Annual General Meeting of the Shareholders of Salzgitter AG

Prof. Dr.-Ing. Heinz Jörg Fuhrmann Chairman of the Executive Board of Salzgitter AG

Braunschweig, May 23, 2019 english english *) Current share price plus aggregated gross dividend in relation to € 11.76 issue price price to € 11.76 issue relation in dividend gross aggregated plus price share Current *) Review: 20-year Review: anniversaryof thenew Salzgitter listing AG 2019 23, on May Shareholders of Meeting General Annual innovative steel and group.” technology and starting pointto create a future-oriented the wasfurthermore stocklisting The safeguarded the jobs. LowerSaxony as an industrial location and strengthened success storyThis not only are a success story ‘parexcellence.’ subsequent development “The stock and the listing inthe 1998 year Former Federal Chancellor Schröder on Gerhard Former 2 ar ösnuiämSalzgitter AG“ „20 Jahre Börsenjubiläum of the companyof the occasion of the event occasion ofthe on August 30, 2018

    . . . . than tripled* of shareholders more Investment additions Equity quintupled without external doubled Workforce Sales tripled 2 SZAG Investor Relations

english 4 3 2 1 Explanations on Explanations the Agenda Group Strategy „SZAG 2021“ Year Financial Results andFirst Quarter 2018 2019 conditions framework current 2018 / 19 Environment – 3 SZAG Investor Relations english Mindmap of framework conditions offramework and risk factors Mindmap 2019 23, on May Shareholders of Meeting General Annual “Energiewende” “Energiewende” and climate policy and climate EU environmental in Germany consolidation and EU steel market: EU steel restructuring • Additional provisions Additional • Restriction of CO • EEGlevy,charges, grid • Erosion of the auto • EU steel industry of the the competitiveness Additional costs burden phase-out of coal industry 2 certificates Emergence of “new” Emergence of “new” EU suppliers “safeguards” Mitigation through behavior Increased “boisterous” Collateral damage Volume and price-based competition

Societal /social changes

Tradeas a“weapon” policy (Tariffs, Nord Stream II …) “Battle of the Titans” Forced economic as a life component as alife of Lower significance work China vsUS slowdown 4 SZAG Investor Relations english Source: Pieterson Institute for Internationa Institutefor Pieterson Source: TradeContinual escalation policy: 2019 23, on May Shareholders of Meeting General Annual 2018 Washing machines US-millet imports, imports, US-millet termination of the the of termination fet ..China affects a.o. and solar panels, Anti-dumping negotiations in negotiations proceedings: Safeguard Safeguard tariffs after $ 10.3bn 05/2018 duties: 01/2018 421 04/2018 04/2018 $ 1 bn l Economics; values of the imported goods affected by the respective sanctions in US respective sanctionsthe goodsimportedl affected in the Economics; byvalues of Steel & Steel aluminum imports, affectsin a.o. scrap, nuts, nuts, scrap, a.o. Countervailing Section 232 Section part China part $ 17.9bn duties: $ 2.7bn tariffs: 04/2018 07/2018 + 08/2018 fruit ftetaecnlc S China of thetradeconflictUSA- Industrial products products Industrial such as electrical such as electrical Countervailing a.o, agricultural agricultural a.o, 07/2018 + 07/2018 + 08/2018 equipment and equipment $ 29.6+16bn Section 301 Section US imports $ 34+ 16 bn machines duties: tariffs: Industrial products, products, Industrial but also consumer also but preliminaries and Countervailing capital goods. goods. capital Section 301 Section Especially $ 200bn tariffs: duties: 09/2018 09/2018 $ 60bn -Dollar (estimated) -Dollar goods 2019 Negotiations Negotiations 01/2019 01/2019

