Business Year 2008/09 Financial results June 2009 voestalpine AG - - PowerPoint PPT Presentation

voestalpine AG www.voestalpine.com

Business Year 2008/09 Financial results

June 2009

1 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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voestalpine group

Unique business model

• Niche focused high tech / high quality strategy
• Market leader in the niches voestalpine operates
• Diversified by regions, segments and products
• No spot market exposure, long term contracts
• Well balanced portfolio

Sales breakdown by region* Sales breakdown by industry sector*

*) Figures BY 2008/09 6% 14% 13% 13% 17% 12% 25%

Building &

• constr. subsuppliers

Railway Civil & mechanical engineering Other White Goods & Consumer Goods Automotive Energy industry

7% 22% 4% 4% 8% 11% 5% 29% 7% 3%

Germany Austria Benelux France Brazil Other Europe North America ROW Italy Asia

2 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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voestalpine group

Global leadership in defined market segments

Top European player Worldwide leadership Worldwide leadership Worldwide leadership

Steel Special Steel Profilform Railway Systems Automotive

Top European player

BY 2008/09 Sales 4,329 m€ 3,531 m€ 2,351 m€ 1,147 m€ 889 m€ % of group 36 % 29 % 19 % 9 % 7 % EBIT 522 m€ 55 m€* 325 m€ 132 m€ 28 m€ EBIT% 12.1 % 1.6 %* 13.8 % 11.5 % 3.2 % Sales: 11,625 m€ EBIT: 1,016 m€* EBIT%: 8.7%*

*Negative BÖHLER-UDDEHOLM purchase price allocation effect of 220 m€ included

3 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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voestalpine group

Overview development Business Year 2008/09

• First half of BY 2008/09 with strong demand, high price levels, record figures
• Turnaround of the economic trend in late autumn 2008 with unexpected

dynamics

• Demand in many segments plummeted end of CY 2008, followed by extremely

low order intake in CQ 1, 2009

• Measures taken by voestalpine

Production output continuously adjusted to changing demand Existing cost cutting programs accelerated, additional major cost cutting projects

launched

Reduction of personnel, partial reduction of working hours in all divisions Review of investment programs resulting in significantly reduced CAPEX spending Renegotiation of raw material contracts started Significant working capital reductions

4 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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Division Steel –

Business development

First 9 months of BY 2008/09 on track for new

record figures

Demand decreasing rapidly in last 3 months Stable utilization rate of 70 % currently Order intake till summer 2009 affected by high stock levels Pricing situation stabilized by contract structure No spot market exposure, but short term contracts

down since January 2009

Long term contracts supporting margins Heavy plate – demand and prices deteriorating Cost base significantly reduced Contracts for major input materials settled Long term efficiency project “Future” initiated

Division Steel in figures

Sales

(€m)

EBIT

(€m)

EBIT

(%)

1Q

BY 08/09

1,175 189 16.1 2Q

BY 08/09

1,194 211 17.7 3Q

BY 08/09

1,059 109 10.3 4Q

BY 08/09

901 14 1.5 1Q-4Q

BY 08/09

4,329 522 12.1 1Q-4Q

BY 07/08

3,943 684 17.4 yoy in % +9.8

• 23.7

5 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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Division Special Steel –

Business development

North America weak since beginning 2008, rest of the world doing

well until end of CY 2008

Markets currently very weak in general, energy business and

petrochemical industry slightly better

Utilization rate currently 60 – 65 % Still high stock levels, destocking expected to come to an end

during summer

Prices for special steel additionally affected by decreasing alloy

prices (alloy surcharge pricing mechanism)

One off-effects of ca. 100 m€ from revaluation of alloys

in Q3 and Q4 BY 2008/09

First signs of improvements in China Brazil is expected to stabilize during summer Continued tough environment in Europe and USA expected till

autumn

Division Special Steel in figures

Sales

(€m)

EBIT

(€m)

EBIT

(%)

1Q

BY 08/09

1,017 34 3.3 2Q

BY 08/09

977 79 8.0 3Q

BY 08/09

840

• 4
• 0.5

4Q

BY 08/09

696

• 53
• 7.6

1Q-4Q

BY 08/09

3,531 55 1.6

*)

*) No comparable figures of last year due to first consolidation as of July 2007

6 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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Division Railway Systems –

Business development

Decoupling of railways segment from global downturn

due to extended infrastructure projects (exemption North American Market)

Demand for rails and switches stable on high levels Utilization rate ~100 % Increased price competition Business units wire rod & seamless tubes affected by

economic downturn, earnings under pressure

Solid and stable development of railways business in the

next 12 months expected

Sales

(€m)

EBIT

(€m)

EBIT

(%)

1Q

BY 08/09

631 91 14.4 2Q

BY 08/09

634 91 14.3 3Q

BY 08/09

608 79 13.1 4Q

BY 08/09

479 64 13.3 1Q-4Q

BY 08/09

2,351 325 13.8 1Q-4Q

BY 07/08

2,211 315 14.3 yoy in % +6.3 +3.0

Division Railway Systems in figures

7 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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Division Profilform –

