1 st Half 2014/15 Press Conference, November 5, 2014 Welcome! voestalpine AG voestalpine AG www.voestalpine.com
voestalpine Group Business model (I) High-tech steel as the basis – also processing of other materials (titanium, aluminum, …) Consistent "downstream strategy" technology and capital goods group (two thirds of revenue) Combination of top metallurgical know-how and leading processing expertise new technological solutions and innovative products Global market, quality, and technology leadership in the core business segments voestalpine AG 2 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine Group Business model (2) Focus: markets with highest technology and quality demands mobility and energy (62% of revenue) Long-term R&D partnerships with customers and scientific partners as the key to innovation Industry benchmark in Europe for environmental standards, resource efficiency and earnings 500 Group companies and sites - 50 countries - 5 continents voestalpine AG 3 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine Group Results and Highlights 1st Half 2014/15 voestalpine AG 4 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine Group 1st Half 2014/15 - Highlights Revenue at EUR 5.6 billion only slightly below previous year (-1.5%) EBITDA rose to EUR 757 million (+11.2%), EBIT to EUR 445 million (+ 12.2%) EBITDA positively influenced by non-recurring effects of EUR 67 million, EBIT of EUR 45 million ( sale of Flamco/Plastics) Profit before tax increased from EUR 312 million to EUR 392 million (+ 25.5%) and for the period from EUR 238 million to EUR 324 million (+ 35.9%) Also after adjustment for non-recurring effects: profit before tax increased by 11%, profit for the period by 17.7% Gearing ratio increased from 47% to 59% due to calling of hybrid bond 2007 (EUR 500 million) Start of construction for the direct reduction plant in Texas in July voestalpine AG 5 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine Group 1st Half 2014/15 - Market Environment Inconsistent global economic trend Growth in Europe (eurozone) loses momentum over the H1 2014/15 Stable growth in the USA – driver of global economic growth China stable with 7% growth course Brazil and Russia with continued slow development voestalpine Group business performance stable in a volatile environment voestalpine AG 6 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine Group Overview of key figures (values rounded) Change Adjusted BY 2013/14 H1 2013/14 H1 2014/15 In millions of euros (in %) H1 2014/15 Revenue 5,643 5,561 -1.5 5,561 11,228 Operating result (EBITDA) 680 757 1,383 11.2 690 EBITDA margin (%) 12.1 13.6 12.3 12.4 Profit from operations (EBIT) 792 396 445 12.2 400 EBIT margin (%) 7.1 7.0 8.0 7.2 Profit before tax (EBT) 312 392 25.5 347 656 Profit for the period 238 324 523 35.9 281 Gearing ratio (%) 45.8 46.8 58.8 Employees (full-time 48,113 47,126 47,379 0.5 equivalent) voestalpine AG 7 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine Group Gearing ratio 5,261 Net Debt ( € m) 5,075 4,932 4,836 4,691 Equity ( € m) 4,289 4,263 4,262 Gearing Ratio (%) 3,762 3,572 88% 83% 3,037 2,899 2,882 2,713 71% 2,586 2,547 2,421 2,259 59% 2,125 58% 1,786 54% 1,853 46% 45% 47% 34% 32% 831 684 635 526 18% 377 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 H1 2014/15 voestalpine AG 8 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine Group Position: EU climate and energy policies 2030 voestalpine AG 9 | 11/5/2014 | 1st Half of Business Year 2014/15
EU climate and energy policies 2030 Goals Reduction of greenhouse gas emissions at overall EU level by at least 40% against 1990 Reduction of greenhouse gas emissions for sectors subject to emissions trading by 43% against 2005 Increase share of renewable energies against 1990 to at least 27% Energy savings of at least 27% against 1990 (indicative, i.e., due to be revised in 2020, although target of 30% remains; member states can also set higher targets at national level) Relief for "poorer" EU member states voestalpine AG 10 | 11/5/2014 | 1st Half of Business Year 2014/15
