FISCAL YEAR 2004/05 Investor Relations June 2005 - - PowerPoint PPT Presentation
FISCAL YEAR 2004/05 Investor Relations June 2005 www.voestalpine.com HIGHLIGHTS 2004/05 All-time high sales of 5.8 bn and EBIT of 553 m (continued operations) Not included: 50 m one-off-costs liquidation Matzner ROCE 15%; EPS 9.44
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Investor Relations June 2005
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All-time high sales of 5.8 €bn and EBIT of 553 €m (continued operations)
Not included: 50 €m one-off-costs liquidation Matzner
ROCE 15%; EPS 9.44 € Flat steel prices up 25% – all-time high production (4.6 mio t) Rail prices up 10%; Wire and seamless tubes up 30%; record volumes Excellent market conditions for sections & tubes Continuing operations of division motion 5.4% EBIT-margin
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Group Figures Sales 5,779 €m (+25%) EBITD 888 €m (+59%) EBIT 553 €m (+127%)
2004/05
Sales 3,087 €m 788 €m 713 €m 1,586 €m EBIT 338 €m 29 €m 83 €m 123 €m EBIT-margin 10.9% 3.7% 11.6% 7.7% Sales/Division 50% 13% 11% 26%
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8% 45% 19% 6% 10.3%
Austria Germany UK Europe North America Employee- shareholding scheme ROW 1.7%
8%
Switzerland 2%
1995
VA Tech 38.5% OIAG Free Float 38.8% 22.7%
2005 Total shareholder return ~20% p.a. over the last 10 years
Average dividend yield 4.6% p.a. Share price performance 150%
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100 200 300 400 500 600 700 95 96 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 in €m CIP TOP
FY 2004/05
savings p.a.
TOP* R4F*** CIP**
Savings per ton compared to 1994 110 €/t
To manage the negative price/cost squeeze in the steel business of ~2% 3 cost cutting programs since 1995 (TOP, CIP, R4F)
*Total Operational Performance **Continuous Improvement Program ***READY4FUTURE
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Flat steel Heavy plates Rails & Switches Seamless tubes Wire Storage systems Sections & Tubes SSC Stamping parts Precision parts
Core competence steelmaking & processing
LW Blanks
Clear focus within divisions on core competences Industry mix leads to risk minimization and cyclical stabilization Synergies within the group are the key to enhanced value Growth opportunities combined with high profitability
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division motion
Van Niftrik Plastic parts and hybrid technology for automotive industry/Netherlands Sales ~40 €m HTI Precision parts for airbags and suspension systems/Germany Sales ~16 €m Vollmer Stamping parts, structural parts and safety segments/Germany Sales ~30 €m
Division Railway Systems
Rail Products Switches producer/USA & Fabrications Sales ~10 €m JV Veekayan Switches, rail services/India & Digvijay Sales ~10 €m
Division Profilform
Nedcon Storage systems/Netherlands Sales ~100 €m
Total acquired sales of 206 €m
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Increasing energy consumption globally (+50% till 2025); oil +2% yoy Expected development in offshore-production: oil +40% | gas +80% Heavy Plate: 2/3 of sales from Energy; Plates for the deepest pipeline worldwide (length 230 km, depth 2,500 m; from Gulf of Mexico to Louisiana) Seamless Tubes: Drill pipes and tubes for the oil & gas industry as well as for Chinese power plants Profilform: Aluminium-plated special tubes for power plant cooling systems (China)
Capacity increase from 350,000 t 2002/03 to 650,000 t 2007/08 in high quality heavy plates
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50 100 150 200 250 FY 98/99 FY 99/00 FY 00/01 FY 01/02 FY 02/03 FY 03/04 FY 04/05 FY 05/06e Index Iron Ore Coke Coal Scrap voestalpine purchase price index
Current trend Iron Ore Coke Coal Scrap Alloys
Raw material price increase
2004/05 2005/06 2% 8% 10% 14% 26% 7% 2% 9% 10% 12% 22% 7% 62% Material costs 67% Material costs Oil Coke Scrap Coal Iron ore Alloys Others
Influence on cost structure
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Current uncertainty due to high inventories about further pricing in steel; long-term contracts minimize downside-risks Stabilization in European infrastructure spendings – Railway Systems will keep on high level Pressure on prices for standard sections & tubes – Profilform's margin slightly reduced Improving situation in division motion due to liquidation Matzner & latest highly profitable acquisitions
EBIT 2005/06 expected again above 500 €m
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26% 24% 15% 7% 11% 17% Construction &
Civil and mechanical engineering Other White Goods Oil Automotive
Sales Breakdown by industry
Sales 3,087.4 (+27.5%) EBIT 337.7 €m (+118.2%) EBIT-margin 10.9%
Investment program Linz 2010
price increase qoq
10 20 30 40 50
4Q 04/05 3Q 04/05 2Q 04/05 1Q 04/05
1Q 2004/05 2Q 2004/05 3Q 2004/05 4Q 2004/05
Automotive Construction White Goods
Flat steel price development
Automotive Construction White Goods Automotive Construction White Goods Automotive Construction White Goods
First stage completed Rebuilding BFA CC6 HDG 3 Colour Coating 2 Second stage - Orders placed for Cold rolling mill HDG 4 (+5) Walking beam furnace
