Voestalpine Ag · VIE:VOE
Voestalpine — 1H 2007/08 Earnings Presentation
19 slides from Voestalpine's earnings presentation, November 2007
Slide 1: Financial Year 2007/08 1st Half
Financial Year 2007/08 1st Half Investor Relations November 2007 voestalpine AG www.voestalpine.com
Slide 2: Leading market position – Record figures
Leading market position – Record figures Steel Special Railway Automotive Profilform Steel Systems Top European Worldwide Worldwide Top European European player leadership leadership player leadership Sales EBITDA EBIT 1Q 2007/08 1,961 m€ 408 m€ 313 m€ 2Q 2007/08 excl. ppa* 2,788 m€ 543 m€ 419 m€ 1H
Slide 3: Highlights
Highlights Division Steel Successful acquisition of Böhler-Uddeholm 80.3% stake as of September 30, 2007 Integration well on track 81 m€ Synergies defined – new target 100 m€ Division Railway Systems Successful launch of € 1 bn hybrid bond Earnings on new record level – significant impli
Slide 4: Growth track record
Growth track record , 8.000 7,050 , 1.500 , 6.000 1,013 4,749 , 1.000 Sales (€m) EBIT (€m) , 4.000 3,354 732* 612** 500 , 2.000 160 0 0 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 1H 2007/08 Sales EBIT FY 2001/02 FY 2006/07 1H 2007/08 EBIT margin 4.8% 14.4% 12.9% excl. ppa 15.4% *) excl. ppa Böh
Slide 5: Division Steel – business development 1st Half 07/08
Division Steel – business development 1st Half 07/08 Favourable pricing environment in all business segments, solid high demand Division Steel in figures Price increases realized Sales EBIT EBIT Outstanding demand and price level in high quality (€m) (€m) (%) heavy plate due to energy business
Slide 6: Division Special Steel – business development 1st Half 07/08
Division Special Steel – business development 1st Half 07/08 Start of consolidation July 1st (3 months) Division Special Steel in figures Significant increase in sales and earnings Pre purchase price allocation Sustainable high demand and favourable pricing Sales EBIT EBIT (€m) (€m) (%) enviro
Slide 7: Division Special Steel – Implications from preliminary purchase price allocation (PPA)
Division Special Steel – Implications from preliminary purchase price allocation (PPA) PPA is an obligatory measure due to IFRS 3 Division Special Steel in figures Reduction of goodwill and impairment risk on balance sheet Sales EBIT EBIT (€m) (€m) (%) Valuation of all assets and liabilities o
Slide 8: Preliminary Purchase Price Allocation yearly impact on EBIT and EBITDA
Preliminary Purchase Price Allocation yearly impact on EBIT and EBITDA going forward 400 350 €m 350 300 (in €m) 250 225 €m 200 150 132 €m 116 €m 100 67 €m 45 €m 50 33 €m 24 €m 0 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 EBIT Impact EBITDA Impact (Short term effects from inven
Slide 9: Division Railway Systems – business development 1st Half 07/08
Division Railway Systems – business development 1st Half 07/08 Rails and switches Strong demand in Europe and overseas markets Division Railway Systems Reduced order placing from Deutsche Bahn, booming in figures other markets absorb volumes easily Sales EBIT EBIT favourable pricing environmen
Slide 10: Division Automotive – business development 1st Half 07/08
Division Automotive – business development 1st Half 07/08 Body parts Division Automotive in Improving market situation figures Positive development in spare parts business Sales EBIT EBIT Cost cutting program in selected companies (€m) (€m) (%) implemented (Mc Kinsey) 1Q 260 12 4.7 FY 07/08 La
Slide 11: Division Profilform – business development 1st Half 07/08
Division Profilform – business development 1st Half 07/08 Special sections Division Profilform in figures Strong demand all over Europe driven by building-, commercial vehicle- & warehousing industry EBIT EBIT Sales (€m) (€m) (%) Recent acquisitions well on track 1Q 280 38 13,6 Growth strategy
Slide 12: Financial overview
Financial overview voestalpine AG www.voestalpine.com
Slide 13: Consolidated overview
Consolidated overview 1H*** 1H 1H YoY 2007/08 2006/07 2007/08 in % (excl. ppa) Sales €m 3,368 4,749 41.0 % 4,749 EBITDA €m 617 905 46.5 % 951 % of Sales % 18.3 19.1 20.0 EBIT €m 447 612 37.1 % 732 % of Sales % 13.3 12.9 15.4 EBT €m 428 556 29.9 % 676 Net Profit €m 323 434 34.6 % 521 EPS** € 2.0 2.7
Slide 14: EBIT Development 1H 2007/08 vs 1H 2006/07
EBIT Development 1H 2007/08 vs 1H 2006/07 732 €m 123 €m 46 €m 202 €m 13 €m 612 €m -82 €m -17 €m -120 €m 447 €m Acquisition EBIT* EBIT EBIT EBIT Mix/ Raw Price Volume materials Acquisitions Misc. Böhler- 15.4% 13.5% ppa 12.9% 13.3% Uddeholm 1H 2006/07 1H 2007/08 *) pro forma figures excl. ppa voestal
Slide 15: Cash flow 1H 2007/08 vs 1H 2006/07
Cash flow 1H 2007/08 vs 1H 2006/07 1H 2006/07 1H 2007/08 Cash flow from result €m 509 724 Changes in working capital €m -87 -77 Cash flow from operating activities €m 422 647 Cash flow from investing activities €m -266 -3,428 Free Cash flow €m 156 -2,781 voestalpine AG 15 | November 2007 | Investor
Slide 16: Gearing ratio
Gearing ratio 4,220 121% * 3,476 2,926 2,547 2,125 1,564 1,786 1,853 1,530 40% 34% 32% 47% 831 15% 18% 16% 625 635 684 377 526 252 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 1H Net Debt (€m) Equity (€m) Gearing-Ratio (%) *) € 1 bn hybrid bond (equity) not included (valuta Octobe
Slide 17: Summary voestalpine hybrid bond
Summary voestalpine hybrid bond € 1 bn hybrid bond successfully launched October 2007 Largest hybrid transaction of an unrated company globally 100% equity on voestalpine balance sheet Years 1–7: 7.125 % p.a. fixed, Coupon thereafter: 3M Euribor+ 5.05 % p.a. (250bp step-up) Maturity / Optional
Slide 18: voestalpine Group Outlook (FY 2007/08)
voestalpine Group Outlook (FY 2007/08) Business environment in general less favourable in 2H – increasing uncertainty Still solid overall demand Seamless tubes capacities globally increasing Boom in high quality heavy plate Steel inventories above average after summer Steel prices stable
Slide 19: IR Contact Peter Fleischer
Reuters IR Contact VOES.VI Peter Fleischer Bloomberg E-Mail peter.fleischer@voestalpine.com VOE AV Phone +43/50304/15-9949 voestalpine AG www.voestalpine.com