BUSINESS YEAR 2004/05 -1 st HALF Investor Relations November 2004 - - PowerPoint PPT Presentation

www.voestalpine.com

BUSINESS YEAR 2004/05 -1st HALF

Investor Relations November 2004

www.voestalpine.com

COMPANY OVERVIEW

3

Group Figures: Sales 2,734.5 €m (+21%) EBITD 333.5 €m (+14%) EBIT 187.1 €m (+27%) Sales 1,400 €m 808 €m 388 €m 320 €m EBIT 112 €m 45 €m 8 €m 42 €m EBIT-margin 8.0% 5.6% 2.2% 13.2% Sales/Division 48% 28% 13% 11%

BY 2004/05 – 1st Half

4

UPDATED RAW MATERIAL SITUATION

Poland

Coal Coke

Danube / Rhein

CZ Ukraine

Iron Ore Coal

Brazil / Iron Ore Australia / Coal South Africa / Iron Ore China / Coke

Danube

Scrap Coal Coke

AUT

Scrap Iron Ore

80 130 180 230 280 BY 98/99 BY 99/00 BY 00/01 BY 01/02 BY 02/03 BY 03/04 BY 04/05 (1Q 04/05) Index

iron ore coke coal scrap

voestalpine purchase price index

Negative cost impact ~270 - 300 €m in 2004/05 Advantage of Austrian iron ore supply Expected price increase for 2005: up to 20%

in mt BY 2004/05 transport by rail transport by vessel

5

STEEL PRICE & MARKET DEVELOPMENT BY 2004/05 – 1st HALF

Strong price increase in the first two quarters, mainly driven by white goods, engineering and construction demand Further growth of sales in CEE countries

• 10%

0% 10% 20% 30% 2Q 01/02 3Q 01/02 4Q 01/02 1Q 02/03 2Q 02/03 3Q 02/03 4Q 02/03 1Q 03/04 2Q 03/04 3Q 03/04 4Q 03/04 1Q 04/05 2Q 04/05 3Q 04/05

Automotive Household appliance Building industry BY

6

OUTLOOK

Rising raw material prices in Q4 Further increase in steel prices in 2005 Higher than expected shipments due to smooth start-up of blast furnace A Positive impact from wire and seamless tubes Pressure on division motion due to rising steel prices Further outstanding performance of Division Profilform

New all-time-high results in three of four divisions 1H BY 2004/05 result will be at least matched in 2H

www.voestalpine.com

DIVISION STEEL

8

DIVISION STEEL CURRENT SITUATION

Ongoing high demand for flat steel products, including heavy plate Further upward trend of prices for all products Highly improved product-mix (HDG +22% in 1H 2004/05) Shipments will exceed last year's figure (4.2 mt BY 2003/04) despite of BF A upgrading

8.1 93.7 14.1 163.5 1,160.4 1H 2003/04 8.0 111.6 13.4 187.7 1,399.8 1H 2004/05 % of Sales €m EBIT % of Sales €m EBITD €m Sales

9

DIVISION STEEL LINZ 2010 – BLAST FURNACE A

Start of operation: October 26, 2004 Duration of revamping: July 15 – October 26 105 days Capacity increase: From 6,200 tpd to 7,800 tpd 2005/06 production scenario

Pig iron Crude steel

4.4 mt ~5.0 mt ~4.3 mt 3.6 mt 2003/04 2005/06

www.voestalpine.com

DIVISION RAILWAY SYSTEMS

11

DIVISION RAILWAY SYSTEMS CURRENT SITUATION

Weak market for rails & switches in Germany and some CEE countries Compensated by expanded deliveries to South-Africa, Australia and the US Risen raw material costs offset by price increases Strong demand for wire rod and seamless tubes

5.1 33.6 10.8 72.1 664.2 1H 2003/04 5.6 45.1 9.9 80.0 807.6 1H 2004/05 % of Sales €m EBIT % of Sales €m EBITD €m Sales

12

DIVISION RAILWAY SYSTEMS GROWTH IN NORTH AMERICA

Meridian

Successful integration and turnaround of

• perations

Acquisition of Rail Products & Fabrications

Production of switches & parts Asset-deal to enhance VAE Nortrak's strategic position in North America Improved service position for the West Coast region

