BUSINESS YEAR 2017/18 1 st QUARTER

Transcription

1 BUSINESS YEAR 2017/18 1 st QUARTER Investor Relations September

2 voestalpine GROUP OVERVIEW» voestalpine is a leading technology and capital goods group with combined material and processing expertise» It is holding global top positions in its business units» The group focuses on most demanding product and system solutions based on steel and other metals in technology-intensive industries and niches» Clear focus on strategically in the long run most promising sectors like mobility and energy» Long-term relationships with customers, suppliers and R&D-institutions as key drivers for innovation 2 Investor Relations

3 voestalpine GROUP GLOBAL FOOTPRINT One Group 500 sites 50 countries 5 continents Revenue by regions (Business year 2016/17) European Union 70% NAFTA Asia Rest of world South America 11% 9% 7% 3% Revenue by industries (Business year 2016/17) Automotive 34% Railway systems 12% Aerospace 3% MOBILITY: 49% Energy Building/Construction Mechanical engineering 13% 10% 9% White goods/consumer goods 5% Other 14% 3 Investor Relations

4 voestalpine GROUP BUSINESS DEVELOPMENT Q1 BY 2017/18 SUMMARY» In a solid business environment earnings back to pre-crisis level in Q1 2017/18» Boost of EBITDA to 514m EUR and of EBIT to 329m EUR» Positive growth in Europe and Asia, only moderate trend in the US» Strong momentum in European steel industry & successful implementation of downstream strategy as drivers» Excellent demand from automotive, aviation, consumer goods as well as mechanical engineering industries» Volume-based recovery in oil & gas sector, still restrained price situation» Worldwide substantially differing order situation in railway infrastructure 4 Investor Relations

5 voestalpine GROUP QUARTERLY FIGURES Q1 BY 2017/18 1 st quarter 2016/17 2 nd quarter 2016/17 3 rd quarter 2016/17 4 th quarter 2016/17 1 st quarter 2017/18 Delta in % Sales 2,772 2,635 2,693 3,193 3, EBITDA EBITDA-margin 12.0% 14.1% 13.2% 15.0% 15.8% EBIT EBIT-margin 6.0% 7.6% 6.5% 8.7% 10.1% In millions of euros 5 Investor Relations

6 voestalpine GROUP INVESTMENTS & CASH FLOW DEVELOPMENT CAPEX (INCL. ACQUISITIONS) DEPRECIATION FREE CASH FLOW PEAK-CAPEX 1,178 1,311 1,011 (8.9%) Selected CAPEX projects 2011/ / / / / / / / /20 Start global rollout of new automotive technologies Start additive manufacturing, Germany, Asia, NAFTA Erection precision strip center, Austria Erection annealing line II, Austria New heavy plate mill, Austria Start construction HBI plant, Texas, USA Erection new wire rod mill, Austria Start construction high tech aviation forging lines, Austria Global expansion value added services 6 Investor Relations

7 STEEL DIVISION BUSINESS DEVELOPMENT Q1 BY 2017/18» Steel Division with best quarterly earnings since Lehmann» Satisfying demand situation with positive effect on steel prices» Highly fluctuating raw material prices, in particular coking coal» Flat steel imports continuously on high level» Core segments of Steel Division with overall good performance» Automotive, consumer goods & mechanical engineering as drivers for strong demand situation» Satisfactory capacity utilization due to processing of major orders in Heavy Plate business» Temporary production stop of HBI plant in Texas but only limited damages because of hurricane Harvey m Q1 Q2 Q3 Q4 Q1 Delta 16/17 16/17 16/17 16/17 17/18 in % Sales ,209 1, EBITDA EBITDA-% 9.6% 16.6% 14.9% 16.1% 18.8% EBIT EBIT-% 2.3% 8.8% 6.3% 8.9% 12.4% 7 Investor Relations

8 HIGH PERFORMANCE METALS DIVISION BUSINESS DEVELOPMENT Q1 BY 2017/18 (Former: Special Steel Division)» Overall satisfactory market conditions in Q1 2017/18» Tool steel benefiting from good demand of automotive & consumer goods industries» Gradual recovery in oil & gas sector prolonged» Strong deliveries to aviation industry» Solid growth in heavy mechanical engineering segment» Upward trend with regional disparities» Asia, in particular China as driver of growth» Improving sentiment in Europe» Dynamics in US below expectations» Slight encouraging signals in Brazil after long recession m Q1 Q2 Q3 Q4 Q1 Delta 16/17 16/17 16/17 16/17 17/18 in % Sales EBITDA EBITDA-% 14.9% 14.8% 14.1% 14.8% 17.2% EBIT EBIT-% 9.5% 9.1% 8.8% 9.9% 12.1% 8 Investor Relations

