Voestalpine Ag · VIE:VOE
Voestalpine — Shareholder Meeting (July 2015)
40 slides from Voestalpine's shareholder meeting presentation, Jul 1, 2015
Slide 1: Welcome!
Welcome! 23rd Annual General Meeting of voestalpine AG Linz, July 1, 2015 voestalpine AG www.voestalpine.com
Slide 2: 23rd Annual General Meeting of voestalpine AG
23rd Annual General Meeting of voestalpine AG Linz, July 1, 2015 voestalpine AG www.voestalpine.com
Slide 3: Agenda item 1
Agenda item 1 Presentation of the adopted Annual Financial Statements of voestalpine AG, of the Management Report, which has been combined with the Consolidated Management Report, of the recommendation for appropriation of net profit, of the Consolidated Annual Financial Statements, of the
Slide 4: Business year 2014/15 of the voestalpine Group
Business year 2014/15 of the voestalpine Group 23rd Annual General Meeting of voestalpine AG voestalpine AG www.voestalpine.com
Slide 5: Business environment, highlights
Business environment, highlights voestalpine AG 5 | 07/01/2015 | 23rd Annual General Meeting of voestalpine AG
Slide 6: Economic environment
Business year 2014/15 Economic environment Global economic development uneven Europe (euro zone): overall volatile and subdued development, moderate economic revival in the last quarter (“quantitative easing” by ECB, EU investment offensive) North America: continuing growth; consolidation phas
Slide 7: voestalpine Group – Highlights (1)
Business year 2014/15 voestalpine Group – Highlights (1) Despite negative price trends (iron ore, oil), revenue slightly up to EUR 11.2 billion EBITDA rose to EUR 1.53 billion (+11.4%), EBIT increased to EUR 886 million (+12.4%) Positive non-recurring effects (EBITDA EUR 61.9 million, EBIT EUR
Slide 8: voestalpine Group – Highlights (2)
Business year 2014/15 voestalpine Group – Highlights (2) Efficiency improvement and cost optimization program shows first effects on earnings Employment stable at high level: More than 52% of core staff outside of Austria At around 23,000 employees, employment record in Austria Direct redu
Slide 9: voestalpine Group: Development of investments
voestalpine Group: Development of investments (in EUR ∑ of the past 10 years: EUR 11 billion million) 1,178 1200 1000 936 346 Rest of world 851 154 800 96 182 231 Other EU 566 575 243 600 17 65 94 423 145 400 39 Austria 112 600 601 512 200 455 365 272 0 2005/06 (…) 2010/11 2011/12 2012/13 2013/14 20
Slide 10: voestalpine Group: Development of investments
voestalpine Group: Development of investments (in EUR ∑ of the past 10 years: EUR 11 billion (in %) million) 1,178 1200 20 2005/06 1000 936 346 Rest of world 851 154 800 96 182 231 Other EU 566 575 243 35 600 2010/11 17 65 94 423 145 400 39 Austria 112 600 601 512 200 455 365 272 2014/15 49 0 2005/0
Slide 11: Overview of key figures
Overview of key figures voestalpine AG 11 | 07/01/2015 | 23rd Annual General Meeting of voestalpine AG
Slide 12: Development of key figures
voestalpine Group Development of key figures * Figures retroactively adjusted ** Proposal to the AGM 2013/14* 2014/15 Change (%) Revenue EUR million 11,077.2 11,189.5 +1.0 voestalpine AG 12 | 07/01/2015 | 23rd Annual General Meeting of voestalpine AG
Slide 13: Development of key figures
voestalpine Group Development of key figures * Figures retroactively adjusted ** Proposal to the AGM 2013/14* 2014/15 Change (%) Revenue EUR million 11,077.2 11,189.5 +1.0 Operating result (EBITDA) EUR million 1,374.0 1,530.2 +11.4 EBITDA margin % 12.4 13.7 voestalpine AG 13 | 07/01/2015 | 23rd Annu
Slide 14: voestalpine vs. European steel industry: EBITDA margin
voestalpine vs. European steel industry Development of EBITDA margin 2011 2012 2013 2014 2015 voestalpine Quarterly comparison: EBITDA in % of revenue; Sources: Bloomberg, company reports voestalpine AG 14 | 07/01/2015 | 23rd Annual General Meeting of voestalpine AG
Slide 15: Development of key figures
