Salzgitter Ag · XETR:SZG
Salzgitter — H1 2022 Earnings Presentation
28 slides from Salzgitter's earnings presentation, Aug 11, 2022
Slide 1: Salzgitter Group Analyst Conference
SALZGITTER GROUP ANALYST CONFERENCE August 11, 2022
Slide 2: Highlights First Half of 2022 / Guidance
HIGHLIGHTS FIRST HALF OF 2022 / GUIDANCE / Highest operating result for a first half-year in the company’s history / Own funds amounting to € 723 million for the realization of the first stage of the SALCOS® program approved / Further development of partnerships with customers, raw material and ener
Slide 3: Agenda
AGENDA 01 Economic Development 0 2 S t r a te g y 0 3 F i n a n ci a l s 0 4 G u i d a nc e © 2022 Salzgitter AG / 3
Slide 4: Occupational Safety: Groupwide Goal Is Zero Accidents
01 OCCUPATIONAL SAFETY: GROUPWIDE GOAL IS ZERO ACCIDENTS Economic Development ACCIDENT INCIDENCE RATE (number of accidents with more than one day off work / number of employees * 1,000) 20 17.8 18 16 13.7 13.6 14 12 11.1 11.4 10 8 6 4 2 0 2018 2019 2020 2021 2022* *) annualized Domestic AI rate We a
Slide 5: Sharply Rising Raw Materials and Steel Prices
01 SHARPLY RISING RAW MATERIALS AND STEEL PRICES Economic Development RAW MATERIAL PRICES (US$/t) SPOT PRICES NORTHERN EUROPE (€/t) IRON ORE COKING COAL 1,900 (62% Fe CFR C h i n a , U S $ / d m t ) (FOB Australia, U S $ / t ) 250 750 1,700 225 650 1,500 200 550 1,300 175 450 1,100 150 350 900 125 1
Slide 6: Energy Supply
01 ENERGY SUPPLY Economic Development / Tense situation; further deterioration cannot be ruled out. However, the gas supply in Germany is stable at the moment / Extremely high and very volatile price levels for electricity and natural gas which currently do not lead to production cuts except for PTG
Slide 7: Key Data per 2022/06/30
01 KEY DATA PER 2022/06/30 Economic Development H1 2022 H1 2021 Δ Q2 2022 Q1 2022 Crude steel production kt 3,338.8 3,377.6 -38.7 1,626.3 1,712.6 External sales1 € million 6,636.5 4,435.5 2,201.0 3,286.7 3,349.9 EBITDA € million 1,138.5 478.6 659.9 590.3 548.1 Earnings before tax € million 970.5 305
Slide 8: Agenda
AGENDA 0 1 E c o n o m i c D e v e l o p me nt 02 Strategy 0 3 F i n a n ci a l s 0 4 G u i d a nc e © 2022 Salzgitter AG / 8
Slide 9: SALCOS First Stage: €723 M of Own Funds Approved
02 SALCOS ® FIRST STAGE: € 723 M OF OWN FUNDS APPROVED Strategy / July 13, 2022: Salzgitter AG’s Supervisory Board approves own funds amounting to € 723 million for the realization of the first stage of the SALCOS® transformation program / The early start of the measures allows to maintain the ambit
Slide 10: SALCOS: Partnering for Transformation
02 SALCOS ®: PARTNERING FOR TRANSFORMATION Strategy 2021 January 22 February 22 March 22 April 22 May 22 June 22 July 22 August 22 Customers Energy Raw mat. & technology Additional strategic partnerships formed © 2022 Salzgitter AG / 10
Slide 11: Energy Crisis - Salzgitter AG as Part of the Solution
02 ENERGY CRISIS - SALZGITTER AG AS PART OF THE SOLUTION Strategy WILHELMSHAVEN ANSCHLUSSLEITUNG (WAL) ETL 180 LNG-ANSCHLUSSLEITUNG BRUNSBÜTTEL / Total length: 27 km + 200 m arched pre-tubes / Total length : 57 km / Dimensions: 1,016 x 20.3 / 21.0 / 24.0 mm / Dimensions : 813 x 11.8 / 13.2 / 14.8 /
Slide 12: Agenda
AGENDA 0 1 E c o n o m i c D e v e l o p me nt 0 2 S t r a te g y 03 Financials 0 4 G u i d a nc e © 2022 Salzgitter AG / 12
Slide 13: Financials of the First Half of 2022 at a Glance
03 FINANCIALS OF THE FIRST HALF OF 2022 AT A GLANCE Financials / Rolled steel product prices meanwhile running at a record level sent profit up by leaps and bounds for the Steel Production, Steel Processing and Trading business units / EBITDA increased to € 1,138.5 million, EBT even more than treble
Slide 14: Income Statement
03 INCOME STATEMENT Financials Income Statement (€ million) H1 2022 H1 2021 Δ Sales 6,636.5 4,435.5 2,201.0 Increase/decrease in finished goods and work in process/other own work capitalized 72.2 88.2 -16.0 6,708.8 4,523.7 2,185.1 Other operating income 512.3 174.9 337.4 Cost of materials 4,341.9 2,
Slide 15: Consolidated Balance Sheet
