Presentation of the Group - Salzgitter AG

 
Presentation of the Group - Salzgitter AG
english

                          Presentation of the Group

SZAG Investor Relations
Presentation of the Group - Salzgitter AG
1 Salzgitter Group
          2 Market Situation
          3 Business Units
          4 Strategy

                               SZAG Investor Relations
          5 Guidance
english
Presentation of the Group - Salzgitter AG
Salzgitter Group

          Global Presence

            Strip Steel
            Plate / Section Steel

            Mannesmann

            Trading

            Technology

                                                                                                                       SZAG Investor Relations
                                    Crude steel production 2018: 7.0 million tons; trading volume: 4.5 million tons;
                                       Among the top 3 producers of beverage filling and packaging machinery
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Presentation of the Group - Salzgitter AG
Salzgitter Group

          Diversified product portfolio

                                                    Steel and Technology
                      Strip products                                                   Line pipes

                      Steel Service Center                                       Precision tubes

                      Heavy plates                                                Stainless tubes

                      Sections                                              Stockholding trading

                      Engineering services                                   International trading

                      Injection molding machinery                          Beverage filling plants

                                                                                                     SZAG Investor Relations
english

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Presentation of the Group - Salzgitter AG
Salzgitter Group

           Group structure and key data FY 2018

                                                                         Salzgitter AG Group

                                                            External Sales cons.:   € 9.3 billion   Employees: 23,523
                                                            EBT:                    € 347 million

                                                       Plate /
                 Strip Steel                                                 Mannesmann                  Trading           Technology
                                                    Section Steel
           External Sales:                        External Sales:        External Sales:          External Sales:    External Sales:
            € 2.3 billion                           € 1.0 billion           € 1.1 billion             € 3.3 billion       € 1.3 billion
           EBT:                                   EBT:                   EBT:                     EBT:               EBT:
            € 205.8 million                        € 24,8 million          € -5,4 million            € 50,5 million      € 43,1 million
           Employees:                             Employees:             Employees:               Employees:         Employees:
            6,182                                   2,451                   4,675                     2,109               5,490

                                                                                                                                            SZAG Investor Relations
english

          All data about employees as per 12/31                                                                                             5
Presentation of the Group - Salzgitter AG
Salzgitter Group

            Group structure

                                                                                       Salzgitter AG

                                                                Salzgitter Mannesmann / Salzgitter Klöckner-Werke

                   Strip Steel          Plate / Section Steel         Mannesmann                         Trading              Technology       Industrial Participations /
                       BU                        BU                       BU                               BU                     BU                Consolidation

           Salzgitter               Ilsenburger                                                Salzgitter Mannesmann                          Verkehrsbetriebe Peine-
                                                                Mannesmannröhren-Werke                                 KHS
           Flachstahl               Grobblech                                                  Handel                                         Salzgitter

           Salzgitter               Salzgitter Mannesmann                                      Salzgitter Mannesmann
                                                                Europipe                                               KHS Corpoplast         Hansaport
           Europlatinen             Grobblech                                            50%   Stahlhandel                                                              51%

                                    Peiner                                                     Salzgitter Mannesmann   Klöckner DESMA         Gesis Gesellschaft für
           Salzgitter Bauelemente                               Mannesmann Line Pipe
                                    Träger                                                     International           Elastomertechnik       Informationssysteme

           Salzgitter Mannesmann    DEUMU Deutsche                                             Universal Eisen
                                                                Mannesmann Grossrohr                                   DESMA Schuhmaschinen   Telcat
           Stahlservice             Erz- und Metall-Union                                      und Stahl

                                                                                                                                              Salzgitter Mannesmann
                                                                Mannesmann Precision Tubes
                                                                                                                                              Forschung

                                                                                                                                              Salzgitter Automotive
                                                                Mannesmann Stainless Tubes
                                                                                                                                              Engineering

                                                                Hüttenwerke Krupp
                                                                                                                                              Salzgitter Hydroforming
                                                                Mannesmann               30%

                                                                                                                                                                               SZAG Investor Relations
                                                                Borusan
                                                                                                                                              Aurubis
                                                                Mannesmann Boru          23%                                                                            >25%

          BU = Business Unit
english

          As of December 2018
                                                                                                                                                                               6
Presentation of the Group - Salzgitter AG
Salzgitter Group

            External sales 2018 by customer industries

          13%                                                                                                                                    15%
          Other                                                                                                                   Vehicle construction

          12%                                                                                                                                    12%
          Food and beverage industry                                                                                             Construction industry

          6%                                                                                                                                       4%
          Mechanical engineering                                                                                                          White goods,
                                                                                                                                  electrical equipment

          6%                                                                                                                                       3%
          Re-rollers                                                                                                         Energy sector and utilities

          5%                                                                                                                                     24%
          Tubes producers                                                                                               Traders, Steel-Service-Centers

                                                                                                                                                           SZAG Investor Relations
                                                                                            Broad customer base
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          Only from entities within the group of consolidated companies of Salzgitter Group, excluding EUROPIPE Group                                      7
Presentation of the Group - Salzgitter AG
Salzgitter Group

            External sales 2018 by regions

          5%
          Other

          7%
          Asia

          13%
          Americas                                                                                                                             48%
                                                                                                                                             Germany
          3%
          Other Europe

          24%
          Other EU

                                                                                                                                                       SZAG Investor Relations
                                                                        Share of ex-Germany sales by consignee 52%
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          Sales by consignee (only from entities within the group of consolidated companies of Salzgitter Group, excluding EUROPIPE-Group)             8
Presentation of the Group - Salzgitter AG
Salzgitter Group

          Key data per 2018/12/31

                                                                              FY 2018            FY 2017      Δ 2018 – 2017

          Crude steel production                                  kt          7,039.4             6,955.2             84.2

          Consolidated Sales                               € million          9,278.2             8,990.2            288.0

          Earnings before tax                              € million            347.3              238.0             109.3

          Earnings after tax                               € million            277.7              193.6              84.1

          Earnings per share (undiluted)                          €              5.06               3.52              1.54

          ROCE                                                   %               10.3                   8.6            1.7

          Core workforce (12/31)                                               23,523             23,139               384

                                                                                                                              SZAG Investor Relations
                                    Salzgitter-Konzern mit bestem Ergebnis der vergangenen zehn Jahre
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Presentation of the Group - Salzgitter AG
Salzgitter Group

          Balance sheet per 2018/12/31
                      € million

                                                  8,757                                                        8,757
                                                                      Goodwill:      Equity ratio:
                        Property, plant and                            €6m             38.0%                             Equity
                       equipment and other                                                                      3,332
                         non-current assets       3,836
                                                                        Assets to equity: 87%

                                                                                                                         Pension
                                                                                                                         provisions
                                    Inventories                                                                 2,275
                                                  2,327
                                                           € 679 m                                   € 269 m             Other non-current
                                     Cash and                                                                            liabilities
                                                                                                                761
                                     securities                       Net position due to banks:
                                                   569
                                                                               € 192 m
                                  Other current            € 200 m                                   € 418 m
                                                                                                                2,389    Current liabilities
                                        assets    2,025

