DEBT INVESTOR UPDATE BUSINESS YEAR 2020/21 - voestalpine AG www.voestalpine.com
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DEBT INVESTOR UPDATE BUSINESS YEAR 2020/21 voestalpine AG www.voestalpine.com
voestalpine GROUP
STRATEGY UPDATE
» Stabilization of balance sheet remains an important goal but strategy with value
added growth comes back into focus
» The backbone of the voestalpine-strategy is the combination of metallurgical
expertise and processing know-how in order to manufacture premium products
and system solutions made of steel and other metals
» In order to realize value enhancing growth, we focus on
» Technological leadership in markets with high quality requirements
» Development of new products and solutions together with our customers, predominantly in
our downstream segments
» Digitalization of our internal processes as well as digital interconnection with our customers
» Climate protection is an integral part of voestalpine‘s strategy
voestalpine AG
2 | June 2021 | Debt Investor Relations
voestalpine GROUP CORPORATE RESPONSIBILITY » We are committed to global climate goals and we have a consistent, long-term strategy to directly avoid CO2 emissions: “greentec steel” » By 2030: hybrid concept » Incremental shift from blast furnace route to steel production using green electricity » Potential to reduce CO2 emissions by around 30% » By 2050: focus on green hydrogen » Long-term increase of green electricity and green hydrogen » CO2-neutral production feasible » We hold a patent for CO2 neutral DRI/HBI production, based on hydrogen, which is valid in all relevant European countries » Corporate responsibility is one of the basic principles of our decisions voestalpine AG 3 | June 2021 | Debt Investor Relations
voestalpine GROUP
GLOBAL FOOTPRINT
One Group – 500 sites – 50 countries – 5 continents
voestalpine AG
4 | June 2021 | Debt Investor Relations
voestalpine GROUP
SHAREHOLDER STRUCTURE
Ownership structure according to regions (Figures as of March 31, 2021)
Major individual shareholders (as of March 31, 2018)
Raiffeisenlandesbank Oberösterreich Invest GmbH & Co KG < 15 %
voestalpine employee shareholding scheme 14.8 %
Oberbank AG 8.0 %
voestalpine AG
5 | June 2021 | Debt Investor Relationsvoestalpine GROUP
SOLID PERFORMANCE IN A CYCLICAL BUSINESS
EBITDA margin (%) by divisions EBITDA margin (%) voestalpine AG vs. European competitors
Lower volatility in earnings
30,0 30,0 and higher profitability than
Steel-Peer competitors!
20,0 20,0
10,0 10,0
0,0 0,0
-10,0 -10,0
-20,0 -20,0
-30,0 -30,0
Q1/2010
Q1/2011
Q1/2012
Q1/2013
Q1/2014
Q1/2015
Q1/2016
Q1/2017
Q1/2018
Q1/2019
Q1/2020
Q1/2021
Q1/2010
Q1/2011
Q1/2012
Q1/2013
Q1/2014
Q1/2015
Q1/2016
Q1/2017
Q1/2018
Q1/2019
Q1/2020
Q1/2021
voestalpine Group Steel Division
voestalpine AG Steel-Peer-Group
High Performance Metals Division Metal Engineering Division
voestalpine AG
6 | June 2021 | Debt Investor Relationsvoestalpine GROUP
HIGHLIGHTS OF THE BUSINESS YEAR 2020/21
» The business year 2020/21 was determined by the spread of the Corona Virus pandemic
» After the slump at the beginning of the business year, the economy recovered quickly
» First priority was health and safety of our employees
» We immediately implemented safety concepts and hygiene standards
» A crisis-related booking of impairment charges was necessary in BY 2020/21
» Crisis management proved successful
» We were able to supply our customers at any point of time
» As a result, we reached an EBITDA of 1.1 bn EUR
» Each of the Divisions contributed to this success and delivered a positive EBIT in BY 2020/21
» With a Free Cash Flow of more than 1 bn EUR, we reduced Net Debt to 2.7 bn EUR and reached our Gearing target
of below 50%
» This success is a merit of all voestalpine employees and the whole management team
voestalpine AG
7 | June 2021 | Debt Investor RelationsBUSINESS DEVELOPMENT BY 2020/21 voestalpine AG 8 | June 2021 | Debt Investor Relations
voestalpine GROUP
COMPANY STRUCTURE AND MARKET POSITION
voestalpine Group (Revenue in BY 2020/21)
36% 19% 23% 22%
Steel High Performance Metals Metal Engineering Metal Forming
Division Division Division Division
Global quality leadership Global leadership Global leadership Global leadership
Global quality leadership in Worldwide leadership in tool Global market leader in Global market leader in defined
highest quality steel strip and steel, leading position in high- railway systems; European niches with highest quality
market leader in heavy plate and speed steel, aircraft, special technology leader in demands supplying metal
foundry products for the most forgings and powder Premium wire products; and processing solutions with a
sophisticated energy technology. Innovation leader Preferred provider of high-tech global network for generating
applications. in additive manufacturing. seamless tubes for the oil & best possible customer value.
