Voestalpine Ag · VIE:VOE
Voestalpine — Debt Investor Presentation (October 2014)
37 slides from Voestalpine's debt investor presentation, October 2014
Slide 1: Company Presentation Debt Investor Update October 2014
Company Presentation Debt Investor Update October 2014 voestalpine AG www.voestalpine.com
Slide 2: Overview
voestalpine Group Overview From a steel producer to a technology and industrial goods corporation n High-tech steel is the base of voestalpine, but 15 years of downstream strategy have transformed the group from a steelmaker to a technology and industrial goods corporation n Based on premium product
Slide 3: Business concept
voestalpine Group Business concept Focus on specific market segments with claim to leadership n The combination of metallurgical know-how in steel making and top processing expertise leads to innovative technical solutions and new products n Focus on strategic markets with utmost technology and qual
Slide 4: Global footprint
voestalpine Group Global footprint One Group – 500 sites – 50 countries – 5 continents Revenue by regions (Financial year 2013/14) (thereof Austria: 10 %, Germany: 30 %) Revenue by industries (Financial year 2013/14) MOBILITY: 47 % 62% ENERGY: 15 % 4 | October 2014 | Debt Investor Relations
Slide 5: Long-term strategy, cornerstones 2020
voestalpine Group Long-term strategy, cornerstones 2020 n Enhanced continuation of value-added growth n Growth focus on mobility- and energy-related industries (70% of sales in 2020), aiming for a globally leading position in defined high- tech product segments n Expansion focused on growth markets
Slide 6: Investment focus of divisions
voestalpine Group Investment focus of divisions (without acquisitions) Steel Division Metal Engineering Division Continuous annealing line for production of New wire rod mill at Donawitz/Austria Focus Profitable growth premium quality electrical strip (Q1 14/15*) site, most modern plant of its kind
Slide 7: Cost and efficiency improvement program
voestalpine Group Cost and efficiency improvement program n Efficiency improvement and cost optimization program launched in March 2014 n Savings target of 900 €m after full implementation over a three years period n Effects on net profit line realistically diluted by cost inflation and fierce price
Slide 8: Company structure and market position
voestalpine Group Company structure and market position voestalpine Group (Revenue in FY 2013/14) 33% 23% 24% 20% Steel Special Steel Metal Engineering Metal Forming Division Division Division Division Worldwide quality leadership Global leadership Global leadership Global leadership Global quality
Slide 9: Management board
voestalpine Group Management board Wolfgang Eder Chairman of the Board (CEO), Head of Steel Division Joined voestalpine in 1978, member of the Board since 1995 All members of the Robert Ottel Board have long- Member of the Board, Chief Financial Officer (CFO) term engagement Joined voestalpine in 19
Slide 10: Shareholder structure
voestalpine Group Shareholder structure (Figures as of April 1, 2014) 10 | October 2014 | Debt Investor Relations
Slide 11: Solid earnings in a cyclical business
voestalpine Group Solid earnings in a cyclical business EBIT margin (%) by divisions EBIT margin (%) voestalpine AG vs. European competitors 30 30 Lower volatility in earnings than Steel- 20 Peer competitors! 20 10 10 * 0 0 -10 -10 * Provisions ~205 m€ for cartel case and -20 closure of railproducti
Slide 12: Business development
voestalpine Group Business development n Continuation of macroeconomic trends in Q1 2014/15 €m Q1 * 2013/14 Q2 * 2013/14 Q3 * 2013/14 Q4 * 2013/14 Q1 2014/15 Delta in % n Recovery in Europe based on sustained robust exports and Sales 2,895 2,748 2,625 2,808 2,827 - 2.3 rise in domestic demand EBIT 2
Slide 13: Consolidated overview
voestalpine Group Consolidated overview Q1 2013/14* Q1 2014/15 01.04. – 30.06.2013 01.04. – 30.06.2014 €m % of Sales €m % of Sales Delta Sales 2,895 100.0 2,827 100.0 - 2.4 EBITDA 364 12.6 364 12.9 +/- 0 EBIT 222 7.7 218 7.7 - 1.4 EBT 175 6.0 193 6.8 + 10.2 Net profit 138 4.8 154 5.4 + 12.2 ** Based
Slide 14: Steel Division: Business segments and products
Steel Division Business segments and products Sheet Heavy Plate Steel Service Center Pre-Processing Foundry European Global European European Global LEADERSHIP TOP player TOP player TOP player TOP player (niche) Ø Highest quality sheet for Ø High-quality heavy Ø High-precision split Ø Partner in lig
Slide 15: Steel Division: Business development
Steel Division Business development €m Q1* Q2* Q3* Q4* Q1 Delta n Rising crude steel production in Europe in Q1 2014/15 2013/14 2013/14 2013/14 2013/14 2014/15 in % n Improving order intake from basically all steel consuming Sales 990 939 887 995 975 -1.5 industries above all from automotive and con
Slide 16: Special Steel Division: Business segments and products
Special Steel Division Business segments and products High Performance Metals High Performance Metals Forging Tool Steel Components Rapidly growing European/ Global LEADERSHIP European TOP player South American TOP player Ø Tool steel such as high-speed Ø Pre-processing solutions for Ø Closed-die fo
Slide 17: Special Steel Division: Business development
Special Steel Division Business development €m Q1* Q2* Q3* Q4* Q1 Delta n Broadly unchanged business conditions in Special Steel 2013/14 2013/14 2013/14 2013/14 2014/15 in % Division Sales 683 643 621 681 676 -1.0 n No improvement in European core markets EBIT 65 45 45 70 61 -5.7 n Restrained demand
Slide 18: Metal Engineering Division: Business segments and products
