249323 2013-2018 5 years 500.0 —

NO0010612203 2011-2016 3 years NOK 690 745.8 NOK 750 861.40

NO0010682370 2013-2018 5 years NOK 300 324.2 —

Summa 4,195.0 4,586.4

50

33 Assets pledged and contingent liabilities

Aug. 31, 2013 Aug. 31, 2012

Assets pledged to credit institutions

Real estate mortgages — 30.3

Chattel mortgages — 21.7

Tangible fixed assets, lease financing 99.4 135.7

Total 99.4 187.7

Assets pledged for other liabilities

Liquid assets 1.0 1.0

Endowment insurance 115.2 102.7

Other 0.1 0.2

Total 116.3 103.9

Total assets pledged 215.7 291.6

Contingent liabilities

Sureties 66.0 62.0

Guarantees and other contingent lia-bilities 435.2 288.7

Import letters of credit 3.8 —

Obligations for partnerships 7.8 7.2

Total contingent liabilities 512.8 357.9

34 Cash flow and acquisitions

In the statement of cash flows, the effects of acquired subsidiaries and business units have

been excluded from other changes in the balance sheet. The sum of payments for these

acquisitions after deducting liquid assets in the acquired units is reported on a separate line

in the statement of cash flows. The effect of changes in exchange rates on the translation

of foreign Group companies is also excluded, since it does not impact cash flow.

Liquid assets consist of cash, bank balances and other money market instruments with

an original term of less than three months.

Interest paid amounted to -214.7 (-295.4) and interest received to 39.4 (71.2). Divi-

dends received amounted to 26.6 (14.1).

The following acquisitions and other changes in Group companies were made during

the year.

In September 2012 Stena Stål AB acquired 100% of the shares in Handelsstål i Sunds-

vall AB. Stena Metall AB acquired 95% of the shares in Örbacken Energi HB and Möckelsjö

Energi HB in December 2012,.

Ormudden Invest AB was sold during the year to the Stena-sphere company Stena

Rederi AB. Söderberg & Björk AB was sold externally.

During the year Göran Åströms Åkeri AB and Kretsloppsparken Kristianstad AB were

merged with Stena Recycling AB and AB Skandinaviska Oljecentralen with Stena Fragmen-

tering AB.

35 Leasing

Group as lessee Operating leases relate primarily to time chartered vessels and vessels leased on a bare-

boat basis. Properties are leased as well. The year’s cost for operating leases amounted

to 294.6 (300.0) and consists of minimum lease fees.

The Group’s finance leases comprise plant and machinery as well as company cars.

Their acquisition value as of the closing day was 256.1 (271.5), while their net carrying

value was 99.5 (135.5). See Notes 16 and 17.

Future minimum lease fees as of the closing day amounted to:

Operating leasesFinance leases

Within one year 162.0 52.5

Later than one year but within five years 258.5 41.4

Later than five years 55.8 –

Total minimum lease fees 476.3 93.9

32 Accrued expenses

and prepaid income

Aug. 31, 2013 Aug. 31, 2012

Accrued cost of goods sold 322.0 384.3

Accrued salaries and payroll overhead 313.4 307.1

Interest 28.5 30.2

Incineration and sludge reserve 52.5 59.0

Other 237.7 184.1

Total 954.1 964.7

GROUP NOTES

Note 34 Cash flow, cont.

Group as lessor During the year the Group leased out two ships through operating leases. Leasing reve-

nue is recognized on a straight-line basis over term of the leases, which in all cases is 10

years. The vessels were sold as of August 29, 2013.

During the financial year companies were acquired for an aggregate of 147.3 (921.1)

and divested for 59.0 (0.1). For these companies, the total value of the acquired assets

and liabilities, purchase prices and the effect on the Group’s liquid assets were as fol-

lows:

Acquired companies Aug. 31, 2013 Aug. 31, 2012

Intangible fixed assets 4.8 619.7

Tangible fixed assets 486.0 328.2

Financial fixed assets — 106.3

Inventories 1.5 114.7

Other assets 2.0 134.3

Minority interests –7.5 8.9

Provisions — –47.5

Liabilities –361.2 –343.5

Assets and liabilities, net 125.6 921.1

Purchase price paid 147.3 921.1

Cash and bank balances in acquired companies –21.7 —

Effect on the Group’s liquid assets 125.6 921.1

Divested companies Aug. 31, 2013 Aug. 31, 2012

Intangible fixed assets 4.9 0.1

Tangible fixed assets 220.3 1.7

Inventories — 0.6

Operating receivables 19.2 2.8

Provisions –16.0 4.6

Liabilities –219.9 –22.1

Assets and liabilities, net 8.5 –12.3

Capital gain 0.8 11.6

9.3 –0.7

Purchase price received 59.0 0.1

Cash and bank balances in divested companies –49.7 –0.8

Effect on the Group’s liquid assets 9.3 –0.7

51

Forward contracts, nominal amounts, SEK million Bought Sold

DKK 21.6

EUR 41.5

NOK 18.2

PLN 5.8

SEK 317.5

USD 321.6

Nominal amounts

Currency option contracts —

The following table summarizes the contracts entered into to hedge the Group’s

exchange rate risks:

Currency swaps

CurrencyNominal amount SEK million Maturity

AUD 1.0 5.8 2013-12-30

CHF 2.0 14.1 2013-12-30

DKK 373.5 435.4 2013-12-30

EUR 186.8 1,624.5 2013-12-30

GBP 3.3 33.2 2013-12-30

HKD 7.0 5.9 2013-12-30

NOK 61.0 65.5 2013-12-30

USD 196.3 1,276.1 2013-12-30

PLN 50.0 101.5 2013-12-30

36 Financial instruments/risks

The Stena Metall Group’s operations are exposed to various types of financial risks.

The Group uses financial instruments in accordance with the rules of its financial policy

to reduce the risk of a major impact on income from these risks.

Fixed assets are financed in local currency. Working capital is financed in local cur-

rency or in the currency in which the sales proceeds are expected to be paid. To the

extent assets and liabilities in each currency cannot be matched, the net position is

adjusted with the help of financial instruments.

Currency risks arise in part through the translation of income and balance sheet

items in foreign currency to Swedish kronor and in part through the translation of cash

flows in foreign currency. These currency risks are reduced by hedging exchange rates

with derivatives.

These financial risks are managed in accordance with the authorization limits esta-

blished in the Group’s financial policy by the finance department through the units in

Sweden and Switzerland, as well as through operating units with regard to inventory

risks. All financial instruments are traded with counterparties that are considered to

have satisfactory creditworthiness and where the terms and settlement routines are

well documented. Normally no collateral is pledged by either party for any credit risks in

financial instruments.

Currency risks Currency risks in Stena Metall’s operations are related to changes in the value of cont-

racted and anticipated future payment flows, changes in the value of loans and invest-

ments, and changes in the value of assets and liabilities in foreign subsidiaries.

The Group’s policy is to hedge a large part of anticipated future payment flows based

on the transactions it enters into. Shareholders’ equity in foreign subsidiaries is hedged

on a case-to-case basis. The same applies to income in local currency.

The following table shows the Group’s forward contracts as per the closing day.

Interest rate risks Interest rate risks refer to risks that changes in interest rate levels will affect the Group’s

income and cash flow or the fair value of financial assets and liabilities. The goal is to

minimize interest rate risks in the form of imbalances between interest-bearing items in

the balance sheet with variable and fixed interest rates and the fixed interest rate peri-

ods on a significant share of net cash (cash and bank balances less interest-bearing liabi-

lities). By matching the fixed interest period of financial assets and liabilities, the expo-

sure to interest rate risks is reduced. Interest rate swaps are used to change the fixed

interest period of the Group’s financial assets and liabilities. See also Notes 28-31.

Credit risksThe Group’s receivables from counterparties are managed according to established rou-

tines. Each counterparty is assigned a limit based on its estimated solvency and profit

margins.

Liquidity risksTo meet the Group’s need for liquid assets, agreements have been entered into with

several major banks on credit facilities. The agreements contain financial covenants.

Cash flow risksManaged through credit insurance on accounts receivable.

Inventory risks To minimize the risk of a price drop for inventory assets, the financial policy specifies the

lowest and highest allowable inventory levels. Any price drops are reported as incurred

against income.

Oil risksStena Oil’s price exposure in its inventory is reduced through forward contracts.

Electricity price risks Stena Metall buys electricity on the Nord Pool spot market corresponding to its con-

sumption in Sweden and Finland, which amounted to 87 GWh during the financial year.

To reduce its exposure to fluctuations in the price of electricity, the Group hedges its

purchases by buying forward contracts on the electricity exchange. Forward contracts

are purchased according to a predetermined rolling schedule over a four-year period. As

of August 31, 2013, 82% of purchases was hedged for the coming year, 71% was hedged

for 2014-2015, 63% for 2015-16, 43% for 2016-17 and 12% for 2017-18.

TradingAs part of the finance operations, currency and fixed income instruments are traded. All

trades take place within the guidelines of the Group’s authorization limits.

Financial instruments – market valuationThe table below indicates the market value of financial instruments in the balance sheet

and financial derivatives outside the balance sheet. When determining market value, lis-

ted prices as of August 31 have primarily been used when available. For certain instru-

ments with short terms, such as liquid assets, accounts receivable, accounts payable and

short-term loan liabilities, book value has been used instead. Estimations of the market

value of listed financial instruments are based on closing values, i.e., the market value

that would be received or paid for the instrument in question. The following table shows

the market value of financial instruments:

52

Stena ABStena Metall’s subsidiary Stena Oil AB sells bunker oil for ships to the Stena AB Group.

The value of these sales amounted to 1,907.5 (2,873.0).

Stena Metall has paid Stena Line UK 93.7 (76.5) to charter two ships, which have

then been rechartered to Stena Line Irish Sea for 135.3 (111.4). The vessels were sold to

Stena Rederi AB in August 2013.

