Salzgitter : Magazine accompanying the Annual Report 2023

MAGAZINE ACCOMPANYING THE ANNUAL REPORT

2023

#wemakeithappen

SHORT PORTRAIT

Salzgitter AG ranks as one of Germany's leading steel and technology groups. Pioneering the Circular Economy, we focus on the sustainable innovation and transformation of our products and processes in the business areas of steelmaking, steel processing, trading and technology.

CONTENT

Editorial	3
On the way to CO2-reduced production methods	4
Our transformation
Pioneering for Circular Solutions
Multiple partnerships	6
Interview with the chairman of the Supervisory Board
"We will achieve our goals"	10
Tradition and Modernity
25 years of new Salzgitter AG	12
Equity Story
Six good reasons in favor of Salzgitter AG	14
Goodbye and Welcome
Handover on the Executive Board	16
Our business units
Broad positioning - maximum performance	18
Internationalization
Our locations worldwide	24
SALCOS® - the name says it all
Milestones 2023	26
Andrew Morlet and Gunnar Groebler in conversation
Transitioning to a Circular Economy	30
Salzgitter as an employer
Be part of something big!	34
Key figures 2023	38
Imprint	39

3

The year 2023 will also go down in history books as a special one - and unfortunately also as a year characterized by escalating political crises and armed conflicts, which, along with appalling human suffering, entailed economic upheavals.

So how can we as Salzgitter AG assess this financial year? Despite the challenges men- tioned, we have remained decidedly on course and advanced the "Salzgitter AG 2030" Group strategy. We are the first German steel company to receive public funding for its transformation program geared to low CO2 steel production. The symbolic presentation of the funding cheque at the Hannover Messe in spring 2023 by Federal Minister for Economic Affairs and Climate Action Robert Habeck and Lower Saxony's Minister President Stephan Weil confirms that we are charting the right course. At the same time, this is an incentive and an obligation to continue to consistently drive our SALCOS® - Salzgitter Low CO2 Steelmaking transformation program forward. This includes further partnering agreements with customers who are already securing green steel volumes and safeguarding the basic pig iron production at the steelworks in Salzgitter with the relining of blast furnace A. This is the last general overhaul of a blast furnace in Salzgitter and should be viewed as a turning point. Not far from the cluster of blast furnaces, the steelworks are transforming at a rapid pace and construction work for the new facilities is in full swing

- #wemakeithappen is our slogan.

But the Salzgitter Group is far more than just the steel sector. The Technology Business Unit closed the financial year with a record result and is excellently positioned with its stable customer relationships in the international beverage industry.

In concluding, I believe a few comments on the current political discussions would be appropriate: Salzgitter AG is an internationally active group that engages in long-standing national and international partnerships with customers and suppliers. Openness to the world is an absolutely essential part of our business model. There are excellent employees with a migration background active at all of our Group companies. In many cases, we are finding the skilled employees that we lack outside of Germany. For this reason alone, it is very clear to us: Political concepts geared towards "renationalization" are backward-looking and inflict considerable damage on Germany as a business location. Moreover, such concepts are also incompatible with our values and convictions.

Best regards,

Gunnar Groebler

4

In pursuing our SALCOS® program we are not only making an effective contribution to achieving the defined climate goals, but are also securing the Salzgitter steel location and its jobs for the decades to come.

5

BY IMPLEMENTING SALCOS®, WE WANT TO TRANSFORM OUR ENTIRE STEEL PRODUCTION TO CO2-REDUCED PRODUCTION OPERATIONS BY 2033.

6

PIONEERING FOR CIRCULAR SOLUTIONS

"Partnering for Transformation" is an essential component of our "Salzgitter AG 2030" strategy and is geared to securing our value chain with the help of strategic partnerships. In this context, we are pursuing the overarching goal of achieving market leadership in "Circular Economy Solutions".

Industry in its entirety, and therefore the Salzgitter Group, is undergoing an intensive transformation phase that is enabling new forms of cooperation. Cross-industry cooperation offers Salzgitter AG and its partners economic opportunities spreading across the entire value chain. Strategic partnership agreements enable us to secure and actively develop production relevant reference points at an early stage.

