Financial Year 2007/08 1st Half Investor Relations November 2007 voestalpine AG www.voestalpine.com
Leading market position – Record figures Profilform Steel Special Railw ay Automotive Systems Steel European Top European Worldw ide Worldw ide Top European leadership player leadership leadership player Sales EBITDA EBIT 1Q 2007/08 1,961 m€ 408 m€ 313 m€ 2Q 2007/08 excl. ppa* 2,788 m€ 543 m€ 419 m€ 1H 2007/08 excl. ppa* 4,749m€ 951 m€ 732 m€ ppa* Implications in Q2 - - 46 m€ - 120 m€ 2Q 2007/08 incl. ppa* 2,788 m€ 497 m€ 299 m€ 1H 2007/08 incl. ppa* 4,749 m€ 905 m€ 612 m€ *) preliminary purchase price allocation voestalpine AG | | 2 November 2007 Investor Relations
Highlights Division Steel Successful acquisition of Böhler-Uddeholm � � 80.3% stake as of September 30, 2007 � Integration well on track � 81 m€ Synergies defined – new target 100 m€ Division Railway Systems Successful launch of € 1 bn hybrid bond � Earnings on new record level – significant implications from � purchase price allocation Division Automotive � Profits of all 5 divisions on record level � EBITDA-margin: 19.1% 20.0% excl. ppa* � EBIT-margin: 12.9% 15.4% excl. ppa * Division Profilform Growth strategy & Portfolio optimization continued � � € 2 bn capex program Linz 2010 implemented � Acquisitions in Railway Systems and Profilform Division Division Special Steel *) purchase price allocation voestalpine AG | | 3 November 2007 Investor Relations
Growth track record , , , , 8.000 1.500 7,050 , , 6.000 1,013 , , 1.000 4,749 Sales (€m) EBIT (€m) , , 4.000 3,354 732* 612** 500 , 2.000 160 0 0 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 1H 2007/08 Sales EBIT FY 2001/02 FY 2006/07 1H 2007/08 EBIT margin 4.8% 14.4% 12.9% excl. ppa 15.4% *) excl. ppa Böhler-Uddeholm **) incl. ppa Böhler-Uddeholm voestalpine AG | | 4 November 2007 Investor Relations
Division Steel – business development 1st Half 07/08 � Favourable pricing environment in all business segments, solid high demand Division Steel in figures � Price increases realized EBIT EBIT Sales � Outstanding demand and price level in high quality (€m) (€m) (%) heavy plate due to energy business boom 1Q 965 187 19.4 FY 07/08 � “Linz 2010” capex program implemented 2Q 949 182 19.2 (€ 2 bn 2002-2007) FY 07/08 � New plants (Cold rolling mill 3, Hot dip galvanizing 1H 1,914 369 19.3 FY 07/08 line 4 and Walking beam furnace) on stream 1H 1,775 244 13.8 � “L6” capex program launched (€ 1 bn 2008-2010) FY 06/07 � New Steel Service Center in Poland in full operation, yoy in % +7.9 +51.2 ground breaking in Romania in December voestalpine AG | | 5 November 2007 Investor Relations
Division Special Steel – business development 1st Half 07/08 � Start of consolidation July 1 st (3 months) Division Special Steel in figures � Significant increase in sales and earnings Pre purchase price allocation � Sustainable high demand and favourable pricing EBIT EBIT Sales (€m) (€m) (%) environment in all Böhler-Uddeholm business segments 2Q � No seasonal summer effects 908 123 13.5 FY 07/08 � Increased volumes in all business units 2Q 752 102 13.6 FY 06/07 � Currency exchange rates hedged yoy in % +20.7 +20.6 � Successful start ups of new production facilities According to published CQ3 � Rolling mill at Villares / Brazil, screw press in Kapfenberg figures of Böhler-Uddeholm � Further investment program for capacity extensions, especially forging and remelting facilities voestalpine AG | | 6 November 2007 Investor Relations
Division Special Steel – Implications from preliminary purchase price allocation (PPA) � PPA is an obligatory measure due to IFRS 3 Division Special Steel in figures � Reduction of goodwill and impairment risk on balance sheet EBIT EBIT Sales (€m) (€m) (%) � Valuation of all assets and liabilities of Böhler-Uddeholm 2Q at fair value by independent expert 908 123 13.5 FY 07/08 � Identified Assets: Inventories, order backlog, customer ppa -120 relations, technology, fixed assets, land, brands 2Q 908 3 0.3 FY 07/08 � EBIT and EBITDA impact from depreciation and short term effects (inventories) � Annual effects are decreasing rapidly over time � EBITDA impact only until 1Q 08/09 voestalpine AG | | 7 November 2007 Investor Relations
