Voestalpine Ag · VIE:VOE
Voestalpine — H1 FY2010/11 Earnings Presentation
19 slides from Voestalpine's earnings presentation, November 2010
Slide 1: Financial Year 2010/11 2nd Quarter, 1st Half
Financial Year 2010/11 2nd Quarter, 1st Half Investor Relations November 2010 voestalpine AG www.voestalpine.com
Slide 2: Strategic position
voestalpine group Strategic position Unique business model 3.500 450 3.150 405 FY 09/10 FY 10/11 2.800 360 2,636 €m High Tech Player in Carbon Steel 2.450 315 2.100 270 Global Leader in Special Steel 1.750 211 €m225 1.400 180 Global Leader in Railway Systems 1.050 135 Global Leader in Tailored Secti
Slide 3: Global footprint
voestalpine group Global footprint Emerging economies driving growth Other Europe N-America 5% 6% 5% S-America 9% Asia 72% 3% ROW European Union, thereof Austria: 9% Consumer Energy goods Automotive 12% 29% 6% Other 13% 16% 14% 10% Railways Machine Building building Mature economies driving technolo
Slide 4: Divisional structure and strategy
voestalpine group Divisional structure and strategy Steel Special Steel Railway Systems Profilform Automotive 20 Focus on most demanding technology 15 & products GROUP 10 No spot market exposure 5 0 Minimum top 3 market position -5 Partial backward integration -10 1Q 08/09 2Q 08/09 3Q 08/09 4Q 08/09
Slide 5: Business development 1st Half FY 2010/11
voestalpine group Business development 1st Half FY 2010/11 Division Steel Further improvement of results despite Division Special Steel Increasingly challenging business environment in steel Boost of raw material prices since April ‘10 Division Railway Systems Traditional seasonality over summer Ful
Slide 6: Division Steel – Business development 1st Half FY 2010/11
Division Steel – Business development 1st Half FY 2010/11 General conditions of global steel markets weakening Division Steel in figures since early summer Particular situation of voestalpine unchanged positive Sales EBIT EBIT (€m) (€m) (%) High quality steel markets showing stable demand Q1 922 81
Slide 7: Division Steel background
Division Steel background International steel markets Utilization rates* voestalpine vs. European steel industry WSA Steel Demand Forecast** for EU 27 EU27 (%) voestalpine (%) Mio. tons 250 CAGR(2011-2020): 4% 1 200 150 100% 100% 100% 100% 100% 70% 100 78% 68% 71% 60% 65% 53% 50 FORECAST 0 0 2000 20
Slide 8: Division Special Steel – Business development 1st Half FY 10/11
Division Special Steel – Business development 1st Half FY 2010/11 In general further consolidation of upward trend over summer Division Special Steel in figures Strong demand from automobile and electronic industries as well as from consumer goods and oil exploration sectors Sales EBIT EBIT Signs of
Slide 9: Division Railway Systems – Business development 1st Half FY 2010/11
Division Railway Systems – Business development 1st Half FY 2010/11 Mixed picture in railways segment Division Railway Systems in figures Decline in profitability for standard rails bottomed out over summer Sales EBIT EBIT Further expansion of high tech rail segment (€m) (€m) (%) Switches business s
Slide 10: Division Profilform – Business development 1st Half FY 2010/11
Division Profilform – Business development 1st Half FY 2010/11 Stabilization on high level in major business sectors Division Profilform Strong growth impulses from energy sector, in particular from in figures solar energy Enhanced demand also from commercial vehicle and Sales EBIT EBIT (€m) (€m) (%
Slide 11: Division Automotive – Business development 1st Half FY 2010/11
Division Automotive – Business development 1st Half FY 2010/11 Strong increase of auto production in CY 2010, but Division Automotive still significantly below pre-crisis level in figures Asian market (China) driver for production boom of Sales EBIT EBIT premium cars in Europe (€m) (€m) (%) Upswing
Slide 12: Financial overview
Financial overview voestalpine AG www.voestalpine.com
Slide 13: Consolidated overview 1H 2009/10 1H 2010/11
voestalpine group Consolidated overview 1H 2009/10 1H 2010/11 YoY in % Sales €m 4,182 5,192 24.2 EBITDA €m 367 711 93.7 % of Sales % 8.8 13.7 EBIT €m 43 414 870 % of Sales % 1.0 8.0 EBT €m -42 317 Net Profit €m -20 250 EPS* € -0.35 1.24 Investments** €m 276 169 Depreciation €m 324 296 Employees*** 3
Slide 14: EBIT development
EBIT development 1H 2009/10 vs. 1H 2010/11 419 €m 30 €m 414 €m 25 €m EBIT 11.0% -208 €m EBIT EBIT 1.0% 8.0% 105 €m 43 €m Mix/ Raw 1H 2009/10 Price Volume* materials ppa Misc.* 1H 2010/11 * Savings of 110 €m in 1H 2010/11 are included in these items voestalpine AG 14 | November 2010 | Investor Relati
Slide 15: Cash flow 1H 2009/10 vs. 1H 2010/11
voestalpine group Cash flow 1H 2009/10 vs. 1H 2010/11 1H 2009/10 1H 2010/11 Cash flow from result €m 224 554 Changes in working capital €m 488 -80 Cash flow from operating activities €m 712 474 Cash flow from investing activities €m -356 -221 Free cash flow €m 356 253 voestalpine AG 15 | November 20
Slide 16: Gearing ratio
voestalpine group Gearing ratio 4,370 4,289 4,263 4,262 3,762 3,572 88% 3,037 2,882 2,874 83% 2,547 71% 65.8% 2,125 1,786 1,853 47% 34% 32% 831 635 684 15% 526 18% 377 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 1H 2010/11 2010/11 Net Debt (€m) Equity (€m) Gearing-Ratio (%) voest
Slide 17: Development liquidity
voestalpine group Development liquidity Liquidity* Redemption – Schedule per 30.9.2010 per 30.09.2010 2,000 1,750 1,500 Financial assets 1,120 1,250 1,030 707 €m 1,000 710 750 Cash 500 380 762 250 180 150 0 Liquidity 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Comfortable liquidity position and
Slide 18: Outlook 2010/11
voestalpine group Outlook 2010/11 Overall favourable market environment in 2011 Stable and solid demand in all 5 divisions Full capacity utilization in all major business-units Raw materials: Only limited further price increases Cost savings- and efficiency improvement projects well on track (target
Slide 19: 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