Salzgitter Ag · XETR:SZG
Salzgitter — H1 2018 Earnings Presentation
33 slides from Salzgitter's earnings presentation, Aug 13, 2018
Slide 1: Analyst Conference First Half 2018
Analyst Conference First Half 2018 Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board Burkhard Becker, Chief Financial Officer SZAG Investor Relations Frankfurt, August 13, 2018 english
Slide 2: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2018 5 Guidance english
Slide 3: Very pleasing first half of 2018
Key Data / Market Situation Overview Very pleasing first half of 2018 Market Robust strip steel market Framework conditions of other product areas developed positively for the most part High uncertainty from trade policy measures impair planning capability and international projects Volatile
Slide 4: Key data per 2018/06/30
Key Data / Market Situation Key data per 2018/06/30 Crude steel production [kt] Consolidated sales [€ million] EBT [€ million] 3,528 4,616 4,617 3,415 199 +114 +1 +99 (+3%) (+0%) 100 (+98%) H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 ROCE [%] Net financial position [€ million] Core workforce [pe
Slide 5: Economy: industrial production in selected EU countries
Key Data / Market Situation Economy 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 Source: Eurostat, own research, last figure from May 2018 SZAG Investor Relati
Slide 6: Raw materials
Key Data / 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 70 260 60 200 240 50 150 40 220 100 30 20 50 200 SZAG Investor Relations Volatile raw material markets present risks, but also
Slide 7: Update international steel trade
Key Data / 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
Slide 8: Steel prices
Key Data / Market Situation Steel prices Spot prices Northern Europe Hot-rolled coil prices international (€/t) 900 (€/t) 900 800 800 700 700 08/18 08/18 600 600 500 500 400 400 300 300 Jan 17 Jul 17 Jan 18 Jul 18 Jan 17 Jul 17 Jan 18 Jul 18 HRC EXW Ruhr Plate EXW Ruhr Medium sections Northern Europ
Slide 9: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2018 5 Guidance english
Slide 10: Business Units: Strip Steel
Business Units Strip Steel Order intake Consolidated sales Earnings before taxes 3,000 1,400 125 1,200 1,243 2,500 2,383 1,102 2,305 1,000 2,000 109.7 € million € million 800 kt 1,500 100 600 1,000 94.2 400 500 200 0 0 75 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 SZAG Investor Relations Increa
Slide 11: Business Units: Plate / Section Steel
Business Units Plate / Section Steel Order intake Consolidated sales Earnings before taxes 1,400 600 25 555 1,200 538 500 22.0 1,165 20 1,100 1,000 400 15 € million € million 800 kt 300 600 10 200 400 5 5.7 100 200 0 0 0 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 SZAG Investor Relations PTG was
Slide 12: Business Units: Mannesmann
Business Units Mannesmann Order intake* Consolidated sales* Earnings before taxes 900 600 14 569 563 800 12 791 12.3 767 500 700 10 600 400 8 € million € million € million 500 6 300 400 4 300 200 2 200 0 100 100 -2 -2.7 0 0 -4 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 * excluding EUROPIPE-Grou
Slide 13: Business Units: Trading
Business Units Trading Shipments Consolidated sales Earnings before taxes 3,000 1,800 40 1,600 1,676 2,500 1,549 34.6 2,500 1,400 30 2,247 2,000 1,200 25.0 € million € million 1,000 kt 1,500 20 800 1,000 600 10 400 500 200 0 0 0 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 SZAG Investor Relations
Slide 14: Business Units: Technology
Business Units Technology Order intake Consolidated sales Earnings before taxes 700 700 25 600 633 600 630 614 610 20 20.5 500 500 15 € million € million € million 400 400 13.6 300 300 10 200 200 5 100 100 0 0 0 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 SZAG Investor Relations Stable earnings
Slide 15: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2018 5 Guidance english
Slide 16: Programs of measures I – what we have achieved so far
Group strategy SZAG 2021 Programs of measures I – what we have achieved so far Restructuring Extensive optimization measures in Salzgitter AG 2015 / FitStructure numerous Group companies Growth Product range development RH vacuum plant – Capacity expansion of the secondary metallurgy Salzgitte
Slide 17: Programs of measures II – what we have achieved over the course of the year
Group strategy SZAG 2021 Programs of measures II – what we have achieved over the course of the year Reconciliation of earnings H1 2018 vs. H1 2017 € million -5 68 199 36 100 Group EBT H1 2017 Market influence Measures Other Group EBT H1 2018 SZAG Investor Relations Earnings improvement to a large e
Slide 18: Programs of measures III – what we intend in the coming years
