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4. Anticipated Financial Position
With regard to the financial year 2008, the Salzgitter Group has planned a capital expenditure budget
which considerably exceeds that of the previous year. Of the budgeted amount, around 65% has
been committed to the Steel Division and, in turn, 50% of this amount to SZFG. Targeted investments
are aimed at significantly strengthening our earnings. Together with the ongoing investments already
approved in previous years, the payment-related portion of the 2008 budget will bring the total
investment volume to a level which is significantly higher than in 2007 (€ 385 million). As in the past,
these investments will be carried out on a rolling basis in accordance with results and liquidity developments.
Owing to the greater volume of investments, the funds required for the financial year 2008 will be in
excess of the depreciations, with the result that the excess portion will need to be financed from
excess operating cash flows and, if necessary, partly from existing liquidity. From the viewpoint of
company management, this is not an issue as there is enough latitude.
The volume of capital expenditure has been assessed and distributed over time to ensure that the
Group’s cash position generally remains stable and available at any time for strategic options. Financing
measures are therefore currently not planned. In connection with larger acquisition projects, however,
such measures may be implemented in due course.
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Forecast