Salzgitter Ag · XETR:SZG
Salzgitter — H1 2019 Earnings Presentation
31 slides from Salzgitter's earnings presentation, Aug 12, 2019
Slide 1: Analyst Conference First Half 2019
Analyst Conference First Half 2019 Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board Burkhard Becker, Chief Financial Officer SZAG Investor Relations Frankfurt, August 12, 2019 english
Slide 2: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Strategy SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2019 5 Guidance english
Slide 3: Presentable development in a difficult environment
Key Data / Market Situation Overview Presentable development in a difficult environment Market Weakening sales prices and continuing high import levels impact steel market Significant uncertainty from trade policy measures impair planning capability and international projects Volatile raw mate
Slide 4: Key data
Key Data / Market Situation Key data H1 2019 H1 2018 Δ Q2 2019 Q1 2019 Crude steel production kt 3,412.1 3,528.9 -116.8 1,672.3 1,739.8 External sales1 € million 4,526.2 4,617.1 -90.9 2,232.4 2,293.8 Earnings before tax € million 145.3 198.6 -53.3 19.4 125.9 Earnings after tax € million 96.4 135.4 -
Slide 5: 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. 2017 = 100) 150 140 130 120 110 100 90 80 Jan 17 Apr 17 Jul 17 Oct 17 Jan 18 Apr 18 Jul 18 Oct 18 Jan 19 Apr 19 Construction Mechanical engineering Metal processing Aut
Slide 6: Raw materials prices
Key Data / Market Situation Raw materials prices Iron ore Coking coal (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) 140 350 130 120 300 110 250 100 90 200 80 70 150 60 50 100 SZAG Investor Relations Iron ore: dramatic price surge in the first half-year; recently rapid decrease Coking coal: glob
Slide 7: 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 08/19 08/19 600 600 500 500 400 400 300 300 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 HRC EXW Ruhr Plate EXW Ruhr Me
Slide 8: EU import quotas for steel products
Key Data / Market Situation EU import quotas for steel products Safeguard quotas are already based on record levels of imports Developing countries are exempt from the measures even though their import volumes were included in the quota calculation Quota increases in February and July of 2019
Slide 9: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Strategy SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2019 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 2,500 109.7 1,175 100 2,383 2,282 1,000 2,000 75 € million € million 800 kt 1,500 600 60.3 50 1,000 400 25 500 200 0 0 0 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 SZAG Investor Relation
Slide 11: Business Units: Plate / Section Steel
Business Units Plate / Section Steel Order intake Consolidated sales Earnings before taxes 1,400 600 25 554 1,200 500 1,165 20 1,000 1,035 442 400 15 € million € million 800 kt 300 600 22.0 10 200 400 5 100 200 0.6 0 0 0 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 SZAG Investor Relations Profits
Slide 12: Business Units: Mannesmann
Business Units Mannesmann Order intake* Consolidated sales* Earnings before taxes 900 700 15 800 600 767 700 582 563 686 500 600 10 € million € million € million 500 400 400 300 12.3 300 5 200 9.0 200 100 100 0 0 0 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 * excluding EUROPIPE-Group SZAG Inves
Slide 13: Business Units: Trading
Business Units Trading Shipments Consolidated sales Earnings before taxes 2,500 1,800 30 1,600 2,247 1,549 1,578 25 2,000 2,091 25.0 1,400 1,200 20 1,500 € million € million 1,000 kt 15 800 1,000 600 10 400 500 5 200 4.1 0 0 0 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 SZAG Investor Relations P
Slide 14: Business Units: Technology
Business Units Technology Order intake Consolidated sales Earnings before taxes 800 700 25 657 700 600 682 610 20 20.5 600 614 500 500 15 16.1 € million € million € million 400 400 300 10 300 200 200 5 100 100 0 0 0 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Earnings before special effects SZAG
Slide 15: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Strategy SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2019 5 Guidance english
Slide 16: Strategy: Update CO2 I
