Financial Year 2007/08 Investor Relations June 2008 voestalpine AG - - PowerPoint PPT Presentation

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Financial Year 2007/08 Investor Relations June 2008 voestalpine AG - - PowerPoint PPT Presentation

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Financial Year 2007/08 Investor Relations June 2008 voestalpine AG www.voestalpine.com Highlights in FY 2007/08 Division Steel New record figures New dimension in terms of sales and earnings Growth track record successfully

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SLIDE 1

voestalpine AG www.voestalpine.com

Investor Relations June 2008

Financial Year 2007/08

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SLIDE 2

2 June 2008 Investor Relations

| | voestalpine AG

Highlights in FY 2007/08

  • New record figures

New dimension in terms of sales and earnings Growth track record successfully prolonged

  • Growth strategy & Portfolio optimization continued

‘Linz 2010’ implemented, ‘L6’ on track Successful acquisitions in processing divisions Portfolio optimization in automotive division

  • Successful integration of Böhler-Uddeholm

Squeeze out procedure initiated Financing of transaction largely contracted

€ 1 bn hybrid bond launched Successful placement of other financing instruments

Synergies of 123 m€ definied

Division Profilform Division Automotive Division Railway Systems Division Special Steel Division Steel

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SLIDE 3

3 June 2008 Investor Relations

| | voestalpine AG

Solid strategy – Record figures

Steel

Top European player

Special Steel

Worldwide leadership

Railway Systems

Worldwide leadership

Automotive

Top European player

Profilform

European leadership

Sales EBITDA EBIT

1Q 2007/08 1,931 m€ 407 m€ 315 m€ 2Q 2007/08 excl. ppa* 3Q 2007/08 excl. ppa* 4Q 2007/08 excl. ppa* 2,764 m€ 2,753 m€ 3,033 m€ 545 m€ 502 m€ 515 m€ 422 m€ 378 m€ 388 m€

Q1-4Q 2007/08 excl. ppa* 10,481 m€ 1,969 m€ 1,503 m€

ppa* Implications

  • 132 m€
  • 350 m€

Q1-Q4 2007/08 incl. ppa* 10,481 m€ 1,837 m€ 1,153 m€

*) preliminary purchase price allocation

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SLIDE 4

4 June 2008 Investor Relations

| | voestalpine AG 2,000 4,000 6,000 8,000 10,000 12,000 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 500 1,000 1,500 2,000

Growth track record

S

3,354

Sales (€m) EBIT (€m)

,

160 10,481 1,153** 1,503*

*) excl. ppa Böhler-Uddeholm **) incl. ppa Böhler-Uddeholm

EBIT-margin 4.6 % 4.8 % 5.3 % 9.6 % 11.6 % 14.6 % 11.0 %

  • excl. ppa

14.3 %

E

5 year CAGR 20% 5 y e a r C A G R 4 6 %

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SLIDE 5

5 June 2008 Investor Relations

| | voestalpine AG

Division Steel – Business development

Division Steel 2007/08

Sales

(€m)

EBIT

(€m)

EBIT

(%)

1Q

FY 07/08

965 187 19.4 2Q

FY 07/08

950 182 19.2 3Q

FY 07/08

949 140 14.7 4Q

FY 07/08

1,079 175 16.3 1Q-4Q

FY 07/08

3,943 684 17.4 1Q-4Q

FY 06/07

3,680 544 14.8 yoy in % +7.1 +25.7

High demand and steel price increase set off higher raw

material prices

Stable growth in automotive, white goods and building

industry, outstanding demand from energy sector continues

Stocks back to normal after peak in CQ 3 / 4 2007 Imports on low levels

Growth strategy continued

€ 2 bn capex program “Linz 2010” implemented, “L6“ capex

program (€ 1 bn) launched

New Steel Service Center in Poland in full operation, ground

breaking in Romania

Black Sea Region – steel mill under detailed investigation

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SLIDE 6

6 June 2008 Investor Relations

| | voestalpine AG

2007 new record year for BÖHLER-UDDEHOLM

group

Significant increase in sales and earnings Continued high demand in all BÖHLER-UDDEHOLM

business segments and core markets globally

Emphasis on energy and oilfield equipment,

mechanical engineering and aircraft industry

Order intake unchanged on high level Increased volumes in all business units, full

utilisation of all core facilities

Capacity extensions in Austria, Germany, Brazil

and China

BÖHLER-UDDEHOLM Business development

(€m)