9 METAL ENGINEERING DIVISION BUSINESS DEVELOPMENT Q1 BY 2017/18» Continuation of prevailing trends from previous quarters» Unabated weakness in the European rails market» Recovery of drilling activities in the US driving demand for OCTG products, price upturn following only slowly» Solid performance of Turnout Systems due to comprehensive global positioning» Weakness in Europe offset by excellent development in Asia» First signs of upturn in US-heavy haul business» Order intake in Wire Technology bolstered by strong car sales in Europe» New wire rod mill fully operational by end of Q2 2017/18» Welding Consumables successfully restructured but still facing competitive framework m Q1 Q2 Q3 Q4 Q1 Delta 16/17 16/17 16/17 16/17 17/18 in % Sales EBITDA EBITDA-% 12.9% 12.9% 12.5% 15.4% 11.3% EBIT EBIT-% 7.3% 7.0% 6.7% 8.8% 6.1% 9 Investor Relations

10 METAL FORMING DIVISION BUSINESS DEVELOPMENT Q1 BY 2017/18» On-going strong development of Automotive Components» Further increasing car sales in Europe in CY 2017» German premium brands with stagnating sales volumes in the US but continuing growth in China» On-going global rollout of key automotive technologies» Positive market environment in Tubes & Sections» Improving sentiment in Europe based on upturn of commercial vehicles and agricultural machinery industries» Largely restrained investment activities in the US, slight recovery in Brazil» Excellent performance of Precision Strip» Outstanding market position & solid business environment bolstering strong earnings» Attractive project activities in Warehouse & Rack Solutions m Q1 Q2 Q3 Q4 Q1 Delta 16/17 16/17 16/17 16/17 17/18 in % Sales EBITDA EBITDA-% 13.0% 12.8% 12.3% 13.9% 13.2% EBIT EBIT-% 9.0% 8.4% 7.7% 9.5% 9.1% 10 Investor Relations

11 FINANCIAL OVERVIEW Q1 BY 2017/18 11 Investor Relations

12 voestalpine GROUP FINANCIAL OVERVIEW Q1 BY 2016/ /04/ /06/30 Q1 BY 2017/ /04/ /06/30 Delta in % Sales 2,772 3, EBITDA EBITDA-margin 12.0% 15.8% EBIT EBIT-margin 6.0% 10.1% EBT Net profit EPS In millions of euros 12 Investor Relations

13 voestalpine GROUP FINANCIAL OVERVIEW Q1 BY 2016/ /04/ /06/30 Q1 BY 2017/ /04/ /06/30 Delta in % CAPEX* *) Fixed assets and acquisitions Depreciation Net Financial Debt 3,189 3, Gearing 55.9% 53.8% In millions of euros 13 Investor Relations

14 voestalpine GROUP DEVELOPMENT EBIT EBIT 6.0 % EBIT 10.1 % Q1 BY 2016/17 Price Raw Materials Mix/ Volume Misc. Q1 BY 2017/18 In millions of euros 14 Investor Relations

15 voestalpine GROUP DEVELOPMENT CASH FLOW Q1 BY 2016/ /04/ /06/30 Q1 BY 2017/ /04/ /06/30 Cash flow from results Changes in working capital Cash flow from operating activities Cash flow from investing activities Free cash flow In millions of euros 15 Investor Relations

16 voestalpine GROUP DEVELOPEMENT GEARING RATIO 6,060 6,221 47% 1,786 1,853 2,125 2,547 4,289 4,263 4,262 3,572 83% 88% 3,762 71% 2,882 3,037 5,262 5,075 4,691 4,836 2,713 2,586 2,259 2,421 58% 54% 45% 46% 5,652 5,115 3,221 3,347 2,978 3,080 58% 55% 53% 54% % 32% % % 2002/ / / / / / / / / / / / / / /17 Q1 BY 2017/18 Net Debt ( m) Equity ( m) Gearing ratio (%) 16 Investor Relations

17 voestalpine GROUP LIQUIDITY AND REDEMPTION SCHEDULE Liquidity 1,557 Redemption Committed lines Financial assets Cash -964 In millions of euros -115 as of 2017/06/30 Q1 2017/ / / / /21 17 Investor Relations

