DEBT INVESTOR UPDATE DEBT INVESTOR RELATIONS JUNE voestalpine AG

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1 DEBT INVESTOR UPDATE DEBT INVESTOR RELATIONS JUNE

2 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 Debt Investor Relations

3 GLOBAL FOOTPRINT One Group 500 sites 50 countries 5 continents Revenue by regions (Business year 2017/18) European Union 66% (70%) NAFTA Asia Rest of world South America 14% (11%) 8% (9%) 8% (7%) 4% (3%) (last year s figures) INCREASING NON-EU-BUSINESS, MOBILITY-SECTOR STABLE Revenue by industries (Business year 2017/18) Automotive 34% (34%) Railway systems 11%(12%) Aerospace 3% (3%) MOBILITY: 48% (49%) Energy 15% (13%) Building/Construction Mechanical engineering White goods/consumer goods Other 9% (10%) 9% (9%) 5% (5%) 14% (14%) (last year s figures) 3 Debt Investor Relations

4 STRATEGIC PRINCIPLES OF VOESTALPINE» Steel as sole material base, additional use of alternative materials in processing activities» Portfolio expansion only in core businesses or in core-business-related areas» Downstream activities as drivers of further expansion» Consistent extension of the value chain towards attractive end customer segments» Growth focus in markets outside Europe (NAFTA, Asia)» Industry segments with highest technology and quality demand as preferred partners» Technology and quality leadership in products and services» Strong customer orientation permanent cost and efficiency management continuous process optimization» Minimum top-3 position as clear objective in each business unit Other Regions > 40% 2020-Targets Mobility ~50% 40 Other industries 60 EU < 60% 4 Debt Investor Relations

5 COMPANY STRUCTURE AND MARKET POSITION voestalpine Group (Revenue in BY 2017/18) 36% 22% 22% 20% Steel Division 5 Debt Investor Relations High Performance Metals Division Metal Engineering Division Metal Forming Division Worldwide quality leadership Global leadership Global leadership Global 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. Worldwide leadership in tool Worldwide market leader in steel, leading position in highspeed steel and special forgings. market leader in rails and turnout technology; European specially treated wire; and leading position in seamless tubes for special applications and high quality welding consumables. More information about voestalpine s business models and facts is available online: tion/ business-model-and-facts.pdf Global market leader in defined niches supplying high quality metal processing solutions with a global network and service.

6 MANAGEMENT BOARD Wolfgang Eder * Chairman of the Board (CEO) Joined voestalpine in 1978, member of the Board since 1995 Robert Ottel Member of the Board, Chief Financial Officer (CFO) Joined voestalpine in 1997, member of the Board since 2004 Herbert Eibensteiner ** Member of the Board, Head of Steel Division Joined voestalpine in 1989, member of the Board since 2012 Franz Rotter Member of the Board, Head of High Performance Metals Division Joined voestalpine in 1981, member of the Board since 2011 Franz Kainersdorfer Member of the Board, Head of Metal Engineering Division Joined voestalpine in 1996, member of the Board since 2011 Peter Schwab Member of the Board, Head of Metal Forming Division Joined voestalpine in 1993, member of the Board since 2014 All members of the Board have long-term engagement and experience in voestalpine Group! * Mr. Eder will leave the board as of 3 July 2019 ** Mr. Eibensteiner will succeed Mr. Eder as CEO as of 3 July Debt Investor Relations

7 SHAREHOLDER STRUCTURE Ownership structure according to regions (Figures as of March 31, 2018) Major individual shareholders (as of March 31, 2018) Raiffeisenlandesbank Oberösterreich Invest GmbH & Co KG < 15 % voestalpine employee shareholding scheme 14 % Oberbank AG 8.1 % 7 Debt Investor Relations