                                                  Aktiva                                                       Passiva

                                                                                                                                                SZAG Investor Relations
                                                                     Sound financial basis
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                                                                                                                                               10
Salzgitter Group

            Salzgitter Group Investments and Depreciation / Amortization

                             52                                                                 15                               49          44

                                                    411
                            330                               340                   352         342                          342      338    340
             270                                                                                                   287

               2014                                 2015                              2016                          2017              2018
                                     Investments1              Scheduled depreciation                 Unscheduled depreciation

                                                                                                                                                    SZAG Investor Relations
                                                                                        Focus on expansion investments
english

          1 Property,   plant and equipment and intangible assets, excluding financial assets                                                      11
Salzgitter Group

            History

                                               Strip Steel BU                    1998 Salzgitter AG                 Mannesmann BU                  Technology

                                           1937 Construction                   1989 Name change to
                                          Hüttenwerk Salzgitter                                                    2017 Relaunch of         2007 Integration into SZAG
                                            (Part of Reichswerke)               Preussag Stahl AG                 the brand presence

          First broad-flanged                      1964                                                            2000 Liquidation of             1992 - 1995
                                                                                     1970 Merger
          beam mill in Peine, 1914      Salzgitter Hüttenwerk AG                 to form Stahlwerke               Mannesmann Group,          Insolvency, restructuring        Cross-rolling process sketch of
                                        (since 1961 part of state-owned
                                               Salzgitter AG old)                Peine-Salzgitter AG            Integration Tubes into SZ   and end of steel production         Max Mannesmann, pre 1885

                                         Plate / Section Steel BU                                               1912 first attempts with
                                                                                                                 stainless steel tubes                  1977
                                                                             1880 Acquisition of Peiner
                                                                                                                1897 Start of production    First acquisition of part. in
                                        llsenburg: est. 1595,                   Walzwerk, est.1872
                                                                                                                  welded steel tubes        filling technology (H & K)
                                        plate since 1948
                                        Mülheim an der Ruhr:
                                        plate since 1882                                                           1886 First process                1923
                                                                                  1858 Foundation
                                                                                                                    for the rolling of      Foundation of steel group
          Demonstrations to save                                                  Ilseder Hütte AG
                                        Peine: Sections since 1876                                                seamless steel tubes        Klöckner-Werke AG
          the smelting works in                                                                                                                                                      Bottle filling line Phönix
          Salzgitter, c. 1950                                                                                                                                                                           c. 1936

                                                                                                                                                                                                                   SZAG Investor Relations
                                                                                                                                                                                 Privatization and acquisition
                                                                                                                                                                            of the Ilsenburg rolling mill, 1992
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          1989 privatization with the                                     First blast furnace in Ilsede, 1861         Stock listing 1998
          sale to Preussag AG                                                                                                                                                                                     12
1 Salzgitter Group
          2 Market Situation
          3 Business Units
          4 Strategy

                               SZAG Investor Relations
          5 Guidance
english
Market Situation

            Economic development in the European Union

                                                     Industrial production in selected countries of the EU (Jan. 2007 = 100)
                  120

                  110

                  100

                   90

                   80

                   70

                   60
                        2007         2008          2009           2010             2011           2012   2013   2014   2015   2016   2017   2018   2019
                                 Germany           GB       France         Italy          Spain

                                                                                                                                                           SZAG Investor Relations
                                      The trend of the previous years continued: Slightly improving EU industrial production,
                                        Germany despite deterioration in the second half of 2018 remains relatively strong
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          Source: Eurostat, own research, last figure from February 2019                                                                                  14
Market Situation

           Raw materials prices

                    Iron ore                                      Coking coal                                    Steel scrap
           (62% Fe CFR China, US$/dmt)                        (FOB Australia, US$/t)                           (grade 2/8, €/t)
          100                                           350                                           300

          90                                            300                                           280

          80                                            250                                           260

          70                                            200                                           240

          60                                            150                                           220

          50                                            100                                           200

                                                                                                                                   SZAG Investor Relations
                                       Volatile raw materials markets harbor risks, but also opportunities;
                              2019 price levels – especially for iron ore – expected to be above the average of 2018
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                                                                                                                                  15
Market Situation

           Steel prices

                               Spot prices Northern Europe                                                      Hot-rolled coil prices international
          (€/t) 900                                                                      (€/t)
                                                                                                 900

               800                                                                               800

               700                                                                               700

                                                                                 05/19

                                                                                                                                                                                 05/19
               600                                                                               600

               500                                                                               500

               400                                                                               400

               300                                                                               300
                      Jan 17    Jul 17       Jan 18        Jul 18       Jan 19                         Jan 17        Jul 17         Jan 18         Jul 18      Jan 19
             HRC EXW Ruhr        Plate EXW Ruhr       Medium sections                                           Northern Europe EXW Ruhr     USA EXW Indiana   China Schanghai

                                                                                                                                                                                   SZAG Investor Relations
                                         Following periods of rises, steel prices are consolidating since mid 2018;
                                          different trading policies result in tremendous regional price variations
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                                                                                                                                                                                 16
Market Situation

          International trade policy

                  American measures affecting the European Union                                Reaction of the European Union

           Since 2014: USA significantly increase number of anti-           June 1, 2018: WTO complaint filed against the Section
            dumping cases for steel products                                  232 tariffs of the United States, result remains to be seen
           March 26, 2018: Introduction of protective tariffs under the     July 19, 2018: Preliminary safeguard measures for a
            guise of “national security” (Section 232) in the U.S.; since     broad steel and tubes portfolio implemented
            June 1, 2018 these also apply to imports of steel from the
            EU                                                               February 2, 2019: Implementation of final safeguard
                                                                              measures
                         Comparison of imports 2018 vs. 2017                       Imports of finished steel products (1,000 t/month)
                                                                                 2,500

                                                                                 2,000

                                                     +3.2                                                              + 59%
                                                            +10%                 1,500
                                                      mt

                                                                                 1,000

                                                     -3.5   -13%                  500

                                                                                                                                                        SZAG Investor Relations
                                                      mt
                                                                                        -
                                                                                                2014            2016       2017        2018
                                                                                China       Ukraine    Russia    Turkey   India   South Korea   Rest
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           Source: Eurofer, Data per December 2018                                                                                                     17
1 Salzgitter Group
          2 Market Situation
          3 Business Units: Strip Steel
          4 Strategy

