DGAP-News: Salzgitter AG / Key word(s): Final Results Salzgitter AG: Key data for the financial year 2013 - Crisis in Europe's industry impacts the financial year 2013 - focus on the consistent implementation of 'Salzgitter AG 2015' 28.02.2014 / 07:30 --------------------------------------------------------------------- - Sales markets for rolled steel, tubes and pipes in generally poor shape in 2013; idle capacities generate fierce price competition - Implementation of restructuring program "Salzgitter AG 2015" underway, with the first measurable successes - Equity ratio of around 40 %; net credit balance of EUR 300 million - Guidance for the financial year 2014: sales growth and a significant improvement in pre-tax result compared with 2013 The structural crisis prevailing in the European steel industry presented the Salzgitter Group with special challenges in the financial year elapsed. Increasingly fierce price-led competition in the European market, combined with the drastic capacity underutilization of the large-diameter tubes business, incurred a significant impact on earnings. In addition, impairment at Peiner Träger GmbH, along with non-recurrent restructuring expenses, burdened earnings before taxes in an amount of EUR 240 million. Against this backdrop, the "Salzgitter AG 2015" program, initiated back in the autumn of 2012 and implemented as from the second half of 2013, will be assigned the highest priority in the future as well. The first measurable successes create additional motivation for forging ahead with the comprehensive measures. An equity ratio of almost 40 % and a net credit balance of EUR 300 million as of December 31, 2013, form a sound financial basis for this. The Group's external sales declined to EUR 9,244.2 million (2012: EUR 10,397.2 million) owing to lower average selling prices for many steel products and reduced shipment volumes in the Tubes and Trading divisions. All in all, the Salzgitter Group reported a pre-tax result of EUR -477.8 million (2012: EUR -29.4 million). This figure includes restructuring expenses of EUR 54.6 million incurred by the "Salzgitter AG 2015" program, impairment of EUR 185.0 in the sections business, as well as EUR -55.4 million in negative after-tax contribution (2012: +EUR 55.5 million) by Aurubis AG, a participation included at equity. The after-tax result stood at EUR -489.6 million (2012: EUR -99.8 million), which brings earnings per share to EUR -9.10 (2012: EUR -1.89). Return on capital employed (ROCE) stood at -10.5 % (2012: 1.3 %). External sales by Division (EUR million):

                                       FY 2013                   (FY 2012)

Steel                                  2,388.2                   (2,654.7)

Trading                                3,878.6                   (4,646.8)

Tubes                                  1,423.4                   (1,559.5)

Services                                 399.2                     (412.4)

Technology                             1,123.6                   (1,093.6)

Other / Consolidation                     31.4                      (30.2)

Group                                  9,244.2                  (10,397.2)

Earnings before tax (EBT) by Division (EUR million):

                                        FY 2013                   (FY 2012)

Steel                                    -428.2                    (-176.3)

Trading                                    25.7                      (77.1)

Tubes                                     -94.8                       (7.8)

Services                                    5.2                      (15.9)

Technology                                 13.9                       (9.5)

Other / Consolidation                       0.4                      (36.7)

Group                                    -477.8                     (-29.4)

The following guidance was compiled on the basis of the new Group organization structure that took effect on January 1, 2014. Guidance on the development of the macroeconomic situation is already fundamentally subject to a great deal of uncertainty, particularly in the current environment prevailing in Europe. In addition, the impact on earnings resulting from European and German energy and climate policies is difficult to predict. The forward-looking statements below assume the absence of renewed recessionary development in Europe. Instead, we anticipate a relatively restrained economic recovery in volumes and selling prices in the current financial year, with markets remaining fiercely contested. Based on planning by the individual business units, and taking account of notable successes from measures, as well as structural improvements from the "Salzgitter AG 2015" groupwide project, we assume the following in the year 2014: - sales of around EUR 10 billion, - a significant increase in the pre-tax result, approximating breakeven, compared with the financial year 2013 and - a moderately positive return on capital employed. Additional information can be found in the press release published today (www.salzgitter-ag.com/en). The annual report for the financial year 2013 will be published on March 28, 2014. As in recent years, we make reference to the fact that opportunities and risks from currently unforeseeable trends in selling prices, input material prices and capacity level developments, as well as changes in the currency parity, may considerably affect performance in the course of the financial year 2014. The resulting fluctuation in the consolidated pre-tax result may, as current events show, be within a considerable range, either to the positive or to the negative. The dimensions of this range become clear if one considers that, with around 12 million tons of steel products sold by the Strip Steel, Plate / Section Steel, Energy and Trading business units, an average EUR 25 contraction in the margin per ton is sufficient to cause a variation in the annual result of more than EUR 300 million. Moreover, the accuracy of the company's planning is restricted by the volatile cost of raw materials and shorter contractual durations, on the procurement as well as on the sales side. Disclaimer: Some of the statements made in this report possess the character of forecasts or may be interpreted as such. They are made upon the best of information and belief and by their nature are subject to the proviso that no unforeseeable deterioration occurs in the economy or in the specific market situation pertaining to the division companies, but rather that the underlying bases of plans and outlooks prove to be accurate as expected in terms of their scope and timing. Notwithstanding prevailing statutory provisions and capital market law in particular, the company undertakes no obligation to continuously update any forward-looking statements that are made solely in connection with circumstances prevailing on the day of their publication. Contact: Markus Heidler Head of Investor Relations Salzgitter AG Eisenhüttenstraße 99 38239 Salzgitter Phone +49 5341 21-6105 Fax +49 5341 21-2570 E-Mail [email protected] End of Corporate News --------------------------------------------------------------------- 28.02.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Salzgitter AG Eisenhüttenstraße 99 38239 Salzgitter Germany Phone: +49 5341 21-01 Fax: +49 5341 21-2727 E-mail: [email protected] Internet: www.salzgitter-ag.de ISIN: DE0006202005 WKN: 620200 Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover; Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 254829 28.02.2014