Salzgitter Ag · XETR:SZG
Salzgitter — Baader Investment Conference 2020
25 slides from Salzgitter's conference presentation, Sep 22, 2020
Slide 1: Baader Investment Conference 2020
Baader Investment Conference 2020 Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board Salzgitter, September 22, 2020 SZAG Investor Relations english
Slide 2: Key Data / Market Situation, Business Units, Strategy, Outlook
1 Key Data / Market Situation 2 Business Units 3 Strategy 4 Outlook SZAG Investor Relations english
Slide 3: Management of the COVID-19 impacts
Key Data / Market Situation Management of the COVID-19 impacts Protecting employee health Ensuring operating ability • Comprehensive risk-minimizing precautions and guidelines • Highest priority for liquidity management • Creation of transparency regarding occurrences of • Temporary reduction of pro
Slide 4: Order intake of steel consumers
Key Data / Market Situation Order intake of steel consumers Order intake of selected branches of the German industrial sector (Jan. 2018 = 100) 130 120 110 100 90 80 70 60 50 40 30 Jan 18 Apr 18 Jul 18 Oct 18 Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20 Construction Mechanical engineering Metal
Slide 5: Raw materials and steel prices
Key Data / Market Situation Raw materials and steel prices Raw Materials Hot rolled coil & Heavy Plate Iron ore Coking Coal 700 (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) 140 300 (€/t) 125 133 130 Ø 614 600 494 120 250 Ø 556 110 Ø 100 Ø 560 100 Ø 207 Ø 498 Ø 93 200 500 Ø 474 90 Ø 177 Ø 443 8
Slide 6: EU steel imports
Key Data / Market Situation EU steel imports Forecast steel demand EU-28 2020 (versus previous year‘s quarter) Rolled steel imports into the EU-28 (in t/month) 0% 2,500 20% -4% -10% 2,000 16% -12% -20% -17% -17% 1,500 12% -30% 1,000 8% -32% -40% 500 4% -50% 0 0% Q1/2020 Q2/2020 Q3/2020 Q4/2020 Ø 202
Slide 7: Key data per 2020/06/30
Key Data / Market Situation Key data per 2020/06/30 H1 2020 H1 2019 Δ Q2 2020 Q1 2020 Crude steel production kt 2,952.7 3,412.1 -459.4 1,271.2 1,681.5 External sales1 € million 3,631.0 4,526.2 -895.2 1,522.7 2,108.3 Earnings before tax € million -127.8 145.3 -273.1 -96.4 -31.4 Earnings after tax € m
Slide 8: Business Units
1 Key Data / Market Situation 2 Business Units 3 Strategy 4 Outlook SZAG Investor Relations english
Slide 9: Business Units: Strip Steel
Business Units Strip Steel Order intake Consolidated sales Earnings before taxes 2,500 1,400 75 2,282 1,200 60.3 50 2,000 1,175 1,834 1,000 25 1,500 903 € million € million 800 kt 0 600 1,000 -25 400 500 -50 200 -69.2 0 0 -75 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 SZAG Investor Relations Sl
Slide 10: Business Units: Plate / Section Steel
Business Units Plate / Section Steel Order intake Consolidated sales Earnings before taxes 1,200 500 50 1,000 1,035 442 400 966 25 363 800 300 € million € million kt 600 0 0.6 200 -27.0 400 -25 100 200 0 0 -50 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 SZAG Investor Relations External sales bel
Slide 11: Business Units: Mannesmann
Business Units Mannesmann Order intake* Consolidated sales* Earnings before taxes 800 800 20 686 10 600 600 9.0 582 498 494 0 € million € million € million 400 400 -10 200 200 -20 -22.7 0 0 -30 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 * excluding EUROPIPE-Group SZAG Investor Relations Dramati
Slide 12: Business Units: Trading
Business Units Trading Shipments Consolidated sales Earnings before taxes 2,500 2,000 20 2,000 2,091 1,500 1,578 10 1,724 1,500 1,229 € million € million 4.1 kt 1,000 0 1,000 -15.8 500 -10 500 0 0 -20 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 SZAG Investor Relations Lower volumes especially in
Slide 13: Business Units: Technology