Business development

Demand plummeting in autumn 2008 after very strong

first half BY 2008/09

Very low demand in truck industry, machine building

and construction industry

High bay warehousing projects doing better, but

suffering from credit crunch

Sound business development only in aircraft industry Cost base improving due to Short term steel price development Fast cost cutting measures USA and Brazil comparably doing better than Europe and

Russia

Division Profilform in figures

Sales

(€m)

EBIT

(€m)

EBIT

(%)

1Q

BY 08/09

341 49 14.5 2Q

BY 08/09

349 50 14.5 3Q

BY 08/09

259 20 7.7 4Q

BY 08/09

199 13 6.4 1Q-4Q

BY 08/09

1,147 132 11.5 1Q-4Q

BY 07/08

1,139 159 13.9 yoy in % +0.7

• 16.6

8 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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Division Automotive –

Business development

Significantly reduced global car production since

August 2008 (-35% in Europe Q1 2009 vs. Q1 2008)*

Downturn with dynamics previously unseen Currently positive signals from scrap bonus systems in

Germany and other countries

Current capacity utilization 60 – 70 % Ongoing challenging environment in 2009 expected, 20%

slump in European car production vs. 2008 likely

Can structural overcapacities be solved?

Sales

(€m)

EBIT

(€m)

EBIT

(%)

1Q

BY 08/09

259 18 6.8 2Q

BY 08/09

236 12 5.2 3Q

BY 08/09

207 4 1.7 4Q

BY 08/09

187

• 5
• 2.8

1Q-4Q

BY 08/09

889 28 3.2 1Q-4Q

BY 07/08

948 60 6.4 yoy in %

• 6.2
• 53.5

Division Automotive in figures

*Data by JD Power

voestalpine AG www.voestalpine.com

Financial overview

10 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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voestalpine group

Financial key figures

BY 2007/08 BY 2008/09 Sales

€m

10,481 11,625 EBITDA

€m

1,837 1,724 % of Sales

%

17.5 14.8 EBIT

€m

1,153 1,016 % of Sales

%

11.0 8.7 EBT

€m

980 728 Net Profit

€m

752 612 EPS*

€

4.69 3.41

* Undiluted EPS, based on average number of shares BY 2008/09

11 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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EBIT Development

BY 2008/09 vs. BY 2007/08

2007/08

Price Raw materials Misc.

EBIT 11.0% 1,153 €m 1,016 €m

• 311 €m

EBIT 13.5%

132 €m 123 €m

Mix/ Volume

• 864 €m

EBIT 8.7%

629 €m 78 €m 76 €m

USD- exchange rate Δ ppa

2008/09

Acqui- sitions

12 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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Cash flow statement

• Changes in working capital

Strong Cash release in Q4, BY 2008/09 (~ 550 m€)

• Cash flow from investing activities unusually high because of

Squeeze out of Böhler-Uddeholm AG (~ 350 m€) Final stages of investment program “Linz 2010”

BY 2007/08 BY 2008/09 Cash flow from result €m

1,398 1,239

Changes in working capital €m

• 262

119

Cash flow from operating activities €m

1,136 1,358

Cash flow from investing activities €m

• 4,166
• 1,311

Free Cash flow €m

• 3,030

47

13 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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Gearing ratio

831 635 684 377 526 3,860 3,762 3,571 3,762 4,263 4,212 4,263 4,289 2,882 2,547 2,125 1,853 1,786 92% 88% 18% 15% 32% 34% 83% 47% 88%

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 H1 2008/09 BY 2008/09

Net Debt (€m) Equity (€m) Gearing-Ratio (%)

14 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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voestalpine group

Liquidity situation

80 70 900 1,070 575 720 680

200 400 600 800 1000 1200 1400 1600 Liquidity 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Cash Financial assets

Comfortable liquidity position and balanced maturity profile

Undrawn committed lines*

Liquidity per 31.03.2009 Redemption – Schedule per 31.03.2009

€m *including other financial instruments

15 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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Proactive earnings and cash flow management

Working capital

Price and cost reductions Structural redimensioning of inventories Acceleration of existing CIP programs Synergies from Böhler-Uddeholm acquisition Further efficiency programs launched

Cost cutting programs CAPEX

Böhler-Uddeholm transaction closed per Nov. 2008 Linz 2010 CAPEX program finished L6 CAPEX program trimmed significantly

200 m€ (of 700 m€ ) cash release

• utstanding

Min. 300 m€ annual savings CAPEX cut to

• ca. 600 m€ in

2009/10 (from 1,040 m€)

Clear focus on debt reduction

16 June 2009 Investor Relations03071K410_Roadshow_Pres – 81695be6

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Short term Outlook

General economic development

Inventories down to normal levels in summer expected Step by step improvement of capacity utilization (except. Automotive Division) Slight improvement of overall situation in real economy towards end of 2009

expected

Sustainable economic upward trend not before 2nd half 2010

Financial Situation

Strong cash release from working capital reductions Significant reduction of CAPEX Successful launch of 400 m€ bond

Weak results in next months expected, but overall positive EBIT in BY 2009/10

voestalpine AG www.voestalpine.com

IR Contact Peter Fleischer Head of Investor Relations E-Mail peter.fleischer@voestalpine.com Phone +43/50304/15-9949 Peter Christensen Investor Relations Manager E-Mail peter.christensen@voestalpine.com Phone +43/50304/15-5221

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