The fourth period of the EU emission trading scheme will commence on January 1, 2021 and will run up until and including 2030. Following the finally determined, externally verified data for our applications for the free allocation of CO₂ allowances that are due for submission at the end of June, we assume that the allowances purchased by us as a precautionary measure will compensate the estimated shortfall for the most part in respect of the subsidiary companies of Salzgitter AG that are subject to the emission trading system. As it is not certain whether - and in the event when - technical CO₂ mitigation options will be available, this procedure considered to be of an equal standing by the emission trading system was taken. The market value of all CO₂ allowances acquired as a precautionary measure exceeds the figure accounted for in the balance sheet as of today's date by around EUR 300 million. They therefore constitute an asset that cannot be derived from the balance sheet. Consequently, we decided to publish this information in the form of an ad-hoc release.

We make reference to the fact that, on the one hand, the value of the CO₂ allowances acquired is a stock market value and is therefore subject to fluctuations. On the other, the actual amount of the shortfall of free allocation can only be determined once the allocation procedure is complete. In addition, it is ultimately based on the actual need for allowances depending on production over the course of the fourth trading period.

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]