Business Units 2016
Overview Global Presence Strip Steel Plate/Section Steel Mannesmann Trading Technology Crude steel production 2015: 6.7 million tons; trading volume: 5.5 million tons; Among the top 3 producers of beverage filling and packaging machinery 2
Salzgitter Group Diversified product portfolio Strip products Steel and Technology Line pipes Steel Service Center Precision tubes Heavy plates Stainless tubes Sections Stockholding trading Engineering services International trading Injection molding machinery Beverage filling plants 3
Salzgitter Group Group structure and key data FY 2015 Salzgitter AG Group External Sales cons.: EBT: 8.6 billion 13 million Employees: 23,524 Strip Steel Plate / Section Steel Mannesmann Trading Technology External Sales: 1.9 billion External Sales: 0.9 billion External Sales: 1.1 billion External Sales: 3.2 billion External Sales: 1.3 billion EBT: -26 million EBT -68 million EBT: 2 million EBT: 32 million EBT: 25 million Employees: 6,130 Employees: 2,952 Employees: 4,895 Employees: 1,858 Employees: 5,146 All data about employees as per 31/12 4
Salzgitter Group Group structure Salzgitter AG Salzgitter Mannesmann / Salzgitter Klöckner-Werke Strip Steel BU Plate / Section Steel BU Mannesmann BU Trading BU Technology BU Industrial Participations / Consolidation Salzgitter Flachstahl Ilsenburger Grobblech Mannesmannröhren- Werke Salzgitter Mannesmann Handel KHS Verkehrsbetriebe Peine-Salzgitter Salzgitter Europlatinen Salzgitter Mannesmann Grobblech Europipe 50% Salzgitter Mannesmann Stahlhandel KHS Corpoplast Hansaport 51% Salzgitter Bauelemente Peiner Träger Salzgitter Mannesmann Line Pipe Salzgitter Mannesmann International KHS Plasmax Gesis Gesellschaft für Informationssysteme Salzgitter Mannesmann Stahlservice DEUMU Deutsche Erz- und Metall-Union Salzgitter Mannesmann Großrohr Universal Eisen und Stahl Klöckner DESMA Elastomertechnik Telcat Salzgitter Mannesmann Precision Klöckner DESMA Schuhmaschinen Salzgitter Mannesmann Forschung Salzgitter Mannesmann Stainless Tubes Salzgitter Automotive Engineering Hüttenwerke Krupp Mannesmann 30% Salzgitter Hydroforming BU = Business Unit Borusan Mannesmann Boru 23% Aurubis 25% As of: January 2016 5
Salzgitter Group Sales 2015 by customer industries 12% Other 13% Food and beverage industry 5% Mechanical engineering 4% Re-roller 5% Tube producer 15% Vehicle construction 15% Construction industry 4% White goods, electrical equipment 2% Energy sector and utilities 25% Traders, Steel-Service-Center External sales (only from entities within the Group of Consolidated Companies of Salzgitter Group) Broad customer base 6
Salzgitter Group Sales 2015 by regions 9% Other 9% Asia 14% Americas 3% Other Europe 44% Germany 21% Other EU External sales (only from entities within the Group of Consolidated Companies of Salzgitter Group) by consignee Share of ex-germany sales by consignee 56% 7
Strip Steel Business Unit Overview Capabilities Integrated steel works with three blast furnaces Approx. 4.7 mt / year crude steel capacity Modern production plants High processing competence (SSC) Core competences and products High-quality steel grades for sophisticated applications Custom made solutions, e.g., hotrolled and cold-rolled coil, galvanized and coated sheet, laser-welded tailored blanks, corrugated sheets, coffers, sandwich and acoustic elements Customer focus through local presence Sales by customer industry 2015 Key data FY 2015 Consolidated Sales m 1,922 Earnings before taxes m -26 Core workforce (12/31) 6,130 Established supplier of the demanding German automotive industry 8
Strip Steel Business Unit Strip Products Salzgitter Flachstahl GmbH Germany; shareholder: SZAG 100% Hot-rolled coil, cold-rolled coil, electrogalvanized, hot dip galvanized and organic coated sheet Integrated steel works with 3 blast furnaces Around 4.7 mt yearly crude steel capacity Top modern production plants High-tech downstream facilities 5% market share in the EU27 Supplier of premium OEMs Shipments kt 4,451 4,241 Sales m 2,597 2,324 Employees 31/12/ 5,724 5,650 9
Strip Steel Business Unit Processing Salzgitter Europlatinen GmbH Germany; shareholder: SZAG 100% Custom-made solutions: Laser welded Tailored Blanks for lighter car bodies. Sales m 71 64 Employees 31/12 105 107 Salzgitter Bauelemente GmbH Germany; shareholder: SZAG 100% Corrugated sheets, coffers, sandwich a. acoustic elements for wall and roof constructions of commercial buildings. Sales m 48 44 Employees 31/12 65 62 10