                                          SZAG Investor Relations
          5 Guidance
english
Strip Steel Business Unit

          Overview

                                      Capabilities                                     External sales by customer industry 2018
                                       Integrated steel works with three blast       1%                                                                 4%
                                        furnaces                                      Mechanical engineering                                           Other
                                       Approx. 4.7 mt/year crude steel capacity      16%                                                               35%
                                       Modern production plants                      Re-rollers                                        Vehicle construction
                                                                                      1%
                                       High processing competence (SSC)
                                                                                      Tube producers
                                      Core competences and products                                                                                      4%
                                       High-quality steel grades for sophisticated   32%                                               Construction industry
                                        applications                                  Traders                                                            7%
                                       Custom made solutions, e.g., hot-rolled       only from entities within the group of
                                                                                                                                                 White goods,
                                        and cold-rolled coil, galvanized and          consolidated companies of Salzgitter Group         electrical equipment

                                        coated sheet, laser-welded tailored            Key data FY 2018
                                        blanks, corrugated sheets, coffers,
                                        sandwich and acoustic elements
                                                                                       Consolidated Sales                          €m              2,341
                                       Customer focus through local presence
                                                                                       Earnings before taxes                       €m                 206

                                                                                       Core workforce (12/31)                                      6,182

                                                                                                                                                                 SZAG Investor Relations
                                           Established supplier of the demanding German automotive industry
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                                                                                                                                                                19
Strip Steel Business Unit

           Strip Products

          Salzgitter Flachstahl GmbH
          Germany; shareholder: SZAG 100%
           Hot-rolled coil, cold-rolled coil, electrogalvanized, hot dip
            galvanized and organic coated sheet                                     Supplier of premium OEMs
           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         2017
           Shipments                             kt            4,341        4,154

                                                                                                                SZAG Investor Relations
           Sales                                €m             2,887        2,652
           Employees                         12/31             5,666        5,587
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                                                                                                               20
Strip Steel Business Unit

           Processing

           Salzgitter Europlatinen GmbH
          Germany; shareholder: SZAG 100%
          Custom-made solutions: Laser welded
          Tailored Blanks for lighter car bodies

                                                                 2018              2017
           Sales                                   €m              71               77
           Employees                          12/31               122               117

           Salzgitter Bauelemente GmbH
          Germany; shareholder: SZAG 100%
          Corrugated sheets, coffers, sandwich a. acoustic elements for wall and
          roof constructions of commercial buildings

                                                                 2018              2017

                                                                                           SZAG Investor Relations
           Sales                                   €m              52               46
           Employees                          12/31                71               67
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                                                                                          21
Strip Steel Business Unit

           Steel Service Center

          Salzgitter Mannesmann Stahlservice GmbH
          Germany; shareholder: SZAG 100%
           Two locations
                                                                  Excellent position in the heart of
           Modern plants and processes                           Europe
           600,000 t/year processing capacity

                                                    2018   2017
          Shipments                          kt     584    598

                                                                                                        SZAG Investor Relations
          Sales                             €m      415    402
          Employees                       12/31     323    321
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                                                                                                       22
1 Salzgitter Group
          2 Market Situation
          3 Business Units: Plate / Section Steel
          4 Strategy

                                                    SZAG Investor Relations
          5 Guidance
english
Plate / Section Steel Business Unit

          Overview

                                   Capabilities                                  External sales by customer industry 2018
                                    Section steel:                                                                                                1%
                                                                                17%
                                     − Top-modern mini mill with two electric                                                     Vehicle construction
                                       arc furnaces                             Other                                                              8%
                                     − Annual crude steel capacity 1 mt         3%                                                Construction industry
                                                                                Mechanical engineering                                             5%
                                     − Two rolling mills for medium and heavy
                                       sections                                                                                            White goods,
                                                                                                                                   electrical equipment
                                    Plate:
                                                                                25%
                                                                                                                                                  41%
                                     − Two rolling mills for plate with         Tube producers
                                                                                                                                               Traders
                                       1.6 mt annual capacity                   only from entities within the group of
                                     − Plate width up to 4,800 mm               consolidated companies of Salzgitter Group

                                   Core competences and products                 Key data FY 2018
                                    High-strength, wear resistant and
                                     specialized steel grades                     Consolidated sales                         €m              1,026
                                    Medium and heavy sections, heavy plate
                                     incl. offshore and tube grades               Earnings before taxes                      €m               24.8

                                                                                  Core workforce (12/31)                                     2,451

                                                                                                                                                           SZAG Investor Relations
                                                   Plate: Broad range of high quality plate products
                                                           Section Steel: Efficient production
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                                                                                                                                                          24
Plate / Section Business Unit

           Heavy Plate

          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          2017
          Shipments                            kt             697          682

                                                                                   SZAG Investor Relations
          Sales                               €m              534          501
          Employees                         12/31             741          739
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                                                                                  25
Plate / Section Steel Business Unit

           Heavy Plate

          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       2017
          Shipments                                 kt        526       584

                                                                                SZAG Investor Relations
          Sales                                    €m         378       394
          Employees                              12/31        539       607
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                                                                               26
Plate / Section Steel Business Unit

           Sections

          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    2017
          Shipments                                 kt      1,022    997

                                                                             SZAG Investor Relations
          Sales                                    €m         619    523
          Employees                              12/31        785    783
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                                                                            27
Plate / Section Steel Business Unit

           Other Companies

           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             2017
           Sales                                   €m              678             627
           Employees                             12/31             378             378

                                                                                           SZAG Investor Relations
english

                                                                                          28
1 Salzgitter Group
          2 Market Situation
          3 Business Units: Mannesmann
          4 Strategy

                                         SZAG Investor Relations
          5 Guidance
english
Mannesmann Business Unit

          Overview

                               Capabilities                                     External sales by customer industry 2018
                                Own crude steel supply via 30%
                                                                                                                                                                            25%
                                 participation in Hüttenwerke Krupp
                                                                               40%                                                                         Vehicle construction
                                 Mannesmann GmbH
                                                                               Other
                                Plant for the production of semis for the                                                                                                   1%
                                 seamless tubes business                                                                                                   Construction industry
                               Core competences and products                   10%
                                                                                                                                                                            15%
                                Line Pipe: participation (50%) in the world   Mechanical engineering
                                                                                                                                                                  Energy sector
                                 market leader EUROPIPE; international         5%                                                                                   and utilities
                                 presence                                      Tube producers                                                                                4%
                                Precision Tubes: European market leader       only from entities within the group of                                                   Traders
                                Seamless Stainless Tubes: top player in       consolidated companies of Salzgitter Group, excluding EUROPIPE Group

                                 the world market                               Key Data FY 2018
                                Longitudinal and spiral welded large-
                                 diameter pipes, medium line pipes,              Consolidated Sales                                                   €m               1,119
                                 seamless and welded precision tubes,
                                 stainless tubes                                 Earnings before taxes                                                €m                 -5,4

                                                                                 Core workforce (12/31)                                                                4,675

                                                                                                                                                                                     SZAG Investor Relations
                                     Global player in the high quality segment of the global tubes market
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                                                                                                                                                                                    30
Mannesmann Business Unit

           Line Pipes

          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       2017
          Shipments                           kt             895      1.099