Increase of various of Increase tariffs introduced in tariffs introduced

from June 1, 2019 1, June from

from 10% to 25% to 10% from September 2018 September Countervailing Increase of the the of Increase existing duties existing duties Section 301 Section adopted adopted ($ 60bn) $ 200bn duties: tariffs: 05/2019 05/2019 5 SZAG Investor Relations english Source: Pieterson Institute for International Economics Economics International for Institute Pieterson Source: steel andtubes imports steel on protective tariffs 232 of 25%Section EU the from imports to applyalso 232 tariffs now Section submitted to the President for resolution for President the to submitted been parts has auto carsand 232 report on Section tariffs on cars and auto parts by up to 180daysto up parts byauto tariffs carsand on TrumpPresident decis postpones EU: US importon steel tariffs products start trade policydispute 2019 23, on May Shareholders of Meeting General Annual ion on possible protective EU also affected by the new US conduct bythe new EU also affected 2018 Mar. June 2018 2019 Feb. 2018 June

2019 2018 July May 2019 Feb. countervailing duties countervailing 232andadoption to the of Section complaint WTO against EU 2019 April

mitigate the diversionary effects into the EU market EU the effects into diversionary the mitigate EU Commissionadopts preliminar adopted Safeguard measures June2021wereFinal until conduct FTAconduct US the with negotiations to Commission EU authorize Member states y Safeguard measures to 6 SZAG Investor Relations english Source: Eurofer, USITC EU: as collateral damage Steel imports 2019 23, on May Shareholders of Meeting General Annual 1,000 1,500 2,000 2,500 EU import volumes as a result of diversionary effects on record level. Softening of the Safeguard to of the measures risk Softening on record level.effects of diversionaryresult volumesas a EU import 500 China Ukraine Russia Turkey India South Korea Iran Brazil Others China - Ukraine Import situationEU (in 1.000t/month) 2014 2016 2018 Q1 2019 Q1 2018 2016 2014 Russland Türkei Indien +60 % Südkorea Iran further decrease their effectiveness. Brasilien Sonstige Imports Imports into the EU vs. USA in 2018/2017 annualcomparison cumulative -4,500 -3,500 -2,500 -1,500 1,500 2,500 3,500 4,500 -500 Diversionaryeffects due to US (in 1.000t/month) tariffs 500 326 382 798 -846 1,433 -1,863 2,301 -2,911 -3,287 2,879 2,707 -3,528

+2.4 mt +2.4 40mt -4.0 7 SZAG Investor Relations english Business climate in Germany in Business climate 2019 23, on May Shareholders of Meeting General Annual Starting from a high level, the sentiment is worse than the situation. worse is the sentiment a highlevel,from Starting Uncertainties due to risks impair the economy.political

SZAG Investor Relations english Source: Eurostat, own research, last figure from February 2019 February from figure last research, own Eurostat, Source: Environment: Economic development in the European Union 2019 23, on May Shareholders of Meeting General Annual 100 110 120 60 70 80 90 0720 0921 0121 0321 0521 0721 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Germany The trend of the previous years continued: Slightly improving EU industrial production, EU industrial improvingSlightlycontinued:the previousyears The trend of Germanydespite deterioration in thesecond half of 2018 strong. remains relatively GB Industrial production in selected countries of the EU (Jan. 2007 = 100) the EU(Jan.2007= countries of selected production in Industrial France Italy Spain 9 SZAG Investor Relations english Source: own calculations own Source: Cost burdens from energy and climate policy 2019 23, on May Shareholders of Meeting General Annual The burdens are set to increase. The extent of energy transition related cost increases on network charges and the cost increases onnetwork related energytransition The extent of increase. The burdens set to are In € million 100 120 140 20 40 60 80 0 effects from the abolition of coal-based energy are currently nearly impossible to forecast. impossible nearlyof coal-based energyare currentlythe abolition from effects 0221 2025 2018 2012 25 ETS direkt (Unterdeckung aus kostenfreier Zuteilung; ohneHKM) ETS direkt (Unterdeckungaus ETS indirekt (abzüglichStrompreiskompensation) EEG-Umlage AnteilNetzentgelte energiewendebedingter Kohleausstieg vorgesehenem nationalen Strompreissteigerung aufgrund ETS ETS direct (deficit fromfreeallocation; excluding HKM) price compensation) indirect (minus electricityETS Renewable Energies Act levy (EEG-Umlage) charges the networkof transition inducedpart Energy the plannednational price increasedueto abolition Electricitycoal-based electricity of 60 115 10 SZAG Investor Relations Source: Deutsche Welle, IG Metall Source: IGDeutsche Welle, Social changes… 2019 23, on May Shareholders of Meeting General Annual … are also reflected in concrete demands on companylevel.in also reflected … are latest collective bargaining round in the steel industry steel the in round bargaining collective latest of thenegotia Excerpt 0t 0 600Euro 800 Euro 400Euro 200Euro 0 Euro 2 1 3 4 5 More than 80% 60 to80% 40 to60% 4 1 – K/T Group 9 |Salary 1 – Wage Group 20 to40% Under 20% time spare for Applications tion agreement of the of agreement tion Days Compensation 1 Compensation Days 11 SZAG Investor Relations english Source: Platts Source: Raw materials Raw prices 2019 23, on May Shareholders of Meeting General Annual 09 rc ees–epcal o rnoe–expected to be abovethe average of 2018 especiallyfor iron ore – 2019: price levels– 100 110 50 60 70 80 90 (62% Fe CFR (62% China, US$/dmt) Average 2017 Volatilebut also opportunities; markets harbor risks, materials raw Iron ore Average 2018 100 150 200 250 300 350 (FOB Australia, US$/t) oigcoal Coking 12 SZAG Investor Relations english Source: Platts Source: (€/t) Steel prices… 2019 23, on May Shareholders of Meeting General Annual HRC EXW HRC EXW Ruhr 300 400 500 600 700 800 900 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jan 18 Jul 18 Jan 17 Jul 17 Jan Spot prices Spot prices Northern Europe Plate EXW Ruhr Plate EXW …decline since mid-2018 with short interruptions following …decline since periods short interruptions following mid-2018 with of rises; disparate trading policies result intremendous regional price differences. Medium sections