Strip Steel Business Unit Steel Service Center Salzgitter Mannesmann Stahlservice GmbH Germany; shareholder: SZAG 100% Two locations Modern plants and processes 600,000 t/year processing capacity Excellent position in the heart of Europe Shipments kt 568 610 Sales m 352 358 Employees 31/12/ 298 311 11
Plate / Section Steel Business Unit Overview Capabilities Section Steel Top-modern mini mill with two electric arc furnaces Annual crude steel capacity 1 mt Two rolling mills for medium and heavy sections Plate Two rolling mills for plate with 1.6 mt annual capacity Plate width up to 4,800 mm Core competences and products High-strength, wear resistant and specialized steel grades Medium and heavy sections, heavy plate incl. offshore and tube grades Sales by customer industry 2015 Key data FY 2015 Consolidated sales m 909 Earnings before taxes m -68 Core workforce (12/31) 2,952 Plate: Broad range of high quality plate products Section Steel: Efficient production 12
Plate / Section Steel Business Unit Heavy Plate Ilsenburger Grobblech GmbH Germany; shareholder: SZAG 100% Broad diversified heavy plate steel grades Construction plate, fine grained construction plate, alloyed and unalloyed boiler plate, offshore and tube grades High-strength and wear resistant grades 7% market share in the EU28 State of the art facilities, one of the most modern water quenching plants Shipments kt 796 761 Sales m 576 516 Employees 31/12/ 820 806 13
Plate / Section Steel Business Unit Heavy Plate Salzgitter Mannesmann Grobblech GmbH Germany; shareholder: SZAG 100% Heavy plate mill specialized in plate for longitudinally welded line pipe and similar applications, especially for EUROPIPE GmbH Pipe bending plant for seamless and welded steel tubes in carbon, alloyed, and high-alloy steels Test Center with a wide range of mechanical and technological tests Shipments kt 396 532 Sales m 308 360 Employees 31/12/ 724 686 Nr. 1 im Weltmarkt 14
Plate / Section Steel Business Unit Sections Peiner Träger GmbH Germany; shareholder: SZAG 100% Medium and heavy steel beams, Peine sections and sheet Progressive and flexible mini mill Two top-modern electric arc furnaces Adjusted crude steel capacity 1.0 mt / year 14% market share in the EU28 (plus N, CH) Two of the most efficient section mills worldwide with comprehensive range of products Shipments kt 995 977 Sales m 546 517 Employees 31/12/ 775 779 15
Plate / Section Steel Business Unit Other companies Deutsche Erz- und Metall-Union Germany; shareholder: SZAG 100% Specialist trader for ferrous scrap, non-ferrous scrap, new metals and ferro alloys, as well as rolled steel products Sales m 680 543 Employees 31/12 349 339 HSP Hoesch Spundwand und Profil GmbH Germany; shareholder: SZAG 100% Sheet piling, plain bulb plate, colliery arches Sales m 151 106 Employees 31/12 440 342 16
Mannesmann Business Unit Overview Capabilities Own crude steel supply via participation in Hüttenwerke Krupp Mannesmann GmbH Plant for the production of semis for the seamless tubes business Core competences and products Line Pipe: participation (50%) in the world market leader EUROPIPE; international presence Precision Tubes: European market leader Seamless Stainless Tubes: top player in the world market Longitudinal and spiral welded large-diameter pipes, medium line pipes, seamless and welded precision tubes, stainless tubes Sales by customer industry 2015 Key data FY 2015 Consolidated sales m 1,063 Earnings before taxes m 2 Core workforce (12/31) 4,895 Global player in the high quality segment of the global tubes market 17
Mannesmann Business Unit Line Pipes EUROPIPE GmbH Germany; shareholder: SZAG 50%, Dillinger Hüttenwerke 50% Longitudinal and spiral welded large-diameter pipes for transcontinental and underwater pipelines In-house coating activities World market leader (7% market share) 4 locations in D, USA Since January 1, 2014 reported at equity Shipments kt 409 697 Sales m 475 888 Employees 31/12/ 1,273 1,210 Nr. 1 im Weltmarkt 18
Mannesmann Business Unit Line Pipes Salzgitter Mannesmann Line Pipe GmbH Germany; shareholder: SZAG 100% HFI-welded medium line pipes incl. plastic- and cement coatings Sales m 242 177 Employees 31/12 505 479 Salzgitter Mannesmann Großrohr GmbH Germany; shareholder: SZAG 100% Spiral-welded large-diameter pipes made of hot-rolled coil Sales m 5 48 Employees 31/12 145 130 19