Preliminary Purchase Price Allocation yearly impact on EBIT and EBITDA going forward 400 350 €m 350 300 (in €m) 250 225 €m 200 132 €m 150 116 €m 100 67 €m 45 €m 50 33 €m 24 €m 0 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 EBIT Impact EBITDA Impact (Short term effects from inventory step up) voestalpine AG | | 8 November 2007 Investor Relations
Division Railway Systems – business development 1st Half 07/08 Rails and switches � Strong demand in Europe and overseas markets Division Railway Systems � Reduced order placing from Deutsche Bahn, booming in figures other markets absorb volumes easily EBIT EBIT Sales � favourable pricing environment for rails in Europe (€m) (€m) (%) 1Q 586 94 16.0 Wire FY 07/08 � Still strong demand but prices slightly weaker 2Q 544 83 15.4 FY 07/08 Seamless tubes 1H 1,129 177 15.7 FY 07/08 � Calming phase after overheated market situation in 1H OCTG business 1,015 152 15.0 FY 06/07 � Still sound demand, particularly in Mid East region, but yoy in % +11.2 +16.6 new production capacities lead to price reductions and battle for volumes � Blast furnace relining executed according to schedules voestalpine AG | | 9 November 2007 Investor Relations
Division Automotive – business development 1st Half 07/08 Body parts Division Automotive in � Improving market situation figures � Positive development in spare parts business EBIT EBIT Sales � Cost cutting program in selected companies (€m) (€m) (%) implemented (Mc Kinsey) 1Q 260 12 4.7 FY 07/08 Laser welded blanks 2Q 244 13 5.0 � Well performing, stable business FY 07/08 1H 504 25 4.9 FY 07/08 Safety & Precision parts 1H � Solid demand, sound profitability 377 18 4.8 FY 06/07 yoy in % +33.6 +36.2 � Increase of OEM production in Europe (+6% YTD) � Portfolio optimization and cost cutting programs intensified voestalpine AG | | 10 November 2007 Investor Relations
Division Profilform – business development 1st Half 07/08 Special sections Division Profilform in figures � Strong demand all over Europe driven by building-, commercial vehicle- & warehousing industry EBIT EBIT Sales (€m) (€m) (%) � Recent acquisitions well on track 1Q 280 38 13,6 � Growth strategy at voestalpine Arkada in Russia FY 07/08 2Q 274 39 14,4 FY 07/08 � Latest acquisition Meincol market entry into South America 1H � Consolidation as of January 2008 intended 554 78 14.0 FY 07/08 1H Storage systems 430 61 14.1 FY 06/07 � Solid demand in Western Europe and North America yoy in % +28.9 +28.1 � Growing demand in Eastern Europe, particularly in Russia voestalpine AG | | 11 November 2007 Investor Relations
Financial overview voestalpine AG www.voestalpine.com
Consolidated overview 1H*** 1H 1H YoY 2007/08 2006/07 2007/08 in % (excl. ppa) Sales 3,368 4,749 41.0 % 4,749 €m EBITDA 617 905 46.5 % 951 €m % of Sales 18.3 19.1 20.0 % EBIT 447 612 37.1 % 732 €m % of Sales 13.3 12.9 15.4 % EBT 428 556 29.9 % 676 €m Net Profit 323 434 34.6 % 521 €m EPS** 2.0 2.7 3.3 € Investments* 258 3,319 3,319 €m Depreciation 171 292 71.2 % 219 €m Tax Rate 24.6 21.9 23.0 % * Fixed assets and acquisitions ** Undiluted EPS, based on average number of shares FY 2007/08 *** pro forma figures voestalpine AG | | 13 November 2007 Investor Relations
EBIT Development 1H 2007/08 vs 1H 2006/07 732 €m 123 €m 46 €m 202 €m 612 €m 13 €m -120 €m -82 €m -17 €m 447 €m EBIT EBIT Acquisition EBIT* Mix/ Raw EBIT 13.5% Price Acquisitions Misc. Böhler- ppa 12.9% 15.4% Volume materials 13.3% Uddeholm 1H 2006/07 1H 2007/08 *) pro forma figures excl. ppa voestalpine AG | | 14 November 2007 Investor Relations
Cash flow 1H 2007/08 vs 1H 2006/07 1H 2006/07 1H 2007/08 Cash flow from result €m 509 724 Changes in working capital €m -87 -77 Cash flow from operating activities €m 422 647 Cash flow from investing activities €m -266 -3,428 Free Cash flow €m 156 -2,781 voestalpine AG | | 15 November 2007 Investor Relations
Gearing ratio 4,220 * 121% 3,476 2,926 2,547 2,125 1,786 1,853 1,564 1,530 34% 40% 32% 47% 15% 831 18% 16% 684 625 635 526 377 252 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 1H Net Debt (€m) Equity (€m) Gearing-Ratio (%) *) € 1 bn hybrid bond (equity) not included (valuta October 31, 2007) voestalpine AG | | 16 November 2007 Investor Relations
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