business year 2016/17 1st quarter - voestalpine · 2018-08-04 · august 2016 investor relations ....

voestalpine AG www.voestalpine.com voestalpine AG

Business Year 2016/17 1st Quarter Investor Relations August 2016

voestalpine AG | |

voestalpine Group Overview

August 2016 2 Investor Relations

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

voestalpine - a leading technology and capital goods group

European or global top 3 player in all business units

voestalpine AG | | Investor Relations

voestalpine Group Global footprint

August 2016 3

One Group – 500 sites – 50 countries – 5 continents

Revenue by industries (Business year 2015/16)

Revenue by regions (Business year 2015/16)

MOBILITY: 48%

Diagramm1

Automotive

Railway systems

Aerospace

Energy

Mechanical Engineering

Building/Construction

White goods/Consumer goods

Other

As percentage of Group revenue

0.32

0.13

0.03

0.16

0.09

0.09

0.05

0.13

Tabelle1


Automotive32%

Railway systems13%

Aerospace3%

Energy16%

Mechanical Engineering9%

Building/Construction9%

White goods/Consumer goods5%

Other13%

100%

Diagramm1

European Union

NAFTA

Asia

Rest of world

South America


0.7

0.11

0.08

0.08

0.03

Tabelle1


European Union70%

NAFTA11%

Asia8%

Rest of world8%

South America3%

100%

voestalpine AG | |

voestalpine Group Investing in voestalpine shares


Continuous dividend payment since IPO in 1995 – average dividend yield 3.8%

voestalpine, a listed company for more than 20 years – total shareholder return since IPO 732 % (per March 31, 2016)

Proven solid business model - leading market positions in major business segments based on innovative product solutions

Limitation of dependence on “classic” steel cycle because of consistent focus on high-quality “downstream” niche products No negative net profit since IPO – not even during financial crisis Reduced volatility of earnings due to sound business model with

broad diversification of products to both, regions and industries Strong long-term growth perspectives in downstream business Leading European position in efficiency & profitability

Strong focus on creation of sustainable shareholder value Dividend per share (in €)

EPS – earnings per share (in €)

voestalpine AG | |

voestalpine Group Strategic principles


Non-EU Regions > 40%

EU < 60%

Processing ~75%

Steel ~25%

2020-Targets Steel as sole material base, broad use of alternative materials in processing

activities (Aluminium, Titanium, …) Downstream activities as drivers of further expansion

Consistent extension of the value chain towards attractive end customer segments

Growth focus in markets outside Europe (NAFTA, Asia) Industry segments with highest technology and quality demand as

preferred partners Intensive orientation towards digitalization and “Industrie 4.0” Technology and quality leadership in products and services Strong customer orientation – permanent cost and efficiency management –

continuous process optimization

Diagramm1

EU

Rest of World

Spalte1

60

40

Tabelle1

Spalte1

EU60

Rest of World40

Ziehen Sie zum Ändern der Größe des Diagrammdatenbereichs die untere rechte Ecke des Bereichs.

Diagramm1

Steel

Processing

Spalte1

25

75

Tabelle1

Spalte1

Steel25

Processing75


voestalpine Group Business development Q1 BY 2016/17

August 2016 6

Economic & geopolitical challenges weighing on global economic developments

Continuation of moderate economic growth in Europe despite uncertainties in many respects

Automotive and aerospace industries with excellent development, railway infrastructure on solid demand level, energy - esp. oil/gas - unchanged weak

Slowing dynamics in US and Canada

Partly due to collateral effects of ongoing weakness in oil & gas industry

Private consumption still strong

Recession in Brazil further deepened, Russia weak, India improving

Growth trend in China despite mitigation of economic momentum still intact

Demand for voestalpine products unchanged strong (railway equipment, automotive components, tool steel for consumer goods)


voestalpine Group Quarterly figures Q1 BY 2016/17 - reported

August 2016 7

€m Q1 15/16 Q2 15/16 Q3 15/16 Q4 15/16 Q1 16/17 Delta in %

Sales 3,002 2,785 2,594 2,688 2,772 -7.6

EBITDA 527 366 315 376 334 -36.6

EBITDA-% 17.5% 13.1% 12.2% 14.0% 12.0%

EBIT 368 207 152 162 168 -54.5

EBIT-% 12.3% 7.4% 5.9% 6.0% 6.0%

voestalpine AG | |

voestalpine Group one-off-effects on EBIT-level


Changes of consolidation in Seamless Tubes and Turnout System units in BY 2015/16 According to IFRS-regulations sale & purchase of shares:

Sale: Sale at market value, difference to book value effective in Q1 Purchase: Purchase at market value, dis- closure of hidden reserves for 100% of assets via purchase price allocation Asset Impairment: Change in economic environment in Oil and Gas-industry lead to asset impairment in Seamless Tubes business in Q4

131.5

-6.3 ppa -6.2 ppa

-5.8 ppa -3.9 ppa -38.8

Asset Impairment

in €m

BY 2015/16 74.4 €m

Q1 Q2 Q3 Q4 Q1 BY 2016/17


voestalpine Group Quarterly figures Q1 BY 2016/17 – clean (excl. one-offs)

August 2016 9

€m Q1 15/16 Q2 15/16 Q3 15/16 Q4 15/16 Q1 16/17 Delta in %

Sales 3,002 2,785 2,594 2,688 2,772 -7.6

EBITDA 389 366 315 376 334 -14.2

EBITDA-% 13.0% 13.1% 12.2% 14.0% 12.0%

EBIT 237 213 158 206 172 -27.6

EBIT-% 7.9% 7.6% 6.1% 7.7% 6.2%


Steel Division Business development Q1 BY 2016/17

August 2016 10

€m Q1

15/16

Q2

15/16

Q3

15/16

Q4

15/16

Q1

16/17

Delta

in %

Sales 1,061 930 844 919 909 -14.3

EBITDA 134 119 107 119 87 -35.0

EBITDA-% 12.6% 12.8% 12.6% 12.9% 9.6%

EBIT 75 58 41 46 21 -71.8

EBIT-% 7.0% 6.2% 4.9% 5.0% 2.3%

Subdued earnings performance in Q1 2016/17 as expected (and announced earlier)

Tremendous volatility of European Steel spot market prices triggered by developments in China

Due to contract business, steel price movements at voestalpine Steel Division show lower volatility in general and are lagging spot market price trends

Demand situation in European core markets unchanged solid, in particular automotive industry stable at high level

One-offs negatively impacting operating results by more than 20 €m in Q1 2016/17 Ramp-up of HBI-plant in Texas/USA

Reduced output of blast furnace 5 in Linz, Austria due to coal injection optimization


Special Steel Division Business development Q1 BY 2016/17

August 2016 11

€m Q1

15/16

Q2

15/16

Q3

15/16

Q4

15/16

Q1

16/17

Delta

in %

Sales 709 660 616 666 667 -5.9

EBITDA 100 86 74 104 99 -0.7

EBITDA-% 14.1% 13.1% 12.0% 15.6% 14.9%

EBIT 65 53 41 69 63 -2.8

EBIT-% 9.2% 8.0% 6.6% 10.4% 9.5%

Solid market environment in tool steel, primarily from automotive and consumer goods industries

Subdued dynamics in European mechanical engineering industry

Excellent performance of special alloys for aircraft industry

Unchanged pressure in oil & gas sector globally

Value Added Services Segment continuously expanding

New technology center for additive manufacturing (3D-printing) in Düsseldorf, Germany


€m Q1

15/16

Q2

15/16

Q3

15/16

Q4

15/16

Q1

16/17

Delta

in %

Sales 774 751 688 637 680 -12.1

EBITDA 236 100 90 84 88 -62.9

EBITDA Clean 110 100 90 84 88 -20.1

EBITDA-% 30.5% 13.3% 13.1% 13.2% 12.9%

EBITDA-% Clean 14.2% 13.3% 13.1% 13.2% 12.9%

EBIT 197 61 52 5 50 -74.8

EBIT Clean 77 68 58 49 54 -30.2

EBIT-% 25.5% 8.1% 7.6% 0.7% 7.3%

EBIT-% Clean 9.9% 9.0% 8.5% 7.7% 7.9%

Metal Engineering Division Business development Q1 BY 2016/17

August 2016 12

Earnings in Q1 2015/16 affected by positive one-offs from changes of consolidation

Solid business environment in railway infrastructure Investments in European railway market on high level Solid demand situation in China Slowing dynamics in North-America & Mid-East

On-going challenging conditions in oil & gas sector (seamless tubes) Extremely low level of US-rig counts Comparable better volume-demand in Mid-East but prices under

heavy pressure Strong automotive sector supporting Wire Technology

New wire rolling mill in start-up phase Positive impact from restructuring in Welding Consumables


