DEBT INVESTOR UPDATE BUSINESS YEAR 2018/19 voestalpine AG - - PowerPoint PPT Presentation

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DEBT INVESTOR UPDATE BUSINESS YEAR 2018/19 voestalpine AG - - PowerPoint PPT Presentation

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DEBT INVESTOR UPDATE BUSINESS YEAR 2018/19 voestalpine AG www.voestalpine.com voestalpine GROUP OVERVIEW voestalpine is a leading technology and capital goods group with combined material and processing expertise It is holding global

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www.voestalpine.com voestalpine AG

DEBT INVESTOR UPDATE

BUSINESS YEAR 2018/19

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| | voestalpine AG

» voestalpine is a leading technology and capital goods group with combined material and processing expertise » It is holding global top positions in its business units » The group focuses on most demanding product and system solutions based on steel and other metals in technology-intensive industries and niches » Clear focus on strategically in the long run most promising sectors like mobility and energy » Long-term relationships with customers, suppliers and R&D-institutions as key drivers for innovation

June 2019 2 Debt Investor Relations

voestalpine GROUP

OVERVIEW

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| | voestalpine AG

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One Group – 500 sites – 50 countries – 5 continents

Debt Investor Relations

voestalpine GROUP

GLOBAL FOOTPRINT

INCREASING NON-EU-BUSINESS, MOBILITY-SECTOR STABLE

June 2019

34% (34%) 11%(11%) 3% (3%) 15% (15%) 9% (9%) 9% (9%) 5% (5%) 14% (14%)

Automotive Railway systems Aerospace Energy Building/Construction Mechanical engineering White goods/Consumer goods Other 65% (66%) 16% (14%) 8% (8%) 8% (8%) 3% (4%) European Union USMCA Asia Rest of world South America

Revenue by industries - Business year 2018/19 Revenue by regions - Business year 2018/19

MOBILITY: 48% (48%) (figures 2017/18) (figures 2017/18)

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| | voestalpine AG

voestalpine GROUP

CORPORATE RESPONSIBILITY

4 Debt Investor Relations June 2019

Ökonomie

ENVIRONMENT » Decarbonisation of steel making » H2Future » SuSteel » Climate Protection » LCA management » Energy management » Water management » Recycling and waste management SOCIETY » Supporting local communities » Anti-corruption and compliance trainings » Occupational health & safety programs and certification » Fair working conditions » Training and apprentices » Equal treatment » Employee participation HUMAN RIGHTS » No child or forced labour » No discrimination » Freedom of association / collective bargaining ECONOMY » Ethical corporate management » Sustainable Supply Chain Management

More information on our website under http://www.voestalpine.com/group/en/group/corporate-responsibility/

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voestalpine GROUP

MANAGEMENT BOARD

5 Debt Investor Relations

Wolfgang Eder * Chairman of the Board (CEO) Joined voestalpine in 1978, member of the Board since 1995 Robert Ottel Member of the Board, Chief Financial Officer (CFO) Joined voestalpine in 1997, member of the Board since 2004 Herbert Eibensteiner ** Member of the Board, Head of Steel Division Joined voestalpine in 1989, member of the Board since 2012 Franz Rotter Member of the Board, Head of High Performance Metals Division Joined voestalpine in 1981, member of the Board since 2011 Franz Kainersdorfer Member of the Board, Head of Metal Engineering Division Joined voestalpine in 1996, member of the Board since 2011 Peter Schwab Member of the Board, Head of Metal Forming Division Joined voestalpine in 1993, member of the Board since 2014

All members of the Board have long-term engagement and experience in voestalpine Group!

