Salzgitter Ag · XETR:SZG
Salzgitter — Non-Deal Roadshow (June 2021)
48 slides from Salzgitter's roadshow presentation, June 2021
Slide 1: Presentation of the Group
english Presentation of the Group SZAG Investor Relations
Slide 2: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 3: Salzgitter Group at a glance: Steel and Technology
Salzgitter Group At a glance Steel and Technology Strip Steel Business Unit Mannesmann Business Unit Strip products Line pipes Steel Service Center Precision tubes Stainless tubes Plate / Section Steel Business Unit Trading Business Unit Stockholding trading Heavy plates International trading Sectio
Slide 4: Global Presence
Salzgitter Group Global Presence Strip Steel Plate / Section Steel Mannesmann Trading Technology SZAG Investor Relations Crude steel production 2020: 6.0 million tons; trading volume: 3.2 million tons; Among the top 3 producers of beverage filling and packaging machinery english 4
Slide 5: History
Salzgitter Group History Strip Steel BU 1998 Salzgitter AG Mannesmann BU Technology 1937 Construction 1989 Name change to Hüttenwerk Salzgitter 2017 Relaunch of 2007 Integration into SZAG (Part of Reichswerke) Preussag Stahl AG the brand presence First broad-flanged 1964 2000 Liquidation of 1992 - 1
Slide 6: Group structure and key data FY 2020
Salzgitter Group Group structure and key data FY 2020 Salzgitter AG Group External Sales cons.: € 7.1 billion Employees: 22,604 EBT: € -196 million Plate / Strip Steel Mannesmann Trading Technology Section Steel External Sales: External Sales: External Sales: External Sales: External Sales
Slide 7: External sales 2020 by customer industries
Salzgitter Group External sales 2020 by customer industries 14% 14% Other Vehicle construction 16% 13% Food and beverage industry Construction industry 5% 4% Mechanical engineering White goods, electrical equipment 5% 3% Re-rollers Energy sector and utilities 3% 23% Tubes producers Traders, Steel-Se
Slide 8: External sales 2020 by regions
Salzgitter Group External sales 2020 by regions 6% Other 7% Asia 11% Americas 46% Germany 5% Other Europe 25% Other EU SZAG Investor Relations Share of ex-Germany sales by consignee 54% english Sales by consignee (only from entities within the group of consolidated companies of Salzgitter Group, exc
Slide 9: Balance sheet
Salzgitter Group Balance sheet € million 8,618 8,618 8,237 8,237 Property, plant and Equity equipment and other 2,939 2,679 non-current assets 4,099 4,245 Pension 2,299 2,356 provisions Inventories 2,248 1,934 Other non-current 1,178 1,098 liabilities Cash and securities 751 621 Other current 2,225
Slide 10: Investments and Depreciation / Amortization
Salzgitter Group Salzgitter Group Investments and Depreciation / Amortization 193 15 49 44 593 411 352 342 342 338 340 348 287 295 2016 2017 2018 2019 2020 Investments1 Scheduled depreciation Unscheduled depreciation SZAG Investor Relations Focus on expansion investments english 1 Property, plant an
Slide 11: Shareholder structure and share turnover
Salzgitter Group Shareholder structure and share turnover Shareholder structure Daily turnover in thousand shares 600 Salzgitter AG Other shareholders 10.0% 15.9% 400 State of 26.5% Lower Saxony 15.1% Retail investors 200 32.5% Institutional investors 0 1Q 15 4Q 15 3Q 16 2Q 17 1Q 18 4Q 18 3Q 19 2Q 2
Slide 12: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 13: Key data per 2021/03/31
Key Data / Market Situation Key data per 2021/03/31 Q1 2021 Q1 2020 Δ Crude steel production kt 1,644.5 1,681.5 -37.0 External sales1 € million 2,094.1 2,108.3 -14.2 Earnings before tax € million 117.3 -31.4 148.7 Earnings after tax € million 76.6 -43.7 120.3 Earnings per share (undiluted) € 1.38 -0
Slide 14: Development of steel demand in customer segments and the EU
Key Data / Market Situation Development of steel demand in customer segments and the EU Construction Steel Tubes Actual / Forecast steel demand 20% 30% 24% Change versus previous year / previous year’s quarter 12% 20% 10% 5% 4% 4% 10% 8% 50% 4% 5% 10% 4% 0% 0% 1% 0% 0% 40% 38% -10% -10% -9% -8% -11%
Slide 15: Raw materials prices
Key Data / Market Situation Raw materials prices Iron ore Coking coal (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) 250 250 225 200 200 175 150 150 125 100 100 75 50 50 SZAG Investor Relations Diverging price development of the major raw materials english 15
Slide 16: Steel prices
Key Data / Market Situation Steel prices Spot prices Northern Europe Hot-rolled coil prices international 1,700 1,700 (€/t) (€/t) 1,500 1,500 1,300 1,300 1,100 1,100 900 900 700 700 500 500 300 300 Jan' 19 Jul' 19 Jan' 20 Jul' 20 Jan' 21 Jan' 19 Jul' 19 Jan' 20 Jul' 20 Jan' 21 HRC EXW Ruhr Plate EXW
