Salzgitter Ag · XETR:SZG
Salzgitter — dbAccess Berlin Conference 2019
20 slides from Salzgitter's conference presentation, Jun 5, 2019
Slide 1: dbAccess Berlin Conference
dbAccess Berlin Conference Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board SZAG Investor Relations Berlin, June 5, 2019
Slide 2: Salzgitter Group, Market Situation, Strategy
1 Salzgitter Group 2 Market Situation 3 Strategy SZAG Investor Relations english
Slide 3: Salzgitter Group at a glance
Salzgitter Group At a glance Key data 2018 Steel and Technology External sales: € 9.3 billion EBT: € 347 million – best earnings of the past ten years Earnings improvement potential: Strip Steel Business Unit Mannesmann Business Unit € 150 million p.a. realized for the Strip products Line pipe
Slide 4: External sales 2018 by customer industries
Salzgitter Group External sales 2018 by customer industries 13% 15% Other Vehicle construction 12% 12% Food and beverage industry Construction industry 6% 4% Mechanical engineering White goods, electrical equipment 6% 3% Re-rollers Energy sector and utilities 5% 24% Tubes producers Traders, Steel-Se
Slide 5: Key data per 2019/03/31
Annual General Meeting of Shareholders on May 23, 2019 Key data per 2019/03/31 Crude steel production [kt] Consolidated sales [€ million] EBT [€ million] 1,774 1,740 2,307 2,294 126 96 -34 -14 +30 (-2%) (-1%) (+31%) Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 ROCE [%] Net financial position [€ m
Slide 6: Earnings development of business units
Salzgitter Group Earnings development of business units Q1 2019 Q1 2018 Earnings before taxes € million 125.9 95.9 Strip Steel € million 46.3 62.5 Plate / Section Steel € million 1.7 9.3 Mannesmann € million 8.4 1.6 Trading € million 3.0 13.8 Technology € million 11.8 11.2 Industrial Participation /
Slide 7: Salzgitter Group – Guidance
Salzgitter Group Salzgitter Group – Guidance Salzgitter AG affirmes its guidance for the financial year 2019. We continue to anticipate: a slight increase in sales to above the € 9.5 billion mark, a pre-tax profit of between € 125 million and € 175 million and a return on capital employed (ROC
Slide 8: Market Situation
1 Salzgitter Group 2 Market Situation 3 Strategy SZAG Investor Relations english
Slide 9: Environment: Economic development in the European Union
Market Situation Environment: Economic development in the European Union 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 2019 Germany GB France Italy Spain SZAG Investor Relations The trend of
Slide 10: EU: Steel imports as collateral damage
Market Situation EU: Steel imports as collateral damage Import situation EU (in 1,000 t/month) Diversionary effects due to US tariffs (in 1,000 t/month) Imports into the EU vs. USA in cumulative annual comparison 2018/2017 2,500 4,500 2,000 +60 % 3,500 2,301 2,879 2,707 2,500 1,433 1,500 798 1,500 3
Slide 11: Raw materials prices
Market Situation Raw materials prices Iron ore Coking coal (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) 110 350 100 300 90 250 80 200 70 150 60 50 100 Average 2017 Average 2018 SZAG Investor Relations Volatile raw materials markets harbor risks, but also opportunities; 2019: price levels – esp
Slide 12: Steel prices…
Market Situation Steel prices… Spot prices Northern Europe Hot-rolled coil prices international (€/t) 900 (€/t) 900 800 800 700 700 05/19 05/19 600 600 500 500 400 400 Turning point !? 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 se
Slide 13: Strategy
1 Salzgitter Group 2 Market Situation 3 Strategy SZAG Investor Relations english
Slide 14: Review: Structural measures 2012-2018
Strategy Review Structural measures 2012-2018 “Salzgitter AG 2015” Other programs (since end of 2016 combined under FitStructure SZAG) 2012 – 2016 € 260 million p.a. € 350 million p.a. > € 600 million € p.a. earnings improvement potential realized SZAG Investor Relations Initial emphasis on restruct
Slide 15: "Salzgitter AG 2021" growth strategy
Strategy “Salzgitter AG 2021” growth strategy Goals Stipulations Status implementation Steel-related Less steel-related Rolled steel production and parts Development of the portfolio towards of the tubes production can only high- and highest-strength grades: to grow qualitatively, not this large-s
Slide 16: Investments into the development of the Group
Strategy Investments into the development of the Group Salzgitter Flachstahl Hot-Dip Galvanizing Line 3 Salzgitter Flachstahl Construction of the pulverized coal Mannesmann DESMA Schuhmaschinen injection plant Precision Tubes „Factory of the Future“ Expansion plant in Mexico Commissioning 2015 2017
Slide 17: What we intend in the coming years – effects
Strategy What we intend in the coming years – effects FitStructure SZAG SZAG 2021 Growth Programs € million earnings improvement potential € million additional profit contribution 80 200 70 180 ~25 160 60 140 50 ~100 120 40 100 ~25 30 80 60 ~40 20 40 10 ~25 20 ~40 0 0 2019 2020 2021 ff. 2019 2020 20
Slide 18: SALCOS – Salzgitter Low CO2 Steelmaking
Strategy – SAlzgitter Low CO2 Steelmaking Use of hydrogen (H2) instead of carbon (C) for iron ore reduction. Use of already established Standard DRP (direct reduction with natural gas) and novel (hydrogen production and use) technologies Integration into existing and optimized integrated iron-an
Slide 19: Conclusion
Strategy Conclusion We are looking forward to the future – with competitive structures and processes! SZAG Investor Relations english 19
Slide 20: dbAccess Berlin Conference
dbAccess Berlin Conference Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board SZAG Investor Relations Berlin, June 5, 2019