8 SOLID EARNINGS IN A CYCLICAL BUSINESS EBIT margin (%) by divisions EBIT margin (%) vs. European competitors Lower volatility in earnings and higher profitability than Steel-Peer competitors! (excluding material one-off effects) -20 (excluding material one-off effects) -30 Q3/2008 Q1/2009 Q3/2009 Q1/2010 Q3/2010 Q1/2011 Q3/2011 Q1/2012 Q3/2012 voestalpine Group High Performance Metals Division Metal Forming Division Q1/2013 Q3/2013 Q1/2014 Q3/2014 Q1/2015 Q3/2015 Q1/2016 Q3/2016 Q1/2017 Steel Division Metal Engineering Division Q3/2017 Q1/ Q3/2008 Q1/2009 Q3/2009 Q1/2010 Q3/2010 Q1/2011 Q3/2011 Q1/2012 Q3/2012 Q1/2013 Q3/2013 Q1/2014 Q3/2014 Q1/2015 Q3/2015 Q1/2016 Q3/2016 Steel-Peer-Group Q1/2017 Q3/2017 Q1/2018 Solid earnings only one quarter with negative EBIT since IPO 1995 due to a diversified portfolio... a long value chain... positioning in various market segments... focus on innovation, service and cost efficiency 8 Debt Investor Relations... partial backward integration

9 BUSINESS YER 2017/18: ALL-TIME HIGH» New records in all earnings categories as well as group revenues» Combination of favorable market environment and consistent innovation & efficiency management over last 15 years» In particular strong gains in Steel Division, but also High Performance Metals Division with significant growth, Metal Engineering and Metal Forming Divisions with sustainable upward trend» Europe, China, India and slightly more volatile NAFTA with strong growth, Brazil back from 4 years of recession» Automotive industry with ongoing strong development, consumer goods and aircraft industries stable on high level, pick-up of mechanical engineering industry, step by step recovery of oil & gas business, challenging market conditions in European railway infrastructure» Increasing US-protectionism creates worries, but no major economic damages so far 9 Debt Investor Relations

10 BUSINESS YEAR 2017/18: DIVISIONAL BREAKDOWN voestalpine GROUP Revenue m 12,898 (+14.2%) EBITDA m 1,954 (+26.8%) EBIT m 1,180 (+43.3%) 36 % 22 % 22 % 20 % STEEL HIGH PERFORMANCE METALS METAL ENGINEERING METAL FORMING Revenue m 4,773 (+22.0%) Revenue m 2,918 (+8.2%) Revenue m 2,990 (+11.4%) Revenue m 2,743 (+13.1%) EBITDA m 908 (+61.1%) EBITDA m 454 (+14.9%) EBITDA m 372 (+3.1%) EBITDA m 325 (+2.6%) EBIT m 593 (+125.3%) EBIT m 298 (+17.8%) EBIT m 191 (-4.9%) EBIT m 213 (+1.0%) 10 Debt Investor Relations (change compared to BY 2016/17)

11 STEEL DIVISION BUSINESS SEGMENTS AND PRODUCTS Sheet Heavy Plate Steel & Service Center Hot Briquetted Iron (HBI) Foundry European TOP player Global TOP player European TOP player GlobalTOP player Global LEADERSHIP Highest quality sheet for automotive, white goods, electrical, construction and mechanical engineering industries Processed, coated and galvaniced sheet High-quality heavy plate for the energy market (pipelines, oil & gas platforms) High-strength and wearresistant steel grades for steel and vehicle engineering sectors and chemical industries Individual preprocessing of flat products and cut heavy plates 3-dimensional processing Production of finished parts & components Individual logistic solutions Production of premium Hot Briquetted Iron (HBI) Superior feedstock for highquality steel production Partly used at voestalpine production sites Partly sold to high-quality steel producers Casting components for the energy industry such as turbines 11 Debt Investor Relations

12 STEEL DIVISION BUSINESS DEVELOPMENT BY 2017/18» Broad economic growth as well as cost, efficiency & technology optimization driving excellent performance» Strong demand in major customer segments automotive, consumer goods and mechanical engineering» Despite still only modest linepipe business, solid order intake in high-tech heavy plate» Decreasing Chinese dumping exports due to domestic capacity adjustments and improving internal demand» However advancing imports from Turkey, India, South Korea, Iran and others» HBI-plant in Texas: positive market sentiment, continuously improving technical performance, despite Harvey and strong winter solid EBITDA Q1 Q2 Q3 Q4 BY BY m 17/18 17/18 17/18 17/18 17/18 16/17 Delta in % Revenue 1,213 1,086 1,176 1,298 4,773 3, EBITDA , EBITDA-% 18.8% 19.8% 17.8% 19.7% 19.0% 14.4% EBIT EBIT-% 12.4% 12.7% 11.1% 13.4% 12.4% 6.7% 12 Debt Investor Relations

