Embed Size (px)
Citation preview
SZAG
Inve
stor
Rel
atio
ns
Presentation of the Group
engl
ish
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Business Units4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Global Presence
3
Salzgitter Group
Strip SteelPlate / Section Steel
Mannesmann
Trading
Crude steel production 2019: 6.6 million tons; trading volume: 3.8 million tons;Among the top 3 producers of beverage filling and packaging machinery
engl
ish
Technology
SZAG
Inve
stor
Rel
atio
ns
Diversified product portfolioSalzgitter Group
Steel and Technology
Stainless tubes
Stockholding trading
International trading
Strip products
Steel Service Center
Heavy plates
Sections
Engineering services
Injection molding machinery Beverage filling plants
Line pipes
Precision tubes
4
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Group structure and key data FY 2019Salzgitter Group
Salzgitter AG Group
External Sales cons.: € 8.5 billion EBT: € -253 million
Employees: 23,354
External Sales:€ 2.2 billion EBT:
€ -42.8 million Employees:
6,090
Strip Steel
External Sales:€ 0.8 billion EBT: € -124.0 million Employees:
2,352
Plate / Section Steel
External Sales:€ 1.1 billion EBT:
€ -41.5 million Employees:
4,643
Mannesmann
External Sales:€ 1.4 billion EBT:
€ 32.7 million Employees:
5,557
Technology
External Sales:€ 2.8 billion EBT:
€ 31.0 million Employees:
2,066
Trading
5All data about employees as per 12/31
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Salzgitter AG
Salzgitter Mannesmann / Salzgitter Klöckner-Werke
Strip Steel BU
Plate / Section Steel BU
MannesmannBU
TradingBU
TechnologyBU
Salzgitter Flachstahl
Ilsenburger Grobblech Mannesmannröhren-Werke Salzgitter Mannesmann
Handel KHS
Salzgitter Mannesmann Grobblech Europipe Salzgitter Mannesmann
StahlhandelSalzgitter Europlatinen
Peiner Träger
Mannesmann Grossrohr
Salzgitter Mannesmann International
KHS Corpoplast
Salzgitter Bauelemente
DEUMU Deutsche Erz- und Metall-Union
Mannesmann Line Pipe
Universal Eisen und Stahl
Mannesmann Precision Tubes
Salzgitter Mannesmann Stahlservice
Mannesmann Stainless Tubes
Hüttenwerke Krupp Mannesmann
BorusanMannesmann Boru
50%
30%
23%
Industrial Participations / Consolidation
Verkehrsbetriebe Peine-Salzgitter
Hansaport
Gesis Gesellschaft für Informationssysteme
Salzgitter Automotive Engineering
Telcat
Aurubis
Salzgitter Hydroforming
Salzgitter Mannesmann Forschung
51%
30%
Klöckner DESMA Elastomertechnik
DESMA Schuhmaschinen
6
BU = Business UnitAs of December 2019
Group structureSalzgitter Group
engl
ish
SZAG
Inve
stor
Rel
atio
ns
3%Tubes producers
12%Other
15%Food and beverage industry
6%Mechanical engineering
5%Re-rollers
3%Energy sector and utilities
15%Vehicle construction
24%Traders, Steel-Service-Centers
13%Construction industry
4%White goods,
electrical equipment
External sales 2019 by customer industriesSalzgitter Group
Broad customer base
7Only from entities within the group of consolidated companies of Salzgitter Group, excluding EUROPIPE Group
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Share of ex-Germany sales by consignee 54%
External sales 2019 by regionsSalzgitter Group
5%Other
8%Asia
12%Americas
3%Other Europe
26%Other EU
46%Germany
8Sales by consignee (only from entities within the group of consolidated companies of Salzgitter Group, excluding EUROPIPE-Group)
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Result of Salzgitter Group impacted by a total of € -396.0* million in special effects
*) € -62,3 million restructuring provisions, € -192,9 million impairment as awell as € -140,8 Mio. € other special effects (cartell fine)
Key data per 2019/12/31
9
Salzgitter Group
FY 2019 FY 2018 Δ
Crude steel production kt 6,613.4 7,039.4 -426.0
Consolidated Sales € million 8,547.3 9,278.2 -730.8
Earnings before tax € million -253.3 347.3 -600.6
Earnings after tax € million -237.3 277.7 -515.0
Earnings per share (undiluted) € -4.46 5.06 -9.52
ROCE % -5.8 10.3 -16.1
Core workforce (12/31) 23,354 23,523 -169
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Balance sheetAnnual Accounts Financial Year 2019
Property, plant and equipment and other
non-current assets
Inventories
Cash and securities
Other current assets
Equity
Pension provisions
Other non-currentliabilities
Current liabilities
€ million
10
engl
ish
Continuing sound financial basis
FY 2018 FY 2019 FY 2019 FY 2018
1,971 1,5192,225 2,389
623751
1,098 760
2,3282,248
2,356 2,276
3,836 4,0992,939 3,332
8,6188,757 8,618 8,757
SZAG
Inve
stor
Rel
atio
ns
Focus on expansion investments
Salzgitter Group Investments and Depreciation / Amortization
11
Salzgitter Group
Investments1 Scheduled depreciation Unscheduled depreciation
1 Property, plant and equipment and intangible assets, excluding financial assets
engl
ish
411340 352 342
287342 338 340
593
348
15 49 44
193
2015 2016 2017 2018 2019
SZAG
Inve
stor
Rel
atio
ns
History
12
Salzgitter Group
Stock listing 1998First blast furnace in Ilsede, 1861
First broad-flanged beam mill in Peine, 1914
1989 privatization with the sale to Preussag AG
Demonstrations to save the smelting works in Salzgitter, c. 1950
Privatization and acquisitionof the Ilsenburg rolling mill, 1992
Cross-rolling process sketch ofMax Mannesmann, pre 1885
Bottle filling line Phönixc. 1936
llsenburg: est. 1595,plate since 1948Mülheim an der Ruhr: plate since 1882Peine: Sections since 1876
1989 Name change toPreussag Stahl AG
1970 Mergerto form StahlwerkePeine-Salzgitter AG
1937 Construction Hüttenwerk Salzgitter
(Part of Reichswerke)2007 Integration into SZAG
1880 Acquisition of PeinerWalzwerk, est.1872
1923Foundation of steel group
Klöckner-Werke AG
1886 First processfor the rolling of
seamless steel tubes1858 FoundationIlseder Hütte AG
1912 first attempts withstainless steel tubes
1897 Start of productionwelded steel tubes
2017 Relaunch ofthe brand presence
