Salzgitter Ag · XETR:SZG
Salzgitter — FY2024 Earnings Presentation
36 slides from Salzgitter's earnings presentation, Mar 21, 2025
Slide 1: Analyst Conference FY 2024
ANALYST CONFERENCE FY 2024 March 21, 2025 © 2025 Salzgitter AG / 1
Slide 2: Occupational Safety – Lost Time Injury Frequency (LTIF)
OCCUPATIONAL SAFETY – LOST TIME INJURY FREQUENCY (LTIF) Salzgitter Group 12.36 9.57 8.42 8.57 7.60 7.45 6.78 2018 2019 2020 2021 2022 2023 2024 Work-related accidents per 1 million work hours from the first day off work and fatal work-related accidents; core workforce and training contracts. 2018-20
Slide 3: Agenda
AGENDA 01 Political and economic environment 02 Business development and strategy 03 Financials © 2025 Salzgitter AG / 33
Slide 4: International Trade Policy H1 2025
01 Political INTERNATIONAL TRADE POLICY H1 2025 and economic environment SAFEGUARD REVIEW ANTI-DUMPING MEASURES AGAINST IMPORT OF INTRODUCTION OF DUTIES COMPLETED BY APRIL 1 HOT-ROLLED STRIP FROM JAPAN, VIETNAM AND ON RUSSIAN SEMI- EGYPT FINISHED PRODUCTS 1 st QUARER 2nd QUARTER 01.04. 07.04. 12.03.
Slide 5: EU Industrial Policy 2019 to 2025
01 Political EU INDUSTRIAL POLICY 2019 TO 2025 and economic environment December 2019 European Green Deal 2024 December 2024 2019 Clean Industrial Deal Focus on climate protection and environmental policy New focus on global competitiveness and resilience February 26, 2025 while maintaining Clean In
Slide 6: Germany – Special Fund for Infrastructure
01 Political GERMANY – SPECIAL FUND FOR INFRASTRUCTURE and economic environment IMPLICATIONS FOR SALZGITTER GROUP / Estimate of the German Institute for Economic Research: / Germany's economic output to increase by approximately 1% due to special fund from next year onwards / Increase to over 2% sta
Slide 7: Market Environment
01 Political MARKET ENVIRONMENT and economic environment Increased political uncertainty thwarts global economic recovery Moderate growth rates corrected downwards in Q1 2025, particularly as a result of trade policy conflicts Hopes for growth impulses in the US are dampened by additional econom
Slide 8: Raw Material and Energy Prices
01 Political RAW MATERIAL AND ENERGY PRICES and economic environment 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 €/MW
Slide 9: Steel Prices
01 Political STEEL PRICES and economic environment SPOT PRICES NORTHERN EUROPE (€/t) HOT-ROLLED COIL PRICES INTERNATIONAL (€/t) 1,300 1,300 1,100 1,100 900 900 700 700 500 500 300 300 Jan' 23 Jul' 23 Jan' 24 Jul' 24 Jan' 25 Jan' 23 Jul' 23 Jan' 24 Jul' 24 Jan' 25 HRC EXW Ruhr Plate EXW Ruhr Medium s
Slide 10: Agenda
AGENDA 01 Political and economic environment 02 Business development and strategy 03 Financials © 2025 Salzgitter AG / 10 10
Slide 11: Key Data for the 2024 Financial Year
02 BKEY DATA FOR THE 2024 FINANCIAL YEAR usiness development and strategy FY 2024 FY 2023 Δ Crude steel production kt 6,391 5,709 682 External sales1 € million 10,012 10,790 -779 EBITDA € million 445 677 -232 Earnings before taxes € million -296 238 -535 Earnings after taxes € million -348 204 -552
Slide 12: Steel Production
02 BSTEEL PRODUCTION usiness development and strategy KEY DATA REVIEW / Overall low level of demand FY 2024 FY 2023 Δ / Steel prices remain under pressure External sales million € 3,389 3,528 -139 / Sales and earnings lower, mainly due to prices Order bookings kt 5,032 4,892 140 Order backlog 1 kt 1
Slide 13: Steel Processing
