Fourth record result of the Salzgitter Group in a row

2008 Annual Financial Statements Press Conference of Salzgitter AG

The main topics on the agenda of the Annual Financial Statements Press Conference were another record result, internal and external growth and the forecast for the current financial year 2008, as presented by Chief Executive Officer Dr. Wolfgang Leese and Chief Financial Officer Dr. Heinz Jörg Fuhrmann.

Dr. Fuhrmann began by commenting on the key data of the financial year 2007: He reported that, with a pre-tax operating result of € 1,314 million, the Group had outperformed the exceptionally good previous year’s figure of € 948 million (operating EBT). Consolidated sales of the Group had surpassed the 10 billion threshold for the first time, and had risen against the previous year’s figure of € 8.45 billion to € 10.19 billion, thereby reaching an all-time high in the financial year 2007. Return on capital employed (ROCE) from industrial operations stood at 46.9 percent.

The reasons to which Dr. Fuhrmann attributed this excellent result, also in a peer comparison, were the healthy global demand of the steel processing industry, alongside the sound German economy, as well as Salzgitter AG’s strong position.

Subject to approval by the General Meeting of Shareholders on May 21, 2008 (venue: Braunschweig), a basic dividend of € 2 will be paid per share. Owing to the exceptionally good results in the year which marks the 150th Anniversary since the founding of Ilseder Hütte as a stock corporation under German law, the proposal will be put to the General Meeting of Shareholders that a bonus of € 1 be paid, bringing the total dividend distributed for each share to € 3.

Among other topics, Chief Executive Officer Dr. Wolfgang Leese explained the strategy of the Group. Investments in equipment, plant and processes – mainly in the Steel Division – are geared towards securing the independency of the Group on an ongoing basis. “Further external acquisitions in the Steel, Trading, Tubes and Technology divisions are under review, but must accord with our profitability criteria", commented Dr. Leese.

The aim is to be generating sales of between € 13 and 15 billion by 2010. ROCE would then be above the steel cycle at 15 percent.

CEO Wolfgang Leese's business forecast for the year 2008 was as follows: “On the basis of overall planning for the Group and its divisions carried out prior to the start of the financial year, and including topical information on how the current financial year is developing, we anticipate that, with sales revenues remaining virtually unchanged, operating pre-tax profit could again be in the triple-digit million range in the dimension of the operating results of the financial years 2005 (EBT of € 803 million) and 2006 (EBT of € 948 million).