  • Mr. Eder will leave the board as of July 3, 2019
  • Mr. Eibensteiner will succeed Mr. Eder as CEO as of July 3, 2019

and Mr. Hubert Zajicek will succed Mr. Eibensteiner as head of the Steel Division with effect from July 4, 2019

June 2019

* **

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| | voestalpine AG

voestalpine GROUP

SHAREHOLDER STRUCTURE

6 Debt Investor Relations

Major individual shareholders (as of March 31, 2018)

Raiffeisenlandesbank Oberösterreich Invest GmbH & Co KG < 15 % voestalpine employee shareholding scheme 14.8 % Oberbank AG 8.1 %

Ownership structure according to regions (Figures as of March 31, 2019)

June 2019

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  • 30
  • 20
  • 10

10 20 30 Q3/2008 Q1/2009 Q3/2009 Q1/2010 Q3/2010 Q1/2011 Q3/2011 Q1/2012 Q3/2012 Q1/2013 Q3/2013 Q1/2014 Q3/2014 Q1/2015 Q3/2015 Q1/2016 Q3/2016 Q1/2017 Q3/2017 Q1/2018 Q3/2018 Q1/2019 voestalpine AG Steel-Peer-Group

  • 30
  • 20
  • 10

10 20 30 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 voestalpine Group Steel Division High Performance Metals Division Metal Engineering Division Metal Forming Division

voestalpine GROUP

SOLID EARNINGS IN A CYCLICAL BUSINESS

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EBIT margin (%) by divisions

Solid earnings – only one quarter with negative EBIT since IPO 1995 – due to... ... a diversified portfolio ... a long value chain ... positioning in various market segments ... focus on innovation, service and cost efficiency ... partial backward integration

EBIT margin (%) voestalpine AG vs. European competitors

Lower volatility in earnings and higher profitability than Steel-Peer competitors!

(excluding impairments) (excluding impairments)

June 2019

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voestalpine GROUP

BUSINESS DEVELOPMENT 2018/19

8 Debt Investor Relations June 2019

» Strong start into BY 2018/19 but slowing economic momentum in H2 2018/19

» Europe & China harmed by escalating global trade conflicts and slowing automotive industry » US-economy with sustained upswing, however less euphoric sentiment recently » Brazil with moderate recovery in BY 2018/19

» Performance in BY 2018/19 negatively affected by one-offs, solid development in Q4 2018/19 despite slowing economy

» Earnings – mainly in Q2 & Q3 – impacted by blast furnace repairs, provision in Heavy Plate & start up costs at US- automotive components plant » Downward trend in tool steel (Europe, China) triggered by global trade tensions » Cost burden from rising raw material prices in Q4 2018/19 already, but full impact yet to come

» Efficiency improvement programs in all 4 divisions intensified as response to challenging conditions

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| | voestalpine AG

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voestalpine GROUP

FINANCIAL OVERVIEW

June 2019

BY 2017/18

2017/04/01-2018/03/31

BY 2018/19

2018/04/01-2019/03/31 Delta %

Revenue

12,898 13,561 +5.1

EBITDA

1,954 1,565

  • 19.9

EBITDA margin

15.2% 11.5%

EBIT

1,180 779

  • 33.9

EBIT margin

9.1% 5.7 %

Profit before tax

1,043 646

  • 38.1

Profit after tax*

825** 459

  • 44.4

EPS – earnings per share (euros)

4.40 2.31

  • 47.5

In millions of euros

* Before deduction of non-controlling interests and interest on hybrid capital. ** BY 2017/18 adjusted retrospectively.

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voestalpine GROUP

COMPANY STRUCTURE AND MARKET POSITION

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Steel Division High Performance Metals Division Metal Engineering Division Metal Forming Division

Worldwide quality leadership Global leadership Global leadership Global leadership Global quality leadership in highest quality steel strip and global market leader in heavy plate for the most sophisticated applications as well as casings for large turbines. Worldwide leadership in tool steel, leading position in high- speed steel and special forgings. Worldwide market leader in turnout technology; European market leader in rails and specially treated wire; and leading position in seamless tubes for special applications and high quality welding consumables. Global market leader in defined niches supplying high quality metal processing solutions with a global network and service.