02 BSTEEL PROCESSING usiness development and strategy ECKDATEN REVIEW / Heavy plate: demand declined over the course of the year, market prices at extremely low levels at the end of the year FY 2024 FY 2023 Δ / Line pipes: postponement of projects External sales million € 1,576 2,127 -550 / Precisio
Slide 14: Trading
02 BTRADING usiness development and strategy KEY DATA REVIEW / Weak demand in the European stockholding steel trade FY 2024 FY 2023 Δ / Significantly higher sales volumes in international trading External sales million € 3,057 3,313 -256 / Stock sales prices fell noticeably over the course of the ye
Slide 15: Technology
02 BTECHNOLOGY usiness development and strategy KEY DATA REVIEW / Incoming orders decrease due to generally weak demand GJ 2024 GJ 2023 Δ / High order backlog supports capacity utilization of the KHS Group External sales million € 1,804 1,647 157 / Earnings growth thanks to good performance of the K
Slide 16: Management Guidance
02 BMANAGEMENT GUIDANCE usiness development and strategy We anticipate for the Salzgitter Group in the financial year 2025 / sales between € 9.5 billion and € 10.0 billion, / EBITDA between € 350 million and € 550 million, / a pre-tax result of between € -100 million and € +100 million, and / a retu
Slide 17: Strategic Directions
02 BSTRATEGIC DIRECTIONS usiness development and strategy CIRCULAR ECONOMY / Energy: Top 10 for PPA agreements / Investments in future-oriented shredder and sorting technologies / Circular economy further perpetuated in specific projects PROFITABILITY / Performance program: measures take effect / Po
Slide 18: Holistic Approach for Economic Stability
02 BHOLISTIC APPROACH FOR ECONOMIC STABILITY usiness development and strategy ORGANIC GROWTH INITIATIVES & PERFORMANCE MEASURES © 2025 Salzgitter AG / 18
Slide 19: Holistic Approach for Economic Stability
02 BHOLISTIC APPROACH FOR ECONOMIC STABILITY usiness development and strategy STEEL PROCESSING TRADING SECURE® protection steels Development of low-CO2 steel sources worldwide Mannesmann H2ready® pipes Universal: Development of market Alignment of the product portfolio potential in the field of prot
Slide 20: SALCOS® - We Transform Consistently
02 BSALCOS ® - WE TRANSFORM CONSISTENTLY usiness development and strategy RELIABLE - FLEXIBLE - SUSTAINABLE SALCOS® Stage 1 SALCOS® product brand / funding secured launched / Half-way point reached at the construction site Flexibility in operation with hydrogen/natural gas mixture; Reduction of scop
Slide 21: SALCOS® Stage 1: #WeMakeItHappen
02 BSALCOS ® STAGE 1: #WEMAKEITHAPPEN usiness development and strategy / All major facilities are under construction / Total investment volume € 2.3 billion / 600 - 1000 additional people from various companies on the construction site / Construction activities parallel to production operations / En
Slide 22: Defence: Expansion of the Portfolio
02 BDEFENCE: EXPANSION OF THE PORTFOLIO usiness development and strategy PARADIGM SHIFT IN DEFENSE CAPABILITIES / Geopolitical tensions set new standards for defense capabilities / Increasing demand for steel, protection steels and special grades F O C U S O N D E F E NSE C A PA B I L I T Y A ND S E
Slide 23: Agenda
AGENDA 01 Political and economic environment 02 Business development and guidance 03 Financials © 2025 Salzgitter AG / 23 23
Slide 24: Financials Overview
03 FOVERVIEW inancials Sales EBT [€billion] [€ million] EBT before special items / Sales down to € 10 billion due to declining [€ million] revenue in steel-related activities 10 -296 / EBITDA of € 445 million better than forecast FY 2023: 11 FY 2023: 238 109 / EBT of € -296 million negative due to s
