Salzgitter Ag · XETR:SZG
Salzgitter — Non-Deal Roadshow (2022)
40 slides from Salzgitter's roadshow presentation, 2022
Slide 1: Salzgitter Group: Presentation of the Group
SALZGITTER GROUP PRESENTATION OF THE GROUP
Slide 2: Agenda
AGENDA 01 Salzgitter Group 02 Market Situation 0 3 S t r a t e gy 04 Financials and Guidance © 2022 Salzgitter AG / 2
Slide 3: History
01 HISTORY Salzgitter Group llsenburg: est. 1595, Peine: Sections since 1876 1937 1964 Section Steel BU Strip Steel BU plate since 1948 Construction Salzgitter Hüttenwerk AG Plate / Hüttenwerk Salzgitter (since 1961 part of state- Mülheim an der Ruhr: First broad-flanged beam mill (Part of Reichswer
Slide 4: Global Presence
01 GLOBAL PRESENCE Salzgitter Group Strip Steel Plate / Section Steel Mannesmann Trading Technology Crude steel production 2021: 6.7 million tons; trading volume: 3.6 million tons; Among the top 3 producers of beverage filling and packaging machinery © 2022 Salzgitter AG / 4
Slide 5: Diversified Product Portfolio
01 DIVERSIFIED PRODUCT PORTFOLIO Salzgitter Group People, Steel and Technology Strip products Line pipes Sections Precision tubes Heavy plates Stainless tubes Steel Service Center Stockholding trading Engineering services International trading Injection molding machinery Beverage filling plants © 20
Slide 6: Group Structure and Key Data FY 2021
01 GROUP STRUCTURE AND KEY DATA FY 2021 Salzgitter Group Salzgitter Group External Sales cons.: € 9 . 8 b i l l i o n / EBT: € 706 million / Employees: 22,356 Strip Steel Plate / Section Steel Mannesmann Trading Technology / External Sales: € 2.5 billion / External Sales: € 0.9 billion / External Sa
Slide 7: External Sales 2021 by Customer Industries
01 EXTERNAL SALES 2021 BY CUSTOMER INDUSTRIES Salzgitter Group 14% 11% Other Vehicle construction 13% 16% Food and beverage Construction industry industry 4% 6% White goods, Mechanical engineering electrical equipment 5% 2% Re-Roller Energy sector and utilities 2% 27% Tubes producers Traders, Steel-
Slide 8: External Sales 2021 by Regions
01 EXTERNAL SALES 2021 BY REGIONS Salzgitter Group 5% Others 7% Asia 12% 46% Americas Germany 5% Other Europe 26% Other EU Sales by consignee (only from entities within the group of consolidated companies of Salzgitter Group, excluding EUROPIPE Group) Share of ex-Germany sales by consignee 54% © 202
Slide 9: Key Data per 2021/12/31
01 KEY DATA PER 2021/12/31 Salzgitter-Konzern FY FY 2021 2020 Δ Crude steel production kt 6,748.8 6,033.0 715.8 External sales1 € million 9,767.4 7,090.8 2,676.6 Earnings before tax € million 705.7 -196.4 902.1 Earnings after tax € million 586.1 -273.9 859,9 Earnings per share (undiluted) € 10.7 -5.