The Stena AB Group also performs certain services for Stena Metall, for which 4.7

(3.5) has been paid.

Stena Line IT Services AB and Stena Line Scandinavia AB have been paid 0.5 (8.2) for

the Stena Metall Group’s portion of shared costs. In addition, 1.0 (0.2) has been paid to

Stena Fastigheter AB for rents and property management.

Olsson familyStena Metall rents offices from the family. Rents paid amounted to 9.6 (10.0).

All transactions with related parties are carried out on market terms.

38 Events after the balance sheet date

On September 3 Stena Recycling acquired a new facility in Perstorp that produces raw

material for the Swedish plastics industry. In September Pilkington Floatglas’s property

in the Kistinge industrial zone in Halmstad was acquired as well.

The German subsidiary Griag Glasrecycling AG was sold as of September 1.

36 Financial instruments/risks, cont.

GROUP NOTES

Net carrying value 2013

Fair value 2013

Net carrying value 2012

Fair value 2012

Assets

Other long-term securities 5.9 5.9 5.8 5.8

Other long-term receivables 163.3 163.3 156.8 156.8

Accounts receivable 1,782.2 1,782.2 2,234.4 2,234.4

Short-term securities 876.5 1,019.2 1,100.2 1,187.9

Liquid assets 2,136.0 2,136.0 1,687.7 1,687.7

Liabilities

Bond loans 4,195.0 4,195.0 4,586.4 4,586.4

Loans from credit institutions 586.1 586.1 452.7 452.7

Accounts payable 1,251.1 1,251.1 1,455.3 1,455.3

Derivatives

Interest risk management — –8.1 — –21.4

Currency risk management — –1.2 — 14.1

Oil risk management — –2.8 — 12.1

Metal risk management — 2.9 — 12.3

Electricity price risk management — –13.0 — –18.7

37 Related party information

Derivatives are held to hedge the Group’s risks.

53

September 1–August 31, SEK million Note 2012/2013 2011/2012

Net sales 1 156.4 167.6

Cost of goods sold 5 –33.8 –34.0

Gross income 122.6 133.6

Administrative expenses 2, 3, 4, 5 –78.0 –85.8

Other operating income 9.6 1.2

Operating income 54.2 49.0

Income from shares in group companies 6 230.5 —

Interest income and similar credits 6 3.8 45.2

Interest expenses and similar charges 7 –46.4 –84.1

Income after financial items 242.1 10.1

Appropriations 8 2.2 1.6

Income before tax 244.3 11.7

Taxes 9 –3.3 –3.5

Net income for the year 241.0 8.2

PARENT COMPANY

INCOME STATEMENT

54

PARENT COMPANY

BALANCE SHEETAugust 31, SEK million Note 2013 2012

ASSETS

Fixed assets

Tangible fixed assets

Buildings 10 279.0 267.6

Land and other real estate 11 233.6 228.8

Plant and machinery 12 3.4 4.1

Equipment 13 2.6 6.2

Construction in progress 14 12.8 12.2

Total tangible fixed assets 531.4 518.9

Financial fixed assets

Receivables from Group companies 315.8 168.7

Shares and participations in Group companies 15 1,408.7 1,265.8

Other long-term securities 3.0 3.0

Other long-term receivables 16 113.5 105.4

Total financial fixed assets 1,841.0 1,542.9

Total fixed assets 2,372.4 2,061.8

Current assets

Current receivables

Accounts receivable 1.8 2.6

Receivables from Group companies 1,264.4 1,165.0

Prepaid tax 17.5 95.9

Other receivables 21.8 5.0

Prepaid expenses and accrued income 5.5 4.5

Total current receivables 1,311.0 1,273.0

Cash and bank balances 23.0 35.5

Total current receivables 1,334.0 1,308.5

TOTAL ASSETS 3,706.5 3,370.3

55

August 31, SEK million Note 2013 2012

SHAREHOLDERS’ EQUITY AND LIABILITIES

Shareholders’ equity

Restricted equity

Share capital, 130,000 shares 13.0 13.0

Restricted reserves 2.6 2.6

Total restricted shareholders’ equity 15.6 15.6

Unrestricted equity

Unrestricted reserves 2,223.6 2,282.8

Net income for the year 241.0 8.2

Total unrestricted equity 2,464.6 2,291.0

Total shareholders’ equity 2,480.2 2,306.6

Untaxed reserves 17 5.6 7.7

Provisions

Provisions for deferred taxes 1.4 1.5

Other provisions 18 105.9 98.0

Total provisions 107.3 99.5

Long-term liabilities

Loans from Group companies 1,058.3 912.3

Total long-term liabilities 1,058.3 912.3

Current liabilities

Advances from customers 1.4 1.4

Accounts payable 5.4 6.7

Loans from Group companies 3.2 —

Other liabilities 16.6 5.0

Accrued expenses and prepaid income 19 28.5 31.1

Total current liabilities 55.1 44.1

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 3,706.5 3,370.3

Assets pledged 20 88.3 81.9

Contingent liabilities 20 8,372.5 10,490.4

56

September 1–August 31, SEK million Note 2012/2013 2011/2012

Operating activities

Income after financial items 242.1 10.1

Adjustments for non-cash items, etc. 22.3 32.6

264.4 42.7

Taxes repaid/paid 73.2 –246.3

Cash flow from operating activities before changes in working capital 337.6 –203.6

