Salzgitter Ag · XETR:SZG
Salzgitter — Non-Deal Roadshow (November 2020)
42 slides from Salzgitter's roadshow presentation, November 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
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: Key Data / Market Situation
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 12: Key data per 2020/09/30
Key Data / Market Situation Key data per 2020/09/30 9M 2020 9M 2019 Δ Q3 2020 Q2 2020 Q1 2020 Crude steel production kt 4,334.2 5,060.1 -725.9 1,381.5 1,271.2 1,681.5 External sales1 € million 5,264.3 6,637.3 -1,373.0 1,633.4 1,522.7 2,108.3 Earnings before tax € million -224.4 40.7 -265.1 -96.6 -96
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 Okt 18 Jan 19 Apr 19 Jul 19 Okt 19 Jan 20 Apr 20 Jul 20 Construction Mechanical engineering Metal
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) 140 300 118 108 130 Ø 614 600 485 120 250 Ø 556 110 Ø 103 Ø 560 100 Ø 207 Ø 498 Ø 93 200 500 Ø 474 90 Ø 177 Ø 452 80 150
Slide 15: EU steel imports
Market Situation EU steel imports Forecast steel demand EU-28 2020 (versus previous year‘s quarter) Rolled steel imports into the EU-28 (in t/month) 0% 2.500 20% -4% -10% 2.000 16% -12% -15% -16% 1.500 12% -20% -26% 1.000 8% -30% 500 4% -40% 0 0% -50% 2014 2016 2017 2018 2019 Q1 Q2 Q3 Q1/2020 Q2/202
Slide 16: Business Units
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 17: 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 18: Strip Steel
Business Units Strip Steel Order intake Consolidated sales Earnings before taxes 4,000 2,000 100 1,800 3,500 75 84.6 1,730 3,347 1,600 3,000 50 3,011 1,400 1,385 2,500 25 1,200 € million € million kt 2,000 1,000 0 800 1,500 -25 600 1,000 -50 400 500 -75 200 -94.9 0 0 -100 9M 2019 9M 2020 9M 2019 9M
Slide 19: 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 20: Plate / Section Steel
Business Units Plate / Section Steel Order intake Consolidated sales Earnings before taxes 1,600 700 50 1,400 1,429 600 631 1,400 25 1,200 500 530 1,000 0 € million € million 400 -13.0 kt 800 300 -25 600 -64.7 200 400 -50 200 100 0 0 -75 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 SZAG Investor
Slide 21: 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 22: Mannesmann
Business Units Mannesmann Order intake* Consolidated sales* Earnings before taxes 1,200 1,000 20 1,066 10 1,000 800 842 0 800 723 -2.9 763 600 € million € million € million -10 600 -20 400 400 -30 200 200 -40 -48.3 0 0 -50 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 * excluding EUROPIPE-Group SZ
Slide 23: 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 24: Trading
Business Units Trading Shipments Consolidated sales Earnings before taxes 3,500 2,500 20 2,295 3,000 3,028 2,000 10 2,500 2,361 1,668 3.3 1,500 0 € million € million 2,000 kt 1,500 1,000 -10 -22.9 1,000 500 -20 500 0 0 -30 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 SZAG Investor Relations Decre
Slide 25: 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 26: Technology
Business Units Technology Order intake Consolidated sales Earnings before taxes 1,200 1,200 30 1,000 1,000 1,010 1,001 20 22.5 800 842 800 854 10 € million € million € million 600 600 0 400 400 -10 200 200 -13.8 0 0 -20 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 SZAG Investor Relations Positive
Slide 27: 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 28: Industrial Participations / Consolidation
Business Units Industrial Participations / Consolidation Consolidated sales Earnings before taxes 160 100 140 80 139 60 120 Contribution Aurubis investment: 40 H1 2019: € 78.1 m* 100 104 H1 2020: € 53.4 m € million € million 20 80 20.2 0 60 -20 -53.9 40 -40 20 -60 0 -80 Earnings before special eff
Slide 29: Strategy
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 30: 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 31: 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 32: 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 A
Slide 33: 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 34: 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 35: Financials
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 36: Income statement
Financials Income statement Income Statement (€ million) 9M 2020 9M 2019 Δ Sales 5,264.3 6,637.3 -1,373.0 Increase/decrease in finished goods and work in process/other own -154.8 2.3 -157.1 work capitalized 5,109.6 6,639.7 -1,530.1 Other operating income 186.7 188.0 -1.3 Cost of materials 3,358.5 4,
Slide 37: Consolidated balance sheet
Financials Consolidated balance sheet Assets (€ million) 30.09.2020 31.12.2019 Δ Non-current assets 4,188.8 4,099.0 89.8 Intangible assets, property, plant and equipment 2,387.0 2,343.0 44.0 Investment property 80.9 82.0 -1.1 Financial assets 56.2 64.7 -8.4 Investments accounted for using the equity
Slide 38: Consolidated balance sheet
Financials Consolidated balance sheet Equity and liabilities (€ million) 30.09.2020 31.12.2019 Δ Equity 2,631.6 2,938.7 -307.0 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 2,546.2 2,845.2 -299.0 Other reserves 16.3 23.0 -6.6 Unappropriated retained earnings 12
Slide 39: Cash flow statement
Financials Cash flow statement € million 800 -96.5 600 -228.8 400 700.5 -27.7 -8.6 200 339.0 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 SZ
Slide 40: Business Units – Forecast 2020
Guidance Business Units – Forecast 2020 Strip Steel Plate / Section Steel Mannesmann Trading Technology Order intake recovered in the Market situation and demand LD pipe mills: unsatisfactory Prospects in international KHS Group: negative third quarter to normal level will remain tight cap
Slide 41: Salzgitter Group – Guidance
Guidance Salzgitter Group – Guidance The Salzgitter Group anticipates for the financial year 2020: a notable reduction in sales, a pre-tax result roughly in the year-earlier range (€– 253.3 million) excluding potential special effects in the context of the annual accounts, as well as a return
Slide 42: 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