Business Units Technology Order intake Consolidated sales Earnings before taxes 800 700 20 657 600 16.1 682 575 600 10 500 558 € million € million € million 400 400 0 300 200 -10.6 200 -10 100 0 0 -20 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 SZAG Investor Relations Sharp decline in demand fro
Slide 14: Industrial Participations / Consolidation
Business Units Industrial Participations / Consolidation Consolidated sales Earnings before taxes 100 60 91 50 80 Contribution Aurubis investment: 40 H1 2019: € 56.4 m* 60 67 H1 2020: € 34.0 m € million € million 30 55.1 40 20 20 10 17.4 0 0 H1 2019 H1 2020 H1 2019 H1 2020 * thereof € 27.8 million
Slide 15: Strategy
1 Key Data / Market Situation 2 Business Units 3 Strategy 4 Outlook SZAG Investor Relations english
Slide 16: Salzgitter AG 2021 growth strategy – goals and stipulations
Strategy “Salzgitter AG 2021” growth strategy – goals and stipulations Goals Stipulations Steel-related Less steel-related 1. Qualitative Growth Rolled steel production and parts of the tubes production can only grow qualitatively, not quantitatively. 2. Quantitative Growth Quantitative growth is po
Slide 17: Salzgitter AG 2021 growth strategy – implementation
Strategy “Salzgitter AG 2021” growth strategy – implementation 1. Qualitative growth in steel-related areas Ilsenburger Grobblech GmbH: Salzgitter Flachstahl GmbH: New heat treatment line Hot-Dip Galvanizing Line 3 Optimization of the product portfolio Strengthening of the premium segment for
Slide 18: Our path towards a low-CO2, hydrogen-based steel production
Strategy Our path towards a low-CO2, hydrogen-based steel production We are in control… …and pioneer at the same time CO2- emission allowances acquired as a precaution • Shortfall in CO2 allowances has • Significant, gradual reduction of been compensated for the most the CO2 emissions of Salzgitter
Slide 19: Salzgitter Wind Hydrogen
Strategy “Salzgitter Wind Hydrogen” Important building block on the way towards climate-friendly steel production • Production of electricity via wind power and electrolytic hydrogen at the plant site • Erection of seven wind turbines with an overall output of 30 megawatt on the grounds of Salzgitte
Slide 20: Green strip steel
Strategy Green strip steel Expansion of the product range to include green strip steel • Salzgitter AG will offer a range of green strip steel products in specified grades and dimensions before the end of 2020 • These products feature a CO2 footprint of less than a quarter of that seen with previous
Slide 21: Feasibility study for direct reduction of iron ore at Wilhelmshaven
Strategy Feasibility study for the direct reduction of iron ore at Wilhelmshaven agreed upon Study Project partners • Construction of a direct reduction plant with an upstream hydrogen electrolyzer as well as • Developing necessary infrastructure for supplying it with raw materials, natural gas and
Slide 22: Update investment projects
Strategy Update investment projects Ilsenburger Grobblech: New heat treatment line Optimization of the product portfolio Expansion of the market position and volume expansion for higher value grade segments such as high strength and wear resistant, water tempered steel Commissioning: 2021 Cu
Slide 23: Outlook
1 Key Data / Market Situation 2 Business Units 3 Strategy 4 Outlook SZAG Investor Relations english
Slide 24: Salzgitter Group – Guidance
Guidance Salzgitter Group – Guidance We anticipate that the second and third quarter will likely mark the bottoming out of the current crisis. At the same time, the strength and the timescale of a feasible macroeconomic recovery in the second half of the year are subject to great uncertainty. Agains
Slide 25: Baader Investment Conference 2020
Baader Investment Conference 2020 Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board Salzgitter, September 22, 2020 SZAG Investor Relations english