Salzgitter Ag · XETR:SZG
Salzgitter — Non-Deal Roadshow (November 2020)
41 slides from Salzgitter's roadshow presentation, Nov 16, 2020
Slide 1: Presentation of the Group
english Presentation of the Group SZAG Investor Relations
Slide 2: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 3: Management of the COVID-19 impacts
Salzgitter Group Management of the COVID-19 impacts Protecting employee health Ensuring operating ability • Comprehensive risk-minimizing precautions and guidelines • Highest priority for liquidity management • Creation of transparency regarding occurrences of • Temporary reduction of production inf
Slide 4: At a glance: Steel and Technology
Salzgitter Group At a glance Steel and Technology Strip Steel Business Unit Mannesmann Business Unit Strip products Line pipes Steel Service Center Precision tubes Stainless tubes Plate / Section Steel Business Unit Trading Business Unit Stockholding trading Heavy plates International trading Sectio
Slide 5: Global Presence
Salzgitter Group Global Presence Strip Steel Plate / Section Steel Mannesmann Trading Technology SZAG Investor Relations Crude steel production 2019: 6.6 million tons; trading volume: 3.8 million tons; Among the top 3 producers of beverage filling and packaging machinery english 5
Slide 6: History
Salzgitter Group History Strip Steel BU 1998 Salzgitter AG Mannesmann BU Technology 1937 Construction 1989 Name change to Hüttenwerk Salzgitter 2017 Relaunch of 2007 Integration into SZAG (Part of Reichswerke) Preussag Stahl AG the brand presence First broad-flanged 1964 2000 Liquidation of 1992 - 1
Slide 7: Group structure and key data FY 2019
Salzgitter Group Group structure and key data FY 2019 Salzgitter AG Group External Sales cons.: € 8.5 billion Employees: 23,354 EBT: € -253 million Plate / Strip Steel Mannesmann Trading Technology Section Steel External Sales: External Sales: External Sales: External Sales: External Sales
Slide 8: External sales 2019 by customer industries
Salzgitter Group External sales 2019 by customer industries 12% 15% Other Vehicle construction 15% 13% Food and beverage industry Construction industry 6% 4% Mechanical engineering White goods, electrical equipment 5% 3% Re-rollers Energy sector and utilities 3% 24% Tubes producers Traders, Steel-Se
Slide 9: External sales 2019 by regions
Salzgitter Group External sales 2019 by regions 5% Other 8% Asia 12% Americas 46% Germany 3% Other Europe 26% Other EU SZAG Investor Relations Share of ex-Germany sales by consignee 54% english Sales by consignee (only from entities within the group of consolidated companies of Salzgitter Group, exc
Slide 10: Shareholder structure and share turnover
Investor Relations Shareholder structure and share turnover Shareholder structure Daily turnover in thousand shares 600 Salzgitter AG Other shareholders 10.0% 23.9% Inst. shareholders 400 – other Regions State of 0.9% 26.5% Lower Saxony Inst. share- holders – 4.8% other Europe 2.8% 200 Inst. shareho
Slide 11: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 12: Key data per 2020/06/30
Key Data / Market Situation Key data per 2020/06/30 H1 2020 H1 2019 Δ Q2 2020 Q1 2020 Crude steel production kt 2,952.7 3,412.1 -459.4 1,271.2 1,681.5 External sales1 € million 3,631.0 4,526.2 -895.2 1,522.7 2,108.3 Earnings before tax € million -127.8 145.3 -273.1 -96.4 -31.4 Earnings after tax € m
Slide 13: Order intake of steel consumers
Key Data / Market Situation 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 Construction Mechanical engineering Metal process
Slide 14: Raw materials and steel prices
Key Data / Market Situation Raw materials and steel prices Raw Materials Hot rolled coil & Heavy Plate Iron ore Coking Coal 700 (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) 140 300 (€/t) 123 108 130 Ø 614 600 485 120 250 Ø 556 110 Ø 560 100 Ø 97 Ø 207 Ø 499 Ø 93 200 500 Ø 474 90 Ø 177 Ø 440 80
Slide 15: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 16: Business Units: Strip Steel
