First half of 2021

Salzgitter Group continues its upward trajectory, delivering a strong result in the second quarter

• Earnings before taxes of € 305.7 million mark best half-year result since 2008
• Course to SALCOS^® implementation now detailed. Ambition: first hydrogen-based steel production by the end of 2025
• Strategy review initiated

In the first half of 2021, the Salzgitter Group generated the highest pre-tax result since the exceptional financial years 2007 and 2008. The drivers of this result consisted of the dynamic uptrend in rolled steel prices over the course of the first six months, coupled with a sustained recovery in the market that had a particularly positive impact on the performance of the Strip Steel and Trading business units. The contribution from the participating investment in Aurubis AG was once again very gratifying.

The Salzgitter Group’s external sales rose to € 4,435.5 million in the first six months of the financial year 2021, significantly outperforming the year-earlier period that was determined by the COVID-19 pandemic (H1 2020: € 3,631.0 million). Profit before taxes of € 305.7 million (H1 2020: € –127.8 million) includes the contribution of € 91.0 million from the participating investment in Aurubis AG accounted for pursuant to the equity method (IFRS accounting) (H1 2020: € 34.0 million). An after-tax result that stood at € 230.6 million (H1 2020: € – 144.7 million) brings earnings per share to € 4.20 (H1 2020: € – 2.70) and return on capital employed to 16.4 % (H1 2020: – 6.3 %). The equity ratio remained at a very sound 33.3 %. Despite the greater volume of business and higher prices for raw materials and finished products, the net financial position of € – 422.5 million settled around the level of the year-end 2020 reporting date (€ – 431.7 million). The value of the CO₂ allowances procured for the fourth period of the EU greenhouse gas emission trading scheme that commenced on January 1, 2021 meanwhile amount to almost one billion euros.

“The Salzgitter Group recorded its best half-year result for more than a decade. This pleasing result is not only evidence of our performance capabilities, but also gives us tailwind for the tasks to be addressed. In the past three months, I have visited many Group companies in all the business units and engaged in intensive discussion with the colleagues there. The potential of the Salzgitter Group is impressive. We have initiated an internal process to follow on after the successful “Salzgitter AG 2021” corporate strategy and to set the course for the coming years. We will take the time we need for devising the new corporate strategy and expect to present it in the spring of 2022. Key components of the strategy will include the topics of sustainability and decarbonization in particular. The swift realization of our SALCOS^® (SAlzgitter Low CO₂ Steelmaking) concept for low CO₂ steel production remains a decisive factor. Our ambition is to be able to start hydrogen-based steel production by the end of 2025. This is the course we will take to gradually reducing CO₂ emissions by 30 % in the period up to 2030, and to lowering our CO₂ footprint by more than 95 % by 2050 at the latest, thereby eliminating around 1 % of Germany’s current emissions. As is the case with the entire sector, we are on the threshold of a fundamental and far-reaching transformation and I believe that we are well-equipped to successfully master this sea change. I’m greatly looking forward to tackling the tasks and challenges that lie ahead together with the entire management team.”