- Optimizing Capital Structure
We aim to maintain an optimal capital structure in line with our desired credit rating, business valuation as well as market expectation. - Decarbonization
The step-by-step transformation of our business model toward low-carbon production requires investment over the coming years. - Growth
We target value-enhancing growth through focused investments and acquisitions, particularly within downstream-oriented segments and selected geographical regions.
Group-Level Profitability Targets:
ROCE >12%
EBITDA margin 14%
- Shareholder Distribution
Continuous participation of shareholders in the company's success through a target payout ratio of 30% of earnings per share (EPS) including a minimum dividend of EUR 0.40 per share, providing stability and predictability across earnings cycles.
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A. Credit Profile
- An investment-grade-conform credit profile ensures stable and cost-efficient access to capital, which is essential for capital-intensive industries.
- Although we currently do not have an external rating, our internal financial constitution requires us to maintain an implicit BBB credit rating on a “through-the-cycle” basis.
B. Value Optimization
- The right mix of equity and debt optimizes the weighted average capital costs (WACC).
- Optimized capital costs increase strategic flexibility and sustainably increase the value of the company.
C. Peer Benchmarking
- Investors compare capital structures within selected industries and tend to avoid companies with above-average debt.
- Peer benchmarking is important in order to remain attractive to investors and secure access to capital.
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Our step-by-step approach is minimizing risk, maximizing investment certainty – with manageable capital intensity and strong CO₂ impact.
The first step of our decarbonization strategy has been approved and is already in implementation. The next phases of the transformation are currently undergoing in-depth evaluation. In this process, we carefully assess all available technological options in light of regulatory developments, market conditions, and economic considerations based on life-cycle cost analyses (LCCA). Our guiding principle is to implement only those measures that are both environmentally and economically sustainable.* Based on business with no material Scope 1 and Scope 2 emissions (measured with revenue).
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- Steel Production
Focus on decarbonization, technological advancement, quality and innovation. - Metal Processing
We strive to expand our leading market positions and secure them through innovation, while also enhancing value chain integration.
Growth Strategy:
- Continued participation in high potential growth markets
- Globalization strategy (e.g. targeting Asian markets while reducing European footprint)
- Local for local approach
- Innovation in product and service area - Group Level Profitability Targets
ROCE >12%
EBITDA margin 14% - Portfolio Development
M&A initiatives aimed at increasing value, as well as systematic restructuring and reorganization to increase strategic focus, efficiency and value contribution.
- Steel Production
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1. Minimum Dividend
- A reliable and consistent minimum payout.
- Not dependent on short-term earnings volatility.
- 0,40 EUR/share underlines strong commitment.
- Increases the payout ratio above the 30% target ratio in years with weaker results.
2. Target Payout Ratio
- Target payout: 30 % of earnings per share.
- Additional distributions only if leverage (Net Debt/EBITDA) remains below 2 after payout.
- Additional distribution via dividends and/or share buybacks possible, depending on debt capacity.
Review Period:
The policy is valid for a period of four years. Regular reviews ensure that the dividend policy is continuously adapted to strategic objectives and changing market conditions.The dividend policy reflects the volatility of a cyclical business and is designed to support the maintenance of an investment-grade profile.