Salzgitter Ag · XETR:SZG
Salzgitter — Baader Investment Conference 2019
22 slides from Salzgitter's conference presentation, Sep 23, 2019
Slide 1: Baader Investment Conference
Baader Investment Conference Markus Heidler, Head of Investor Relations SZAG Investor Relations Munich, September 23, 2019
Slide 2: Agenda
1 Salzgitter Group 2 Market Situation 3 Strategy 4 Financials and Guidance SZAG Investor Relations english
Slide 3: Salzgitter Group at a glance
Salzgitter Group At a glance Key data 2018 Steel and Technology External sales: € 9.3 billion EBT: € 347 million – best earnings of the past ten years Earnings improvement potential: Strip Steel Business Unit Mannesmann Business Unit € 150 million p.a. realized for the Strip products Line pipe
Slide 4: External sales 2018 by customer industries
Salzgitter Group External sales 2018 by customer industries 13% 15% Other Vehicle construction 12% 12% Food and beverage industry Construction industry 6% 4% Mechanical engineering White goods, electrical equipment 6% 3% Re-rollers Energy sector and utilities 5% 24% Tubes producers Traders, Steel-Se
Slide 5: Agenda: Market Situation
1 Salzgitter Group 2 Market Situation 3 Strategy 4 Financials and Guidance SZAG Investor Relations english
Slide 6: Order intake of steel consumers
Market Situation Order intake of steel consumers Order intake of selected branches of the German industrial sector (Jan. 2017 = 100) 150 140 130 120 110 100 90 80 Jan 17 Apr 17 Jul 17 Okt 17 Jan 18 Apr 18 Jul 18 Okt 18 Jan 19 Apr 19 Jul 19 Construction Mechanical engineering Metal processing Automot
Slide 7: Raw materials prices
Market Situation Raw materials prices Iron ore Coking coal (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) 140 350 130 120 300 110 250 100 90 200 80 70 150 60 50 100 SZAG Investor Relations Iron ore: dramatic price surge in the first half-year; recently rapid decrease Coking coal: global demand c
Slide 8: Steel prices
Market Situation Steel prices Spot prices Northern Europe Hot-rolled coil prices international (€/t) 900 (€/t) 900 800 800 700 700 09/19 09/19 600 600 500 500 400 400 300 300 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 HRC EXW Ruhr Plate EXW Ruhr Medium sectio
Slide 9: EU import quotas for steel products
Market Situation EU import quotas for steel products Safeguard quotas are already based on record levels of imports Developing countries are exempt from the measures even though their import volumes were included in the quota calculation Quota increases in February and July of 2019 as well as
Slide 10: EU steel imports
Market Situation EU steel imports Import situation EU (in 1.000t/month) 2.500 2.000 1.500 1.000 500 - 2014 2016 2018 H1 2019 China China Ukraine Ukraine Russia RusslandTurkey TürkeiIndiaIndien South Korea SüdkoreaIran Iran Brazil Brasilien Others Sonstige SZAG Investor Relations Recent decrease of i
Slide 11: Agenda: Strategy
1 Salzgitter Group 2 Market Situation 3 Strategy 4 Financials and Guidance SZAG Investor Relations english
Slide 12: Salzgitter AG 2021 growth strategy
Strategy “Salzgitter AG 2021” growth strategy Goals Stipulations Status implementation Steel-related Less steel-related Rolled steel production and parts Development of the portfolio towards of the tubes production can only high- and highest-strength grades: to grow qualitatively, not this end lar
Slide 13: Update programs of measures
Strategy Update programs of measures FitStructure SZAG SZAG 2021 Growth Programs € million earnings improvement potential € million additional profit contribution 90 180 80 160 70 140 ~50 ~30 60 120 50 100 ~60 40 80 ~25 30 60 20 40 ~45 10 ~25 20 ~20 0 0 2019 2020 2021 ff. 2019 2020 2021 2022 ff. SZA
Slide 14: Update investment projects
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 Commissioning: 2021 Salz
Slide 15: Update CO2 I
Strategy Update CO2 I Price forecast CO2 allowances 50 Third trading period Fourth trading period 45 40 35 30 €/t CO2 25 20 Insider information from June 14, 2019 15 “[…] The market value of all CO2 allowances acquired as a precautionary measure exceeds the figure 10 accounted for in the balance she
Slide 16: Update CO2 II – Salzgitter Low CO2 Steelmaking
Strategy Update CO2 II – Salzgitter Low CO2 Steelmaking April 3, 2019 Currently Memorandum of Understanding with Tenova on the mutual Discussions with relevant stakeholders about cooperation for the realization of SALCOS ® the creation of suitable framework conditions SZAG Investor Relations We affi
Slide 17: Agenda: Financials and Guidance
1 Salzgitter Group 2 Market Situation 3 Strategy 4 Financials and Guidance SZAG Investor Relations english
Slide 18: Key data
Financials and Guidance Key data H1 2019 H1 2018 Δ Q2 2019 Q1 2019 Crude steel production kt 3,412.1 3,528.9 -116.8 1,672.3 1,739.8 External sales1 € million 4,526.2 4,617.1 -90.9 2,232.4 2,293.8 Earnings before tax € million 145.3 198.6 -53.3 19.4 125.9 Earnings after tax € million 96.4 135.4 -38.9
Slide 19: Earnings bridge Group
Financials and Guidance Earnings bridge Group € million SZAG Investor Relations Partial compensation of significant market-driven burdens english 19
Slide 20: Salzgitter Group – Guidance
Financials and Guidance Salzgitter Group – Guidance Salzgitter AG affirmed its guidance for the financial year 2019 and anticipates: a slight decrease in sales compared with the previous year to above the € 9.0 billion mark, a pre-tax profit of between € 125 million and € 175 million and a ret
Slide 21: Conclusion
Conclusion Ongoing political and economic volatility Challenges from trade and climate policy as well as high imports remain significant BUT: Prices for many steel products appear to have stabilized Further cost optimization under way Climate policy risk is mitigated with precautionary pur
Slide 22: Baader Investment Conference
Baader Investment Conference Markus Heidler, Head of Investor Relations SZAG Investor Relations Munich, September 23, 2019