                                                                               SZAG Investor Relations
          Sales                              €m              953      1.042
          Employees                       12/31            1.048      1.031
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                                                                              31
Mannesmann Business Unit

           Line Pipes

           Mannesmann Line Pipe GmbH
          Germany; shareholder: SZAG 100%
          HFI-welded medium line pipes incl.
          plastic- and cement coatings

                                                                  2018      2017
           Sales                                 €m                285      261
           Employees                           12/31               364      385

           Mannesmann Großrohr GmbH
          Germany; shareholder: SZAG 100%
          Spiral-welded large-diameter pipes made of hot-rolled coil

                                                                  2018      2017

                                                                                    SZAG Investor Relations
           Sales                                 €m                    67    78
           Employees                           12/31               125      124
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                                                                                   32
Mannesmann Business Unit

           Precision Tubes

          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                     Structural
                                                                                                                                        Pump case
                                                                                                                        Airbags
            sector                                                                          tube                                                    Stabilizers

           State of the art push bench plant for the production of hollows                                                                                         Suspension
                                                                                                                                                                    components

           Market leader in the EU28 (24% market share)                              Engine-
                                                                                      components

           10 locations in D, F, NL and Mexico                                                                                                        Seat belt-     IHU/IHV
                                                                                                                                                       fixings
                                                                                       Camshafts

                                                                                                         Drivetrain and steering components                           Drive shafts

                                                            2018              2017

          Shipments                            kt             276              282

                                                                                                                                                                                      SZAG Investor Relations
          Sales                              €m               497              477
          Employees                        12/31            2,287             2,313
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                                                                                                                                                                                     33
Mannesmann Business Unit

           Seamless Stainless Tubes

          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   2017

          Shipments                           kt               23     25

                                                                             SZAG Investor Relations
          Sales                              €m               245    237
          Employees                        12/31          1.000      935
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                                                                            34
Mannesmann Business Unit

           Significant shareholdings

          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   2017

                                                                                SZAG Investor Relations
          Sales                               €m            2,468      2,515
          Employees                         12/31           2,980      2,907
english

                                                                               35
1 Salzgitter Group
          2 Market Situation
          3 Business Units: Trading
          4 Strategy

                                      SZAG Investor Relations
          5 Guidance
english
Trading Business Unit

          Overview

                                  Capabilities                                      External sales by customer industry 2018
                                   74 sites in 30 countries                       7%                                                                      14%
                                                                                   Mechanical engineering                                                 Other
                                   Own distribution network for steel products
                                    with warehousing sites in Europe               5%                                                                       5%
                                                                                   Re-rollers                                             Vehicle construction
                                   Processing group specialized on heavy          2%
                                                                                                                                                           29%
                                    plate products                                 Tube producers
                                                                                                                                         Construction industry
                                   International trading                          32%                                                                      3%
                                  Core competences and products                    Traders                                                         White goods,
                                                                                                                                           electrical equipment
                                   Global presence in all relevant regions with                                                                            2%
                                    own representation                             only from entities within the group of            Energy sector and utilities
                                                                                   consolidated companies of Salzgitter Group
                                   Distribution channel for Salzgitter Group
                                    products                                        Key Data FY 2018
                                   Procurement channel for Salzgitter Group
                                    works                                           Consolidated Sales                          €m                   3,268
                                   Value add services for customers
                                                                                    Earnings before taxes                       €m                        51

                                                                                    Core workforce (12/31)                                           2,109

                                                                                                                                                                    SZAG Investor Relations
                                   High customer and market orientation through a global sales organization
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                                                                                                                                                                   37
Trading Business Unit

          Salzgitter Mannesmann Handel Group

                                                               Salzgitter Mannesmann Handel
                                            Shipments 2018: 4.3 mt                          Sales 2018: € 3.3 billion

          Trading                                 Stockholding                                                          Agencies

          International
                                                  Salzgitter Mannesmann Stahlhandel   Europa                            Europa
          10 Companies
                                                  GmbH, Düsseldorf (SMSD)             7 Companies                       4 Agencies
          2 Rep. offices

                                                  20 Branches with warehouses and
          Salzgitter Mannesmann International
                                                  further processing (incl. 4 flame
          GmbH, Düsseldorf (SMID)
                                                  cutting plants), 4 Sales offices

          Salzgitter Mannesmann International      Stahl-Center Baunatal GmbH,
          (USA) Inc., Houston (SMIH)               Baunatal (SCB)

          Salzgitter Mannesmann International
          (Canada) Inc., Vancouver (SMIV)

                                                                                                                                      SZAG Investor Relations
                                                     63 locations in 30 countries with 1,739 employees
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                                                                                                                                     38
Trading Business Unit

          Universal Eisen und Stahl Group

                                                                            Universal
                                        Shipments 2018: 0.2 mt                            Sales 2018: € 0.2 billion

          North America                                                                               Europe

                                                              Universal
          UNIVERSAL STEEL AMERICA, Inc., Houston, USA                                                      Universal Aciers Sarl, Couzon au Mont d'Or, France
                                                              Eisen und Stahl GmbH, Neuss (UES)

                                                                                                           UNIVERSAL STEEL HOLLAND B.V., SK
          1 Branch in Chicago                                 5 Branches
                                                                                                           Papendrecht, Netherlands

                                                                                                           UNIVERSAL-Stal Sp. z o.o, Gliwice, Poland

                                                                                                           UNIVERSAL OCEL spol. s.r.o., Prague,
                                                                                                           Czech Republic

                                                                                                                                                                 SZAG Investor Relations
                                                        11 locations in 6 countries with 370 employees
english

                                                                                                                                                                39
1 Salzgitter Group
          2 Market Situation
          3 Business Units: Technology
          4 Strategy

                                         SZAG Investor Relations
          5 Guidance
english
Technology Business Unit

          Overview

                                 Capabilities                                    External sales by customer industry 2018
                                  17 Production plants worldwide               3%                                                              1%
                                  60 Service sites
                                                                                Vehicle                                                 White goods,
                                  > 90% of sales outside of Germany            construction                                   electrical equipement
                                 Core competences and products
                                  KHS: among the top 3 global suppliers for                                                                    9%
                                   filling and packaging machines; technology   87%
                                                                                                                             Mechanical engineering
                                   and innovation leadership                    Food and beverage
                                  DESMA Elastomertechnik: Global leader        industry
                                   for rubber and silicon injection molding
                                   machines                                     only from entities within the group of
                                                                                consolidated companies of Salzgitter Group
                                  DESMA Schuhmaschinen: World market
                                   leader for the production of machines for     Key data FY 2018
                                   the production of shoes and shoe soles
                                  Turn-key lines, single machines and           Consolidated Sales                          €m             1,338
                                   service
                                                                                 Earnings before taxes                       €m              43.1

                                                                                 Core workforce (12/31)                                     5,490

                                                                                                                                                        SZAG Investor Relations
                              Top 3 producer for filling and packing industry, world market leader for rubber and
                                         silicon injection molding as well as direct soling machines
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                                                                                                                                                       41
Technology Business Unit

