Salzgitter Ag · XETR:SZG
Salzgitter — H1 2023 Earnings Presentation
28 slides from Salzgitter's earnings presentation, Aug 11, 2023
Slide 1: Analyst Conference
SALZGITTER AG ANALYST CONFERENCE August 11, 2023
Slide 2: Occupational Safety
OCCUPATIONAL SAFETY Salzgitter Group LOST TIME INJURY FREQUENCY 1 CURRENT SITUATION 10 / Slight increase, significant improvement of accident 9 rates in the financial year 2022 not sustained 8 7.6 / Occupational safety measures intensified 7.0 7 / Practical Days For Safety and Health at Salzgitter 6
Slide 3: Key Data on Financial Half Year 2023
KEY DATA ON FINANCIAL HALF YEAR 2023 Salzgitter Group H1 2023 H1 2022 Δ Crude steel production kt 3,135 3,339 -203 External sales 1 € million 5,836 6,637 -801 EBITDA € million 461 1,139 -678 Earnings before tax € million 243 971 -728 Earnings after tax € million 192 781 -589 Earnings per share (undi
Slide 4: Agenda
AGENDA / 01 Strategy / 02 Economic development of the business units / 03 Financials / 04 Guidance © 2023 Salzgitter AG / 44
Slide 5: SALCOS – Additional Milestones Reached
01 SALCOS ® – ADDITIONAL MILESTONES REACHED Strategy / Official Notice of Funding for the funding by the Federal Republic of Germany and the State of Lower Saxony received in April 2023 / First funds received in July / Direct reduction plant ordered / Contractor is a consortium comprising Tenova, Da
Slide 6: SALCOS: Partnering for Transformation
01 SSALCOS trategy ® : PARTNERING FOR TRANSFORMATION Customers 2021 2022 2023 Energy, raw materials and technology Additional strategic partnerships formed in the areas of distribution and energy © 2023 Salzgitter AG / 6
Slide 7: Awards
01 AWARDS Strategy First time evaluation of Salzgitter AG by ESG rating agency EcoVadis / Certification „Bronze“ with 55/100 points / The respective industry averages were outperformed in all four assessment categories, environment, labor and human rights, ethics, and sustainable procurement / KHS-G
Slide 8: Opportunity: Expansion of Wind Power
01 SOPPORTUNITY: trategy EXPANSION OF WIND POWER TARGETS OF THE EU / Climate neutrality by 2050 / Offshore wind concept / Construction of 450 GW in additional offshore wind energy capacity (currently 25 GW capacity) / Linking of wind parks across national borders envisioned IMPLEMENTATION / Up to 21
Slide 9: Agenda
AGENDA / 01 Strategy / 02 Economic development of the business units / 03 Financials / 04 Guidance © 2023 Salzgitter AG / 99
Slide 10: Steel Production – Positive Result
02 Econ STEEL PRODUCTION – POSITIVE RESULT omic d e vel opmen t of th e b usin e ss un its KEY DATA REVIEW AND CURRENT SITUATION / Slowing business momentum, subdued interest in H1 2023 H1 2022 Δ demand from some end users External sales €m 1,965 2,328 -363 / Declining spot market prices due to mark
Slide 11: Relining of Blast Furnace A
03 Econ RELINING OF BLAST FURNACE A omic d e vel opmen t of th e b usin e ss un its / Extent: / Refit of the furnace vessel (refractory lining, cooling and wear parts) and casting bay / Furnace throat: Replacement of the charge bunker and upgrade of the hydraulics / Gas cleaning: Replacement of the
Slide 12: Steel Processing – Successful Large Diameter Business
02 Econ STEEL PROCESSING – SUCCESSFUL LARGE DIAMETER BUSINESS omic d e vel opmen t of th e b usin e ss un its KEY DATA REVIEW AND CURRENT SITUATION / Plate: Rising demand at the start of the year, thereafter H1 2023 H1 2022 Δ flattening of demand, plate prices stable at the 2022 yearend level also d
Slide 13: Trading – Break Even Achieved
02 Econ TRADING – BREAK EVEN ACHIEVED omic d e vel opmen t of th e b usin e ss un its KEY DATA REVIEW AND CURRENT SITUATION / Steel demand at weak level H1 2023 H1 2022 Δ / Declines of volumes and prices External sales €m 1,761 2,542 -781 Current situation Shipments kt 1,569 2,001 -432 / Business de