Metal Forming Division Business development Q1 BY 2016/17

August 2016 13

€m Q1

15/16

Q2

15/16

Q3

15/16

Q4

15/16

Q1

16/17

Delta

in %

Sales 566 541 543 575 616 +8.9

EBITDA 69 69 67 85 80 +15.4

EBITDA-% 12.3% 12.8% 12.4% 14.8% 13.0%

EBIT 46 45 43 60 55 +19.7

EBIT-% 8.1% 8.4% 7.9% 10.5% 9.0%

Continuing positive development in Automotive Components business Increasing car registrations in Europe, still good demand of European

transplants in US

Due to tax incentives Chinese car market again on solid level after weakness mid CY 2015

Significant expansion of global presence successfully on track

Demand in Tubes & Sections business with regional disparities Improved order intake in European core markets and specific

segments in US

Extremely challenging market environment in Brazil

Sound development of Precision Strip business Unchanged healthy demand in Warehouse & Rack Solutions

business


Financial overview Q1 BY 2016/17

voestalpine AG | |

voestalpine Group Financial overview

August 2016 15

Q1 BY 2015/16

01.04.2015 – 30.06.2015

Q1 BY 2016/17

01.04.2016 – 30.06.2016 Delta (%)

Q1 BY 2015/16*

01.04.2015 – 30.06.2015

Q1 BY 2016/17

01.04.2016 – 30.06.2016 Delta (%)

Sales €m 3,002 2,772 -7.6 3,002 2,772 -7.6

EBITDA €m 527 334 -36.6 389 334 -14.2

EBITDA-margin % 17.5% 12.0% 13.0% 12.0%

EBIT €m 368 168 -54.5 237 172 -27.6

EBIT-margin % 12.3% 6.0% 7.9% 6.2%

EBT €m 328 139 -57.7 197 143 -27.4

Net profit €m 290 106 -63.5 152 109 -28.3

EPS** € / Share 1.61 0.58 -64.0 0.77 0.59 -23.4

REPORTED FIGURES CLEAN FIGURES

*) Excluding one-offs from changes of consolidation (Metal Engineering Division) **) Based on average number of shares

Investor Relations

voestalpine AG | |

voestalpine Group Financial overview

August 2016 16

Q1 BY 2015/16 01.04.2015 – 30.06.2015

Q1 BY 2016/17 01.04.2016 – 30.06.2016 Delta (%)

CAPEX* €m 333 233 -30.1

Depreciation €m 158 166 +5.2

Equity €m 5,572 5,705 +2.4

Net Financial Debt €m 2,978 3,189 +7.1

Gearing % 53.4% 55.9%

* Fixed assets and acquisitions

Structure of statement of financial position impacted by special items resulting from exchange

rate movements, and an actuarial revaluation of social capital

Investor Relations

voestalpine AG | |

voestalpine Group Development EBIT

Q1 BY 2015/16

Price Raw

Materials

Misc. Mix/

Volume Q1 BY

2016/17

368 €m

168 €m Reported EBIT 12.3% -4 €m -14 €m

-136 €m

1 €m

Reported

EBIT 6.0%

August 2016 17

84 €m 172 €m

One-off effects

Clean

EBIT 6.2%

One-off effects

-131 €m Clean EBIT 7.9 %

Q1 BY 2015/16

237 €m

Q1 BY 2016/17

Investor Relations

Diagramm1

EBIT BudgetEBIT BudgetEBIT Budget

One-off effectsOne-off effectsOne-off effects

237

Nettoerlöse, ProduktmixNettoerlöse, ProduktmixNettoerlöse, Produktmix

RohstoffeRohstoffeRohstoffe

MengenMengenMengen

SonstigeSonstigeSonstige

Bereinigtes EBIT ISTBereinigtes EBIT ISTBereinigtes EBIT IST

Konsolidierung CNTT und TubularsKonsolidierung CNTT und TubularsKonsolidierung CNTT und Tubulars

EBIT ISTEBIT ISTEBIT IST

Ost

West

368

237

131

101

136

101

84

171

14

171

1

172

170

4

168

Sheet1

EBIT BudgetOne-off effectsNettoerlöse, ProduktmixRohstoffeMengenSonstigeBereinigtes EBIT ISTKonsolidierung CNTT und TubularsEBIT IST

