Salzgitter Ag · XETR:SZG
Salzgitter — Investor Presentation (September 2024)
43 slides from Salzgitter's investor presentation, Sep 17, 2024
Slide 1: Presentation of the Group
SALZGITTER AG PRESENTATION OF THE GROUP September 17, 2024
Slide 2: Agenda
AGENDA 01 Salzgitter Group 02 Market environment 03 Economic development and guidance 04 Strategy 05 Financials © 2024 Salzgitter AG / 22
Slide 3: Global Presence
01 Salzgitter GLOBAL PRESENCE Group Steel Production located in Germany, Steel Processing with plants Europe; Trading and Technology have global presence © 2024 Salzgitter AG / 3
Slide 4: Group Structure and Key Data FY 2023
01 Salzgitter GROUP STRUCTURE AND KEY DATA FY 2023 Group Salzgitter Group External Sales cons.: € 1 0 . 8 b i l l i o n / EBT: € 238,4 million / Employees: 23,318 Steel Production Steel Processing Trading Technology / External Sales: € 3.5 billion / External Sales: € 2.1 billion / External Sales: €
Slide 5: External Sales 2023 by Product Group
01 Salzgitter EXTERNAL SALES 2023 BY PRODUCT GROUP Group 9% Other 43% 15% Strip steel Filling- and packaging lines 15% Tubes 10% 8% Plate Section steel Only from entities within the group of consolidated companies of Salzgitter Group, excluding EUROPIPE Group Broad product portfolio © 2024 Salzgitte
Slide 6: External Sales 2023 by Customer Industries
01 Salzgitter EXTERNAL SALES 2023 BY CUSTOMER INDUSTRIES Group 11% 14% Other Vehicle construction 14% 13% Food and beverage Construction industry industry 4% 6% White goods, Mechanical engineering electrical equipment 5% 4% Re-Roller Energy sector and utilities 5% 24% Tubes producers Traders, Steel-
Slide 7: External Sales 2023 by Regions
01 Salzgitter EXTERNAL SALES 2023 BY REGIONS Group 5% Others 7% Asia 10% 46% Americas Germany 4% Other Europe 28% 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 8: Agenda
AGENDA 01 Salzgitter Group 02 Market environment 03 Economic development and guidance 04 Strategy 05 Financials © 2024 Salzgitter AG / 88
Slide 9: Raw Material and Energy Prices
02 MRAW MATERIAL AND ENERGY PRICES a r k e t e n vir o n me n t 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-Ahead €/MWh Hs)
Slide 10: Steel Prices
02 MSTEEL PRICES a r k e t e n vir o n me n t 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' 22 Jul' 22 Jan' 23 Jul' 23 Jan' 24 Jul' 24 Jan' 22 Jul' 22 Jan' 23 Jul' 23 Jan'
Slide 11: New Anti-Dumping Proceedings
NEW ANTI-DUMPING PROCEEDINGS M a r k e t e n vir o n me n t HRC imports into the EU, in t/month / Anti-dumping complaint against HRC 900,000 imports from India, Japan, Vietnam und 800,000 Egypt filed at the end of June 2024. 700,000 / Start of the proceeding on August 8, 2024 600,000 / Preliminary m
Slide 12: Agenda
AGENDA 01 Salzgitter Group 02 Market environment 03 Economic development and guidance 04 Strategy 05 Financials © 2024 Salzgitter AG / 12
Slide 13: Key Data for the First Half of 2024
03 Econ KEY DATA FOR THE FIRST HALF OF 2024 omic d e vel opmen t a n d guid a n ce H1 2024 H1 2023 Δ Crude steel production kt 3,329 3,135 193 External sales1 € million 5,243 5,836 -593 EBITDA € million 234 429 -196 Earnings before tax € million 11 211 -199 Earnings after tax € million -19 160 -179
Slide 14: Steel Production Business Unit
03 Econ STEEL PRODUCTION BUSINESS UNIT omic d e vel opmen t a n d guid a n ce Capabilities EXTERNAL SALES BY CUSTOMER INDUSTRY 2023 1 / Integrated steel works with three blast furnaces 2% 8% / Top-modern mini mill with two electric Mechanical Others arc furnaces engineering / Approx. 5.7 mt/year cru
Slide 15: Steel Production Business Unit: Key Data Review
03 Econ STEEL PRODUCTION BUSINESS UNIT omic d e vel opmen t a n d guid a n ce KEY DATA REVIEW / European steel prices remain under pressure H1 2024 H1 2023 Δ / Overall low level of demand External sales €m 1,816 1,965 -149 Order bookings kt 2,583 2,544 39 OUTLOOK Order backlog 1 kt 1,092 1,005 87 /
Slide 16: Steel Processing Business Unit