EU climate and energy policies 2030 Evaluation (1) + Free allocation remains (extent still to be defined) to 2030 In future the (currently unrealistic) benchmark values for free allocation will be periodically examined; therefore allocations can also be reduced at any time + The best facilities in each sector should not be subject to any "undue" direct and indirect costs which result in the loss of international competitiveness and lead to the relocation of production ("carbon leakage") However, it is unclear how this formulation ("inappropriate, illegitimate, excessive") should be interpreted + Commitment to protect industry from carbon leakage, also after 2020, where no comparable climate protection regulations are in place in other global economic regions voestalpine AG 11 | 11/5/2014 | 1st Half of Business Year 2014/15
EU climate and energy policies 2030 Evaluation (2) + Fundamental commitment to continuance of industry in Europe and consideration of international climate protection agreements But: goals and partly also liabilities will be precisely quantified, however, relief measures remain vague + Council remains involved and instructs Commission to maintain constant dialog with all those affected Further arrangement and specification of the framework, as well as more precisely defined protective measures, will be decisive for the final evaluation This applies in particular to the drawing up of the allocation mechanism (goal: 100 % free allocation for the best 10% of facilities, i.e., with no deductions) voestalpine AG 12 | 11/5/2014 | 1st Half of Business Year 2014/15
CO 2 emissions 2000 2012 Share by region in % Source: Cologne Institute for Economic Research IW Consult, International Energy Agency, BP 30 26.7 25.1 25 20 17.1 16.8 13.5 15 11.5 10 6.1 5.3 5.3 4.9 4.1 3.8 5 2.2 2.1 1.5 1.4 1.4 1.1 0 USA Australia Russia China India Brazil South Korea Japan EU voestalpine AG 13 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine as benchmark – international comparison CO 2 blast furnace process based on carbon input (in kg/t crude steel) 1750 Source: EBFC - European Blast Furnace Committee – 2013 1700 1650 1600 Blast furnaces European competitors 1550 2014 voestalpine (Linz and Donawitz) 1500 1450 1400 Currently unrealistic benchmark value for free 1350 allocation: 1,328 kg/t! 1300 voestalpine AG 14 | 11/5/2014 | 1st Half of Business Year 2014/15
CO 2 emissions trading: effects on voestalpine 100% 3% ? 90% ...and yet to date voestalpine is the only steel 28% company in the EU that is a net payer within the 80% ? emissions trading system! 70% Purchase requirement increases during the period from 2013 to 2020 by 3% to 28% (= 28 million 60% certificates). Actual cost burden depends on CO 2 price. 50% According to current planning assumptions (i.e., with 40% existing allocation mechanism and continuation of ? current carbon leakage protection) we can assume a 30% further, massive increase in the period 2021 to 2030. 20% However, after the Council commitments these should be improved. The precise effects now depend on the 10% 20 further design of the emissions trading system and 0% therefore cannot currently be quantified precisely. 2008-2012 2013-2020 2021-2030 Purchase Max. additional costs requirement for in million euros voestalpine AG certificates in % 15 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine Group Outlook BY 2014/15 voestalpine AG 16 | 11/5/2014 | 1st Half of Business Year 2014/15
voestalpine Group Outlook Conflicts in the Near and Middle East and Russia/Ukraine are putting increasing pressure on economic development in Europe – recovery delayed Only moderate level of voestalpine Group activity in conflict regions (< 2% of overall revenue) USA and China remain strong with stable growth Brazil and Russia with continued economic problems Expectations for several large customer segments (construction industry, mechanical engineering industry) more reserved than at start of the BY 2014/15 Even so: solid development across all four divisions for the remaining six months – largely full capacity utilization expected Outlook for the BY 2014/15 unchanged despite increasingly challenging environment: Expectation: Results (EBITDA, EBIT) slightly above BY 2013/14 voestalpine AG 17 | 11/5/2014 | 1st Half of Business Year 2014/15
1 st Half 2014/15 Press Conference, November 5, 2014 voestalpine AG voestalpine AG www.voestalpine.com
Recommend
More recommend
