Slide 1: Analyst Conference Financial Year 2017
Analyst Conference Financial Year 2017 Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board Burkhard Becker, Chief Financial Officer SZAG Investor Relations Frankfurt, March 19, 2018 english
Slide 2: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Annual Accounts Financial Year 2017 5 Guidance english
Slide 3: Key Data / Market Situation: Overview
Key Data / Market Situation Overview 2017 was without a doubt a successful year for the Salzgitter Group highest pre-tax profit since the financial market crisis Around € 100 million additional earnings improvement potential realized SZAG 2021: core elements of growth strategy brought under wa
Slide 4: Key data per 2017/12/31
Key Data / Market Situation Key data per 2017/12/31 FY 2017 FY 2016 Crude steel production kt 6,955.2 6,804.4 Consolidated Sales € million 8,990.2 7,905.7 Earnings before tax € million 238.0 53.2 Earnings after tax € million 193.6 56.8 Earnings per share (undiluted) € 3.52 1.00 ROCE % 8.6 2.7 Core w
Slide 5: Special effects
Key Data / Market Situation Special effects SZAG Investor Relations Pre-tax result excluding special effect 35 % higher than reported figure english 5
Slide 6: Environment I
Key Data / Market Situation Environment I Industrial production in selected countries of the EU (Jan. 2007 = 100) 120 110 112% 100 94% 90 92% 84% 80 80% 70 60 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Germany UK France Italy Spain Source: Eurostat, own research, la
Slide 7: Environment II
Key Data / Market Situation Environment II Iron ore Coking coal Steel scrap (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) (grade 2/8, €/t) 100 350 300 90 270 300 80 240 250 70 210 60 200 180 50 150 150 40 120 100 30 90 20 50 60 SZAG Investor Relations Volatile raw materials markets harbor risks
Slide 8: Environment III
Key Data / Market Situation Environment III International hot-rolled coil prices Steel imports into the EU-28 (€/t) Import of finished steel products (1,000 t/month) 750 700 2,000 650 600 1,500 550 03/18 500 1,000 450 400 500 350 300 - 2015 2016 2017 250 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18 China Ukra
Slide 9: Environment IV
Key Data / Market Situation Environment IV International trade policy Increasing protectionism 40 % of all global trade defense measures concern steel products SZAG Investor Relations More than a symbol: The steel sector is of paramount importance for industrial value chains! english 9
Slide 10: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Annual Accounts Financial Year 2017 5 Guidance english
Slide 11: Business Units: Strip Steel
Business Units Strip Steel Order intake Consolidated sales Earnings before taxes 5,000 2,500 200 4,500 175 4,498 182.0 4,432 2,160 4,000 2,000 150 3,500 1,815 125 3,000 1,500 € million € million 100 kt 2,500 75 2,000 1,000 50 1,500 25 1,000 500 -2.3 500 0 0 0 -25 FY 2016 FY 2017 FY 2016 FY 2017 FY 2
Slide 12: Business Units: Plate / Section Steel
Business Units Plate / Section Steel Order intake Consolidated sales Earnings before taxes 2,500 1,200 0 2,199 2,236 1,000 2,000 1,024 800 -25 1,500 -32.1 742 € million € million kt 600 1,000 400 -50 -57,7 500 200 2017: incl. € 48.8m impairment at MGB 2016: incl. € +25.0 million write-up at PTG and
Slide 13: Business Units: Mannesmann
Business Units Mannesmann Order intake* Consolidated sales* Earnings before taxes 1,800 1,200 25 1,600 1,093 1,543 1,000 1,400 999 1,200 800 0 1,168 -5.6 € million € million € million 1,000 600 2017: incl. € 21.0m expenses for measures aimed at 800 structural improvements at -22.4 MPT 600 400 2016:
Slide 14: Business Units: Trading
Business Units Trading Shipments Consolidated sales Earnings before taxes 6,000 3,500 75 3,230 70.5 3,000 5,000 5,038 2,855 4,635 2,500 4,000 50 € million € million 2,000 45.2 kt 3,000 1,500 2,000 25 1,000 1,000 500 0 0 0 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 SZAG Investor Relations Highes
Slide 15: Business Units: Technology
Business Units Technology Order intake Consolidated sales Earnings before taxes 1,600 1,400 50 1,400 1,300 1,285 2017: incl. € 13.1m expenses for 1,200 streamlining measures at KHS 1,359 1,317 1,200 1,000 1,000 € million € million € million 800 28.4 800 25 600 600 400 400 200 200 6.6 0 0 0 FY 2016 G
Slide 16: Industrial Participations / Consolidation
Industrial Participations / Consolidation Industrial Participations / Consolidation € mllion Derivation of pre-tax result 2017 SZAG Investor Relations Gratifying contribution from the service companies and the Aurubis investment english 16
Slide 17: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Annual Accounts Financial Year 2017 5 Guidance english
Slide 18: Group strategy SZAG 2021
Group strategy SZAG 2021 “Salzgitter AG 2021” strategy… Goal: Stipulations: Rolled steel production and parts of the tubes Steel-related Less steel-related production can only grow qualitatively, not quantitatively. 2016 60% 40% Quantitative growth is possible exclusively in activities apart fro
Slide 19: Programs of measures I – what we have achieved so far