           Filling and packaging

           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              2017

                                                                                              SZAG Investor Relations
           Sales                                  €m               1,161             1,138
           Employees                            12/31              4,714             4,648
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                                                                                             42
Technology Business Unit

           Special machinery

          Klöckner DESMA Elastomertechnik Group
          World market leader for rubber and silicone injection molding
          machinery

                                                            2018          2017
          Sales                              €m              116          100
          Employees                        12/31             552          530

          DESMA Schuhmaschinen GmbH
          World’s largest producer of machines for the fabrication of
          shoes and shoe soles

                                                            2018          2017

                                                                                  SZAG Investor Relations
          Sales                              €m               62           47
          Employees                        12/31             224          208
english

                                                                                 43
1 Salzgitter Group
          2 Market Situation
          3 Industrial Participations
          4 Strategy

                                        SZAG Investor Relations
          5 Guidance
english
Industrial Participations

          Overview

                                       Comprises activities that are not directly     Derivation of pre-tax result 2018
                                       allocated to a business unit
                                                                                      in € million

                                       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                            Key data FY 2018

                                        Shareholdings:                               Consolidated sales                  €m    186
                                         − Aurubis
                                                                                      Earnings before taxes               €m     28
                                         − Hansaport
                                                                                      Core workforce (12/31)                   2,616

                                                                                                                                        SZAG Investor Relations
                                      Gratifying contribution from the service companies and the Aurubis investment
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                                                                                                                                       45
Industrial Participations

           Engineering

          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

                                                                               SZAG Investor Relations
english

                                                                              46
Industrial Participations

              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

                                                                               SZAG Investor Relations
          1   SZAG share: 51%
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                                                                              47
Industrial Participations

           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

          GESIS Gesellschaft für Informationssysteme
          Integration of business processes into one uniform IT-solution
          that reflects the entire workflow, Electronic data processing
          center capacities and
          the internet-based eService platform as a unified hub for order
          processing are offered for group companies and external clients

                                                                             SZAG Investor Relations
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                                                                            48
Industrial Participations

          Aurubis-Participation

          Aurubis Dividend (€/Share)
          1.80

          1.60                                                                                                                 1.55
                                                                                                                   1.45
          1.40                                        1.35                                 1.35
                                                                                                       1.25
                                         1.20
          1.20                                                     1.10                                                                     SZAG shareholding: 25.50%
                             1.00                                              1.00
          1.00                                                                                                                               (per December 31, 2018)

          0.80
                                                                                                                                            Net dividend received since
                 0.65                                                                                                                        2009: € 106.5 million
          0.60                                                                                                                               (per FY17/18)
          0.40

          0.20

          0.00
                 2008/2009

                             2009/2010

                                         2010/2011

                                                       2011/2012

                                                                   2012/2013

                                                                               2013/2014

                                                                                           2014/2015

                                                                                                       2015/2016

                                                                                                                   2016/2017

                                                                                                                               2017/2018

                                                                                                                                                                            SZAG Investor Relations
                                                     Since 2008 successful shareholding in the leading European copper producer
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                                                                                                                                                                           49
1 Salzgitter Group
          2 Market Situation
          3 Business Units
          4 Strategy

                               SZAG Investor Relations
          5 Guidance
english
Strategy

          Strategy – review

                                                                                   Structural measures 2012 – 2018

                                                                     “Salzgitter AG 2015”                  Other programs
                                                                                                           (since end of 2016 combined
                                                                                                           under FitStructure SZAG)

                                                                        2012 – 2016
                                                                     € 260 million p.a.                    € 350 million p.a.

                                                                     > € 600 million € p.a. earnings improvement potential realized

                                                                                                                                          SZAG Investor Relations
                              Initial Emphasis inevitably on restructuring and cost reduction measures
english

                                                                                                                                         51
Strategy

          What we envisage for the coming years – examples

          Growth – additive earnings contributions of around € 180 million p.a. planned for 2019 to 2021ff

                                                                                               Trading
                                                                                               ▸ Expansion of the digitalization and pre-
           Strip Steel                                                                         processing activities as well as the
           ▸ Growth in target segments and                                                     warehousing presence in Europe
           expansion of the product portfolio in
           the premium sector
                                                                                               Mannesmann
                                                                                               ▸ Internationalization and extension
           Plate / Section Steel                                                               of the product range
           ▸ Increase of the share of higher
           quality grade such as wear-resistant
                                                                                               Technology
           and high-strength plate
                                                                                               ▸ Strengthening of core segments,
                                                                                               focusing of product development

                                                                                                                                             SZAG Investor Relations
                                                       Focus on innovation and growth
english

                                                                                                                                            52
Strategy

          External growth

          Activities in 2018

            Increase of the shareholding to         Acquisition of the French stain-     Salzgitter Hydroforming GmbH
             more than 25%                            less steel tubes specialist SOTEP     starts joint venture with Chinese
                                                                                            automotive supplier
            Net dividend received since 2009:       Internationalization and
             > € 100 million                          expansion of the value chain         Production of components for
                                                                                            chassis and body applications in
                                                                                            cars

                                                                                                                                 SZAG Investor Relations
                                          Additional M&A measures are imaginable and realizable
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                                                                                                                                53
Strategy

           What we envisage for the coming years – effects

          FitStructure SZAG                                                    SZAG 2021 Growth Programs
          € million earnings improvement potential                            € million additional profit contribution
          80                                                                  200

          70                                                                  180

                                                            ~25               160
          60
                                                                              140
          50                                                                                                                    ~100
                                                                              120
          40                                                                  100
                                                ~25
          30                                                                   80
                                                                               60                                        ~40
          20
                                                                               40
          10
                        ~25
                                                                               20              ~40
          0                                                                      0
                       2019                     2020       2021 ff.                            2019                      2020   2021 ff.

                                                                                                                                           SZAG Investor Relations
                                             All in all around € 250 million in additional effects planned;
                                 the dynamism started in 2012 will be maintained – hence a new initiative in preparation
english
Strategy

           Innovation and growth – example Strip Steel BU

                Bainitic steel “SZBS800” for automotive chassis applications

          Shipments in kt

          120

          100

          80
                                                                                    Spring link MB C-Class
          60

          40

          20

           0
                2012        2013   2014      2015     2016      2017      2018
                                                                                    Wishbone MQB Golf GTI 7

                                                                                                               SZAG Investor Relations
                                               Continuous steel grade development and market penetration
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                                                                                                              55
Strategy

           Innovation and growth – example Strip Steel BU

                                   Salzgitter brands seca®, seca xtra®, Pretex focar® und StronSal®
          Shipments in kt

          120                                                                Hot dip coating for steel with the best
                                                                              corrosion protection properties
          100                                                                Processing properties with strong
                                                                              loads considerably better than standard zinc
          80
                                                                             Designed specifically for laser cutting
          60                                                                 Optimized internal stress and consistent material
                                                                              properties
          40                                                                 Guaranteed minimum flatness tolerances

