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Bernhard KleinermannHead of Investor Relations

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1 Salzgitter Group + Financials

2 Steel Division + Market

3 Tubes Division + Market

4 Strategy

5 Outlook

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• Crude steel production: 7.3 million tons; trading volume: 6.7 million tons• 5th largest European steel producer• Among the top 3 producers of filling und packaging machinery

Global PresenceSalzgitter Group

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Diversified product portfolioSalzgitter Group

Line pipes

Precision tubes

Stainless tubes

Stockholding trading

International trading

Strip products

Heavy plates

Sections

Engineering services

Logistics

Injection molding machinery Beverage filling plants

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Steeland

Technology

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Group structure

Salzgitter AG (Holding)

simplified structure

Salzgitter Group en

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SteelSalzgitter Stahl GmbH

Salzgitter Flachstahl

Ilsenburger Grobblech

Peiner Träger

HSP Hoesch Spundwand und Profil

Salzgitter Bauelemente

Salzgitter Europlatinen

Trading

Salzgitter Mannesmann Handel Group

Universal

Hövelmann&Lueg

Services

DEUMU

Salzgitter Serviceund Technik

Verkehrsbetriebe Peine-Salzgitter

telcat

GESIS

Hansaport (51%)

Salzgitter MannesmannForschung

Salzgitter AutomotiveEngineering

SIT

TechnologyTubesMannesmannröhren-

Werke GmbH

KHS-Group

Klöckner PET-Technologie

Klöckner DESMA Elastomertechnik

Klöckner DESMA Schuhmaschinen

Salzgitter Mannesmann GmbH – Intermediate holding company

TubesMannesmannröhren-

Werke GmbH

Europipe (50%)

Salzgitter Mannesmann Line Pipe

Salzgitter MannesmannPrecision

Salzgitter MannesmannStainless Tubes

Salzgitter Mannesmann Grossrohr

Hüttenwerke Krupp Mannesmann (30%)

Salzgitter Mannesmann Grobblech

Klöckner Hänsel Processing

Klöckner-Werke AG (86%)

NEW!NEW!

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1st Half 2008 with outstanding results

• Consolidates sales at record level• Q2/2008 stronger than first quarter

17,13524,044Core workforce (June 30, 2008):

54.536.8%ROCE from operations:2)

6.947.64€Earnings per share:

398,7436.9€ millionEarnings after taxes:

663.6646.4€ millionEBT:

4,7236,233€ millionGroup sales (cons.):

H1 2007H1 2008

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Key figures of the Salzgitter GroupSalzgitter Group

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0

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100

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400

1Q 0

42Q

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52Q

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3Q 0

64Q

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72Q

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3Q 0

74Q

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82Q

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Sales and earnings development

External Sales [€ mil.] EBT from operations [€ mil.]

Continuous sales growth

Income from associated companiesEBT of consolidated companies

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Quarterly earnings at record level

Salzgitter Group

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100

150

200

250

300

350

400

H1 2007 H1 2008 H1 2007 H1 2008 H1 2007 H1 2008 H1 2007 H1 2008 H1 2007 H1 2008

Earnings development (YoY)

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EBT H1 2008 vs. H1 2007 (in € million)

• Steel: raw materials price increases affect earnings • Trading: Margin expansion resulting from “windfall profits”• Tubes: better despite rising costs

Steel Services Technology

Divisions

Trading Tubes

+10%+16%

-9%

+18%

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SZAG: Net cash position

Capital expenditures, acquisitions and dividend payment cause slight decrease

-0,5

0,0

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1,0

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2,5

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2Q03

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4Q03

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2Q05

3Q05

4Q05

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2Q06

3Q06

4Q06

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2Q07

3Q07

4Q07

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2Q08

Net position due to banks

€bi

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Financials

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0,0

1,0

2,0

3,0

4,0

5,0

6,0

30.09

.9530

.09.96

30.09

.9730

.09.98

30.09

.9930

.09.00

31.12

.0031

.12.01

31.12

.0231

.12.03

31.12

.0431

.12.05

31.12

.0631

.12.07

30.06

.08Development of Group-equity

Since 30/09/99 a total increase of 405% realized (approximately 17% p. a.)

