german corporate conference 2012

www.voestalpine.comvoestalpine AG

11th German CorporateConference 2012

Investor RelationsJanuary 2012

| |voestalpine AG2 January 2012 Investor Relations

voestalpine groupBusiness concept (1)

Steel is – and will always be - the base of voestalpine group

BUT: Downstream strategy is strongly driving evolution from

a steel maker to a processing group

Focus on most demanding customer segments in terms of

innovation, technology and quality

Custom made solutions based on most advanced products

and perfect service as key credentials of success

No longer a steel company


voestalpine groupBusiness concept (2)

Strategic markets

Focus on market segments with utmost technological andquality requirements, such as energy, automotive,railway and aircraft industry

No spot market business, commodities no option

Long term relationships

Long term partnerships with customers, suppliers and R&D-institutions are key for innovation and permanent progression in technology and quality

Perfect service is key for long term partnerships

First choice for high tech steel solutions


Building& constr.

subsuppliers

Railwayinfrastructure

Civil &Mechanical

engineering

Other

White &consumer

goodsAutomotive

Energyindustry

voestalpine groupGlobal footprint

No significant exposure to ailing countries and industries

Germany

Austria

BeneluxItalyFrance

Brazil

OtherEurope

NorthAmerica

Asia ROW

Figures FY 2010/11


Minimum top 3 market position in Europe

Partial backward integration

Longest value chain in the industry

Product portfolio focused on long term growth segments

Very limited exposure to crisis-regions and -industries

Resilient in economic downturn

Full leverage in upturn

Strong commitment to efficiency improvement and cost cutting

Steel Special Steel Railway Systems Profilform Automotive

voestalpine groupStructure & position

European Top Player

European Top Player

World market Leader

World market Leader

World market Leader

from April 1st, 2012 on


voestalpine group Current situation

voestalpine group in figures

Sales(€m)

EBIT(€m)

EBIT(%)

Q1FY 11/12

3,052 318 10.4

Q2FY 11/12

2,926 214 7.3

1HFY 11/12

5,978 531 8.9

1HFY 10/11

5,192 414 8.0

Unchanged negative sentiment stemming from financial and public sector

Varying macro lead-indicators in recent months

US data with modest upside tendency

European data predicting stuttering development but no recession

China’s growth track at lower pace

Business environment increasingly varying from sector to sector

Instability and high volatility as the “new normal”


voestalpine group Reading and reaction

voestalpine strategy and business model have proven resilience in turbulent times

Despite a still volatile general environment, 2012 focus back on strategic expansion after a period of cost cutting and crisis management

Merger of Automotive & Profilform Divisions per April 1st, 2012

Major new automotive investments in China, USA and Europe backed by premium producers

Ongoing volatile business environment expected in H1 2012

Efficiency programs carried forward

Lean and flexible structures help to adopt to fast changing market

environment

Constant control and adoption of stocks over whole supply chain

voestalpine group in figures

Sales(€m)

EBIT(€m)

EBIT(%)

Q1FY 11/12

3,052 318 10.4

Q2FY 11/12

2,926 214 7.3

1HFY 11/12

5,978 531 8.9

1HFY 10/11

5,192 414 8.0


Division Steel Business development

Demand situation and price level in high quality segments significantly better than in spot market

Automotive, energy, machine building

Customers still cautious in shorter term market segments

Building/construction, consumer goods, household appliance

Utilization rate of voestalpine’s Linz plant at 90% currently, stable development in Q4 FY 2011/12 expected

Trough of profitability in CQ4 2011Hesitant customers and low volumes due to “proclaimed” recession year 2012

Falling steel prices based on slump in raw material prices

Still high raw material cost because of pricing time lag and stocks

Steel prices start turning positive since beginning of 2012Rising prices in North America

Beginning restructuring of the European supply side

Demand and pricing environment in Europe with first signs of recovery

Division Steel in figures

Sales(€m)

EBIT(€m)

EBIT(%)

Q1FY 11/12

1,038 101 9.8

Q2 FY 11/12

978 60 6.1

1H FY 11/12

2,016 161 8.0

1HFY 10/11

1,785 166 9.3


Division Special Steel Business development

Business sentiment stable on level of 2H CY 2011Order intake still attractive, but below peak figures of spring 2011Stable market situation in automotive, oil & gas exploration and aircraft segmentsWeaker demand from power plant construction and-engineering.Regional economic trends of last year are carried forward

Northern and Western Europe stable on solid levels, Southern Europe unchanged weak

North America showing signs of vitalization

South America stable on appealing levels

Economic growth trend in China slowing down to reasonable levels after exceptional phase in last years

Division Special Steel in figures (past ppa)

Sales(€m)

EBIT(€m)

EBIT(%)

