Voestalpine Ag · VIE:VOE
Voestalpine — Q3 BY 2017/18 Earnings Presentation
22 slides from Voestalpine's earnings presentation, February 2018
Slide 1: Business Year 2017/18 3rd Quarter
BUSINESS YEAR 2017/18 3 QUARTER rd Investor Relations February 2018 voestalpine AG www.voestalpine.com
Slide 2: Overview – Business Model
voestalpine GROUP OVERVIEW – BUSINESS MODEL » 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 o
Slide 3: Global Footprint
voestalpine GROUP GLOBAL FOOTPRINT Revenue by regions (Business year 2016/17) One Group – 500 sites – 50 countries – 5 continents European Union 70% NAFTA 11% Asia 9% Rest of world 7% South America 3% Revenue by industries (Business year 2016/17) Automotive 34% Railway systems 12% Aerospace 3% MOBIL
Slide 4: Business Development – Summary
voestalpine GROUP BUSINESS DEVELOPMENT Q1-Q3 BY 2017/18 – SUMMARY » Significant boost of earnings compared to Q1-Q3 2016/17 » Steel business driving profitability high-tech steel-strategy paying off » Processing divisions with continuous growth and improving earnings downstream-strategy as solid
Slide 5: voestalpine Group & Divisions Q1-Q3 BY 2017/18
voestalpine GROUP & DIVISIONS Q1-Q3 BY 2017/18 (vs. Q1-Q3 BY 2016/17) voestalpine AG HIGH PERFORMANCE STEEL METAL ENGINEERING METAL FORMING METALS Sales €m 3,475 (+28.5%) Sales €m 2,135 (+9.5%) Sales €m 2,239 (+12.2%) Sales €m 1,998 (+13.9%) EBITDA €m 652 (+76.8%) EBITDA €m 329 (+15.6%) EBITDA €m 26
Slide 6: Steel Division Business Development Q1-Q3 BY 2017/18
STEEL DIVISION BUSINESS DEVELOPMENT Q1-Q3 BY 2017/18 » Tailwind from economic growth drives EU steel industry Q1 Q2 Q3 Q1-Q3 Q1-Q3 Delta €m » Steel imports still on high level but shift of trade flows 17/18 17/18 17/18 17/18 16/17 % » Easing price pressure from Chinese steel imports due to trade Rev
Slide 7: High Performance Metals Division Business Development
HIGH PERFORMANCE METALS DIVISION BUSINESS DEVELOPMENT Q1-Q3 BY 2017/18 » Broadly positive market sentiment €m Q1 Q2 Q3 Q1-Q3 Q1-Q3 Delta 17/18 17/18 17/18 17/18 16/17 % » Strong tool steel market, improving product mix » On-going recovery in onshore oil & gas sector, offshore Revenue 739 692 704 2,1
Slide 8: Metal Engineering Division Business Development
METAL ENGINEERING DIVISION BUSINESS DEVELOPMENT Q1-Q3 BY 2017/18 » Restrained demand situation in core segments Q1 Q2 Q3 Q1-Q3 Q1-Q3 Delta €m 17/18 17/18 17/18 17/18 16/17 % » Fierce price competition in European rail market, minor impulses from mining regions, project deferrals in Mid-East Revenue
Slide 9: Metal Forming Division Business Development
METAL FORMING DIVISION BUSINESS DEVELOPMENT Q1-Q3 BY 2017/18 » Automotive Components with on-going solid performance Q1 Q2 Q3 Q1-Q3 Q1-Q3 Delta €m » Further increasing car sales in Europe in CY 2017 17/18 17/18 17/18 17/18 16/17 % » Premium-class with strong performance in Europe and high incoming o
Slide 10: Financial Overview
FINANCIAL OVERVIEW Q1-Q3 BY 2017/18 voestalpine AG 10 | February, 2018 | Investor Relations
Slide 11: Financial Overview
voestalpine GROUP FINANCIAL OVERVIEW Q1-Q3 BY 2016/17 Q1-Q3 BY 2017/18 Delta 2016/04/01-2016/12/31 2017/04/01-2017/12/31 % Revenue 8,101 9,460 16.8 EBITDA 1,061 1,406 32.5 EBITDA margin 13.1% 14.9% EBIT 545 835 53.1 EBIT margin 6.7% 8.8% EBT 461 737 59.8 Net profit 344 556 61.6 EPS 1.86 2.95 58.6 In
Slide 12: voestalpine Group Q1-Q3 BY 2017/18 (vs. Q1-Q3 BY 2016/17)