1977 First acquisition of part. infilling technology (H & K)
2000 Liquidation ofMannesmann Group,
Integration Tubes into SZ
1992 - 1995Insolvency, restructuring
and end of steel production
Strip Steel BU Mannesmann BU Technology
Plate / Section Steel BU
1964Salzgitter Hüttenwerk AG(since 1961 part of state-owned
Salzgitter AG old)
1998 Salzgitter AG
engl
ish
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Business Units4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Economic development in the European UnionMarket Situation
Industrial production in selected countries of the EU (Jan. 2007 = 100)
France Italy SpainGermany GB
14
60
70
80
90
100
110
120
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Eurostat, own research, last figure from January 2020
Following the slight uptrend since 2013, the EU industrial production recently consolidated;Germany remains relatively strong despite deterioration since the second half of 2018
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Iron ore: dramatic price surge in the first half of 2019; after rapid decrease recently high volatilityCoking coal: global demand can be satisfied completely at the moment – with a corresponding effect on pricing
Raw materials pricesMarket Situation
Iron ore(62% Fe CFR China, US$/dmt)
Coking coal(FOB Australia, US$/t)
15engl
ish
50
60
70
80
90
100
110
120
130
140
100
150
200
250
300
SZAG
Inve
stor
Rel
atio
ns
Following periods of rises, steel prices consolidated since mid 2018 and recovered from the end of 2019 until Q1/2020 – the current price development is only conclusive to a limited extent due to the ongoing special situation
Steel pricesMarket Situation
Spot prices Northern Europe
16
Hot-rolled coil prices international
engl
ish
(€/t) (€/t)
Northern Europe EXW Ruhr USA EXW Indiana China SchanghaiHRC EXW Ruhr Plate EXW Ruhr Medium sections
300
400
500
600
700
800
900
Jan. 18 Jul. 18 Jan. 19 Jul. 19 Jan. 20300
400
500
600
700
800
900
Jan. 18 Jul. 18 Jan. 19 Jul. 19 Jan. 20
SZAG
Inve
stor
Rel
atio
ns
Average 2010-2019
-
500
1,000
1,500
2,000
2,500
2014 2016 2018 2019
China Ukraine Russland Türkei Indien Südkorea Iran Brasilien Sonstige
EU steel importsMarket Situation
Slight decrease of imports due to the weakening economy and eroding steel prices
Import situation EU (in 1.000t/month)
17
China Ukraine Russia Turkey India South Korea Iran Brazil Others
engl
ish
Source: Eurofer
Imports marked a record level in 2018
Declining demand in the EU steel market is only reflected in the imports from autumn 2019 onwards
Initiated review of the Safeguards must be used to adapt the measures to the current economic situations and to reestablish an effective protective function
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Business Units: Strip Steel4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Overview
19
Strip Steel Business Unit
Capabilities Integrated steel works with three blast
furnaces Approx. 4.7 mt/year crude steel capacity Modern production plants High processing competence (SSC)Core competences and products High-quality steel grades for sophisticated
applications Custom made solutions, e.g., hot-rolled
and cold-rolled coil, galvanized and coated sheet, laser-welded tailored blanks, corrugated sheets, coffers, sandwich and acoustic elements
Customer focus through local presence
Key data FY 2019
Consolidated Sales €m 2,209
Earnings before taxes €m -43
Core workforce (12/31) 6,090
Established supplier of the demanding German automotive industry
External sales by customer industry 2019
only from entities within the group of consolidated companies of Salzgitter Group
engl
ish
5%Other
34%Vehicle construction
4%Construction industry
7%White goods,
electrical equipment
34%Traders
1%Tube producers
14%Re-rollers
1%Mechanical engineering
SZAG
Inve
stor
Rel
atio
ns
Strip ProductsStrip Steel Business Unit
Salzgitter Flachstahl GmbH
Supplier of premium OEMs
Germany; shareholder: SZAG 100% Hot-rolled coil, cold-rolled coil, electrogalvanized, hot dip
galvanized and organic coated sheet Integrated steel works with 3 blast furnaces Around 4.7 mt yearly crude steel capacity Top modern production plants High-tech downstream facilities 4% market share in the EU28
2018 2019
Shipments kt 4,341 4,239
Sales €m 2,887 2,758
Employees 12/31 5,666 5,58720en
glis
h
SZAG
Inve
stor
Rel
atio
ns
ProcessingStrip Steel Business Unit
Salzgitter Europlatinen GmbH
Germany; shareholder: SZAG 100%Custom-made solutions: Laser welded Tailored Blanks for lighter car bodies
2018 2019
Sales €m 71 62
Employees 12/31 122 116
2018 2019
Sales €m 52 51
Employees 12/31 71 70
Germany; shareholder: SZAG 100%Corrugated sheets, coffers, sandwich a. acoustic elements for wall and roof constructions of commercial buildings
Salzgitter Bauelemente GmbH
21engl
ish
SZAG
Inve
stor
Rel
atio
ns
Steel Service CenterStrip Steel Business Unit
Salzgitter Mannesmann Stahlservice GmbH
Germany; shareholder: SZAG 100% Two locations Modern plants and processes 600,000 t/year processing capacity
Excellent position in the heart of Europe
2018 2019
Shipments kt 584 532
Sales €m 415 369
Employees 12/31 323 31722en
glis
h
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Business Units: Plate / Section Steel4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Overview
24
Plate / Section Steel Business Unit
Capabilities Section steel:
− Top-modern mini mill with two electric arc furnaces
− Annual crude steel capacity 1 mt− Two rolling mills for medium and heavy
sections Plate:
− Two rolling mills for plate with 1.1 mt annual capacity
− Plate width up to 4,800 mmCore competences and products High-strength, wear resistant and
specialized steel grades Medium and heavy sections, heavy plate
incl. offshore and tube grades
Consolidated sales €m 805
Earnings before taxes €m -124
Core workforce (12/31) 2,352
