DEBT INVESTOR UPDATE BUSINESS YEAR 2019/ 20 voestalpine AG - - PowerPoint PPT Presentation

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DEBT INVESTOR UPDATE BUSINESS YEAR 2019/ 20 voestalpine AG - - PowerPoint PPT Presentation

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DEBT INVESTOR UPDATE BUSINESS YEAR 2019/ 20 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 2019/ 20

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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 positionsin its business units » The group focuses on most demanding product and system solutions based on steel and other metalsin technology-intensive industries and niches » Clear focuson strategically in the long run most promising sectors like mobility and energy » Long-term relationshipswith customers, suppliers and R&D-institutions as key drivers for innovation

June 2020 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 2020

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voestalpine GROUP

SHAREHOLDER STRUCTURE

4 Debt Investor Relations

Major individual shareholders (asof 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, 2020)

June 2020

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| | voestalpine AG

  • 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 Q3/ 2019 Q1/ 2020 voestalpine AG Steel-Peer-Group

  • 30
  • 20
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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 Q2/ 2019 Q3/ 2019 Q4/ 2019 Q1/ 2020 voestalpine Group Steel Division High Performance Metals Division Metal Engineering Division Metal Forming Division

voestalpine GROUP

SOLID PERFORMANCE IN A CYCLICAL BUSINESS

5 Debt Investor Relations

EBIT margin (%) by divisions

Solid performance 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 2020

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| | voestalpine AG

» Reduced utilization in many production facilities of voestalpine

» Shut down of blast furnace number 5 in Linz » Output of EAFs of HPM Division adjusted to demand » Reduced output at many industrial plants (automotive components, roll-forming, etc.) according to demand

» 10,000 employees in short time work in Austria, 5,000 in similar systems in other countries and regions of the world » Restructuring of businesses, where we expect the downturn to be structural and not only cyclical and COVID-driven

June 2020 6 Debt Investor Relations

voestalpine GROUP

COVID-19 UPDATE, 03.06.2020

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| | voestalpine AG

» Automotive industry has restarted car production at end of April / beginning of May in Europe and North America » Our Chinese business is up and running on levels prior to COVID-19 – not only in automotive » Railway S ystems business is continuing to perform well even during spread of COVID-19 » Warehouse and Rack Solutions business faces additional push from e-commerce after COVID lockdown on top of already strong demand before

June 2020 7 Debt Investor Relations

voestalpine GROUP

COVID-19 UPDATE, 03.06.2020

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voestalpine GROUP

BUSINESS ENVIRONMENT BY 2019/ 20

June 2020 8 Debt Investor Relations

» Slowing economic momentum over first nine months of BY 2019/ 20, recovery started in last business quarter but ended abruptly by COVID-19 spread

» T rade war impacted growth on global scale, Europe and China harmed considerably » Automotive industry stagnated in North America, slowed in Europe and slumped in China » Energy industry suffered from low oil and gas prices and trade barriers in the US, additional collapse of the oil-price in the last quarter » Railways business continued to do well in most regions of the world over the entire business year 2019/ 20

» Steel industry faced margin pressure from rising raw material cost, in particular iron ore, in a shrinking demand environment in Europe » Spread of COVID-19 pandemic in the last quarter 2019/ 20

» Chinese business heavily affected in February but quick recovery since then » European and American business heavily affected since mid of March

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| | voestalpine AG

voestalpine GROUP

DEVELOPMENTS BY 2019/ 20

June 2020 9 Debt Investor Relations

» In this environment the focus of the management of voestalpine was clearly put on cost- and working capital management, cash generation and deleveraging of the balance sheet » What have we achieved?

» EBITDA close to EUR 1.2 billion » Free Cash Flow close to EUR 600 million, Cash Flow from operations above EUR 1.3 billion » Working Capital release of around EUR 430 million » Capex reduced to less than EUR 800 million (for next BY 2020/ 21 down to EUR 600 million) » Headcount reduced by more than 4% » Comfortable liquidity of EUR 1.7 billion per end of March 2020 » Gearing ratio at 67% by end of March 2020. A move in the right direction after high levels during BY 2019/ 20, also caused by the call of the hybrid bond (EUR 500 million change from equity to debt), change in IFRS accounting standards (EUR 440 million additional debt) and dividend payment in BY 2019/ 20 (EUR 220 million equity reduction

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voestalpine GROUP

NON RECURRING ITEMS BY 2019/ 20

June 2020 10 Debt Investor Relations

» We conducted a strategic analysis of the changed global economic environment and its impact on our major business areas » The outcome forced us to adapt some long-term assumptions in specific business areas » Consequently, we had to revalue certain assets of those business areas and therefor recorded impairments » Additionally we had to build provisions for restructuring and other risks » Non recurring items included in earnings of voestalpine Group in BY 2019/ 20:

» EBITDA: EUR -85 million: provision for restructuring and other risk » EBIT: EUR -485 million: EUR 400 million impairments + EBITDA effects

