Financial Year 2009/10 2nd Quarter, 1st Half

Transcription

1 Financial Year 2009/10 2nd Quarter, 1st Half Investor Relations November

2 Back on track after successful crisis management Steel Special Steel Railway Systems Profilform Automotive Top European player Global leadership Global leadership Global leadership Top European player 1Q 2009/10 2Q 2009/10 Delta 1Q 2Q 2008/ /10 YoY in % Sales 2,074 X 2,068 X 0 %XX 6,486 X 4,141 X 36 %XX DA 135 X 234 X +73 %XX 1,143 X 369 X 68 %XX 24 X 70 X turnaround 786 X 46 X 94 %X X EPS 0.40 X 0.05 X turnaround 2.94 X 0.35 X Savings 88 X 142 X +61 %XX 230 X Working Capital 2,425 X 1,918 X 21 %XX 2,583 X 1,918 X 26 %XX Gearing 90 %X 90 %X 92 %X 90 %X 2 November 2009 Investor Relations

3 voestalpine group Overview economic situation Economic downturn bottomed out in 1Q FY 2009/10 State of shock overcome Stabilization in major business segments during summer Energy business deteriorated with time lag effect Stabilization and improved expectations for 2H FY 2009/10 Utilization rates up in nearly all business areas in 3Q FY 2009/10 Economic upward trend driven by Asia Increased demand in Europe and U.S. mainly from end of destocking Cost base significantly improved due to lower raw material cost and implementation of cost cutting measures Sustainability of upturn still to be questioned 3 November 2009 Investor Relations

4 Division Steel Business development 1st Half Stabilization of business environment starting before summer Average utilization rate Jan. Aug ~75%, Sept. Nov. 100% Stocks on normal / low levels Increasing demand in particular from automotive sector Heavy plate demand, shipments and prices deteriorated since spring 2009 Steel prices hit bottom in 1Q FY 2009/10 Price increases for sheet in 3Q FY 2009/10 Tough negotiations for 4Q FY 2009/10 and annual contracts for 2010 Heavy plate lagging behind, prices and volumes low in 3Q FY 2009/10 Cost savings and long term contracts stabilising earnings Short term cost reductions mainly in personnel, maintenance and overheads Positive effects from lower raw materials offsetting 2009 price settlements of automotive contracts Division Steel in figures 1Q 2Q FY 08/09 yoy in % Sales () ,513 2, () (%) November 2009 Investor Relations

5 Division Special Steel Business development 1st Half Weak business environment in all major customer segments till September High Performance Metals, Precision Strip and Forging units under pressure Welding subdivision doing well Negative effects from destocking fading out in 3Q FY 2009/10 Slight improvement of demand, sustainability still to be questioned Capacity utilization currently ~ 70% Positive effects from alloys price development USA stabilizing on low level, slight recovery in Europe China picking up, Brazil & India optimistic Division Special Steel in figures* 1Q 2Q FY 08/09 yoy in % Sales () ,132 1, * After PPA () (%) November 2009 Investor Relations

6 Division Railway Systems Business development 1st Half Solid business development for rails and switches Only limited effects (North America and CEE) from economic downturn due to extended infrastructure projects Utilization rate % Division Railway Systems in figures Sales () () (%) Fierce price competition effecting 2H FY 2009/10 Wire business recovering Improving environment from June Capacity adjusted to a full 2 1Q 2Q shift operation after summer Pick up in demand since July, prices improved in 3Q FY 2009/10, price reductions in 4Q expected (scrap price related) FY 08/ , Seamless tubes business very weak yoy in % Volumes 50 % below last year s level. Capacity adjusted to a 2 shift operation Upturn not before summer 2010 expected 6 November 2009 Investor Relations