voestalpine Group Development of key figures * Figures retroactively adjusted ** Proposal to the AGM 2013/14* 2014/15 Change (%) Revenue EUR million 11,077.2 11,189.5 +1.0 Operating result (EBITDA) EUR million 1,374.0 1,530.2 +11.4 EBITDA margin % 12.4 13.7 Profit from operations (EBIT) EUR million
Slide 16: voestalpine vs. European steel industry: EBIT margin
voestalpine vs. European steel industry Development of EBIT margin 2011 2012 2013 2014 2015 voestalpine Quarterly comparison: EBIT in % of revenue; Sources: Bloomberg, company reports voestalpine AG 16 | 07/01/2015 | 23rd Annual General Meeting of voestalpine AG
Slide 17: Long-term comparison of EBIT/EBITDA margins
voestalpine Group Long-term comparison of EBIT/EBITDA margins 19.6% 14000 17.3% 17.5% 12000 14.6% 14.7% 13.7% 10000 12.4% 12.4% 11.7% 10.8% 8000 6000 4000 2000 0 IST 2005/06 IST2006/07 2005/06 2005/06 2006/07 IST2007/08 2007/08 IST2008/09 2008/09 IST2009/10 2009/10 IST2010/11 2010/11 IST2011/12 2010
Slide 18: Long-term comparison of EBIT/EBITDA margins
voestalpine Group Long-term comparison of EBIT/EBITDA margins 19.6% 14000 17.3% 17.5% 12000 14.6% 14.6% 14.7% 13.7% 10000 12.4% 12.4% 11.6% 11.7% 11.0% 10.8% 8000 8.4% 9.0% 7.9% 6000 7.3% 7.1% 5.8% 4000 4.1% 2000 0 IST 2005/06 IST2006/07 2005/06 2005/06 2006/07 IST2007/08 2007/08 IST2008/09 2008/09
Slide 19: Development of key figures
voestalpine Group Development of key figures * Figures retroactively adjusted ** Before deduction of non-controlling interests and interest on hybrid capital 2013/14* 2014/15 Change (%) Revenue EUR million 11,077.2 11,189.5 +1.0 Operating result (EBITDA) EUR million 1,374.0 1,530.2 +11.4 EBITDA marg
Slide 20: Development of key figures
voestalpine Group Development of key figures * Figures retroactively adjusted ** Proposal to the AGM 2013/14* 2014/15 Change (%) Revenue EUR million 11,077.2 11,189.5 +1.0 Operating result (EBITDA) EUR million 1,374.0 1,530.2 +11.4 EBITDA margin % 12.4 13.7 Profit from operations (EBIT) EUR million
Slide 21: voestalpine AG: Dividend
voestalpine AG: Dividend * Proposal to the AGM Dividend yield Distribution ratio 400 Ø last 10 years: 3.4 % Ø last 10 years: 38 % 4.3% 350 4.1% 4.0% 3.8% 3.6% 300 341 3.0% 3.0% 78% 250 2.8% 2.9% 235 200 2.2% 150 176 172 48% 155 164 41% 135 135 37% 100 123 33% 35% 32% 31% 84 24% 26% 50 0 2005/06 2006
Slide 22: Development of gearing ratio
voestalpine Group Development of gearing ratio 5,262 Net financial debt (EUR million) 5,075 5,103 4,836 Equity (EUR million) 4,691 4,289 4,263 4,262 Gearing ratio (%) 3,572 3,762 88% 83% 2,882 3,037 2,978 71% 2,713 2,586 2,547 2,421 2,259 58% 58% 54% 45% 46% 526 377 18% 15% 2005/06 2006/07 2007/08 2
Slide 23: R&D expenses
voestalpine Group (in EUR million) R&D expenses R&D expenses R&D budget Ø annual increase in the last 10 years: 8.5% 140 141 120 126 128 127 117 100 112 109 109 93 80 60 66 61 40 20 0 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 voestalpine AG 23 | 07/01/20
Slide 24: Environmental expenses
voestalpine Group Environmental expenses (in EUR million; based on Austrian Group locations) ∑ in the last 10 years: ~ EUR 2.5 bn 300 274 267 264 236 241 244 240 241 250 219 214 200 150 222 100 50 42 0 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Environmental inve
Slide 25: Overview of divisions
Overview of divisions voestalpine AG 25 | 07/01/2015 | 23rd Annual General Meeting of voestalpine AG
Slide 26: Key figures of the divisions
Business year 2014/15 Key figures of the divisions Steel Special Steel Metal Metal Group Engineering Forming Revenue (EUR million) 3,873.9 2,777.4 2,593.0 2,335.2 11,189.5 Share of Group revenue 34 24 22 20 (%) voestalpine AG 26 | 07/01/2015 | 23rd Annual General Meeting of voestalpine AG
Slide 27: Key figures of the divisions
Business year 2014/15 Key figures of the divisions Steel Special Steel Metal Metal Group Engineering Forming Revenue (EUR million) 3,873.9 2,777.4 2,593.0 2,335.2 11,189.5 Share of Group revenue 34 24 22 20 (%) EBITDA (EUR million) 450.3 407.0 419.8 331.3 1.530.2 EBITDA margin (%) 11.6 14.7 16.2 14.
