FISCAL YEAR 2004/05. Investor Relations June

Transcription

1 FISCAL YEAR 2004/05 Investor Relations June

2 HIGHLIGHTS 2004/05 All-time high sales of 5.8 bn and EBIT of 553 (continued operations) Not included: 50 one-off-costs liquidation Matzner ROCE 15%; EPS 9.44 Flat steel prices up 25% all-time high production (4.6 mio t) Rail prices up 10%; Wire and seamless tubes up 30%; record volumes Excellent market conditions for sections & tubes Continuing operations of division motion 5.4% EBIT-margin 2

3 2004/05 Group Figures Sales 5,779 (+25%) EBITD 888 (+59%) EBIT 553 (+127%) Sales 3, ,586 EBIT EBIT-margin 10.9% 3.7% 11.6% 7.7% Sales/Division 50% 13% 11% 26% 3

4 10 YEARS IN REVIEW OWNERSHIP STRUCTURE 1995 VA Tech 22.7% 38.5% 38.8% OIAG 2005 Free Float Average dividend yield 4.6% p.a. Share price performance 150% UK Germany North America 19% 8% 45% 8% 6% 10.3% Europe Switzerland 2% ROW 1.7% Employeeshareholding scheme Austria Total shareholder return ~20% p.a. over the last 10 years 4

5 10 YEARS IN REVIEW COST CUTTING PROGRAMS To manage the negative price/cost squeeze in the steel business of ~2% 3 cost cutting programs since 1995 (TOP, CIP, R4F) in CIP TOP savings p.a. FY 2004/05 Savings per ton compared to /t /98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 TOP* CIP** R4F*** *Total Operational Performance **Continuous Improvement Program ***READY4FUTURE 5

6 STRATEGY THE PORTFOLIO EFFECT SSC Flat steel Heavy plates Core competence steelmaking & processing Rails & Switches Wire Seamless tubes LW Blanks Stamping parts Precision parts Sections & Tubes Storage systems Clear focus within divisions on core competences Industry mix leads to risk minimization and cyclical stabilization Synergies within the group are the key to enhanced value Growth opportunities combined with high profitability 6

7 STRATEGY ACQUISITIONS 2004/05 division motion Van Niftrik HTI Vollmer Plastic parts and hybrid technology for automotive industry/netherlands Sales ~40 Precision parts for airbags and suspension systems/germany Sales ~16 Stamping parts, structural parts and safety segments/germany Sales ~30 Division Railway Systems Rail Products Switches producer/usa & Fabrications Sales ~10 JV Veekayan Switches, rail services/india & Digvijay Sales ~10 Division Profilform Nedcon Storage systems/netherlands Sales ~100 Total acquired sales of 206 7

8 STRATEGY ENERGY GROWTH MARKET OF THE FUTURE Increasing energy consumption globally (+50% till 2025); oil +2% yoy Expected development in offshore-production: oil +40% gas +80% Heavy Plate: 2/3 of sales from Energy; Plates for the deepest pipeline worldwide (length 230 km, depth 2,500 m; from Gulf of Mexico to Louisiana) Seamless Tubes: Drill pipes and tubes for the oil & gas industry as well as for Chinese power plants Profilform: Aluminium-plated special tubes for power plant cooling systems (China) Capacity increase from 350,000 t 2002/03 to 650,000 t 2007/08 in high quality heavy plates 8

9 RAW MATERIAL IMPACT Raw material price increase Influence on cost structure voestalpine purchase price index Index Iron Ore Coke Coal Scrap Others FY 98/99 FY 99/00 FY 00/01 FY 01/02 FY 02/03 Current trend Iron Ore Coke Coal Scrap Alloys FY 03/04 FY 04/05 FY 05/06e Iron ore Coal Scrap Coke Alloys Oil 22% 12% 10% 9% 7% 2% 62% Material costs 26% 14% 10% 8% 7% 2% 2004/ /06 67% Material costs 9

10 OUTLOOK Current uncertainty due to high inventories about further pricing in steel; long-term contracts minimize downside-risks Stabilization in European infrastructure spendings Railway Systems will keep on high level Pressure on prices for standard sections & tubes Profilform's margin slightly reduced Improving situation in division motion due to liquidation Matzner & latest highly profitable acquisitions EBIT 2005/06 expected again above

11 DIVISION STEEL MARKET VIEW Sales Breakdown by industry Sales 3,087.4 (+27.5%) EBIT (+118.2%) EBIT-margin 10.9% Other 15% Oil 7% Automotive 26% price increase qoq Flat steel price development 4Q 04/05 3Q 04/05 2Q 04/05 1Q 04/05 White Goods 11% 17% Construction & constr. subsuppliers 24% Investment program Linz 2010 First stage completed Rebuilding BFA CC6 HDG 3 Colour Coating 2 Civil and mechanical engineering 0 1Q 2004/05 2Q 2004/05 3Q 2004/05 4Q 2004/05 Automotive White Goods Construction Automotive White Goods Construction Automotive White Goods Construction Automotive White Goods Construction Second stage - Orders placed for Cold rolling mill HDG 4 (+5) Walking beam furnace 11