Slide 25: Income Statement
03 FINCOME inancials STATEMENT Income Statement (€ million) FY 2024 FY 2023 Δ Sales 10,011.7 10,790.5 -778.8 Increase/decrease in finished goods and work in process/other own 137.7 -171.3 309.1 work capitalized Overall performance 10,149.4 10,619.2 -469.7 Other operating income 539.5 671.8 -132.3 Co
Slide 26: Consolidated Balance Sheet – Assets
03 FCONSOLIDATED inancials BALANCE SHEET Assets (€ million) 12/31/2024 12/31/2023 Δ Non-current assets 4,991.7 4,570.4 421.3 Intangible assets, property, plant and equipment 2,849.2 2,595.8 253,4 Investment property 65.5 76.6 -11.2 Financial assets 26.2 29.0 -2.8 Investments accounted for using the
Slide 27: Consolidated Balance Sheet – Equity and Liabilities
03 FCONSOLIDATED inancials BALANCE SHEET Equity and liabilities (€ million) 12/31/2024 12/31/2023 Δ Equity 4,448.8 4,834.5 -385.6 Non-current liabilities 2,484.8 2,353.3 131.5 Provisions for pensions and similar obligations 1,638.4 1,667.8 -29.4 Deferred tax liabilities 154.8 98.4 56.4 Income tax li
Slide 28: Cash Flow Statement
03 FCASH FLOW STATEMENT inancials (€ million) FY 2024 FY 2023 Δ Cash and cash equivalents at the start of the period 939.7 988.4 -48.7 Cash flow from operating activities 408.4 892.0 -483.5 Cash flow from investment activities -677.4 -430.5 -246.9 Cash flow from financial activities 331.9 -498.3 830
Slide 29: Working Capital
03 FWORKING inancials CAPITAL WORKING CAPITAL (€ million) -285 3.500 3.032 3.049 3.033 3.000 2.769 2.483 2.500 2.000 1.500 1.000 500 0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Overall reduction in working capital in financial year 2024 - new measures to improve liquidity are taking effect! © 2025 Sal
Slide 30: Investments and Depreciation
03 FINVESTMENTS inancials AND DEPRECIATION (€ million) 899 583 475 295 20 4 329 286 317 2022 2023 2024 2025 Scheduled Unscheduled Investments1 depreciation depreciation 1 Property, plant and equipment and intangible assets, excluding financial assets Focus on expansion investments and SALCOS® - Peak
Slide 31: Holistic Approach for Economic Stability
03 FHOLISTIC inancials APPROACH FOR ECONOMIC STABILITY ORGANIC GROWTH INITIATIVES & PERFORMANCE MEASURES © 2025 Salzgitter AG / 31
Slide 32: Holistic Approach for Economic Stability
03 FHOLISTIC inancials APPROACH FOR ECONOMIC STABILITY PORTFOLIO TRADE CYCLE MEASURES Sale of the Mannesmann Stainless Tubes Group Postponement of non critical investments Trading: Sale of business to Hoberg & Driesch (precision- and Restrictive staffing seamless tubes) Budget adjustments DESMA shoe
Slide 33: Profit Improvement Program P28
03 FPROFIT inancials IMPROVEMENT PROGRAM P28 FULL-YEAR EFFECT (€ million) 600 Performance 2026 P28 P26+ 500 82 400 16 136 300 50 515 € 133 million FYE already realized 200 47 51 100 65 12 56 0 2022 2023 2024 2025e 2026e 2027e Kumuliert 2022-2027 New P28 program expands the scope and timeframe of the
Slide 34: Conclusion
03 CONCLUSION We performed well in a challenging environment in 2024 Performance program takes effect We transform sensibly and consistently “Salzgitter AG 2030” strategy proves its worth, even in an adverse market environment Challenging start to 2025 – potentially opportunities going forward Marke
Slide 35: Disclaimer
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 the
Slide 36: Salzgitter AG – People, Steel and Technology
SALZGITTERAG People, Steel and Technology