Slide 17: EU steel imports
Key Data / Market Situation EU steel imports Rolled steel imports into the EU-28 (in Tt/month) 2,500 20% 2,000 16% 1,500 12% 1,000 8% 500 4% 0 0% 2014 2016 2017 2018 2019 2020 Q1 2021 China Ukraine Russia Turkey India South Korea Iran Brazil Other Market share imports SZAG Investor Relations High le
Slide 18: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 19: Strip Steel Business Unit
Business Units Strip Steel Business Unit Capabilities External sales by customer industry 2020 Integrated steel works with three blast 1% 6% furnaces Mechanical engineering Other Approx. 4.7 mt/year crude steel capacity 14% 37% Modern production plants Re-rollers Vehicle construction 1% High
Slide 20: Strip Steel Business Unit Q1 2021
Business Units Strip Steel Business Unit Q1 2021 Q1 2020 Δ External sales € million 606.4 566.2 40.2 Order bookings kt 1,187.6 1,193.1 -5.4 Order backlog1 kt 1,078.4 917.8 160.6 EBITDA € million 78.0 34.6 43.3 EBT € million 43.1 -6.8 49.9 Core workforce1 6,010 6,113 -103 SZAG Investor Relations Exte
Slide 21: Plate / Section Steel Business Unit
Business Units Plate / Section Steel Business Unit Capabilities External sales by customer industry 2020 Section steel: 4% 17% − Top-modern mini mill with two electric Vehicle construction arc furnaces Other 7% − Annual crude steel capacity 1 mt 5% Construction industry Mechanical engineering 9% −
Slide 22: Plate / Section Steel Business Unit Q1 2021
Business Units Plate / Section Steel Business Unit Q1 2021 Q1 2020 Δ External sales € million 214.4 194.5 19.9 Order bookings kt 525.1 583.8 -58.7 Order backlog1 kt 408.1 369.4 38.7 EBITDA € million -12.4 2.2 -14.6 EBT € million -21.0 -4.2 -16.9 Core workforce1 2,260 2,353 -93 SZAG Investor Relation
Slide 23: Mannesmann Business Unit
Business Units Mannesmann Business Unit Capabilities External sales by customer industry 2020 Own crude steel supply via 30% 21% participation in Hüttenwerke Krupp 43% Vehicle construction Mannesmann GmbH Other Plant for the production of semis for the 3% seamless tubes business Construction ind
Slide 24: Mannesmann Business Unit Q1 2021
Business Units Mannesmann Business Unit Q1 2021 Q1 2020 Δ External sales € million 256.6 295.9 -39.3 Order bookings € million 412.7 319.5 93.1 Order backlog1 € million 448.3 402.3 45.9 EBITDA € million 8.1 10.5 -2.4 EBT € million -7.5 -4.6 -2.9 Core workforce1 4,317 4,609 -292 SZAG Investor Relation
Slide 25: Trading Business Unit
Business Units Trading Business Unit Capabilities External sales by customer industry 2020 69 sites in 27 countries 8% 13% Mechanical engineering Other Own distribution network for steel products with warehousing sites in Europe 3% 5% Re-rollers Vehicle construction Processing group specialize
Slide 26: Trading Business Unit Q1 2021
Business Units Trading Business Unit Q1 2021 Q1 2020 Δ External sales € million 673.3 703.4 -30.1 Shipments kt 888.0 977.5 -89.5 EBITDA € million 48.1 5.8 42.3 EBT € million 44.7 0.3 44.4 Core workforce1 1,931 2,036 -105 SZAG Investor Relations Price increases combined with favorable procurement pri
Slide 27: Technology Business Unit Overview
Technology Business Unit Overview Capabilities External sales by customer industry 2020 17 Production plants worldwide 2% 1% 60 Service sites Vehicle White goods, > 90% of sales outside of Germany construction electrical equipment Core competences and products KHS: among the top 3 global sup
Slide 28: Technology Business Unit Q1 2021
Business Units Technology Business Unit Q1 2021 Q1 2020 Δ External sales € million 300.9 310.3 -9.4 Order bookings kt 358.0 337.3 20.7 Order backlog1 kt 734.3 739.3 -5.0 EBITDA € million 31.8 12.6 19.3 EBT € million 25.0 5.2 19.8 Core workforce1 5,353 5,568 -215 SZAG Investor Relations KHS Group exc
Slide 29: Industrial Participations / Consolidation
Business Units Industrial Participations / Consolidation Comprises activities that are not directly Key data FY 2020 allocated to a business unit Consolidated sales €m 148 Core competences and participations Earnings before taxes €m 21 Services: − Research and development for the Core workforce (1
Slide 30: Industrial Participations / Consolidation Q1 2021
Business Units Industrial Participations / Consolidation Q1 2021 Q1 2020 Δ External sales € million 42.5 38.0 4.5 EBITDA € million 49.2 -8.5 57.7 EBT € million 33.0 -21.3 54.4 Core workforce1 2,604 2,629 -25 SZAG Investor Relations Pre-tax profit includes a contribution of € 42.5 million from the pa
Slide 31: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 32: Challenge: CO2 emission allowances are continuously cut back
