Voestalpine Ag · VIE:VOE
Voestalpine — H1 2002/03 Earnings Presentation
39 slides from Voestalpine's earnings presentation, November 2002
Slide 1: Business Year 2002/03 – 1st Half
BUSINESS YEAR 2002/03 – 1st HALF Investor Relations November 2002 ONE STEP AHEAD
Slide 2: Company Overview
Company Overview ONE STEP AHEAD voestalpine
Slide 3: Ownership Structure
OWNERSHIP STRUCTURE BUSINESS YEAR 2002/03 – 1st HALF Current shareholder structure Shares 1) 39,600,000 Market Capitalization 1.02 €bn (as per November 08, 2002) Austria 2) 30% ÖIAG 34.7% Free Float 65.3% Other Europe voestalpine 5.3% Germany North America UK Investor Relations 5% 19% 6% November 20
Slide 4: Group Structure
GROUP STRUCTURE BUSINESS YEAR 2002/03 – 1st HALF Struzl, Eder, Haidenthaler, Spreitzer Sales: 2,010 €m Employees: 20,179 EBITDA: 227 €m EBIT: 91 €m RAILWAY STEEL PROFILFORM motion SYSTEMS Eder Struzl Spreitzer Eder Sales (€m) 1,045.2 527.4 210.4 340.0 EBITDA (€m) 115.8 52.9 33.8 33.3 voestalpine Inv
Slide 5: Strong Positioning in Attractive Industries
STRONG POSITIONING IN ATTRACTIVE INDUSTRIES BUSINESS YEAR 2002/03 – 1st HALF 0,75 Transportation Automobiles & 0,65 Household & Components Personal Products GLAMOUR Food Beverage ATTRACTIVE 0,55 (Earnings outlook) Momentum Score & Tobacco voestalpine 0,45 Materials is getting positioned in Capital G
Slide 6: Integration: The voestalpine Way
INTEGRATION: THE voestalpine WAY BUSINESS YEAR 2002/03 – 1st HALF Steps of Integration Integration is key to successful acquisitions Operative Utilizing group synergies integration Organizational Structure/process organization integration Administrative integration Harmonizing controlling, treasury,
Slide 7: EU Enlargement
EU - ENLARGEMENT BUSINESS YEAR 2002/03 – 1st HALF Sales to Central Europe (€m) 220 195 + 22% CAGR 153 159 2H 123 104 102 69 56 37 1H 1H voestalpine 92 93 94 95 96 97/98 98/99 99/00 00/01 01/02 1H02/03 Investor Relations Czech Republic, Slovak Republic, November 2002 Hungary, Poland, Slovenia, Croati
Slide 8: Sales Breakdown
SALES BREAKDOWN BUSINESS YEAR 2002/03 – 1st HALF Sales Breakdown by Industries 1H 2002/03 White Goods Oil Construction Other Subsuppliers 14% 5% 6% 16% 16% 13% 30% Civil & Mechanical Railway Engineering voestalpine Investor Relations Automotive November 2002 8
Slide 9: Division Railway Systems
DIVISION RAILWAY SYSTEMS ONE STEP AHEAD voestalpine
Slide 10: Integration Update
INTEGRATION UPDATE BUSINESS YEAR 2002/03 – 1st HALF 2000 2001 2002 2003 2004 voestalpine Klöckner Bahntechnik X TSTG (Thyssen Schienen Technik) X Railpro X VAE* X voestalpine Integration Financial criteria Investor Relations Acquisition EV/Sales £ 0.7 X 1st consolidation in P&L EBIT ³ 7% (mid term)
Slide 11: Acquisitions & Perspectives
ACQUISITIONS & PERSPECTIVES BUSINESS YEAR 2002/03 – 1st HALF Acquisition of Railpro Increasing potential profitability Acquisition of VAE „One-Stop-Shop“ for World market leader railway infrastructure and in rail-points/switches maintenance, located in “Full Service Provider” the Netherlands Cost cu
Slide 12: Rail-Track Projects
RAIL-TRACK PROJECTS BUSINESS YEAR 2002/03 – 1st HALF Cologne - Frankfurt high speed rail-track Globally unique state-of-the-art single purpose high-speed rail track voestalpine was the general contractor for all high-tech rails (120m), switches and full track installation St. Gotthard Basistunnel (C
Slide 13: Financial Data & Sales Breakdown
FINANCIAL DATA & SALES BREAKDOWN BUSINESS YEAR 2002/03 – 1st HALF Sales Breakdown by Industries 1H 01/02 1H 02/03 1H 2002/03 Sales €m 420 527.4 EBITDA €m 43 52.9 Construction Civil & Subsupplier Mechanical % Sales 10.1% 10.0% Engineering Other Automotive 9% 5% 2% €m 9% EBIT 19 24.2 61% 14% % Sales 4