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BUSINESS DEVELOPMENT BY 2019/ 20

June 2020 11 Debt Investor Relations

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voestalpine GROUP

COMPANY S TRUCTURE AND MARKET POSITION

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S teel Division High Performance Metals Division Metal Engineering Division Metal Forming Division

Global quality leadership Global leadership Global leadership Global leadership Global quality leadership in highest quality steel strip and market leader in heavy plate and foundry productsfor the most sophisticated energy applications. Worldwide leadership in tool steel, leading position in high- speed steel, aircraft, special forgings and powder

  • technology. Innovation leader in

additive manufacturing. Global market leader in railway infrastructure; European market leader in specially treated wire; and leading position in seamless tubes for special applications and high-quality full welding solutions. Global market leader in defined high-tech nicheswith highest quality demands supplying metal processing solutionswith a global network for generating maximum customer value.

35% 22% 22% 21%

More information about voestalpine‘sbusinessmodels and factsis 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 2019/20)

June 2020

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| | voestalpine AG

» Overall difficult year for European steel industry » Slowing demand from automotive and mechanical engineering industry, sluggish energy- and white goods industries; only building and construction industry robust » Margin pressure due to rising raw material prices, in particular iron ore » Difficult market conditions for HBI in the 2nd half » Impairments at HBI plant and foundry group in 2nd half

  • f BY 2019/ 20

» Improving market dynamics in last quarter of BY 2019/ 20 stopped by spread of COVID-19 » One small blast furnace shut down in March to align production output to sudden slump of demand

STEEL DIVISION BUSINESS DEVELOPMENT BY 2019/ 20

June 2020 13

€ m Q1 19/ 20 Q2 19/ 20 Q3 19/ 20 Q4 19/ 20 BY 19/ 20 BY 18/ 19 Delta in % Revenue 1,182 1,139 1,098 1,151 4,571 4,887

  • 6.5

EBITDA 151 110 97 137 494 653

  • 24.4

EBITDA-% 12.7% 9.6% 8.8% 11.9% 10.8% 13.4% EBIT 61 20

  • 193

12

  • 101

319

  • 131.5

EBIT-% 5.1% 1.8%

  • 17.6%

1.0%

  • 2.2%

6.5%

Debt Investor Relations

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| | voestalpine AG

» Tool Steel facing challenging market environment over entire BY 2019/ 20 » Special Materials for aerospace and oil & gas-industry with solid development in first nine month of the business year, but slowdown in 4th quarter » Europe most difficult market, restructuring of German special Steel plant Buderus » North American market muted and difficult to access after sec. 232 » Quick recovery in China after COVID-19 lockdown » EAF steelwork production is fairly flexible, output aligned to demand

HIGH PERFORMANCE METALS DIVISION BUSINESS DEVELOPMENT BY 2019/ 20

June 2020 14

€ m Q1 19/ 20 Q2 19/ 20 Q3 19/ 20 Q4 19/ 20 BY 19/ 20 BY 18/ 19 Delta in % Revenue 778 723 676 715 2,891 3,136

  • 7.8

EBITDA 99 78 7 92 276 435

  • 36.5

EBITDA-% 12.8% 10.8% 1.0% 12.8% 9.5% 13.9% EBIT 57 35

  • 48

32 77 280

  • 72.6

EBIT-% 7.3% 4.9%

  • 7.1%

4.5% 2.6% 8.9%

Debt Investor Relations

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» Railway Systems unchanged positive

» Sound development of T urnout S ystems in most regions » Rails segment with good demand in Europe » Successful acquisitions in France & China

» Mixed picture in industrial Systems

» T ubulars (OCTG) impacted by softening oil & gas sector and US-tariffs up from 2H BY 2019/ 20, additional slump in oil- price at the end of the business year » Wire business confronted by lower demand from automotive and price pressure from EAF competition » S table development in Welding Consumables, acquisition of Selco makes us a full service provider in the welding business

» COVID-19 with fairly limited impact on railway systems

MET AL ENGINEERING DIVISION BUSINESS DEVELOPMENT BY 2019/ 20

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€ m Q1 19/ 20 Q2 19/ 20 Q3 19/ 20 Q4 19/ 20 BY 19/ 20 BY 18/ 19 Delta in % Revenue 779 759 708 697 2,942 3,147

  • 6.5

EBITDA 90 82 57 72 301 369

  • 18.4

EBITDA-% 11.6% 10.8% 8.0% 10.4% 10.2% 11.7% EBIT 45 31

  • 3
  • 40

33 202

  • 83.7

EBIT-% 5.8% 4.1%

  • 0.5%
  • 5.7%

1.1% 6.4%

Debt Investor Relations

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| | voestalpine AG

» Declining car production over most of BY 2019/ 20 affecting Automotive Components business