Key data FY 2019
Plate: Broad range of high quality plate products Section Steel: Efficient production
External sales by customer industry 20191%
Vehicle construction11%
Construction industry
10%
8%White goods,
electrical equipment
46%Traders
Tube producers
Mechanical engineering
engl
ish
only from entities within the group of consolidated companies of Salzgitter Group
21%Other
3%
SZAG
Inve
stor
Rel
atio
ns
Heavy PlatePlate / Section Business Unit
Ilsenburger Grobblech GmbH
Germany; shareholder: SZAG 100% Broad diversified heavy plate steel grades Construction plate, fine grained construction plate, alloyed
and unalloyed boiler plate, offshore and tube grades High-strength and wear resistant grades 7% market share in the EU28 State of the art facilities, one of the most modern water
quenching plants
2018 2019
Shipments kt 697 625
Sales €m 534 494
Employees 12/31 741 65525en
glis
h
SZAG
Inve
stor
Rel
atio
ns
Heavy PlatePlate / Section Steel Business Unit
Salzgitter Mannesmann Grobblech GmbH
Germany; shareholder: SZAG 100% Heavy plate mill specialized in plate for longitudinally
welded line pipe and similar applications, especially for EUROPIPE GmbH Pipe bending plant for seamless and welded steel tubes
in carbon, alloyed, and high-alloy steels Test Center with a wide range of mechanical and
technological tests
2018 2019
Shipments kt 526 371
Sales €m 378 256
Employees 12/31 539 53626en
glis
h
SZAG
Inve
stor
Rel
atio
ns
SectionsPlate / Section Steel Business Unit
Peiner Träger GmbH
Germany; shareholder: SZAG 100% Medium and heavy steel beams, Peine sections Progressive and flexible mini mill Two top-modern electric arc furnaces Adjusted crude steel capacity 1.0 mt/year 13% market share in the EU28 (plus N, CH) Two of the most efficient section mills worldwide with
comprehensive range of products
2018 2019
Shipments kt 1,022 953
Sales €m 619 553
Employees 12/31 785 77327en
glis
h
SZAG
Inve
stor
Rel
atio
ns
Other CompaniesPlate / Section Steel Business Unit
Deutsche Erz- und Metall-Union-Gruppe
Germany; shareholder: SZAG 100%Specialist trader for ferrous scrap, non-ferrous scrap, new metals and ferro alloys, as well as rolled steel products
2018 2019
Sales €m 678 571
Employees 12/31 378 380
28engl
ish
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Business Units: Mannesmann4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
27%Vehicle construction
Overview
30
Mannesmann Business Unit
Capabilities Own crude steel supply via 30%
participation in Hüttenwerke Krupp Mannesmann GmbH
Plant for the production of semis for the seamless tubes business
Core competences and products Line Pipe: participation (50%) in the world
market leader EUROPIPE; international presence
Precision Tubes: European market leader Seamless Stainless Tubes: top player in
the world market Longitudinal and spiral welded large-
diameter pipes, medium line pipes, seamless and welded precision tubes, stainless tubes
Consolidated Sales €m 1,110
Earnings before taxes €m -42
Core workforce (12/31) 4,643
Key Data FY 2019
External sales by customer industry 2019
Global player in the high quality segment of the global tubes market
engl
ish
only from entities within the group of consolidated companies of Salzgitter Group, excluding EUROPIPE Group
2%Construction industry
5%
15%Energy sector
and utilities
35%Other
6%Traders
Tube producers
10%Mechanical engineering
SZAG
Inve
stor
Rel
atio
ns
Line PipesMannesmann Business Unit
EUROPIPE Group
Germany; shareholder: SZAG 50%, Dillinger Hüttenwerke 50% Longitudinal and spiral welded large-diameter pipes for
transcontinental and underwater pipelines In-house coating activities World market leader (7% market share) 3 locations in D, USA Since January 1, 2014 reported at equity
2018 2019
Shipments kt 895 581
Sales €m 953 777
Employees 12/31 1,047 1,08331en
glis
h
SZAG
Inve
stor
Rel
atio
ns
Line PipesMannesmann Business Unit
Mannesmann Line Pipe GmbH
Germany; shareholder: SZAG 100%HFI-welded medium line pipes incl. plastic- and cement coatings
2018 2019
Sales €m 285 254
Employees 12/31 364 357
2018 2019
Sales €m 67 58
Employees 12/31 125 124
Germany; shareholder: SZAG 100%Spiral-welded large-diameter pipes made of hot-rolled coil
Mannesmann Großrohr GmbH
32engl
ish
SZAG
Inve
stor
Rel
atio
ns
Precision TubesMannesmann Business Unit
Mannesmann Precision Tubes Group
Germany; shareholder: SZAG 100% Seamless and welded cold drawn precision tubes for the
automotive and engineering industries as well as the energy sector State of the art push bench plant for the production of hollows Market leader in the EU28 (24% market share) 10 locations in D, F, NL and Mexico
2018 2019
Shipments kt 276 247
Sales €m 497 458
Employees 12/31 2,287 2,25633en
glis
h
Structural tube
AirbagsPump case
Stabilizers
Suspension components
Seat belt- IHU/IHVfixings
Engine-components
Drive shaftsDrivetrain and steering components
Camshafts
SZAG
Inve
stor
Rel
atio
ns
Seamless Stainless TubesMannesmann Business Unit
Salzgitter Mannesmann Stainless Tubes Group
Germany; shareholder: SZAG 100% Seamless hot- and cold finished stainless tubes
for the chemical- and engineering industries, as well as for the energy sector 6% market share in the world 5 locations in D, F, I, USA
2018 2019
Shipments kt 23 23
Sales €m 245 290
Employees 12/31 1,000 1,02134en
glis
h
SZAG
Inve
stor
Rel
atio
ns
Significant shareholdingsMannesmann Business Unit
Hüttenwerke Krupp Mannesmann GmbH
Germany; shareholder: ThyssenKrupp 50%, SZAG 30% + Vallourec 20% (Pool) Steel works with two blast furnaces Production of slabs and round steel bars Up to 1,000 different steel grades Yearly crude steel production of > 4 million tons
2018 2019
Sales €m 2,468 2,496
Employees 12/31 2,980 2,94735en
glis
h
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Business Units: Trading4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