03 Econ STEEL PROCESSING BUSINESS UNIT omic d e vel opmen t a n d guid a n ce Capabilities EXTERNAL SALES BY CUSTOMER INDUSTRY 2023 1 / Own crude steel supply via 30% participation in Hüttenwerke Krupp Mannesmann GmbH 15% / Two rolling mills for plate with 1.1 mt annual capacity 22% Vehicle construc
Slide 17: Steel Processing Business Unit: Key Data Review
03 Econ STEEL PROCESSING BUSINESS UNIT omic d e vel opmen t a n d guid a n ce KEY DATA REVIEW / Plate: significant decline in demand, market prices at 2021 Δ level, increase in input material costs H1 2024 H1 2023 / Steel tubes: External sales €m 859 1,187 -328 • Line pipes: postponement of projects
Slide 18: Trading Business Unit
03 Econ TRADING BUSINESS UNIT omic d e vel opmen t a n d guid a n ce Capabilities EXTERNAL SALES BY CUSTOMER INDUSTRY 2023 1 / Own distribution network for steel products with 10% 11% warehousing sites in Europe Mechanical engineering Other / Processing group specialized in heavy 1% plate products R
Slide 19: Trading Business Unit: Key Data Review
03 Econ TRADING BUSINESS UNIT omic d e vel opmen t a n d guid a n ce KEY DATA REVIEW / Weak demand in the European stockholding steel trade H1 2024 H1 2023 Δ / Prices remain at the previous year's low level External sales €m 1,604 1,760 -157 / Improved business development in international trading c
Slide 20: Technology Business Unit
03 Econ TECHNOLOGY BUSINESS UNIT omic d e vel opmen t a n d guid a n ce Capabilities EXTERNAL SALES BY CUSTOMER INDUSTRY 2023 1 / 16 production plants worldwide / > 90% of sales outside of Germany 4% 1% Vehicle Energy sector and construction utilities Core competences and products / KHS: Among the t
Slide 21: Technology Business Unit: Key Data Review
03 Econ TECHNOLOGY BUSINESS UNIT omic d e vel opmen t a n d guid a n ce KEY DATA REVIEW / Order intake decreases due to generally weak demand H1 2024 H1 2023 Δ / High order backlog supports capacity utilization at the KHS Group External sales €m 871 836 35 / Earnings growth thanks to good performanc
Slide 22: Industrial Participations
03 Econ INDUSTRIAL PARTICIPATIONS omic d e vel opmen t a n d guid a n ce Activities that are not directly allocated to KEY DATA FY 2023 a business unit Consolidated sales €m 176 Core competences and participations Earnings before taxes €m -50 Services: Core workforce (12/31) 2,505 / Research and dev
Slide 23: Management Guidance
03 Econ MANAGEMENT GUIDANCE omic d e vel opmen t a n d guid a n ce / sales of around 10 billion, / EBITDA of between € 400 million and € 500 million, / a pre-tax result at breakeven, and, / a return on capital employed (ROCE) that is tangibly lower year on year. Potential one-off effects with an imp
Slide 24: Agenda
AGENDA 01 Salzgitter Group 02 Market environment 03 Economic development and guidance 04 Strategy 05 Financials © 2024 Salzgitter AG / 24
Slide 25: Strategic Directions
04 SSTRATEGIC trategy DIRECTIONS 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 26: Ambition: Become Market Leader in Circular Economy
04 SAMBITION: trategy TO BECOME MARKET LEADER IN CIRCULAR ECONOMY 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 partne
Slide 27: Salzgitter AG's Decarbonization Approach
04 SSALZGITTER trategy AG'S DECARBONIZATION APPROACH SCIENCE-BASED HOLISTIC IMPACT-ORIENTED TRANSPARENT Our goals are based on globally We consider both our direct impacts We focus on cost-efficient We regularly communicate our recognized scientific findings to and those in the upstream and measures
Slide 28: Decarbonization Is Necessary
04 SDECARBONIZATION trategy IS NECESSARY Phaseout path for free allocation in % / Instruments to prevent carbon leakage: 2026 2027 2028 2029 2030 2031 2032 2033 2034 free allocation will be gradually replaced 0 by the carbon border adjustment -2.5 -5 -22.5 -10 mechanism CBAM from 2026 -10 -20 -48.5
Slide 29: 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 30: Progress on SALCOS
