Salzgitter Ag · XETR:SZG
Salzgitter — H1 2024 Earnings Presentation
28 slides from Salzgitter's earnings presentation, Aug 12, 2024
Slide 1: Analyst Conference
SALZGITTER AG ANALYST CONFERENCE August 12, 2024
Slide 2: Occupational Safety
OCCUPATIONAL SAFETY Salzgitter Group LOST TIME INJURY FREQUENCY (LTIF) 1 DEVELOPMENT OF THE LTIF / Long-term trend intact despite fluctuations during the year / Continuous efforts to reduce accident rates / Target remains 0 accidents / Data since 2024 including temporary workers FURTHER ACTION 2024
Slide 3: Agenda
AGENDA 01 Market environment 02 Economic development and guidance 03 Financials © 2024 Salzgitter AG / 3
Slide 4: Market environment
01 MECONOMIC ENVIRONMENT a r k e t e n vir o n me n t Global economy with moderate recovery, but challenges remain Germany has a growth issue in the short term and a structural issue in the medium term European steel market under pressure from weak demand and high level of imports © 2024 Salzgitter
Slide 5: Raw material and energy prices
RAW MATERIAL AND ENERGY PRICES M a r k e t e n vir o n me n t RAW MATERIAL PRICES (US$/t) ENERGY PRICES (€/MWh) IRON ORE COKING COAL ELECTRICITY NATURAL GAS (62% Fe CFR C h i n a , U S $ / d m t ) (FOB Australia, U S $ / t ) (Futures market front year EEX. €/MWh) (Area THE, EEX Day-Ahead €/MWh Hs) 1
Slide 6: Steel prices
STEEL PRICES M a r k e t e n vir o n me n t SPOT PRICES NORTHERN EUROPE (€/t) HOT-ROLLED COIL PRICES INTERNATIONAL (€/t) 1,900 1,900 1,700 1,700 1,500 1,500 1,300 1,300 1,100 1,100 900 900 700 700 500 500 300 300 Jan' 22 Jul' 22 Jan' 23 Jul' 23 Jan' 24 Jul' 24 Jan' 22 Jul' 22 Jan' 23 Jul' 23 Jan' 24
Slide 7: New anti-dumping proceedings
NEW ANTI-DUMPING PROCEEDINGS M a r k e t e n vir o n me n t HRC imports into the EU, in t/month / Anti-dumping complaint against HRC 900,000 imports from India, Japan, Vietnam und 800,000 Egypt filed at the end of June 2024. 700,000 / Start of the proceeding on August 8, 2024 600,000 / Preliminary m
Slide 8: Agenda
AGENDA 01 Market environment 02 Economic development and guidance 03 Financials © 2024 Salzgitter AG / 8
Slide 9: Key data for the first half of 2024
02 Econ KEY DATA FOR THE FIRST HALF OF 2024 omic d e vel opmen t a n d guid a n ce H1 2024 H1 2023 Δ Crude steel production kt 3,329 3,135 193 External sales1 € million 5,243 5,836 -593 EBITDA € million 234 429 -196 Earnings before tax € million 11 211 -199 Earnings after tax € million -19 160 -179
Slide 10: Steel production
02 Econ STEEL PRODUCTION omic d e vel opmen t a n d guid a n ce KEY DATA REVIEW / European steel prices remain under pressure H1 2024 H1 2023 Δ / Overall low level of demand External sales €m 1,816 1,965 -149 Order bookings kt 2,583 2,544 39 OUTLOOK Order backlog 1 kt 1,092 1,005 87 / Challenging pr
Slide 11: Progress on SALCOS
02 Econ PROGRESS ON SALCOS ® omic d e vel opmen t a n d guid a n ce Site preparation works at an advanced stage Delivery of first plant parts commenced in mid-July Final installation of a part for the Mega-Media-Line completed on July 24 Implementation of SALCOS® continues to be on time © 2024 Salzg
Slide 12: Steel processing
02 Econ STEEL PROCESSING omic d e vel opmen t a n d guid a n ce KEY DATA REVIEW / Plate: significant decline in demand, market prices at 2021 Δ level, increase in input material costs H1 2024 H1 2023 / Steel tubes: External sales €m 859 1,187 -328 • Line pipes: postponement of projects Order booking
Slide 13: Active alignment to Salzgitter AG 2030: SECURE protection steels
02 Econ ACTIVE ALIGNMENT TO “SALZGITTER AG 2030” omic d e vel opmen t a n d guid a n ce SECURE Protection Steels / High-strength safety steels from ILG offer increased resistance to ballistic impacts / Excellent combination of high hardness and good toughness of these steel grades meet the requireme
Slide 14: Divestment: sale of Mannesmann Stainless Tubes Group
02 Econ ACTIVE ALIGNMENT TO “SALZGITTER AG 2030” omic d e vel opmen t a n d guid a n ce DIVESTMENT SALE OF MANNESMANN STAINLESS TUBES GROUP Sale to Cogne Acciai Speciali Final approvals of regulatory bodies pending Closing expected to be in the third quarter of 2024 Cash inflow of € 125 million Acti
Slide 15: Trading