12 division motion MARKET VIEW Sales 788 (+12.9%) EBIT 29.4 (+68.7%) EBIT-margin 3.7% Sales Breakdown by industry Other Civil and mechanical 1% Construction & constr. engineering subsuppliers 12% 3% Automotive markets relatively stable in 2004/05, slight improvement in 2005 expected 84% Automotive Subsuppliers still in squeeze position, between high steel prices and over capacities of OEMs Nevertheless operative performance of division on track New production record in Tailor-Welded Blanks (EBIT-margin: 6.0%) High demand for precision parts (EBIT-margin: 8.4%) Stable demand for pressing and spare parts (EBIT-margin: 4.4%) 12

13 division motion STRATEGY Less demand from OEMs for engineering services and separate orders for engineering and manufacturing lack of synergy Withdrawal of division motion from the field of engineering services for third parties while maintaining expertise as a foundation for production-related development Liquidation of Matzner One-off-costs 40 Loss in 2004/05 10 Focus on Body-in-White unchanged but further growth mainly in niche production areas with no direct competition to OEMs 13

14 DIVISION PROFILFORM MARKET VIEW Sales (+47.2%) EBIT 82.8 (+105.2%) EBIT-margin 11.6% Sales Breakdown by industry Transport Other & Storage 22% 17% All-time high shipments of 650,000 t in 2004/05 (+10%) Outstanding price level Automotive 14% 12% Civil and mechanical engineering 35% Construction & constr. subsuppliers High demand from civil- and mechanical engineering and truck industry in general and from construction in UK & Belgium Still rising demand for storage facilities; integration of Nedcon Concentration of commodity production in Eastern European low-cost-locations 14

15 DIVISION RAILWAY SYSTEMS MARKET VIEW Sales 1,586.4 (+22.0%) EBIT (+126.0%) EBIT-margin 7.7% Rails & Switches Demand in Germany still weak, rest of Europe stable, South Africa and Australia booming. Integration of latest acquisitions in USA and India Sales Breakdown by industry Other Oil 12% 4% 14% Automotive 5% 7% Construction Civil Wire Further concentration top quality segments with high pricing power 5% 10% High Railway 58% Bearing steel Seamless Tubes Shipments (+20% yoy) & EBIT (+270% yoy) driven by high energy demand 40% 29% 26% 59% 24% 7% Quality Low Spring steel 2000/ /05 15

16 FINANCIAL HIGHLIGHTS 2004/05 Record high in sales and profitability Working capital increase driven by purchase prices and capacity increase IFRS 3 adjustments depreciation of Goodwill 18 Discontinued operations from liquidation of Matzner Positive impact from new tax rate and group taxation (24.9% vs 30.1% yoy) 16

17 CONSOLIDATED OVERVIEW 2004/ /04 Change Sales 5, , % EBITD % % of Sales EBIT % % of Sales Profit for the period* (continued operations) % Discontinued operations Equity 2, , % Investments % Employees 22,955 22,755 +0,9% *acc. IFRS incl. Minorities 17

18 CASH FLOW 2004/ / /04 Cash Flow from result Changes in working capital Cash Flow from operating activities Cash Flow from investing activities Free Cash Flow

19 NET DEBT & EQUITY GEARING 1,530 1,564 1,786 1,853 2, % % % % % 2000/ / / / /05 Net Debt () Equity () Net Debt/Equity Ratio (%) 19

20 RETURN ON CAPITAL EMPLOYED 15.0% 3, % 3,129 3, % 1,873 1, % 2,131 2, % 7.1% 7.8% 1997/ / / / / / /05 Capital employed () ROCE in % 20

21 PER SHARE DATA 2004/ /04 EPS* Book value per share Dividend 1.50** Bonus 0.60** 1.25 Bonus 0.35 Dividend Yield (average share price) 4.4% 4.9% *IFRS basis on net profit from continuing operations **Subject to approval at AGM 21

22 EBIT-DEVELOPMENT FY 2004/05 vs FY 2003/ EBIT 5.3% Price/mix Net effect Volume Raw materials Acquisition Misc. EBIT 9.6% FY 2003/04 FY 2004/05 22

23 GROWTH SUCCESS SINCE IPO / 0 5 () Sales 2,456 5, % EBIT % Equity 944 2, % Gearing 23% 32% Investment Dividend pay-out Σ 4 bn Σ

24 Reuters VOES.VI Bloomberg VOE AV IR Contact Wolfgang Lemberger Phone +43 / 732 /

25 voestalpine VALUE DRIVERS BACKUP STABILITY Gearing-Ratio < 70% VALUE ENHANCING ROCE 12% ATTRACTIVE DIVIDEND Dividend Yield ~4% PROFITABILITY EBITD 14% SALES GROWTH Internal/External 25

26 USP LOCATION: FUTURE MARKET CENTRAL & EASTERN EUROPE BACKUP Unique location as high-quality producer within 500 km radius New automotive, building and household capacities are concentrated in the core region of voestalpine voestalpine Steel-capacity increase mainly dedicated to CEE Automotive White Goods Construction 26