13 HIGH PERFORMANCE METALS DIVISION BUSINESS SEGMENTS AND PRODUCTS (former Special Steel Division) Tool Steel 8% High Speed Steel 1% Nickel alloys 2% Stainless Steel 89% High Performance Metals Production High Performance Metals Distribution & Value Added Service Special Forgings Global LEADERSHIP Global LEADERSHIP European TOP player Engineering Steel 7% Carbon Steel 91% Speciality Steel 2% 13 Debt Investor Relations Production of tool steels, high-speed steel, valve steel, powder-metallurgical steel, high alloyed steels for sophisticated metallurgical areas in oil and gas, energy equipment, aerospace and automotive industries Eight production sites in Austria, Germany, Sweden, USA and Brazil Global distribution and service network with 150 warehouse and service sites in 50 countries Very well established brands creating strong customer loyalty Providing of Value Added Services like local warehousing, machining, heat treatment, coating, application consulting etc. Closed-die forged components with focus on aerospace, commercial vehicles and energy equipment

14 HIGH PERFORMANCE METALS DIVISION BUSINESS DEVELOPMENT BY 2017/18» Strong business conditions in all sectors» Automotive and consumer goods industries bolstering excellent tool steel demand» Further recovery of onshore oil & gas activities» Aviation sector with ongoing high order intake» First commercial business in additive manufacturing» Europe as regional driver for strong performance» US with increasing protectionist tendencies in special steels» Brazil showing gradual recovery after years of downturn» Ongoing strong momentum in China» US-driven impairment in Brazil reducing EBIT in Q4 by 10m EUR m Q1 Q2 Q3 Q4 BY BY Delta 17/18 17/18 17/18 17/18 17/18 16/17 in % Revenue ,918 2, EBITDA EBITDA-% 17.2% 14.3% 14.6% 15.9% 15.6% 14.6% EBIT EBIT-% 12.1% 9.0% 9.5% 10.0% 10.2% 9.4% 14 Debt Investor Relations

15 METAL ENGINEERING DIVISION BUSINESS SEMGENTS AND PRODUCTS Rail Technology Turnout Technology Wire Seamless Tubes Welding Technology European TOP player Global LEADERSHIP European TOP player Global TOP player Global TOP player Innovative rail manufacturer of highest quality products (120m head-hardened rails) Plug and Play turnout systems for high-speed railways, mass transit and heavy-haul railways High tech drawn wire for automotive and construction industry Fastening and material handling technology High-tech seamless tubes for oil and gas industries Special tubes for various industrial applications Specialist for mediumand high-grade alloy welding filler materials 15 Debt Investor Relations

16 METAL ENGINEERING DIVISION BUSINESS DEVELOPMENT BY 2017/18» Uneven sentiment in railway infrastructure» Earnings of Rail Technology affected by less demand and therefore high level of competition in Europe» Only minor impulses in mining regions Brazil & South Africa» Turnout Systems with solid development due to leading global market position and excellent order intake in China» Wire Technology benefiting from strong market conditions and most modern wire rod mill» Impairment of 15m EUR in ultra thin fine wire due to ongoing market weakness» Full capacity utilization and step by step price recovery in Tubulars» Still difficult environment in Welding Consumables m Q1 Q2 Q3 Q4 BY BY Delta 17/18 17/18 17/18 17/18 17/18 16/17 in % Revenue ,990 2, EBITDA EBITDA-% 11.3% 12.2% 11.5% 14.7% 12.4% 13.4% EBIT EBIT-% 6.1% 4.6% 5.8% 8.9% 6.4% 7.5% 16 Debt Investor Relations

17 METAL FORMING DIVISION BUSINESS SEGMENTS AND PRODUCTS Tubes & Sections Automotive Components Precision Strip Material Handling Global LEADERSHIP European TOP player Technology & market LEADERSHIP EuropeanTOP player Innovative and high-quality tubes, sections, and precision steel tube products Innovative and high-quality automotive components for the automobile industry Cold stamping, hot forming, body panels and tailored blanks Cold rolled stainless steel strips with a high degree of precision and excellent surface quality High-sophisticated solutions in the areas of high-bay warehouses and racking systems 17 Debt Investor Relations

