Slide 1: Analyst Conference
SALZGITTER GROUP ANALYST CONFERENCE March 27, 2023
Slide 2: Occupational Safety – Significant Improvement vs. 2021
OCCUPATIONAL SAFETY – SIGNIFICANT IMPROVEMENT VS. 2021 Salzgitter Group LOST TIME INJURY FREQUENCY (Work-related accidents per 1 million work hours from the first day off work) 1 10 9.5 9 8 6.8 7 6 5 4 3 2 1 0 2021 2022 1 Data for Salzgitter Group, core workforce and training contracts, 2021 recordi
Slide 3: Key Data on Financial Year 2022
KEY DATA ON FINANCIAL YEAR 2022 Salzgitter Group FY 2022 FY 2021 Δ Crude steel production kt 6,109 6,749 -640 External sales1 € million 12,553 9,767 2,786 EBITDA € million 1,618 1,262 357 Earnings before tax € million 1,245 706 540 Earnings after tax € million 1,085 586 499 Earnings per share (undil
Slide 4: Agenda
AGENDA / 01 Strategy / 02 Economic Development of the business units / 03 Financials / 04 Guidance © 2023 Salzgitter AG / 44
Slide 5: Salzgitter AG 2030 Launched
01 SSTRATEGY trategy “SALZGITTER AG 2030” LAUNCHED CIRCULAR ECONOMY / Expansion of business in closed-loop flows of materials (Circular Economy) and securing of control points / Complete transformation to SALCOS® by 2033 at the latest / Alignment of the product portfolio towards growing circular / s
Slide 6: Scorecard – Making Targets Measurable
01 SSTRATEGY trategy SCORECARD – MAKING TARGETS MEASURABLE Strategic direction KPI Unit Target 2025 Target 2030 Progress % > 25 > 50 Expansion of scrap recycling Scrap Strategy mt p. a. 2.5 3 CO2 reduction (Scope 1 & 2) % CO2 > -30* > -50 CIRCULAR ECONOMY Complete focus on low CO2 steel production -
Slide 7: SALCOS – Accelerated Implementation of the Strategy
01 SSALCOS trategy ® – ACCELERATED IMPLEMENTATION OF THE STRATEGY / Release of the total budget for the first stage of SALCOS® by the Supervisory Board (March 23, 2023) / Total investment volume for the first stage of SALCOS® of € 2.2-2.4 billion / Successful establishment of market premiums: Model
Slide 8: SALCOS – Transformation Has Begun
01 SSALCOS trategy ® – TRANSFORMATION HAS BEGUN DRI plant Integration of new facilities into the existing steel works Electric arc furnace with support facilities Water purification Work on the construction site Area for assembling the DRI plant components started A NEW Interim storage for directly
Slide 9: Salzgitter AG – Enabler of the Energy Transition
01 SSALZGITTER trategy AG – ENABLER OF THE ENERGY TRANSITION / Transformation of the energy supply in the focus of political efforts in Europe / Prerequisite: Partners from industry, policy makers, infrastructure and logistics work hand in hand / LNG showcase projects: Wilhelmshaven Anschlussleitung
Slide 10: Portfolio Management – First Successful Steps
01 SPORTFOLIO trategy MANAGEMENT – FIRST SUCCESSFUL STEPS / Sale of Salzgitter Bauelemente GmbH to FALK Bouwsystemen (The Netherlands) per January 1, 2023 / Takeover allows for markedly better strategic growth options / Acquisition of Must GmbH per February 15, 2023 / Must is specialized in the trad
Slide 11: HDG Line – Strengthening of the Premium Segment
01 SHDG LINE 3 – STRENGTHENING OF THE PREMIUM SEGMENT trategy / Capital expenditure ~ € 200 million / Annual capacity: 500,000 tons / Focus on high and highest strength steel grades / Strengthening of the premium segment for automotive and household appliances sectors / Very good customer response /