CY 2006 CY 2007 yoy in % Sales 3,090 3,637 +18% EBIT 376 476 +27% EBIT% 12.2% 13.1% Net income 248 326 +31% Employees 14,324 15,217 +6%

BÖHLER-UDDEHOLM 2007* According to published figures

  • f BÖHLER-UDDEHOLM

* stand alone figures

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SLIDE 7

7 June 2008 Investor Relations

| | voestalpine AG

Division Special Steel – Business development

Sales

(€m)

EBIT

(€m)

EBIT

(%)

2Q

FY 07/08

908 123 13.5 3Q

FY 07/08

908 124 13.6 4Q

FY 07/08

943 109 11.6 2Q-4Q

FY 07/08

2,759 356 12.9

Division Special Steel in figures* Pre purchase price allocation

Start of consolidation July 1, 2007 Squeeze out procedure initiated

>90% majority since March, 25, 2008

Excellent business development Figures in voestalpine group accounting affected by

purchase price allocation (ppa)

Growth strategy of BÖHLER-UDDEHOLM within

voestalpine group continued

Largest capex program in BÖHLER-UDDEHOLM-history

launched in December 2007

Capacity extensions especially at forging and remelting

facilities

* BÖHLER-UDDEHOLM as consolidated in voestalpine (before ppa)

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SLIDE 8

8 June 2008 Investor Relations

| | voestalpine AG

Division Special Steel - Purchase Price Allocation Annual impact on EBIT and EBITDA

2 €m 24 €m 45 €m 67 €m 116 €m 225 €m 350 €m 33 €m 132 €m

50 100 150 200 250 300 350 400 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14

(in €m)

EBIT Impact EBITDA Impact

Reduction of goodwill and impairment risk on balance sheet Valuation of all assets and liabilities of BÖHLER-

UDDEHOLM (inventories, fixed assets, brands, …) at fair value by independent expert

EBIT and EBITDA impact from depreciation and short term

effects (inventories)

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9 June 2008 Investor Relations

| | voestalpine AG

Division Railway Systems – Business development

Sales

(€m)

EBIT

(€m)

EBIT

(%)

1Q

FY 07/08

585 94 16.0 2Q

FY 07/08

544 83 15.4 3Q

FY 07/08

514 72 13.9 4Q

FY 07/08

568 66 11.7 1Q-4Q

FY 07/08

2,211 315 14.3 1Q-4Q

FY 06/07

2,056 338 16.4 yoy in % +7.5

  • 6.8

Division Railway Systems 2007/08

Unbowed high demand for rails and switches due to

infrastructure boom in Europe and overseas markets

Full utilisation of rail production facilities Continuous productivity improvements to increase volumes Steady growth of switches business via acquisitions

Solid demand and strong prices in wire business

High quality strategy supporting pricing power Acquisition ‘Finsterwalde’ showing significant synergies and

contributing to prosperity

Raw material price increases immediately put through to

customers

Changing environment in seamless tubes business in 2007

Supply / demand less balanced due to new market entries Higher competition, weak US $ and rising raw material cost

affecting profitability

Since beginning of 2008 demand and prices improving again

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SLIDE 10

10 June 2008 Investor Relations

| | voestalpine AG

Division Profilform – Business development

Sales

(€m)

EBIT

(€m)

EBIT

(%)

1Q

FY 07/08

281 38 13.6 2Q

FY 07/08

274 39 14.4 3Q

FY 07/08

268 40 14.9 4Q

FY 07/08

316 42 13.0 1Q-4Q

FY 07/08

1,139 159 13.9 1Q-4Q

FY 06/07

970 146 15.0 yoy in % +17.4 +8.9

Division Profilform 2007/08

Business performance in special sections and storage

technology driven by outstanding high and stable demand

All customer segments showing pre-eminent performance

in particular in CEE region

Rising steel prices passed on to markets

Capacity expansion programs at several production sites

leading to increased volumes, sales and earnings

International growth track prolonged by successful

acquisitions

Meincol / Brasil - market entry in South America Sharon / USA - expanding activities in North America Arcada / Russia and Profilafroid / France very well on track

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SLIDE 11

11 June 2008 Investor Relations

| | voestalpine AG

Division Automotive – Business development

Sales

(€m)