voestalpine GROUP Q1-Q3 BY 2017/18 (vs. Q1-Q3 BY 2016/17) 1st quarter 2nd quarter 2nd quarter Q1-Q3 Q1-Q3 Delta 2017/18 2017/18 2017/18 2017/18 2016/17 % Revenue 3,252 3,051 3,158 9,460 8,101 +16.8 EBITDA 514 455 437 1,406 1,061 +32.5 EBITDA-margin 15.8% 14.9% 13.8% 14.9% 13.1% EBIT 329 255 250 835
Slide 13: Financial Overview
voestalpine GROUP FINANCIAL OVERVIEW Q1-Q3 BY 2016/17 Q1-Q3 BY 2017/18 Delta 2016/04/01-2016/12/31 2017/04/01-2017/12/31 % CAPEX* 711 527 -25.9 *) Fixed assets and acquisitions Depreciation 516 571 +10.7 Free Cash Flow -196 6 Equity 5,798 6,303 +8.7 Net Financial Debt 3,546 3,370 -5.0 Gearing 61.2%
Slide 14: Development EBIT Q1-Q3 2017/18
voestalpine GROUP DEVELOPMENT EBIT Q1-Q3 2017/18 654 835 88 32 545 -484 EBIT EBIT 8.8 % 6.7 % Q1-Q3 BY Price Raw Mix/ Misc. Q1-Q3 BY 2016/17 Materials Volume 2017/18 In millions of euros voestalpine AG 14 | February, 2018 | Investor Relations
Slide 15: Development Cash Flow
voestalpine GROUP DEVELOPMENT CASH FLOW Q1-Q3 BY 2016/17 Q1-Q3 BY 2017/18 2016/04/01-2016/12/31 2017/04/01-2017/12/31 Cash flow from results 863 1,180 Changes in working capital -264 -618 Cash flow from operating activities 599 562 Cash flow from investing activities -795 -556 Free cash flow -196 6
Slide 16: Development Gearing Ratio
voestalpine GROUP DEVELOPEMENT GEARING RATIO 6,303 6,060 5,652 5,262 5,075 5,115 4,289 4,263 4,691 4,836 4,262 3,572 83% 88% 3,762 3,370 71% 2,713 3,221 2,978 3,080 2,882 3,037 2,586 1,786 2,547 2,259 2,421 58% 58% 2,125 54% 55% 53% 54% 47% 1,853 46% 45% 34% 32% 831 635 684 526 377 18% 15% 2002/03 2
Slide 17: Liquidity and Redemption Schedule
voestalpine GROUP LIQUIDITY AND REDEMPTION SCHEDULE Liquidity Redemption 2,074 -471 700 -915 Committed lines 646 Financial assets -956 728 Cash In millions of euros -110 as of 2017/12/31 Q1 2017/18 2017/18 2018/19 2019/20 2020/21 voestalpine AG 17 | February, 2018 | Investor Relations
Slide 18: Global Economic Situation – Outlook 2018
voestalpine GROUP GLOBAL ECONOMIC SITUATION – OUTLOOK 2018 WORLD Global economic upturn still gaining traction, but increasing uncertainty because of protectionist measures EUROPE NORTH AMERICA Still robust growth across Satisfying fundamental the board data, but moderate momentum ASIA NEAR EAST & N
Slide 19: Outlook BY 2017/18
voestalpine GROUP OUTLOOK BY 2017/18 » Excellent economic environment with further increasing GDP growth rates on global level » BUT: Increasing uncertainties, in particular in the context of economic-political measures of the US administration » Strong demand in all essential customer segments » In
Slide 20: Investor Relations
INVESTOR RELATIONS Peter Fleischer Gerald Resch T. +43/50304/15-9949 T. +43/50304/15-3152 peter.fleischer@voestalpine.com gerald.resch@voestalpine.com voestalpine AG www.voestalpine.com
Slide 21: US Business
voestalpine GROUP US BUSINESS » voestalpine generates revenues in USA of ~ EUR 1 bn. (BY 2016/17) » About two third of total US-revenue is derived from domestic US production sites » HBI-plant, turnout production facilities, special sections plants, automotive components plants, etc. » About one thi
Slide 22: US Footprint 2016/17
voestalpine GROUP US FOOTPRINT 2016/17 Revenue: EUR 983 million » Empoyees: 2,698 FTEs Steel HPM Metal Metal Total Engineering Forming Revenue (BY 2016/17) 121 327 276 259 983 Revenue (BY 2017/18 173 280 283 225 961 Q1-Q3) Employees* 261 541 962 934 2,698 * FTEs Main segments: Energy 22 % Aerospace