Natural gas industry as well as
for industrial applications.
voestalpine AG
More information about voestalpine‘s business models and facts is available online:
9 | June 2021 | Debt Investor Relations https://www.voestalpine.com/group/static/sites/group/.downloads/de/aktie/praesent
ation/2020-21-business-model-and-facts-voestalpine-group.pdfSTEEL DIVISION
BUSINESS DEVELOPMENT BY 2020/21
» Quick recovery of European steel markets in Q1 Q2 Q3 Q4 BY BY Delta
€m
H2 2020/21 20/21 20/21 20/21 20/21 20/21 19/20 in %
» Restart of idled blast furnace in September
2020, full utilization of flat steel facilities since Revenue 835 996 1,126 1,260 4,217 4,571 -7.7
then
EBITDA 68 93 131 194 487 494 -1.5
» Strong demand and high iron ore prices
triggered rising steel prices and earnings
recovery EBITDA-% 8.2% 9.4% 11.7% 15.4% 11.5% 10.8%
» Current situation
EBIT -14 -155 49 129 9.2 -101
» Demand still strong, inventories low and steel prices
rising
EBIT-% -1.6% -15.6% 4.4% 10.2% 0.2% -2.2%
» Order books reaching into FQ3 21/22
voestalpine AG
10 | June 2021 | Debt Investor RelationsHIGH PERFORMANCE METALS DIVISION
BUSINESS DEVELOPMENT BY 2020/21
» Tool Steel
Q1 Q2 Q3 Q4 BY BY Delta
» Recovery in tool steel business in Europe and North €m
20/21 20/21 20/21 20/21 20/21 19/20 in %
America predominantly in FQ4 20/21, China with
solid demand throughout BY 2020/21 Revenue 527 534 572 666 2,300 2,891 -20.4
» Special Materials
» Signs of recovery in oil and gas industry since end EBITDA 40 36 55 83 214 276 -22.3
of BY 2020/21
» Aerospace industry on low level, gradually EBITDA-% 7.7% 6.8% 9.6% 12.4% 9.3% 9.5%
improving
» Value-Added-Services growing in BY 2020/21 EBIT -2 -5 15 40 49 77 -36.3
» Current situation
EBIT-% -0.3% -0.9% 2.6% 6.1% 2.1% 2.6%
» Recovery gaining traction in Europe, sound
demand in North America and China
voestalpine AG
11 | June 2021 | Debt Investor RelationsMETAL ENGINEERING DIVISION
BUSINESS DEVELOPMENT BY 2020/21
» Railway Systems basically unaffected from COVID-
crisis, solid development in BY 2020/21 €m
Q1 Q2 Q3 Q4 BY BY Delta
20/21 20/21 20/21 20/21 20/21 19/20 in %
» Wire Technology hit by bullwhip effect in
automotive supply chain and started recovery Revenue 669 667 624 708 2,667 2,942 -9.3
somewhat delayed in FQ4 20/21
» Low demand from oil & gas business pressured EBITDA 55 56 47 72 230 301 -23.7
Seamless Tubes segment in BY 2020/21, recovery
started in FQ4 20/21 EBITDA-% 8.2% 8.3% 7.6% 10.2% 8.6% 10.2%
» Solid performance of Welding business in
BY 2020/21 EBIT 10 -20 2 24 16 33 -50.5
» Current situation
» Ongoing recovery in Wire Technology and Seamless EBIT-% 1.5% -3.0% 0.3% 3.4% 0.6% 1.1%
Tubes business, seasonal demand improvement in
Railway Systems, Welding staying solid
voestalpine AG
12 | June 2021 | Debt Investor RelationsMETAL FORMING DIVISION
BUSINESS DEVELOPMENT BY 2020/21
» Automotive Components hit hard by production
Q1 Q2 Q3 Q4 BY BY Delta
shutdowns in FQ1, rebound in FQ2 and further €m
20/21 20/21 20/21 20/21 20/21 19/20 in %
recovery in H2 2020/21
» Similar pattern in Tubes & Sections: strong demand Revenue 456 637 666 795 2,554 2,838 -10.0
from solar, commercial vehicle and storage
technology in H2 2020/21 EBITDA 15 66 70 124 274 203 34.7
» Performance of Precision Strip on solid levels
» Business of Warehouse & Rack Solutions benefit EBITDA-% 3.2% 10.3% 10.5% 15.6% 10.7% 7.2%
from e-commerce boom
» Current situation EBIT -21 31 34 80 124 9
» High demand in almost all market segments
» Hick-ups in automotive business (semiconductors) EBIT-% -4.5% 4.8% 5.2% 10.0% 4.9% 0.3%
» Sourcing of steel is challenging (supply constraints)
voestalpine AG
13 | June 2021 | Debt Investor RelationsKEY FINANCIALS BY 2020/21 voestalpine AG 14 | June 2021 | Debt Investor Relations
voestalpine GROUP
FINANCIAL OVERVIEW
BY 2019/20 BY 2020/21 Delta
2019/04/01-2020/03/31 2020/04/01-2021/03/31 %
Revenue 12,717 11,267 -11.4
EBITDA 1,182 1,135 -4.0
EBITDA margin 9.3% 10.1%
EBIT -89 115
EBIT margin -0.7 % 1.0%
Profit before tax -230 11
Profit after tax* -217 32
EPS – earnings per share (euros) -1.24 0.24
In millions of euros
* Before deduction of non-controlling interests and interest on hybrid capital.