Slide 10: Balance Sheet
01 BALANCE SHEET Salzgitter Group 10,255 10,255 € million € million 8,237 8,237 4,250 3,357 Property, plant and equiment and other 2,679 Equity non-current assets 4,245 2,179 Pension Inventories provisions 3,123 1,068 2,299 Cash and Other non-current securities liabilities 1,934 1,178 792 Other curr
Slide 11: Investments and Depreciation
01 INVESTMENTS AND DEPRECIATION Salzgitter Group 593 411 193 367 508 49 338 44 287 342 340 348 295 2017 2018 2019 2020 2021 Scheduled Unscheduled Investments1 depreciation depreciation 1 Property, plant and equipment and intangible assets, excluding financial assets Focus on expansion investments ©
Slide 12: Shareholder Structure and Share Turnover
01 SHAREHOLDER STRUCTURE AND SHARE TURNOVER Salzgitter Group SHAREHOLDER STRUCTURE DAILY TURNOVER IN THOUSEND SHARES 600 2.3% 10.0% Other Salzgitter AG shareholders 400 14.0% 26.5% State of Lower Retail Saxony investors 200 27.1% 20.1% Institutional GP Günter investors Papenburg AG 0 1Q | 17 4Q | 17
Slide 13: Agenda
AGENDA 01 Salzgitter Group 02 Market Situation 0 3 S t r a t e gy 04 Financials and Guidance © 2022 Salzgitter AG / 13
Slide 14: War in Ukraine: General Classification
02 WAR IN UKRAINE: GENERAL CLASSIFICATION Market Situation PEOPLE INDUSTRY / War begun on February 24, 2022 / Production essentially halted / Approx. 3 million refugees* / Steel industry / Broad wave of support – also within Salzgitter AG / Supplies industry, especially auto / Ukrainian males aged 1
Slide 15: Immediate Impact on Salzgitter AG
02 IMMEDIATE IMPACT ON SALZGITTER AG Market Situation PERSONNEL AND EMPLOYEES SHIPMENTS AND TRADING / Ukraine: All 17 employees of KHS are well and still in the country / Supply constraints in the automotive sector (cable harnesses, wiring systems) / They are ensuring bottling water processes contin
Slide 16: Indirect Impact on Salzgitter AG
02 INDIRECT IMPACT ON SALZGITTER AG Economic Development and Financials RISKS FROM BUSINESS OPERATIONS IN UA/RUS OPPORTUNITIES IN THE CRISIS / External sales of Salzgitter AG companies < 0,7 % / Rising steel prices, especially in the heavy plate market / Main exposure for Trading and Technology busi
Slide 17: Raw Materials Prices
02 RAW MATERIALS PRICES Market Situation IRON (62% Fe CFR China, US$/dmt) COKING COAL (FOB Australia, US$/t) 250 750 225 650 200 550 175 450 150 350 125 250 100 75 150 50 50 Jan '20 Jul '20 Jan '21 Jul '21 Jan '22 Jan '20 Jul '20 Jan '21 Jul '21 Jan '22 Diverging raw material price development – cok
Slide 18: Steel Prices
02 STEEL PRICES Market 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' 19 Jul' 19 Jan' 20 Jul' 20 Jan' 21 Jul' 21 Jan' 22 Jan' 19 Jul' 19 Jan' 20 Jul' 20 Jan' 21 Ju
Slide 19: Price Development CO2 Emission Allowances
02 PRICE DEVELOPMENT CO2 EMISSION ALLOWANCES Strategy PRICE OF CO2 EMISSION ALLOWANCES (€/t) 120 100 80 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Price of CO2 emission allowances on the increase since 2018; slump in early 2022 due to war in Ukraine © 2022 Salzgitter
Slide 20: EU Steel Imports
02 EU STEEL IMPORTS Market Situation ROLLED STEEL IMPORTS INTO THE EU-27 (in Tt/month) 2,500 24% 20% 2,000 16% 1,500 12% 1,000 8% 500 4% 0 0% 2014 2016 2017 2018 2019 2020 2021¹ China Turkey Russia Ukraine India South Korea Other Market share imports High level of imports also in 2021 1 Intra-year S
Slide 21: Agenda
AGENDA 01 Salzgitter Group 0 2 M a r k e t S i t u a t i on 03 Strategy 04 Financials and Guidance © 2022 Salzgitter AG / 21
Slide 22: Strategic Directions
04 STRATEGIC DIRECTIONS Strategy CIRCULAR ECONOMY / Expansion of business in closed-loop flows of materials (Circular Economy) and securing of control points / Complete transformation to SALCOS® by 2033 at the latest / Alignment of the product portfolio towards growing circular / sustainable market
Slide 23: Vision and Mission Are Defined
04 VISION AND MISSION ARE DEFINED 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 inno
Slide 24: Ambition: To Become Market Leader in Circular Economy
04 AMBITION: TO BECOME MARKET LEADER IN CIRCULAR ECONOMY Strategy KEY POINTS DRI1 plant on the basis of H2 and green electricity / Circularity for us means keeping resources in use for as long as possible, thereby minimizing the feeding of Slags for reuse in Wind farms processes additional resources
Slide 25: New Group Structure as of April 1, 2022
04 NEW GROUP STRUCTURE AS OF APRIL 1, 2022 Strategy Salzgitter G r o u p Salzgitter Mannesmann / Salzgitter Klöckner-Werke Steel Production Steel Processing Trading Technology Industrial Participations / Business Unit Business Unit Business Unit Business Unit Consolidation Salzgitter Flachstahl Mann
Slide 26: Strategy of the Business Units
04 STRATEGY OF THE BUSINESS UNITS Strategy Steel Production Steel Processing /Complete implementation of SALCOS® by 2033 at the latest /Tubes: expand product portfolio in green markets CIRCULAR ECONOMY e.g. hydrogen, CCS, etc. (with exception of large-diameter pipes) /Expand market position in scrap
Slide 27: Strategy of the Business Units
04 STRATEGY OF THE BUSINESS UNITS Strategy Trading Technology / Trading green steel / Growth in resource-saving and CO2-reduced closed production chains CIRCULAR ECONOMY Expansion of closed loops with customers (recycling and reusables) Continuous profitability improvement driven by measures: incl.