Strategy Challenge: CO2 emission allowances are continuously cut back Price forecast CO2 allowances 60 50 40 €/t CO2 30 20 10 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Price CO2 allowances Estimates price CO2 allowances SZAG Investor Relations Price for CO2 emission all
Slide 33: 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 34: SALCOS: Flexible hydrogen-based direct reduction
Strategy SALCOS® – Flexible hydrogen-based direct reduction Carbon dioxide → classic coal-based blast furnace route Blast furnace → innovative SALCOS-route (direct reduction) Carbon (C): Coke, coal Pig iron Crude steel Iron ore (Fe2O3) Basic oxygen converter (BOF) Water Iron ore (Fe2O3) H2O Carbon d
Slide 35: SALCOS: Gradual conversion to H2-based steel production
Strategy SALCOS® – Gradual conversion to a H2-based steel production Today Indicative: 2026 Indicative: 2030+ Indicative: until 2050 Status Quo Pilot phase Completion CO2-Emissions (8 m t/a) - 30% CO2 DRP - 50% CO2 - 83% bis - 95% CO2 (Stage I) (Stage II) Blast Furnaces EAF Electrolyzer Basic Oxygen
Slide 36: Our path towards a low-CO2, hydrogen-based steel production
Strategy Our path towards a low-CO2, hydrogen-based steel production Feasibility study µDRAL – Mikro-Direkt- Iron ore direct reduction plant in Wilhelmshaven ReduktionsAnLage First steam electrolysis on Construction of a MW scale at Salzgitter demonstration plant Flachstahl as from 2020 for direct r
Slide 37: 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 Hydrogen production with
Slide 38: µDRAL: Direct reduction plant in demonstration scale
Strategy µDRAL – Construction of a direct reduction plant in demonstration scale First iron ore direct reduction plant that can be flexibly operated with hydrogen and natural gas Testing of iron ore reduction with natural gas and/or hydrogen in variable proportions The direct reduced iron will
Slide 39: Green strip steel
Strategy Green strip steel – these days already… Since the end of 2020, Salzgitter Flachstahl GmbH is offering green strip steel products a defined range of various dimensions and grades The carbon footprint of these products is markedly below that of conventional products TÜV SÜD has confirme
Slide 40: 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 41: Agenda
1 Salzgitter Group 2 Key Data / Market Situation 3 Business Units 4 Strategy SZAG Investor Relations 5 Financials english
Slide 42: Income statement
Financials Income statement Income Statement (€ million) Q1 2021 Q1 2020 Sales 2,094.1 2,108.3 Increase/decrease in finished goods and work in process/other own work capitalized -18.2 -36.5 2,075.9 2,071.8 Other operating income 114.8 90.1 Cost of materials 1,333.1 1,378.8 Personnel expenses 424.3 4
Slide 43: Consolidated balance sheet: assets
Financials Consolidated balance sheet Assets (€ million) 31.03.2021 31.12.2020 Δ Non-current assets 4,205.8 4,244.5 -38.7 Intangible assets, property, plant and equipment 2,423.5 2,423.6 -0.1 Investment property 81.1 81.5 -0.4 Financial assets 55.1 54.6 0.5 Investments accounted for using the equity
Slide 44: Consolidated balance sheet: equity and liabilities
Financials Consolidated balance sheet Equity and liabilities (€ million) 31.03.2021 31.12.2020 Δ Equity 2,834.6 2,678.9 155.8 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 2,750.4 2,594.5 155.9 Other reserves 24.5 26.4 -1.9 Unappropriated retained earnings 0.0
Slide 45: Cash flow statement
Financials Cash flow statement (€ million) Q1 2021 Q1 2020 Δ Cash and cash equivalents at the start of the period 621.4 700.5 -79.1 Cash flow from operating activities 108.8 -142.8 251.6 Cash flow from investment activities -122.7 -94.7 -27.9 Cash flow from financial activities -34.9 3.6 -38.5 Chang
Slide 46: Business Units – Forecast
Financials Business Units – Forecast Strip Steel Plate / Section Steel Mannesmann Trading Technology fully utilized capacity plate: general trend reversal large-diameter pipes: exceptionally good earnings KHS Group: sustained good currently not foreseeable demand remains insufficient situa
Slide 47: Salzgitter Group – Guidance per June 15, 2021
Financials Salzgitter Group – Guidance per June 15, 2021 Given the better-than-recently-expected earnings situation, above all in the Trading Business Unit, we are raising our earnings forecast for the financial year 2021 once more – conditionally on the assumption of a stable market development in
Slide 48: Legal Note
Disclaimer Legal Note To the extent that our Internet pages contain statements oriented towards or related to the future, such statements are based on our current state of knowledge and the estimates based on such knowledge made by the management of Salzgitter AG. However, as is the case with any fo