6%
Vehicle construction
Overview
37
Trading Business Unit
Consolidated Sales €m 2,846
Earnings before taxes €m -31
Core workforce (12/31) 2,066
Capabilities 74 sites in 30 countries Own distribution network for steel products
with warehousing sites in Europe Processing group specialized on heavy
plate products International tradingCore competences and products Global presence in all relevant regions with
own representation Distribution channel for Salzgitter Group
products Procurement channel for Salzgitter Group
works Value add services for customers
Key Data FY 2019
External sales by customer industry 2019
High customer and market orientation through a global sales organization
engl
ish
12%
Other
31%
Construction industry4%
White goods,electrical equipment
31%
Traders
2%
Tube producers
3%
Re-rollers
3%
Energy sector and utilities
8%
Mechanical engineering
only from entities within the group of consolidated companies of Salzgitter Group
SZAG
Inve
stor
Rel
atio
ns
International10 Companies2 Rep. offices
Europa7 Companies
Europa4 Agencies
Salzgitter Mannesmann Handel Group
38
Trading Business Unit
Salzgitter Mannesmann Handel
Shipments 2019: 4.0 mt Sales 2019: € 2.7 billion
Trading AgenciesStockholding
Salzgitter Mannesmann International GmbH, Düsseldorf (SMID)
Salzgitter Mannesmann International (USA) Inc., Houston (SMIH)
Salzgitter Mannesmann International (Canada) Inc., Vancouver (SMIV)
63 locations in 27 countries with 1,861 employees
engl
ish
Salzgitter Mannesmann Stahlhandel GmbH, Düsseldorf (SMSD)
Stahl-Center Baunatal GmbH, Baunatal (SCB)
19 Branches with warehouses and further processing (incl. 4 flame cutting plants), 4 Sales offices
SZAG
Inve
stor
Rel
atio
ns
Universal Eisen und Stahl Group
39
Trading Business Unit
Universal
Shipments 2019: 0.2 mt Sales 2019: € 0.2 billion
North America Europe
5 Branches
Universal Eisen und Stahl GmbH, Neuss (UES) Universal Aciers Sarl, Couzon au Mont d'Or, France
UNIVERSAL STEEL HOLLAND B.V., SK Papendrecht, Netherlands
UNIVERSAL-Stal Sp. z o.o, Gliwice, Poland
UNIVERSAL OCEL spol. s.r.o., Prague, Czech Republic
UNIVERSAL STEEL AMERICA, Inc., Houston, USA
2 Branches
11 locations in 6 countries with 365 employees
engl
ish
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Business Units: Technology4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Overview
41
Technology Business Unit
Capabilities 17 Production plants worldwide 60 Service sites > 90% of sales outside of GermanyCore competences and products KHS: among the top 3 global suppliers for
filling and packaging machines; technology and innovation leadership
DESMA Elastomertechnik: Global leader for rubber and silicon injection molding machines
DESMA Schuhmaschinen: World market leader for the production of machines for the production of shoes and shoe soles
Turn-key lines, single machines and service
Consolidated Sales €m 1.390
Earnings before taxes €m 33
Core workforce (12/31) 5.557
Top 3 producer for filling and packing industry, world market leader for rubber and silicon injection molding as well as direct soling machines
Key data FY 2018
External sales by customer industry 2018
engl
ish
1%White goods,
electrical equipement
90%
2%Vehicle construction
Food and beverageindustry
7%Mechanical engineering
only from entities within the group of consolidated companies of Salzgitter Group
SZAG
Inve
stor
Rel
atio
ns
Filling and packagingTechnology Business Unit
KHS Group
Germany; shareholder: SZAG 100% A global leader and solution provider of first choice in the packaging
industry Among the Top 3 producers Focus on beverage applications Supplier of single machines and turnkey solutions (one-stop-shop
supplier) Leadership in technology and innovation 11 production sites: 5 in Germany, 2 in the US, and 1 each in Mexico,
Brazil, China and India
2018 2019
Sales €m 1,161 1,260
Employees 12/31 4,714 4,79342en
glis
h
SZAG
Inve
stor
Rel
atio
ns
Special machineryTechnology Business Unit
Klöckner DESMA Elastomertechnik Group
World market leader for rubber and silicone injection molding machinery
2018 2019
Sales €m 116 79
Employees 12/31 552 540
2018 2019
Sales €m 62 52
Employees 12/31 224 224
World’s largest producer of machines for the fabrication of shoes and shoe soles
DESMA Schuhmaschinen GmbH
43engl
ish
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Industrial Participations4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Overview
45
Industrial Participations
Comprises activities that are not directly allocated to a business unit
Core competences and participations Services:
− Research and development for the Group and external customers
− Information technology− Engineering services− Real estate- and facility development as
well as management− Freight traffic
Shareholdings:− Aurubis− Hansaport
Consolidated sales €m 178
Earnings before taxes €m -47
Core workforce (12/31) 2,648
Key data FY 2019
Gratifying contribution from the service companies and the Aurubis investment
engl
ish
SZAG
Inve
stor
Rel
atio
ns
EngineeringIndustrial Participations
Salzgitter Mannesmann Forschung GmbH
Germany; shareholder: SZAG 100%Research and development for the Group and external customers with a focus on: Processes for the manufacture, processing
and application of metallic materials and products made of them Development of new materials Development of application areas Material and component characterization including testing
techniques Application and engineering technology from component design
through forming and assembly to corrosion protection Automation and testing techniques, as well as the construction
of non-destructive testing facilities
46engl
ish
SZAG
Inve
stor
Rel
atio
ns
Raw Materials and Logistics
Glückauf Immobilien, RSE
Companies specialized in real estate- and facility development as well as management
Hansaport1