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Automotive markets relatively stable in 2004/05, slight improvement in 2005 expected Subsuppliers still in squeeze position, between high steel prices and over capacities of OEMs Nevertheless operative performance of division on track
New production record in Tailor-Welded Blanks (EBIT-margin: 6.0%) High demand for precision parts (EBIT-margin: 8.4%) Stable demand for pressing and spare parts (EBIT-margin: 4.4%)
12% 84% 1% 3%
Civil and mechanical engineering Other Automotive Construction & constr. subsuppliers
Sales Breakdown by industry
Sales 788 (+12.9%) EBIT 29.4 €m (+68.7%) EBIT-margin 3.7%
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Less demand from OEMs for engineering services and separate
Withdrawal of division motion from the field of engineering services for third parties while maintaining expertise as a foundation for production-related development
Liquidation of Matzner One-off-costs 40 €m Loss in 2004/05 10 €m
Focus on Body-in-White unchanged but further growth mainly in niche production areas with no direct competition to OEMs
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17% 35% 12% 14% 22%
All-time high shipments of 650,000 t in 2004/05 (+10%) Outstanding price level High demand from civil- and mechanical engineering and truck industry in general and from construction in UK & Belgium Still rising demand for storage facilities; integration of Nedcon Concentration of commodity production in Eastern European low-cost-locations
Sales Breakdown by industry
Construction &
Civil and mechanical engineering Other Transport & Storage Automotive
Sales 713.1 (+47.2%) EBIT 82.8 €m (+105.2%) EBIT-margin 11.6%
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7% 5% 14% 12% 4% 58%
Construction Oil Railway Civil Automotive Other
Sales 1,586.4 (+22.0%) EBIT 122.5 €m (+126.0%) EBIT-margin 7.7%
Sales Breakdown by industry
7% 24% 59% 10% 26% 29% 40% 5%
Rails & Switches Demand in Germany still weak, rest of Europe stable, South Africa and Australia booming. Integration
India Seamless Tubes Shipments (+20% yoy) & EBIT (+270% yoy) driven by high energy demand Wire Further concentration top quality segments with high pricing power
Quality High Low Bearing steel Spring steel
2004/05 2000/01
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Record high in sales and profitability Working capital increase driven by purchase prices and capacity increase IFRS 3 adjustments – depreciation of Goodwill 18 €m Discontinued operations from liquidation of Matzner Positive impact from new tax rate and group taxation (24.9% vs 30.1% yoy)
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€m Discontinued operations +0,9% 22,755 22,955 Employees 436.1 1,853.2 141.2 5.3 243.7 12.1 557.9 4,616.3 2003/04 €m €m +30% 564.9 Investments +17% +165% +127% +59% +25% Change 2,166.3 373.5 9.6 552.5 15.4 887.7 5,779.1 2004/05 €m Profit for the period*
(continued operations)
Equity % of Sales €m EBIT % of Sales €m EBITD €m Sales
*acc. IFRS incl. Minorities
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218.8
576.5 144.8 431.7 2003/04 20.1
550.6
744.2 2004/05 €m Free Cash Flow €m Cash Flow from investing activities €m Cash Flow from operating activities €m Changes in working capital €m Cash Flow from result
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252 624 831 635 684 1,530 1,564 1,786 1,853 2,166 34% 16% 40% 47% 32%
2000/01 2001/02 2002/03 2003/04 2004/05
Net Debt (€m) Equity (€m) Net Debt/Equity Ratio (%)
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1,873 1,972 2,131 2,632 3,129 3,132 3,696 15.0% 7.8% 7.1% 6.1% 12.1% 7.8% 9.0% 1997/98 1998/99 1999/00 2000/01 2002/03 2003/04 2004/05 Capital employed (€m) ROCE in %
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4.9% 1.25 Bonus 0.35 47.49 3.38 2003/04 4.4% 1.50** Bonus 0.60** 54.79 9.44 2004/05 €m Dividend Yield
(average share price)
€m Dividend €m Book value per share €m EPS*
*IFRS basis on net profit from continuing operations **Subject to approval at AGM
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FY 2003/04 FY 2004/05
Price/mix Net effect Raw materials Misc.
EBIT 244 €m 553 €m +608 €m EBIT 5.3% 9.6%
Volume
+114 €m
Acquisition
+1 €m
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1 9 9 5 2 0 0 4 / 0 5
Investment Dividend pay-out Σ 4 €bn Σ 475 €m 32% Gearing 23% 5,779 +135% 553 +150% 2,166 +130%
(€m)
Sales 2,456 EBIT 221 Equity 944
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IR Contact Wolfgang Lemberger E-Mail wolfgang.lemberger@voestalpine.com Phone +43 / 732 / 6585-9949
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SALES GROWTH Internal/External VALUE – ENHANCING ROCE ≥ 12% PROFITABILITY EBITD ≥ 14% ATTRACTIVE DIVIDEND Dividend Yield ~4% STABILITY Gearing-Ratio < 70%
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Unique location as high-quality producer within 500 km radius New automotive, building and household capacities are concentrated in the core region
Steel-capacity increase mainly dedicated to CEE
Automotive White Goods Construction
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