Overall Statement on Anticipated Group Performance

Based on an extremely difficult year 2009, the majority of the companies belonging to our Group assume that there will be a discernible improvement in performance in the financial year 2010. Only the Tubes Division expects lower results owing to the downturn in selling prices. It is, however, unlikely that all individual companies will succeed in returning to the profit zone. We expect our Group to generate a positive pre-tax result in the double-digit million euro range. Fundamentally there are considerable risks, as before: alongside the foreseeable increase in the cost of raw materials, the recovery of the steel and mechanical engineering markets is still subject to uncertainties.

From today’s standpoint, no reliable quantified outlook for sales and the result of the Salzgitter Group can be given for 2011. We nonetheless assume that the economic upswing will persist for the main part, although occasional temporary setbacks also have to be factored in.

Owing to the uncertain future economic outlook in particular, we consider it important to accord high priority to the stability of our financial position and the soundness of our balance sheet, as we always have done. By its nature, this approach restricts the possibilities for making major acquisitions. Small to mid-sized projects are, however, entirely feasible.

Our financial reserves will be partly used to finance the major investments currently being implemented. The projects will be concluded over the course of the years 2010 and 2011 and will serve to enhance our entrepreneurial potential for phases of economic prosperity in the years ahead.

The Profit Improvement Program, which was also stringently pursued in boom times, has made hectic cost-cutting and restructuring measures redundant. All future steps necessary to ensure long-term survival and to preserve the intrinsic value of the Group can therefore be carried out in a well-planned and assured manner. A relaunch of the Profit Improvement Program will deliver additional contributions to the economic performance of the Group in the coming years.

In conclusion, proof has been delivered that the Salzgitter Group, with its broad-based business, its sound financial base and its flat, efficient organization structure is comparatively well prepared to meet challenging phases. We will continue to chart this tried-and-tested course.

The amount of dividend will be geared to the earnings development in the future as well. The cyclical fluctuations typical of the sector are by nature reflected both in the results of the Group and in its share price. The separate financial statements of Salzgitter AG are decisive for the ability to pay dividend. The Salzgitter Group pursues a fundamental policy of paying out steady and attractive dividend based on the pre-requisite of actual profits; which does not necessarily have to reflect the cyclicality of the earnings performance.