German Corporate Conference 2012

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  • 1. 11th German Corporate Conference 2012 Investor Relations January 2012voestalpine AGwww.voestalpine.com
  • 2. voestalpine groupBusiness concept (1) Steel is – and will always be - the base of voestalpine group BUT: Downstream strategy is strongly driving evolution from a steel maker to a processing group Focus on most demanding customer segments in terms of innovation, technology and quality Custom made solutions based on most advanced products and perfect service as key credentials of success No longer a steel companyvoestalpine AG2 | January 2012 | Investor Relations
  • 3. voestalpine groupBusiness concept (2) Strategic markets Focus on market segments with utmost technological and quality requirements, such as energy, automotive, railway and aircraft industry No spot market business, commodities no option Long term relationships Long term partnerships with customers, suppliers and R&D-institutions are key for innovation and permanent progression in technology and quality Perfect service is key for long term partnerships First choice for high tech steel solutionsvoestalpine AG3 | January 2012 | Investor Relations
  • 4. voestalpine groupGlobal footprint Figures FY 2010/11 North Asia ROW Germany America Brazil Other Austria Europe France Italy Benelux Energy White & industry consumer Automotive goods Other Civil & Railway Mechanical infrastructure Building engineering & constr. subsuppliers No significant exposure to ailing countries and industriesvoestalpine AG4 | January 2012 | 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 from April 1st, 2012 on Minimum top 3 market position in Europe Partial backward integration Longest value chain in the industry Product portfolio focused on long term growth segments Very limited exposure to crisis-regions and -industries Resilient in economic downturn Full leverage in upturn Strong commitment to efficiency improvement and cost cuttingvoestalpine AG5 | January 2012 | Investor Relations
  • 6. voestalpine groupCurrent situation Unchanged negative sentiment stemming from voestalpine group financial and public sector in figures Varying macro lead-indicators in recent months Sales EBIT EBIT US data with modest upside tendency (€m) (€m) (%) European data predicting stuttering Q1 3,052 318 10.4 FY 11/12 development but no recession Q2 2,926 214 7.3 China’s growth track at lower pace FY 11/12 1H Business environment increasingly varying from FY 11/12 5,978 531 8.9 sector to sector 1H 5,192 414 8.0 FY 10/11 Instability and high volatility as the “new normal”voestalpine AG6 | January 2012 | Investor Relations
  • 7. voestalpine groupReading and reaction voestalpine strategy and business model have proven resilience in turbulent times Despite a still volatile general environment, 2012 focus back voestalpine group in figures on strategic expansion after a period of cost cutting and crisis management Sales EBIT EBIT (€m) (%) Merger of Automotive & Profilform Divisions per April 1st, (€m) 2012 Q1 3,052 318 10.4 FY 11/12 Major new automotive investments in China, USA and Q2 2,926 214 7.3 Europe backed by premium producers FY 11/12 Ongoing volatile business environment expected in H1 2012 1H 5,978 531 8.9 FY 11/12 Efficiency programs carried forward 1H 5,192 414 8.0 FY 10/11 Lean and flexible structures help to adopt to fast changing market environment Constant control and adoption of stocks over whole supply chainvoestalpine AG7 | January 2012 | Investor Relations
  • 8. Division SteelBusiness development Demand situation and price level in high quality segments significantly better than in spot market Automotive, energy, machine building Division Steel in figures Customers still cautious in shorter term market segments Building/construction, consumer goods, household appliance Sales EBIT EBIT (€m) (€m) (%) Utilization rate of voestalpine’s Linz plant at 90% currently, stable development in Q4 FY 2011/12 expected Q1 1,038 101 9.8 FY 11/12 Trough of profitability in CQ4 2011 Hesitant customers and low volumes due to “proclaimed” recession Q2 978 60 6.1 FY 11/12 year 2012 Falling steel prices based on slump in raw material prices 1H 2,016 161 8.0 FY 11/12 Still high raw material cost because of pricing time lag and stocks 1H 1,785 166 9.3 Steel prices start turning positive since beginning of 2012 FY 10/11 Rising prices in North America Beginning restructuring of the European supply side Demand and pricing environment in Europe with first signs of recoveryvoestalpine AG8 | January 2012 | Investor Relations
  • 9. Division Special SteelBusiness development Business sentiment stable on level of 2H CY 2011 Division Special Steel Order intake still attractive, but below peak figures of in figures (past ppa) spring 2011 Sales EBIT EBIT Stable market situation in automotive, oil & gas exploration (€m) (€m) (%) and aircraft segments Weaker demand from power plant construction and Q1 751 83 11.0 FY 11/12 -engineering. Q2 Regional economic trends of last year are carried forward FY 11/12 713 59 8.3 Northern and Western Europe stable on solid levels, 1H Southern Europe unchanged weak 1,464 142 9.7 FY 11/12 North America showing signs of vitalization 1H 1,237 75 6.1 FY 10/11 South America stable on appealing levels Economic growth trend in China slowing down to reasonable levels after exceptional phase in last yearsvoestalpine AG9 | January 2012 | Investor Relations