18 METAL FORMING DIVISION BUSINESS DEVELOPMENT BY 2017/18» Excellent business sentiment in Automotive Components throughout BY 2017/18» EU-car registrations 2017 further up» However, short term negative earnings impacts from enhanced ramp-ups of new plants in China, US and Mexico» Improving conditions in special Tubes & Sections» Positive impulses in European core markets, Brexit weighing on UK» Upturn in Brazil, US with only moderate trend» Solid business sentiment and strong global position bolstering strong performance of Precision Strip» E-commerce supporting extensive global project activities in Warehouse & Rack Solutions Q1 Q2 Q3 m 17/18 17/18 17/18 Q4 BY BY Delta 17/18 17/18 16/17 in % Revenue ,743 2, EBITDA EBITDA-% 13.2% 11.6% 10.7% 11.9% 11.9% 13.1 EBIT EBIT-% 9.1% 7.3% 6.5% 8.0% 7.8% 8.7% 18 Debt Investor Relations

19 OUTLOOK BY 2018/19» Promising start of Business Year 2018/19, strong order book for first 6 months» Global growth continues, strong demand in major markets & industry segments» Further improvements in oil & gas as well as railway infrastructure» Blast furnace relining in Steel Division with earnings impact, predominantly in the 2 nd and 3 rd quarter» Increasing contribution to sales and profits from completed investments of last 12 months» Negative impact from trade sanctions on global economy to be assessed as possible, but with limited effect in the short run IN A GEOPOLITICALLY BLUE SKY SCENARIO 2018/19 EARNINGS ON SIMILAR LEVEL AS IN 2017/18 19 Debt Investor Relations

20 KEY FINANCIALS BUSINESS YEAR 2017/18

21 DEVELOPEMENT GEARING RATIO Figures in millions of euros 6,303 47% 1,786 1,853 2,125 2,547 4,289 4,263 83% 88% 4,262 3,572 3,762 71% 2,882 3,037 5,075 5,262 4,691 4,836 2,713 2,586 58% 54% 2,259 2,421 45% 46% 6,060 5,652 5,115 2,978 3,080 3,221 58% 55% 53% 2,995 46% % 32% % % 2002/ / / / / / / / / / / / / / / /18 Net Debt ( m) Equity ( m) Gearing ratio (%) 21 Debt Investor Relations

22 DEVELOPEMENT NET DEBT / EBITDA Figures in millions of euros 3,762 3,572 3,221 3, ,080 2,713 2,978 2,995 2,586 2,259 2, ,954 1,837 1, ,530 1,583 1,541 1,359 1,606 1,302 1,431 1, , , / / / / / / / / / / / / / / / /18 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Net Debt ( m) EBITDA Net Debt / EBITDA 22 Debt Investor Relations

23 DEVELOPEMENT FFO and EBIT Figures in millions of euros 1,622 1, ,119 1,011 1,153 1, , , ,166 1,176 1, , , / / / / / / / / / / / / / / / /18 FFO EBIT 23 Debt Investor Relations

24 FINANCING PORTFOLIO The financing strategy of voestalpine focuses on a well balanced financial structure using a broad range of financing instruments! 19% 9% 11% 26% Schuldscheindarlehen Instrument Volume m Maturity Schuldscheindarlehen 596 various Senior Bonds 1, , 2021, 2024 Syndicated Loan Committed credit lines (undrawn) 700 mainly 2022 Export financing facilities 834 various Other financing facilities 1,010 various Hybrid Bond perpetual Figures in millions of euros as of 2018/03/31 16% 13% 6% 24 Debt Investor Relations Senior Bonds Committed Credit Lines (undrawn) Syndicated Loan Export Financing Facilities Other Financing Facilities Hybrid Bond The documentation is in line with investment grade standards and contains no pledges of assets or financial covenants.

25 LIQUIDITY AND REDEMPTION SCHEDULE LIQUIDITY 1,845 REDEMPTION 700 Committed lines 439 Financial assets Cash Liquidity 2018/ / / / /23 further 25 Debt Investor Relations Figures in millions of euros as of 2018/03/31

26 SECONDARY MARKET BOND SPREADS Z-Spread (bps) Stable development of secondary market bond spreads and far less volatility compared to steel peers Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 voestalpine Steel Peers Non-Steel Bond Comparables iboxx Non. Fin. BBB 26 Debt Investor Relations

27 DEBT INVESTOR RELATIONS Günther Pastl T. +43/50304/ Daniel Huber T. +43/50304/

28 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 in connection with, any contract or investment decision in relation to any securities. These materials contain forward-looking statements based on the currently held beliefs and assumptions of the management of, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. disclaims any obligation to update these forwardlooking statements to reflect future events or developments. 28 Debt Investor Relations