high performance metals division · high performance metals division global quality leader in...

voestalpine High Performance Metals GmbH voestalpine High Performance Metals GmbH www.voestalpine.com/highperformancemetals

HIGH PERFORMANCE METALS DIVISION Business year 2016/17

voestalpine High Performance Metals GmbH | |

voestalpine AG

High Performance Metals Division

Key figures for 2016/17

Employees 49,703

Revenue EUR 11,294.5

million

EBITDA EUR 1,540.7 million

EBIT EUR 823.3 million

EBIT margin 7.3 %

Sales by regions Sales by industries

Business year 2016/17 Business year 2016/17

70% European Union

(of which Austria 7%) 9% Asia

7% Rest of world

3% South America

11% NAFTA

3% Aerospace

12% Railway systems

34% Automotive

ENERGY 13%

10% Building/ Construction

14% Other

9% Mechanical engineering

5% White goods/ Consumer goods

MOBILITY: 49%

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23%

33%

23%

21%

voestalpine AG Steel

High Performance Metals Metal Engineering

Metal Forming

Revenue (in millions of euros) 3,912.4

EBIT (in millions of euros) 263.2

EBIT margin 6.7%

Employees (full-time equivalent) 10,898



EBIT margin 9.4%




EBIT margin 7.5%




EBIT margin 8.7%


High Performance Metals Division 8/7/2017 3


voestalpine AG

» If you want to change the world, you

can depend on us.

» We’re the partner of choice worldwide

for demanding product solutions

involving steel, helping our customers

stay that decisive step ahead.

» We are the world market leader

or hold leading positions with all

of our four divisions.

Metal Forming Steel

Metal Engineering High Performance Metals

High Performance Metals Division 8/7/2017 4


voestalpine AG


Global quality leader in premium steel strip and cast products, and the

global leading supplier of heavy plate

Sectors Automotive industry and suppliers, energy,

household appliances, construction industry

Global market leader in turnout technology and a leading partner for

rails, processed wire, seamless tubes and welding

consumables

Sectors Railway systems, energy, automotive industry,

mechanical engineering and steel construction

industries

Global market leader for tool steel and a leading partner for high-speed

steel, valve steel, special forged parts and

powdermetallurgical materials

Sectors Toolmaking, automotive industry, oil & gas

exploration, aerospace

Global leading supplier of highly refined sections, tubes and precision strip

steel products as well as for ready-to-install system

components made of pressed, stamped and

rollformed parts.

Sectors Automotive, construction and energy industries,

warehousing technology, mechanical engineering

and steel construction industries

Steel

Metal Engineering

High Performance Metals

Metal Forming

8/7/2017 5


HIGH PERFORMANCE METALS DIVISION AT A GLANCE


Global leading special

steel company with a

focus on

technologically

demanding product

segments

Global market leader in tool steel and global

leading supplier in high-

speed steel, valve steel

and other special steels

as well as

powdermetallurgical

materials

“One-stop shop” With additional services

including heat

treatment, coating and

additive manufacturing.

8 production sites in

Europe, North and

South America, and a

sales and service

network with 160

warehouse and

service sites in 45

countries on all five

continents

Supplying customers

worldwide in the

sectors:

Automotive

Power generation

Oil & gas exploration

Mechanical

engineering

Consumer goods

Aircraft manufacture

and other selected

industry segments

8/7/2017 6


HIGH PERFORMANCE METALS DIVISION AT A GLANCE


Reinhard Nöbauer Robert Bauer

Business Unit HPM (High-Performance Metals)

Production

Business Unit Value Added Services

Böhler Edelstahl GmbH & Co KG (Austria – Kapfenberg)

Böhler Schmiedetechnik GmbH (Austria – Kapfenberg)

Böhler Bleche GmbH (Austria – Mürzzuschlag)

Böhler Profil GmbH (Austria – Bruckbach)

Uddeholms AB (Sweden – Hagfors)

Buderus Edelstahl GmbH (Germany – Wetzlar)

Villares Metals S.A. (Brazil– Sumaré)

ENPAR Sonderwerkstoffe GmbH (Germany - Gummersbach)