35% 22% 22% 21%

More information about voestalpine‘s business models and facts is available online: http://www.voestalpine.com/group/static/sites/group/.downloads/de/aktie/praesenta tion/2018-19-business-model-and-facts-voestalpine-group.pdf

voestalpine Group (Revenue in BY 2018/19)

June 2019

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11 Debt Investor Relations

STEEL DIVISION

BUSINESS SEGMENTS AND PRODUCTS

Sheet Heavy Plate Steel & Service Center Hot Briquetted Iron (HBI) Foundry European TOP player Global TOP player European TOP player GlobalTOP player Global LEADERSHIP

  • Highest quality sheet for

automotive, white goods, electrical, construction and mechanical engineering industries

  • Processed, coated and

galvaniced sheet

  • High-quality heavy plate

for the energy market (pipelines, oil & gas platforms)

  • High-strength and wear-

resistant steel grades for steel and vehicle engineering sectors and chemical industries

  • Individual preprocessing
  • f flat products and cut

heavy plates

  • 3-dimensional processing
  • Production of finished

parts & components

  • Individual logistic

solutions

  • Production of premium Hot

Briquetted Iron (HBI)

  • Superior feedstock for high-

quality steel production

  • Partly used at voestalpine

production sites

  • Partly sold to high-quality

steel producers

  • Casting components for

the energy industry such as turbines June 2019

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| | voestalpine AG

12 Debt Investor Relations

STEEL DIVISION

BUSINESS DEVELOPMENT BY 2018/19

June 2019

» Steel Division with high volatility in earnings throughout BY 2018/19

» Profitability in Q2 impacted by (scheduled) major blast furnace repairs, in Q3 by cartel provision in Heavy Plate

» Increasingly difficult environment in H2 2018/19

» Fading momentum in automotive and consumer goods » Still robust order intake in building & mechanical engineering » Solid activities in energy business, however drop in deep-sea pipeline investments recently » Ongoing strong steel imports in Europe – above all from Russia & Turkey – despite safeguard measures » First negative effects from soaring iron ore prices in Q4 » Improving capacity utilization at HBI-plant in Texas in H2

€m Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 BY 18/19 BY 17/18 Delta in % Revenue 1,276 1,139 1,175 1,297 4,887 4,773 2.4 EBITDA 224 119 106 205 653 908

  • 28.1

EBITDA-% 17.5% 10.4% 9.0% 15.8% 13.4% 19.0% EBIT 145 37 19 118 319 593

  • 46.2

EBIT-% 11.4% 3.2% 1.6% 9.1% 6.5% 12.4%

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HIGH PERFORMANCE METALS DIVISION

BUSINESS SEGMENTS AND PRODUCTS

Stainless Steel 89% Tool Steel 8% High Speed Steel 1% Nickel alloys 2%

Carbon Steel 91% Engineering Steel 7% Speciality Steel 2%

High Performance Metals Production High Performance Metals Distribution & Value Added Service Special Forgings Global LEADERSHIP Global LEADERSHIP European TOP player

  • Production of tool steels, high-speed

steel, valve steel, powder-metallurgical steel, high alloyed steels for sophisticated metallurgical areas in

  • il and gas, energy equipment,

aerospace and automotive industries

  • Eight production sites in Austria,

Germany, Sweden, USA and Brazil

  • Global distribution and service

network with 150 warehouse and service sites in 50 countries

  • Very well established brands creating

strong customer loyalty

  • Providing of Value Added Services

like local warehousing, machining, heat treatment, coating, application consulting etc.

  • Closed-die forged

components with focus on aerospace, commercial vehicles and energy equipment June 2019

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HIGH PERFORMANCE METALS DIVISION

BUSINESS DEVELOPMENT BY 2018/19

June 2019

» After positive business conditions in H1 2018/19, fading dynamics in particular regions & sectors

» Advancing protectionism as major driver for margin pressure » Decreasing order intake in consumer goods and automotive sectors in Europe & China » In contrast, stable development in North America, improving sentiment in Brazil

» Activities in aviation sector unchanged strong » Sentiment in oil & gas overall positive » New special steel plant in Kapfenberg well on track

€m Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 BY 18/19 BY 17/18 Delta in % Revenue 780 766 751 839 3,136 2,918 7.5 EBITDA 129 101 90 116 435 454

  • 4.2

EBITDA-% 16.6% 13.1% 11.9% 13.8% 13.9% 15.6% EBIT 92 64 52 73 280 298

  • 5.9

EBIT-% 11.8% 8.3% 6.9% 8.6% 8.9% 10.2%

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| | voestalpine AG

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METAL ENGINEERING DIVISION

BUSINESS SEMGENTS AND PRODUCTS

Rail Technology Turnout Systems Wire Technology Tubulars Welding Consumables European TOP player Global LEADERSHIP European TOP player Global TOP player Global TOP player