Signs indicate towards Signs indicate towards infection point in the EU. 05/19 (€/t) 300 400 500 600 700 800 900 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jan 18 Jul Jan 18 17 Jul Jan 17 Hot-rolled coil prices international prices Hot-rolled coil Northern Europe EXW Ruhr Europe EXW Northern USA EXW Indiana USA EXW Turning point!?

China Schanghai 13 05/19 SZAG Investor Relations english 4 3 2 1 Explanations on Explanations the Agenda Group Strategy „SZAG 2021“ Year Financial Results andFirst Quarter 2018 2019 conditions framework current 2018 / 19 Environment – 14 SZAG Investor Relations english 20 of the the year 2018 successful veryhas been of the stock listing At a glance 2019 23, on May Shareholders of Meeting General Annual th Salzgitter AG Salzgitter AG anniversary of Guidance 2019: Solid results expected despite headwinds (€ 0.55per share) Dividend proposal 2018 increased versus previous yearbya good20% Future-oriented investmentsadvanced Around €150m p.a.inearnings improvement almost 50% profit raisedbyPre-taxversus theprevious year ten yearsBest earnings of thepast potential realized for the first time first the potentialrealized for 15 SZAG Investor Relations english Key dataper2018/12/31 2019 23, on May Shareholders of Meeting General Annual ROCE Crude steelproduction [%] 072018 2017 2018 2017 6,955 8.6 (+1%) +1,7 +84 7,039 10.3 [kt] Net financial position Consolidated sales 072018 2017 072018 2017 8,990 381 (+3%) -189 +288 [€ million] [€ million] 9,278 192 Core workforce EBT [€ million] 23,139 072018 2017 072018 2017 238 (+46%) +384 +109 23,523 347 16 SZAG Investor Relations englishenglish Earnings beforetaxes Disclosure of im of Disclosure € 13. incl. 2017: 3) m restructuring € 21.0 incl. 2017: | m impairment € 30.0 incl. 2) 2018: m impairment € 48.8 incl. 2017: 1) Earnings development ofbusiness units 2019 23, on May Shareholders of Meeting General Annual Mannesmann Indust. Participations / Consolidation Plate / Section Steel Plate / Technology Trading Strip Steel p airment/writeu thereof Aurubis investment thereof Aurubis 3) p onl 2) y if the cash flows are allocated to a to allocated are flows cash the if 1) Salzgitter Group deliversthe best result for the last ten years g 4) rou p of of assets € million € million € million € million € million € million € million € million 1 m restructuring 4) 2018: incl. m writeup € 12.9 incl. 2018: 4) restructuring m 1 Y21 FY 2017 FY 2018 205.8 347.3 44.0 28.4 43.1 50.5 24.8 -5.4 182.0 238.0 -57.7 79.3 42.2 70.5 -5.6 6.6 Δ + + + + + 08–2017 2018 – - - - 109.3 82.5 36.5 23.8 35.3 13.8 20.0 0.2 17 SZAG Investor Relations english 1) 1) Special effects 2019 23, on May Shareholders of Meeting General Annual