Cash flow from changes in working capital

Increase (–)/decrease (+) in current receivables –116.4 –92.8

Increase (+)/decrease (–) in current liabilities 10.9 47.6

Cash flow from operating activities 232.1 –348.8

Investing activities

Acquisition of subsidiaries –143.0 –771.2

Sale of subsidiaries 0.0 0.1

Acquisition of tangible fixed assets –52.6 –51.7

Sale of tangible fixed assets 24.5 28.9

Loans to Group companies –147.0 –78.9

Increase in financial assets –5.2 –5.3

Cash flow from investing activities –323.3 –878.1

Financing activities

Loans raised from Group companies 146.0 848.2

Share dividend –22.0 –57.5

Group contributions received — 546.8

Group contributions paid –45.4 —

Cash flow from financing activities 78.6 1,237.5

Cash flow for the year –12.5 10.6

Liquid assets, September 1 35.5 25.0

Liquid assets, August 31 23.0 35.5

Supplemental disclosure to statement of cash flows 21

Adjustments for non-cash items, etc.

Depreciation and impairment losses on assets 25.0 25.4

Capital gain/loss on sale of fixed assets –9.4 0.1

Changes in value of financial fixed assets –3.0 –2.1

Other provisions 9.7 9.2

Total 22.3 32.6

PARENT COMPANY

STATEMENT OF CASH FLOWS

57

1 Net sales

Net sales primarily refer to rental income for properties leased to subsidiaries, which are

attributable in their entirety to Sweden, as well as the provision of certain shared Group

services. 8.2 (12.9) refers to income from properties leased to outside tenants.

2 Personnel

For information on the average number of employees, salaries, other compensation and

social insurance contributions for employees, see Note 1 to the consolidated financial

statements.

3 Fees to auditors

2012/2013 2011/2012

Audit fees

PricewaterhouseCoopers 2.5 —

KPMG — 1.8

Revisionstjänst Falkenberg AB 0.1 0.1

Total 2.6 1.9

Other services

KPMG 0.2 0.1

Total 0.2 0.1

Audit assignments refer to the review of the annual report and accounts and the admi-

nistration by the Board of Directors and the President. Also included are other duties

that are the responsibility of the company’s auditors as well as consulting or other assis-

tance resulting from observations during such reviews or the implementation of such

other duties. All other work is considered other services.

4 Leasing

The year’s leasing expense for assets owned via operating leases, including leases on

premises, amounted to 11.2 (10.9).

5 Operating expenses

2012/2013 2011/2012

Depreciation according to plan by item

Cost of goods sold –21.2 –20.4

Administrative expenses –3.8 –5.0

Total –25.0 –25.4

Depreciation according to plan by asset

Buildings –17.2 –16.6

Land improvements –3.4 –3.2

Plant and machinery –0.7 –0.8

Equipment –3.7 –4.8

Total –25.0 –25.4

PARENT COMPANY

NOTES

Share capital Restricted reservesUnrestricted

reserves Net income

Total shareholders’

equity

Opening balance, September 1, 2011 13.0 2.6 2,332.1 24.1 2,371.8

Transfer of previous year’s income –24.1 –24.1 —

Dividend –57.5 –57.5

Group contributions –23.5 –23.5

Tax effect of Group contributions 6.2 6.2

Merger of wholly owned subsidiary 1.4 1.4

Net income for the year 8.2 8.2

Closing balance, August 31, 2012 13.0 2.6 2,282.8 8.2 2,306.6

Transfer of previous year’s income 8.2 –8.2 —

Dividend –22.0 –22.0

Group contributions –61.6 –61.6

Tax effect of Group contributions 16.2 16.2

Net income for the year 241.0 241.0

Closing balance, August 31, 2013 13.0 2.6 2,223.6 241.0 2,480.2

PARENT COMPANY

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

58

10 Buildings

Aug. 31, 2013 Aug. 31, 2012

Acquisition value, opening balance 473.0 456.8

Merged companies — 3.2

Acquisitions from Group companies 11.7 —

Acquisitions during the year — 6.1

Reclassification 17.5 12.6

Sales and disposals –3.3 -5.7

Acquisition value, closing balance 498.9 473.0

Accumulated depreciation, opening balance –205.4 –190.4

Accumulated depreciation in merged companies, opening balance — –0.3

Sales and disposals 2.7 1.9

Depreciation for the year –17.2 –16.6

Accumulated depreciation, closing balance 219.9 205.4

Residual value according to plan 279.0 267.6

Accelerated depreciation –2.6 –2.8

Net carrying value 276.4 264.8

11 Land and other real estate

Aug. 31, 2013 Aug. 31, 2012

Acquisition value, opening balance 262.4 254.4

Merged companies — 0.4

Acquisitions from Group companies 0.3 —

Acquisitions during the year 8.4 2.2

Reclassifications 0.5 5.4

Sales and disposals –1.2 —

Acquisition value, closing balance 270.4 262.4

Accumulated depreciation, opening balance –33.6 –30.4

Sales and disposals 0.2 —

Depreciation for the year –3.4 –3.2

Accumulated depreciation, closing balance –36.8 –33.6

Residual value according to plan 233.6 228.8

Accelerated depreciation 0 0

Net carrying value 233.6 228.8

The acquisition value of land amounts to 187,4 (180.0).