  • Innovative rail

manufacturer of highest quality products (120m head-hardened rails)

  • “Plug and Play” turnout

systems for high-speed railways, mass transit and heavy-haul railways

  • High tech drawn wire for

automotive and construction industry

  • Fastening and material

handling technology

  • High-tech seamless tubes

for oil and gas industries

  • Special tubes for various

industrial applications

  • Specialist for medium-

and high-grade alloy welding filler materials

RAILWAY SYSTEMS INDUSTRIAL SYSTEMS

June 2019

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16 Debt Investor Relations

METAL ENGINEERING DIVISION

BUSINESS DEVELOPMENT BY 2018/19

June 2019

» Railway Systems business with mixed development

» Margin impact from raw materials on rails after slight market recovery in early BY 2018/19 » Unchanged strong performance in turnouts bolstered by strong conditions in China, the US, Australia, Brazil and recently also EU

» Market development and protective US-tariffs dampening performance of Industrial Systems business

» Easing automotive industry affecting order intake in wire » Strong seamless tubes deliveries to North America, but margins impacted by US-duties » Focus in welding consumables on further operational performance improvement

€m Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 BY 18/19 BY 17/18 Delta in % Revenue 800 748 771 828 3,147 2,990 5.3 EBITDA 99 85 78 107 369 372

  • 0.8

EBITDA-% 12.3% 11.4% 10.2% 12.9% 11.7% 12.4% EBIT 56 44 37 65 202 191 5.8 EBIT-% 7.0% 5.9% 4.8% 7.8% 6.4% 6.4%

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17 Debt Investor Relations

METAL FORMING DIVISION

BUSINESS SEGMENTS AND PRODUCTS

Tubes & Sections Automotive Components Precision Strip Material Handling Global LEADERSHIP European TOP player Technology & market LEADERSHIP EuropeanTOP player

  • Innovative and high-quality

tubes, sections, and precision steel tube products

  • Innovative and high-quality

automotive components for the automobile industry

  • Cold stamping, hot forming, body

panels and tailored blanks

  • Cold rolled stainless steel strips with a

high degree of precision and excellent surface quality

  • High-sophisticated solutions in

the areas of high-bay warehouses and racking systems June 2019

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18 Debt Investor Relations

METAL FORMING DIVISION

BUSINESS DEVELOPMENT BY 2018/19

June 2019

» Automotive Components business significantly down in H2 2018/19

» Car sales in Europe heavily impacted by WLTP after summer » Massive start-up cost overrun in US-automotive component plant Cartersville

» Sentiment in Tubes & Sections on average level

» Solid order intake from construction, commercial & agricultural vehicle industries in Europe » Continuation of step by step recovery in Brazil, USA with positive momentum in building & aviation sectors

» Precision strip with increasing competition in Europe & China, but still with healthy demand situation » Ongoing strong project activities in Warehouse & Rack Solutions

€m Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 BY 18/19 BY 17/18 Delta in % Revenue 748 697 698 794 2,937 2,743 7.1 EBITDA 84 68 1 60 213 325

  • 34.4

EBITDA-% 11.3% 9.8% 0.2% 7.5% 7.3% 11.9% EBIT 56 39

  • 29

28 94 213

  • 55.9

EBIT-% 7.5% 5.6%

  • 4.1%

3.5% 3.2% 7.8%

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voestalpine GROUP

OUTLOOK BY 2019/20

June 2019

» Determining factors for development of voestalpine Group in BY 2019/20

» Change of global trade structures due to growing protectionism » Further trends in raw material prices, above all iron ore (including CO2 pricing) » Consequences of new emission test (RDE) and future mobility concepts on car sales and production » Impact of BREXIT on European economy » Further improvements at US-plants as main internal challenge

» Despite increasing political & economic uncertainties, management works hard to keep EBITDA for BY 2019/20 stable in comparison to BY 2018/19

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www.voestalpine.com voestalpine AG

