Quarterly Statement 9 Months 2021

9MQuarterly Statement

9 Months 2021

Quarterly Statement 9 Months 2021

Table of Contents

Table of Contents	1
The Salzgitter Group in Figures	2
Profitability of the Group and its Business Units	3
Profitability of the Group	3
Strip Steel Business Unit	5
Plate / Section Steel Business Unit	8
Mannesmann Business Unit	10
Trading Business Unit	12
Technology Business Unit	13
Industrial Participations / Consolidation	14
Financial Position and Net Assets	15
Employees	16
Forecast, Opportunities and Risk Report	17
Interim Financial Statements	20
Notes	24

1

• Quarterly Statement 9 Months 2021

The Salzgitter Group in Figures

				9M 2021		9M 2020		+/-
Crude steel production		kt		5,071.2	4,334.2	737.0
External sales		€ m		7,001.7		5,264.3		1,737.4
Strip Steel Business Unit		€ m		1,852.0		1,384.9		467.1
Plate/Section Steel Business Unit		€ m		689.1		530.3		158.7
Mannesmann Business Unit		€ m		812.2		723.3		88.9
Trading Business Unit		€ m		2,546.8		1,667.9		878.9
Technology Business Unit		€ m		979.5		853.6		125.9
Industrial Participations/Consolidation		€ m		122.1		104.2		17.9
EBIT before depreciation and amortization (EBITDA)		€ m		866.8		35.5		831.3
Earnings before interest and taxes (EBIT)		€ m		646.5		-183.7		830.3
Earnings before taxes (EBT)		€ m		604.5		-224.4		828.9
Strip Steel Business Unit		€ m		237.6		-94.9		332.5
Plate/Section Steel Business Unit		€ m		-8.0		-64.7		56.7
Mannesmann Business Unit		€ m		-20.1		-48.3		28.1
Trading Business Unit		€ m		282.4		-22.9		305.3
Technology Business Unit		€ m		40.9		-13.8		54.7
Industrial Participations/Consolidation		€ m		71.6		20.2		51.4
Consolidated result		€ m		467.7		-243.0		710.6
Earnings per share - basic		€		8.56		-4.54		13.09
Return on capital employed (ROCE)1)		%		20.0		-8.1		28.1
Cash flow from operating activities		€ m		123.0		-96.5		219.6
Investments2)		€ m		258.5		291.6		-33.1
Depreciation/amortization2) 3)		€ m		-220.3		-219.2		-1.0
Total assets		€ m		9,542.2	7,989.9	1,552.3
Non-current assets		€ m		4,280.0		4,188.8		91.2
Current assets		€ m		5,262.2		3,801.1		1,461.1
of which inventories		€ m		2,696.8		1,871.3		825.5
of which cash and cash equivalents		€ m		360.2		339.0		21.2
Equity		€ m		3,293.8		2,631.6		662.2
Liabilities		€ m		6,248.4		5,358.3		890.1
Non-current liabilities		€ m		3,258.8		3,653.8		-394.9
Current liabilities		€ m		2,989.6		1,704.5		1,285.1
of which due to banks4)		€ m		850.5		913.2		-62.7
Net financial position on the reporting date5)		€ m		-614.6		-498.0		-116.6
Employees
Personnel expenses		€ m		-1,311.3		-1,248.5		-62.8
Core workforce on the reporting date6)		Empl.		22,411		22,785		-374
Total workforce on the reporting date7)		Empl.		24,338	24,546		-208
Disclosure of financial data in compliance with IFRS

1. Annualized
2. Excluding financial assets, as from FY 2019 under initial application of IFRS 16 Leases
3. Scheduled and unscheduled write-downs
4. Current and non-current bank liabilities
5. Including investments, e.g. securities and structured investments
6. Excl. trainee contracts and excl. non-activeage-relatedpart-time work
7. Incl. trainee contracts and incl. non-activeage-relatedpart-time work

Quarterly Statement 9 Months 2021

3

Profitability of the Group and its Business Units

Profitability of the Group

				Q3 2021		Q3 2020		9M 2021		9M 2020
Crude steel production		kt		1,693.7		1,381.5		5,071.2	4,334.2
External sales		€ m		2,566.2		1,633.4		7,001.7		5,264.3
EBIT before depreciation and amortization
(EBITDA)		€ m		388.2		-14.2		866.8	35.5
Earnings before interest and taxes (EBIT)		€ m		317.9		-84.7		646.5		-183.7
Earnings before taxes (EBT)		€ m		298.8		-96.6		604.5		-224.4
Consolidated result		€ m		237.0		-98.3		467.7		-243.0
Return on capital employed (ROCE)1)		%		29.7		-10.9		20.0		-8.1
Investments2)		€ m		98.1		81.7		258.5		291.6
Depreciation/amortization2)		€ m		-70.4		-70.5		-220.3		-219.2
Cash flow from operating activities		€ m		-99.0		25.0		123.0		-96.5
Net financial position3)		€ m						-614.6		-498.0
Equity ratio		%						34.5	32.9

1. Annualized
2. Excluding financial assets, as from FY 2019 under initial application of IFRS 16 Leases
3. Including investments, e.g. securities and structured investments

The Salzgitter Group delivered a pre-tax profit of € 604.5 million in the first nine months of the financial year 2021 (9M 2020: € -224.4 million). This result was driven by the dynamic uptrend in selling prices through to August that first and foremost impacted the results of the Strip Steel and Trading business units. The latter achieved the highest quarterly and nine-month result in its history. The participating investment in Aurubis AG again delivered a very gratifying earnings contribution (€ 133.5 million; 9M 2020: € 53.4 million). The increase in Salzgitter Group's external sales to €7,001.7 million was due above all to the upturn in prices for rolled steel and notably exceeded the year-earlier figure (9M 2020: € 5,264.3 million). Earnings after taxes came in at

• 467.7 million (9M 2020: € -243.0 million). Earnings per share therefore stood at € 8.56 (9M 2020: € -4.54) and return on capital employed at 20.0% (9M 2020: -8.1%). The equity ratio remained at a very sound 34.5%. Due to the reporting-date related increase in working capital, the net financial position of € -614.6 million fell considerably short of the level posted on the balance sheet date at year-end 2020 (€ -431.7 million).