Disclosure Disclosure as an impairment/write-up in this overview has only € million Pre-tax result excluding special effect around higher than reported figure 20%excluding special effect result Pre-tax been reported if the cash flows ar flows the cash been reported if 1) e allocated asse e group of to a 1) ts. 18 SZAG Investor Relations english Earnings bridge Group 2019 23, on May Shareholders of Meeting General Annual € million € million Effects from the programs of measures were the main driver of the earnings improvementof driverthe main measures were the programs of from Effects 19 SZAG Investor Relations english Key dataper2019/03/31 2019 23, on May Shareholders of Meeting General Annual ROCE Crude steelproduction 121 Q1 2019 Q1 2018 Q1 2019 Q1 2018 [%] 1,774 11.6 (-2%) +2,5 -34 1,740 14.1 [kt] Net financial position Consolidated sales 121 Q1 2019 Q1 2018 121 Q1 2019 Q1 2018 2,307 320 (-1%) -212 -14 [€ million] [€ million] 2,294 108 Core workforce EBT [€ million] 121 Q1 2019 Q1 2018 121 Q1 2019 Q1 2018 23,333 96 (+31%) +350 +30 23,683 126 20 SZAG Investor Relations english We make explicit reference to the fact that imponderables, including changes in the cost of raw materials, precious metal price materials,metal precious raw of cost the in changes imponderables, including that fact the to explicit reference make We remainder the However, for range. reliability aforementioned forecasting remarks other and Note Legal the present. reduced at of associated premature end the be upper and to the EU, forecast in the the revising in more consider only rather we not result year, situation, pre-tax financial economic the a unstable of expect the currently to we reference quarter, with first strong a Following fin the for guidance its affirmes AG Salzgitter However,as is the casewithforeca any on are based statements such future, the to or related towards oriented statements contains presentation this that extent the To course the financial of the year. shall not assume liability of any kind for knowledge and statements, as well as any acts resulting on the basis of such knowled such of basis the on resulting acts as anywell as statements, and for knowledgekind any of liability assume not shall For computational reasons, rounding-off differences of +/– one unit (€, % etc.) may occur in the tables. This document is a is also document This tables. % in the occur may (€, etc.) unit one +/– of differences rounding-off reasons, For computational document. in this contained ordata information the of utilization the of result tr of type other any or sell buy, conduct to or invitation an encouragement represent not do available made data and information . . . azitrGop–Guidance Salzgitter Group – 2019 23, on May Shareholders of Meeting General Annual a pre-tax profit of between € 125 million and € 175 million and 175million and € 125million between € of profit a pre-tax mark, € 9.5 billion to abovethe in sales increase a slight a return on capital employed (ROCE) that is tangiblybelow the previousyear’sfigure. sts or prognosis sts or , such statements are al such statements are , so subject so subject to uncertain ties and risks. ties and Notwithst nilya 09 ecniu oanticipate: to continue We 2019. year ancial s and exchange rates, along with global trade policy measures and their possible impact may still exert a considerable influence considerable a exert still may impact possible their and measures policy trade global with along rates, exchange and s eo ttmnsta mnt ietyo nietyfo h nlsso h aa otn n orltoso hsdcmn.T document. this of correlations and content data, the of analysis or the from directly indirectly emanate that or statements ge anding prevailing statutory provisions and capital market law in particular, we are not obligated to update this data. In parti In data. this update to obligated not welaware in particular, market capital and provisions statutory prevailing anding vailable in German language. In the event of any discrepancy, the German version shall prevail. version German the discrepancy, any of event the In language. inGerman vailable ade in securities. Salzgitter AG shall neither assume liability for direct nor indirect damages, including lost profits, arisin profits, lost including damages, indirect liability nor direct assume for neither AG shall Salzgitter ade insecurities. our current state of knowledge and the estimates based on such knowledge made by the management of Salzgitter AG. AG. Salzgitter of management the by made knowledgeon such based estimates the and knowledgeof state our current gas a cular, we over over he