KEY FINANCIALS

BUSINESS YEAR 2018/19

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voestalpine GROUP DEVELOPEMENT GEARING RATIO

21 Debt Investor Relations

Figures in millions of euros

June 2019

831 635 684 377 526 3,572 3,762 3,037 2,713 2,586 2,259 2,421 2,978 3,080 3,221 2,995 1,786 1,853 2,125 2,547 2,882 4,289 4,263 4,262 4,691 4,836 5,075 5,262 5,115 5,652 6,060 6,554 6,710

47% 34% 32% 15% 18% 83% 88% 71% 58% 54% 45% 46% 58% 55% 53% 46% 47%

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Net Debt (€m) Equity (€m) Gearing ratio (%)

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voestalpine GROUP DEVELOPEMENT NET DEBT / EBITDA

22

831 635 684 377 526 3,572 3,762 3,037 2,713 2,586 2,259 2,421 2,978 3,080 3,221 2,995 3,125 517 558 888 1,079 1,359 1,837 1,710 1,004 1,606 1,302 1,431 1,374 1,530 1,583 1,541 1,954 1,565

1.6 1.1 0.8 0.3 0.4 1.9 2.2 3.0 1.7 2.0 1.6 1.8 1.9 1.9 2.1 1.5 2.0

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Net Debt (€m)

EBITDA Net Debt / EBITDA

Debt Investor Relations

Figures in millions of euros

June 2019

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voestalpine GROUP DEVELOPEMENT FFO AND EBIT

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444 432 744 846 1,119 1,398 1,239 734 1,195 994 1,097 1,166 1,176 1,168 1,249 1,622 1,362 210 244 553 724 1,011 1,153 989 352 985 704 854 788 886 889 823 1,180 779

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

FFO EBIT

Debt Investor Relations

Figures in millions of euros

June 2019

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voestalpine GROUP FINANCING PORTFOLIO

24 Debt Investor Relations

The financing strategy of voestalpine focuses on a well balanced financial structure using a broad range of financing instruments! The documentation is in line with investment grade standards and contains no pledges of assets or financial covenants.

17% 18% 14% 6% 17% 18% 10%

Schuldscheindarlehen Senior Bonds Committed Credit Lines (undrawn) Syndicated Loan Export Financing Facilities Other Financing Facilities Hybrid Bond

Instrument Volume €m Maturity Schuldscheindarlehen 859 various Senior Bonds 900 2021, 2024 Syndicated Loan 300 2020 Committed credit lines (undrawn) 700 mainly 2022 Export financing facilities 855 various Other financing facilities 890 various Hybrid Bond 2013 500 perpetual

Figures in millions of euros as of 2019/03/31

June 2019

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| | voestalpine AG

486 664 157 680 83 420 1387 233 700 Liquidity 2019/20 2020/21 2021/22 2022/23 2023/24 further

voestalpine GROUP LIQUIDITY AND REDEMPTION SCHEDULE

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1,419

LIQUIDITY REDEMPTION

Figures in millions of euros as of 2019/03/31

Cash Financial assets Committed lines

Debt Investor Relations June 2019

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| | voestalpine AG

50 100 150 200 250 300 350 400 450 500 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 voestalpine Steel Peers Non-Steel Bond Comparables iBOXX Non. Fin. BBB

voestalpine GROUP SECONDARY MARKET BOND SPREADS

26 Debt Investor Relations

Z-Spread (bps)

Stable development of secondary market bond spreads and far less volatility compared to steel peers

June 2019

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www.voestalpine.com voestalpine AG

DEBT INVESTOR RELATIONS

Günther Pastl

  • T. +43/50304/15-3830

guenther.pastl@voestalpine.com Daniel Huber

  • T. +43/50304/15-2928

daniel.d.huber@voestalpine.com

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voestalpine GROUP DISCLAIMER

28 Debt Investor Relations

These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of,

  • r be relied on in connection with, any contract or investment decision in relation to any securities.

These materials contain forward-looking statements based on the currently held beliefs and assumptions of the management of voestalpine AG, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of voestalpine AG, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. voestalpine AG disclaims any obligation to update these forward- looking statements to reflect future events or developments.

June 2019