Slide 12: Agenda
AGENDA / 01 Strategy / 02 Economic Development of the business units / 03 Financials / 04 Guidance © 2023 Salzgitter AG / 12 12
Slide 13: Steel Production – Marked Increase of Earnings
02 Econ STEEL PRODUCTION – MARKED INCREASE OF EARNINGS omic Devel opmen t of th e b usin e ss un its KEY DATA REVIEW AND CURRENT SITUATION / Sharp rise of steel prices following the start of the war; FY 2022 FY 2021 Δ from mid-Q2 2022 onwards marked decrease due to External sales €m 4,263 3,127 1,13
Slide 14: Steel Processing – Successful Plate Business
02 Econ STEEL PROCESSING – SUCCESSFUL PLATE BUSINESS omic Devel opmen t of th e b usin e ss un its KEY DATA REVIEW AND CURRENT SITUATION / Plate: Demand and plate prices at record levels at the FY 2022 FY 2021 Δ beginning of 2022; price decreases afterwards as a result of high inventory levels Exter
Slide 15: Trading – Very Pleasing Result
02 Econ TRADING – VERY PLEASING RESULT omic Devel opmen t of th e b usin e ss un its KEY DATA REVIEW AND CURRENT SITUATION / Historically strong H1 was followed by demand cooling off FY 2022 FY 2021 Δ at the end of Q2 2022 External sales €m 4,581 3,603 978 / Volumes and prices decreased until year-e
Slide 16: Technology – Braved Challenging Market Environment
02 Econ TECHNOLOGY – BRAVED CHALLENGING MARKET ENVIRONMENT omic Devel opmen t of th e b usin e ss un its KEY DATA REVIEW AND CURRENT SITUATION / Record order intake of the business unit despite contrary FY 2022 FY 2021 Δ trend of the industry External sales €m 1,430 1,360 69 / Resolute implementatio
Slide 17: Agenda
AGENDA / 01 Strategy / 02 Economic Development of the business units / 03 Financials / 04 Guidance © 2023 Salzgitter AG / 17 17
Slide 18: Income Statement
03 FINCOME inancials STATEMENT Income Statement (€ million) FY 2022 FY 2021 Δ Sales 12,553.3 9,767.4 2,785.8 Increase/decrease in finished goods and work in process/other own work 249.9 522.9 -273.0 capitalized 12,803.2 10,290.4 2,512.8 Other operating income 984.8 548.5 436.3 Cost of materials 8,63
Slide 19: Consolidated Balance Sheet – Assets
03 FCONSOLIDATED inancials BALANCE SHEET Assets (€ million) 12/31/2022 12/31/2021 Δ Non-current assets 4,510.0 4,250.1 259.9 Intangible assets, property, plant and equipment 2,416.5 2,267.8 148.7 Investment property 78.1 79.5 -1.5 Financial assets 38.3 51.4 -13.1 Investments accounted for using the
Slide 20: Consolidated Balance Sheet – Equity and Liabilities
03 FCONSOLIDATED inancials BALANCE SHEET Equity and liabilities (€ million) 12/31/2022 12/31/2021 Δ Equity 4,850.4 3,357.0 1,493.4 Subscribed capital 161.6 161.6 0.0 Capital reserve 257.0 257.0 0.0 Retained earnings 4,731.2 3,252.3 1,478.9 Unappropriated retained earnings 60.1 45.1 15.0 Treasury sha
Slide 21: Cash Flow Statement
03 FCASH FLOW STATEMENT inancials (€ million) FY 2022 FY 2021 Δ Cash and cash equivalents at the start of the period 741.8 621.4 120.4 Cash flow from operating activities 596.5 329.4 267.1 Cash flow from investment activities -367.7 -366.6 -1.0 Cash flow from financial activities 11.3 146.3 -135.0 C
Slide 22: Working Capital – Reduction Continues in Q4 22