Region Pacific

(voestalpine High Performance Metals Pacific, ASSAB Group)

)

Region Germany (Böhler-Uddeholm Deutschland, EschmannStahl,

Eschmann Textures, eifeler, voestalpine Additive Manufacturing Center)

Region Western Europe

(Böhler-Uddeholm, Deville)

Region North America (Böhler-Uddeholm, voestalpine Specialty Metals )

Region International (Böhler-Uddeholm)

voestalpine High Performance Metals GmbH

Markus Potzinger

Finance & Controlling

Franz Rotter

Chairman of the Management Board Production Value Added Services

8/7/2017 7


HIGH PERFORMANCE METALS DIVISION OVERVIEW OF BUSINESS UNITS

8/7/2017 High Performance Metals Division

Business unit HPM Production Value Added Services Division

Positioning

globally leading supplier of top performing materials & components for selective technological demanding applications and industries

Global No.1 in toolsteel with a unique global distribution network and related local services (heat treatment, machining, coating) for the tooling industry

Globally leading high performance metals supplier with a unique service network securing „customer intimacy“

Revenue (m€) 1,765.4 m€ 1.671,4 m€ 2,689 m€ – consolidated

EBIT margin 7.7 % 8.2 % 9.4 %

8


PRESENT IN ALL THE WOLRD‘S INDUSTRIALIZED ZONES


8 production sites in Austria

Kapfenberg, Mürzzuschlag, Bruckbach

Sweden Hagfors

Germany Wetzlar

USA South Boston/Virginia

Brazil Sumaré

Global sales & service network 160 warehouse and service sites

in 45 countries

8/7/2017 9


HIGH PERFORMANCE METALS DIVISION IN KEY FIGURES Financial and operating figures

Revenue

in millions of euros

EBITDA


EBIT


Employees

Full-time equivalent


EBIT margin

in percent

2015/16 – 2016/17

2016/17

13,733

2015/16

13,470

2016/17 2015/16

2,651 2,698 364

2015/16 2016/17

395 253

2016/17 2015/16

227

2016/17

8.6%

2015/16

9.4%

8/7/2017 10


MOBILITY: 41%

HIGH PERFORMANCE METALS DIVISION IN KEY FIGURES


Revenue by region Revenue by industry

12% Aerospace

11% Energy

29% Automotive

4% Building construction

12% Others

13% White goods/

Consumer goods

19% Mechanical engineering

& steel construction

53% European

Union (of which

Austria 4%)

14% NAFTA

18% Asia

7% South America

8% Rest of world

8/7/2017 11


A STEP AHEAD WITH STATE-OF-THE-ART PRODUCTION FACILITIES …


Electric arc furnaces and secondary metallurgical plant for special steels used in demanding applications

Remelting units (ESR/VAR) and furnaces for vacuum induction melting (VIM) to optimize metallurgical properties

Rolling mills with extremely tight tolerances

State-of-the-art forging machines (open die, closed die and rotary forging)

Continuous casting plant for valve steel and welding wire

Powder metallurgy plant in Austria

Atomizing plants for the production of metal powders for additive manufacturing

Screw press for the production of aerospace components

8/7/2017 12


in all product forms

…FOR THE PRODUCTION OF HIGH-PERFORMANCE MATERIALS


Tool steel High-speed steel Valve steel Special engineering

steel

Powdermetallurgical

materials Special steels Nickel-based alloys Titanium alloys

8/7/2017 13


…AND A GLOBAL SALES NETWORK WITH A FOCUSED SERVICE PORTFOLIO


Heat treatment

Machining Coating

Saws Warehousing

8/7/2017

Additive Manufacturing

14


OUR VALUE ADDED SERVICES NETWORK IN FIGURES


100% Customer service achieved through local technical advice and services

~40% of all employees working in sales and service

~160 warehousing and service sites in all industrialized regions of the world

24 hour delivery for standard products “Ordered today – delivered tomorrow”