Germany's largest seaport terminal for handling dry bulk goods (coal and ores), annual capacity of approximately 15 million tons
Verkehrsbetriebe Peine-Salzgitter
Commercial transportation provider with an annual freight volume of approximately 43 million tons
1 SZAG share: 51%47en
glis
h
Industrial Participations
SZAG
Inve
stor
Rel
atio
ns
Data Processing and Communications
Telcat Multicom/Telcat Kommunikationstechnik
Systems for decentralized communication, Broad array of information solutions ranging from office communication and video technology to network services
Integration of business processes into one uniform IT-solution that reflects the entire workflow, Electronic data processing center capacities andthe internet-based eService platform as a unified hub for order processing are offered for group companies and external clients
GESIS Gesellschaft für Informationssysteme
48engl
ish
Industrial Participations
SZAG
Inve
stor
Rel
atio
ns
Aurubis-Participation
49
Industrial Participations
Aurubis Dividend (€/Share)
Since 2008 successful shareholding in the leading European copper producer
SZAG shareholding: 29.99% (per May 23, 2019)
Net dividend received since 2009: € 119.4 million (per FY18/19)
engl
ish
0.65
1.00
1.20
1.35
1.101.00
1.351.25
1.451.55
1.25
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2008/2009
2009/2010
2010/2011
2011/2012
2012/2013
2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
2018/2019
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Business Units4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Update programs of measures
engl
ish
Strategy
All in all more than € 350 million in additional effects from optimization programs planned
€ million earnings improvement potential
FitStructure 2.0 (incl. remaining effects of FitStructure) SZAG 2021 Growth Programs
€ million additional profit contribution
~45
~60
~50
0
20
40
60
80
100
120
140
160
180
2020 2021 2022 ff.
~50
~50
~80
~60
0
50
100
150
200
250
2020 2021 2022 2023
51
SZAG
Inve
stor
Rel
atio
ns
Steel and tubes producing business units are in the focus of FitStructure 2.0
FitStructure 2.0: Distribution of full-year effects expected by 2023
52
Strategyen
glis
h
7%Trading
8%Industrial Participations
12%Technology
21%Mannesmann
26%Plate / Section Steel
27%Strip Steel
€ >240 m total FYE
SZAG
Inve
stor
Rel
atio
ns
0
5
10
15
20
25
30
35
40
45
50
2017 2018 2019 2020 2021 2022 2023 2024 2025
Challenge: CO2 emission allowances are continuously cut backStrategy
53
Price forecast CO2 allowances
Source: ICIS, own calculations
€/t C
O2
Price for CO2 emission allowances has surged since 2018 – further increase is highly likely!
Price CO2 allowances
Third trading period Fourth trading period
engl
ish
Estimates price CO2 allowances
SZAG
Inve
stor
Rel
atio
ns
The Salzgitter Group has two safety nets: CO2 emission allowances for the Fourth Trading Period purchased as a precaution
SALCOS® – technological concept for CO2-reduced steel production54
Resolution approach: Salzgitter AG with two-fold strategyStrategy
CO2- emission allowances acquired as a precaution
First Safety Net Second Safety Net
• Shortfall in CO2 allowances has been compensated for the most part at the subsidiaries of the Salzgitter Group
• Current market value of the CO2allowances acquired as a precaution exceeds the figure accounted for in the balance sheet by around € 300 million*
• Significant, gradual reduction of the CO2 emissions of Salzgitter AG
• Target: Reduction of up to 95% of the CO2 emissions of Salzgitter Flachstahl until 2050
engl
ish
*) Per ad-hoc release from June 14, 2019
SZAG
Inve
stor
Rel
atio
ns
55
Strategy
Arguments for
1. Biggest CO2 reduction potential per MWh of renewable energies used in a processual as well as industry and sector comparison
2. The Salzgitter AG has the leading concept. The required individual technical components are available in the market
3. Lower Saxony has the best preconditions to be the No. 1 transformation state in Germany:high level of electricity production from renewable sources and required hydrogen infrastructure
4. No relocation of production, no carbon leakage5. Economical, ecological and social concept6. Integration with local industrial sectors possible (among others automotive); important component of
a holistic CO2-free product lifecycle
Green steel with SALCOS® – sensible and realisable!
Technical solution approach: assessment
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Strategy
SALCOS® – Gradual conversion to a H2-based steel production
We are ready!Gruadual technical implementation possible as soon as the neceddary framework conditions are realized
56Individual stages may technically also be realized in combination. The actual implementation time depends on the economic and political framework.*with the use of 55% H2 in the Direct Reduction Plants (DRP) / **with the use of 100% H2 in the DRPs
engl
ish
SZAG
Inve
stor
Rel
atio
ns
57
Realization: first steps were already implementedStrategy
Weltweit erste Dampf-Elektrolyse im MW-Maßstab bei der Salzgitter Flachstahl ab 2020
Wind-H2 – SektorkopplungProduktion von elektrischer Energie via Windkraft und elektrolytischem Wasserstoff auf dem Werksgelände
MACOR: SALCOS-feasibility study Analysis of framework conditions Numercal modelling of melt shop
and direct reduction plant Results of cost-effectiveness analysis
by 2021
World‘s first steam electrolysis on MW scale at Salzgitter Flachstahl as from 2020
Wind-H2 – sector integrationProduction of electrical energy via wind power and electrolytic hydrogen on the works premises
2017 2018 2019 2020 2021
„Mini-SALCOS“Project planning of a demonstration plantfor direct reduction in Salzgitter
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Sustainable strategy:Realization of major investment projects also in less comfortable phases!
