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Financial Year 2013/14 Q1 Investor Relations August 2013

voestalpine AG www.voestalpine.com


voestalpine Group Business concept From a steel producer to a technology and industrial goods corporation n

High-tech steel is the base of voestalpine, but 12 years of downstream strategy have converted the group from a steelmaker to a technology and industrial goods corporation

n

Combination of metallurgical know-how in steel making and processing expertise leading to innovative technical solutions and new products

n

Focus on strategic markets with utmost technological and quality requirements - mobility and energy

n

Long-term relationships with customers, suppliers and R&Dinstitutions as key drivers for innovation and perfect service

n

Earnings accretion as precondition for any investment decision

Number 3 in Europe by revenues & market cap voestalpine AG | August 2013 2

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Investor Relations


voestalpine Group Global footprint One Group - 500 sites - 50 countries - 5 continents Revenue by regions (Financial

year 2012/13)

72% European Union (thereof Austria: 10%, Germany: 30%)

5% Other Europe 4% Rest of world 8% North America 6% Asia 5% Brazil

Revenue by industries (Financial 11% Civil & mechanical engineering 15% Other

year 2012/13) 2% Aviation industry 13% Railway infrastructure 29% Automotive

9% Building & construction 5% White goods/ consumer goods

voestalpine AG | August 2013 3

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Investor Relations

MOBILITY: 44% ENERGY: 16%


voestalpine Group Company structure and market position voestalpine Group (FY 2012/13) 33%

23%

25%

19%

Steel Division

Special Steel Division

Metal Engineering Division

Metal Forming Division

Top European player

Global leadership

Global leadership

Global leadership

Top European supplier of highest quality steel sheet and global top position in heavy plate for the most sophisticated applications as well as casings for large turbines.

Worldwide leadership in tool steel. Leading position in high-speed steel and special forgings.

Worldwide market leader in turnout technology; European market leader in rails and specially treated wire; and leading position in seamless tubes for special applications and high quality welding consumables.

Leading global provider of high-quality metal processing solutions in the segments of special sections, precision steel strip and special components for automotive and aviation industries.

voestalpine AG | August 2013 4

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Investor Relations


voestalpine Group Long-term strategy, cornerstones 2020 voestalpine 2020 – technology and industrial goods corporation with high-tech steel base

n

Areas of growth n

Downstream in steel and other materials

n

Focus on mobility and energy (70% of sales)

n

Regional focus of growth: North and South America, Asia

n

Further strengthening of market, quality, technology and earnings leadership

n

Broadening of global footprint à > 40% outside Europe

n

Solid balance sheet and earnings accretive investments groundwork for strategy implementation

€ 20 bn. Sales voestalpine AG | August 2013 5

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Ø 14% EBITDA-margin

Investor Relations

Ø 9% EBIT-margin

Ø 15% ROCE


voestalpine Group Highlights 1st Quarter 2013/14 €m

Q1 2012/13

Q1 2013/14

01.04. – 30.06.2012

01.04. – 30.06.2013

Changes in %

2,936

-3.8

372

366

-1.6

12.2 %

12.5 %

228

223

7.5 %

7.6 %

Net profit

145

139

-4.3

Investments

135

176

30.6

Equity

4,981

5,160

3.6

Net financial debt

2,484

2,272

-8.5

49.9 %

44.0 %

Sales

3,051

EBITDA EBITDAmargin EBIT

n

Weak global economic trend continued until CQ1 2013

n

Cautious signs of stabilization since spring

n

voestalpine maintained, resp. increased profitability albeit decreasing revenues

n

The specific product portfolio as well as the downstream strategy are major stabilizing factors in

-2.1

volatile macro-environment EBIT-margin

Gearing

voestalpine AG | August 2013 6

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Investor Relations

n

Continuous cost- and efficiency management driving earnings in weak markets

n

Balance sheet further strengthened despite increased capex due to cash generation and solid profits

