Salzgitter : Quarterly Statement 3 Months 2021

3MQuarterly Statement

3 Months 2021

Quarterly Statement 3 Months 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	5
Plate / Section Steel Business Unit	8
Mannesmann Business Unit	10
Trading Business Unit	11
Technology Business Unit	12
Industrial Participations / Consolidation	13
Financial Position and Net Assets	14
Employees	15
Forecast, Opportunities and Risk Report	17
Interim Report	20
Notes	24

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• Quarterly Statement 3 Months 2021

The Salzgitter Group in Figures

				Q1 2021		Q1 2020		+/-
Crude steel production		kt		1,644.5	1,681.5		-37.0
External sales		€ m		2,094.1		2,108.3		-14.2
Strip Steel Business Unit		€ m		606.4		566.2		40.2
Plate/Section Steel Business Unit		€ m		214.4		194.5		19.9
Mannesmann Business Unit		€ m		256.6		295.9		-39.3
Trading Business Unit		€ m		673.3		703.4		-30.1
Technology Business Unit		€ m		300.9		310.3		-9.4
Industrial Participations/ Consolidation		€ m		42.5		38.0		4.5
EBIT before depreciation and amortization (EBITDA)		€ m		202.8		57.2		145.6
Earnings before interest and taxes (EBIT)		€ m		128.6		-16.9		145.5
Earnings before taxes (EBT)		€ m		117.3		-31.4		148.7
Strip Steel Business Unit		€ m		43.1		-6.8		49.9
Plate/Section Steel Business Unit		€ m		-21.0		-4.2		-16.9
Mannesmann Business Unit		€ m		-7.5		-4.6		-2.9
Trading Business Unit		€ m		44.7		0.3		44.4
Technology Business Unit		€ m		25.0		5.2		19.8
Industrial Participations/ Consolidation		€ m		33.0		-21.3		54.4
Consolidated result		€ m		76.6		-43.7		120.3
Earnings per share - basic		€		1.38		-0.83		2.21
Return on capital employed (ROCE)1)		%		13.2		-2.4		15.6
Cash flow from operating activities		€ m		108.8		-142.8		251.6
Investments2)		€ m		79.1		94.9		-15.8
Depreciation/amortization2) 3)		€ m		-74.2		-74.1		-0.1
Total assets		€ m		8,599.5	8,429.8	169.7
Non-current assets		€ m		4,205.8		4,024.8		181.0
Current assets		€ m		4,393.7		4,405.0		-11.3
of which inventories		€ m		1,892.5		2,097.3		-204.8
of which cash and cash equivalents		€ m		578.4		464.5		113.9
Equity		€ m		2,834.6		2,976.5		-141.8
Liabilities		€ m		5,764.9		5,453.3		311.5
Non-current liabilities		€ m		3,342.1		3,311.8		30.3
Current liabilities		€ m		2,422.7		2,141.5		281.2
of which due to banks4)		€ m		905.5		814.9		90.6
Net financial position on the reporting date5)		€ m		-447.1		-415.4		-31.7
Employees
Personnel expenses		€ m		-424.3		-439.0		14.7
Core workforce on the reporting date6)		Empl.		22,475		23,308		-833
Total workforce on the reporting date7)		Empl.		24,136	25,014		-878
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 3 Months 2021

Profitability of the Group and its Business Units

Earnings Situation within the Group

				Q1 2021		Q1 2020
Crude steel production		kt		1,644.5	1,681.5
External sales		€ m		2,094.1		2,108.3
EBIT before depreciation and amortization (EBITDA)		€ m		202.8		57.2
Earnings before interest and taxes (EBIT)		€ m		128.6		-16.9
Earnings before taxes (EBT)		€ m		117.3		-31.4
Consolidated result		€ m		76.6		-43.7
Return on capital employed (ROCE)1)		%		13.2		-2.4
Investments2)		€ m		79.1		94.9
Depreciation/amortization2)		€ m		-74.2		-74.1
Cash flow from operating activities		€ m		108.8		-142.8
Net financial position3)		€ m		-447.1		-415.4
Equity ratio		%		33.0	35.3

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 generated earnings before taxes of € 117.3 million in the first quarter of the financial year 2021 (Q1 2020: € -31.4 million). Against the backdrop of a sustained recovery in the market and an uptrend in steel prices, this performance was especially attributable to the gratifying results of the Strip Steel and Trading business units, as well as a contribution of € 42.5 million from Aurubis AG, a participating investment included at equity (IFRS accounting) (Q1 2020: € -18.7 million). Almost all segments reported a steady increase in their monthly results over the course of the quarter. The Salzgitter Group's external sales remained stable compared with the year-earlier level (€ 2,094.1 million; Q1 2020: € 2,108.3 million). An after-tax result that stood at € 76.6 million (Q1 2020: € - 43.7 million) brings earnings per share to € 1.38 (Q1 2020: € -0.83) and return on capital employed to 13.2% (Q1 2020: -2.4%). The equity ratio amounted to 33.0 % (Q1 2020: 35.3%). In addition,

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• compared with the respective costs of procurement - the hidden reserves not evident from the balance sheet from the acquisition of our participating investment in Aurubis AG and the CO2 allowances purchased as a precautionary measure for the fourth period of the EU greenhouse gas emission trading scheme that commenced on January 1, 2021, meanwhile amount to over one billion euros.