          20                                                                 Innovative surface structure for coldrolled and
                                                                              galvanized steel sheets
           0
                                                                             Good paint adhesion
                  2014      2015   2016      2017       2018                 Avoidance of moiré effects

                                                                                                                                   SZAG Investor Relations
                                      Demand for proprietary brands is continuously increasing
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                                                                                                                                  56
Strategy

          “Salzgitter AG 2021” – example Plate / Section Steel BU

          Measures at the Ilsenburg site
          Strategy SZAG 2021 – focus on qualitative growth
           Investment into a modern and competitive heat treatment line
           Commissioning: 2020

          FitStructure SZAG – cost cutting and efficiency
          improvement
           Capacity reduction to 700 kt p.a. with corresponding                                    52%
            workforce adjustment
                                                                                         41%
           Temporary decrease of weekly working time to                       36%

            32 hours without wage compensation
          Goal: Profitability improvement of the company
           Optimization of the product portfolio
           Strengthening of the market position and volume
                                                                               2016     2018      2020*
            expansion for higher value grade segments such as high               Volume development of
            strength and wear resistant, water tempered steel                     higher value grades

                                                                                                           SZAG Investor Relations
                                             Restructuring and future orientation go hand in hand
english

          * planned volumes                                                                               57
Strategy

          Innovation and growth – example Mannesmann BU

          Strategy SZAG 2021 – focus on growth
           Expansion of the precision tubes plant in Mexico
           Construction of a production line for thick-walled tubes
           Upgrade of the existing finishing line                                       Structural
                                                                                         tube
                                                                                                                    Airbags
                                                                                                                                     Pump case
                                                                                                                                                 Stabilizers

                                                                                                                                                                 Suspension
          FitStructure SZAG – cost cutting and efficiency                                                                                                        components

          improvement                                                              Engine-
                                                                                   components
           Realignment of Mannesmann Precision Tubes Group as a
            technology provider                                                                                                                     Seat belt-
                                                                                                                                                    fixings
                                                                                                                                                                   IHU/IHV

                                                                                    Camshafts
           Program comprising 180 individual measures

          Goal: Sustainable pre-tax margin of 5% as of 2021                                           Drivetrain and steering components
                                                                                                                                                                   Drive shafts

           Growth with profitable products
           Extension of the value chain
           Growth through internationalization

                                                                                                                                                                                   SZAG Investor Relations
                                                 Cost reduction, efficiency increase and growth
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                                                                                                                                                                                  58
Strategie

           Wir arbeiten an der Zukunft: Forschungsprojekt GrInHy2.0

                                       Green Industrial Hydrogen via steam electrolysis (GrInHy2.0)
                  Januar 2019                                    Februar 2019                                 Aktuell

          Start GrInHy2.0 mit Sunfire,                 Erfolgreicher Abschluss des GrInHy-     Bau GrInHy2.0-System und Fortführung
            Paul Wurth und Tenova                      Projekts mit 10.000 Betriebsstunden          des GrInHy-Anlagenbetriebs
                                                                                                                        This project has received
                                                                                                                        funding from the Fuel Cells
                                                                                                                        and Hydrogen 2 Joint
                                                                                                                        Undertaking (JU) under
                                                                                                                        grant agreement No
                                                                                                                        826350. The JU receives
                                                                                                                        support from the European
                                                                                                                        Union’s Horizon 2020
                                                                                                                        research and innovation
                                                                                                                        programme and Germany,
                                                                                                                        Luxembourg, Italy, France.

                                                                                                                                                       SZAG Investor Relations
                                   GrInHy2.0 – efficient hydrogen production for a CO2-reduced steel production:
                       Salzgitter-Group is an important research partner for the highly efficient steam electroysis technology
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                                                                                                                                                      59
Strategy

            SALCOS – SAlzgitter Low CO2 Steelmaking

                                        Utilization of hydrogen (H2) instead of carbon (C) for the reduction of iron

                                                                                                                    Use of already established
                                                                                                                     (direct reduction using natural
                                                                                                                     gas) as well as innovative
                                                                                                                     (hydrogen generation and use)
                                                                                                                     technologies

                                                                                                                    Integration into existing and
                                                                                                                     optimized steel works

                                                                                                                    gradual reduction of CO2
                                                                                                                     emissions: between 10% and
                                                                                                                     80% CO2 savings!

                                                                                                                                                        SZAG Investor Relations
                                                 The future of CO2-reduced and sustainable steel production – in Salzgitter!
english

          Source: Fraunhofer-Gesellschaft/SZAG                                                                                                         60
1 Salzgitter Group
          2 Market Situation
          3 Business Units
          4 Strategy

                               SZAG Investor Relations
          5 Guidance
english
Guidance

            Business Units – Forecast 2019

           Strip Steel                        Plate / Section Steel               Mannesmann                         Trading                         Technology
           glut on the European steel        plate: continuing high imports     large-diameter pipe mills:        prospects in international     KHS Group: selective order
            market                             from non EU-countries               unsatisfactory capacity utili-     trading will remain under       intake, expanding service
           higher raw material costs,                                             zation expected in Germany         pressure due to restrictive     business and additional
                                              impact from the low
            especially for iron ore            utilization of the large-           – but better in the US             trading policies                positive effects from the
                                                                                  medium line pipes: norma-                                          measures introduced to
                                               diameter pipes segment                                                expected margin decrease in
                                                                                   lization of demand                                                 enhance efficiency
                                                                                                                      stockholding steel trade at
                                              section steel: lower, but sill
                                                                                  precision tubes over all           least partly compensable       specialist mechanical
                                               satisfactory margins
                                                                                   stable                             through business with           engineering companies of
                                                                                  stainless tubes: moderate          additional value added          the DESMA Group: earnings
                                                                                   improvement in the market                                          will return to normal levels
                                                                                         Business Unit

           stable sales                      sales at the year earlier level    sales slight upturn               price-induced sales growth     moderate increase in sales
           tangible reduction in the pre-    result notably below the           positive pre-tax result           gratifying earnings before     decline pre-tax profit
            tax profit due to margins          previous year’s figure                                                 taxes but notably below the
                                                                                                                      previous year

                                                                                                                                                                                      SZAG Investor Relations
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                                                                                                                                                                                     62
Guidance

             Salzgitter Group – Guidance

          Salzgitter AG affirmes its guidance for the financial year 2019. We continue to anticipate:

             a slight increase in sales to above the € 9.5 billion mark,

             a pre-tax profit of between € 125 million and € 175 million and

             a return on capital employed (ROCE) that is tangibly below the previous year’s figure.

          Following a strong first quarter, we currently expect a pre-tax result rather more in the upper end of the aforementioned range. However,
          with reference to the unstable economic situation, not only in the EU, and the associated reduced forecasting reliability for the remainder
          of the financial year, we consider revising the forecast to be premature at present.

