SZAG Investor Relations - salzgitter-ag.com · SZAG Investor Relations Income statement english 3...

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Results of the first quarter 2020

Salzgitter, May 13, 2020engl

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Q1 2020 Q1 2019 Δ

Crude steel production kt 1,681.5 1,739.8 -58.3

External sales1 € million 2,108.3 2,293.8 -185.5

Earnings before tax € million -31.4 125.9 -157.3

Earnings after tax € million -43.7 96.7 -140.5

Earnings per share (undiluted) € -0.83 1.76 -2.59

ROCE % -2.4 14.1 -16.5

Core workforce2 23,308 23,683 -375

Key data per 2020/03/31

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Results of the first quarter largely unaffected from impact of the Corona crisis,pre-tax result determined by negative valuation effects from fluctuations in precious metal prices

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

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Income statement

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Financials

Income Statement (€ million) Q1 2020 Q1 2019Sales 2,108.3 2,293.8

Increase/decrease in finished goods and work in process/other own work capitalized -36.5 26.9

2,071.8 2,320.7

Other operating income 90.1 51.8

Cost of materials 1,378.8 1,495.1

Personnel expenses 439.0 442.5

Amortization and depreciation of intangible assets and property, plant and equipment 74.1 87.4

Other operating expenses 260.8 260.1

Result from impairment losses and reversal of impairment losses of financial assets -2.5 -0.5

Income from shareholdings 0.0 0.0

Result from investments accounted for using the equity method -18.3 52.9

Finance income 2.4 5.6

Finance expenses 22.2 19.4

Earnings before taxes (EBT) -31.4 125.9

Income tax 12.3 29.2

Consolidated result -43.7 96.7

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Consolidated balance sheet

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Assets (€ million) 2020/03/31 2019/12/31 ΔNon-current assets 4,024.8 4,099.0 -74.2Intangible assets, property, plant and equipment 2,352.0 2,343.0 8.9

Investment property 81.7 82.0 -0.3

Financial assets 61.8 64.7 -2.8

Investments accounted for using the equity method 1,040.5 1,072.9 -32.4

Trade receivables 18.5 18.4 0.1

Other receivables and other assets 19.9 25.6 -5.8

Income tax assets 0.0 0.0 0.0

Deferred income tax assets 450.4 492.3 -41.9

Current assets 4,405.0 4,518.6 -113.6Inventories 2,097.3 2,248.1 -150.8

Trade receivables 1,315.1 1,118.4 196.7

Contract assets 239.2 186.3 52.9

Other receivables and other assets 216.2 191.8 24.4

Income tax assets 27.1 22.6 4.5

Securities 45.7 50.9 -5.2

Cash and cash equivalents 464.5 700.5 -236.1

Assets available for sale 0.0 0.0 0.0

Balance sheet total 8,429.8 8,617.6 -187.8

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Consolidated balance sheet

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Equity and liabilities (€ million) 2020/03/31 2019/12/31 ΔEquity 2,976.5 2,938.7 37.8Subscribed capital 161.6 161.6 0.0Capital reserve 257.0 257.0 0.0Retained earnings 2,910.4 2,845.2 65.2Other reserves -5.4 23.0 -28.4Unappropriated retained earnings 12.1 12.1 0.0Treasury shares -369.7 -369.7 0.0Minority Interest 10.5 9.6 0.9Non-current liabilities 3,311.8 3,453.6 -141.8Provisions for pensions and similar obligations 2,201.2 2,356.1 -154.9Deferred tax liabilities 72.6 72.0 0.6Income tax liabilities 36.8 36.6 0.2Other provisions 328.2 334.9 -6.8Financial liabilities 652.4 637.1 15.3Other liabilities 20.6 16.8 3.8Current liabilities 2,141.5 2,225.3 -83.8Other provisions 216.7 224.6 -8.0Financial liabilities 444.1 430.1 14.0Trade payables 954.8 915.2 39.5

Liability contracts 228.7 200.7 28.0Income tax liabilities 8.1 8.6 -0.5Other liabilities 289.1 446.0 -157.0Balance sheet total 8,429.8 8,617.6 -187.8

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Cash flow statement

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Operating cash flow primarily affected by the payment of a fine to the German Federal Cartel Office

(€ million) Q1 2020 Q1 2019 Δ

Cash and cash equivalents at the start of the period 700.5 555.6 144.9

Cash flow from operating activities -142.8 53.6 -196.4

Cash flow from investment activities -94.7 -143.2 48.5

Cash flow from financial activities 3.6 -24.6 28.2

Changes in cash -236.1 -111.3 -124.7

Cash and cash equivalents at the end of the period 464.5 444.3 20.2

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Strip Steel Business Unit

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Financials

Decline in result due to the significant decrease in earnings

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1 per reporting date

Q1 2020 Q1 2019 Δ

External sales € million 566.2 598.8 -32.6

Order bookings kt 1,193.1 1,138.8 54.3

Order backlog1 kt 917.8 911.5 6.3

EBITDA € million 34.6 100.1 -65.5

EBT € million -6.8 46.3 -53.1

Core workforce1 6,113 6,207 -94

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Plate / Section Steel Business Unit

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Financials

Order intake significantly above previous year’s level, volume and price induced lower results of the steel-producing companies of the business unit

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Q1 2020 Q1 2019 Δ


Order bookings kt 583.8 524.5 59.3


EBITDA € million 2.2 14.0 -11.8

EBT € million -4.2 1.7 -5.9


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Mannesmann Business Unit

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Financials

Low pre-tax loss especially due to downward performance in the segment of precision tubes also because of corona-pandemic

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1)per reporting date

Q1 2020 Q1 2019 Δ

External sales € million 295.9 290.3 5.6

Order bookings kt 319.5 342.1 -22.6

Order backlog1 kt 402.3 477.3 -75.0


EBT € million -4.6 8.4 -13.0


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Trading Business Unit

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Pre-tax profit in a difficult environment

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Q1 2020 Q1 2019 Δ


Shipments kt 977.5 1,043.4 -65.9


EBT € million 0.3 3.0 -2.7


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Technology Business Unit

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Financials

Decline in earnings of the smaller special machinery producers, result of the KHS-Group increased again!

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Q1 2020 Q1 2019 Δ


Order bookings kt 337.3 330.0 7.3



EBT € million 5.2 11.8 -6.6

Core workforce1 5,568 5,559 9

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Industrial Participations / Consolidation

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Financials

Earnings before taxes includes a contribution of €-18.7 million from the participating investment in Aurubis AG accounted for using the equity method

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Q1 2020 Q1 2019 Δ


EBITDA € million -8.5 61.0 -69.5

EBT € million -21.3 54.7 -76.0


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Salzgitter Group – GuidanceGuidance

The stabilizing tendencies on the European steel market came to an abrupt end with the restrictions placed on the economy due to the COVID-19 pandemic. Many sectors are faced with the threat of a recession in uncertain dimensions. No forecast in the familiar format can currently be made for the Salzgitter Group’s business development in this uncertain environment. The range of feasible scenarios does not allow for exact quantification without entering into the realms of speculation. Against this backdrop, we anticipate the following for the Salzgitter-Group in the current financial year 2020:

a negative pre-tax result in a significant, most likely triple-digit million Euro range, and

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

a noticable decrease in sales,

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.

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.

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.

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SZAG Investor Relations - salzgitter-ag.com · SZAG Investor Relations Income statement english 3...

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