03 FWORKING inancials CAPITAL – REDUCTION CONTINUES IN Q4 2022 WORKING CAPITAL (€ million) +1,130 -358 4,500 3,954 3,902 4,000 3,596 3,438 3,500 3,000 2,824 2,500 2,094 2,000 1,500 1,000 500 0 Q4 2020 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Working Capital peaks in Q2 2022 – reduction by € 358 milli
Slide 23: Investments and Depreciation
03 FINVESTMENTS inancials AND DEPRECIATION (€ million) 593 475 411 193 367 208 338 44 20 340 348 300 295 286 2018 2019 2020 2021 2022 Scheduled Unscheduled Investments1 depreciation depreciation 1 Property, plant and equipment and intangible assets, excluding financial assets Focus on supplementary
Slide 24: Earnings Improvement Through Cost Savings Program
03 FEARNINGS inancials IMPROVEMENT THROUGH COST SAVINGS PROGRAM FULL-YEAR EFFECT (€ million) 250 200 41 191 37 150 61 100 43 50 10 0 2022 2023e 2024e 2025e 2026e 2022-2026 cumulative More than € 190 million in effects from measures identified © 2023 Salzgitter AG / 24
Slide 25: Highest Proposed Dividend Since 2008
03 FHIGHEST inancials PROPOSED DIVIDEND SINCE 2008 Dividend (€/share) 1.20 1.00 1.00 0.80 0.75 0.60 0.55 0.45 0.40 0.30 0.25 0.20 0.20 0.20 0.00 0.00 0.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e Shareholders participate in the company‘s success © 2023 Salzgitter AG / 25
Slide 26: Agenda
AGENDA / 01 Strategy / 02 Economic Development of the business units / 03 Financials / 04 Guidance © 2023 Salzgitter AG / 26
Slide 27: Raw Material and Energy Prices – Remain Volatile
04 Guidance RAW MATERIAL AND ENERGY PRICES – REMAIN VOLATILE RAW MATERIAL PRICES (US$/t) ENERGY PRICES (€/MWh) IRON ORE COKING COAL ELECTRICITY NATURAL GAS (62% Fe CFR C h i n a , U S $ / d m t ) (FOB Australia, U S $ / t ) (Futures market front year EEX. €/MWh) (Area THE, EEX Day-Ahead €/MWh Hs) 25
Slide 28: Steel Prices – With Upward Trend Again
04 Guidance STEEL PRICES –WITH UPWARD TREND AGAIN SPOT PRICES NORTHERN EUROPE (€/t) HOT-ROLLED COIL PRICES INTERNATIONAL (€/t) 1,900 1,900 1,700 1,700 1,500 1,500 1,300 1,300 1,100 1,100 900 900 700 700 500 500 300 300 Jan' 21 Jul' 21 Jan' 22 Jul' 22 Jan' 23 Jan' 21 Jul' 21 Jan' 22 Jul' 22 Jan' 23 H
Slide 29: Management Guidance
04 Guidance MANAGEMENT GUIDANCE Against the backdrop of generally healthy demand at the start of the year, and assuming no further escalation in political and economic circumstances, we anticipate the following for the Salzgitter Group in the financial year 2023 / sales in the region of € 13 billion
Slide 30: Analyst Conference FY 2022 – At a Glance
ANALYST CONFERENCE FY 2022 – AT A GLANCE Recap New “Salzgitter AG 2030” strategy launched and records first successes SALCOS®: Accelerated implementation until 2033 adopted – own funds for the first stage released New hot-dip galvanizing line supports qualitative growth Second-best operating result
Slide 31: Disclaimer
00 DISCLAIMER Salzgitter AG LEGAL NOTE COPYRIGHTS To the extent that our Internet pages contain statements oriented towards or related to This data file and the data contained on these pages (including, among others, texts, the future, such statements are based on our current state of knowledge and
Slide 32: Salzgitter AG – People, Steel and Technology
SALZGITTERAG People, Steel and Technology