» Structural improvements in US-plant in Cartersville » Quick recovery of production and sales after COVID lockdown in China in the 4th quarter » Complete shutdown of the industry at end of March in Europe, South Africa and North America

» Mixed picture in T ubes & Sections business

» Construction, machinery, material handling, renewable energy and commercial vehicle segments solid over most of the business year; passenger car-related business challenging

» Precision S trip somewhat lower after excellent past years » Warehouse and Rack Solutions faces additional push from e- commerce after COVID lockdown on top of already strong demand over entire BY 2019/ 20

MET AL FORMING DIVISION BUSINESS DEVELOPMENT BY 2019/ 20

June 2020 16 Debt Investor Relations

€ m Q1 19/ 20 Q2 19/ 20 Q3 19/ 20 Q4 19/ 20 BY 19/ 20 BY 18/ 19 Delta in % Revenue 738 716 667 718 2,838 2,937

  • 3.4

EBITDA 58 49 32 64 203 213

  • 4.7

EBITDA-% 7.9% 6.8% 4.8% 9.0% 7.2% 7.3% EBIT 24 14

  • 44

15 9 94

  • 90.6

EBIT-% 3.3% 1.9%

  • 6.6%

2.0% 0.3% 3.2%

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KEY FINANCIALS BY 2019/ 20

June 2020 17 Debt Investor Relations

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voestalpine GROUP FINANCIAL OVERVIEW

BY 2018/ 19

2018/ 04/ 01-2019/ 03/ 31

BY 2019/ 20

2019/ 04/ 01-2020/ 03/ 31 Delta %

Revenue

13,561 12,717

  • 6.2

EBITDA

1,565 1,182

  • 24.5

EBITDA margin

11.5% 9.3%

EBIT

779

  • 89
  • 111.4

EBIT margin

5.7%

  • 0.7 %

Profit before tax

646

  • 230
  • 135.7

Profit after tax*

459

  • 216
  • 147.2

EPS – earnings per share (euros)

2.31

  • 1.24
  • 153.7

In millions of euros June 2020 Debt Investor Relations 18

* Before deduction of non-controlling interestsand interest on hybrid capital.

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| | voestalpine AG

voestalpine GROUP DEVELOPMENT CASH FLOW

BY 2018/ 19

2018/ 04/ 01-2019/ 03/ 31

BY 2019/ 20

2019/ 04/ 01-2020/ 03/ 31

Cash flow from results

1,304 870

Changes in working capital

  • 137

434

Cash flow from operating activities

1,167 1,304

Cash flow from investing activities

  • 1,020
  • 716

Free cash flow

147 588

In millions of euros June 2020 Debt Investor Relations 19

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voestalpine GROUP DEVELOPEMENT GEARING RATIO

20 Debt Investor Relations

Figures in millionsof euros

June 2020

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 3,775 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 5,615 47% 34% 32% 15% 18% 83% 88% 71% 58% 54% 45% 46% 58% 55% 53% 46% 47% 67% 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 2019/20 Net Debt (€ m) Equity (€ m) Gearing ratio (%)

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voestalpine GROUP DEVELOPEMENT NET DEBT / EBITDA

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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 3,775 517 558 888 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 1,182

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 3.2

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 2019/20

Net Debt (€ m)

EBITDA Net Debt / EBITDA

Debt Investor Relations

Figures in millionsof euros

June 2020

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voestalpine GROUP FINANCING PORTFOLIO

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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 assetsor financial covenants.

13% 26% 14% 5% 12% 15% 15%

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

Instrument Volume € m Maturity Schuldscheindarlehen 693 various Senior Bonds 1,400 2021, 2024, 2026 Syndicated Loan (RCF) 300 2024 Committed credit lines (undrawn) 780 mainly 2024 Export financing facilities 635 various Bilateral loan facilities 816 various Other financing facilities 800 Various

Figures in millionsof eurosas of 2020/ 03/ 31

June 2020

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| | voestalpine AG 795 159 687 90 428 2480 121 780

Liquidity 2020/ 21 2021/ 22 2022/ 23 2023/ 24 further

voestalpine GROUP LIQUIDITY AND REDEMPTION SCHEDULE

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1,696

LIQUIDITY REDEMPTION

Figures in millionsof eurosas of 2020/ 03/ 31

Cash Financial assets Committed lines

Debt Investor Relations June 2020

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voestalpine GROUP OUTLOOK BY 2020/ 21

June 2020 24 Investor Relations

» First impacts of COVID-19 already in Q4 of BY 2019/ 20 » „Lockdown“ currently still in force in many regions of the world » Final effects not yet assessable, in Q1 BY 2020/ 21 strong economic contraction so far » We are currently assuming a recovery after summer 2020 » The management puts the focus on cost- and working capital management as well as cash flow generation also in BY 2020/ 21 » Anticipating a volatile economic environment, we expect for the BY 2020/ 21 an EBITDA in a range of between EUR 600 million and EUR 1 billion

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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

26 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 2020