SZAG Investor Relations english 4 3 2 1 Explanations on Explanations the Agenda Group Strategy „SZAG 2021“ Year Financial Results andFirst Quarter 2018 2019 conditions framework current 2018 / 19 Environment – 22 SZAG Investor Relations english Review Review 2019 23, on May Shareholders of Meeting General Annual Initial emphasis on restructuring and cost reduction measures and cost emphasis onrestructuring Initial > € 600million € p.a. € 260 million p.a. “Salzgitter AG 2015” AG“Salzgitter 02–2016 2012 – Structural measures 2012-2018 earnings improvement € 350 million p.a. under (since end 2016 of combined programs Other potential realized potential FitStructure SZAG) 23 SZAG Investor Relations english Goals Start 2016 “Salzgitter AG 2021” growth strategy growth 2021” “Salzgitter AG 2019 23, on May Shareholders of Meeting General Annual 2019 Target Steel-related Q1 50% 56% 0 40% 60% Less steel-related 44% 50% . . . Stipulations desirable can, – units business the of development the is growth External Technology from steel exclusively in activities apart Quantitative growth quantitatively. qualitatively grow the of Rolled steel production steel Rolled not mandatorily necessarynot mandatorily tubes production tubes . especially in the – however, Business Unit. on a larger scale , not not , is possible be can only and parts for shareholding the of Increase Aurubis AG Hydroforming, Salzgitter VentureJoint Baolong SOTEP,Acquisition Mexico groupin tubes precision Expansion DESMA “FactoryAchimof theFuture”, SZFG and ILG large-scaleinvestments this to grades: andhighest-strength high- towards portfolio the of Development Status implementation    24 SZAG Investor Relations english Commissioning line at the Plochingen site cutting the Expansion of Handel SZ Mannesmann Investmentsthe developmentinto of theGroup 2019 23, on May Shareholders of Meeting General Annual 2015 injection plant pulverized coal Construction ofthe Flachstahl Salzgitter vacuum degassing plant Construction ofthe RH Salzgitter Flachstahl 2017 Expansion plant inMexico We invest into the sustainability of our Group: Wethe sustainabilityinto invest Precision Tubes Mannesmann € 2.5 billion since 2012! billion € 2.5 0922 2022 2020 2019 New heat treatment line treatment heat New Ilsenburger Grobblech DESMA Schuhmaschinen „Factoryof the Future“ “Digital Roadmap 2022” “Digital Roadmap Hot-Dip Galvanizing Line 3 Salzgitter Flachstahl 25 SZAG Investor Relations english 10 20 30 40 50 60 70 80 € million potential earnings improvement iSrcueSZAG FitStructure 0 htw nedi h oigyas–effects What intend inthecoming yearswe – 2019 23, on May Shareholders of Meeting General Annual 2019 2020 2021 ff. 2021 2020 2019 ~25 the dynamism started in 2012 will be maintained – new initiative are in preparation to this end this preparation to are in initiative new – be maintained in 2012 will started the dynamism All in allat Allleast € 250 in million additional effectsfrom programs of measures planned; ~25 ~25 € million additional profit contribution € million additional profit 100 120 140 160 180 200 SZAG 2021 Growth Programs 20 40 60 80 0 0922 2021ff. 2020 2019 ~40 ~40 ~100