MODERBOLAGET NOTER

9 Taxes

2012/2013 2011/2012

Current tax –5.2 –5.6

Deferred tax 1.9 2.1

Total –3.3 –3.5

Current tax is distributed as follow:

Current tax for the period –5.2 –6.2

Adjustment of tax for previous years — 0.6

Total –5.2 –5.6

Reconciliation of reported tax charge/tax claim

Income before tax 244.3 11.7

Tax according to current tax rate (26.3%) –64.3 –3.1

Non-deductible expenses –2.5 –3.4

Tax-exempt revenue 61.6 0.3

Tax attributable to previous years — 0.6

Change in deferred tax 1.9 2.1

Reported tax claim/charge –3.3 –3.5

Tax items reported directly against shareholders’ equity

Current tax in Group contributions received/paid –16.2 –6.2

Total –16.2 –6.2

6 Interest income and similar credits

2012/2013 2011/2012

Share dividends, Group companies 230.5 —

Interest income, external 0.5 0.3

Interest income, Group companies –1.6 18.9

Exchange rate differences 4.9 26.0

Total 234.3 45.2

7 Interest expenses and similar charges

2012/2013 2011/2012

Interest expenses, external — –0.3

Interest expenses, Group companies –45.8 –51.4

Exchange rate differences –0.6 –32.4

Total –46.4 –84.1

8 Appropriations

2012/2013 2011/2012

Provision for/Reversal of accumulated accelerated depreciation 2.2 1.6

Total 2.2 1.6

59

12 Plant and machinery

Aug. 31, 2013 Aug. 31, 2012

Acquisition value, opening balance 38.6 40.5

Acquisitions during the year — —

Sales and disposals –1.9 –1.9

Acquisition value, closing balance 36.7 38.6

Accumulated depreciation, opening balance –34.5 –35.6

Depreciation for the year –0.7 –0.8

Sales and disposals 1.9 1.9

Accumulated depreciation, closing balance –33.3 –34.5

Residual value according to plan 3.4 4.1

Accelerated depreciation –1.2 –1.5

Net carrying value 2.2 2.6

13 Equipment

Aug. 31, 2013 Aug. 31, 2012

Acquisition value, opening balance 72.2 75.8

Acquisitions during the year 0.2 0.3

Sales and disposals –4.4 –3.9

Acquisition value, closing balance 68.0 72.2

Accumulated depreciation, opening balance –66 –65.0

Sales and disposals 4.3 3.8

Depreciation for the year –3.7 –4.8

Accumulated depreciation, closing balance –65.4 –66.0

Residual value according to plan 2.6 6.2

Accelerated depreciation –1.7 –3.5

Net carrying value 0.9 2.7

14 Construction in progress

Aug. 31, 2013 Aug. 31, 2012

Acquisition value, opening balance 12.2 12.2

Acquisitions during the year 32.4 43.1

Reclassification –18.4 –18.0

Sold to Group companies –13.4 –25.1

Net carrying value 12.8 12.2

15 Shares and participations

in Group companies

The holdings of shares and participations of the Parent company and the Group

are specified on page 60-61.

Opening balance

Allocation/ dissolution for

the year

Net carrying

value

Accelerated depreciation:

Buildings 2.7 –0.1 2.6

Land improvements 0.0 –0.0 0.0

Plant and machinery 5.0 –2.0 3.0

Total 7.7 –2.1 5.6

Of the untaxed reserves, 1.4 (2.0) refers to deferred tax.