18 voestalpine GROUP OUTLOOK» Worldwide growth gaining momentum, but political threats rising» Impact of US economic policy on global trade flows hard to predict» Growth driven by Asia foremost China, enhanced support from Europe» After long-lasting recession in Brazil & Russia first cautious signs of (possible) trend reversals» Further step-by-step recovery of oil & gas sector, European building/ construction industry with positive trend, railway infrastructure showing mixed signals» Unchanged solid development of automotive, consumer goods, machine building and aviation industries expected» Realistic forecast for H2 2017/18 difficult due to volatility of raw material prices Outlook 2017/18: Substantially positive development of revenue & earnings 18 Investor Relations

19 INVESTOR RELATIONS Peter Fleischer T. +43/50304/ Gerald Resch T. +43/50304/

20 FACT SHEET voestalpine GROUP 2016/17

21 GROUP STRUCTURE SHARE OF GROUP SALES 33% Steel Division 23% 23% 21% High Performance Metals Division (former Special Steel Division) Metal Engineering Division Metal Forming Division ONE GROUP 5 CONTINENTS, 50 COUNTRIES, 500 GROUP COMPANIES AND LOCATIONS OVERVIEW voestalpine is a leading technology and capital goods group with combined material and processing expertise and a global market leader in its major business segments. The Group focuses on product and system solutions based on highest quality steel and other metals in technology-intensive industries and niche markets. REVENUE BREAKDOWN BY INDUSTRY SECTOR 2016/17 As percentage of Group revenue BY REGIONS 2016/17 As percentage of Group revenue 34% Automotive 14% Other 5% White goods/ Consumer goods 12% Railway systems 70% European Union (of which Austria: 7%) 11% NAFTA 13% Energy 3% Aerospace 3% South America 10% Building/Construction 9% Mechanical engineering 9% Asia 7% Rest of world

22 DEVELOPMENT OF THE KEY FIGURES 2012/ / / / /17 Revenue 11, , , , ,294.5 EBITDA 1, , , , ,540.7 EBITDA margin 12.4% 12.4% 13.7% 14.3% 13.6% EBIT EBIT margin 7.3% 7.1% 7.9% 8.0% 7.3% Profit before tax Profit after tax Return on capital employed (ROCE) 10.4% 9.3% 10.0% 9.2% 8.1% Equity 5, , , , ,060.3 Net financial debt 2, , , , ,221.1 Net financial debt in % of equity (gearing) 44.5% 46.0% 58.2% 54.5% 53.2% Market capitalization, end of period 4, , , , ,506.2 Share price, end of period (euros) Dividend per share (euros) Before deduction of non-controlling interests and interest on hybrid capital. 2 As proposed to the Annual General Shareholders Meeting. In millions of euros DIVIDEND POLICY DIVIDEND PER SHARE AND DIVIDEND YIELD Dividend yield (in %) 2.8% 2.9% 3.8% 3.0% 3.0% 3.2% 3.3% PAY-OUT RATIO In % Dividend per share (in euros) * / / / / / / / / / / / / / /17 * As proposed to the Annual General Shareholders Meeting. CONTINOUS DIVIDEND PAYMENT SINCE IPO IN 1995 IR CONTACTS Peter Fleischer Head of Investor Relations peter.fleischer@voestalpine.com T. +43/50304/ Gerald Resch Investor Relations Manager gerald.resch@voestalpine.com T. +43/50304/ FINANCIAL CALENDAR Annual General Shareholders Meeting July 5, 2017 Ex-dividend date July 13, 2017 Record date for dividend payment July 14, 2017 Dividend payment date July 17, 2017 Letter to shareholders for the first quarter of 2017/18 August 9, 2017 Letter to shareholders for the second quarter of 2017/18 November 8, 2017 Letter to shareholders for the third quarter of 2017/18 February 8, 2018 Annual Report 2017/18 June 6, 2018 Bloomberg Reuters VOE AV VOES.VI

