Targets for the Percentage of Women in Management Positions

Since 2015, companies such as Salzgitter Mannesmann Grobblech GmbH that are subject to the One-Third Quota Act have been required to set targets for the proportion of women at management levels.

I.

In 2017, the shareholders’ meeting adopted the following resolution regarding the proportion of women on the Supervisory Board and among the managing directors:

1. The management currently consists of three managing directors, including one woman. Until June 30, 2022, no change and thus no increase in the proportion of women is sought. In the event that a replacement becomes necessary in the future, women will be considered on an equal footing, as has been the case to date.
2. The Supervisory Board currently consists of three male members. The current composition ensures the proper functioning of the Supervisory Board. Therefore, no change—and thus no increase in the proportion of women—is sought until June 30, 2022. In the event that a replacement becomes necessary in the future, women will be considered on an equal footing, as has been the case to date.

As of June 30, 2022, the company’s management consisted of Dr. Sebastian Bross, Ms. Beatrice Fiege, and Mr. Hans-Jaan Rachner. The target for the proportion of women in management was thus achieved. This composition of the management team ensures the proper performance of management duties and is therefore to be maintained until further notice.

As of June 30, 2022, the company’s Supervisory Board consisted of three members, none of whom were women. The target for the proportion of women on the Supervisory Board was thus achieved. The current composition of the Supervisory Board ensures that it performs its duties effectively and should therefore be maintained until further notice.

In 2022, the shareholders’ meeting adopted the following resolutions:

1. The management currently consists of two male members and one female member. The current composition ensures proper management activities. As of June 30, 2027, no change—and thus no increase in the proportion of women—is sought.
2. The Supervisory Board currently consists of three male members. The current composition ensures the proper functioning of the Supervisory Board. As of June 30, 2027, no change—and thus no increase in the proportion of women—is sought.

II.

In 2017, the Executive Board established the following targets for the proportion of women in the two management levels below the Managing Directors:

• A target of 14.0% for the proportion of women in the first management level below the Executive Board and a target of 26.7% for those in the second management level below the Executive Board. The quotas were to be achieved by June 30, 2022.

The target for the proportion of women in the first management level was achieved at 14.3%. The targets for the second management level were achieved with a 33.3% proportion of women.

In 2022, the Executive Board adopted the following targets:

• A target of 14.3% for the proportion of women in the first management level below the Executive Board and a target of 33.3% for those in the second management level below the Executive Board. These quotas are to be achieved by June 30, 2027.

III.

The Company is part of the Salzgitter AG steel and technology group. When appointing members to corporate bodies within the group companies (such as the Management Board and the Supervisory Board), Salzgitter AG strives to ensure both gender equality and the best possible appointments with regard to the requirements of the respective position. In this spirit, the Supervisory Board of Salzgitter AG has adopted diversity policies for both the composition of the Supervisory Board and the Management Board of SZAG. According to these policies, in addition to company-specific requirements, personal and professional qualifications, and competencies, aspects of diversity must also be given special consideration.

To increase the proportion of women within the Group, Salzgitter AG has implemented numerous measures in recent years to enhance its overall appeal as an employer and, in particular, to attract female professionals from the labor market. In addition, efforts to identify and develop experienced female employees internally have been intensified. One example is a Group-wide succession and talent management program, which also offers individual development opportunities. Furthermore, an orientation program specifically aimed at female employees has been established, which systematically provides career guidance to show women various career paths as managers within the Salzgitter AG Group. This is complemented by a mentoring program for committed female managers and experts to provide them with targeted support on their path to leadership responsibilities or in their development within their leadership roles.

Nevertheless, it must be noted that the company, as a steel-processing firm and a subsidiary of a steel and technology conglomerate, continues to face challenges in recruiting women for the relevant positions. The required qualifications are primarily in the field of engineering/technical professions, where the proportion of female graduates or candidates at universities remains low. This effect is exacerbated by the fact that, despite active recruitment efforts, only a few female graduates choose career opportunities in the steel industry. Emerging trends indicating increased interest among women in degrees in engineering and technical professions will only become relevant for filling leadership positions in the coming years, as graduates must first gain relevant professional experience before they can be considered for leadership roles. This applies in particular to the filling of executive and supervisory board positions in the relevant companies, in order to fulfill the special responsibility these positions entail for the success of the company.

Mülheim, September 2022