Group strategy SZAG 2021 Programs of measures III – What we intend in the coming years Restructuring – 2018-2021 additional € 140 million p.a. earnings improvement potential FitStructure Focus on Mannesmann and Technology business units Growth – around € 240 million p.a. additive earnings contribu
Slide 19: Acquisition of French stainless steel tube producer SOTEP
Group strategy SZAG 2021 May 22, 2018: Acquisition of the French stainless steel tube producer SOTEP and Key data of the acquisition Landing gear Airbus A320 ceo/neo Founding year 1980 Headquarters Issoudun, France Sales (2017) > € 10 million SAM 146 engine Sukhoi Superjet 100 Employees 65
Slide 20: Salzgitter Group launches bidding platform e-AUCTION
Group strategy SZAG 2021 May 23, 2018: Salzgitter Group launches bidding platform e-AUCTION SZAG Investor Relations Steel trading takes another step in the direction of digitalization english 20
Slide 21: Insider information pursuant to Article MAR
Group strategy SZAG 2021 July 16, 2018: Insider information pursuant to Article 17 MAR Today, the Executive Board of Salzgitter AG has decided to submit an offer to acquire production facilities in Dudelange (Luxembourg) and Liege (Belgium) in the context of the divestment process currently conducte
Slide 22: 20th anniversary of the Salzgitter AG stock listing
Group strategy SZAG 2021 June 2, 2018 – 20th anniversary of the Salzgitter AG stock listing 1998 2000 2001 2007 2008 2013 2018 Takeover by State of Mannesmannröhren- Inclusion into Klöckner-Werke AG Aurubis AG Start Best half-year Lower Saxony and Werke AG MDAX „Salzgitter AG 2015“ result since 2008
Slide 23: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2018 5 Guidance english
Slide 24: Best half-year result since 2008
Financial Accounts First Half 2018 Overview Best half-year result since 2008 Profit before taxes almost doubled compared to the previous year „FitStructure“ and „SZAG 2021“ contribute nearly € 70 million additional profit improvement potential realized for the first time ROCE has reached 12.8
Slide 25: Group Result
Financial Accounts First Half 2018 Group Result € million 500 400 169.4 300 38.6 200 406.6 63,3 237.2 100 198.6 135.4 0 EBITDA Depr./Amort. EBIT Net Interest EBT Taxes EAT SZAG Investor Relations Depreciation and amortization around the previous year’s level and similarly high interest income Improv
Slide 26: Income statement
Financial Accounts First Half 2018 Income statement Income Statement (€ million) H1 2018 H1 2017 Sales 4,617.1 4,616.2 Increase/decrease in finished goods and work in process/other own work capitalized 29.7 37.9 4,646.8 4,654.1 Other operating income 147.2 145.2 Cost of materials 3,013.9 3,086.9 Per
Slide 27: Consolidated balance sheet: assets
Financials Consolidated balance sheet Assets (€ million) 2018/06/30 2017/12/31 Δ Non-current assets 3,621.9 3,565.9 56.0 Intangible assets, property, plant and equipment 2,393.5 2,433.3 -39.8 Investment property 21.4 21.5 -0.1 Financial assets 94.9 84.1 10.8 Investments accounted for using the equit
Slide 28: Consolidated balance sheet: equity and liabilities
Financials Consolidated balance sheet Equity and liabilities (€ million) 2018/06/30 2017/12/31 Δ Equity 3,075.9 2,989.7 86.2 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 2,973.6 2,854.6 119.0 Other reserves 42.7 51.1 -8.4 Unappropriated retained earnings 2.8 2
Slide 29: Balance Sheet – Figures
Financial Accounts First Half 2018 Balance Sheet – Figures Equity ratio Net financial position (€ million) H1 450 403 415 381 2018 36% 400 350 302 2017 36% 300 240 2016 34% 250 200 2015 35% 150 100 2014 34% 50 0 Pension provisions (€ million) 2014 2015 2016 2017 H1 3,000 2.25% 2.50% 2018 1.75% 2.00%
Slide 30: Cash flow statement
Financial Accounts First Half 2018 Cash flow statement € million 1,000 800 170.1 -276.4 600 -45.7 1.1 400 679.4 528.6 200 0 Cash and cash Cash flow Cash flow Cash flow Other Cash and cash equivalents at start from operating from investment from financing equivalents at end of period activities activ
Slide 31: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Group strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2018 5 Guidance english
Slide 32: Business Units – Forecast 2018
Guidance Business Units – Forecast 2018 Strip Steel Plate / Section Steel Mannesmann Trading Technology market environment remains Plate: market environment Large-diameter pipe mills: other areas will not be able KHS Group: continuing fierce sensitive still characterized by high still temp
Slide 33: Salzgitter Group – Guidance from August 13, 2018
Guidance Salzgitter Group – Guidance from August 13, 2018 Against the backdrop of uncertainty from trade policies and their possible impact, Salzgitter AG is leaving its guidance for the financial year 2018 unchanged – notwithstanding the currently positive situation of our key sales markets – and c