23 UNIQUE BUSINESS MODEL STEEL DIVISION WORLDWIDE QUALITY LEADERSHIP Global quality leadership in highest quality steel strip and global market leader in heavy plate for the most sophisticated applications as well as casings for large turbines. The voestalpine Steel Division is a strategic partner for Europe s well-known automobile manufacturers and major automotive suppliers. Addition ally, it is one of the largest suppliers to the European consumer goods and white goods in dustries as well as to the mechanical engineering sector. voest alpine produces heavy plate for the energy sector that is used under extreme conditions in the oil and gas industries, for example, for deep-sea pipelines or in the permafrost regions of the world. Furthermore, the division is a global leader in the casting of large turbine casings. High quality steel sheet Heavy plate for oil & gas industry HIGH PERFORMANCE METALS DIVISION 1 GLOBAL LEADERSHIP Worldwide leadership in tool steel; leading position in high-speed steel and special forgings. 1 former Special Steel Division The voestalpine High Performance Metals Division is the lead ing global manufacturer of high performance metals, which have specially developed material properties with regard to high resistance to wear, polish ability, and toughness. Customers for these materials are the automotive and consumer goods industries in the segment of tool steel applications as well as the power plant construction industry and the oil and gas industries in the segment of special components. The division is also a leading supplier of forgings for the aviation and power generation industries. Aircraft components Tool steel METAL ENGINEERING DIVISION GLOBAL LEADERSHIP Worldwide market leader in turnout technology; European market leader in rails and specially treated wire; and leading position in seamless tubes for special applications and high quality welding consumables. The voestalpine Metal Engineering Division has developed a leading position on the global railway market with its ultra long, head-hardened HSH rails with a length of up to 120 meters. Further more, the division is the largest global provider of highly developed turnout systems as well as track-based monitoring systems for all railway applications. The division also has a leading market position in the specially treated wire segment, for sophisticated seamless tubes for the oil and gas industries worldwide, and high quality welding consumables. Rails Turnout systems METAL FORMING DIVISION GLOBAL LEADERSHIP Global market leader in defined niches supplying high quality metal processing solutions with a global network and service. Within voestalpine the Metal Forming Division constitutes the center of competence for highly refined sections, tubes and precision strip steel products as well as for ready-to-install system components made of pressed, stamped and roll-formed parts. Its combination of material expertise and pro cessing competence, which is unparalleled throughout the industry, and its global presence make the division the preferred partner to customers who are looking for innovation and quality. Automotive body parts Special sections

24 REVENUE BREAKDOWN 2016/17 (EUR 3.9 BILLION) EBIT By industry sector (as percentage of divisional revenue) By regions (as percentage of divisional revenue) 20% Energy 4% White goods/ Consumer goods 10% Building/Construction 38% Automotive 5% Mechanical engineering 23% Other 2% Asia 5% NAFTA 6% Rest of world 87% European Union (of which Austria: 18%) 4.4% /12 12/13 13/14 6.7% /15 15/16 16/17 EBIT (in millions of euros) EBIT margin (in %) REVENUE BREAKDOWN 2016/17 (EUR 2.7 BILLION) EBIT By industry sector (as percentage of divisional revenue) By regions (as percentage of divisional revenue) 9.3% 8.1% 8.5% 9.1% 8.6% 9.4% 29% Automotive 12% Aerospace 14% NAFTA 11% Energy 13% White goods/ Consumer goods 19% Mechanical engineering 12% Other 18% Asia 7% South America 53% European Union (of which Austria: 4%) % Building/Construction 8% Rest of world 11/12 12/13 13/14 14/15 15/16 16/17 EBIT (in millions of euros) EBIT margin (in %) REVENUE BREAKDOWN 2016/17 (EUR 2.7 BILLION) EBIT By industry sector (as percentage of divisional revenue) By regions (as percentage of divisional revenue) 5% Mechanical engineering 11.0% % 11.3% 11.0% 52% Railway systems 16% Energy 15% Automotive 15% NAFTA 14% Asia 57% European Union (of which Austria: 7%) 10.2% 1 3.3% 8.8% 2 7.5% 3 8.1% 3 3% Building/Construction 7% Other 2% White goods/ Consumer goods 3% South America 11% Rest of world /12 12/13 13/14 14/15 15/16 16/17 1 One off: EUR 205 million of provisions 2 EBIT adjusted: EUR 252 million, EBIT margin adjusted: 8.8% 3 EBIT adjusted: EUR 217 million, EBIT margin adjusted: 8.1% EBIT (in millions of euros) EBIT margin (in %) REVENUE BREAKDOWN 2016/17 (EUR 2.4 BILLION) EBIT By industry sector (as percentage of divisional revenue) By regions (as percentage of divisional revenue) 54% Automotive 1% Energy 5% White goods/ Consumer goods 8% Mechanical engineering 9% Other 23% Building/Construction 3% South America 13% NAFTA 4% Asia 2% Rest of world 78% European Union (of which Austria: 4%) 7.5% /12 7.3% /13 7.7% /14 9.5% /15 8.7% 8.7% /16 16/17 EBIT (in millions of euros) EBIT margin (in %)

25 voestalpine Strasse Linz, Austria T. +43/50304/15-0 F. +43/50304/55+Ext.