02 Econ TRADING omic d e vel opmen t a n d guid a n ce KEY DATA REVIEW / Weak demand in the European stockholding steel trade H1 2024 H1 2023 Δ / Prices remain at the previous year's low level External sales €m 1,604 1,760 -157 / Improved business development in international trading compared to the
Slide 16: Technology
02 Econ TECHNOLOGY omic d e vel opmen t a n d guid a n ce KEY DATA REVIEW / Order intake decreases due to generally weak demand H1 2024 H1 2023 Δ / High order backlog supports capacity utilization at the KHS Group External sales €m 871 836 35 / Earnings growth thanks to good performance of the KHS G
Slide 17: Management guidance
02 Econ MANAGEMENT GUIDANCE omic d e vel opmen t a n d guid a n ce / sales of around 10 billion, / EBITDA of between € 400 million and € 500 million, / a pre-tax result at breakeven, and, / a return on capital employed (ROCE) that is tangibly lower year on year. Potential one-off effects with an imp
Slide 18: Agenda
AGENDA 01 Strategy implementation 02 Development of the business units and guidance 03 Financials © 2024 Salzgitter AG / 18
Slide 19: Income statement
03 FINCOME inancials STATEMENT Income Statement (€ million) H1 2024 H1 2023 Δ Sales 5,243.2 5,835.7 -592.5 Increase/decrease in finished goods and work in process/other own work capitalized 89.8 -76.2 166.0 5,333.0 5,759.5 -426.5 Other operating income 216.1 335.2 -119.1 Cost of materials 3,651.4 3,
Slide 20: Consolidated balance sheet
03 FCONSOLIDATED inancials BALANCE SHEET Assets (€ million) 30.06.2024 31.12.2023 Δ Non-current assets 4,713.8 4,570.4 143.4 Intangible assets, property, plant and equipment 2,742.6 2,595.9 146.7 Investment property 75.9 76.6 -0.7 Financial assets 28.7 29.0 -0.3 Investments accounted for using the e
Slide 21: Consolidated balance sheet
03 FCONSOLIDATED inancials BALANCE SHEET Equity and liabilities (€ million) 30.06.2024 31.12.2023 Δ Equity 4,806.9 4,834.5 -27.6 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 4,686.9 4,660.4 26.5 Other reserves 62.0 90.5 -28.5 Unappropriated retained earnings 2
Slide 22: Cash flow statement
03 FCASH FLOW STATEMENT inancials (€ million) H1 2024 H1 2023 Δ Cash and cash equivalents at the start of the period 939.7 988.4 -48.7 Cash flow from operating activities -137.3 249.0 -386.3 Cash flow from investment activities -264.4 -240.5 -24.0 Cash flow from financial activities 45.3 -63.5 108.8
Slide 23: Working capital: moderate seasonal increase
03 FWORKING inancials CAPITAL: MODERATE SEASONAL INCREASE WORKING CAPITAL (€ million) -540 4.000 3.589 3.500 3.191 3.032 3.049 3.000 2.769 2.500 2.000 1.500 1.000 500 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Marked decrease of working capital in the second half of the financial year 2023, seasonal
Slide 24: Investments and depreciation
03 FINVESTMENTS inancials AND DEPRECIATION (€ million) 583 475 367 208 315 20 4 300 286 317 164 2021 2022 2023 H1 2024 Scheduled Unscheduled Investments1 depreciation depreciation 1 Property, plant and equipment and intangible assets, excluding financial assets Focus on supplementary investments and
Slide 25: Profitability: earnings improvement program
03 FPROFITABILITY: inancials EARNINGS IMPROVEMENT PROGRAM FULL-YEAR EFFECT (€ million) 300 250 59 243 200 75 150 40 100 56 50 12 0 2022 2023 2024e 2025e 2026e 2022-2026 cumulative Target increased to around 250 million full-year-effect © 2024 Salzgitter AG / 25
Slide 26: Stay on course
STAY ON COURSE Financials Internal / Diversification takes effect - GB technology with > € 100 million EBT in FY 2024 „We cannot / / SALCOS® I will be continued - there is an attractive market for green steel Measures Program to secure earnings and liquidity expanded change the / Specific optimizati
Slide 27: Disclaimer
00 DISCLAIMER Salzgitter AG LEGAL NOTE COPYRIGHTS To the extent that our Internet pages contain statements oriented towards or related to This data file and the data contained on these pages (including, among others, texts, the future, such statements are based on our current state of knowledge and
Slide 28: Salzgitter AG – People, Steel and Technology
: a = x ‘a r & = oo a j ve as SALZGITTERAG People, Steel and Technology