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17th German Corporate Conference

Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive BoardFrankfurt, January 15, 2018

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1 Market Situation2 Financials3 Strategy4 Guidance

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Environment IMarket Situation

For the most part stagnating industrial production in the EU; raw material prices very volatile

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Raw materials

Iron ore(62% Fe CFR China,

US$/dmt)

Coking coal(FOB Australia,

US$/t)

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40

50

60

70

80

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100

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100

150

200

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90

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Jan 07 Jan 09 Jan 11 Jan 13 Jan 15 Jan 17

Industrial production

(Jan. 2007 = 100)

France Italy SpainGermany GB

78%82%

92%94%

108%

10/17

Source industrial production: Eurostat, own calculations, last data point October 2017

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0

500

1,000

1,500

2,000

2015 2016 Q1-Q3 2017

China Russia Ukraine Turkey India Rest

Environment IIMarket Situation

International trade policy

International trade policy dominated by protectionism;European AD-measures against China having impact – steel imports into the EU remain at a high level

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Steel imports into the EU-28

Import of finished steel products (1,000 t/month)

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250

300

350

400

450

500

550

600

650

700

Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18

Following a period of recent rises, steel prices are stabilizing at the moment; different trading policies result in regional price variations

Steel pricesMarket Situation

Spot prices Northern Europe

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Hot-rolled coil prices international

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Northern Europe EXW Ruhr USA EXW Indiana China Schanghai

(€/t) (€/t)

HRC EXW Ruhr Plate EXW Ruhr Medium sections

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300

350

400

450

500

550

600

650

700

Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18

01/18

01/18

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1,604 1,530 1,423 1,549

1,8971,457 1,339 1,393

9071,177 1,247

1,429

391 581 645761

654 964 1,1131,123

1,346 1,4891,702 1,872344

358386 386

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2017 2023 2030 cons. 2030 prog.

Drivetrain

Chassis

Alu.

PHS

UHSS

AHSS

HSS

LSS

2025-2030

Stability

ModerateGrowth

ModerateGrowth

Electromobility…

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Market Situation

…is more opportunity than threat for Salzgitter Group!

+

-

Rising vehicleproduction

Smaller drivetrains

+ Rising vehicleproduction

Steel canreplace alu.

+ Rising vehicleproduction

Reinforcedchassis

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+

Strip steel demand for SZFG-relevant OEM 2030 (EU28)

Bod

y

(Tt)

Source strip steel demand: EurocarBody, PWC Autofacts, own calculations; Low Strength-, High Strength-, Advanced High Strength-, Ultra High Strength Steel, Press Hardening Steelengl

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Cold roller

Autobody

Autochassis

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1 Market Situation2 Financials3 Strategy4 Guidance

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Key data per 2017/09/30

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Financials

Best result for a nine-month period since 2008

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9M 2017 9M 2016 Δ Q3 2017 Q2 2017 Q1 2017

Crude steel production kt 5,151.0 5,171.6 -20.6 1,735.7 1,675.7 1,739.6

External sales1 € million 6,813.2 5,860.5 952.8 2,197.1 2,262.3 2,353.9

Earnings before tax € million 174.5 21.1 153.3 74.2 23.1 77.1

Earnings after tax € million 112.6 14.6 98.1 48.0 15.9 48.7

Earnings per share ndiluted) € 2.01 0.21 1.80 0.87 0.27 0.87

ROCE % 7.9 2.1 5.8 9.3 4.0 10.3

Core workforce2 23,276 23,356 -80 23,276 23,296 23,287

1 only from entities within the Group of Consolidated Companies of Salzgitter Group 2 per reporting date

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9M 2017 9M 2016

Earnings before taxes € million 174.5 21.1

Strip Steel € million 159.2 -27.4

Plate / Section Steel € million -18.7 -24.7

Mannesmann € million 1.4 2.4

Trading € million 44.8 31.7

Technology € million 17.8 17.1

Indust. Participation / Consolidation € million -30.0 22.0

thereof Aurubis investment* € million -8.7 16.8

Earnings development of business units

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Financials

*) including € -80.0 million in valuation effects from the exchangeable bond (9M 2016: € -16.7 million)

