Salzgitter Ag · XETR:SZG
Salzgitter — 18th German Corporate Conference 2019
20 slides from Salzgitter's conference presentation, Jan 21, 2019
Slide 1: 18th German Corporate Conference
18th German Corporate Conference Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board SZAG Investor Relations Frankfurt, January 21, 2019
Slide 2: Salzgitter Group, Market Situation, Strategy
1 Salzgitter Group 2 Market Situation 3 Strategy SZAG Investor Relations english
Slide 3: Salzgitter Group: Global Presence
Salzgitter Group Global Presence Strip Steel Plate / Section Steel Mannesmann Trading Technology SZAG Investor Relations Crude steel production 2018: 7.0 million tons; trading volume: 4.8 million tons; Among the top 3 producers of beverage filling and packaging machinery english 3
Slide 4: External sales 2017 by customer industries
Salzgitter Group External sales 2017 by customer industries 13% 15% Other Vehicle construction 13% 12% Food and beverage industry Construction industry 4% 4% Mechanical engineering White goods, electrical equipment 5% 5% Re-rollers Energy sector and utilities 6% 23% Tubes producers Traders, Steel-Se
Slide 5: Key data per 2018/09/30
Salzgitter Group Key data per 2018/09/30 Crude steel production [kt] Consolidated sales [€ million] EBT [€ million] 285 5,151 5,204 6,813 6,931 +53 +118 174 +110 (+1%) (+2%) (+63%) 9M 2017 9M 2018 9M 2017 9M 2018 9M 2017 9M 2018 ROCE [%] Net financial position [€ million] Core workforce [per 09/30]
Slide 6: Earnings development of business units
Salzgitter Group Earnings development of business units 9M 2018 9M 2017 Earnings before taxes € million 284.6 174.5 Strip Steel € million 171.2 159.2 Plate / Section Steel € million 14.5 -18.7 Mannesmann € million 20.7 1.4 Trading € million 35.2 44.8 Technology € million 30.5 17.8 Industrial Partici
Slide 7: Guidance from September 19, 2018 affirmed
Salzgitter Group Guidance from September 19, 2018 affirmed We continue to anticipate: a marginal increase in sales to above € 9 billion, a pre-tax profit of between € 300 million and € 350 million and a marginally higher return on capital employed of between 9% and 11% compared with the previo
Slide 8: Market Situation
1 Salzgitter Group 2 Market Situation 3 Strategy SZAG Investor Relations english
Slide 9: Environment I
Market Situation Environment I Industrial production in selected countries of the EU (Jan. 2007 = 100) 120 110 100 90 80 70 60 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Germany GB France Italy Spain SZAG Investor Relations The trend of the previous years continues: Slightly improvi
Slide 10: Environment II
Market Situation Environment II Order intake of selected industries in Germany (2015 = 100) 160 140 120 100 80 60 40 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Construction Mechanical Engineering Metal Production and Processing Vehicle Construction SZAG Investor Relations Current se
Slide 11: Raw materials
Market Situation Raw materials Iron ore Coking coal Steel scrap (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) (grade 2/8, €/t) 100 350 300 90 300 280 80 250 260 70 200 240 60 150 220 50 100 200 SZAG Investor Relations Raw materials markets marked by high volatility english 11
Slide 12: Update international steel trade
Market Situation Update international steel trade International measures affecting the European Union Reaction of the European Union USA: Protective tariffs against numerous states cover June 1, 2018: WTO complaint filed against the Section almost all product groups 232 tariffs of the United Sta
Slide 13: Safeguard measures
Market Situation Safeguard measures Final safeguard measures of the EU as adopted on January 16, 2019 The EU Commission recognizes the ongoing threat of significant injury for the EU steel industry even in light of the temporary recovery Country-specific quotas Quarterly quotas (to preve
Slide 14: Steel prices
Market Situation Steel prices Spot prices Northern Europe Hot-rolled coil prices international (€/t) 900 (€/t) 900 800 800 700 700 01/19 01/19 600 600 500 500 400 400 300 300 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 HRC EXW Ruhr Plate EXW Ruhr Medium sections Northern Eu
Slide 15: Strategy
1 Salzgitter Group 2 Market Situation 3 Strategy SZAG Investor Relations english
Slide 16: Strategy – review
Strategy Strategy – review Structural measures 2012-2018 SZAG 2015 Other programs (since end of 2016 combined under FitStructure SZAG) 2012 – 2016 € 260 million p.a. € 340 million p.a. € 600 million € p.a. earnings improvement potential 2012-2018 SZAG Investor Relations Initial Emphasis inevitably o
Slide 17: What we intend in the coming years
Strategy What we intend in the coming years Restructuring – 2019-2021 additional € 80 million p.a. earnings improvement potential FitStructure Focus on Mannesmann and Technology business units Growth – around € 240 million p.a. additive earnings contribution Strip Steel Plate / Section Steel Manne
Slide 18: External growth
Strategy External growth Activities in 2019 Aurubis SOTEP Hydroforming joint venture Increase of the shareholding back to Internationalization and expansion of Strengthening of the market position 25% the value chain of Mannesmann in China, cooperation with a leading Business Unit through the
Slide 19: Warren Buffett quote
“Only when the tide goes out do you discover who's been swimming naked.” Warren Buffett SZAG Investor Relations english 19
Slide 20: 18th German Corporate Conference
18th German Corporate Conference Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board SZAG Investor Relations Frankfurt, January 21, 2019