BUSINESS YEAR 2019/20 Press Conference: June 3, 2020 Welcome! - - PowerPoint PPT Presentation

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BUSINESS YEAR 2019/20

Press Conference: June 3, 2020 Welcome!

voestalpine AG | |

06/03/2020 2 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/20 ENVIRONMENT & HIGHLIGHTS

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BUSINESS YEAR 2019/2020 ECONOMIC ENVIRONMENT

06/03/2020 3 Press Conference: Business Year 2019/20

Europe: Weak performance of manufacturing industry USMCA: Economic downturn during the business year Brazil: Solid development China/Asia: Steep downturn in growth due to trade wars

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BUSINESS YEAR 2019/20

CHALLENGING ECONOMIC ENVIRONMENT

External Factors Consequences/Measures » Global economic downturn / global trade wars (incl. U.S. Section 232 tariffs) » Decrease in automotive production » Rising raw material prices in the face of low steel prices » Covid-19 pandemic » Impairment losses » Programs to cut costs and boost efficiency » Reduction in investments » Cash flow optimization and inventory reductions

06/03/2020 Press Conference: Business Year 2019/20 4

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BUSINESS YEAR 2019/20 KEY FIGURES

» Revenue: EUR 12.7 billion (–6.2%) » EBITDA: EUR 1.2 billion (–24.5%) » EBIT: EUR –89 million (–111.4%) » Total number of employees: 49,700 (–4.3%) » Dividend: EUR 0.20* (–81.8%)

*) As proposed to the Annual General Meeting

06/03/2020 5 Press Conference: Business Year 2019/20

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BUSINESS YEAR 2019/20 STEPS TAKEN SHOW RESULTS

» At EUR 1.2 billion, operating result (EBITDA) is clearly positive » Cash flows from operating activities rise to EUR 1.3 billion (+11.8%) » Free cash flow: EUR 588 million » Successful reduction in working capital by EUR 434 million » Available liquidity: EUR 1.7 billion

06/03/2020 6 Press Conference: Business Year 2019/20

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06/03/2020 7 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/20 FINANCIAL KEY FIGURES

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Earnings per share 2.31

• 1.24
• 153.7

Dividend per share 1.10 0.20**)

• 81.8

Employees (full-time equivalents) 51,907 49,682

• 4.3

BUSINESS YEAR 2019/20 OVERVIEW OF KEY FIGURES

In millions of euros BY 2018/19 BY 2019/20 Change (in %) Revenue 13,561 12,717

• 6.2

Operating result (EBITDA) 1,565 1,182

• 24.5

Profit from operations (EBIT) 779

• 89
• 111.4

Profit before tax (EBT) 646

• 230
• 135.7

Profit after tax (surplus/loss for the year)*) 459

• 216
• 147.2

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**) As proposed to the Annual General Meeting

*) Before deduction of non-controlling interests and interest on hybrid capital

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BUSINESS YEAR 2019/20 DEVELOPMENT OF THE GEARING RATIO

3037 2713 2586 2259 2421 2978 3080 3221 2995 3125 3775 4262 4691 4836 5075 5261 5115 5652 6060 6554 6710 5615 71% 58% 53% 45% 46% 58% 54% 53% 46% 47% 67%

0% 10% 20% 30% 40% 50% 60% 70% 80% 1000 2000 3000 4000 5000 6000 7000 8000

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

Net financial debt (in EUR million) Equity (in EUR million) Gearing ratio in %

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HIGHLIGHTS FROM THE DIVISIONS

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STEEL DIVISION BUSINESS YEAR 2019/20

» Decline in steel prices, simultaneous increase in raw materials prices » Price/cost ratio offset in part through long-term customerrelationships and countermeasures » Currently: Action package for overcoming Covid-19 crisis economically » New technology: “Smart” steel strips

» Steel with integrated conductive paths

» Start-up of world’s largest pilot plant for “green” hydrogen

06/03/2020 11 Press Conference: Business Year 2019/20

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HIGH PERFORMANCE METALS DIVISION BUSINESS YEAR 2019/20

» Oil & natural gas / aerospace: positive performance through Q3; decline from Q4 » Decline in demand for tool steel » Visible stabilizing of market in China » Metal additive manufacturing expands globally » Construction of new special steel plant in Kapfenberg, Austria, to continue until 2021

06/03/2020 12 Press Conference: Business Year 2019/20

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METAL ENGINEERING DIVISION BUSINESS YEAR 2019/20

» Railway Systems » Solid order levels (esp. in Europe, China as well as Australia, India) » Second turnout system joint venture in China (entry into mass transit sector) » Successful localization in France also » Novelty worldwide: low-maintenance tracks » Industrial Systems » Decline in wire and seamless tube market » Welding technology stabilizes (full-service provider through acquisition of welding machine manufacturer)

06/03/2020 13 Press Conference: Business Year 2019/20

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METAL FORMING DIVISION BUSINESS YEAR 2019/20

» Weak economy leads to lower revenue particularly in automotive sector » Continued robust demand for automated storage technology/ e-commerce » Example of innovation: Laser- welded multi-material special strip products for use in electronic components

06/03/2020 14 Press Conference: Business Year 2019/20

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OUTLOOK BUSINESS YEAR 2020/21

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voestalpine GROUP COVID-19 ECONOMIC CRISIS

» Employees’ health has highest priority

» Strict Group-wide hygiene and distancing rules » Incremental return to “normal operations”

» Meltdown in demand in key customer segments

» Rapid recovery in China » Railway systems and storage systems are stable segments

» Capacity reductions and temporary production shutdowns » Short time work: 10,400 employees in Austria, about 3,000 in Germany

» Internationally, 2,400 employees subject to schemes similar to short time work

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OUTLOOK BUSINESS YEAR 2020/21 KEY EARNINGS FACTORS

Market environment Measures to stabilize earnings » Economic meltdown/lockdown in Q1 of business year 2020/21 » Improvement likely in 2nd half of business year 2020/21 » Economic environment remains volatile » Cost and working capital management » Cash flow generation » Investments less than depreciation (about EUR 600 million) » 2020/21 Outlook: EBITDA between EUR 600 million and EUR 1 billion

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QUESTIONS WELCOMED FROM JOURNALISTS VIA THE FOLLOWING CHANNELS

06/03/2020 Press Conference: Business Year 2019/20 18

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BUSINESS YEAR 2019/20

Press Conference: June 3, 2020