Business Units Strip Steel Capabilities External sales by customer industry 2019 Integrated steel works with three blast 1% 5% furnaces Mechanical engineering Other Approx. 4.7 mt/year crude steel capacity 14% 34% Modern production plants Re-rollers Vehicle construction 1% High processing co
Slide 17: Strip Steel: order intake, sales, earnings
Business Units Strip Steel Order intake Consolidated sales Earnings before taxes 2,500 1,400 75 2,282 1,200 60.3 50 2,000 1,175 1,834 1,000 25 1,500 903 € million € million 800 kt 0 600 1,000 -25 400 500 -50 200 -69.2 0 0 -75 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 SZAG Investor Relations Sl
Slide 18: Business Units: Plate / Section Steel
Business Units Plate / Section Steel Capabilities External sales by customer industry 2019 Section steel: 1% 21% − Top-modern mini mill with two electric Vehicle construction arc furnaces Other 11% − Annual crude steel capacity 1 mt 3% Construction industry Mechanical engineering 8% − Two rolling
Slide 19: Plate / Section Steel: order intake, sales, earnings
Business Units Plate / Section Steel Order intake Consolidated sales Earnings before taxes 1,200 500 50 1,000 1,035 442 400 966 25 363 800 300 € million € million kt 600 0 0.6 200 -27.0 400 -25 100 200 0 0 -50 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 SZAG Investor Relations External sales bel
Slide 20: Business Units: Mannesmann
Business Units Mannesmann Capabilities External sales by customer industry 2019 Own crude steel supply via 30% 27% participation in Hüttenwerke Krupp 35% Vehicle construction Mannesmann GmbH Other Plant for the production of semis for the 2% seamless tubes business Construction industry Core com
Slide 21: Mannesmann: order intake, sales, earnings
Business Units Mannesmann Order intake* Consolidated sales* Earnings before taxes 800 800 20 686 10 600 600 9.0 582 498 494 0 € million € million € million 400 400 -10 200 200 -20 -22.7 0 0 -30 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 * excluding EUROPIPE-Group SZAG Investor Relations Dramati
Slide 22: Business Units: Trading
Business Units Trading Capabilities External sales by customer industry 2019 74 sites in 30 countries 8% 12% Mechanical engineering Other Own distribution network for steel products with warehousing sites in Europe 3% 6% Re-rollers Vehicle construction Processing group specialized on heavy 2%
Slide 23: Trading: shipments, sales, earnings
Business Units Trading Shipments Consolidated sales Earnings before taxes 2,500 2,000 20 2,000 2,091 1,500 1,578 10 1,724 1,500 1,229 € million € million 4.1 kt 1,000 0 1,000 -15.8 500 -10 500 0 0 -20 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 SZAG Investor Relations Lower volumes especially in
Slide 24: Business Units: Technology
Business Units Technology Capabilities External sales by customer industry 2018 17 Production plants worldwide 2% 1% 60 Service sites Vehicle White goods, > 90% of sales outside of Germany construction electrical equipement Core competences and products KHS: among the top 3 global suppliers
Slide 25: Technology: order intake, sales, earnings
Business Units Technology Order intake Consolidated sales Earnings before taxes 800 700 20 657 600 16.1 682 575 600 10 500 558 € million € million € million 400 400 0 300 200 -10.6 200 -10 100 0 0 -20 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 SZAG Investor Relations Sharp decline in demand fro
Slide 26: Industrial Participations / Consolidation
Business Units Industrial Participations / Consolidation Comprises activities that are not directly Key data FY 2019 allocated to a business unit Consolidated sales €m 178 Core competences and participations Earnings before taxes €m -47 Services: − Research and development for the Core workforce (
Slide 27: Industrial Participations: sales and earnings
Business Units Industrial Participations / Consolidation Consolidated sales Earnings before taxes 100 60 91 50 80 Contribution Aurubis investment: 40 H1 2019: € 56.4 m* 60 67 H1 2020: € 34.0 m € million € million 30 55.1 40 20 20 10 17.4 0 0 H1 2019 H1 2020 H1 2019 H1 2020 * thereof € 27.8 million