Update investment projects
58
Strategy
Salzgitter Flachstahl: Hot-Dip Galvanizing Line 3
Qualitative growth in the strip steel business Reinforcement of the market position in the automotive segment Strengthening of the premium segment for auto customers
Commissioning: 2022
Current status: Construction of the building
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
Current status: Preparation for the installment of the plant
engl
ish
SZAG
Inve
stor
Rel
atio
ns
1 Salzgitter Group2 Market Situation3 Business Units4 Strategy5 Guidance
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Salzgitter Group – Guidance FY 2020 as of April 24, 2020Guidance
engl
ish
Legal Note and other remarks
We make explicit reference to the fact that imponderables, including changes in the cost of raw materials, precious metal prices and exchange rates, along with global trade policy measures and their possible impact may still exert a considerable influence over the course of the financial year.
To the extent that this presentation contains 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 forecasts or prognosis, such statements are also subject to uncertainties and risks. Notwithstanding prevailing statutory provisions and capital market law in particular, we are not obligated to update this data. In particular, we shall not assume liability of any kind for knowledge and statements, as well as any acts resulting on the basis of such knowledge or statements that emanate directly or indirectly from the analysis of the data, content and correlations of this document. The information and data made available do not represent an encouragement or invitation to buy, sell or conduct any other type of trade in securities. Salzgitter AG shall neither assume liability for direct nor indirect damages, including lost profits, arising as a result of the utilization of the information or data contained in this document.
We anticipate a negative pre-tax result in a significant, with a high probability, triple-
digit million euro range for the financial year 2020. The scope of feasible scenarios is so
extensive that precise quantification would be pure speculation from a current
standpoint.
SZAG
Inve
stor
Rel
atio
ns
BACKUP1 Financials2 Pensions3 Investor Relations
engl
ish
SZAG
Inve
stor
Rel
atio
ns
FY 2019 FY 2018 Δ Q4 2019 Q3 2019 Q2 2019 Q1 2019
Crude steel production kt 6,613.4 7,039.4 -426.0 1,553.3 1,648.0 1,672.3 1,739.8
External sales1 € million 8,547.3 9,278.2 -730.8 1,910.0 2,111.1 2,232.4 2,293.8
Earnings before tax € million -253.3 347.3 -600.6 -294.0 -104.6 19.4 125.9
Earnings after tax € million -237.3 277.7 -515.0 -207.5 -126.2 -0.3 96.7
Earnings per share (undiluted) € -4.46 5.06 -9.52 -3.83 -2.36 -0.03 1.76
ROCE % -5.8 10.3 -16.1 -31.2 -10.0 2.8 14.1
Core workforce2 23,354 23,523 -169 23,354 23,562 23,639 23,683
Key data per 2019/12/31
62
Financials
Result of Salzgitter Group impacted by a total of € -396.0* million in special effects
1 only from entities within the Group of Consolidated Companies of Salzgitter Group 2 per reporting date
engl
ish
*) € -62,3 million restructuring provisions, € -192,9 million impairment as awell as € -140,8 Mio. € other special effects (cartell fine)
SZAG
Inve
stor
Rel
atio
ns
Income statement
63engl
ish
Financials
Income Statement (€ million) FY 2019 FY 2018 Δ
Sales 8,547.3 9,278.2 -730.9Increase/decrease in finished goods and work in process/other own work capitalized -8.2 161.6 -169.8
8,539.1 9,439.8 -900.7
Other operating income 285.6 256.8 28.8
Cost of materials 5,602.6 6,131.4 -528.8
Personnel expenses 1,815.7 1,739.5 76.2Amortization and depreciation of intangible assets and property, plant and equipment 541.0 384.0 157.0
Other operating expenses 1,157.8 1,099.9 57.8Result from impairment losses an reversal of impairment losses of financial assets -25.1 -1.9 -23.3
Income from shareholdings 2.0 2.4 -0.4
Result from investments accounted for using the equity method 125.2 74.7 50.5
Finance income 17.5 15.0 2.5
Finance expenses 80.4 84.6 -4.2
Earnings before taxes (EBT) -253.3 347.3 -600.6
Income tax -16.0 69.5 -85.5
Consolidated result -237.3 277.7 -515.0
SZAG
Inve
stor
Rel
atio
ns
Consolidated balance sheet
64
Financialsen
glis
h
Assets (€ million) 2019/12/31 2018/12/31 ΔNon-current assets 4,099.0 3,835.9 263.1
Intangible assets, property, plant and equipment 2,343.0 2,339.9 3.1
Investment property 82.0 83.5 -1.5
Financial assets 64.7 75.6 -10.9
Investments accounted for using the equity method 1,072.9 888.3 184.6
Trade receivables 18.4 25.5 -7.1
Other receivables and other assets 25.6 24.0 1.6
Income tax assets 0.0 0.1 -0.1
Deferred income tax assets 492.3 399.1 93.2
Current assets 4,518.5 4,921.0 -402.5
Inventories 2,248.1 2,327.5 -79.4
Trade receivables 1,118.4 1,367.2 -248.8
Contract assets 186.3 175.2 11.1
Other receivables and other assets 191.8 403.7 -211.9
Income tax assets 22.6 24.5 -1.9
Securities 50.9 67.4 -16.5
Cash and cash equivalents 700.5 555.6 144.9
Balance sheet total 8,617.5 8,756.9 -139.4
SZAG
Inve
stor
Rel
atio
ns
Consolidated balance sheet
65