7 Division Profilform Business development 1st Half Moderately improved business environment Division Profilform in figures Slightly enhanced demand from restocking Ongoing general difficult situation in building, machine building and commercial vehicle sector industries 1Q Sales () 174 () 2 (%) 1.3 Logistic solutions (high bay warehousing) & solar energy stable on 2Q solid level so far Capacity utilization ~ 60 % FY 08/ Margin improvement due to cost cutting measures, short time work yoy in % and reduction of temporary staff 7 November 2009 Investor Relations

8 Division Automotive Business development 1st Half Negative trend in European Automotive industry slowing down European car production down 25 % (YTD) compared to last year. Some positive effects from Scrapping premium in particular for small cars Encouraging signals from order intake Positive operational performance for remaining CY 2009 Successful cost cutting programs will be further intensified European car production 2010 expected to be on similar level as 2009, upper/premium segments should benefit, decrease of small/medium car sales due to lack of incentive measures expected Division Automotive in figures 1Q 2Q FY 08/09 yoy in % Sales () () (%) November 2009 Investor Relations

9 Financial overview

10 voestalpine group Financial highlights Cost Fast cost cutting measures resulted in ca. 230 cost reductions in FY 2009/ target for full FY 2009/10, ca. 65% sustainable Capex Capex cut down from ~ 1,030 (original plan) to 600 for FY 2009/10 Depreciation level of ~ 550 target for CAPEX in next business years Liquidity Cash release of 488 from working capital reductions in FY 2009/10 (ca. 1,000 since beginning of CY 2009) 428 of additional cash inflow from recently signed term loan (yet undrawn) Gearing Stable Gearing ratio despite worst economic slump since decades Continuous cash inflow despite difficult economic situation 10 November 2009 Investor Relations

11 voestalpine group Consolidated overview 2008/ /010 YoY in % Sales 6,486 4, % DA 1, % % of Sales % % % of Sales % EBT Net Profit EPS* Investments** % Depreciation % Employees*** % 42,325 39,295 7 % * Undiluted EPS, based on average number of shares FY 2009/10 ** Fixed assets and acquisitions *** Per , excluding trainees & temps 11 November 2009 Investor Relations

12 voestalpine group Development 2008/09 vs. 2009/ % % /09 Price Mix/ Volume Raw materials Savings Restructuring Misc. ppa 2009/10 12 November 2009 Investor Relations

13 voestalpine group Cash flow 2008/09 vs 2009/ / /10 Cash flow from result Changes in working capital Cash flow from operating activities Cash flow from investing activities Free Cash flow November 2009 Investor Relations

14 voestalpine group Development Gearing ratio 2,547 2, ,289 82% 4,263 4,230 4,002*) ,810 3,602 90% 88% 90% 1,786 1,853 2, % 34% 32% % % 2002/ / / / / / /09 1Q 2009/ /10 Net Debt () Equity () Gearing Ratio (%) *) 248 m reduction of Equity due to dividend & hybrid coupon 14 November 2009 Investor Relations

15 voestalpine group Development liquidity Liquidity* per Redemption Schedule per Signed but undrawn term loan (428 ) 1, Financial assets Cash Liquidity 2009/ / / / / / /16 Comfortable liquidity position and balanced maturity profile *not included: undrawn committed lines & other instruments of ca November 2009 Investor Relations

16 voestalpine group Outlook FY 2009/10 Stabilization of volumes and prices in 2H FY 2009/10 Inventories on normal / low levels (relative to demand) in all divisions in 4Q CY 2009 No significant imports into Europe in Steel Division (till Nov 2009) Further indications of pick up in demand in particular market segments and regions BUT: Sustainability still to be questioned Pricing environment staying volatile in all divisions Overall further gradual improvement in 2H FY 2009/10 expected Lower raw material cost (vs. FY 2009/10) affecting earnings positively Benefits from ongoing cost cutting programs Target of clearly positive and net profit at break even level for FY 2009/10 confirmed Group wide efficiency programs for further sustainable cost improvement launched 16 November 2009 Investor Relations

17 Reuters VOES.VI Bloomberg VOE AV IR Contact Peter Fleischer E Mail peter.fleischer@voestalpine.com Phone +43/50304/