Voestalpine Ag · VIE:VOE
Voestalpine — FY2009/10 Earnings Presentation
27 slides from Voestalpine's earnings presentation, June 2010
Slide 1: Business Year 2009/10 Financial Results
Business Year 2009/10 Financial Results Investor Relations June 2010 voestalpine AG www.voestalpine.com
Slide 2: Unique business model
voestalpine group Unique business model Steel Special Steel Railway Systems Profilform Automotive Top European Global Global Global Top European player leadership leadership leadership player Niche focused high tech / high quality strategy Market leader in business units Diversified by regions
Slide 3: Sales breakdown FY 2009/10
voestalpine group Sales breakdown FY 2009/10 Energy industry Automotive White goods & consumer goods 12% 29% 6% Other** 13% 16% 14% 10% Civil & mechanical Sales breakdown engineering by region Railway Building & constr. subsuppliers Asia ROW* Sales breakdown South America 5% 9% 3% by industry sector
Slide 4: Key figures
voestalpine group Key figures FY 2009/10 Steel Special Railway Profilform Automotive Group Steel Systems Sales (€m) 3,099 2,358 1,909 724 835 8,550 Share of group sales 35% 27% 21% 8% 9% EBITDA (€m) 423 153 329 64 74 1,004 EBITDA-Margin 13.7% 6.5% 17.2% 8.8% 8.8% 11.7% EBIT (€m) 201 -80 226 32 18 35
Slide 5: Highlights FY 2009/10
voestalpine group Highlights FY 2009/10 3.500 450 3,255 Improving demand since 3Q 2009/10 driven 3.150 405 by recovery in most business segments 2.800 358 360 Continuous earnings-upturn from 1Q to 2.450 315 2,262 4Q 2009/10 2.100 270 No impairment losses 1.750 225 Working capital reduction o
Slide 6: Division Steel (1)
Division Steel – Business development (1) Steel price volatile throughout 2009/10 Spot prices in 1Q 2009/10 ca. 40% below pre-crisis-level Rising prices in autumn cause too quick capacity ramp up in EU 27 – price pressure back again end of CY 2009 Prospects of doubling raw material costs pus
Slide 7: Division Steel (2)
Division Steel – Business development (2) 1,175 Division Steel in figures Sales EBIT EBIT 189 (€m) (€m) (%) 807 1Q 760 -17 -2.3 FY 09/10 2Q 753 46 6.2 FY 09/10 3Q 778 99 12.7 FY 09/10 73 4Q 807 73 9.1 FY 09/10 1Q-4Q 3,099 201 6.5 FY 09/10 1Q-4Q 4,329 522 12.1 FY 08/09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q yoy in
Slide 8: Division Steel: Crude steel production vs EU27
Division Steel Crude steel production vs EU27 110 Index: Q1 2008/09 = 100 100 * 90 * 80 70 60 50 40 30 20 10 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY 2008/09 FY 2009/10 EU27 voestalpine * Blast furnace relining voestalpine AG 8 | June 2010 | Investor Relations
Slide 9: Division Special Steel (1)
Division Special Steel – Business development (1) Low order intake in first 9 months of 2009/10 as a result of global destocking Consumer goods and automotive sector clearly improving in 2H 2009/10 Slight upturn in machine building & commercial vehicle industry from 4Q 2009/10 on Still fragi
Slide 10: Division Special Steel (2)
Division Special Steel – Business development (2) 1,017 Division Special Steel in figures Sales EBIT* EBIT (€m) (€m) (%) 650 1Q 571 -48 -8.3 FY 09/10 2Q 561 -33 -5.9 34 FY 09/10 24 3Q 576 -23 -3.9 FY 09/10 4Q 650 24 3.6 FY 09/10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q-4Q 2,358 -80 -3.4 FY 09/10 1Q-4Q 3,531 55 1.