17 Untaxed reserves

19 Accrued expenses

and prepaid income

Aug. 31, 2013 Aug. 31, 2012

Accrued salaries 14.2 13.9

Accrued social insurance contributions 8.9 9.3

Other 5.4 7.9

Total 28.5 31.1

18 Other provisions

Aug. 31, 2013 Aug. 31, 2012

Unsecured pension commitments 88.3 81.9

Payroll tax 17.6 16.1

Total 105.9 98.0

20 Assets pledged and

contingent liabilities

Aug. 31, 2013 Aug. 31, 2012

Assets pledged

Endowment insurance 88.3 81.9

Total assets pledged 88.3 81.9

Contingent liabilities

Sureties for subsidiaries 8,288.3 10,407.6

Other sureties 84.2 79.6

Pension commitments 0 3.2

Total contingent liabilities 8,372.5 10,490.4

21 Cash flowExternal interest received and paid amounted to 0.5 (0.4) and 0.0 (-0.3), respectively.

16 Other long-term receivables

Aug. 31, 2013 Aug. 31, 2012

Endowment insurance 88.3 81.9

Deferred tax claims 25.2 23.5

Total 113.5 105.4

60

SHARES AND PARTICIPATIONS IN GROUP COMPANIES

Shares in Swedish Group companies Corp. ID number Registered office Holding, %

Net carrying value SEK 000

8/31/13

Net carrying value SEK 000

8/31/12

Stena Fragmentering AB 556012-5691 Göteborg 100 250,528 250,528

Örbacken Energi HB 969715-2594 Göteborg 95 81,031 —

Stena Aluminium AB 556039-3075 Älmhult 100 71,400 71,400

Möckelsjö Energi HB 969715-3592 Göteborg 95 61,926 —

Stena Recycling AB 556132-1752 Göteborg 100 45,325 45,325

Stena Regalia AB 556236-0841 Göteborg 100 30,050 30,050

Stena Miljöteknik AB 556139-0922 Göteborg 100 12,200 12,200

Förmasten AB 556308-1396 Göteborg 100 7,570 7,570

Stena Metal International AB 556732-2895 Göteborg 100 5,000 5,000

Adactum AB 556628-8246 Göteborg 100 5,000 5,000

Stena Oil AB 556236-0288 Göteborg 100 2,350 2,350

AB Stena Metall Finans 556008-2561 Göteborg 100 1,200 1,200

Stena Stål AB 556077-5925 Göteborg 100 500 500

Stena Recycling International AB 556732-2903 Göteborg 100 100 100

Stena Resurs 1 AB 556732-2887 Göteborg 100 100 100

Stena Technoworld AB 556443-2184 Göteborg 100 5 5

KB Pinnen i Göteborg 916835-1493 Göteborg 50 — —

Stena Stål HB 916557-4246 Göteborg 50 — —

Total 574,285 431,328

Shares in foreign Group companies

Stena Recycling AS Norway 100 782,660 11,415

Stena Recycling Oy Finland 100 41,452 41,452

Stena Metal Inc. USA 100 10,315 10,315

Norsk Metallretur AS Norway 100 — 771,245

Subtotal 834,427 834,427

Total 1,408,712 1,265,754

Group companies’ holdings of shares and participations Corp. ID number Registered office Holding, %

Stena Fragmentering AB

SMG Glava AB 556610-2231 Göteborg 100

Rossholmen AB 556554-8269 Göteborg 100

Dannholmen AB 556867-2918 Göteborg 100

Glumsten AB 556867-3007 Göteborg 100

Landgrund AB 556867-2991 Göteborg 100

Stena Metall A/S Denmark 100

Stena Recycling Sp. z o.o. Poland 100

OOO Chermet Invest Russia 100

Stena Recycling AB

Bilretur ABC AB 556814-7457 Göteborg 51

Stena Scanpaper GmbH Germany 100

61

Group companies’ holdings of shares and participations Corporate ID number Registered office Holding %

Stena Regalia AB

Stena Stål HB 916557-4246 Göteborg 50

Wockatz & Co i Göteborg AB 556155-3974 Göteborg 100

Safe Regalias Intressenter HB 916835-0727 Göteborg 50

Wockatz & Co i Göteborg AB

Safe Regalias Intressenter HB 916835-0727 Göteborg 50

Förmasten AB

KB Pinnen i Göteborg 916835-1493 Göteborg 100

Stena Metal International AB

Stena Metal Asia Limited Hong Kong 100

AB Stena Metall Finans

Stena Resurs 4 AB 556732-2911 Germany 100

Sten Met Insurance AG Schweiz 100

Stena Metall Holding Limited Malta 100

Stena Metall Holding Limited

Stena Metall Limited Malta 100

Stena Stål AB

Stena Stål Molkom AB 556065-0359 Karlstad 100

Stena Stål Nybro AB 556179-4628 Nybro 100

Stena Stål Storfors AB 556396-8295 Filipstad 100

Handelsstål i Sundsvall AB 556893-7964 Sundsvall 100

Stena Stål Moss AS Norway 100

Stena Technoworld AB

Stena Nera AB 556719-5465 Göteborg 100

Stena Metall Holding GmbH Germany 100

Stena Technoworld GmbH Austria 100

Stena Metall Holding srl Italy 100

Stena Technoworld Asia Pacific Co Ltd Hong Kong 51

Stena Metall Holding GmbH

Griag Glasrecycling AG Germany 100

Stena Technoworld GmbH Germany 100

Stena Technoworld GmbH

STENA Technoworld International GmbH Austria 100

Stena Metall Holding srl

Stena Technoworld srl Italy 100

Stena Recycling Oy

Stena Technoworld Oy Finland 100

Stena Technoworld Oy

Suomen Kierrätyspalvelut Oy Finland 100

Stena Metall A/S

Stena Recycling A/S Denmark 100

Stena Technoworld A/S Denmark 100

Stena Recycling A/S

Stena Recycling GmbH Germany 100

62

PROPOSED DISTRIBUTION OF EARNINGS

The Board of Directors proposes that the unappropriated earnings in the Parent Company at the disposal of the Annual General Meeting (SEK):