Slide 14: Technology – Braved Challenging Market Environment
02 Econ TECHNOLOGY – BRAVED CHALLENGING MARKET ENVIRONMENT omic d e vel opmen t of th e b usin e ss un its KEY DATA REVIEW AND CURRENT SITUATION / Very good order intake contrary to the overall H1 2023 H1 2021 Δ development in the mechanical engineering sector External sales €m 836 670 166 / Resolut
Slide 15: Agenda
AGENDA / 01 Strategy / 02 Economic development of the business units / 03 Financials / 04 Guidance © 2023 Salzgitter AG / 15 15
Slide 16: Income Statement
03 FINCOME inancials STATEMENT Income Statement (€ million) H1 2023 H1 2022 Δ Sales 5,835.7 6,636.5 -800.8 Increase/decrease in finished goods and work in process/other own work capitalized -76.2 72.2 -148.4 5,759.5 6,708.8 -949.2 Other operating income 335.2 512.3 -177.2 Cost of materials 3,887.8 4
Slide 17: Consolidated Balance Sheet – Assets
03 FCONSOLIDATED inancials BALANCE SHEET Assets (€ million) 06/30/2023 12/31/2022 Δ Non-current assets 4,496.0 4,510.0 -14.0 Intangible assets, property, plant and equipment 2,457.4 2,416.5 40.9 Investment property 77.4 78.1 -0.7 Financial assets 34.5 38.3 -3.8 Investments accounted for using the eq
Slide 18: Consolidated Balance Sheet – Equity and Liabilities
03 FCONSOLIDATED inancials BALANCE SHEET Equity and liabilities (€ million) 06/30/2023 12/31/2022 Δ Equity 4,930.7 4,850.4 80.4 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 4,764.1 4,585.7 178.4 Other reserves 101.8 145.5 -43.7 Unappropriated retained earnings
Slide 19: Cash Flow Statement
03 FCASH FLOW STATEMENT inancials (€ million) H1 2023 H1 2022 Δ Cash and cash equivalents at the start of the period 988.4 741.8 246.6 Cash flow from operating activities 249.0 -116.3 365.3 Cash flow from investment activities -240.5 -78.4 -162.1 Cash flow from financial activities -63.5 123.4 -186.
Slide 20: Working Capital
03 FWORKING inancials CAPITAL WORKING CAPITAL (€ million) 4,500 3,954 3,902 4,000 3,691 3,596 3,589 3,438 3,500 3,000 2,824 2,500 2,094 2,000 1,500 1,000 500 0 Q4 2020 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Working Capital peaked in Q2 2022 – further reduction expected in H2 2023 ©
Slide 21: Investments and Depreciation
03 FINVESTMENTS inancials AND DEPRECIATION (€ million) 593 475 411 193 367 208 20 348 300 295 205 286 159 2019 2020 2021 2022 H1 2023 Scheduled Unscheduled Investments1 depreciation depreciation 1 Property, plant and equipment and intangible assets, excluding financial assets Focus on supplementary
Slide 22: Earnings Improvement through Cost Savings Program
03 FEARNINGS inancials IMPROVEMENT THROUGH COST SAVINGS PROGRAM FULL-YEAR EFFECT (€ million) 250 200 36 194 40 150 60 100 47 50 12 0 2022 2023e 2024e 2025e 2026e 2022-2026 cumulative Nearly € 200 million in effects from measures identified © 2023 Salzgitter AG / 22
Slide 23: Agenda
AGENDA / 01 Strategy / 02 Economic development of the business units / 03 Financials / 04 Guidance © 2023 Salzgitter AG / 23
Slide 24: Raw Material and Energy Prices
04 Guidance RAW MATERIAL AND ENERGY PRICES 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) 250 750 1,000 400 22
Slide 25: Steel Prices
04 Guidance STEEL PRICES 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' 21 Jul' 21 Jan' 22 Jul' 22 Jan' 23 Jul' 23 Jan' 21 Jul' 21 Jan' 22 Jul' 22 Jan' 23 Jul' 23 HRC EXW Ru
Slide 26: Management Guidance
04 Guidance MANAGEMENT GUIDANCE Against the backdrop of an anticipated weaker second half of the year, coupled with a persistently politically and economically volatile environment, we continue to anticipate the following for the Salzgitter Group in the financial year 2023: / sales of between € 11.5
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
SALZGITTERAG People, Steel and Technology