Metal Engineering Division Business segments and products Rail Turnout Seamless Welding Wire Technology Technology Tubes Technology European European Global Global Global LEADERSHIP TOP player TOP player TOP player TOP player Ø Innovative rail Ø “plug and play” turnout Ø High tech drawn wire Ø High-
Slide 19: Metal Engineering Division: Business development
Metal Engineering Division Business development €m Q1* Q2* Q3* Q4 Q1 Delta n All business segments of Metal Engineering Division with 2013/14 2013/14 2013/14 2013/14 2014/15 in % overall strong performance Sales 723 689 641 620 680 -6.1 n Return to railway infrastructure projects in Europe after EBI
Slide 20: Metal Forming Division: Business segments and products
Metal Forming Division Business segments and products Automotive Tubes & Sections Precision Strip Material Handling Body Parts European Technology & market European Global LEADERSHIP TOP player LEADERSHIP TOP player Ø Innovative and Ø Innovative Ø Cold rolled stainless steel Ø High-sophisticated sol
Slide 21: Metal Forming Division: Business development
Metal Forming Division Business development €m Q1* Q2* Q3* Q4* Q1 Delta n Positive trend of last quarters prolonged in Automotive 2013/14 2013/14 2013/14 2013/14 2014/15 in % Body Parts business Sales 598 568 574 617 602 +0.7 n Car sales numbers in Europe increasing, export EBIT 46 39 42 56 45 -2.8
Slide 22: Outlook
voestalpine Group Outlook n Risk of conflicts in Middle East and Russia-Ukraine to economic growth rates, above all in Europe n Only moderate direct activities of voestalpine Group in these regions (less than 2 % of total revenues) n Solid demand from core customer segments expected to proceed n Con
Slide 23: Key financials & credit profile
Key financials & credit profile voestalpine AG www.voestalpine.com
Slide 24: Development Net Debt / EBITDA
voestalpine key financials Development Net Debt / EBITDA After acquisition of Böhler-Uddeholm in 2007/08 decreasing debt to sustainable levels with stable earnings! * * EBITDA of the last four quarters, whereas Business year 2013/14 retroactively adjusted due to the application of IFRS 11 “Joint Arr
Slide 25: Development Gearing Ratio
voestalpine key financials Development Gearing Ratio Gearing ratio has been continuousely reduced to levels below 50%! 25 | October 2014 | Debt Investor Relations
Slide 26: Development Funds from Operations (FFO) and EBIT
voestalpine key financials Development Funds from Operations (FFO) and EBIT Even through the years of economic crisis sustainable earnings (EBIT) and cash generation (FFO)! * Last four quarters, whereas Business year 2013/14 retroactively adjusted due to the application of IFRS 11 “Joint Arrangement
Slide 27: Stable development of the secondary markets spread
voestalpine credit profile Stable development of the secondary markets spread Secondary market spread of voestalpine senior bonds showing stronger Z-Spread (bps) correlation with „Downstream“-Peers than with Steel-Peers -> less volatility! 27 | October 2014 | Debt Investor Relations
Slide 28: Financing portfolio
voestalpine credit profile Financing portfolio The financing strategy of voestalpine focuses on a Instrument Volume €m Maturity well balanced financial structure using a broad Schuldscheindarlehen 2008 170 2016 range of financing instruments! Schuldscheindarlehen 2012 400 2015 | 2017 | 2019 Senior B
Slide 29: Comfortable liquidity stake & balanced maturity schedule
voestalpine credit profile Comfortable liquidity stake & balanced maturity schedule €m Figures as of June 30, 2014 Strict management of 1,347 €m counterparty risk! Committed lines Repayment of 500 €m Hybrid Bond 2007 Financial assets 500 Cash 29 | October 2014 | Debt Investor Relations
Slide 30: Key considerations for credit quality
voestalpine credit profile Key considerations for credit quality n Highly diversified steel processing & technology group with sustainable cash generation Sound business platform n Value-added niche business model n Reduced cyclicality through diversified business portfolio n Innovative steel soluti
Slide 31: Backup
Backup voestalpine AG www.voestalpine.com
Slide 32: Balance Sheet
voestalpine Group Balance Sheet In millions of euros 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Non-current assets 2,517.0 2,674.3 2,892.8 3,366.0 6,778.4 7,075.5 7,072.2 6,855.5 6,801.2 6,980.9 7,118.9 Current assets 2,142.9 2,694.9 3,265.8 3,461.5 5,823
Slide 33: Profit and Loss Statement
voestalpine Group Profit and Loss Statement In millions of euros 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Revenue 4,616.30 5,779.10 6,230.60 6,943.80 10,481.20 11,724.9 8,550.00 10,953.70 12,058.2 11,524.4 11,228.0 Cost of sales -3,711.90 -4,551.10 -4,7
Slide 34: Cash Flow Statement
voestalpine Group Cash Flow Statement In millions of euros 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Cash flow from result* 431.7 744.2 845.9 1.119.4 1,398.1 1,239.3 733.7 1,194.6 994.3 1,096.9 1,175.4 Changes in working capital 144.8 -193.6 14.2 -149.2
Slide 35: Definitions of key indicators
voestalpine Group Definitions of key indicators EBITDA (Profit from operations before depreciation). Profit before tax, non-controlling interests, financial Capital Employed. The interest bearing capital employed. result, depreciation and amortization (incl. depreciation of goodwill and of additiona
Slide 36: Disclaimer
voestalpine Group Disclaimer These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of, or be relied on
Slide 37: Debt Investor Relations Contact
Debt Investor Relations Contact Günther Pastl Head of Group Treasury Reuters E-Mail [email protected] VOES.VI Phone +43/50304/15-3830 Daniel Huber Bloomberg Funding Manager & Debt Investor Relations VOE AV E-Mail [email protected] Phone +43/50304/15-2928 voestalpine AG www.
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