          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.

                                                                                                                                                                                                                                                                                    SZAG Investor Relations
          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.
english

          For computational reasons, rounding-off differences of +/– one unit (€, % etc.) may occur in the tables. This document is also available in German language. In the event of any discrepancy, the German version shall prevail.
BACKUP
          1 Financials
          2 Pensions
          3 Investor Relations

                                 SZAG Investor Relations
english
Financials

           Key data per 2019/03/31

                                                                                                                           Q1 2019   Q1 2018      Δ

          Crude steel production                                                                                    kt     1,739.8   1,773.8   -34.0

          External sales1                                                                                 € million        2,293.8   2,307.5   -13.7

          Earnings before tax                                                                             € million          125.9      95.9   30.0

          Earnings after tax                                                                              € million           96.7      65.2   31.5

          Earnings per share (undiluted)                                                                             €        1.76      1.18   -1.18

          ROCE                                                                                                      %         14.1      11.6    2.5

          Core workforce2                                                                                                   23,683    23,333    350

          1 only   from entities within the Group of Consolidated Companies of Salzgitter Group   2   per reporting date

                                                                                                                                                        SZAG Investor Relations
                                                                             Salzgitter Group off to successful start to the year
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                                                                                                                                                       65
Financials

          Income statement

          Income Statement (€ million)                                                           Q1 2019     Q1 2018
          Sales                                                                                    2,293.8     2,307.5

          Increase/decrease in finished goods and work in process/other own work capitalized         26.9        18.9

                                                                                                   2,320.7     2,326.4

          Other operating income                                                                     53.7        55.8

          Cost of materials                                                                        1,495.1     1,505.0

          Personnel expenses                                                                        442.5       422.4

          Amortization and depreciation of intangible assets and property. plant and equipment       87.4        84.6

          Other operating expenses                                                                  262.6       270.7

          Income from shareholdings                                                                    0.0         0.1

          Result from investments accounted for using the equity method                              52.9          9.5

          Finance income                                                                               5.6         3.6

          Finance expenses                                                                           19.4        16.9

          Earnings before taxes (EBT)                                                               125.9        95.9

          Income tax                                                                                 29.2        30.7

                                                                                                                          SZAG Investor Relations
          Consolidated result                                                                        96.7        65.2
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                                                                                                                         66
Financials

          Consolidated balance sheet

          Assets (€ million)                                  2019/03/31    2018/12/31        Δ
          Non-current assets                                      4,082.5       3,835.9   246.6
          Intangible assets, property, plant and equipment        2,452.2       2,339.9   112.3
          Investment property                                        83.1          83.5     -0.4
          Financial assets                                           73.7          75.6     -1.9
          Investments accounted for using the equity method         987.7         888.3    99.4
          Trade receivables                                          23.0          25.5     -2.5
          Other receivables and other assets                         26.6          24.0     2.6
          Income tax assets                                           0.1           0.1     0.0
          Deferred income tax assets                                436.0         399.1    36.9
          Current assets                                          4,934.1       4,921.0    13.1
          Inventories                                             2,341.9       2,327.5    14.4
          Trade receivables                                       1,437.6       1,367.2    70.4

          Contract assets                                           173.8         175.2     -1.4
          Other receivables and other assets                        441.3         403.7    37.7
          Income tax assets                                          26.7          24.5     2.2
          Securities                                                 68.6          67.4     1.1

                                                                                                    SZAG Investor Relations
          Cash and cash equivalents                                 444.3         555.6   -111.3
          Balance sheet total                                     9,016.6       8,756.9   259.7
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                                                                                                   67
Financials

           Consolidated balance sheet

          Equity and liabilities (€ million)                2019/03/31     2018/12/31        Δ
          Equity                                                 3,246.9        3,332.1   -85.1
          Subscribed capital                                      161.6          161.6      0.0
          Capital reserve                                         257.0          257.0      0.0
          Retained earnings                                      3,154.3        3,181.0   -26.7
          Other reserves                                             0.0          60.0    -60.0
          Unappropriated retained earnings                         33.1           33.1      0.0
          Treasury shares                                         -369.7         -369.7     0.0
          Minority Interest                                        10.7             9.1     1.6
          Non-current liabilities                                3,290.0        3,035.7   254.4
          Provisions for pensions and similar obligations        2.440.5        2.275.5   165.0
          Deferred tax liabilities                                 67.6           67.6      0.0
          Income tax liabilities                                   36.3           36.9     -0.6
          Other provisions                                        353.2          358.4     -5.2
          Financial liabilities                                   387.8          291.1     96.6
          Other liabilities                                          4.6            6.1    -1.5
          Current liabilities                                    2,388.2        2,389.2    -1.0
          Other provisions                                        287.7          281.4      6.2
          Financial liabilities                                   419.3          426.9     -7.6
          Trade payables                                         1,101.9        1,130.2   -28.3
                                                                  200.4          250.2    -49.8

                                                                                                   SZAG Investor Relations
          Liability contracts
          Income tax liabilities                                   39.1           37.0      2.2
          Other liabilities                                       339.8          263.4     76.3
          Balance sheet total                                    8,925.2        8,756.9   168.3
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                                                                                                  68
Financials

          Cash flow statement

          (€ million)                                                                  Q1 2019                   Q1 2018       Δ

          Cash and cash equivalents at the start of the period                            555.6                    679.4   -123.9

          Cash flow from operating activities                                               53.6                   100.6    -47.0

          Cash flow from investment activities                                            -143.2                  -147.0      3.8

          Cash flow from financial activities                                              -24.6                    -7.0    -17.6

          Changes in cash                                                                 -111.3                   -55.5    -55.8

          Cash and cash equivalents at the end of the period                              444.3                    624.0   -179.7

                                                                                                                                     SZAG Investor Relations
                                          Operating cash flow positively impacted by improved quarterly result
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                                                                                                                                    69
Financials

               Bonds

                                                                              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: 2,125.4708 Shares per Bond1
              Conversion price: € 47.04841
              Underlying shares: 3,568,6651
              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

                                                                                                                                                                    SZAG Investor Relations
          1   Most recently adjusted per 2018/05/29
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                                                                                                                                                                   70
Financials

           Strip Steel Business Unit

                                                                                                       Q1 2019                 Q1 2018                    Δ

          External sales                                                        € million                 598.8                   609.4                -10.6

          Order bookings                                                               kt               1,138.8                 1,238.3                -99.5

          Order backlog1                                                               kt                 911.5                   944.6                -33.1

          EBITDA                                                                € million                 100.1                   117.9                -17.8

          EBT                                                                   € million                   46.3                   62.5                -16,2

          Core workforce1                                                                                 6,207                   6,183                  24

                                                                                                                                                                SZAG Investor Relations
                                   Gratifying result; decline compared with excellent year-earlier result mainly due to raw material price increases
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          1 per   reporting date                                                                                                                               71
Financials