EBIT

(€m)

EBIT

(%)

1Q

FY 07/08

231 14 5.8 2Q

FY 07/08

219 15 6.9 3Q

FY 07/08

229 15 6.7 4Q

FY 07/08

269 16 6.1 1Q-4Q

FY 07/08

948 60 6.4 1Q-4Q

FY 06/07

714 41 5.8 yoy in % +32.8 +46.3

Division Automotive 2007/08

Upturn of worldwide automotive business in 2007

Car production: +5% globally, +6% in Europe

Increasing demand for body and safety parts, stable

development of laser welded blanks and precision parts

Margins further improved

Internal cost cutting programs and consolidation

Portfolio optimization and organic growth

Focus on core competences and profitability Divestment of non-core activities

Environment stays challenging

Rising prices for input material and steel Ongoing cost pressure from OEMs Further consolidation in automotive suppliers business

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SLIDE 12

voestalpine AG www.voestalpine.com

Financial overview

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SLIDE 13

13 June 2008 Investor Relations

| | voestalpine AG

Consolidated overview

FY 2006/07 FY 2007/08 YoY in % FY*** 2007/08 (excl. ppa) Sales

€m

6,944 10,481 50.9 % 10,481 EBITDA

€m

1,359 1,837 35.2 % 1,969 % of Sales

%

19.6 17.5 18.8 EBIT

€m

1,011 1,153 14.0 % 1,503 % of Sales

%

14.6 11.0 14.3 EBT

€m

976 980 0.4 % 1,330 Net Profit

€m

765 752

  • 1.7 %

1,004 EPS**

€

4.76 4.69 6.13 Investments*

€m

908 3,910 Depreciation

€m

347 684 97.1 % 466

* Fixed assets and acquisitions ** Undiluted EPS, based on average number of shares FY 2007/08 *** pro forma figures

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14 June 2008 Investor Relations

| | voestalpine AG

EBIT Development FY 2007/08 vs FY 2006/07

2006/07 2007/08 EBIT 14.6% 1,011 €m 1,503 €m +289 €m

  • 199 €m
  • 58 €m

+104 €m 1,153 €m EBIT 11.0%

  • 350 €m

+356 €m

Price Raw materials Misc. Mix/ Volume Acquisition Böhler- Uddeholm ppa

EBIT* 14.3%

*) pro forma figures excl. ppa

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SLIDE 15

15 June 2008 Investor Relations

| | voestalpine AG

Cash flow FY 2007/08 vs FY 2006/07

FY 2006/07 FY 2007/08 Cash flow from result €m 1,119 1,398 Changes in working capital €m

  • 149
  • 262

Cash flow from operating activities €m 970 1,136 Cash flow from investing activities €m

  • 606
  • 4,166

Free Cash flow €m 364

  • 3,030
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16 June 2008 Investor Relations

| | voestalpine AG

Gearing ratio

252 625 831 635 684 526 377 3,572 4,289 2,882 2,547 2,125 1,853 1,786 1,564 1,530 16% 18% 83% 32% 34% 47% 40% 15% 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Net Debt (€m) Equity (€m) Gearing-Ratio (%)

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17 June 2008 Investor Relations

| | voestalpine AG

voestalpine Group - Outlook 2008

  • Up to now no significant impact of ‘Sub prime crisis’ on voestalpine and its core markets
  • Dynamic market development
  • Good visibility generally until end of 2008
  • Demand situation solid on sound level
  • Strong order intake in all business units
  • Global markets generally in good shape (exemption North America)
  • Steel prices rising further significantly in the course of 2008

Driven by unexpected high price increases of raw material Increased input prices to be fully passed through to markets Shortage of raw materials in H2 2008 ?

  • Development of processing divisions partly affected by availability and pricing of steel, but

prices most likely to be passed through as well

  • Main risks for the next 12 months
  • Will US-economy start to recover in H2 2008 ?
  • Effects of ‘Sub prime crisis’ on real economy already overcome ?
  • Exchange rate developments and oil price are a permanent issue of uncertainty

Last year’s EBIT-level of € 1.5 bn (before ppa) benchmark for 2008/09

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voestalpine AG www.voestalpine.com

IR Contact Peter Fleischer E-Mail peter.fleischer@voestalpine.com Phone +43/50304/15-9949 Reuters VOES.VI Bloomberg VOE AV