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Cs global steel and mining conference 2011

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  • 1. Global Steel andMining Conference 2011Credit SuisseInvestor RelationsSeptember 2011voestalpine AGwww.voestalpine.com
  • 2. voestalpine groupBusiness concept (1)n Steel is – and will always be - the base of voestalpine groupn BUT: Downstream strategy is strongly driving evolution from a steel maker to a processing groupn Focus on most demanding customer segments in terms of innovation, technology and qualityn Custom made solutions based on most advanced products and perfect service as key credentials of success No longer a steel companyvoestalpine AG2 | September 2011 | Investor Relations
  • 3. voestalpine groupBusiness concept (2)n Strategic markets n Focus on market segments with utmost technological and quality requirements, such as energy, automotive, railway and aircraft industry n No spot market business, commodities no optionn Long term relationships n Long term partnerships with costumers, suppliers and R&D-institutions are key for innovation and permanent progression in technology and quality n Perfect service is key for long term partnerships First choice for high tech steel solutionsvoestalpine AG3 | September 2011 | Investor Relations
  • 4. voestalpine groupGlobal footprint North Asia ROW Germany America 3% 7% 8% 30% 21% Other 10% 4% 5% 7% 5% Europe Austria Brazil Benelux Italy France Energy industry White & Automotive consumer goods 14% 28% 8% 15% 12% Other 13% 10% Civil & Railway Building Mechanical infrastructure & constr. engineering subsuppliers No significant exposure to ailing countries and industriesvoestalpine AG4 | September 2011 | Investor Relations
  • 5. voestalpine groupStructure & position Steel Special Steel Railway Systems Profilform Automotive European Top World market World market World market European Top Player Leader Leader Leader Player n Minimum top 3 market position in Europe n Partial backward integration n Longest value chain in the industry n Product portfolio focused on long term growth segments n Very limited exposure to crises-regions and -industries n Resilient in economic downturn n Full leverage in upturn n Strong commitment to efficiency improvement and cost cuttingvoestalpine AG5 | September 2011 | Investor Relations
  • 6. voestalpine groupCurrent situationn Solid business performance, results of the last voestalpine group quarters prolonged in Q1 FY 2011/12 in figuresn Q2 FY 2011/12 influenced by summer seasonality Sales EBIT EBIT and 3-weeks technical shut down for capacity (€m) (€m) (%) extension in Steel Division Q1 FY 11/12 3,052 318 10.4n Macro lead-indicators weakened in recent months Q1 2,556 203 8.0 FY 10/11n Ongoing discussions about public debt situation yoy in % 19.4 56.2 create negative sentimentn Massive downturn at stock markets over summern Customers increasingly cautious, but order intake FY 10/11 10,954 985 9.0 overall still on reasonable levelsvoestalpine AG6 | September 2011 | Investor Relations
  • 7. voestalpine groupReading and reactionn Internal preparation for higher volatility voestalpine group n Cost cutting and efficiency programs well on track, no in figures disruption despite upturn in recent quarters n Leaner and more flexible structures today as result Sales EBIT EBIT (€m) (€m) (%) n Unchanged rigid working capital management n Management experienced in handling demanding scenarios Q1 3,052 318 10.4 FY 11/12n Fast reactions to changes in business climate over Q1 2,556 203 8.0 complete value chain FY 10/11 n Low stock levels overall in whole supply chain yoy in % 19.4 56.2 n Well established communication lines to customers and suppliersn Close watch of current developments and permanent unexcited evaluation FY 10/11 10,954 985 9.0n voestalpine strategy and business model has proven resilience in 2008voestalpine AG7 | September 2011 | Investor Relations
  • 8. Division SteelBusiness developmentn Demand situation and price levels in high quality segments unchanged strong Division Steel in figures n Automotive and energy industryn Customers increasingly cautious in shorter term market segments Sales EBIT EBIT (€m) (€m) (%) n Building, machine building and consumer goods industriesn 3-weeks shut down for capacity extension of hot rolling Q1 1,038 101 9.8 FY 11/12 mill in Linz distinctly affecting earnings in Q2 FY 2011/12 Q1n Outlook difficult due to increasing negative influence from FY 10/11 856 81 9.4 non-industrial spheres yoy in % 21.3 25.5n Nevertheless: Positive developments recently n Indication of rising steel prices in Southern Europe n Several European steel producers cutting capacity (supply- demand-balance improving) FY 10/11 4,175 372 8.9 n EU launches antidumping measures against Asian producers n No further rise of raw material pricesvoestalpine AG8 | September 2011 | Investor Relations
  • 9. Division Special SteelBusiness developmentn Stable business performance after strong rebound Division Special Steel in figures (past ppa) over last quartersn Seasonality over summer on normal levels, no Sales (€m) EBIT (€m) EBIT (%) economic downturn in customer behaviour indicated Q1 751 83 11.0 FY 11/12n Especially automotive, energy, aircraft and truck Q1 614 37 6.0 segments stable on solid level FY 10/11 yoy in % 22.3 126.0n Unchanged full capacity utilizationn No specific regional weaknesses (exemption Southern Europe) FY 10/11 2,631 209 7.9voestalpine AG9 | September 2011 | Investor Relations