~1,000 high-performance saws,

350 precision milling machines,

100 and heat treatment furnaces

For customized dimensions &

material properties

Global number 1 for service centers for tool making

8/7/2017

No competitor in the special steel sector has a similarly dense sales network

with warehousing, machining, heat treatment, coating facilities and additive manufacturing (3D printing with metal

powder)

15


STRONG PARTNER TO THE AEROSPACE INDUSTRY » Fifth largest supplier worldwide

» Global sales network ensures customer

proximity to Tier 1 and OEMs

» Materials & components made from special

materials, titanium and nickel-based alloys

by Böhler and Villares Metals, thin film

coatings by eifeler for highly demanding

applications

» Ongoing expansion of approvals & services


Special forgings, special materials, sheets and plates, special profiles, structural components

8/7/2017 16


RELIABLE PARTNER TO THE OIL & GAS INDUSTRY » Pre-materials & tailor-made components in special steel and

nickel-based alloys for oil & gas production, transport, storage

and refining

» Present in all oil & gas industry hot spots: customized warehousing

in Houston/USA, Singapore, Great Britain, Norway and Brazil

» Fast delivery, consulting & services (individual cutting, machining,

material testing, heat treatment, coating) saves customers effort,

time and costs

» Ongoing expansion of approvals and services, as well as research

activities and application developments for specific industry

challenges


Offshore equipment

Oilfield components

Steel solutions for oil & gas

8/7/2017 17


INNOVATION LEADER THROUGH ADDITIVE MANUFACTURING » The additive manufacturing process uses 3D data to manufacture

components by adding layer upon layer of metal powder. Advantages of this technology include:

» Ability to produce complex geometries (weight reduction, lattice structures)

» Customized production, low warehousing costs, small batches » Short innovation/product development cycles

» Material expertise and extensive experience in powder metallurgy within the division through Böhler and Uddeholm

» Research competence center, voestalpine Additive Manufacturing Center GmbH, in Düsseldorf in operation since April 2016. Expansion in Singapore, Taiwan, Toronto

» Combines the core competences of powder production with design optimization and component production


Complex structures

Laser melting process

Powder development

8/7/2017 18


OUR STRONG BRANDS MAKE US DISTINCTIVE


» voestalpine High Performance Metals has global

leading brands with a long tradition in the special

steel sector (multi-brand strategy)

» Each brand symbolizes a separate performance

profile in the market and generates strong brand

loyalty

» These brands clearly differentiate us from our

competitors

» Optimizing and developing its brands creates value

8/7/2017 19


OUR SPECIFIC CUSTOMER STRUCTURE

No volume business, average dispatch weight around 70 kg


The High Performance Metals Division focuses on medium-sized buyers as well as major industrial customers.

Focus

Tool making is largest

customer group (primarily

SMEs)

no dependence on a

few major customers

Largest customer

represents

10 largest customers

represent

less than

of total revenue of total revenue

less than

Automotive industry Power generation Oil & gas exploration

Mechanical engineering Aircraft construction Highly technical industry segments

8/7/2017 20


TAILOR-MADE SOLUTIONS HELP US STAND OUT


CUSTOMER INTIMACY Customer Responsive

PRODUCT LEADERSHIP Product Differentiation

OPERATIONAL EXCELLENCE Operational Competence

Level with the best

A step ahead of the best

8/7/2017

Fully integrated special steel manufacturer with production, sales and services from a single source

Strongly diversified customer base, no dependence on a few major customers

Dense sales and service network secures global presence, clear focus on our customers as highest priority (customer intimacy)

Global market leader in selected, technologically highly demanding product segments – not a commodity steel producer

Strong brands with a long tradition secure strong brand loyalty

21

voestalpine High Performance Metals GmbH | | High Performance Metals Division

MEGATRENDS SECURE OUR LONG-TERM GROWTH

Megatrend/ industry sector Current

contribution to total sales

Mid-term trend

Long-term trend

Mobility/Automotive Tool and component construction

~29%

Mobility/Aerospace Structural parts, engine disks

~12%

Power generation Thermal power plants, wind energy, oil & gas exploration

~11%

Consumer goods Electronics, household appliances, packaging

~13%

Mechanical engineering Cutting tools, heavy gear boxes, tooling

~19%

The High Performance Metals Division is well positioned in tomorrow’s growth markets.