03 CONSOLIDATED BALANCE SHEET Financials Assets (€ million) 30.06.2022 31.12.2021 Δ Non-current assets 4,098.6 4,250.2 -151.6 Intangible assets, property, plant and equipment 2,280.6 2,267.9 12.7 Investment property 78.8 79.5 -0.7 Financial assets 48.1 51.4 -3.3 Investments accounted for using the e
Slide 16: Consolidated Balance Sheet
03 CONSOLIDATED BALANCE SHEET Financials Equity and liabilities (€ million) 30.06.2022 31.12.2021 Δ Equity 4,714.0 3,357.0 1,357.0 Non-current liabilities 2,538.9 3,247.0 -708.1 Provisions for pensions and similar obligations 1,460.8 2,178.6 -717.8 Deferred tax liabilities 146.6 147.1 -0.5 Income ta
Slide 17: Development of Business Units – Steel Production
03 DEVELOPMENT OF BUSINESS UNITS – STEEL PRODUCTION Financials KEY DATA CURRENT SITUATION H1 2022 H1 2021 Δ Q2 2022 Q1 2022 ⁄ Steel prices rose strongly after the start of the war due to External sales €m 2,328 1,481 846 1,123 1,204 anxiety of customers about the supply situation; marked decreases f
Slide 18: Development of Business Units – Steel Processing
03 DEVELOPMENT OF BUSINESS UNITS – STEEL PROCESSING Financials KEY DATA CURRENT SITUATION H1 2022 H1 2021 Δ Q2 2022 Q1 2022 ⁄ Plate: Stabilization of the market; increased plate supply in External sales €m 1,012 693 320 545 467 Europe via re-rollers and imports; rising demand in construction and win
Slide 19: Development of Business Units – Trading
03 DEVELOPMENT OF BUSINESS UNITS – TRADING Financials KEY DATA CURRENT SITUATION H1 2022 H1 2021 Δ Q2 2022 Q1 2022 ⁄ Demand cooled down towards the end of the second quarter External sales €m 2,542 1,538 1,004 1,239 1,303 following a historically good first half-year ⁄ Pressure on prices and wait-an
Slide 20: Development of Business Units – Technology
03 DEVELOPMENT OF BUSINESS UNITS – TECHNOLOGY Financials KEY DATA CURRENT SITUATION H1 2022 H1 2021 Δ Q2 2022 Q1 2022 ⁄ German Engineering Federation (VDMA) expects economic External sales €m 670 639 31 337 334 recovery in the mechanical engineering and plant building business to continue unless the
Slide 21: Development of Industrial Participations
03 DEVELOPMENT OF INDUSTRIAL PARTICIPATIONS Financials KEY DATA CURRENT SITUATION H1 2022 H1 2021 Δ Q2 2022 Q1 2022 / Industrial Participations / services companies with gratifying Außenumsatz Mio. € 84 84 0 42 42 earnings contribution despite price increases of raw materials and energies as well as
Slide 22: Working Capital: Significant Increase Since End of 2020
03 WORKING CAPITAL: SIGNIFICANT INCREASE SINCE END OF 2020 Financials WORKING CAPITAL (€ million) +1,860 +1,130 4,500 3,954 4,000 3,438 3,500 3,000 2,729 2,824 2,500 2,171 2,308 2,094 2,000 1,500 1,000 500 0 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Under consideration of current econo
Slide 23: Investments and Depreciation
03 INVESTMENTS AND DEPRECIATION Financials 593 411 193 367 208 338 44 340 348 300 295 150 139 2018 2019 2020 2021 H1 2022 Scheduled Unscheduled Investments1 depreciation depreciation 1 Property, plant and equipment and intangible assets, excluding financial assets Guidance H2 2022: First pre-payment
Slide 24: Agenda
AGENDA 0 1 E c o n o m i c D e v e l o p me nt 0 2 S t r a te g y 0 3 F i n a n ci a l s 04 Guidance © 2022 Salzgitter AG / 24
Slide 25: Salzgitter Group Guidance 2022
04 SALZGITTER GROUP Guidance As a result of steel prices consolidating as from the second quarter, we expect the above-average margins to narrow as the year progresses. While also factoring in the geopolitical situation, we therefore continue to anticipate the following for the Salzgitter Group in t
Slide 26: Contact
CONTACT MARKUS HEIDLER Head of Investor Relations heidler.m@salzgitter-ag.de Telephone : +49 5341 - 21-6105 VERENA GROTE JAN MATHIAS LESEMANN Senior Investor Relations Manager Senior Investor Relations Manager grote.v@salzgitter-ag.de lesemann.j@salzgitter-ag.de Telephone: +49 5341 - 21-3985 Telepho
Slide 27: Disclaimer
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 the
Slide 28: Salzgitter AG: People, Steel and Technology
SALZGITTERAG People, Steel and Technology