Highlights of the Financial Year 2010

January

On January 22, Nord Stream AG based in Zug, Switzerland, mandates our EUROPIPE joint venture with the delivery of 65% of the large-diameter tubes required for the second section of the Baltic Sea pipeline, thereby reserving a large part of the global leader’s production capacity well into the year 2011.

February

“Continuity through Progress” was the heading of Salzgitter AG’s first Corporate Responsibility Report. The report provides extensive information on the ecological, economic and social performance of the Group. It serves to highlight that sustainability is a fundamental principle underlying all our actions, which is reflected in many aspects of how the company is positioned: features include being progressive and innovative in the markets, rooted in our regions, anchored in sustainable structures and geared towards profitable growth.

March

At the Annual Results Press Conference, which took place on March 26, the Executive Board presents the 2009 Annual Report. It subsequently engaged in extensive dialog with the capital market at well-attended analyst conferences in Frankfurt am Main and London. The year 2009 has gone down as one of the most difficult financial years in the 150-year history of the Salzgitter Group. Thanks to the sound and broad business base and the healthy financial position of the company, as well as a program of swiftly implemented measures, all the challenges posed by the crisis were competently mastered. Revolution in global iron ore price negotiations: The Brazilian mining company Vale and Australian BHP Billiton dispense with the system of annual ore price negotiations which has been in force for 40 years in favor of adopting short-term pricing mechanisms. This change exposes the international steel industry to a hitherto unknown volatility in raw materials procurement and the challenge of having to adjust steel product sales structures to accommodate this change.

April

The Salzgitter Group conducts extensive discussions with customers and partners: companies from the Steel, Trading and Tubes divisions exhibit at Tube, the world’s leading tube trade fair, BAUMA as the largest exhibition of the construction machinery sector, and HANNOVER MESSE, the world’s most important industrial trade show. The steel market shows clear signs of recovery: order intake and spot market prices for flat steel products and plate rise swiftly. EUROPIPE commences the production and delivery of tubes for the second section of the Baltic Sea pipeline.

May

Publication of the financial report on the first quarter of 2010 on May 12: the ongoing economic upswing boosts new orders and capacity utilization, and business prospects brighten. External sales of € 1,924.8 million nonetheless fall short of the year-earlier figure owing to hesitant recovery in the market in the first months of the year. The consolidated pre-tax result of € – 17.1 million includes provisions formed for streamlining measures and impairment.

June

Almost 1,000 shareholders and shareholder representatives attend the regular General Meeting of Shareholders of the Salzgitter Group, held on June 8 in the Town Hall of Braunschweig. Presence corresponded to more than 33 million shares, which is 55% of voting capital. All items on the agenda, including dividend payment of € 0.25 per share, were approved by a large majority.

July

Salzgitter opts for continuity: In an extraordinary meeting of the Supervisory Board of Salzgitter AG, Prof. Dr.-Ing. Heinz Jörg Fuhrmann is unanimously appointed as the successor of Prof. Dr.-Ing. h. c. Wolfgang Leese who will be withdrawing from the Executive Board in 2011 to go into retirement. The increase in new orders enables Salzgitter Flachstahl GmbH to take blast Furnace C into operation again.

August

The Salzgitter Group releases its financial report on the first half of 2010 on August 12: the Group’s positive performance holds steady in the second quarter, delivering a pre-tax profit. Salzgitter Flachstahl GmbH commissions SMS Siemag AG to build a belt casting line. The contract marks the first time a production concept for the casting of wholly innovative high-strength steels has been realized on an industrial scale. The advantages of belt casting technology reside in considerable savings on energy and CO₂ emissions in comparison with conventional steel manufacturing. The door to the industrial production of HSD® steels (High Strength and Ductility) is now open. On August 25 the Annual General Meeting of the share holders of Klöckner-Werke AG, in which Salzgitter Mannesmann GmbH (SMG) holds a stake of more than 95%, approves a resolution through which the shares of all the remaining shareholders are to be transferred to SMG in return for compensation of € 14.33 per share.

September

The ramping up phase of Peiner Träger GmbH’s second electric arc furnace commences. The new facilities are part of the “Salzgitter Steel 2012” strategic investment program aimed at securing the future of steelworks in Lower Saxony. The ZF Group, one of the world’s leading automotive suppliers, confers awards on its top suppliers: assessment criteria include premium quality, outstanding technology, efficient logistics processes and competitive cost structures. Awards go to Salzgitter AG in 2010 in the production material category, to Salzgitter Flachstahl GmbH for flat steel and to Salzgitter Mannesmann Precision GmbH for steel tubes.

October

A large number of subsidiaries belonging to the Salzgitter Group demonstrate their product expertise for the automotive industry at the sixth International Suppliers Fair (IZB) in Wolfsburg. The Group also dialogues with customers and partners through presentations and discussion panels at the EuroBLECH Trade Fair in Hanover. Salzgitter AG issues a bond which is exchangeable into the shares of Aurubis AG: the issuance serves to diversify funding sources with proceeds being used for general corporate purposes, and the annual coupon is fixed at 2%.

November

The Group publishes its Interim Report on the first nine months of 2010 on November 12: The Salzgitter Group has reaped discernable benefit from the general economic recovery and returned to profitability. Pre-tax profit for the period comes to € 5.7 million and external sales to € 6,192.6 million. KHS, a leader in beverage filling technology, exhibits at Brau Beviale Trade Fair 2010 in Nuremberg. The new Innocheck EBI empty bottle inspector attracts a great deal of attention at the trade fair stand. Contracts are signed while the exhibition is still running.

December

The Supervisory Board of Salzgitter AG makes personnel decisions of great importance in its regular meeting: Prior to the meeting, Prof. Dr.-Ing. h. c. Wolfgang Leese had put forward a request to relinquish his management of the Group earlier than originally planned. Prof. Dr.-Ing. Heinz Jörg Fuhrmann is therefore appointed to the position of new Chief Executive Officer and Chairman of the Executive Board of Salzgitter AG, effective at the earlier date of February 1, 2011. At the same time, Mr. Burkhard Becker, formerly Chief Financial Officer of KHS GmbH and Board member of Klöckner-Werke AG, is appointed as Professor Fuhrmann’s successor responsible for corporate finance and as a member of Salzgitter AG’s Executive Board.

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