8/7/2017 22


14,3

19,7 21,6 20,9 19,8 20,2

23 21 21 21


R&D GUARANTEES OUR POWER TO INNOVATE

» Directed development of products and processes as basis for innovation and competitiveness » New steel grades & alloys, process simulation for metal forming and process technology as well as metal powder and additive manufacturing » Fundamental research in close cooperation with universities, research institutes and Christian Doppler laboratories

R&D in figures Expenditure in millions of euros

Number of employees

Number of patents & registered patents

08/09 09/10 10/11 11/12 12/13 13/14 14/15 16/17

~109

~1.039

15/16 06/07 07/08

8/7/2017

24

23


DEDICATE EMPLOYEES ENSURE CUSTOMER PROXIMITY


» 13,733* employees in 45 countries around the world

» Close collaboration within networks guarantees customer satisfaction

» Group-wide feedback from the Employee Survey enables “employee engagement“ to be measured and provides the basis for drawing up targeted measures within the companies

» Employees with expertise and a willingness to take on direct responsibility are prerequisites for meeting customer needs and distinguishing the Group from its competition

* full-time equivalent

36% Europe (excl. Austria)

29% Austria 14% S America

15% Asia

5% N America

1% Other

Employees by region

8/7/2017 24


OUR VALUES


We develop the talents of our employees

We are committed for the long term

We keep our word

We are empowered professionals

We focus on the needs of our customers

8/7/2017 25


SAFETY AT WORK – AN ABSOLUTE PRIORITY


» Employee health and safety enjoys highest priority

» Standardized safety & health management systems at our production sites (OHSAS 18001)

» Industrial safety and a healthy workplace are integral to all business processes

» International exchanges between division and Group sites encourages our joint development

» Excellent work safety and workplace health are important contributors to the success of the company

Our vision: “No accidents” !

8/7/2017 26


WE ARE IMPROVING - CONTINUOUSLY (CIP)


» Sustainable cost reduction and ensuring competitiveness through established and successful Continuous Improvement Program (CIP) in the companies

» Employees submit roughly 15,000 ideas for improvement which are then assessed by expert teams

» Focus on four categories: Quality, Safety at work and health, Environmental protection, and Financial impact

» Rewards for the best submissions

8/7/2017 27


OUR ENVIRONMENT IN FOCUS


» Active environmental protection is part of our company philosophy Maintaining a continual improvement process and adhering to environmental regulations.

» Standardized environmental & energy management systems at our production sites (ISO 14001 and ISO 50001)

» Energy and resource efficiency, and avoiding or reducing environmental pollution by using the best available and economically justifiable technologies

» Sustainable contribution to a future in which resources are protected by improving material efficiency and recyclability

» Networking of environmental representatives at the sites and monitoring legal and technological developments to ensure high environmental standards across the Group

8/7/2017 28

voestalpine High Performance Metals GmbH voestalpine High Performance Metals GmbH www.voestalpine.com/highperformancemetals

Thank you


HISTORICAL MILESTONES


2016

2013

2011

2008

2007

2003

1995

1991

Acquisition of ATT (Shanghai) and the Sermetal Group (Spain/Portugal) Start of the voestalpine Additive Manufacturing Center in Düsseldorf

voestalpine Edelstahl GmbH acquires Eifeler Group and expands the service portfolio to add coating for tool making

Holding company Böhler-Uddeholm AG renamed voestalpine Edelstahl GmbH

Full integration into the group as the Special Steel Division

Austrian voestalpine AG takes over Böhler-Uddeholm

The Republic of Austria sells its remaining stake in Böhler-Uddeholm

Partial privatization with initial public offering on the Vienna Stock Exchange, majority privatization in the following year

Austrian Böhler Group and Swedish Uddeholm Group merge to form the holding company Böhler-Uddeholm Group. Both companies enjoy a long history – Böhler since 1446 and Uddeholm since 1668. Böhler-Uddeholm is fully owned by the ÖIAG (Republic of Austria)

8/7/2017 30

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