1) Including own shares

Equity SZAG1) Dividends paid (accumulated)

€bi

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+ € 4.0 bn

Financials

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1 Salzgitter Group + Financials

2 Steel Division + Market

3 Tubes Division + Market

4 Strategy

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Crude steel production H1 2008: 2.7 mt Segment Sales: € 2.3 billionShipments H1 2008: 3.0 mt External Sales: € 1.6 billion

OverviewSteel Division

Steel Division

Heavy plate Sections Processing Strip steel

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50%

75%

100%

125%

1Q04

3Q04

1Q05

3Q05

1Q06

3Q06

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3Q07

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Shipments, price per tonSteel Division

Shipment in tons Sales in € per ton

Flat steel Heavy plate Sections

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Strong shipments show regular seasonal pattern Sales prices with upward trend

100%

125%

150%

175%

200%

225%

250%

1Q04

3Q04

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3Q05

1Q06

3Q06

1Q07

3Q07

1Q08

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Order intake and backlogSteel Division

Above average order intake

Order bookings Steel Division Order backlog Steel Division

800 kt

900 kt

1000 kt

1100 kt

1200 kt

1300 kt

1400 kt

1500 kt

1600 kt

1700 kt

1800 kt

4Q 012Q 024Q 022Q 034Q 032Q 044Q 042Q 054Q 052Q 064Q 062Q 074Q 072Q 08

800 kt

900 kt

1000 kt

1100 kt

1200 kt

1300 kt

1400 kt

1500 kt

1600 kt

1700 kt

1800 kt

4Q 012Q 024Q 022Q 034Q 032Q 044Q 042Q 054Q 052Q 064Q 062Q 074Q 072Q 08

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Cyclical effects, but at a sufficient level

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0%

100%

200%

300%

400%

500%

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700%

2001 2002 2003 2004 2005 2006 2007 2008e

Raw material prices

High inflation of raw material prices drives production costfor steel by more than €100 per ton versus 2007

Average prices of the period; sources: Platt's, Steel Business Briefing, SZAG

Scrap, Europe, ex works, €/t

Iron Ore, FOB, US$/t Coking Coal, FOB, US$/t

Fuel Oil, FOB, US$/t

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Steel Division

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1250

Jan03

Jan04

Jan05

Jan06

Jan07

Jan08

Spot markets: World steel prices

Prices have risen strongly in all regions, and seem to have peaked for now

Source: MEPS - HR Coil transaction prices

US-

$/t

Hot rolled coil prices in selected countries / regions

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EU USAJapan China

Aug2008

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0250500750

10001250

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07'08

Spot markets: Steel prices in Europe

Sales prices for steel products have risen additionally

Source: Steel Business Briefing

HRC / N. Europe / ex works HDG / N. Europe / ex works

Plate / Europe / ex works Medium sections / Europe / delivered

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maxmin

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Steel Division

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Stock levels and shipments

Normalizing lead times due to high consumption

Source: BDS (Association of German Steel Traders) 1) Stock level in relation to shipments to German processors

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Stock level GermanyShipments GermanyLead time to replenish1)

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Steel Division

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1 Salzgitter Group + Financials

2 Steel Division + Market

3 Tubes Division + Market

4 Strategy

5 Outlook

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Shipments H1 2008: 0.7 mt Segment Sales: € 1.5 billionExternal Sales: € 1.1 billion

OverviewTubes Division

Tubes Division

HFI-welded PipesLarge-diameter Pipes Stainless TubesPrecision Tubes

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Shipments, turnover per tonTubes Division

Shipments in tons Turnover in € per ton

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Good shipment volumes,precision tubes impacted by

acquired companies

Sales prices with positive trend,stainless follows nickel trend

50%

75%

100%

125%

150%

175%

200%

225%

1Q04

3Q04

1Q05

3Q05

1Q06

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1Q07

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1Q08

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125%

150%

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200%

225%

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Large diameter Precision tubesHFI-welded pipes Stainless

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Order intake and backlogTubes Division

Continuing buoyant order intake, Q4 2007 shows effect of

Nord Stream pipeline

Order bookings Tubes Division [€ mil.] Order backlog Tubes Division [€ mil.]