Slide 11: Division Railway Systems (1)
Division Railway Systems – Business development (1) Overall still solid business environment for rails & switches in 2009/10 Robust demand in Europe and Asia, weak market in Eastern Europe and US BUT: Increasing price competition and fight for volume in standard rails segment over 2009/10 Te
Slide 12: Division Railway Systems (2)
Division Railway Systems – Business development (2) 631 Division Railway Systems 91 in figures Sales EBIT EBIT 485 (€m) (€m) (%) 1Q 482 57 11.7 59 FY 09/10 2Q 488 57 11.6 FY 09/10 3Q 454 53 11.8 FY 09/10 4Q 485 59 12.2 FY 09/10 1Q-4Q 1,909 226 11.8 FY 09/10 1Q-4Q 2,351 325 13.8 FY 08/09 1Q 2Q 3Q 4Q
Slide 13: Division Profilform (1)
Division Profilform – Business development (1) Demand in major business units differing significantly in 2009/10 Construction & commercial vehicle sector extremely challenging Stable business in logistics & storage technology Increasing demand from solar energy segment Western Europe weak,
Slide 14: Division Profilform (2)
Division Profilform – Business development (2) 341 Division Profilform in figures 49 Sales EBIT EBIT (€m) (€m) (%) 1Q 174 -2 -1.3 FY 09/10 192 2Q 179 5 2.6 FY 09/10 3Q 179 10 5.6 FY 09/10 20 4Q 192 20 10.1 FY 09/10 1Q-4Q 724 32 4.4 FY 09/10 1Q-4Q 1,147 132 11.5 FY 08/09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q yoy i
Slide 15: Division Automotive (1)
Division Automotive – Business development (1) Automotive business plunges in 1H 2009/10, first signs of rebound in 2H 2009/10 Quick slow-down of demand stopped by public incentive programs Smaller and compact cars benefitting, virtually no effect on premium segment Impact largely on sales,
Slide 16: Division Automotive (2)
Division Automotive – Business development (2) 259 234 Division Automotive in figures Sales EBIT EBIT (€m) (€m) (%) 18 1Q 195 -2 -1.1 FY 09/10 2Q 193 -1 -0.3 FY 09/10 14 3Q 213 7 3.3 FY 09/10 4Q 234 14 5.8 FY 09/10 1Q-4Q 835 18 2.2 FY 09/10 1Q-4Q 989 1 0.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY 08/09 yoy in % -
Slide 17: Well balanced portfolio
voestalpine group Well balanced portfolio EBIT (%) 20 [ in % ] voestalpine portfolio well 15 balanced, consisting of 10 Early movers 5 Stable businesses 0 Laggards -5 Provides stability in downturn Takes leverage of upturn -10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Limits overall cyclicality 2008/09 20
Slide 18: Financial overview
Financial overview voestalpine AG www.voestalpine.com
Slide 19: Consolidated overview
voestalpine group Consolidated overview YoY in % FY 2008/09 FY 2009/10 Sales €m 11,725 8,550 -27.1 EBITDA €m 1,710 1,004 -41.3 % of Sales % 14.6 11.7 EBIT €m 989 352 -64.4 % of Sales % 8.4 4.1 EBT €m 700 183 -73.9 Net Profit €m 612 187 -69.4 EPS* € 3.26 0.65 Investments** €m 1,079 543 -49.7 Deprecia
Slide 20: EBIT Development 2008/09 vs. 2009/10
voestalpine group EBIT Development 2008/09 vs. 2009/10 989 €m EBIT 8.4% 102 €m 352 €m 400 €m 5 €m EBIT -25 €m 4.1% 738 €m -1,024 €m -833 €m Mix/ Raw 2008/09 Price Volume materials Savings Restructuring Misc. Δ ppa 2009/10 voestalpine AG 20 | June 2010 | Investor Relations
Slide 21: Cost effects of efficiency programs
Others voestalpine group (€m 50) Special Cost effects of efficiency programs (€m) Steel Division Steel Division (€m 150) (€m 350) Crisis management Sustainable efficiency gains 510 600? Overheads Sales Structure 360 Acceleration of Processes Higher Efficiency 150 IT Solutions Logistics
Slide 22: Cash flow 2008/09 vs 2009/10
voestalpine group Cash flow 2008/09 vs 2009/10 2008/09 2009/10 Cash flow from result €m 1,239 734 Changes in working capital €m 119 872 Cash flow from operating activities €m 1,358 1,606 Cash flow from investing activities €m -1,311 -587 Free cash flow €m 47 1,019 voestalpine AG 22 | June 2010 | Inv
Slide 23: Development gearing ratio
voestalpine group Development gearing ratio 4,289 4,263 4,262 3,762 3,572 83% 88% 3,037 2,882 2,547 71% 2,125 1,786 1,853 47% 831 34% 635 684 32% 526 18% 377 15% 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Net Debt (€m) Significant Equity (€m)despite crisis reduction Gearing-Rati
Slide 24: Development liquidity
voestalpine group Development liquidity Liquidity* Redemption – Schedule per 31.03.2010 per 31.03.2010 , 2.000 , 1.750 Financial assets , 1.500 1,265 , 1.250 1,025 €m , 1.000 Cash 710 705 750 500 250 130 120 0 Liquidity 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Comfortable liquidity position a
Slide 25: 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%* 3,0% 48% 200 2,0% 31% 33% 26% 24% 100 1,0% 0 0,0% 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Dividend payments (
Slide 26: Outlook 2010/11
voestalpine group Outlook 2010/11 Continuation of industrial upward trend in 2010 despite Euro- and deficit-worries Emerging markets stay drivers of global growth Further step by step recovery of mature economies Overall demand for voestalpine products further improving in the course of 2010
Slide 27: 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