  • 10. Division Railway SystemsBusiness developmentn Stable development in railway infrastructure Division Railway Systems in figures segments n Premium rails as well as turnout systems business Sales EBIT EBIT (€m) (€m) (%) well on track Q1 n Unchanged difficult situation in standard rails FY 11/12 753 92 12.2 segment Q1 668 63 9.4 FY 10/11n Seamless tubes, wire and welding consumables on solid high demand levels yoy in % 12.7 46.3n Full capacity utilization in all major production facilities (exemption: standard rail production in FY 10/11 2,723 309 11.3 Duisburg)voestalpine AG10 | September 2011 | Investor Relations
  • 11. Division ProfilformBusiness developmentn Overall unchanged solid business environment Division Profilform n Demand from commercial vehicle and in figures agricultural machinery segments as well as aircraft and solar energy business on stable Sales (€m) EBIT (€m) EBIT (%) high level Q1 330 41 12.5 FY 11/12 n Increasing order intake in storage technology Q1 274 28 10.4 n Strong performance of precision strip segment FY 10/11 n Only in welded special tubes hesitant order yoy in % 20.5 44.7 intaken Strong capacity utilization FY 10/11 1,139 118 10.4n Solid further development in next months expectedvoestalpine AG11 | September 2011 | Investor Relations
  • 12. Division AutomotiveBusiness developmentn Unchanged solid situation in European car Division Automotive in figures production n Strong momentum stemming still mainly from export- Sales EBIT EBIT (€m) (€m) (%) oriented premium car producers Q1 293 19 6.3 n Ongoing solid demand in commercial vehicle sector FY 11/12 Q1 243 13 5.3 n BUT: Car sales in Europe still clearly below pre-crisis FY 11/12 level yoy in % 20.8 44.5n Stable performance also of the non-automotive activities (alternative energy) FY 10/11 1,040 64 6.2voestalpine AG12 | September 2011 | Investor Relations
  • 13. Financial overviewvoestalpine AGwww.voestalpine.com
  • 14. voestalpine groupConsolidated overview YoY in % Q1 2010/11 Q1 2011/12Sales €m 2,556 3,052 + 19.4EBITDA €m 351 463 + 31.9% of Sales % 13.7 15.2EBIT €m 203 318 + 56.2% of Sales % 8.0 10.4EBT €m 157 272 + 73.7Net Profit €m 121 210 + 73.1EPS* € 0.60 1.13 + 83.3Investments** €m 80 117 + 46.3Depreciation €m 148 145 -1.6Employees*** 39,595 40,939 * Undiluted EPS, based on average number of shares ** Fixed assets and acquisitions *** Per 30.06, excluding trainees & tempsvoestalpine AG14 | September 2011 | Investor Relations
  • 15. EBIT developmentQ1 2010/11 vs. Q1 2011/12 32 €m -199 €m 283 €m 6 €m 318 €m 203 €m - 7 €m EBIT 10.4% EBIT 8.0% Mix/ Raw 2010/11 Price Volume* materials D ppa Misc.* 2011/12 * Savings are included in these itemsvoestalpine AG15 | September 2011 | Investor Relations
  • 16. voestalpine groupCash flow Q1 2010/11 vs. Q1 2011/12 2010/11 2011/12 Cash flow from result €m 264 347 Changes in working capital €m -58 -289 Cash flow from operating activities €m 206 58 Cash flow from investing activities €m -126 -120 Free cash flow €m 80 -62voestalpine AG16 | September 2011 | Investor Relations
  • 17. voestalpine groupGearing ratio 4,878 4,691 4,289 4,263 4,262 3,762 3,572 88% 3,037 83% 2,882 71% 2,780 2,713 2,547 58% 2,125 57% 1,786 1,853 47% 34% 32% 831 635 684 526 15% 18% 377 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Q1 2011/12 Net Debt (€m) Equity (€m) Gearing-Ratio (%)voestalpine AG17 | September 2011 | Investor Relations
  • 18. voestalpine groupDevelopment liquidity Liquidity* Redemption – Schedule per 30.06.2011 per 30.06.2011 2,000 1,750 1,500 1,250 1,100 1,030 Financial 569 assets€m 1,000 750 450 500 839 Cash 250 175 148 0 Liquidity 2011/12 2012/13 2013/14 2014/15 2015/16 Comfortable liquidity position and balanced maturity profile *) Not included: undrawn committed lines and other instrumentsvoestalpine AG 18 | September 2011 | Investor Relations
  • 19. voestalpine groupOutlookn Q2 earnings clearly below Q1 due to a 3-week shut-down in Steel Division and seasonal effects in the other divisionsn Solid order intake for Q3 FY 2011/12, only machine building and consumer goods slightly lagging behind; building and construction unchanged weakn Raw materials: No further price increase in H2 FY 2011/12 expectedn Current development is rather a normal cyclical move than an indication for a recessionary trendn BUT: Development in H2 FY 2011/12 is largely depending on factors beyond reach of industry n Negative overall political and economic sentiment stemming from public debt discussion in EU and US and increasing doubts on banks’ abilities to manage another crisis n Extremely nervous equity and financial markets put psychological pressure on real economy (“self-fulfilling prophecy”) NEVERTHELESS: From todays point of view voestalpine still expects a further improvement of earnings in 2011/12voestalpine AG19 | September 2011 | Investor Relations
  • 20. IR Contact Peter Fleischer Reuters Head of Investor Relations VOES.VI E-Mail peter.fleischer@voestalpine.com Phone +43/50304/15-9949 Gerald Resch Bloomberg Investor Relations Manager VOE AV E-Mail gerald.resch@voestalpine.com Phone +43/50304/15-3152voestalpine AGwww.voestalpine.com