7

1CLEAN ENERGY GENERATED BY OFFSHORE WIND FARMSS

Salzgitter Flachstahl GmbH and Iberdrola Deutschland have now inked a long-term electricity supply agree- ment. The electricity will be generated by the "Baltic Eagle" offshore wind farm currently under construction in the German Baltic Sea. By concluding this so-called Power Purchase Agreement (PPA), Salzgitter Flachstahl GmbH has secured the supply of 114 megawatts (MW) of green electricity from the new offshore wind farm, which is due to be connected to the grid at the end of 2024, for a total period of 15 years. Once operational, Baltic Eagle will generate a total capacity of 476 MW and is currently being built around 30 kilometers northeast of the island of Rügen.

8

2GREEN STEEL FOR TRADERS

The SPAETER Group and Salzgitter Flachstahl GmbH have forged a partnering agreement for the supply of green steel. Accordingly, the company, which was founded in 1875, is already securing CO2-reduced steel today, which will be produced and supplied as part of SALCOS® as from the year 2026. In future, customers of the SPAETER Group will be able to purchase green SALCOS® steel at all the company's locations world- wide. In this way, the steel trading specialist is supporting its customers in optimizing the product carbon footprint (PCF) of the steel products they purchase.

DECARBONIZATION OF VALUE CHAINS CAN ONLY

BE ACHIEVED TOGETHER

Mercedes-

Grupo

WAELZHOLZ

Benz

Arania

BMW

VW

Mendritzki

2021

Group

VOLVO

2022

ANGLO

Ørsted

tenova

LKAB

RESONAC

AMERICAN

uniper

RWE

Rio

Tinto

9

3THE CIRCULAR ECONOMY AND RESOURCE MANAGEMENT

Joining forces with the local energy supplier WEVG, Avacon AG and Salzgitter AG are endeavoring to transform the heat supply of the city of Salzgitter and lead the city to a climate-neutral future. Salzgitter- Lebenstedt already has a well-dimensioned district heating line in place, connecting the integrated steelworks of Salzgitter AG with the district. The district heating is generated by the Salzgitter Flachstahl GmbH power plant. This is where the by-product gases from steel production (blast furnace, steelworks and coke oven gas) are mainly utilized. This energy, which is already very climate-friendly today, will increasingly be replaced by industrial waste heat from the new production facilities as the transformation of Salzgitter AG's steelworks advances. As part of the SALCOS® - Salzgitter Low CO2 Steelmaking program, the Group is converting the Salzgitter steel location into a green steel production facility by 2033. This will also ensure the supply of climate-neutral district heating in the future, as well as enabling its further expansion.

						Customer
Ford	Mubea	EMW		Siemens	Wagon
BILSTEIN Gamesa	Automotive
GRI	Miele	STAHLO	B/S/H	SPAETER Klöckner	Snop
Group	& Co	Automotive

2023

PRIMETALS	EnBW	TenneT
	ENGIE	IBERDROLA

Energy, raw materials & technology

10

»WE WILL ACHIEVE

OUR GOALS.«

Heinz-Gerhard Wente, Chairman of the Supervisory Board of Salzgitter AG since 2016, speaks on his role in times of industrial change, the goal of climate neutrality and the values that make all the difference.

You joined the Supervisory Board of Salzgitter AG fairly soon after you stepped down from the Executive Board of Continental AG in 2015. What attracted you to the Supervisory Board assign- ment?

When I was approached in 2015, I first thought, oh, so this is the obligatory offer that comes along when you retire and are no

longer in demand on the front line. I really did some "soul-searching"

• and came to the result that the Supervisory Board can be very important in our two-tier system if it interacts efficiently with the
  Executive Board in a trust-based manner. And it was clear to me that the things that were important to me during my professional career also had to be in place and further developed in this role: trusting cooperation within the team, with clearly defined responsibilities in the relationship between the Exec- utive Board and the Supervisory
  Board. Being of assistance in these matters definitely appealed to me.

Do you feel that the work of the Supervisory Board has changed as a result of the transformation? Yes, because it is the dominant topic in the economy and for us in particular. This is because we are transforming the entire com- pany, in other words, strategically renewing it. Right from the very outset, I was prepared to deal with strategic aspects, in other words, the challenging transformation, in addition to the typical tasks of the Supervisory Board in the meaning of a monitoring function for the Executive Board, that is controlling functions in terms of expediency and efficiency. Today, guiding

decisions and accompanying­and