First half of 2024

Salzgitter AG delivers a pre-tax result at breakeven in the first half of 2024

• Burden on steel-related activities from the economy failing to rebound
• Supplementary short-term profitability improvement measures initiated
• Diversification effective – Technology Business Unit heading for a record result in 2024

“To date, the German economy is showing no signs of a sustainable recovery. The year 2024 is proving to be one of the most challenging for Germany’s steel industry in decades. Aside from the success of our Technology Business Unit – KHS is approaching a record result for the year – 2024 appears to be a lost year from an operating standpoint, while we have achieved a great deal in strategic terms. The sale of Mannesmann Stainless Tubes represents the most important step so far in our active portfolio management. We anticipate cash inflow of € 125 million from this in the second half of the year. We will continue to rigorously progress this process of change that is necessary to meet the current and future challenges to our competitive capabilities. Further strategic and structural adjustments are to follow.

Our aim of producing green steel as from 2026 is set in stone. The implementation of the first stage of the SALCOS® transformation program remains on schedule, and the first plant components have been delivered on site. Furthermore, an important prerequisite for launching green key markets for steel has been set in place in the form of LESS, developed by the German Steel Federation for the classification of low carbon steel products. Flanking this development, we successfully introduced our SALCOS® brand for green steel products. We are therefore playing our part in decarbonizing Germany’s economy. We are challenging the policy makers to think beyond election periods and to act in order to create the requisite framework conditions for the transformation to succeed – first and foremost, with a competitive and reliable energy supply.”

“The Salzgitter Group’s result in the first half of 2024 has not been satisfactory, also against the backdrop of the difficult economic environment. Endeavors to counteract this have been assigned top priority. Our motto is therefore: “We cannot change the direction in which the wind is blowing. What we can do is to reset our sails in order to achieve our goals.” With this in mind, and in addition to our “Performance 2026” profit improvement program, we have initiated short-term measures to stabilize earnings and secure liquidity. New capex is being scrutinized and disbursement plans revised for investments already approved. We have also gone through other cost positions and made cuts in various areas. In the medium term, structural adjustments that are currently at the drafting stage will take effect in the individual business units. We will be reporting on this in due course.”

As in recent years, please note that opportunities and risks from currently unforeseeable trends in selling prices, input material prices and capacity level developments, as well as exchange rate fluctuations, may considerably affect business performance in the course of the financial year 2024. The resulting impact on performance may be within a substantial range, either to the positive or to the negative.

The complete report released on the results of the first half of 2024 can be viewed at:
https://www.salzgitter-ag.com/en/investor-relations/news-and-publications.html

Markus Heidler
Head of Investor Relations
Phone: +49 (0) 5341 21-1852
heidler.m@salzgitter-ag.de

Thorsten Moellmann
Head of Group Communication & Brand
Phone: +49 (0) 5341 21-2300
moellmann.t@salzgitter-ag.de