Group strategy SZAG 2021 Programs of measures I – what we have achieved so far Restructuring Extensive optimization measures in Salzgitter AG 2015 / FitStructure numerous Group companies Growth Product range development RH vacuum plant – Capacity expansion of the secondary metallurgy Salzgitte
Slide 20: Programs of measures II – what we intend in coming years
Group strategy SZAG 2021 Programs of measures II – what we intend in the coming years Restructuring FitStructure Focus on Mannesmann and Technology business units Growth Satisfaction of higher demand for high- and ultra high- Hot-dip Galvanizing Line 3 – strength hot-dip galvanized steels Salzgi
Slide 21: Programs of measures III
Group strategy SZAG 2021 Programs of measures III FitStructure SZAG SZAG 2021 Growth Programs € million earnings improvement potential € million additional profit contribution 160 250 140 ~30 200 ~60 120 100 150 80 ~50 ~90 100 60 40 ~40 50 ~60 20 ~50 0 0 2018 2019 2020 ff. 2018 2019 2020 2021 SZAG I
Slide 22: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Annual Accounts Financial Year 2017 5 Guidance english
Slide 23: Best Group result since 2008
Annual Accounts Financial Year 2017 Overview Best Group result since 2008 Great success of measures also in 2017: „FitStructure“ and „Salzgitter AG 2021“ foundation of the gratifying earnings development Earnings per share climbed to € 3.52 Increase net financial position to € 381 million; equ
Slide 24: Earnings bridge Group
Annual Accounts Financial Year 2017 Earnings bridge Group € million 400 97 -81 60 300 -110 200 194 287.0 237.0 238 100 24 53 0 EBT 2016 Volume Margin Measures Special items Aurubis Other EBT 2017 english investment SZAG Investor Relations Margin development and again highly successful measures are k
Slide 25: Group Result
Annual Accounts Financial Year 2017 Group Result € million 800 700 600 500 -390.4 400 707.2 300 -78.8 200 -44,5 316.8 100 238.0 193.6 0 EBITDA Depr./Amort. EBIT Net interest EBT Taxes EAT SZAG Investor Relations Lower Group tax rate (19%) due to remeasurement of capitalized benefits from loss carryf
Slide 26: Aurubis effect
Annual Accounts Financial Year 2017 Aurubis effect € million 100 80 -5.4 60 -63.9 56.9 91.7 40 79.3 20 0 Aurubis Granting of recognized Release ∆ Aurubis at-equity contribution Aurubis shares of derivate Interest investment SZAG Investor Relations Gratifiying contribution from Aurubis participation
Slide 27: Income statement
Annual Accounts Financial Year 2017 Income statement1 Income Statement (€ million) 2017 2016 Sales 8,990.2 7,892.9 Increase/decrease in finished goods and work in process/other own work capitalized 179.1 –57.3 9,169.3 7,835.6 Other operating income 396.3 314.9 Cost of materials 6,029.8 5,072.0 Perso
Slide 28: Dividend
Annual Accounts Financial Year 2017 Dividend € Financial year 2017 € million Dividend per share: 0.45 € 0.50 400 0.40 0.45 300 238 0.30 200 0.30 0.20 0.25 0.20 0.20 53 100 0.10 -15 4 0 0.00 1 1 2013 2014 2015 2016 2017 -100 -0.10 -200 -0.20 -0.30 -300 -0.40 -400 -0.50 -500 -483 1 restated SZAG Inves
Slide 29: Balance sheet per 2017/12/31
Annual Accounts Financial Year 2017 Balance sheet per 2017/12/31 € million 8,318 8,318 Equity ratio: Goodwill: 0 € Property, plant and 35.9% Equity 2,990 equipment and other 3,566 non-current assets Assets to equity: 84% Pension 2,440 provisions Inventories 2,085 € 820 m € 409 m Other non-current Ca
Slide 30: Balance Sheet – Figures
Annual Accounts Financial Year 2017 Balance Sheet – Figures Working capital (€ million) Equity ratio 4,000 100 97 99 97 120 2017 36% 95 Coverage (days) 3,000 90 2016 34% 2,000 60 2015 35% 2,598 2,437 2,433 2,271 2,165 1,000 30 2014 34% 0 0 2013 2014 2015 2016 2017 2013 39% Pension provisions (€ mill
Slide 31: Cash flow statement
Annual Accounts Financial Year 2017 Cash flow statement € million 1,400 1,200 1,000 273.7 -340.1 800 -63.6 -8.8 600 400 818.1 679.4 200 0 Cash and cash Cash flow Cash flow Cash flow Other Cash and cash equivalents at start from operating from investment from financing equivalents at end of period ac
Slide 32: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Annual Accounts Financial Year 2017 5 Guidance english
Slide 33: Business Units – Forecast 2018
Guidance Business Units – Forecast 2018 Strip Steel Plate / Section Steel Mannesmann Trading Technology assumption of the raw Plate: continuing difficult Large-diameter pipe mills: marginally lower prices KHS Group: continuing fierce material prices for iron ore market environment with hig
Slide 34: Salzgitter Group – Guidance from February 28, 2018
Guidance Salzgitter Group – Guidance from February 28, 2018 Given the good start to the new financial year, with market conditions brightening in some areas of business, but remaining challenging overall, and additional positive effects of the measures and growth programs, we assume the following fo
Slide 35: Analyst Conference Financial Year 2017
Analyst Conference Financial Year 2017 Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board Burkhard Becker, Chief Financial Officer SZAG Investor Relations Frankfurt, March 19, 2018 english