n

First steps of growth strategy under implementation, projects well on track


voestalpine Group Current situation €m

Sales

Q1 2012/13

Q2 2012/13

Q3 2012/13

Q4 2012/13

Q1 2013/14

01.04. – 30.06.2012

01.07. – 30.09.2012

01.10. – 31.12.2012

01.01. – 31.03.2013

01.04. – 30.06.2013

3,051

2,882

2,720

2,872

2,936

EBITDA / EBITDA-margin

372

12.2 %

352

12.2 %

319

11.7 %

388

13.5 %

366

12.5 %

EBIT / EBIT-margin

228

7.5 %

207

7.2 %

172

6.3 %

236

8.2 %

223

7.6 %

n

Current macroeconomic environment of most important regions n

Increasing hopes about European recovery recently

n

Positive economic sentiment in North America on broad basis, but upturn still lacks sustainability

n

n

China with improving short-term outlook, long-term realistic GDP growth around 7%

n

Brazil with ongoing solid domestic demand

Unchanged strong demand in Steel Division, spot prices turning recently, contract prices to follow

n

Downstream Divisions with stable development on sound levels

voestalpine AG | August 2013 7

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Investor Relations


Steel Division Business development €m

Sales

Q2 2012/13

Q3 2012/13

Q4 2012/13

Q1 2013/14

01.07. – 30.09.2012

01.10. – 31.12.2012

01.01. – 31.03.2013

01.04. – 30.06.2013

980

926

1,000

EBITDA / EBITDA-margin EBIT / EBIT-margin

n

Q1 2012/13 01.04. – 30.06.2012

1,016

990

108

10.8 %

129

13.1 %

100

10.8 %

110

10.8 %

111

11.2 %

51

5.1 %

72

7.3 %

42

4.5 %

50

4.9 %

55

5.6 %

Steel Division with excellent demand situation n

Automotive industry in Europe stable after trough in early 2013, premium brands with strong support from exports

n n

n

Household and consumer goods stable on solid levels

n

Energy segment with some signs of new life, negotiations of several pipeline tenders started

n

Building industry unchanged weak

Profitability stable, spot prices with upward trend, contract prices to follow in CQ4 HBI-project in Texas well on track

voestalpine AG | August 2013 8

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Investor Relations


Special Steel Division Business development €m

Q1 2012/13

Q2 2012/13

Q3 2012/13

Q4 2012/13

Q1 2013/14

01.04. – 30.06.2012

01.07. – 30.09.2012

01.10. – 31.12.2012

01.01. – 31.03.2013

01.04. – 30.06.2013

Sales

736

686

643

684

683

EBITDA / EBITDA-margin

105

14.2 %

90

13.1 %

79

12.3 %

93

13.6%

99

14.4 %

68

9.3 %

54

7.8 %

43

6.7 %

56

8.2 %

65

9.5 %

EBIT / EBIT-margin

n

n

Demand and volume situation volatile n

12-month downward trend stopped in spring 2013, since then stable level

n

Still short-dated and cautious order behaviour of customers - volatile order intake

Market segments with inconsistent developments n

Truck industry showing some recovery, automotive market in general flat

n

Mechanical engineering stable on slightly lower levels, energy-machines (power plants) with only limited recovery

n n

n

Consumer goods steady on sound levels

n

Aviation industry as well as oil & gas industry unchanged strong

Profitability positively impacted by cost- and efficiency improvement programs First contribution of recent acquisitions in earnings, integration well on track

voestalpine AG | August 2013 9

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Investor Relations


Metal Engineering Division Business development €m

Q1 2012/13

Q2 2012/13

Q3 2012/13

Q4 2012/13

Q1 2013/14

01.04. – 30.06.2012

01.07. – 30.09.2012

01.10. – 31.12.2012

01.01. – 31.03.2013

01.04. – 30.06.2013

Sales

806

740

693

674

767

EBITDA / EBITDA-margin

111

13.8 %

95

12.8 %

104

14.9 %

124

18.4 %

112

14.6 %

83

10.3 %

67

9.0 %

74

10.7 %

94

13.9 %

83

10.8 %

EBIT / EBIT-margin

n

Continuation of the favourable general trend

n

Railway infrastructure markets strong (rails and turnout systems) n

Only exemption – Europe, in particular Southern Europe with no signs of improvement

n

North and South America as well as Asia showing strong demand

n

Ramp up of new assets in Middle East and Turkey on track

n

Wire business stable on sound levels

n

Welding Consumables: increased activities in India, China and South-East-Asia compensating weaker European demand

