Salzgitter Ag · XETR:SZG
Salzgitter — FY2023 Earnings Presentation
24 slides from Salzgitter's earnings presentation, Mar 15, 2024
Slide 1: Salzgitter AG Analyst Conference
SALZGITTER AG ANALYST CONFERENCE March 15, 2024
Slide 2: Occupational Safety
OCCUPATIONAL SAFETY Salzgitter Group LOST TIME INJURY FREQUENCY (LTIF) 1 DEVELOPMENT OF THE LTIF / Long-term trend is positive despite fluctuations during the year / Continuous efforts to reduce accident rates / Target remains 0 accidents FURTHER ACTION 2024 12.36 / Development of a Group-wide integ
Slide 3: Key Data on Financial Year 2023
KEY DATA ON FINANCIAL YEAR 2023 Salzgitter Group FY 2023 FY 2022 Δ Crude steel production kt 5,709 6,109 -400 External sales1 € million 10,790 12,553 -1,763 EBITDA € million 677 1,618 -941 Earnings before tax € million 238 1,245 -1,007 Earnings after tax € million 204 1,085 -881 Earnings per share (
Slide 4: Agenda
AGENDA 01 Strategy implementation 02 Development of the business units and guidance 03 Financials © 2024 Salzgitter AG / 4
Slide 5: Strategy Implementation – Highlights
01 Strategy STRATEGY IMPLEMENTATION – HIGHLIGHTS implementation SALCOS® – implementation fully under way CIRCULAR ECONOMY – NEW SHREDDER IN SALZGITTER / Funding for Stage 1 secured / Reprocessing of post-consumer scrap into high quality scrap grades / All main aggregates ordered / Scrap grade 4 SALC
Slide 6: Partner on the Path to Decarbonization
01 Strategy PARTNER ON THE PATH TO DECARBONIZATION implementation PRODUCTION AND SYSTEMS RESOURCES FOR PRODUCTION ENGINEERING Cooperation for the expansion of renewable Technology partnerships for the energies and partnerships for the hydrogen conversion of production and future CO2 ramp-up monitori
Slide 7: Profitability: Earnings Improvement Program
01 Strategy PROFITABILITY: EARNINGS IMPROVEMENT PROGRAM implementation FULL-YEAR EFFECT (€ million) 250 58 235 200 43 150 66 100 56 50 12 0 2022 2023e 2024e 2025e 2026e 2022-2026 cumulative Target increased to € 200-250 million full-year-effect © 2024 Salzgitter AG / 7
Slide 8: Agenda
AGENDA 01 Strategy implementation 02 Development of the business units and guidance 03 Financials © 2024 Salzgitter AG / 8
Slide 9: Steel Production
02 Econ STEEL PRODUCTION omic Devel opmen t of th e b usin e ss un its KEY DATA REVIEW AND OUTLOOK / Significant decline of steel prices FY 2023 FY 2022 Δ / General cost increases External sales €m 3,528 4,263 -735 / Blast furnace relining in the second half of the financial year Order bookings kt 4
Slide 10: Steel Processing
02 Econ STEEL PROCESSING omic Devel opmen t of th e b usin e ss un its KEY DATA REVIEW AND OUTLOOK / Plate: Marked increase of sales prices at the start of the year, followed by decrease until the end of the third quarter, FY 2023 FY 2022 Δ then stable at year-end. External sales €m 2,127 2,106 21 /
Slide 11: Trading
02 Econ TRADING omic Devel opmen t of th e b usin e ss un its KEY DATA REVIEW AND OUTLOOK / Restrained demand development FY 2023 FY 2022 Δ / Severe pressure on margins in stockholding steel trading External sales €m 3,313 4,581 -1,268 / Good business development in international trading Shipments k
Slide 12: Technology
02 Econ TECHNOLOGY omic Devel opmen t of th e b usin e ss un its KEY DATA REVIEW AND OUTLOOK / Order intake at record level despite opposite industry trend FY 2023 FY 2022 Δ / Rigorous pursuit of the efficiency and growth program “KHS Future” External sales €m 1,647 1,430 217 / Outstanding result Or