SZAG Investor Relations english Source: Fraunhofer-Gesellschaft/SZAGSource: s fhdoe H)isedo abn()frio r reduction. iron ore for (C) carbon of hydrogen (H2)instead Use of Annual General Meeting of Shareholders on May 23, 2019 23, on May Shareholders of Meeting General Annual Standard DRP –SA The future of CO The future lzgitter L ow CO 2 2 -reduced and sustainable steel production – in Salzgitter! in -reduced and sustainable steel production – S teelmaking Direct reduced iron iron reduced Direct as energy storage energy as . . . . instead of recyclinginstead of Avoidance" approach: Sustainable "Carbon Direct 95% CO emissions: of CO Gradual reduction steel works optimized integrated Integration intoexisting technologies production anduse) gas) and (direct reduction withnatural of Use already 2 novel savings between 25% and 25%between established (hydrogen ! iron-and- ! Reducing 2 and 27 SZAG Investor Relations english SAL 2019 23, on May Shareholders of Meeting General Annual COS at the Hannover Fair2019 Pioneering SALCOS concept in the focus of politicians‘ and visitors‘ interest and visitors‘politicians‘ Pioneering SALCOSthe focus of concept in 28 SZAG Investor Relations english Annual General Meeting of Shareholders on May 23, 2019 23, on May Shareholders of Meeting General Annual The ultimate goal: Steel – produced with CO less 95% produced with – goal: Steel The ultimate difference here. You can seea tremendous Customers (unfortunately) see it likewise! see it Customers (unfortunately) 2 emissions 29 SZAG Investor Relations english Annual General Meeting of Shareholders on May 23, 2019 23, on May Shareholders of Meeting General Annual The ultimate goal: Steel – produced with CO less 95% produced with – goal: Steel The ultimate The requirements for energyintensiveindustries inGermanyand the EU are uniquely high in global comparison. It will be support. It will impossible to meetthem political without For theenvironment. difference here. You can seea tremendous Weready! are 2 emissions -95% CO 2 30 SZAG Investor Relations english Conclusion 2019 23, on May Shareholders of Meeting General Annual with competitive structures with competitive We arelookingforwardto and processes! the future – 31 SZAG Investor Relations english 4 3 2 1 Explanations on Explanations the Agenda Group Strategy „SZAG 2021“ Year Financial Results andFirst Quarter 2018 2019 conditions framework current 2018 / 19 Environment – 32 SZAG Investor Relations english english

Performance in % competitors vs. AGSalzgitter 2019 23, on May Shareholders of Meeting General Annual 100% 125% 150% 175% 200% 225% 250% 50% 75% 2'50 1 6'60 1 2'60 1 6'70 1 2'70 1 6'80 1 2'803 '19 12 '18 09 '18 06 '18 03 '18 12 '17 09 '17 06 '17 03 '17 12 '16 09 '16 06 '16 03 '16 12 '15 akPerformance Rank 3 2 1 3 Company Salzgitter opttrB Competitor opttrC Competitor opttrA Competitor Share price performance since January 1, 2016 performance sinceJanuary1, Share price per 2019/05/21 -31% -35% 16% -8% 33 SZAG Investor Relations english 1 Dividend proposal 2019 23, on May Shareholders of Meeting General Annual restated -0.20 0.00 0.20 0.40 0.60 0.80 € -15 0421 0621 2018 2017 2016 2015 2014 0.20 0.25 4 1 Dividend increased by another 20% Dividendincreased byanother 20% 0.30 53 iiedprsae 0.55€ per share: Dividend Financial year 2018 0.45 238 0.55 347 € million € million 400 300 200 100 0 -100 34 SZAG Investor Relations english Agenda items * Pending* the resolution the Annualof G Explanations on the Explanations on Agenda 2019 23, on May Shareholders of Meeting General Annual 5. 4. 3. . . . Shareholders to receiv 2018 yearfor thefinancial Dividend 2. Unappropriated retained earnings retained Unappropriated carried forwardProfit account to new Dividend payment Election of the auditor for the financial year2019 Resolution on the discharge of themembers SupervisoryBoard Resolution on the discharge of themembers Executive Board earnings retained appropriation of the Resolution on e € 0.55 e €0.55 per share* eneral Meeting Shareholdersof 23, 2019 on May € 29.748.015,00 € 33.100.000,00 € 3.351.985,00 35 SZAG Investor Relations Annual General Meeting of the Shareholders of Salzgitter AG

Prof. Dr.-Ing. Heinz Jörg Fuhrmann Chairman of the Executive Board of Salzgitter AG

Braunschweig, May 23, 2019 english