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200

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1.000

1.200

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2Q 011Q 024Q 023Q 032Q 041Q 054Q 053Q 062Q 071Q 08

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2Q 011Q 024Q 023Q 032Q 041Q 054Q 053Q 062Q 071Q 08

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Order backlog near record level,shipment of Nord Stream has started

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Prices for large-diameter pipesMarket Situation

Sales prices with worldwide upward trend until July, peak scenario afterwards

Source: MBR – UOE linepipe (X65) fob; sourced from heavy plate to API standards

Prices for large-diameter pipes in selected countries / regions

EU USA JAPAN

US-

$/t

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1250

1500

1750

2000

2250

2500

2750

3000

Jul 04 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08

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Sept 2008

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1 Salzgitter Group + Financials

2 Steel Division + Market

3 Tubes Division + Market

4 Strategy

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Elements of the growth strategyStrategy

External Growth:

• Quality optimization• Increase of Productivity• Expansion of product range• De-bottlenecking• Reduction of dependence on external suppliers

• Selective expansion of regional market positions• Expanding/complementing the product portfolio• Closing of gaps in the value chain• Opportunistic acquisition in steel-related industries

Growth of the Group

No end in itselfbut to enhance

• Profitability• Stability• Independence

Growth of the Group

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Targets: • € 13 to 15 billion in consolidated group sales• ROCE of 15% over the steel cycle

Internal Growth:

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Internal growth – Salzgitter Group Strategy

Focus: Capex of more than € 600 million each in 2008 and in 2009

0.7 0.7

1.70.20.4

0.3

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0.5

1.0

1.5

2.0

1996/97-2001 2002-2006 2007-2010/12

€ 0.9 bn

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€ 2.0 bn

Steel Division other Divisions

€ 1.1 bn

Projects with a total value of € 2.0 billion currently under construction or planned

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Internal growth – “Steel 2012”Strategy

Strip steel and heavy plate:• Capacity increase of the melt shop (metallurgy, fourth continuous caster)

by 350,000 metric tons• Expansion of the hot strip mill and the heavy plate mill• Production of innovative High-Strength & Ductility grades through strip

casting• CAPEX: € ~350 million; completion: 2012

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Sections:• Construction of a second electric arc furnace• Expansion of the existing continuous casting lines• Optimization of the rolling mill for special sections production• Capacity effect: +950,000 metric tons of crude steel• CAPEX: € ~400 million; completion: 2010

Flexibility and 1.3 million t/a additional crude steel capacity

Aims: • Broadening of the product range• Substitution of third party input material for Steel and Tubes Divisions• Cost reduction through increase of plant efficiency

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Internal growth – CAPEXStrategy

• Steel Division: € 197 million• Tubes: € 42 million • Trading: € 8 million• Technology: € 20 million• Services: € 16 millionSalzgitter Group: € 284 million

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Capital expenditures H1 2008

Projects are progressing on schedule

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External growth – latest deal

Beverages-Group employs approximately 500 employees in several companies with combined sales of ~€ 150 million in 2007.

Transfer of group to Klöckner-Werke AG on July31 in exchange for 8,323,700 new shares of Klöckner-Werke, valued at € 144 million (€ 17.30 per share)

Strategy

Integration continues

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Acquisition of SIG-Beverages

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NA shareholdingStrategy

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Leading integrated copper producer of Europe

Comparable production processes for steel and copper

Profitable and with high technological competence

Salzgitter shareholding: 17.6 %

► Current status: Financial investment with an industrial background

• Next steps: Assessment of synergy potentials of production technology, research and development as well as in procurement and sales

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Divisions – Outlook for 2008Outlook

• Higher turnover due to rising prices

• Spotmarketdevelopment will cool down

• Earnings beforetax might exceedprevious year’s level

Trading

• Sales above previous year

• EBT lower than in record year 2007, but still outstanding

• Sales price increases should not be able to fullycompensate for higher raw material costs when comparing 2007 with 2008

Steel

• Sales increase due to brisk demand and high order back log

• To achieve previous year’s EBT is still an ambitious objective

Tubes

• Nearly unchanged sales expectation

• EBT excluding special effects will be slightly above previous year

Services

• Sound development continues, previous years record sales might not be achieved

• EBT should rise

Technology

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Salzgitter Group – Outlook for 2008Outlook

We make express reference to the fact that opportunities and risks arising from selling price, input material price and capacity utilization trends, which are currently not foreseeable, as well as changes in exchange rates may exert a considerable impact on the course of business in the Financial Year 2008. The resulting fluctuation bandwidth of consolidated pre-tax profit can, as seen in previous years, be of considerable dimensions, in both a positive and negative sense.

Forecast of August 14, 2008

“In the financial year 2008, we shall strive to attain notable growth within the Group, 50% of which will be due to the first-time full-year inclusion of the companies of the Klöckner Group in our new Technology Division.

Given our pleasing performance in the first half-year, we consider it justifiable to raise our pre-tax profit forecast for the Group to over one billion euros.”

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