Retained earnings 2,223,581,561

Net income for the year 241,008,941

Unrestricted equity 2,464,590,502

be distributed as follows:

To be carried forward 2,464,590,502

Total 2,464,590,502

Göteborg, October 23, 2013

Dan Sten Olsson Sten Jakobsson Lennart Jeansson

Chairman

Mårten Hulterström M Johan Widerberg Per Kaufmann

Anders Jansson

President and CEO

Tonny Fogelqvist Peter Ernström

Employee representative Employee representative

Our auditors’ report was submitted on October 23, 2013

Johan Rippe Ulf Andrésen

Authorized Public Accountant Authorized Public Accountant

63

AUDITORS’ REPORTTo the Annual General Meeting of Stena Metall AB, corporate identity no. 556138-8371

We have audited the annual accounts and consolidated accounts

of Stena Metall AB for the financial year September 1, 2012 –

August 31, 2013. The annual accounts and consolidated accounts

of the company are included in the printed version of this document

on pages 32-62.

Responsibilities of the Board of Directors and the President for

the annual accounts and consolidated accounts

The Board of Directors and the President are responsible for the

preparation and fair presentation of these annual accounts and

consolidated accounts in accordance with the Annual Accounts

Act, and for such internal control as the Board of Directors and

the President determine is necessary to enable the preparation

of annual accounts and consolidated accounts that are free from

material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these annual accounts

and consolidated accounts based on our audit. We conducted our

audit in accordance with International Standards on Auditing and

generally accepted auditing standards in Sweden. Those standards

require that we comply with ethical requirements and plan and

perform the audit to obtain reasonable assurance about whether

the annual accounts and consolidated accounts are free from

material misstatement.

An audit involves performing procedures to obtain audit evidence

about the amounts and disclosures in the annual accounts and

consolidated accounts. The procedures selected depend on the

auditor’s judgement, including the assessment of the risks of

material misstatement of the annual accounts and consolidated

accounts, whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to

the company’s preparation and fair presentation of the annual

accounts and consolidated accounts in order to design audit

procedures that are appropriate in the circumstances, but not for

the purpose of expressing an opinion on the effectiveness of the

company’s internal control. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonable-

ness of accounting estimates made by the Board of Directors and

the President, as well as evaluating the overall presentation of the

annual accounts and consolidated accounts.

We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our audit opinion.

Opinions

In our opinion, the annual accounts and consolidated accounts

have been prepared in accordance with the Annual Accounts Act

and present fairly, in all material respects, the financial position of

Göteborg, October 23, 2013

Johan Rippe Ulf Andrésen

Authorized Public Accountant Authorized Public Accountant

the Parent Company and the Group as of August 31, 2013 and of

their financial performance and cash flows for the year then ended

in accordance with the Annual Accounts Act. The statutory admi-

nistration report is consistent with the other parts of the annual

accounts and consolidated accounts.

We therefore recommend that the annual meeting of sharehol-

ders adopt the income statement and balance sheet for the Parent

Company and the Group.

Report on other legal and regulatory requirements

In addition to our audit of the annual accounts and consolidated

accounts, we have examined the proposed appropriations of the

company’s profit or loss and the administration of the Board of

Directors and the President of Stena Metall AB for the financial

year September 1, 2012 – August 31, 2013.

Responsibilities of the Board of Directors and the President

The Board of Directors is responsible for the proposal for appropri-

ations of the company’s profit or loss, and the Board of Directors

and the President are responsible for administration under the

Companies Act.

Auditor’s responsibility

Our responsibility is to express an opinion with reasonable assu-

rance on the proposed appropriations of the company’s profit or

loss and on the administration based on our audit. We conducted

the audit in accordance with generally accepted auditing standards

in Sweden.

As a basis for our opinion on the Board of Directors’ proposed

appropriations of the company’s profit or loss, we examined the

Board of Directors’ reasoned statement and a selection of supporting

evidence in order to be able to assess whether the proposal is in

accordance with the Companies Act.

As a basis for our opinion concerning discharge from liability,

in addition to our audit of the annual accounts and consolidated

accounts, we examined significant decisions, actions taken and

circumstances of the company in order to determine whether any

member of the Board of Directors or the President is liable to the

company. We also examined whether any member of the Board

of Directors or the President has, in any other way, acted in contra-

vention of the Companies Act, the Annual Accounts Act or the

Articles of Association. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our

opinion.

Opinions

We recommend to the annual meeting of shareholders that the

profit be appropriated in accordance with the proposal in the sta-

tutory administration report and that the members of the Board

of Directors and the President be discharged from liability for the

financial year.

