Salzgitter Ag · XETR:SZG
Salzgitter — H1 2021 Earnings Presentation
28 slides from Salzgitter's earnings presentation, Aug 11, 2021
Slide 1: Analyst Conference First Half of 2021
Analyst Conference First Half of 2021 Gunnar Groebler, Chairman of the Executive Board Burkhard Becker, Chief Financial Officer SZAG Investor Relations Frankfurt, August 11, 2021 english
Slide 2: Sustainability and Strategy; Economic Development and Financials
Gunnar Groebler 1 Sustainability and Strategy Burkhard Becker 2 Economic Development and Financials SZAG Investor Relations english
Slide 3: Occupational safety – work-related accident per person rate
Sustainability and Strategy Occupational safety – work-related accident per person rate 18 16 16.8 15.7 Occupational safety is a high-ranking corporate 14 14.7 12 13.4 target next to profitability, productivity and quality 12.6 2020: 11,33 10 Reduction of injury rate through measures and 8 campa
Slide 4: Vaccination campaign #hüttengeimpft
Sustainability and Strategy Vaccination campaign #hüttengeimpft 12,000 10,000 Vaccine doses 8,000 6,000 4,000 2,000 0 Calendar week 20 21 22 23 24 25 26 27 28 29 30 31 SZAG Investor Relations Salzgitter Group actively contributes to overcoming the COVID-19 pandemic – more than 10,000 doses of vaccin
Slide 5: Contribution towards decarbonization – highlights of the first half 2021
Sustainability and Strategy Contribution towards decarbonization – highlights of the first half 2021 Groundbreaking for the Commitment to the GetH2 initiative µDRAL direct reduction plant First delivery of green strip steel products for the serial production to Mercedes-Benz MOU for joint research o
Slide 6: SALCOS – Gradual conversion to a H2-based steel production
Sustainability and Strategy SALCOS® – Gradual conversion to a H2-based steel production Today Indicative: 2025+ Indicative: 2030+ Indicative: until 2050 Status Quo Pilot phase Completion CO2-Emissions (8 m t/a) - 30% CO2 DRP - 50% CO2 - 83% bis > - 95% CO2 (Stage I) (Stage II) Blast Furnaces EAF Ele
Slide 7: Green steel – current environment
Sustainability and Strategy Green steel – current environment Marketable Fundable Economically viable Already today certified production Funding for a major part of the Higher prices for green steel in the and delivery of green steel capex requirements applied for via short-term as a result of
Slide 8: EU crude steel: Green vs. Gray
Sustainability and Strategy EU crude steel: Green vs. Gray Expected main drivers Green Steel Gray Steel Short-term: Price premium in the EU due to Medium- to long-term: significant additional burden as a supply shortage and added green value result of decreasing EU allocation of CO2-emission allowan
Slide 9: Value of the acquired CO2 emission allowances
Sustainability and Strategy Value of the acquired CO2 emission allowances Market value CO2 emission allowances 1.000 750 € million 500 250 0 3Q 16 1Q 17 3Q 17 1Q 18 3Q 18 1Q 19 3Q 19 1Q 20 3Q 20 1Q 21 SZAG Investor Relations Acquired CO2 emission allowances have reached a market value of almost € 1
Slide 10: Update: feasibility study for direct reduction of iron ore at Wilhelmshaven
Sustainability and Strategy Update: feasibility study for the direct reduction of iron ore at Wilhelmshaven Study Project partners Construction of a direct reduction plant with an upstream hydrogen electrolyzer as well as Developing necessary infrastructure for supplying it with raw materials, n
Slide 11: Update investment projects
Sustainability and Strategy Update investment projects Ilsenburger Grobblech: New heat treatment line Optimization of the product portfolio Expansion of the market position and volume expansion for higher value grade segments such as high strength and wear resistant, water tempered steel Commi
Slide 12: Strategy review initiated
Sustainability and Strategy Strategy review initiated FitStructure 2.0 (2019-) FitStructure 2.0: Of a total of around Salzgitter AG 2021 (2016-2021) € 300 m in earnings improvement potential € 160 m realized per June 30, 2021 A further € 100 m in additional Development of new Group strategy (H2
Slide 13: Strategy review: key points
Sustainability and Strategy Strategy review: key points Strategy Portfolio Efficiency Who and what do we What is the right How do we generate want to be in business portfolio for additional efficiency 2025/2030? our strategy? gains across the entire value chain? Enabler Management structures and ins
Slide 14: Economic Development and Financials
Gunnar Groebler 1 Sustainability and Strategy Burkhard Becker 2 Economic Development and Financials SZAG Investor Relations english
