BUSINESS YEAR 2019/20 Press Conference: June 3, 2020 Welcome! - PowerPoint PPT Presentation

BUSINESS YEAR 2019/20 Press Conference: June 3, 2020 Welcome! voestalpine AG www.voestalpine.com

BUSINESS YEAR 2019/20 ENVIRONMENT & HIGHLIGHTS voestalpine AG | | 2 06/03/2020 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/2020 ECONOMIC ENVIRONMENT Europe: Weak USMCA: Economic performance of manufacturing downturn during the China/Asia: Steep industry business year downturn in growth due to trade wars Brazil: Solid development voestalpine AG | | 3 06/03/2020 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/20 CHALLENGING ECONOMIC ENVIRONMENT External Factors Consequences/Measures » Global economic downturn / » Impairment losses global trade wars (incl. U.S. » Programs to cut costs and boost Section 232 tariffs) efficiency » Decrease in automotive » Reduction in investments production » Cash flow optimization and » Rising raw material prices in the inventory reductions face of low steel prices » Covid-19 pandemic voestalpine AG | | 4 06/03/2020 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/20 KEY FIGURES » Revenue: EUR 12.7 billion ( – 6.2%) » EBITDA: EUR 1.2 billion ( – 24.5%) » EBIT: EUR – 89 million ( – 111.4%) » Total number of employees: 49,700 ( – 4.3%) » Dividend: EUR 0.20* ( – 81.8%) *) As proposed to the Annual General Meeting voestalpine AG | | 5 06/03/2020 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/20 STEPS TAKEN SHOW RESULTS » At EUR 1.2 billion, operating result (EBITDA) is clearly positive » Cash flows from operating activities rise to EUR 1.3 billion (+11.8%) » Free cash flow: EUR 588 million » Successful reduction in working capital by EUR 434 million » Available liquidity: EUR 1.7 billion voestalpine AG | | 6 06/03/2020 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/20 FINANCIAL KEY FIGURES voestalpine AG | | 7 06/03/2020 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/20 OVERVIEW OF KEY FIGURES In millions of euros BY 2018/19 BY 2019/20 Change (in %) 13,561 12,717 -6.2 Revenue 1,565 1,182 -24.5 Operating result (EBITDA) Profit from operations (EBIT) 779 -89 -111.4 Profit before tax (EBT) 646 -230 -135.7 Profit after tax (surplus/loss for the year) *) 459 -216 -147.2 2.31 -1.24 -153.7 Earnings per share 1.10 0.20 **) -81.8 Dividend per share 51,907 49,682 -4.3 Employees (full-time equivalents) *) Before deduction of non-controlling interests and interest on hybrid capital **) As proposed to the Annual General Meeting voestalpine AG | | 8 06/03/2020 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/20 DEVELOPMENT OF THE GEARING RATIO 8000 80% 6710 7000 6554 70% 67% 71% 6060 58% 54% 5652 5615 6000 60% 53% 4836 5261 58% 5115 47% 5075 46% 46% 4691 5000 53% 50% 4262 3775 45% 4000 40% 3221 3125 3080 3037 2978 2995 2713 2586 3000 30% 2421 2259 2000 20% 1000 10% 0 0% 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Net financial debt (in EUR million) Equity (in EUR million) Gearing ratio in % voestalpine AG | | 9 06/03/2020 Press Conference: Business Year 2019/20

HIGHLIGHTS FROM THE DIVISIONS voestalpine AG | | 10 06/03/2020 Press Conference: Business Year 2019/20

STEEL DIVISION BUSINESS YEAR 2019/20 » Decline in steel prices, simultaneous increase in raw materials prices » Price/cost ratio offset in part through long-term customerrelationships and countermeasures » Currently: Action package for overcoming Covid-19 crisis economically » New technology: “Smart” steel strips » Steel with integrated conductive paths » Start-up of world’s largest pilot plant for “green” hydrogen voestalpine AG | | 11 06/03/2020 Press Conference: Business Year 2019/20

HIGH PERFORMANCE METALS DIVISION BUSINESS YEAR 2019/20 » Oil & natural gas / aerospace: positive performance through Q3; decline from Q4 » Decline in demand for tool steel » Visible stabilizing of market in China » Metal additive manufacturing expands globally » Construction of new special steel plant in Kapfenberg, Austria, to continue until 2021 voestalpine AG | | 12 06/03/2020 Press Conference: Business Year 2019/20

METAL ENGINEERING DIVISION BUSINESS YEAR 2019/20 » Railway Systems » Solid order levels (esp. in Europe, China as well as Australia, India) » Second turnout system joint venture in China (entry into mass transit sector) » Successful localization in France also » Novelty worldwide: low-maintenance tracks » Industrial Systems » Decline in wire and seamless tube market » Welding technology stabilizes (full-service provider through acquisition of welding machine manufacturer) voestalpine AG | | 13 06/03/2020 Press Conference: Business Year 2019/20

METAL FORMING DIVISION BUSINESS YEAR 2019/20 » Weak economy leads to lower revenue particularly in automotive sector » Continued robust demand for automated storage technology/ e-commerce » Example of innovation: Laser- welded multi-material special strip products for use in electronic components voestalpine AG | | 14 06/03/2020 Press Conference: Business Year 2019/20

OUTLOOK BUSINESS YEAR 2020/21 voestalpine AG | | 15 06/03/2020 Press Conference: Business Year 2019/20

voestalpine GROUP COVID-19 ECONOMIC CRISIS » Employees’ health has highest priority » Strict Group-wide hygiene and distancing rules » Incremental return to “normal operations” » Meltdown in demand in key customer segments » Rapid recovery in China » Railway systems and storage systems are stable segments » Capacity reductions and temporary production shutdowns » Short time work: 10,400 employees in Austria, about 3,000 in Germany » Internationally, 2,400 employees subject to schemes similar to short time work voestalpine AG | | 16 06/03/2020 Press Conference: Business Year 2019/20

OUTLOOK BUSINESS YEAR 2020/21 KEY EARNINGS FACTORS Market environment Measures to stabilize earnings » Economic meltdown/lockdown in » Cost and working capital Q1 of business year 2020/21 management » Cash flow generation » Improvement likely in 2nd half of business year 2020/21 » Investments less than depreciation (about EUR 600 million) » Economic environment remains volatile » 2020/21 Outlook: EBITDA between EUR 600 million and EUR 1 billion voestalpine AG | | 17 06/03/2020 Press Conference: Business Year 2019/20

QUESTIONS WELCOMED FROM JOURNALISTS VIA THE FOLLOWING CHANNELS PHONE PATCH FOR JOURNALISTS » +43 (0)1 928 7932 » Confirmation code: 2093683 mediarelations@voestalpine.com #voestalpinemedia voestalpine AG | | 18 06/03/2020 Press Conference: Business Year 2019/20

BUSINESS YEAR 2019/20 Press Conference: June 3, 2020 voestalpine AG voestalpine AG www.voestalpine.com