Slide 14: Division Steel
DIVISION STEEL ONE STEP AHEAD voestalpine
Slide 15: Price Development: voestalpine vs Industry
PRICE DEVELOPMENT voestalpine vs INDUSTRY BUSINESS YEAR 2002/03 – 1st HALF 14% 10% 6% 2% -2% -6% Price change compared to previous quarter -10% Calendar Quarter voestalpine Investor Relations 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 -14% November 2002 European Steel
Slide 16: Price Development
PRICE DEVELOPMENT voestalpine BUSINESS YEAR 2002/03 – 1st HALF 14% 10% 6% 2% -2% -6% Price change -10% compared to previous quarter -14% Calendar Quarter voestalpine Investor Relations 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 November 2002 Construction Supsuppliers
Slide 17: Production & Shipments
PRODUCTION & SHIPMENTS BUSINESS YEAR 2002/03 – 1st HALF 1H 2001/02 1H 2002/03 Shipments (t) Heavy Plate 205,000 160,000 Hot-rolled Strip 472,000 555,000 Cold-rolled Strip 469,000 494,000 Surface-treated Strip 717,000 766,000 Other 11,000 9,000 Total Shipments 1,874,000 1,984,000 voestalpine Investor
Slide 18: Investment Project Linz 2010 – Current Status
INVESTMENT PROJECT "LINZ 2010" – CURRENT STATUS BUSINESS YEAR 2002/03 – 1st HALF Preparation of BF-A revamping (2004) – start of slab pre-production Order for new casting line CC6 HDG 3 start-up in summer 2003 Order for organic coating line 2 (start-up summer 2004) voestalpine Investor Relations All
Slide 19: Financial Data & Sales Breakdown
FINANCIAL DATA & SALES BREAKDOWN BUSINESS YEAR 2002/03 – 1st HALF 1H 01/02 1H 02/03 Sales Breakdown by Industries Sales €m 989 1,045.2 1H 2002/03 EBITDA €m 127 115.8 % Sales 12.8% 11.1% Other Oil Automotive 21% 5% 26% EBIT €m 58 42.5 11% 19% 18% % Sales 5.8% 4.1% White Goods Employees 9,143 9,409 Co
Slide 20: Division motion
division motion ONE STEP AHEAD voestalpine
Slide 21: Global Network
Polynorm Bunschoten, NL Polynorm Plastics, GLOBAL NETWORK Roosendaal, NL Rotec, Halmstad, SE Polynorm Engineering, Matzner, Bissendorf, D Worthing, UK BUSINESS YEAR 2002/03 – 1st HALF Rotec, Bergkvara, SE Elmsteel, Hinckley, UK Rotec Zentrale-Vertrieb, Polynorm Plastics, Monheim, D ST. Helens, GB Ma
Slide 22: Market View
MARKET VIEW BUSINESS YEAR 2002/03 – 1st HALF Polynorm Growing demand of component - "Competence to complement" support throughout the entire automotive model lifecycle Rotec Growing market for innovative "Partner for individual solutions" and complex solutions around tubular precision products Europ
Slide 23: Integration Update
INTEGRATION UPDATE 2000 2001 2002 2003 2004 BUSINESS YEAR 2002/03 – 1st HALF Rotec X Turinauto X Euroweld X Polynorm X Matzner X voestalpine Financial criteria Investor Relations Integration EV/Sales £ 0.7 Acquisition EBIT ³ 7% (mid term) November 2002 X 1st consolidation in P&L ROCE ³ 15% (mid term
Slide 24: Value Chain Network – Door Module
voestalpine 24 BUSINESS YEAR 2002/03 – 1st HALF competence Material & Processing VALUE CHAIN NETWORK – "DOOR MODULE" November 2002 Investor Relations
Slide 25: Financial Data & Sales Breakdown
FINANCIAL DATA & SALES BREAKDOWN BUSINESS YEAR 2002/03 – 1st HALF 1H 01/02 1H 02/03 Sales Breakdown by Industries Sales €m 89 340.0 1H 2002/03 EBITDA €m 9 33.3 Civil & Construction Mechanical % Sales 10.7% 9.8% Engineering Subsupplier 3% EBIT €m 3 11.6 Other 3% 14% 80% % Sales 3.1% 3.4% Employees 66
Slide 26: Division Profilform
DIVISION PROFILFORM ONE STEP AHEAD voestalpine
Slide 27: Market View