Financialsen
glis
h
Equity and liabilities (€ million) 2019/12/31 2018/12/31 ΔEquity 2,938.6 3,332.1 -393.5Subscribed capital 161.6 161.6 0.0Capital reserve 257.0 257.0 0.0Retained earnings 2,845.1 3,181.0 -335.9Other reserves 23.0 60.0 -37.0Unappropriated retained earnings 12.1 33.1 -21.0Treasury shares -369.7 -369.7 0.0Minority Interest 9.6 9.1 0.5Non-current liabilities 3,453.6 3,035.7 417.9Provisions for pensions and similar obligations 2,356.1 2,275.5 80.6Deferred tax liabilities 72.0 67.6 4.4Income tax liabilities 36.6 36.9 -0.3Other provisions 334.9 358.4 -23.5Financial liabilities 637.1 291.1 346.0Other liabilities 16.8 6.1 10.7Current liabilities 2,225.3 2,389.2 -163.9Other provisions 224.6 281.4 -56.8Financial liabilities 430.1 426.9 3.2Trade payables 915.2 1,130.2 -215.0
Liability contracts 200.7 250.2 -49.5Income tax liabilities 8.6 37.0 -28.4Other liabilities 446.0 263.4 182.6Balance sheet total 8,617.5 8,756.9 -139.4
SZAG
Inve
stor
Rel
atio
ns
Cash flow statement
66
Financials
Cash flow from investing activities contains € 96 million for the increase of the shareholding in AurubisCash flow from financing activities includes € 364 million from the issuance of a bonded loan in May of 2019
€ million
engl
ish
555.6
250.7 -304.8194.7
4.3
700.5
0
200
400
600
800
1,000
Cash and cashequivalents at start
of period
Cash flowfrom operating
activities
Cash flowfrom investment
activities
Cash flowfrom financing
activities
Other Cash and cashequivalents at end
of period
SZAG
Inve
stor
Rel
atio
ns
BondsFinancials
Convertible Bond
Volume: € 167,900,000 Coupon: 0.0 % p.a. Issue date: June 5, 2015 Maturity date: June 5, 2022 Denomination: € 100,000 Conversion ratio: 2,150.2463 Shares per Bond1
Conversion price: € 46.50631
Underlying shares: 3,610,2631
Conversion right period: July 25, 2015 to May 26, 2022 Early redemption at the option of the Issuer: On or after June 5, 2018, and upon giving not less than 30 nor more than 40 calendar days notice,
only possible if the volume adjusted average XETRA-quotation on at least 20 of the 30 consecutive trading days directly prior to the notification date exceeds 130% of the then applicable conversion price
1 Most recently adjusted per 2019/05/2867en
glis
h
SZAG
Inve
stor
Rel
atio
ns
Strip Steel Business Unit
68
Financials
Erosion of selling prices, accompanied by the increase in iron ore costs over the course of the year, as well as impairment of € -100.0 million placed a burden on the result
engl
ish
1 per reporting date
FY 2019 FY 2018 Δ Q4 2019 Q3 2019 Q2 2019 Q1 2019
External sales € million 2,209.0 2,341.0 -132.0 478.9 554.6 576.7 598.8
Order bookings kt 4,318.4 4,518.1 -199.7 971.2 1,064.8 1,143.6 1,138.8
Order backlog1 kt 913.7 917.5 -3.8 913.7 910.2 932.4 911.5
EBITDA € million 259.5 439.2 -179.7 16.3 75.0 68.1 100.1
EBT € million -42.8 205.8 -248.6 -127.4 24.3 14.0 46.3
Core workforce1 6,090 6,182 -92 6,090 6,138 6,192 6,207
SZAG
Inve
stor
Rel
atio
ns
Plate / Section Steel Business Unit
69
Financials
Result impacted by the difficult market situation in heavy plate and by impairment (€ -47.8 million) as well as by restructuring provisions (€ -17.1 million) for the initiated programs of measures
engl
ish
1 per reporting date
FY 2019 FY 2018 Δ Q4 2019 Q3 2019 Q2 2019 Q1 2019
External sales € million 804.7 1,026.4 -221.7 174.1 188.3 212.6 229.6
Order bookings kt 1,873.3 2,188.6 -315.3 444.2 394.0 510.8 524.5
Order backlog1 kt 309.1 383.8 -74.6 309.1 243.8 314.6 337.8
EBITDA € million -30.0 71.8 -101.8 -52.7 -2.1 10.7 14.0
EBT € million -124.0 24.8 -148.8 -111.0 -13.5 -1.2 1.7
Core workforce1 2,352 2,451 -99 2,352 2,414 2,425 2,444
SZAG
Inve
stor
Rel
atio
ns
70
Mannesmann Business UnitFinancials
Pre-tax result includes € -40.0 million in impairment and restructuring provisions amounting to € -14.1 million
engl
ish
1)per reporting date
FY 2019 FY 2018 Δ Q4 2019 Q3 2019 Q2 2019 Q1 2019
External sales € million 1,119.6 1,118.6 1.0 277.5 259.8 292.0 290.3
Order bookings kt 1,384.4 1,464.2 -79.8 318.5 379.9 343.9 342.1
Order backlog1 kt 446.4 511.9 -65.5 446.4 481.4 461.1 477.3
EBITDA € million 70.0 98.6 -28.6 19.3 6.6 18.5 25.6
EBT € million -41.5 -5.4 -36.1-38.7
-11.9 0.7 8.4
Core workforce1 4,643 4,675 -32 4,643 4,670 4,696 4,700
SZAG
Inve
stor
Rel
atio
ns
71
Trading Business UnitFinancials
Economic downturn and decreasing selling prices shape FY 2019; pre-tax result comprises € -5.4 million in restructuring provisions as well as burdens from impairments of € -30.5 million
engl
ish
1 per reporting date
FY 2019 FY 2018 Δ Q4 2019 Q3 2019 Q2 2019 Q1 2019
External sales € million 2,846.2 3,267.7 -421.5 551.6 716.3 780.4 797.9
Shipments kt 3,795.8 4,477.5 -681.8 768.1 936.9 1,047.4 1.043.4
EBITDA € million -2.9 75.9 -78.8 -28.0 6.7 8.7 9.8
EBT € million -31.0 50.5 -81.6 -34.3 -0.9 1.2 3.0
Core workforce1 2,066 2,109 -43 2,066 2,106 2,121 2,126
SZAG
Inve
stor
Rel
atio
ns
Technology Business Unit
72
Financials
KHS Group recorded highest pre-tax profit since joining the consolidated group!earnings include € -3.3 million in restructuring provisions
engl
ish