voestalpine AG
15 | June 2021 | Debt Investor Relationsvoestalpine GROUP
DEVELOPMENT CASH FLOW
BY 2019/20 BY 2020/21
2019/04/01-2020/03/31 2020/04/01-2021/03/31
Cash flow from results 870 1,001
Changes in working capital 434 633
Cash flow from operating activities 1,304 1,634
Cash flow from investing activities -716 -582
Free cash flow 588 1,052
In millions of euros
voestalpine AG
16 | June 2021 | Debt Investor Relationsvoestalpine GROUP
DEVELOPEMENT GEARING RATIO
Figures in millions of euros
6,710
6,554
6,060
5,652 5,615 5,650
5,262
5,075 5,115
4,289 4,263
4,691 4,836
4,262
83% 88%
3,572 3,775
3,762
71% 2,713
2,978 3,221 3,125 2,743
2,882 3,037
2,586 3,080
2,995
67%
1,786 2,547 58% 2,259 2,421 58%
54% 55% 53%
2,125
47% 1,853 46% 47% 49%
45% 46%
34% 32%
831
635 684 526
377 18%
15%
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Net Debt (€m) Equity (€m) Gearing ratio (%)
voestalpine AG
17 | June 2021 | Debt Investor Relationsvoestalpine GROUP
DEVELOPEMENT NET DEBT / EBITDA
Figures in millions of euros
3,762 3,775 4,0
3,572
3,5
3,221 3,125
3,037 3.0 3,080 2,995 3.2
2,713 2,978
2,743 3,0
2,586
2,421
2,259
2.4 2,5
1.9 2.2 1.9 2.1
2.0 1.9 1,954 2.0
1,837 1,710 1.8 2,0
1.7 1.6
1.6 1,530 1,583 1,541 1,565
1,359 1,606 1,374
1,302 1,431 1.5
1,182
1,5
1,079 1,135
1.1 1,004
831 888
684
1,0
635 0.8 526
517 558
377 0,5
0.3 0.4
0,0
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Net Debt (€m) EBITDA Net Debt / EBITDA
voestalpine AG
18 | June 2021 | Debt Investor Relationsvoestalpine GROUP
FINANCING PORTFOLIO
The financing strategy of voestalpine focuses on a Instrument Volume €m Maturity
well balanced financial structure using a broad Schuldscheindarlehen 674 various
range of financing instruments! Senior Bonds 1,400 2021, 2024, 2026
13% Committed credit lines (undrawn) 1,080 mainly 2024
15%
Syndicated loan facility (drawn) 0 2024
Export financing facilities 541 various
Bilateral loan facilities 667 various
13%
Other financing facilities 785 Various
27%
Schuldscheindarlehen Figures in millions of euros as of 2021/03/31
Senior Bonds
Committed Credit Lines (undrawn)
11% The documentation is in line with investment
Syndicated Loan Facility (drawn)
grade standards and contains no pledges of
Export Financing Facilities
0% assets or financial covenants.
Bilateral Loan Facilities
21%
Other Financing Facilities
voestalpine AG
19 | June 2021 | Debt Investor Relationsvoestalpine GROUP
LIQUIDITY AND REDEMPTION SCHEDULE
LIQUIDITY REDEMPTION
2,452
1080
212 Committed lines
Financial assets
1160 986 1153
Cash 723
411
85
Liquidity 2021/22 2022/23 2023/24 2024/25 further
Figures in millions of euros as of 2021/03/31
voestalpine AG
20 | June 2021 | Debt Investor Relationsvoestalpine GROUP OUTLOOK BUSINESS YEAR 2021/22 » We expect the current upward trend of the broad economy to continue at least until the end of calendar year 2021 » The massive economic stimulus packages in the EU and the US should support the economy also in the medium term » Nevertheless, the COVID-crisis and its economic effects are not entirely overcome » High management attention on cash flow and balance sheet continues, but strategy and value added growth projects come back on the agenda » Assuming no unexpected distortions of the market, we expect to reach an EBITDA for BY 2021/22 between 1.6 and 1.9 billion EUR voestalpine AG 21 | June 2021 | Debt Investor Relations
DEBT INVESTOR RELATIONS Günther Pastl Daniel Huber T. +43/50304/15-3830 T. +43/50304/15-2928 guenther.pastl@voestalpine.com daniel.d.huber@voestalpine.com voestalpine AG www.voestalpine.com
voestalpine GROUP DISCLAIMER These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. These materials contain forward-looking statements based on the currently held beliefs and assumptions of the management of voestalpine AG, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of voestalpine AG, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. voestalpine AG disclaims any obligation to update these forward- looking statements to reflect future events or developments. voestalpine AG 23 | June 2021 | Debt Investor Relations
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