n

On-going strong momentum in Seamless Tubes business

voestalpine AG 10 | August 2013

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Investor Relations


Metal Forming Division Business development €m

Sales

Q1 2012/13

Q2 2012/13

Q3 2012/13

Q4 2012/13

Q1 2013/14

01.04. – 30.06.2012

01.07. – 30.09.2012

01.10. – 31.12.2012

01.01. – 31.03.2013

01.04. – 30.06.2013

611

567

548

584

598

EBITDA / EBITDA-margin

68

11.1 %

57

10.1 %

54

9.8 %

76

13.1 %

69

11.5 %

EBIT / EBIT-margin

46

7.5 %

35

6.2 %

32

5.8 %

53

9.1 %

46

7.7 %

n

n

Automotive Body Parts n

Sound and stable order intake, mainly driven by premium brands

n

Car sales numbers in Europe on low level, but trough most probably passed in H1 2013

n

Division very well positioned due to innovative product portfolio (i.e. phs-ultraform) and expansion in growth markets

Special sections n

Volatile order intake because of short-dated customer disposition, in particular in Europe

n

North America on sound levels, Brazil stable

n

Slightly weaker demand and increased competition in Precision Strip segment

n

Material Handling with stable solid development

n

International expansion projects (China, South Africa, North America) well on track

voestalpine AG 11 | August 2013

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Investor Relations


Financial overview

voestalpine AG www.voestalpine.com


voestalpine Group Consolidated overview Q1 2012/13

Q1 2013/14

01.04.- 30.06.2012

01.04.- 30.06.2013

Delta in %

Sales

€m

3,051

2,936

-3.8

EBITDA

€m

372

366

-1.6

% of Sales

%

12.2

12.5

EBIT

€m

228

223

% of Sales

%

7.5

7.6

EBT

€m

185

180

-2.8

Net Profit

€m

145

139

-4.3

0.74

0.69

-6.8

Investments**

€m

135

176

30.6

Depreciation

€m

144

143

-0.9

EPS*

* Based on average number of shares ** Fixed assets and acquisitions

voestalpine AG 13 | August 2013

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Investor Relations

-2.1


voestalpine Group Development EBIT 228 €m

27 €m

223 €m

77 €m

-98 €m

EBIT 7.5%

Q1 2012/13

voestalpine AG 14 | August 2013

EBIT 7.6 %

-11 €m

Price

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Investor Relations

Mix/ Volume

Raw materials

Misc.

Q1 2013/14


voestalpine Group Development cash flow Q1 FY 2012/13

Q1 FY 2013/14

Cash flow from result

€m

297

299

Changes in working capital

€m

1

-150

Cash flow from operating activities

€m

298

149

Cash flow from investing activities

€m

-200

-173

Free cash flow

€m

98

-24

voestalpine AG 15 | August 2013

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Investor Relations


voestalpine Group Development gearing ratio

voestalpine AG 16 | August 2013

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Investor Relations


voestalpine Group Development liquidity Liquidity per 30.06.2013

Redemption – Schedule per 30.06.2013

Committed lines

â‚Źm

Financial assets

Cash

Comfortable liquidity position and balanced maturity profile voestalpine AG 17 | August 2013

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Investor Relations


voestalpine Group Outlook n

Economic downtrend of last 12 months bottomed out in spring 2013

n

Stabilization of the global economy in H2 2013 expected n

Europe starting some recovery

n

US economy with upward trend

n

China further stabilizing

n

Weakness in India without any major global effect (not new!)

n

Broader economic recovery in 2014?

n

Development of voestalpine Group expected most likely stable on current levels n

Steel Division: Utmost utilization of capacities; prices starting to rise in H2 FY 2013/14

n

Special Steel Division: High capacity utilization and stable pricing environment

n

Metal Engineering Division: 100 % utilization rate and unchanged attractive price level

n

Metal Forming Division: High utilization rate and stable prices

2013/14 earnings expectations for voestalpine Group unchanged: Flat vs. 2012/13 in terms of EBITDA and EBIT voestalpine AG 18 | August 2013

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Investor Relations


IR Contact

Reuters VOES.VI

Bloomberg VOE AV

voestalpine AG www.voestalpine.com

Peter Fleischer Head of Investor Relations E-Mail peter.fleischer@voestalpine.com Phone +43/50304/15-9949 Gerald Resch Investor Relations Manager E-Mail gerald.resch@voestalpine.com Phone +43/50304/15-3152


Financial Year Q 1 2013/14