Voestalpine Ag · VIE:VOE
Voestalpine — FY2010/11 Earnings Presentation
26 slides from Voestalpine's earnings presentation, May 2011
Slide 1: Business Year 2010/11 Financial Results
Business Year 2010/11 Financial Results Investor Relations May 2011 voestalpine AG www.voestalpine.com
Slide 2: Business concept (1)
voestalpine group Business concept (1) n Steel is the base of voestalpine group n Downstream strategy driving evolution from a pure steel maker to a processing oriented enterprise n Focus on most demanding customer segments in terms of innovation, technology and quality n Custom made solutions and p
Slide 3: Business concept (2)
voestalpine group Business 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 option n Longest value added chain in the industry n Closer to
Slide 4: Global footprint
voestalpine group Global footprint Emerging economies driving growth Other Europe N-America 5% 7% Brazil 4% 8% Asia 72% 4% ROW European Union, thereof Austria: 10% Energy White & industry Automotive consumer goods 14% 28% 8% 15% 12% Other 13% 10% Civil & Railway Mechanical Building engineering infra
Slide 5: Structure & position
voestalpine group Structure & 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 Well balanced, diversified p
Slide 6: Profitability vs. Peers (EBIT-margin)
voestalpine group Profitability vs. Peers (EBIT-margin) 2008 2009 2010 30 20 10 [ in %] 0 -10 -20 -30 1.CQ 2.CQ 3.CQ 4.CQ 1.CQ 2.CQ 3.CQ 4.CQ 1.CQ 2.CQ 3.CQ 4.CQ 1.CQ 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 voestalpine peers (listed European steel companies) source: Bloomber
Slide 7: EBIT development FY 2008/09 vs. FY 2010/11
EBIT development FY 2008/09 vs. FY 2010/11 FY 2008/09 FY 2010/11 Sales 11,724.9 10,953.7 EBIT 988.7 -3,8 984.8 EUR Millions 414.7 151.7 -411.3 -86.1 -72.8 418.5 CIP FY 2008/09 Price Volumes, Raw Materials PPA FY 2010/11 Operational (after ppa) Productmix excellence (after ppa) voestalpine AG 7 | May
Slide 8: Key figures FY 2010/11 (after ppa)
voestalpine group Key figures FY 2010/11 (after ppa) Steel Special Railway Profilform Auto- Group Group FY 2010/11 Steel Systems motive 2010/11 2009/10 Sales (€m) 4,175 2,631 2,723 1,139 1,040 10,954 8,550 Share of group sales 36% 22% 23% 10% 9% EBITDA (€m) 595 388 422 160 121 1,606 1,004 EBITDA- 14
Slide 9: Business development
voestalpine group Business development n Stable upward trend: 7th consecutive quarter with voestalpine group in figures increasing EBIT - Sales EBIT EBIT n Operational profit up 34% in 4Q vs 3Q (€m) (€m) (%) n EBIT-margin of nearly 11% in 4Q 2010/11 Q1 2,556 203 8.0 FY 10/11 n Highest profitability
Slide 10: Division Steel
Division Steel Business development n Ambivalent picture in European steel market Division Steel in figures n Varying capacity utilization rates throughout FY 2010/11 Sales EBIT EBIT n Inventories on normal level but increasing steel imports (€m) (%) (€m) recently Q1 n Solid profitability in voestal
Slide 11: Division Special Steel
Division Special Steel Business development Division Special Steel n Strong rebound of special steel, driven by in figures (past ppa) n successful implementation of efficiency programme: Sales EBIT EBIT (€m) (€m) (%) reduced complexity and streamlined sales network Q1 614 37 6.0 n improved demand fr
Slide 12: Division Railway Systems
Division Railway Systems Business development n Outstanding performance - only standard rails lagging Division Railway Systems in figures behind Sales EBIT EBIT n Continued solid business environment in switches (€m) (€m) (%) and premium rails Q1 668 63 9.4 FY 10/11 n Excellent performance in seamle
Slide 13: Division Profilform
Division Profilform Business development Division Profilform n Appealing earnings although still space for in figures improvement in some business segments Sales EBIT EBIT (€m) (€m) (%) n Demand from solar energy, commercial vehicle and Q1 agricultural machinery sectors on solid level FY 10/11 274 2