Slide 15: Order intake of steel consumers
Economic Development and Financials Order intake of steel consumers Order intake of selected branches of the German industrial sector (Jan. 2018 = 100) 130 120 110 100 90 80 70 60 50 40 30 Jan 18 Apr 18 Jul 18 Oct 18 Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20 Oct 20 Jan 21 Apr 21 Construction
Slide 16: Raw materials and steel prices
Economic Development and Financials Raw materials and steel prices Raw Materials Hot rolled coil & Heavy Plate Iron ore Coking Coal 1,300 1,165 (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) 250 184 300 1,200 217 1,100 250 1,000 200 Ø 188 Ø 941 Ø 207 900 Ø 854 200 Ø 177 800 150 Ø 144 700 150 Ø 6
Slide 17: Key data
Economic Development and Financials Key data H1 2021 H1 2020 Δ Q2 2021 Q1 2021 Crude steel production kt 3,377.6 2,952.7 424.9 1,733.1 1,644.5 External sales1 € million 4,435.5 3,631.0 804.5 2,341.4 2,094.1 Earnings before tax € million 305.7 -127.8 433.5 188.4 117.3 Earnings after tax € million 230
Slide 18: Strip Steel
Economic Development and Financials Strip Steel Order intake Consolidated sales Earnings before taxes 2,500 1,400 150 2,235 1,200 2,000 1,198 100 104.5 1,834 1,000 1,500 903 50 € million € million 800 kt 600 1,000 0 400 500 -50 200 -69.2 0 0 -100 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 SZAG
Slide 19: Plate / Section Steel
Economic Development and Financials Plate / Section Steel Order intake Consolidated sales Earnings before taxes 1,200 500 50 1,101 450 40 1,000 446 400 30 966 350 363 20 800 300 10 € million € million kt 600 250 0 200 -10 -27.0 -26.9 400 150 -20 100 -30 200 50 -40 0 0 -50 H1 2020 H1 2021 H1 2020 H1
Slide 20: Mannesmann
Economic Development and Financials Mannesmann Order intake* Consolidated sales* Earnings before taxes 1,000 600 50 900 40 881 500 530 800 494 30 700 20 400 600 10 € million € million € million 500 300 0 498 400 -10 -15.5 200 300 -20 -22.7 200 -30 100 100 -40 0 0 -50 H1 2020 H1 2021 H1 2020 H1 2021
Slide 21: Trading
Economic Development and Financials Trading Shipments Consolidated sales Earnings before taxes 2,000 1,800 150 1,800 1,600 1,810 125 1,724 1,538 1,600 1,400 1,400 100 1,200 1,229 1,200 € million € million 1,000 75 149.3 kt 1,000 800 50 800 600 600 25 400 400 0 200 200 -15.8 0 0 -25 H1 2020 H1 2021 H
Slide 22: Technology
Economic Development and Financials Technology Order intake Consolidated sales Earnings before taxes 800 700 50 749 40 700 600 639 575 30 600 500 20 32.5 558 500 10 € million € million € million 400 400 0 300 -10.6 -10 300 200 -20 200 -30 100 100 -40 0 0 -50 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H
Slide 23: Industrial Participations / Consolidation
Economic Development and Financials Industrial Participations / Consolidation Consolidated sales Earnings before taxes 100 100 90 90 80 84 80 Contribution Aurubis investment: 70 70 H1 2021: € 34.0 m 60 67 60 H1 2021: € 91.0 m € million € million 50 50 40 40 30 30 61.8 20 20 10 10 17.4 0 0 H1 2020 H1
Slide 24: Income statement
Economic Development and Financials Income statement Income Statement (€ million) H1 2021 H1 2020 Δ Sales 4,435.5 3,631.0 804.5 Increase/decrease in finished goods and work in process/other own 88.2 -57.2 145.4 work capitalized 4,523.7 3,573.8 949.9 Other operating income 174.9 132.9 42.0 Cost of ma
Slide 25: Consolidated balance sheet – assets
Economic Development and Financials Consolidated balance sheet Assets (€ million) 2021/06/30 2020/12/31 Δ Non-current assets 4,229.0 4,244.5 -15.5 Intangible assets, property, plant and equipment 2,424.0 2,423.6 0.4 Investment property 80.8 81.5 -0.7 Financial assets 53.1 54.6 -1.5 Investments accou
Slide 26: Consolidated balance sheet – equity and liabilities
Economic Development and Financials Consolidated balance sheet Equity and liabilities (€ million) 2021/06/30 2020/12/31 Δ Equity 2,998.5 2,678.9 319.6 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 2,902.9 2,594.5 308.4 Other reserves 37.7 26.4 11.3 Unappropriat
Slide 27: Cash flow statement
Economic Development and Financials Cash flow statement € million 1,000 800 222.1 -197.7 600 -105.5 4.3 400 621.4 544.6 200 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 activities act
Slide 28: Salzgitter Group – Guidance
Economic Development and Financials Salzgitter Group – Guidance Provided that the market continues its stable development in the second half of the year despite the latent COVID-19 crisis, we affirm our forecast for the financial year 2021 that was revised upward in June and anticipate the following