Slide 13: Economic Conditions
02 Guidance ECONOMIC CONDITIONS Global economy in recovery mode, but economic challenges remain: / United States with robust economy, India with strongest growth, uncertainty regarding China. / Effects of the attacks in the Red Sea not yet noticeable in supply chains, risk of further escalation resu
Slide 14: Management Guidance
02 Guidance MANAGEMENT GUIDANCE Provided that there is no further escalation in political and economic circumstances, we assume the following for the Salzgitter Group in the financial year 2024: / sales of between € 10.5 billion and € 11.0 billion, / EBITDA of between € 700 million and € 750 million
Slide 15: Agenda
AGENDA 01 Strategy implementation 02 Development of the business units and guidance 03 Financials © 2024 Salzgitter AG / 15
Slide 16: Income Statement
01 FINCOME inancials STATEMENT Income Statement (€ million) FY 2023 FY 2022 Δ Sales 10,790.5 12,553.3 -1,762.8 Increase/decrease in finished goods and work in process/other own work -171.3 249.9 -421.2 capitalized 10,619.2 12,803.2 -2,184.0 Other operating income 671.8 984.8 -313.0 Cost of materials
Slide 17: Consolidated Balance Sheet – Assets
01 FCONSOLIDATED inancials BALANCE SHEET Assets (€ million) 12/31/2023 12/31/2023 Δ Non-current assets 4,570.4 4,510.0 60.4 Intangible assets, property, plant and equipment 2,595.8 2,416.5 179.3 Investment property 76.6 78.1 -1.4 Financial assets 29.0 38.3 -9.3 Investments accounted for using the eq
Slide 18: Consolidated Balance Sheet – Equity and Liabilities
01 FCONSOLIDATED inancials BALANCE SHEET Equity and liabilities (€ million) 12/31/2023 12/31/2022 Δ Equity 4,834.5 4,850.4 -15.9 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 4,750.9 4,731.2 19.7 Unappropriated retained earnings 27.1 60.1 -33.0 Treasury shares
Slide 19: Cash Flow Statement
01 FCASH FLOW STATEMENT inancials (€ million) FY 2023 FY 2022 Δ Cash and cash equivalents at the start of the period 988.4 741.8 246.6 Cash flow from operating activities 892.0 596.5 295.4 Cash flow from investment activities -430.5 -367.7 -62.8 Cash flow from financial activities -498.3 11.3 -509.6
Slide 20: Working Capital – Marked Reduction in FY 2023
03 FWORKING inancials CAPITAL – MARKED REDUCTION IN FY 2023 WORKING CAPITAL (€ million) -827 4,000 3,691 3,596 3,589 3,500 3,191 3,000 2,769 2,500 2,000 1,500 1,000 500 0 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Marked reduction of the working capital over the course of the financial year 2023 © 2024
Slide 21: Investments and Depreciation
03 FINVESTMENTS inancials AND DEPRECIATION (€ million) 593 583 475 411 193 367 208 20 4 348 300 295 286 317 2019 2020 2021 2022 2023 Scheduled Unscheduled Investments1 depreciation depreciation 1 Property, plant and equipment and intangible assets, excluding financial assets Focus on supplementary i
Slide 22: Dividend Proposal
03 FDIVIDEND inancials PROPOSAL Dividend (€/share) 1.20 1.00 1.00 0.80 0.75 0.60 0.55 0.45 0.45 0.40 0.30 0.25 0.20 0.20 0.00 0.00 0.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e Shareholders participate in the company‘s success © 2024 Salzgitter AG / 22
Slide 23: 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 24: Salzgitter AG – People, Steel and Technology
SALZGITTERAG People, Steel and Technology