  • 10. Division Railway SystemsBusiness development Uneven development in rails business Division Railway Systems On-going solid demand for premium rails in figures Excess capacity in standard rails still weighing on capacity utilization and profitability Sales EBIT EBIT (€m) (€m) (%) Turnout systems business benefit from dynamic markets in South Africa, Australia, Brazil and Turkey Q1 753 92 12.2 FY 11/12 However China slowing down Q2 752 80 10.6 Slightly weaker demand in wire and welding FY 11/12 consumables 1H 1,504 172 11.4 FY 11/12 Unchanged strong sentiment for seamless tubes 1H 1,336 129 9.7 driven by North American and Mid East markets FY 10/11 Future of standard rails production in Europe to be discussedvoestalpine AG10 | January 2012 | Investor Relations
  • 11. Division ProfilformBusiness development Demand from agricultural and construction Division Profilform machinery equipment segments as well as aircraft in figures business on stable high level Sales EBIT EBIT (€m) (€m) (%) Commercial vehicle market softening recently, but demand levels still high Q1 330 41 12.5 FY 11/12 Solar energy business fundamentally good, currently Q2 302 23 7.6 usual seasonal effects FY 11/12 1H Volatile order intake in standard tubes segment FY 11/12 632 64 10.2 Continued solid situation in storage technology 1H FY 10/11 557 57 10.3 Sound business environment in precision strip, just slightly below exceptional level of H1 CY 2011voestalpine AG11 | January 2012 | Investor Relations
  • 12. Division AutomotiveBusiness development Mixed environment for European car producers Division Automotive Solid production figures in premium segment, German in figures producers still doing well in general Sales EBIT EBIT Stable order intake for Eastern and Central European (€m) (€m) (%) Transplants French & Italian car industry weakening Q1 293 19 6.3 FY 11/12 Utilization rates at voestalpine high due to dominant stake of Q2 premium producers 292 11 3.8 FY 11/12 Automotive Division strengthens global presence 1H 585 30 5.1 FY 11/12 New greenfield investments in U.S., China, South Africa, 1H Romania and Germany FY 10/11 477 25 5.2 Capital expenditure bolstered by long term contracts Solar energy as successful niche-businessvoestalpine AG12 | January 2012 | Investor Relations
  • 13. Financial overviewvoestalpine AGwww.voestalpine.com
  • 14. voestalpine groupConsolidated overview 1H 2010/11 1H 2011/12 YoY in %Sales €m 5,192 5,978 15.1EBITDA €m 711 824 16.0% of Sales % 13.7 13.8EBIT €m 414 531 28.3% of Sales % 8.0 8.9EBT €m 317 443 39.7Net Profit €m 250 346 38.6EPS* € 1.24 1.82 46.8Investments** €m 169 227 34.4Depreciation €m 296 293 -1.2Employees*** 39,862 41,168 * Based on average number of shares ** Fixed assets and acquisitions *** Per 30.09., excluding trainees & tempsvoestalpine AG14 | January 2012 | Investor Relations
  • 15. EBIT development1H 2010/11 vs. 1H 2011/12 34 €m -328 €m 396 €m 531 €m 414 €m 11 €m 4 €m EBIT EBIT 8.9% 8.0% Mix/ Raw 1H 2010/11 Price Volume* materials ppa Misc.* 1H 2011/12 * Savings are included in these itemsvoestalpine AG15 | January 2012 | Investor Relations
  • 16. voestalpine groupCash flow 1H 2010/11 vs. 1H 2011/12 1H 2010/11 1H 2011/12 Cash flow from result €m 554 618 Changes in working capital €m -80 -450 Cash flow from operating activities €m 474 168 Cash flow from investing activities €m -221 -232 Free cash flow €m 253 -64voestalpine AG16 | January 2012 | Investor Relations
  • 17. voestalpine groupGearing ratiovoestalpine AG17 | January 2012 | Investor Relations
  • 18. voestalpine groupDevelopment liquidity Liquidity Redemption – Schedule per 30.09.2011 per 30.09.2011€m Financial assets Cash Comfortable liquidity position and balanced maturity profile *) Syndicated loan: 400 m€, committed lines: 400 m€, closed on November 23, 2011voestalpine AG18 | January 2012 | Investor Relations
  • 19. voestalpine groupOutlook Global macro uncertainty questions short term upturn Sentiment still volatile due to public debt situation as well as pending problems in the banking sector and financial markets GDP-growth expectations generally reduced across 2012 (including China) Political environment within EU stabilizing, future of Euro no longer seriously questioned Customers and end-consumers still cautious, but no further deterioration of industrial sentiment expected Difficult CQ4 for steel industry in general and voestalpine Steel Division, but improved earnings expectations from spring 2012 onwards Stable development in processing divisions carried forward in H1 2012 UPTURN IN THE COURSE OF CY 2012 LIKELYvoestalpine AG19 | January 2012 | 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