Salzgitter Ag · XETR:SZG
Salzgitter — Investor Presentation (January 2024)
20 slides from Salzgitter's investor presentation, January 2024
Slide 1: Salzgitter Group – Presentation of the Group
SALZGITTER GROUP PRESENTATION OF THE GROUP
Slide 2: Agenda
AGENDA 01 Market situation and guidance 02 Strategy © 2024 Salzgitter AG / 2
Slide 3: Group Structure and Key Data FY 2022
GROUP STRUCTURE AND KEY DATA FY 2022 Salzgitter Group Salzgitter Group External Sales cons.: € 1 2 . 5 b i l l i o n / EBT: € 1.2 billion / Employees: 22,622 Steel Production Steel Processing Trading Technology / External Sales: € 4.3 billion / External Sales: € 2.1 billion / External Sales: € 4.6 b
Slide 4: Key Data 9M 2023
KEY DATA 9M 2023 Salzgitter Group 9M 2023 9M 2022 Δ Crude steel production kt 4,448 4,762 -314 External sales1 € million 8,406 9,765 -1,360 EBITDA € million 576 1,397 -821 Earnings before tax € million 254 1,145 -891 Earnings after tax € million 194 946 -752 Earnings per share (undiluted) € 3.5 17.4
Slide 5: Raw Material and Energy Prices
RAW MATERIAL AND ENERGY PRICES Economic deve lopment and ma rket situation 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-Ahea
Slide 6: Steel Prices
STEEL PRICES Economic deve lopment and ma rket situation 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 Ju
Slide 7: Management Guidance
MANAGEMENT GUIDANCE Guidance Against the backdrop of the sustained weak development of the German economy and the extremely volatile political and economic environment we anticipate the following for the Salzgitter Group in the financial year 2023: / sales of around € 11 billion, / EBITDA of between
Slide 8: Agenda
AGENDA 01 Market situation and guidance 02 Strategy © 2024 Salzgitter AG / 8
Slide 9: Vision and Mission
VISION AND MISSION Strategy PIONEERING FOR PARTNERING FOR CIRCULAR SOLUTIONS TRANSFORMATION We are the market leader for Together we will resolutely circular economy solutions in chart new courses, transform global industrial value chains industry, and create sustainable with our innovative products
Slide 10: Ambition: To Become Market Leader in Circular Economy
AMBITION: TO BECOME MARKET LEADER IN CIRCULAR ECONOMY Strategy KEY POINTS / Circularity for us means keeping resources in use for as long as possible, thereby minimizing the feeding of additional resources / We want to set the standards of circular economy in our industry together with our partners
Slide 11: Customers Commit to Green Supply Chain
CUSTOMERS COMMIT TO GREEN SUPPLY CHAIN Strategy “Volkswagen is working on new carbon neutral supply chains.” “Here and now we are striving for carbon neutral production worldwide by the end of 2022.” “Cutting absolute greenhouse gas emissions by 50 % by 2030.” “By 2030 we will have reduced carbon in
Slide 12: Green Strip Steel Market
GREEN STRIP STEEL MARKET Strategy STRIP STEEL DEMAND EU-28 (mt) DRIVER FOR GREEN STEEL DEMAND / Rising influence of policymakers for the 120 transformation process 2% White goods / Scarcity of emission rights (ETS) 100 95 95 95 96 97 90 92 93 93 9% Transport / Introduction of cross-border adjustment
Slide 13: SALCOS: Complete Realization Planned by 2033
04 SSALCOS trategy ® : COMPLETE REALIZATION PLANNED BY 2033 KEY POINTS STATUS QUO STAGE I STAGE II STAGE III 380 kV line / SALCOS®: investment eligibility Infrastructure achieved, own funds approved Expansion H2 network / Green steel as core of our business model at the Salzgitter location Electroly
Slide 14: SALCOS – Transformation Is in Full Swing
SALCOS ® – TRANSFORMATION IS IN FULL SWING Strategy Integration of new facilities into the existing steel works Work on the construction site started All core plants for the first stage of SALCOS® ordered © 2024 Salzgitter AG / 14
Slide 15: SALCOS: Control Points at an Early Stage
SALCOS®: CONTROL POINTS AT AN EARLY STAGE Strategy CHOKE POINTS SIMPLIFIED SALCOS® VALUE CHAIN (Critical choke points in the value chain of sustainable steel production) Raw materials Iron and steel production Rolling and downstream processing Sales 1. Access to sources for high- 01 01 quality scrap
Slide 16: Opportunities: Expansion of Wind Power
OPPORTUNITIES: EXPANSION OF WIND POWER Strategy 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 17: Opportunities: Technology Business Unit
OPPORTUNITIES: TECHNOLOGY BUSINESS UNIT Strategy TECHNOLOGY BUSINESS UNIT COMPANIES / KHS Group: one of the top three manufacturers of beverage filling and packaging systems / DESMA Elastomertechnik: global market leader for rubber and silicone injection molding machines / DESMA Schuhmaschinen: worl
Slide 18: Earnings Improvement through Cost Savings Program
EARNINGS IMPROVEMENT THROUGH COST SAVINGS PROGRAM Strategy FULL-YEAR EFFECT (€ million) 250 37 203 200 38 150 63 100 52 50 12 0 2022 2023e 2024e 2025e 2026e 2022-2026 cumulative Around € 200 million in effects from measures identified, NEW: target increased to € 250 million full-year effect © 2024 S
Slide 19: Decarbonization Is in Full Swing
DECARBONIZATION IS IN FULL SWING Rising demand for green steel projected; more and more customers commit to supply chain decarbonization With SALCOS® Salzgitter AG is well positioned as a pioneer of the decarbonization in the steel sector Besides SALCOS® there are other growth areas within Salzgitte
Slide 20: Salzgitter AG – People, Steel and Technology
SALZGITTERAG People, Steel and Technology