Full Year 2021 Salzgitter AG Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : Can you hear me?

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : Okay. Thank you. I'll take one question at a time. First, start again also with cycle. So these are quite ambitious plans. So you have to ramp up the facilities and you have to certify the products going forward. Are there any fines or penalties you have to pay if you are not able to deliver 2025, '26 to BMW or Volkswagen. This is the first question.

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : Okay. Thank you. Then we have EUR 100 million plus in deferred taxes in just 1 quarter. Is this only related to increasing expectations for earnings?

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : Very good. Then KHS guidance. you expect higher sales but an operating EBT below 2021. Can you give us some kind of an indication why this is the case?

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : So the underlying operating profitability should increase, especially for the DESMA companies I would suppose.

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : Perfect. So then I have another question concerning HKM. So what is the underlying assumption for the impairment. So currently, of course, you say you can -- you try to get as much as the product out of HKM as possible. Nevertheless, you're discussing in the future, of course, everyone can accept that. But what is the underlying assumption for the impairment.

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : Perfect. And then I have a last one. If I have seen it right, Mr. Becker, you are responsible now going forward for the steel processing unit also. Where do you see the main charge to improve results in that area.

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : Okay. Thank you very much, and all the best for your long-term plans.

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : A quick follow-up from my side as well. Just coming back to SALCOS and your whole decarbonization approach. So I have to say, I think you made really good progress when it comes to aligning your efforts with a couple of key strategic partners both on the upstream side, but then also obviously on the client side, where you signed a couple of agreements just on these agreements with your customers, how will you handle the pricing for the low CO2 steel here? And how far has this already been defined in the supply agreements with the likes of Volkswagen and BMW, et cetera?

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : Yes. I'm not sure whether that has been tackled in the beginning of the presentation today. Regarding the blast furnace reline next year, have you quantified the good steel shortfall and the earnings impact associated to that.

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : No, in '23?

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : And what's the actual volume shortfall in '23 during the shutdown?

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : Sorry for that. How long is this blast furnace reline is scheduled to take place, i.e., how much is the crude steel volume loss you're expecting? And what is the earnings impact of the whole measurement?

Question: Christian Obst - Baader-Helvea Equity Research - Analyst : And on SALCOS more generally, now with natural gas prices going to the moon. How is that, in your view, altering the plans, how likely is it that this all been done by 2033 because the gap between the existing coal world to the gas world and the hydrogen world is obviously getting even bigger than it has been before the outbreak of the war.