MARKET VIEW BUSINESS YEAR 2002/03 – 1st HALF voestalpine Krems Profitability on record level „The tube & section powerhouse“ high shipments of tubes Sadef Positive development in all business „The solution provider“ areas Metsec Stable building market „The building components company“ Roll Forming C
Slide 28: Market View (cont'd)
MARKET VIEW (cont'd) BUSINESS YEAR 2002/03 – 1st HALF voestalpine Präzisionsprofil Integration of Schmolz & Bickenbach „The profil-boutique“ voestalpine Profilform Our presence in Central Europe „The JUNIOR-building company“ voestalpine Krems Finaltechnik Strong market in safety guards „The fine pro
Slide 29: Asset Deal Schmolz & Bickenbach
ASSET DEAL SCHMOLZ & BICKENBACH BUSINESS YEAR 2002/03 – 1st HALF Expansion in the German market Sales boosted to 30 €m after the asset deal completion, from 8 €m currently Target sales for Germany: 50 €m Details Asset-Deal Integrating know-how, personnel and machinery in the Profilform division (voe
Slide 30: Financial Data & Sales Breakdown
FINANCIAL DATA & SALES BREAKDOWN BUSINESS YEAR 2002/03 – 1st HALF 1H 01/02 1H 02/03 Sales Breakdown by Industries Sales €m 228 210.4 1H 2002/03 EBITDA €m 30 33.8 % Sales 13.3% 16.1% Storage Construction & Trade Subsupplier Automotive EBIT €m 18 21.1 18% 39% 15% 15% 13% % Sales 7.9% 10.1% Civil & Emp
Slide 31: Financial Review
FINANCIAL REVIEW ONE STEP AHEAD voestalpine
Slide 32: Consolidated Overview
CONSOLIDATED OVERVIEW BUSINESS YEAR 2002/03 – 1st HALF 1H 01/02 1H 02/03 Change Sales €m 1,644 2,009.9 +22% EBITDA €m 201 227.0 +13% % of Sales 12.2% 11.3% EBIT €m 87 90.6 +4% % of Sales 5.3% 4.5% Net Profit* €m 9 12.0 +32% Equity €m 1,518 1,728.7 +14% voestalpine Investor Relations Investment €m 18
Slide 33: Operating Profit – Change
OPERATING PROFIT - CHANGE 1H 2002/03 vs 1H 2001/02 BUSINESS YEAR 2002/03 – 1st HALF +16 €m +12 €m 91 €m 87 €m - 20 €m - 4 €m EBIT EBIT Acquisitions Volume Price/Mix Cost voestalpine TSTG, Polynorm, Increase Net effect Net effect Investor Relations Railpro 1H 2001/02 1H 2002/03 November 2002 33 Finan
Slide 34: Net Debt & Equity – Gearing
NET DEBT & EQUITY - GEARING BUSINESS YEAR 2002/03 – 1st HALF 1729 1530 1564 1430 1344 1272 71% 1022 944 52% 721 669 42% 603 624 40% 427 347 23% 19% 286 20% 252 218 244 18% 197 16% 133 10% voestalpine Investor Relations 1993 1994 1995 1996 97/98 98/99 99/00 00/01 01/02 1H02/03 November 2002 Net Debt
Slide 35: Consolidated Profitability
CONSOLIDATED PROFITABILITY BUSINESS YEAR 2002/03 – 1st HALF Structural increase in profitability 16 EBITDA (% Sales) Target >14% 14 Ø 13% 12 Ø 11% 10 voestalpine 8 Investor Relations 6 November 2002 mid term 88 89 90 91 92 93 94 95 96 97/98 98/99 99/00 00/01 01/02 02/03E 35 Financial Review
Slide 36: Value Enhancing Policy
VALUE ENHANCING POLICY BUSINESS YEAR 2002/03 – 1st HALF ROCE Development ROCE-Targets 16% > 15% 14% > 12% Enhanced ROCE via 12% 12% Value enhancing ROCE % 10% acquisitions 11% 9% 8% 9% Efficient asset 8% management 6% 6% Well monitored voestalpine 4% CAPEX-program Investor Relations 2% 0% November 2
Slide 37: voestalpine Value Targets
voestalpine VALUE TARGETS BUSINESS YEAR 2002/03 – 1st HALF STABILITY VALUE – ENHANCING Basel II ROCE ³ 12 % covenants ATTRACTIVE PROFITABILITY DIVIDEND EBITDA ³ 14 % Payout-Ratio ³ 30 % voestalpine Investor Relations GROWTH Sales > 5 €bn November 2002 37 Financial Review
Slide 38: IR Contact
Reuters VAST.VI Bloomberg VAST AV Datastream O:VAS IR Contact Michael Kirchsteiger E-mail michael.kirchsteiger@voestalpine.com Phone +43 / 70 / 6585-5665 Wolfgang Lemberger E-mail wolfgang.lemberger@voestalpine.com Phone +43 / 70 / 6585-9949 ONE STEP AHEAD
Slide 39: Business Year 2002/03 – 1st Half
BUSINESS YEAR 2002/03 – 1st HALF Investor Relations November 2002 ONE STEP AHEAD