Notes

Principles of accounting and consolidation, balance sheet reporting and valuation methods

1. The consolidated financial report of Salzgitter AG, Salzgitter, for the reporting period from January 1 to March 30, 2008, has been prepared as a condensed report with selected notes. The report has been drawn up as before in accordance with the International Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) in consideration of requirements contained in IAS 34 for condensed interim reports.
2. In comparison with the annual financial statements as at December 31, 2007, no changes have been made in the accounting, valuation, calculation and consolidated methods in the interim financial statements for the period ended March 31, 2008
3. Due to erratic surges in raw material and energy prices, which for the most part are effective since January 1, 2008, a total of € 49.1 million in additional material expenses were considered.
4. For the first time the following company has been fully consolidated:
   • Salzgitter Mannesmann Stahlhandel Sp. z o.o., Slupca (Polen)

Selected explanatory notes on the income statement

1. Sales by division are shown in the respective section.
2. Earnings per share are calculated pursuant to IAS 33. The undiluted earnings per share based on the weighted number of shares of Salzgitter AG came to € 3.40 in the period under review.
   
   Dilution of the earnings per share occurs if the average number of shares is increased by the addition of the potential shares to be issued on the basis of the options and conversion rights. There were no such options and conversion rights outstanding as of March 31, 2008. Therefore, diluted earnings per share equaled undiluted earnings per share and amounted to € 3.40.

   Related Party Disclosures

   In addition to business relationships with companies that are consolidated fully and proportionately in the consolidated financial statements, relationships also exist with associated companies and shareholdings that must be designated as related companies in accordance with IAS 24.

   All business transactions with related companies are conducted on terms that also customarily apply among third parties. Deliveries and services rendered for related companies primarily concern deliveries of sheet piling to ThyssenKrupp GfT Bautechnik GmbH for resale and crude steel products supplied for processing.

   The deliveries and services received essentially comprise deliveries of input material for the manufacture of largediameter pipes and precision tubes.

   For further information please see the disclosures in the Annual Report 2007 (pg. 288).

   Declaration according to § 37w Abs. 5 WpHG

   The interim financial statements and interim management report at hand have not been subjected to an auditor’s scrutiny.

   Financial calendar 2008

   March 6, 2008	Key data for financial year 2007
   March 27, 2008	Annual press conference
   March 28, 2008	Analyst conference in Frankfurt/Main
   March 31, 2008	Analyst conference in London
   May 15, 2008	Interim report for the first quarter 2008
   May 21, 2008	Ordinary Shareholders’ Meeting
   August 14, 2008	Interim report for the first half 2008
   August 14, 2008	Analyst conference in Frankfurt/Main
   August 15, 2008	Analyst conference in London
   November 14, 2008	Interim report for the first nine months 2008
   December 31, 2008	End of financial year 2008

   Legal disclaimer

   Some of the statements made in this report possess the character of forecasts or may be interpreted as such. They are made upon the best of information and belief and by their nature are subject to the proviso that no unforeseeable deterioration occurs in the economy or in the specific market situation pertaining to the Division companies, but rather that the underlying bases of plans and outlooks prove to be accurate as expected in terms of their scope and timing. The company undertakes no obligation to update any forward-looking statements. The official financial report for the period under review in this document is the German-language hardcopy version of the Salzgitter AG Interim Report. In case of ambiguity between this document and any other version of the interim report, information provided in the German-language hardcopy version shall supersede information provided in any other form.