           Plate / Section Steel Business Unit

                                                                                       Q1 2019               Q1 2018         Δ

          External sales                                        € million                 229.6                  286.6    -57.0

          Order bookings                                               kt                 524.5                  629.2   -104.8

          Order backlog1                                               kt                 337.8                  380.8    -42.9

          EBITDA                                                € million                  14.0                   20.6     -6.6

          EBT                                                   € million                   1.7                    9.3     -7.6

          Core workforce1                                                                 2,444                  2,467     -23

                                                                                                                                   SZAG Investor Relations
                                   Lower pre-tax result due to the earnings development of the heavy plate producers
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          1 per   reporting date                                                                                                  72
Financials

          Mannesmann Business Unit

                                                                                    Q1 2019                Q1 2018           Δ

          External sales                                     € million                 290.3                      271.0   19.3

          Order bookings                                            kt                 342.1                      382.8   -40.7

          Order backlog1                                            kt                 477.3                      539.7   -62.4

          EBITDA                                             € million                   25.6                      19.0    6.6

          EBT                                                € million                    8.4                       1.6    6.8

          Core workforce1                                                              4,700                      4,651     49

                                                                                                                                   SZAG Investor Relations
                                   Growth in result thanks to better performance in nearly all product segments
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          1)per   reporting date                                                                                                  73
Financials

           Trading Business Unit

                                                                                                    Q1 2019                 Q1 2018                      Δ

          External sales                                                     € million                  797.9                  759.8                  38.0

          Shipments                                                                 kt                1,043.4                1,122.7                  -79.4

          EBITDA                                                             € million                    9.8                   17.9                   -8.1

          EBT                                                                € million                    3.0                   13.8                  -10.8

          Core workforce1                                                                               2,126                  1,991                   135

                                                                                                                                                               SZAG Investor Relations
                               Lower pre-tax profit because of decline in volumes and the margin situation of the stockholding steel trade business
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          1 per   reporting date                                                                                                                              74
Financials

           Technology Business Unit

                                                                                                 Q1 2019              Q1 2018                 Δ

          External sales                                                   € million                333.8                 327.7              6.1

          Order bookings                                                          kt                330.0                 305.9             24.1

          Order backlog1                                                          kt                704.5                 686.1             18.4

          EBITDA                                                           € million                 17.8                  15.9              1.9

          EBT                                                              € million                 11.8                  11.2              0.6

          Core workforce1                                                                           5,559                 5,425             134

                                                                                                                                                    SZAG Investor Relations
                                   Doubled result of the KHS Group more than compensates earnings decrease of special machinery producers
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          1 per   reporting date                                                                                                                   75
Financials

           Industrial Participations / Consolidation

                                                                                              Q1 2019                Q1 2018            Δ

          External sales                                               € million                  43.3                   52.9        -9.6

          EBITDA                                                       € million                  61.0                     1.8       59.3

          EBT                                                          € million                  54.7                    -2.4       57.1

          Core workforce1                                                                        2,647                  2,616         31

                                                                                                                                             SZAG Investor Relations
                                   Earnings before taxes significantly improved, result impacted by the contribution of Aurubis AG
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          1 per   reporting date                                                                                                            76
BACKUP
          1 Financials
          2 Pensions
          3 Investor Relations

                                 SZAG Investor Relations
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Pensions

          Mechanics of internal pension commitment funding

          Internal funding over lifetime of employee

                                                                      ...                                             ...
                     Joins               5 years                                         Retirement
                     company
                        Pension provision (non-cash)   Contribution by SZAG (non-cash)   Pension payment (cash)

                                                                                                                                                 SZAG Investor Relations
            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
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                                                                                                                                                78
Pensions

               Funding of pension commitments

              (2018/12/31)                                                               € bn                                                (2018/12/31)
                                                                                         5
           Projected Benefit Obligation (PBO):                                                                                               Balance sheet: pension provisions
            € 2,351 m1                                                                                                                         € 2,275 m
                                                                                         4
           According to IAS 19:                                                                                                              Assets held by external funds:
               − Discount rate of 1.25%2                                                                                                       € 75.2 m
                                                                                         3
                 – in line with market average                                                                                                Non-current assets: € 3,836 m
               − Trend in salaries: 2.75% p.a.                                           2                                                    Net position due to banks:
               − Trend in pensions:                                                                                                            € 192 m
                                                                                         1
                 1.75% p.a.
               − Staff turnover: 1% p.a.                                                 0
               − Valuation based on the actuarial

                                                                                                                provisions

                                                                                                                             assets + cash
                                                                                                   PBO

                                                                                                                              Non-current
                                                                                                                 Pension
                 principles

                                                                                                                                                                                    SZAG Investor Relations
                                                                  Pension obligations completely covered by internal funds!
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          1   thereof € 75.2 million covered by assets held by external funds 2 per 2019/03/31, before: 1.75%                                                                      79
BACKUP
          1 Financials
          2 Pensions
          3 Investor Relations

                                 SZAG Investor Relations
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Investor Relations

           Dividend proposal
                 €                                                    Financial year 2018                       € million
              0.70                                                    Dividend per share:     0.55 €            400
                                                                                                          347
                                                                                                                300
              0.50                                                                          238        0.55

                                                                                            0.45                200
              0.30
                                                               0.30
                                        0.25                                                                    100
                                0.20                            53
              0.10                      4
                                                                                                                0
                                 2014   2015 1                 2016                         2017       2018
             -0.10              -15
                                                                                                                -100

             -0.30
                                                                                                                -200

             -0.50                                                                                              -300
          1 restated

                                                                                                                             SZAG Investor Relations
                                                 Dividend increased by another 20%
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                                                                                                                            81
Investor Relations

          Shareholder structure and share turnover

                                     Shareholder structure                                                  Daily turnover in thousand shares

                                                                                                   600

              Other shareholders                                                   Salzgitter AG

                                                      10.0%
              Inst. shareholders          20.6%
              – other Regions                                                                      400
                                   1.1%                                                 State of
              Inst. shareholders
                                                                 26.5%            Lower Saxony
              – other Europe     5.0%
                                   3.3%

              Inst. shareholders                                                                   200
              – UK + Ireland                                                  Inst. Shareholders
                                          19.6%                                       – Germany
                                                        13.9%

                                                              Inst. shareholders – North America     0
                                                                                                         1Q 13 4Q 13 3Q 14 2Q 15 1Q 16 4Q 16 3Q 17 2Q 18 1Q 19
              Free float: 63.5%
              Treasury shares: as of July 8, 2010; other information is based on the external
              shareholder identification as of January 2019

                                                                                                                                                                  SZAG Investor Relations
                                   Balanced shareholder structure                                                        High liquidity
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                                                                                                                                                                 82
Disclaimer

          Legal Note
          To 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.

          Copyrights
          This 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

                                                                                                                                                                                SZAG Investor Relations
          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
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          the respective user, and may not be used within the framework of other depictions, in particular websites, without our express prior written consent.
                                                                                                                                                                               83
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