H1Interim Report 1st Half 2021

Interim Report 1st Half 2021

Table of Contents

Table of Contents

1

The Salzgitter Group in Figures

2

Profitability of the Group and its Business Units

3

Earnings Situation within the Group

3

Strip Steel Business Unit

6

Plate/Section Steel Business Unit

9

Mannesmann Business Unit

11

Trading Business Unit

13

Technology Business Unit

14

Industrial Participations/Consolidation

15

Financial Position and Net Assets

16

Employees

18

Forecast, Opportunities and Risk Report

19

Interim Financial Statements

22

Notes

28

1

  • Interim Report 1st Half 2021

The Salzgitter Group in Figures

H1 2021

H1 2020

+/-

Crude steel production

kt

3,377.6

2,952.7

424.9

External sales

€ m

4,435.5

3,631.0

804.5

Strip Steel Business Unit

€ m

1,198.1

902.8

295.3

Plate/Section Steel Business Unit

€ m

445.5

363.2

82.3

Mannesmann Business Unit

€ m

530.4

494.5

35.9

Trading Business Unit

€ m

1,538.1

1,229.2

308.9

Technology Business Unit

€ m

639.3

574.6

64.7

Industrial Participations/Consolidation

€ m

84.1

66.7

17.5

EBIT before depreciation and amortization (EBITDA)

€ m

478.6

49.7

428.9

Earnings before interest and taxes (EBIT)

€ m

328.7

-99.0

427.7

Earnings before taxes (EBT)

€ m

305.7

-127.8

433.5

Strip Steel Business Unit

€ m

104.5

-69.2

173.7

Plate/Section Steel Business Unit

€ m

-26.9

-27.0

0.0

Mannesmann Business Unit

€ m

-15.5

-22.7

7.2

Trading Business Unit

€ m

149.3

-15.8

165.1

Technology Business Unit

€ m

32.5

-10.6

43.0

Industrial Participations/Consolidation

€ m

61.8

17.4

44.4

Consolidated result

€ m

230.6

-144.7

375.3

Earnings per share - basic

4.20

-2.70

6.90

Return on capital employed (ROCE)1)

%

16.4

-6.3

22.7

Cash flow from operating activities

€ m

222.1

-121.5

343.6

Investments2)

€ m

160.4

209.9

-49.5

Depreciation/amortization2) 3)

€ m

-149.9

-148.7

-1.2

Total assets

€ m

9,000.7

8,124.4

876.3

Non-current assets

€ m

4,229.0

4,128.0

100.9

Current assets

€ m

4,771.7

3,996.3

775.4

of which inventories

€ m

2,181.1

2,047.0

134.1

of which cash and cash equivalents

€ m

544.6

401.5

143.0

Equity

€ m

2,998.5

2,795.5

203.0

Liabilities

€ m

6,002.2

5,328.9

673.3

Non-current liabilities

€ m

3,340.2

3,564.2

-224.1

Current liabilities

€ m

2,662.0

1,764.7

897.4

of which due to banks4)

€ m

844.7

949.1

-104.4

Net financial position on the reporting date5)

€ m

-422.5

-472.3

49.8

Employees

Personnel expenses

€ m

-871.2

-846.0

-25.2

Core workforce on the reporting date6)

Empl.

22,414

23,009

-595

Total workforce on the reporting date7)

Empl.

24,026

24,653

-627

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

Interim Report 1st Half 2021

Profitability of the Group and its Business Units

Earnings Situation within the Group

Q2 2021

Q2 2020

H1 2021

H1 2020

Crude steel production

kt

1,733.1

1,271.2

3,377.6

2,952.7

External sales

€ m

2,341.4

1,522.7

4,435.5

3,631.0

EBIT before depreciation and amortization

(EBITDA)

€ m

275.8

-7.6

478.6

49.7

Earnings before interest and taxes (EBIT)

€ m

200.1

-82.1

328.7

-99.0

Earnings before taxes (EBT)

€ m

188.4

-96.4

305.7

-127.8

Consolidated result

€ m

154.1

-101.0

230.6

-144.7

Return on capital employed (ROCE)1)

%

20.1

-10.0

16.4

-6.3

Investments2)

€ m

81.3

115.0

160.4

209.9

Depreciation/amortization2)

€ m

-75.6

-74.6

-149.9

-148.7

Cash flow from operating activities

€ m

113.3

21.3

222.1

-121.5

Net financial position3)

€ m

-422.5

-472.3

Equity ratio

%

33.3

34.4

  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

In the first half of 2021, the Salzgitter Group generated the highest pre-taxprofit (€ 305.7 million; H1 2020:

  • -127.8million) since the exceptional financial years 2007 and 2008. The drivers of this result consisted of the dynamic uptrend in rolled steel prices over the course of the first six months, coupled with a sustained recovery in the market that had a particularly positive impact on the performance of the Strip Steel and Trading business units. The contribution from the participating investment in Aurubis AG (€ 91.0 million; H1 2020: € 34.0 million) was once again very gratifying. The Salzgitter Group's external sales rose to € 4,435.5 million in the first six months of the financial year 2021, significantly outperforming the year-earlier period that was determined by the COVID-19 pandemic (H1 2020: € 3,631.0 million. An after-taxresult that stood at € 230.6 million (H1 2020: € -144.7 million) brings earnings per share to € 4.20 (H1 2020: € -2.70) and return on capital employed to 16.4% (H1 2020: -6.3%). The equity ratio remained at a very sound 33.3%. Despite the greater volume of business and higher prices for raw materials and finished products, the net financial position of € -422.5 million settled around the level of the year-end 2020 reporting date (€ -431.7 million). The value of the CO2 allowances procured for the fourth period of the EU greenhouse gas emission trading scheme that commenced on January 1, 2021 meanwhile amount to almost one billion euros.

3

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Salzgitter AG published this content on 11 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2021 05:35:03 UTC.