Slide 28: Strategy Scorecard
04 STRATEGY SCORECARD Strategy Target Target Strategic direction KPI Unit 2025 2030 % > 25 > 50 Expansion of scrap recycling mt p. a. 2.5 3 CO2 reduction (Scope 1 & 2) % CO2 > -30* > -50 Circular Economy Complete alignment to low CO2 steel production - SALCOS® Stage 1 SALCOS® Stage 1-3 (2033) Saving
Slide 29: Strategy Scorecard: Results Distribution
04 STRATEGY SCORECARD: RESULTS DISTRIBUTION Strategy ~10% Industrial Participations ~15% Technology > 10% EBITDA margin ~45% Steel Production ~10% Trading ~20% Steel Processing Perpetuating the results of exceptional years envisaged © 2022 Salzgitter AG / 29
Slide 30: SALCOS: Complete Realization Planned by 2033
04 SALCOS®: COMPLETE REALIZATION PLANNED BY 2033 Strategy KEY POINTS STATUS QUO STAGE I STAGE II STAGE III 380 kV line / SALCOS®: investment eligibility Infrastructure envisioned by summer 2022 Expansion H2 network / Green steel as core of our business model at the Salzgitter location Electrolyzer 1
Slide 31: SALCOS: Controlling Choke Points at an Early Stage
04 SALCOS ®: CONTROLLING CHOKE 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
Slide 32: Agenda
AGENDA 01 Salzgitter Group 0 2 M a r k e t S i t u a t i on 0 3 S t r a t e gy 04 Financials and Guidance © 2022 Salzgitter AG / 32
Slide 33: Key Data FY 2021: Strong Development of Earnings
04 KEY DATA FY 2021: STRONG DEVELOPMENT OF EARNINGS Financials and Guidance FY 2021 FY 2020 Δ Q4 2021 Q3 2021 Q2 2021 Q1 2021 Crude steel production kt 6,748.8 6,033.0 715.8 1,677.6 1,693.7 1,733.1 1,644.5 External sales1 € million 9,767.4 7,090.8 2,676.6 2,765.7 2,566.2 2,341.4 2,094.1 Earnings bef
Slide 34: Income Statement
04 INCOME STATEMENT Financials and Guidance Income Statement (€ million) FY 2021 FY 2020 Δ Sales 9,767.4 7,090.8 2,676.6 Increase/decrease in finished goods and work in process/other own work 522.9 -158.1 681.1 capitalized 10,290.4 6,932.7 3,357.6 Other operating income 548.5 345.3 203.2 Cost of mat
Slide 35: Balance Sheet (Assets)
04 BALANCE SHEET Financials and Guidance Assets (€ million) 12/31/2021 12/31/2020 Δ Non-current assets 4,250.1 4,244.5 5.6 Intangible assets, property, plant and equipment 2,267.8 2,423.6 -155.7 Investment property 79.5 81.5 -1.9 Financial assets 51.4 54.6 -3.2 Investments accounted for using the eq
Slide 36: Balance Sheet (Equity and Liabilities)
04 BALANCE SHEET Financials and Guidance Equity and liabilities (€ million) 12/31/2021 12/31/2020 Δ Equity 3,357.0 2,678.9 678.1 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 3,252.3 2,594.5 657.8 Other reserves 0.0 26.4 -26.4 Unappropriated retained earnings 4
Slide 37: Dividend
04 DIVIDEND Financials and Guidance Dividende (€/Aktie) 0.80 0.75 0.70 0.60 0.55 0.50 0.45 0.45 0.40 0.32 0.30 0.30 0.25 0.25 0.20 0.20 0.20 0.10 0.00 0.00 0.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e © 2022 Salzgitter AG / 37
Slide 38: Salzgitter Group: Outlook 2022
04 SALZGITTER GROUP Financials and Guidance In view of the decidedly encouraging start to the year and the sustained, strong profit trend, above all in the strip steel business, we anticipate the following for the Salzgitter Group in the financial year 2022: / an increase in sales to just under € 11
Slide 39: Disclaimer
00 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
Slide 40: Salzgitter AG
SALZGITTERAG People, Steel and Technology