04 SPROGRESS trategy ON SALCOS ® Site preparation works at an advanced stage Delivery of first plant parts commenced in mid-July Final installation of a part for the Mega-Media-Line completed on July 24 Implementation of SALCOS® continues to be on time © 2024 Salzgitter AG / 30
Slide 31: Active Alignment to Salzgitter AG 2030: Protection Steels
04 SACTIVE trategy ALIGNMENT TO “SALZGITTER AG 2030” SECURE Protection Steels / High-strength safety steels from ILG offer increased resistance to ballistic impacts / Excellent combination of high hardness and good toughness of these steel grades meet the requirements of all major national and inter
Slide 32: Active Alignment: Sale of Mannesmann Stainless Tubes Group
04 SACTIVE trategy ALIGNMENT TO “SALZGITTER AG 2030” DIVESTMENT SALE OF MANNESMANN STAINLESS TUBES GROUP Sale to Cogne Acciai Speciali Final approvals of regulatory bodies pending Closing expected to be in the third quarter of 2024 Cash inflow of € 125 million Active portfolio management © 2024 Salz
Slide 33: Profitability: Earnings Improvement Program
04 SPROFITABILITY: trategy EARNINGS IMPROVEMENT PROGRAM FULL-YEAR EFFECT (€ million) 300 250 59 243 200 75 150 40 100 56 50 12 0 2022 2023 2024e 2025e 2026e 2022-2026 cumulative Target increased to around 250 million full-year-effect © 2024 Salzgitter AG / 33
Slide 34: Agenda
AGENDA 01 Salzgitter Group 02 Market environment 03 Economic development and guidance 04 Strategy 05 Financials © 2024 Salzgitter AG / 34 34
Slide 35: Income Statement
03 FINCOME inancials STATEMENT Income Statement (€ million) H1 2024 H1 2023 Δ Sales 5,243.2 5,835.7 -592.5 Increase/decrease in finished goods and work in process/other own work capitalized 89.8 -76.2 166.0 5,333.0 5,759.5 -426.5 Other operating income 216.1 335.2 -119.1 Cost of materials 3,651.4 3,
Slide 36: Consolidated Balance Sheet: Assets
03 FCONSOLIDATED inancials BALANCE SHEET Assets (€ million) 30.06.2024 31.12.2023 Δ Non-current assets 4,713.8 4,570.4 143.4 Intangible assets, property, plant and equipment 2,742.6 2,595.9 146.7 Investment property 75.9 76.6 -0.7 Financial assets 28.7 29.0 -0.3 Investments accounted for using the e
Slide 37: Consolidated Balance Sheet: Equity and Liabilities
03 FCONSOLIDATED inancials BALANCE SHEET Equity and liabilities (€ million) 30.06.2024 31.12.2023 Δ Equity 4,806.9 4,834.5 -27.6 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 4,686.9 4,660.4 26.5 Other reserves 62.0 90.5 -28.5 Unappropriated retained earnings 2
Slide 38: Cash Flow Statement
03 FCASH FLOW STATEMENT inancials (€ million) H1 2024 H1 2023 Δ Cash and cash equivalents at the start of the period 939.7 988.4 -48.7 Cash flow from operating activities -137.3 249.0 -386.3 Cash flow from investment activities -264.4 -240.5 -24.0 Cash flow from financial activities 45.3 -63.5 108.8
Slide 39: Working Capital: Moderate Seasonal Increase
03 FWORKING inancials CAPITAL: MODERATE SEASONAL INCREASE WORKING CAPITAL (€ million) -540 4.000 3.589 3.500 3.191 3.032 3.049 3.000 2.769 2.500 2.000 1.500 1.000 500 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Marked decrease of working capital in the second half of the financial year 2023, seasonal
Slide 40: Investments and Depreciation
03 FINVESTMENTS inancials AND DEPRECIATION (€ million) 583 475 367 208 315 20 4 300 286 317 164 2021 2022 2023 H1 2024 Scheduled Unscheduled Investments1 depreciation depreciation 1 Property, plant and equipment and intangible assets, excluding financial assets Focus on supplementary investments and
Slide 41: Stay on Course
STAY ON COURSE Financials Internal / Diversification takes effect - Technology BU with > € 100 million EBT in FY 2024 „We cannot / / SALCOS® I will be continued - there is an attractive market for green steel Measures Program to secure earnings and liquidity expanded change the / Specific optimizati
Slide 42: 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 43: Salzgitter AG: People, Steel and Technology
SALZGITTERAG People, Steel and Technology