Strategy Update CO2 I Price forecast CO2 allowances 50 Third trading period Fourth trading period 45 40 35 30 €/t CO2 25 20 Insider information from June 14, 2019 15 “[…] The market value of all CO2 allowances acquired as a precautionary measure exceeds the figure 10 accounted for in the balance she
Slide 17: Strategy: Update CO2 II – Salzgitter Low CO2 Steelmaking
Strategy Update CO2 II – Salzgitter Low CO2 Steelmaking April 3, 2019 Currently Memorandum of Understanding with Tenova on the mutual Discussions with relevant stakeholders about cooperation for the realization of SALCOS ® the creation of suitable framework conditions SZAG Investor Relations We affi
Slide 18: Strategy: 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: 2020 Salz
Slide 19: Strategy: Update programs of measures
Strategy Update programs of measures FitStructure SZAG SZAG 2021 Growth Programs € million earnings improvement potential € million additional profit contribution 90 180 80 160 70 140 ~50 ~30 60 120 50 100 ~60 40 80 ~25 30 60 20 40 ~45 10 ~25 20 ~20 0 0 2019 2020 2021 ff. 2019 2020 2021 2022 ff. SZA
Slide 20: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Strategy SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2019 5 Guidance english
Slide 21: Pleasing result and continuingly high financial solidity
Financial Accounts First Half 2019 Overview Pleasing result and continuingly high financial solidity € 145.3 million pre-tax profit in the first half of 2019 Second quarter also with positive earnings Programs of measures and Aurubis contribution counter market-driven burdens Still solid equ
Slide 22: Group Result
Financial Accounts First Half 2019 Group Result € million 400 300 -176.4 200 353.7 -32.0 -48.9 100 177.3 145.3 96.4 0 EBITDA Depr./Amort. EBIT Net interest EBT Taxes EAT SZAG Investor Relations Depreciation at the previous year’s level; slightly higher tax rate due to revaluation of deferred tax ass
Slide 23: Earnings bridge Group
Financial Accounts First Half 2019 Earnings bridge Group € million SZAG Investor Relations Partial compensation of significant market-driven burdens english 23
Slide 24: Income statement
Financial Accounts First Half 2019 Income statement Income Statement (€ million) H1 2019 H1 2018 Δ Sales 4,526.2 4,617.1 -90.9 Increase/decrease in finished goods and work in process/other own 1.7 29.7 -28.0 work capitalized 4,527.9 4,646.8 -118.9 Other operating income 97.0 147.2 -50.2 Cost of mate
Slide 25: Consolidated balance sheet: Assets
Financial Accounts First Half 2019 Consolidated balance sheet Assets (€ million) 2019/06/30 2018/12/31 Δ Non-current assets 4,118.8 3,835.9 282.9 Intangible assets, property, plant and equipment 2,457.2 2,339.9 117.2 Investment property 82.7 83.5 -0.7 Financial assets 71.6 75.6 -4.0 Investments acco
Slide 26: Consolidated balance sheet: Equity and liabilities
Financial Accounts First Half 2019 Consolidated balance sheet Equity and liabilities (€ million) 2019/06/30 2018/12/31 Δ Equity 3,229.5 3,332.1 -102.6 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 3,096.3 3,181.0 -84.6 Other reserves 72.2 60.0 12.2 Unappropriat
Slide 27: Cash flow statement
Financial Accounts First Half 2019 Cash flow statement € million 800 1.4 600 -25.9 408.7 400 -276.6 663.2 555.6 200 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 activities
Slide 28: Agenda
Prof. Dr.-Ing. Heinz Jörg Fuhrmann 1 Key Data / Market Situation 2 Business Units 3 Strategy SZAG 2021 SZAG Investor Relations Burkhard Becker 4 Financial Accounts First Half 2019 5 Guidance english
Slide 29: Business Units – Forecast 2019
Guidance Business Units – Forecast 2019 Strip Steel Plate / Section Steel Mannesmann Trading Technology continuing high import plate: persisting general large-diameter pipe mills: prospects in international KHS Group: selective order pressure on the European weakness of the market unsatisf
Slide 30: Salzgitter Group – Guidance
Guidance Salzgitter Group – Guidance Salzgitter AG affirms its guidance for the financial year 2019 and anticipates: a slight decrease in sales compared with the previous year to above the € 9.0 billion mark, a pre-tax profit of between € 125 million and € 175 million and a return on capital e
Slide 31: Analyst Conference First Half 2019
Analyst Conference First Half 2019 Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive Board Burkhard Becker, Chief Financial Officer SZAG Investor Relations Frankfurt, August 12, 2019 english