Salzgitter Ag · XETR:SZG
Salzgitter — Baader Investment Conference 2018
24 slides from Salzgitter's conference presentation, Sep 26, 2018
Slide 1: Baader Investment Conference
Baader Investment Conference Markus Heidler, Head of Investor Relations SZAG Investor Relations Munich, September 26, 2018
Slide 2: Agenda
1 Salzgitter Group 2 Market Situation 3 H1-Results and Guidance 4 Strategy SZAG Investor Relations english
Slide 3: Salzgitter Group Global Presence
Salzgitter Group Global Presence Strip Steel Mannesmann Trading Technology Plate / Section Steel SZAG Investor Relations Crude steel production 2017: 7.0 million tons; trading volume: 4.7 million tons; Among the top 3 producers of beverage filling and packaging machinery english 3
Slide 4: Diversified product portfolio
Salzgitter Group Diversified product portfolio Steel and Technology Strip products Line pipes Steel Service Center Precision tubes Heavy plates Stainless tubes Sections Stockholding trading Engineering services International trading Injection molding machinery Beverage filling plants SZAG Investor R
Slide 5: External sales 2017 by customer industries
Salzgitter Group External sales 2017 by customer industries 13% 15% Other Vehicle construction 13% 12% Food and beverage industry Construction industry 4% 4% Mechanical engineering White goods, electrical equipment 5% 5% Re-rollers Energy sector and utilities 6% 23% Tubes producers Traders, Steel-Se
Slide 6: External sales 2017 by regions
Salzgitter Group External sales 2017 by regions 6% Other 7% Asia 12% Americas 48% Germany 4% Other Europe 23% Other EU SZAG Investor Relations Share of Germany and Europe sales by consignee 75% english Sales by consignee (only from entities within the group of consolidated companies of Salzgitter Gr
Slide 7: Agenda: Market Situation
1 Salzgitter Group 2 Market Situation 3 H1-Results and Guidance 4 Strategy SZAG Investor Relations english
Slide 8: Industrial production as an indicator for steel demand
Market Situation Industrial production as an indicator for the overall steel demand 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 Germany GB France Italy Spain SZAG Investor Relations The tr
Slide 9: Raw materials
Market Situation Raw materials Iron ore Coking coal Steel scrap (62% Fe CFR China, US$/dmt) (FOB Australia, US$/t) (grade 2/8, €/t) 100 350 300 90 300 280 80 250 260 70 200 240 60 150 220 50 100 200 SZAG Investor Relations Raw materials markets marked by high volatility english 9
Slide 10: Update international steel trade
Market Situation Update international steel trade International measures affecting the European Union Reaction of the European Union USA: Protective tariffs against numerous states cover June 1, 2018: WTO complaint filed against the Section almost all product groups 232 tariffs of the United Sta
Slide 11: EU import situation for finished steel imports
Market Situation Update international steel trade EU 28 import situation for finished steel imports 30 26 10 9 14 8 8 -1 -10 1 -12 2331 2265 2338 2451 2359 2071 2046 1881 1890 1866 1922 in 000 monthly metric tonnes % variation same period previous year SZAG Investor Relations Imports stable on high
Slide 12: Update international steel trade: safeguard investigation
Market Situation Update international steel trade Products coverage: all 28 products categories included in the EU Safeguard investigation SZAG Investor Relations Trade deflection is happening! english Source: Eurofer hearing presentation; based on: USITC, Eurostat/Comext, US August 2018 estimated o
Slide 13: Steel prices
Market Situation Steel prices Spot prices Northern Europe Hot-rolled coil prices international (€/t) 900 (€/t) 900 800 800 700 700 09/18 09/18 600 600 500 500 400 400 300 300 Jan 17 Jul 17 Jan 18 Jul 18 Jan 17 Jul 17 Jan 18 Jul 18 HRC EXW Ruhr Plate EXW Ruhr Medium sections Northern Europe EXW Ruhr
Slide 14: Agenda: H1-Results and Guidance
1 Salzgitter Group 2 Market Situation 3 H1-Results and Guidance 4 Strategy SZAG Investor Relations english
Slide 15: Key data per 2018/06/30
H1-Results and Guidance Key data per 2018/06/30 Crude steel production [kt] Consolidated sales [€ million] EBT [€ million] 3.528 4.616 4.617 3.415 199 +114 +1 +99 (+3%) (+0%) 100 (+98%) H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 ROCE [%] Net financial position [€ million] Core workforce [per 06
Slide 16: Earnings development of business units in H1 2018
H1-Results and Guidance Earnings development of business units in H1 2018 H1 2018 H1 2017 Δ Earnings before taxes € million 198.6 100.2 + 98.4 Strip Steel € million 109.7 94.2 + 15.6 Plate / Section Steel € million 22.0 5.7 - 16.4 Mannesmann € million 12.3 -2.7 + 15.0 Trading € million 25.0 34.6 - 9
Slide 17: Guidance from September 19, 2018
H1-Results and Guidance Salzgitter Group – Guidance from September 19, 2018 We now anticipate: a marginal increase in sales to above € 9 billion, a pre-tax profit of between € 300 million and € 350 million and a marginally higher return on capital employed of between 9% and 11% compared with t
Slide 18: Agenda: Strategy
1 Salzgitter Group 2 Market Situation 3 H1-Results and Guidance 4 Strategy SZAG Investor Relations english
Slide 19: What we intend in the coming years
Strategy What we intend in the coming years Restructuring – 2018-2021 additional € 140 million p.a. earnings improvement potential FitStructure Focus on Mannesmann and Technology business units Growth – around € 240 million p.a. additive earnings contribution Growth in target segments by shiftin
Slide 20: Distribution of effects
Strategy Distribution of effects FitStructure SZAG SZAG 2021 Growth Programs € million earnings improvement potential € million additional profit contribution 250 140 120 ~30 200 100 ~90 150 80 ~50 60 ~50 100 40 ~50 50 ~60 20 ~40 0 0 2018 2019 2020 ff. 2018 2019 2020 2021 SZAG Investor Relations All
Slide 21: Acquisition of French stainless steel tube producer SOTEP
Strategy May 22, 2018: Acquisition of French stainless steel tube producer SOTEP and Key data of the acquisition Landing gear Airbus A320 ceo/neo Founding year 1980 Headquarters Issoudun, France Sales (2017) > € 10 million SAM 146 engine Sukhoi Superjet 100 Employees 65 Cold-finished seaml
Slide 22: Salzgitter Group launches bidding platform e-AUCTION
Strategy May 23, 2018: Salzgitter Group launches bidding platform e-AUCTION SZAG Investor Relations Steel trading takes another step in the direction of digitalization english 22
Slide 23: Insider information pursuant to Article 17 MAR
Strategy July 16, 2018: Insider information pursuant to Article 17 MAR Today, the Executive Board of Salzgitter AG has decided to submit an offer to acquire production facilities in Dudelange (Luxembourg) and Liege (Belgium) in the context of the divestment process currently conducted by ArcelorMitt
Slide 24: SZAG Investor Relations
english SZAG Investor Relations