Mannesmann Business Unit Precision Tubes Salzgitter Mannesmann Precision Group Germany; shareholder: SZAG 100% Seamless and welded cold drawn precision tubes for the automotive and engineering industries as well as the energy sector State of the art push bench plant for the production of hollows Market leader in the EU28 (24% market share) 11 locations in D, F, NL and Mexico Shipments kt 282 264 Sales m 484 455 Employees 31/12/ 2,376 2,360 Nr. 1 im Weltmarkt 20
Mannesmann Business Unit Seamless Stainless Tubes Salzgitter Mannesmann Stainless Tubes Group Germany; shareholder: SZAG 100% Seamless hot- and cold finished stainless tubes for the chemical- and engineering industries, as well as for the energy sector 7% market share in the world 4 locations in D, F, I, USA Shipments kt 33 28 Sales m 349 307 Employees 31/12/ 1,013 1,002 Nr. 1 im Weltmarkt 21
Mannesmann Business Unit Significant shareholdings Hüttenwerke Krupp Mannesmann GmbH Germany; shareholder: ThyssenKrupp 50%, SZAG 30% + Vallourec 20% (Pool) Steel works with two blast furnaces Production of slabs and round steel bars Up to 1,000 different steel grades Yearly crude steel production of >5 million tonnes Sales m 2,414 2,005 Employees 31/12/ 3,013 3,027 Nr. 1 im Weltmarkt 22
Trading Business Unit Overview Capabilities 94 sites in 41 countries Own distribution network for steel products with warehousing sites in Europe Processing group specialized on heavy plate products International trading Core competences and products Global presence in all relevant regions with own representation Distribution channel for Salzgitter Group products Procurement channel for Salzgitter Group works Value add services for customers Sales by customer industry 2015 Key data FY 2015 Consolidated sales m 3,211 Earnings before taxes m 32 Core workforce (12/31) 1,858 High customer and market orientation through a global sales organization 23
Trading Business Unit Salzgitter Mannesmann Handel Group Salzgitter Mannesmann Handel Shipments 2015: 5.5 mt Sales 2015: 3.3 billion Trading Stockholding Agencies International 10 Companies 3 Rep. offices Salzgitter Mannesmann International GmbH Düsseldorf (SMID) Salzgitter Mannesmann Stahlhandel GmbH Düsseldorf (SMSD) 15 Branches with warehouses and further processing (incl. 4 flame cutting plants), 4 Sales offices Europe 7 Companies Europe 4 Agenturen Salzgitter Mannesmann International (USA) Inc. Houston (SMIH) Stahlcenter Baunatal GmbH (SCB) Salzgitter Mannesmann International (Canada) Inc. (SMIV) Sales distribution of SMHD-Group SMID: 51% SMIH: 9% SMIV: 3% SMSG; 2% SMSD: 26% SMNL/PL/CZ/HU/UK: 11% 77 locations in 38 countries with 1,872 employees 24
Technology Business Unit Overview Capabilities 17 Production plants worldwide 60 Service sites > 90% of sales outside of Germany Core competences and products KHS: among the top 3 global suppliers for filling and packaging machines; technology and innovation leadership DESMA Elastomertechnik: Global leader for rubber and silicon injection molding machines DESMA Schuhmaschinen: World market leader for the production of machines for the production of shoes and shoe soles Turn-key lines, single machines and service Sales by customer industry 2015 Key data FY 2015 Consolidated sales m 1,310 Earnings before taxes m 25 Core workforce (12/31) 5,146 Top 3 producer for filling and packing industry, world market leader for rubber and silicon injection molding as well as direct soling machines 25
Technology Business Unit Filling and packaging KHS-Group Germany; shareholder: SZAG 100% A global leader and solution provider of first choice in the packaging industry Among the Top 3 producers Focus on beverage applications Supplier of single machines and turnkey solutions (one-stop-shop supplier) Leadership in technology and innovation 11 production sites: 5 in Germany, 2 in the US, and 1 each in Mexico, Brazil, China and India Umsatz Mio. 1,077 1,172 Mitarbeiter 31.12. 4,223 4,421 Nr. 1 im Weltmarkt 26
Technology Business Unit Special machinery Klöckner DESMA Elastomertechnik Group World market leader for rubber and silicone injection molding machinery Sales m 79 97 Employees 31/12 459 494 Klöckner DESMA Schuhmaschinen World s largest producer of machines for the fabrication of shoes and shoe soles Sales m 43 37 Employees 31/12 195 203 27
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