Salzgitter 101

Research evidence excerpt

Salzgitter 101

Foundation

June 16, 2026 04:48 PM GMT

Morgan Stanley & Co. International plc+MSalzgitter AG | Europe Alain Gabriel, CFA

Equity Analyst

Salzgitter 101 Alain.Gabriel@MorganStanley.comIoannis Masvoulas, CFA +44 20 7425-8959

Ioannis.Masvoulas@morganstanley.com +44 20 7425-0427

Salzgitter is a cyclical German steel producer with partial Adahna Ekoku

diversification from Plant Technology and a 29.99% stake in Equity Analyst

Adahna.Ekoku@morganstanley.com +44 20 7425-0578

Aurubis. Key value levers are EU-policy-led steel-spread Ferdinand Huber

recovery, SALCOS execution and deleveraging, HKM slab ResearchFerdinand.Huber@morganstanley.comAssociate +44 20 7677-2702

optionality, and the Aurubis mark-to-market.

Salzgitter AG (SZGG.DE, SZG GY)

Cyclical core steel business, with diversification. Salzgitter is an integrated Carbon Steel | Germany

German steel producer with four operating divisions - Steel Production, Steel Stock Rating Overweight

Industry View In-Line

Processing, Trading, and Technology - with industrial participations that include a Price target €70.80

29.99% stake in Aurubis. Steelmaking remains the key earnings swing factor, while Shr price, close (Jun 15, 2026) €59.00

52-Week Range €67.60-18.50

Technology - led by KHS in beverage filling and packaging machinery - and Aurubis' Mkt cap, curr (mn) €3,368

copper smelting/recycling provide partial diversification and earnings support in Net debt (12/26e) (mn)* €1,293

EV, curr (mn)* €5,650

weaker steel markets.

* = GAAP or approximated based on GAAP

Returns: burden of proof remains high. Salzgitter shares trade at a steep (>30%) Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

discount to book value, reflecting a business that has not consistently earned its Sales / Revenue 8,904 9,448 9,691 9,724

(€mn)**