Ost368237237101101171171170

West13113684141172168

4

voestalpine AG | |

voestalpine Group Development cash flow

August 2016 18

Q1 BY 2015/16 01.04.2015 – 30.06.2015

Q1 BY 2015/16 01.04.2016 – 30.06.2016

€m €m

Cash flow from results 294 276

Changes in working capital -77 -60

Cash flow from operating activities 217 216

Cash flow from investing activities -324 -295

Free cash flow -107 -79

Investor Relations

voestalpine AG

voestalpine Group Development gearing ratio

| | August 2016 19 Investor Relations

Diagramm1

2002/032002/032002/03

2003/042003/042003/04

2004/052004/052004/05

2005/062005/062005/06

2006/072006/072006/07

2007/082007/082007/08

2008/092008/092008/09

2009/102009/102009/10

2010/112010/112010/11

2011/122011/122011/12

2012/132012/132012/13

2013/142013/142013/14

2014/152014/152014/15

2015/162015/162015/16

Q1 BY 2016/17Q1 BY 2016/17Q1 BY 2016/17

Net Debt (€m)

Equity (€m)

Gearing ratio (%)

3,572

3,762

3,037

2,713

2,586

2,259

2,421

2,978

3,080

3,189

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

5,705

46%

831

1786

0.47

635

1853

0.34

684

2125

0.32

377

2547

0.15

526

2882

0.18

3572

4289

0.83

3761.61

4263

0.88

3037

4262

0.71

2713

4691

0.58

2586

4836

0.54

2259

5075

0.45

2421

5261

0.46

2978

5115

0.584

3080

5652

0.545

3188.9

5705.3

0.559

Sheet1

2002/032003/042004/052005/062002/032003/042004/052005/062006/072007/082008/092009/102010/112011/122012/132013/142014/152015/16Q1 BY 2016/17

Net Debt (€m)83163568437783163568437752635723761.6130372713258622592421297830803189

Equity (€m)17861853212525471786185321252547288242894,26342624691483650755261511556525705

Gearing ratio (%)47%34%32%15%47%34%32%15%18%83%88%71%58%54%45%46%58%55%56%

voestalpine AG | |

in €m

voestalpine Group Liquidity and redemption schedule per 30.06.2016

August 2016 20

1,804

Liquidity Redemption

Committed lines

Financial assets

Cash

Investor Relations

711

Diagramm1

2015/162015/162015/16

2016/172016/172016/17

2017/182017/182017/18

2018/192018/192018/19

2019/202019/202019/20

2020/212020/212020/21

cash

financial assets

extra

423

- 158

-666

- 857

-939

-89

670

423

711

1646

158

980

666

123

857

123

-939

-939

-89

Sheet1

Liquidity2015/162016/172017/182018/192019/202020/21

cash6701646980123

financial assets423158666857123-939

extra711-939-89

1,804

Tabelle1

voestalpine AG | |

voestalpine Group Outlook CY 2016


OUTLOOK: EBIT & EBITDA for 2016/17 close to last year’s (clean) level

Near-term recovery of global economy unlikely

„Brexit“ & crisis in Turkey/Near-/Mid-East reducing hopes of a broader economic upturn

Nevertheless continuation of moderate upward trend in EU, receding momentum in US

No signs of short-term recovery in Brazil and Russia

First positive effects from recent Chinese 5-years plan

Core markets automotive, railways & aircraft unchanged strong

No short-term upturn of oil & gas sector expected

“Reversed” earnings forecast for 2016/17 in comparison to 2015/16

Expectations for EBIT & EBITDA in H2 2016/17 above H1


IR Contact Peter Fleischer Head of Investor Relations E-Mail [email protected] Phone +43/50304/15-9949 Gerald Resch Investor Relations Manager E-Mail [email protected] Phone +43/50304/15-3152

Bloomberg VOE AV

Reuters VOES.VI

�Business Year 2016/17�1st Quartervoestalpine Group�Overview�voestalpine Group�Global footprintvoestalpine Group�Investing in voestalpine shares�voestalpine Group�Strategic principles�voestalpine Group�Business development Q1 BY 2016/17voestalpine Group�Quarterly figures Q1 BY 2016/17 - reportedFoliennummer 8voestalpine Group�Quarterly figures Q1 BY 2016/17 – clean (excl. one-offs)Steel Division�Business development Q1 BY 2016/17Special Steel Division�Business development Q1 BY 2016/17Metal Engineering Division�Business development Q1 BY 2016/17Metal Forming Division�Business development Q1 BY 2016/17Financial overview �Q1 BY 2016/17Foliennummer 15Foliennummer 16Foliennummer 17Foliennummer 18voestalpine Group�Development gearing ratioFoliennummer 20Foliennummer 21Foliennummer 22

business year 2016/17 1st quarter - voestalpine · 2018-08-04 · august 2016 investor relations ....

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