1 per reporting date
FY 2019 FY 2018 Δ Q4 2019 Q3 2019 Q2 2019 Q1 2019
External sales € million 1,390.3 1,338.2 52.1 389.4 344.0 323.1 333.8
Order bookings kt 1,374.2 1,334.3 39.8 364.2 328.1 352.0 330.0
Order backlog1 kt 709.3 696.9 12.5 709.3 716.4 724.0 704.5
EBITDA € million 61.9 64.9 -3.0 20.9 12.6 10.6 17.8
EBT € million 32.7 43.1 -10.4 10.2 6.4 4.3 11.8
Core workforce1 5,557 5,490 67 5,557 5,576 5,556 5,559
SZAG
Inve
stor
Rel
atio
ns
Industrial Participations / Consolidation
73
Financials
Pre-tax result comprises a net amount of € -148.9 million in burdens, first and foremost the liability formed in connection with the end to the investigations conducted on the grounds of suspected cartel arrangements
engl
ish
1 per reporting date
FY 2019 FY 2018 Δ Q4 2019 Q3 2019 Q2 2019 Q1 2019
External sales € million 177.6 186.3 -8.8 38.4 48.2 47.7 43.3
EBITDA € million -4.2 46.9 -51.1 26.6 -100.6 8.7 61.0
EBT € million -46.7 28.4 -75.0 7.2 -109.0 0.4 54.7
Core workforce1 2,646 2,616 30 2,646 2,658 2,649 2,647
SZAG
Inve
stor
Rel
atio
ns
BACKUP1 Financials2 Pensions3 Investor Relations
engl
ish
SZAG
Inve
stor
Rel
atio
ns
Mechanics of internal pension commitment fundingPensions
Internal funding over lifetime of employee
Provision is determined by development of individual salary, time in employment at SZAG, actuarial life expectancy and inflation Contribution as personnel expense and interest element (both non-cash) Monthly payout from operating cash flow
Pension provision (non-cash) Contribution by SZAG (non-cash) Pension payment (cash)
Joinscompany
5 years Retirement
... ...
75engl
ish
SZAG
Inve
stor
Rel
atio
ns
Funding of pension commitmentsPensions
(2019/12/31) (2019/12/31)
Pension obligations completely covered by internal funds!
Projected Benefit Obligation (PBO): € 2,422 m1
According to IAS 19:− Discount rate of 1.40%
– in line with market average− Trend in salaries: 2.75% p.a.− Trend in pensions:
1.75% p.a.− Staff turnover: 1% p.a.− Valuation based on the actuarial
principles
Balance sheet: pension provisions € 2,356 m Assets held by external funds:
€ 65.6 m Non-current assets: € 4,099 m Net position due to banks:
€ -140 m
1 thereof € 65.6 million covered by assets held by external funds
0
1
2
3
4
5
PBO
Pens
ion
prov
isio
ns
Non
-cur
rent
asse
ts +
cas
h
€ bn
76engl
ish
SZAG
Inve
stor
Rel
atio
ns
BACKUP1 Financials2 Pensions3 Investor Relations
engl
ish
SZAG
Inve
stor
Rel
atio
ns
0.32
0.45
0.25
0.20 0.20
0.25
0.30
0.45
0.55
0.20
0.00
0.20
0.40
0.60
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Dividend proposalInvestor Relations
Continuous dividend payment since going public
78engl
ish
Financial year 2019Proposal: € 0.20 dividend per share
€
SZAG
Inve
stor
Rel
atio
ns
Inst. shareholders – other Regions
Shareholder structure and share turnoverInvestor Relations
Balanced shareholder structure
Shareholder structure Daily turnover in thousand shares
Salzgitter AG
State ofLower Saxony
Inst. Shareholders – Germany
Inst. shareholders – North America
Inst. shareholders– UK + Ireland
Inst. share-holders –other Europe
Other shareholders
High liquidity
79
0
200
400
600
1Q 13 4Q 13 3Q 14 2Q 15 1Q 16 4Q 16 3Q 17 2Q 18 1Q 19 4Q 19
engl
ish
Free float: 63.5%Treasury shares: as of July 8, 2010; other information is based on the external shareholder identification as of January 2020
10.0%
26.5%
8.5%22.7%
2.8%4.8%
0.9%
23.9%
SZAG
Inve
stor
Rel
atio
ns
Disclaimer
80
Legal NoteTo 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 forecasts or prognosis, such statements are also subject to uncertainties and risks. Notwithstanding prevailing statutory provisions and capital market law in particular, we are not obligated to update this data. In particular, we shall not assume liability of any kind for knowledge and statements, as well as any acts resulting on the basis of such knowledge or statements that emanate directly or indirectly from the analysis of the data, content and correlations of this document. The information and data made available do not represent an encouragement or invitation to buy, sell or conduct any other type of trade in securities. Salzgitter AG shall neither assume liability for direct nor indirect damages, including lost profits, arising as a result of the utilization of the information or data contained in this document.
CopyrightsThis data file and the data contained on these pages (including, among others, texts, images and graphics) are subject to copyright and other laws on the protection of intellectual property. To the extent that nothing contradicting or deviating is stated, all trademarks bear legal trademark protection. This applies in particular for Salzgitter company logos and product names. The brands and design elements used on our web pages are the intellectual property of Salzgitter AG. We therefore reserve all rights as such. The document serves to provide non-binding information regarding our company to the respective user, and may not be used within the framework of other depictions, in particular websites, without our express prior written consent. engl
ish