Q1FY 11/12

751 83 11.0

Q2FY 11/12

713 59 8.3

1HFY 11/12

1,464 142 9.7

1HFY 10/11

1,237 75 6.1


Division Railway Systems Business development

Uneven development in rails businessOn-going solid demand for premium railsExcess capacity in standard rails still weighing on capacity utilization and profitability

Turnout systems business benefit from dynamic markets in South Africa, Australia, Brazil and Turkey

However China slowing down

Slightly weaker demand in wire and welding consumablesUnchanged strong sentiment for seamless tubes driven by North American and Mid East marketsFuture of standard rails production in Europe to be discussed

Division Railway Systemsin figures

Sales(€m)

EBIT(€m)

EBIT(%)

Q1FY 11/12

753 92 12.2

Q2FY 11/12

752 80 10.6

1HFY 11/12

1,504 172 11.4

1HFY 10/11

1,336 129 9.7


Division Profilform Business development

Demand from agricultural and construction machinery equipment segments as well as aircraft business on stable high level

Commercial vehicle market softening recently, but demand levels still high

Solar energy business fundamentally good, currently usual seasonal effects

Volatile order intake in standard tubes segment

Continued solid situation in storage technology

Sound business environment in precision strip, just slightly below exceptional level of H1 CY 2011

Division Profilform in figures

Sales(€m)

EBIT(€m)

EBIT(%)

Q1FY 11/12

330 41 12.5

Q2FY 11/12

302 23 7.6

1HFY 11/12

632 64 10.2

1HFY 10/11

557 57 10.3


Division Automotive Business development

Mixed environment for European car producersSolid production figures in premium segment, German producers still doing well in general

Stable order intake for Eastern and Central European Transplants

French & Italian car industry weakening

Utilization rates at voestalpine high due to dominant stake of premium producersAutomotive Division strengthens global presence

New greenfield investments in U.S., China, South Africa, Romania and Germany

Capital expenditure bolstered by long term contracts

Solar energy as successful niche-business

Division Automotivein figures

Sales(€m)

EBIT(€m)

EBIT(%)

Q1FY 11/12

293 19 6.3

Q2FY 11/12

292 11 3.8

1HFY 11/12

585 30 5.1

1HFY 10/11

477 25 5.2


Financial overview


voestalpine groupConsolidated overview

* Based on average number of shares** Fixed assets and acquisitions*** Per 30.09., excluding trainees & temps

1H 2010/11 1H 2011/12 YoY in %Sales €m 5,192 5,978 15.1EBITDA €m 711 824 16.0% of Sales % 13.7 13.8EBIT €m 414 531 28.3% of Sales % 8.0 8.9EBT €m 317 443 39.7Net Profit €m 250 346 38.6EPS* € 1.24 1.82 46.8

Investments** €m 169 227 34.4Depreciation €m 296 293 -1.2Employees*** 39,862 41,168

| |voestalpine AG

EBIT development1H 2010/11 vs. 1H 2011/12

15 January 2012 Investor Relations

1H 2010/11 PriceRaw

materials Misc.*Mix/

Volume* ppa 1H 2011/12

414 €m

531 €m

EBIT8.0%

4 €m

-328 €m34 €m

396 €m

11 €m

* Savings are included in these items

EBIT8.9%


voestalpine groupCash flow 1H 2010/11 vs. 1H 2011/12

1H 2010/11 1H 2011/12

Cash flow from result €m 554 618

Changes in working capital €m -80 -450

Cash flow from operating activities €m 474 168

Cash flow from investing activities €m -221 -232

Free cash flow €m 253 -64


voestalpine groupGearing ratio


voestalpine groupDevelopment liquidity

Cash

Financial assets

Comfortable liquidity position and balanced maturity profile

Liquidityper 30.09.2011

Redemption – Scheduleper 30.09.2011

€m

*) Syndicated loan: 400 m€, committed lines: 400 m€, closed on November 23, 2011


voestalpine groupOutlook

Global macro uncertainty questions short term upturnSentiment still volatile due to public debt situation as well as pending problems in the banking sector and financial markets

GDP-growth expectations generally reduced across 2012 (including China)

Political environment within EU stabilizing, future of Euro no longer seriously questioned

Customers and end-consumers still cautious, but no further deterioration of industrial sentiment expectedDifficult CQ4 for steel industry in general and voestalpine Steel Division, but improved earnings expectations from spring 2012 onwards Stable development in processing divisions carried forward in H1 2012

UPTURN IN THE COURSE OF CY 2012 LIKELY


IR Contact

Peter FleischerHead of Investor RelationsE-Mail [email protected] +43/50304/15-9949

Gerald ReschInvestor Relations ManagerE-Mail [email protected] +43/50304/15-3152

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