Slide 28: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 29: Salzgitter AG 2021 growth strategy – goals and stipulations
Strategy “Salzgitter AG 2021” growth strategy – goals and stipulations Goals Stipulations Steel-related Less steel-related 1. Qualitative Growth Rolled steel production and parts of the tubes production can only grow qualitatively, not quantitatively. 2. Quantitative Growth Quantitative growth is po
Slide 30: Salzgitter AG 2021 growth strategy – implementation
Strategy “Salzgitter AG 2021” growth strategy – implementation 1. Qualitative growth in steel-related areas Ilsenburger Grobblech GmbH: Salzgitter Flachstahl GmbH: New heat treatment line Hot-Dip Galvanizing Line 3 Optimization of the product portfolio Strengthening of the premium segment for
Slide 31: Our path towards a low-CO2, hydrogen-based steel production
Strategy Our path towards a low-CO2, hydrogen-based steel production We are in control… …and pioneer at the same time CO2- emission allowances acquired as a precaution • Shortfall in CO2 allowances has • Significant, gradual reduction of been compensated for the most the CO2 emissions of Salzgitter
Slide 32: Salzgitter Wind Hydrogen
Strategy “Salzgitter Wind Hydrogen” Important building block on the way towards climate-friendly steel production • Production of electricity via wind power and electrolytic hydrogen at the plant site • Erection of seven wind turbines with an overall output of 30 megawatt on the grounds of Salzgitte
Slide 33: Feasibility study for direct reduction of iron ore at Wilhelmshaven
Strategy Feasibility study for the direct reduction of iron ore at Wilhelmshaven agreed upon 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, natural gas and
Slide 34: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 35: Group Result
Financials Group Result € million 100 49.7 0 -148.7 -99.0 -127.8 -144.7 -100 -28.8 -16.9 -200 EBITDA Depr./Amort. EBIT Net interest EBT Taxes EAT SZAG Investor Relations Depreciation and net interest below previous year, Decline of operating volume is reflected in decreased earnings figures english
Slide 36: Income statement
Financials Income statement Income Statement (€ million) H1 2020 H1 2019 Δ Sales 3,631.0 4,526.2 -895.2 Increase/decrease in finished goods and work in process/other own -57.2 1.7 -58.9 work capitalized 3,573.8 4,527.9 -954.1 Other operating income 132.9 91.4 41.5 Cost of materials 2,373.3 2,938.1 -
Slide 37: Consolidated balance sheet: assets
Financials Consolidated balance sheet Assets (€ million) 30.06.2020 31.12.2019 Δ Non-current assets 4,128.0 4,099.0 29.0 Intangible assets, property, plant and equipment 2,385.5 2,343.0 42.5 Investment property 81.3 82.0 -0.7 Financial assets 59.5 64.7 -5.2 Investments accounted for using the equity
Slide 38: Consolidated balance sheet: equity and liabilities
Financials Consolidated balance sheet Equity and liabilities (€ million) 30.06.2020 31.12.2019 Δ Equity 2,795.5 2,938.7 -143.2 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 2,726.6 2,845.2 -118.5 Other reserves 0.8 23.0 -22.2 Unappropriated retained earnings 12
Slide 39: Cash flow statement
Financials Cash flow statement € million 800 -121.5 600 -161.1 400 -12.5 -3.9 700.5 200 401.5 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 activities activities of period S
Slide 40: Salzgitter Group – Guidance
Financials Salzgitter Group – Guidance We anticipate that the second and third quarter will likely mark the bottoming out of the current crisis. At the same time, the strength and the timescale of a feasible macroeconomic recovery in the second half of the year are subject to great uncertainty. Agai
Slide 41: Disclaimer: Legal Note
Disclaimer Legal Note To the extent that our Internet pages contain statements oriented towards or related to the future, such statements are based on our current state of knowledge and the estimates based on such knowledge made by the management of Salzgitter AG. However, as is the case with any fo