Slide 28: Key figures of the divisions
Business year 2014/15 Key figures of the divisions Steel Special Steel Metal Metal Group Engineering Forming Revenue (EUR million) 3,873.9 2,777.4 2,593.0 2,335.2 11,189.5 Share of Group revenue 34 24 22 20 (%) EBITDA (EUR million) 450.3 407.0 419.8 331.3 1.530.2 EBITDA margin (%) 11.6 14.7 16.2 14.
Slide 29: Key figures of the divisions
Business year 2014/15 Key figures of the divisions Steel Special Steel Metal Metal Group Engineering Forming Revenue (EUR million) 3,873.9 2,777.4 2,593.0 2,335.2 11,189.5 Share of Group revenue 34 24 22 20 (%) EBITDA (EUR million) 450.3 407.0 419.8 331.3 1.530.2 EBITDA margin (%) 11.6 14.7 16.2 14.
Slide 30: Steel Division – Highlights
Business year 2014/15 Steel Division – Highlights Market environment continues to be difficult Massive overcapacity and concurrently, falling raw materials prices continuing price pressure on commodities Slight pick-up in demand beginning in last quarter of business year voestalpine: Sta
Slide 31: Project in Texas on schedule
Project in Texas on schedule Absolute environmental benchmark Construction Completion by the end of 2015 Currently, 1,300 construction workers 137-meter-high reduction tower 2/3 completed, loading port completed Customers 80% of sales volume already contractually fixed Suppliers Full
Slide 32: Special Steel Division
Business year 2014/15 Special Steel Division Regionally inconsistent, but overall improved market environment Subdued development in Europe USA and China continue to be dynamic Automotive and consumer goods segments drive solid demand for tool steel; strong development in the aerospace indus
Slide 33: Metal Engineering Division
Business year 2014/15 Metal Engineering Division Again robust performance with regard to operating results and earnings in all business segments due to strong demand in the most important customer industries High demand for rails, primarily for European railway infrastructure projects Turnout
Slide 34: Metal Forming Division
Business year 2014/15 Metal Forming Division Successful start-up of operations at new production sites in China, South Africa, and the USA; further expansion is being implemented (“phs-ultraform®“) Divestment of Flamco and Plastics Group results in portfolio optimization Development of individ
Slide 35: Climate and energy
Climate and energy voestalpine AG 35 | 07/01/2015 | 23rd Annual General Meeting of voestalpine AG
Slide 36: Climate and energy: Current developments
Climate and energy Current developments Intervention in the current emissions trading scheme resolved starting already in 2019 Increase of CO2 price by marked and permanent reduction of emission trading certificates already prior to 2020 Reform of EU emissions trading (for the period from 2021
Slide 37: CO2 emissions trading: Effects on voestalpine Group
CO2 emissions trading Free allowances Effects on voestalpine Group Purchase requirement 2008–2012 2013–2020 2021–2030 ETS target: -21% ETS target: -43% ~ 1.8 million ~ 28 million ~ 60 million certificates certificates certificates 3% 28% 46% 54% 72% 97% ~ 11 €/t: ∑ ~ € 20 million at Ø 10 €/t: ∑
Slide 38: CO2 emissions by regions
CO2 emissions by regions Development 1990 – 2013 Sources: WV Stahl, United Nations Statistics Division (Millennium Development Goals Indicators) China +285% USA +8% EU(28) -18% Austria -9% India +240% Russia -34% Middle East +195% Japan +11% -50% 0% 50% 100% 150% 200% 250% 300% voestalpine AG 38 | 0
Slide 39: voestalpine Group: Outlook 2015/16
voestalpine Group: Outlook 2015/16 North America: solid growth aside from seasonal fluctuation China/Southeast Asia: unchanged, stable development (with the exception of commodities) India: increasing revival of economy Brazil, Russia: continuing economic problems cannot be solved in the sho
Slide 40: Business year 2014/15 of the voestalpine Group
Business year 2014/15 of the voestalpine Group 23rd Annual General Meeting of voestalpine AG voestalpine AG www.voestalpine.com