Explanations on the Financial Position and Net Worth

Explanations on the balance sheet

The total assets of the Salzgitter Group decreased in the current reporting period (€ −356 million) compared with December 31, 2012.

Non-current assets have declined notably as a consequence of impairment on these assets amounting to € 185 million.

The drop in current assets (€ −92 million) was attributable to the lower level of inventories (€ −142 million), as well as of cash and cash equivalents (€ −133 million) and securities (€ −51 million). A counter-effect emanated from an increase in trade receivables (€ +206 million) and in other assets (€ +39 million).

On the liabilities side, the negative after-tax result in particular led to a decline in equity. The equity ratio nonetheless stood at 38.6 %, which continues to form a sound basis.

The net credit balance had decreased to € 375 million by the end of the reporting period (December 31, 2012: € 497 million). Investments worth € 1,078 million, including securities, were offset by liabilities of € 702 million (December 31, 2012: € 714 million), of which € 111 million were owed to banks while € 592 million were obligations attached to convertible and exchangeable bonds.

Explanations on the cash flow statement

Despite the negative result before tax (€ −299 million), the cash flow from operating activities (€ +71 million) was positive, but had nonetheless fallen below the first six months of 2012 (€ +231 million), as this figure included extremely high prepayments for projects thereby increasing the level of liabilities.

The cash outflow from investment activities (€ −177 million) was especially attributable to disbursements for capital expenditure in property, plant and equipment (€ −137 million) and for financial assets (€ −43 million), the levels of which were therefore marginally below the year-earlier period (€ −196 million). In addition, investments of funds amounting to € 5 million (previous year: € 145 million) were made.

The disbursement of dividend (€ −14 million), the redemption of loans (€  −4 million) and interest payments (€ −6 million) constituted a cash outflow from financing activity of € −24 million.

Cash and cash equivalents fell by € 133 million compared with December 31, 2012.