64

EMPLOYEE REPRESENTATIVES

BOARD OF DIRECTORS

M JOHAN WIDERBERG Executive, Göteborg

GUSTAV A. ERIKSSON Deputy, Stockholm

TONNY fOGELqVIST Oskarshamn

fABRIcE ANGELINI Deputy, Göteborg

PETER ERNSTRÖM Göteborg

RONNY PERSSON Deputy, Halmstad

MåRTEN HULTERSTRÖM Attorney, Göteborg

ANDERS JANSSON President & CEO, Göteborg

DAN STEN OLSSON Chairman, Executive, Göteborg

LENNART JEANSSON Executive, Göteborg

STEN JAKOBSSON Executive, Västerås

PER KAUfMANN Executive, Täby

AUDITORS

JOHAN RIPPE Authorized Public Accountant

ULf ANDRÉSEN Authorized Public Accountant

ADDRESSES

SWEDENStena Metall ABFiskhamnsgatan 8Box 4088SE-400 40 GöteborgSwedenPhone +46 10 445 00 00www.stenametall.com www.stenarecycling.com

AB Stena Metall Finans (publ)Fiskhamnsgatan 8Box 4088SE-400 40 GöteborgSwedenPhone +46 10 445 00 00www.stenametall.com

Stena Aluminium ABGotthards Gata 5Box 44 SE-343 21 ÄlmhultSwedenPhone +46 10 445 95 00www.stenaaluminium.se

Stena Metal International ABFiskhamnsgatan 8Box 4088SE-400 40 GöteborgSwedenPhone +46 10 445 00 00www.stenametalinternational.com

Stena Oil ABFiskhamnsgatan 8Box 4088400 40 GöteborgTelefon 010-445 00 00www.stenaoil.com

Stena Recycling ABFiskhamnsgatan 8Box 4088400 40 GöteborgTelefon 010-445 00 00 www.stenarecycling.se

Stena Recycling International AB Fiskhamnsgatan 8Box 4088SE-400 40 GöteborgSwedenPhone +46 10 445 00 00www.stenarecycling.com

Stena Stål ABFiskhamnsgatan 8Box 4088400 40 GöteborgSwedenPhone +46 10 445 00 00www.stenastal.se

Stena Technoworld ABFiskhamnsgatan 8Box 4054SE-400 40 GöteborgSwedenPhone +46 10 445 00 00www.stenatechnoworld.se

DENMARKStena Recycling A/S Banemarksvej 40 DK-2605 Brøndby Denmark Phone +45 56 67 95 50 www.stenarecycling.dk

Stena Technoworld A/SBanemarksvej 40DK-2605 BrøndbyDanmarkPhone +45 56 67 96 30 www.stenatechnoworld.com/da

NORWAYStena Recycling ASTretjerndalsveien 70Postboks 63NO-2017 FrognerNorwayPhone +47 63 86 86 00www.stenarecycling.no Stena Stål Moss ASÅrvollskogen 79Postboks 2098NO-1521 MossNorwayPhone + 47 69 23 54 00 www.stenastal.no

FINlANDStena Recycling OyÄyritie 8 CFIN-01510 VantaaFinlandPhone +358 10 802 323www.stenarecycling.fi

Stena Technoworld OyÄyritie 8 CFIN-01510 VantaaFinlandPhone +358 108 0188www.stenatechnoworld.com

POlANDStena Recycling Sp. z o.o. Al. Krakowska 271 02-133 WarsawPolandPhone +48 22 520 27 00 www.stenarecycling.pl

USAStena Metal Inc.1 Landmark SquareSuite 720Stamford, CT 06901USAPhone +1 203 357 0111www.stenametall.com

SWITZERlANDStena Metall limited, Zug branchBahnhofplatzCH-6300 ZugSwitzerlandPhone +41 417 28 81 21www.stenametall.com

AUSTRIAStena Technoworld GmbHPragerstraße 752000 StockerauAustria Phone +43 (0) 2266 93052www.stenatechnoworld.at

GERMANYStena Technoworld GmbHLangenhorner Chaussee 40D – 22335 HamburgGermanyPhone +49 402 800 670www.stenatechnoworld.de

Stena Recycling GmbHAm Kaiserkai 1D-20457 HamburgGermanyPhone: +49 40 808074 569www.stenarecycling.com

ITAlYStena Technoworld srlVia Santa Maria in Campo 2I - 20873 Cavenago di Brianza (MB)ItalyPhone +39 02 95335374www.stenatechnoworld.it

CHINAStena Metal Asia ltd20th Floor, Central Tower28 Queen’s Road, CentralHong KongPhone: +852 2159 9689

Thanks to all our customers, partners and employees who participated in the annual report.

Photography: Pontus Almén, Jörgen Andersson, Lena Garnold, Robin Olsson, Massi Ricciuti, Nicklas Rudfell, Stena AB.

Printing: Göteborgstryckeriet. Paper/ink: Printed on paper with 100% recycled fibers and with vegetable-based ink.

Produced by the Stena Metall Group in cooperation with Grafipro.

Printed

on 100%

recycled

paper

Stena Metall AB Fiskhamnsgatan 8 • Box 4088 • 400 40 Göteborg, Sweden Phone 010-445 00 00 • www.stenametall.com