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Salzgitter Group on course with third earnings increase in sequence

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1 Market Situation2 Financials3 Strategy4 Guidance

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Programs of measures

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Strategy

2017 – 2021> € 200 million p.a. additional profit contributions

Group Strategy SZAG 2021

FitStructure SZAG

Growth programs

2017 2018 2019 2020 2021

Organic growth in product areas with high contribution margins Develop potential through investments and R&D initiatives Expansion of the share of non-steel sales from currently 40% to 50%

Focus on cost savings and efficiency enhancement Substantial part from heavy plate companies and Mannesmann Business Unit

2017 – 2021Around € 170 million p.a. earnings improvement potential

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Strategic cornerstones for the development of the Group

Rolled steel production and parts of the tubes production can only grow qualitatively, not quantitatively.

Quantitative growth is possible exclusively in activities apart from steel – especially in the Technology Business Unit.

External growth on a larger scale is not mandatorily necessary for the development of the business units –can, however, be desirable for the Technology Business Unit, especially for product and technology expansion.

Goal: Stipulations:

SZAG 2021 growth programs

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Steel-related Less steel-related

60% 40%

50% 50%2021

2016

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Strategy

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Key component in the group’s “Salzgitter AG 2021” strategy

SZAG 2021 – example Hot-Dip Galvanizing Line 3

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Strategy

Strategy SZAG 2021 – focus on growth Satisfaction of rising quality requirements by customers Reinforcement of the market position in the

automotive segment Expansion of the galvanizing capacity

FitStructure SZAG – cost cutting and efficiency improvement Shortening of retooling standstills due to greater

specialization of the lines within the galvanizing shop along distinct product divisions

Goal: Compensation of the market-induced lower demand for

elo-galvanized steel Satisfaction of higher demand for high- and ultra high-

strength hot-dip galvanized steels

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Key component in the group’s “Salzgitter AG 2021” strategy

SZAG 2021 – example Precision Tubes

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Strategy

Structural tube

AirbagsPump case

Stabilizers

Suspension components

Seat belt- IHU/IHVfixings

Engine-components

Drive shaftsDrivetrain and steering components

Camshafts

Strategy SZAG 2021 – focus on growth Expansion of the plant in Mexico Construction of a production line for thick-walled tubes Upgrade of the existing finishing line

FitStructure SZAG – cost cutting and efficiency improvement Realignment of Mannesmann Precision Tubes Group as a

technology provider Program comprising 180 individual measures

Goal: Sustainable pre-tax margin of 5% as of 2021 Growth with profitable products Extension of the value chain Growth through internationalization

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1 Market Situation2 Financials3 Strategy4 Guidance

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Salzgitter Group – Guidance from November 14, 2017Guidance

We affirm our earnings forecast for the financial year 2017 that we raised on October 24, 2017 and anticipate:

a pre-tax profit of between € 175 million and € 225 million, as well as

a return on capital employed (ROCE) that discernibly exceeds the previous year's figure.

an increase in sales to around € 9 billion,

Legal Note and other remarks

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 exchange rates, may still significantly affect performance in the course of the financial year 2017.

To the extent that this presentation contains statements oriented towards or related to the future, such statements are based on our current state of knowledge and the estimates based on such knowledge made by the management of Salzgitter AG. However, as is the case with any forecasts or prognosis, such statements are also subject to uncertainties and risks. Notwithstanding prevailing statutory provisions and capital market law in particular, we are not obligated to update this data. In particular, we shall not assume liability of any kind for knowledge and statements, as well as any acts resulting on the basis of such knowledge or statements that emanate directly or indirectly from the analysis of the data, content and correlations of this document. The information and data made available do not represent an encouragement or invitation to buy, sell or conduct any other type of trade in securities. Salzgitter AG shall neither assume liability for direct nor indirect damages, including lost profits, arising as a result of the utilization of the information or data contained in this document.

For computational reasons, rounding-off differences of +/– one unit (€, % etc.) may occur in the tables. This document is also available in German language. In the event of any discrepancy, the German version shall prevail.

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17th German Corporate Conference

Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chairman of the Executive BoardFrankfurt, January 15, 2018