Slide 14: Division Automotive
Division Automotive Business development n Strong recovery of global automotive market in Division Automotive in figures CY 2010 Sales EBIT EBIT n China, India, Brazil and North America driving forces (€m) (€m) (%) of global automotive demand Q1 243 13 5.3 FY 10/11 n Sales in Europe below pre-crisis
Slide 15: Financial overview
Financial overview voestalpine AG www.voestalpine.com
Slide 16: Consolidated overview
voestalpine group Consolidated overview YoY FY 2009/10 FY 2010/11 in % Sales €m 8,550 10,954 + 28.1 EBITDA €m 1,004 1,606 + 59.9 % of Sales % 11.7 14.7 EBIT €m 352 985 + 179.8 % of Sales % 4.1 9.0 EBT €m 183 781 + 326.1 Net Profit €m 187 595 + 218.3 EPS* € 0.65 3.04 Investments** €m 543 423 Deprecia
Slide 17: Key financial metrics
voestalpine group Key financial metrics 8,550 Sales 10,954 +28,1% Sales 1,004 EBITDA +59,9% Profitability 1,606 352 EBIT 985 +179,8% 183 EBT 781 +326,1% 187 Net Profit 595 +218,3% 11,7% EBITDA 14,7% Margins 4,1% EBIT 9,0% FY 2009/10 FY 2010/11 voestalpine AG 17 | May 2011 | Investor Relations
Slide 18: Income statement
voestalpine group Income statement 8,550 Total TotalSales Sales 10,954 1,004 EBTIDA 1,606 652 Depreciation 621 352 EBIT 985 169 Financial results 204 183 EBT 781 3 Taxes 186 187 Net profit 595 FY 2009/10 FY 2010/11 voestalpine AG 18 | May 2011 | Investor Relations
Slide 19: EBIT development 2009/10 vs. 2010/11
EBIT development 2009/10 vs. 2010/11 747 €m 612 €m 49 €m 35 €m 985 €m -810 €m EBIT 352 €m 9.0% EBIT 4.1% Mix/ Raw 2009/10 Price Volume* materials D ppa Misc.* 2010/11 * Savings are included in these items voestalpine AG 19 | May 2011 | Investor Relations
Slide 20: Cash flow 2009/10 vs. 2010/11
voestalpine group Cash flow 2009/10 vs. 2010/11 2009/10 2010/11 Cash flow from result €m 734 1,195 Changes in working capital €m 872 -237 Cash flow from operating activities €m 1,606 958 Cash flow from investing activities €m -587 -467 Free cash flow €m 1,019 491 voestalpine AG 20 | May 2011 | Inves
Slide 21: Cash flow
voestalpine group Cash flow 8,550 10,954 734 Cash flow from result 1,195 8,550 10,954 Changes in working 872 capital 237 Cash flow from 1,606 958 operating activities Cash flow from 587 investing activities 467 1,019 Free cash flow 491 FY 2009/10 FY 2010/11 voestalpine AG 21 | May 2011 | Investor Re
Slide 22: Gearing ratio
voestalpine group Gearing ratio 4,691 4,289 4,263 4,262 3,762 3,572 88% 3,037 83% 2,882 71% 2,713 2,547 2,125 58% 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 Net Debt (€m) Equity (€m) Gearing-Ratio (%) voestalpine AG 22
Slide 23: Development liquidity
voestalpine group Development liquidity Liquidity* Redemption – Schedule per 31.03.2011 per 31.03.2011 2,000 1,750 612 Financial 1,500 assets 1,250 1,127 1,030 €m 1,000 756 750 1,233 500 Cash 176 250 148 0 Liquidity 2011/12 2012/13 2013/14 2014/15 2015/16 Comfortable liquidity position and balanced
Slide 24: Dividend policy
voestalpine group Dividend policy €m Dividend yield (in %) Pay-out ratio (in %) 400 5,0% 4.4% 4.3% 4.1% 4.0% 3.6% 4,0% 78% 300 2.2% 2.8%* 3,0% 48% 200 2,0% 31% 33% * 26% 24% 26% 100 1,0% 0 0,0% 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 20
Slide 25: Outlook
voestalpine group Outlook n No downturn of global economy in 2011 expected; stable development on high level in Asia and South America, further upturn in Europe, US ?? n However, major risks remain: Fragile banking sector, public debt in the US and some European countries, political instability in s
Slide 26: IR Contact
IR Contact Peter Fleischer Reuters Head of Investor Relations VOES.VI E-Mail [email protected] Phone +43/50304/15-9949 Gerald Resch Bloomberg Investor Relations Manager VOE AV E-Mail [email protected] Phone +43/50304/15-3152 voestalpine AG www.voestalpine.com