Seattle Seattle Richmond Richmond Birmingham Birmingham Chicago Chicago Cheyenne Cheyenne Pueblo Pueblo Newton Newton Winnipeg Winnipeg

N°1 in the fast growing US switches market with a market share of 52%

www.voestalpine.com

division motion

14

division motion CURRENT SITUATION

Whole business still influenced by pressure on automotive markets Good development in tailor welded blanks and precision tubes Recovery of results in 2H expected Still difficult situation in engineering

3.0 10.7 9.3 32.7 352.3 1H 2003/04 2.2 8.4 7.7 29.9 388.2 1H 2004/05 % of Sales €m EBIT % of Sales €m EBITD €m Sales

15

division motion HIGHLIGHTS

Van Niftrik Acquisition

Full integration in motion's existing production units, profitability above group level

New record production in tailor welded blanks: 7.4 million blanks (compared to 6.3 million last year) in 1H 2004/05 Precision tubes Rotec

Excellent business with existing customers Asset-deal in Canada improves position in North America Further reduction of work force at Matzner-Engineering from 450 to 360 employees

www.voestalpine.com

DIVISION PROFILFORM

17

DIVISION PROFILFORM CURRENT SITUATION

Top profitability within voestalpine Group Strong demand for hollow sections and profiles Leading position in booming industrial markets

Building industry UK European truck manufacturing Agricultural machinery

Integration of Nedcon fully in-line

7.6 16.8 13.3 29.3 221.2 1H 2003/04 13.2 42.2 16.9 54.0 319.9 1H 2004/05 % of Sales €m EBIT % of Sales €m EBITD €m Sales

18

DIVISION PROFILFORM

• SALES -
• EBIT -

1H 2003/04 1H 2004/05

221 320

99 1H 2003/04 1H 2004/05

17 42

25

Further processing of tubes & sections Consolidation of Nedcon (1 month) Steel price increases passed to customers Pricing policy Cost management, CIP Promising start of new products and new activities

www.voestalpine.com

FINANCIAL REVIEW

20

CONSOLIDATED OVERVIEW

+5% 22,934 24,167 Employees 193.6 1,829.4 87.4 6.5 146.8 12.9 292.1 2,263.2 1H 2003/04 €m €m +56% 301.3 Investment +8% +21% +27% +14% +21% Change 1,966.1 105.8 6.8 187.1 12.2 333.5 2,734.5 1H 2004/05 €m Net Profit* Equity % of Sales €m EBIT % of Sales €m EBITD €m Sales

* acc. IFRS incl. minorities

21

CASH FLOW – 1H 2004/05

66

• 103

169

• 57

226 1H 2003/04

• 78
• 301

223

• 54

277 1H 2004/05 €m Free Cash Flow €m Net cash Flow from investments €m Cash Flow from operations €m Change in Working Capital €m Cash Flow from result

22

NET DEBT & EQUITY – GEARING

252 624 831 635 790 1530 1564 1786 1873 1966 34% 16% 40% 47% 40%

2000/01 2001/02 2002/03 2003/04 1H 2004/05

Net Debt (€m) Equity (€m) Net Debt/Equity Ratio (%)

23

voestalpine VALUE DRIVERS

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

www.voestalpine.com Reuters VOES.VI Bloomberg VOE AV

IR Contact Wolfgang Lemberger E-Mail wolfgang.lemberger@voestalpine.com Phone +43 / 70 / 6585-9949

www.voestalpine.com

BUSINESS YEAR 2004/05 -1st HALF

Investor Relations November 2004

26

Unique location as high-quality producer within 500 km radius New automotive, building and household capacities are concentrated in the core region

• f voestalpine

Steel-capacity increase mainly dedicated to CEE

USP LOCATION: FUTURE MARKET CENTRAL & EASTERN EUROPE

Automotive Household appliance Building industry

voestalpine

BACKUP

27

BACKUP division motion RESTRUCTURING MATZNER

Staff reduction

Primarily in overhead-functions, no operational impact Work force reduction: 90 employees (~20% of total staff)

Renunciation of extra salary (Christmas payments) Reduction in working hours

Temporarily reduction up to 5 hours per week

Optimization of administration / Size adjustment of production capacity