company presentation voestalpine edelstahl gmbh 2013/14

voestalpine Edelstahl GmbH

| |www.voestalpine.com


Company Presentationvoestalpine Edelstahl GmbH, 2013/14


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voestalpine Edelstahl at a glance Worldwide leading special steel company with a focus

on technologically demanding product segments

Global market leader in tool steel and worldwide leading positions in high-speed steel, valve steel and other special steels

Seven production sites in Europe, North- and Latin America as well as roughly 70 distribution sites on all continents

More than 100,000 customers throughout the world; key customers include the automotive, power generation, oil and gas exploration, machinery construction, consumer goods, aircraft and other selected industry sectors

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Tool steel High-speed steel Valve steel Special engineering steel Powder metallurgical steels Special steel grades Nickel-based alloys Titanium alloys

Global sales and distribution network including additional services on site (heat treatment, machining, coating etc.)

(in all product categories)

Clearly defined core business


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Global presence in all industrialized zones


Production sites in Austria (Kapfenberg, Mürzzuschlag, Bruckbach), Sweden (Hagfors), Germany (Wetzlar), USA (South Boston/Virginia), Brazil (Sumaré)

Wholly owned sales subsidiaries in 50 countries at roughly 70 sites


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Enhanced customer orientation and customization A strict orientation to customer

requirements (customer intimacy) is traditionally of utmost priority in the Group’s values

Buying decisions of customers are driven by availability of material, tailored services and technical expertise

The Group’s global sales and distribution network is unique in the special steel sector and a cornerstone for market leadership

CUSTOMER INTIMACYCustomer Responsive

PRODUCT LEADERSHIPProduct Differentiation

OPERATIONAL EXCELLENCEOperational Competence

On par with the best

One step ahead of the best



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voestalpine Edelstahl in key figuresFinancial figures 2012/13 in m€ Operating figures 2012/13

Net sales 2,748

EBITDA 369

EBIT 249

Profit before tax 217

Employees 12,001

Production and distribution sites ~80

Customers ~100,000

Sales volume (in t) ~700,000

Net sales, EBIT in m€

2011/2012 2012/2013

Employees

11,52412,001


2,945 2,748

313 249

2011/2012 2012/2013


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voestalpine Edelstahl in key figuresSales by region Sales by customer industry

Automotive26%

Machineryconstruction 21%

Power generation15%

Consumergoods

12%

Aircraft9%

Construction4%

Other13%

European Union56%

N/S America23%

Asia 13%

Other Europe 5%Africa 1%

Australia 2%



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Historic milestones1991 Austrian Böhler Group and Swedish Uddeholm Group merge

to form the Böhler-Uddeholm Group (the beginnings of both companies date back to 1446 and 1668 respectively); Böhler-Uddeholm is fully owned by ÖIAG (Republic of Austria)

1995 Initial public offering on the Vienna Stock Exchange, majority privatization in the following year

2003 The Republic of Austria sells the remaining stake and makes Böhler-Uddeholm a fully privatized company

2007 Austrian-based voestalpine AG acquires a majority stake in Böhler-Uddeholm and fully integrates the Company in the consecutive year (Böhler-Uddeholm forms the Special Steel Division of voestalpine Group)

2011 Holding company Böhler-Uddeholm AG changes legal form and name to voestalpine Edelstahl GmbH



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State-of-the-art in production Electric arc furnaces and secondary metallurgical

equipment focused on demanding special steel grades

Remelting units (ESR/VAR) and furnaces for vacuum induction melting (VIM) further optimize metallurgical characteristics of end products

Rolling mills allowing for high precision and flexibility

Most modern forging machines (open-die, closed-die and rotary forging)

Powder metallurgic plant in Austria

Fully integrated special steel producer providing state-of-the-art multi-line rolling mills and the largest rotary forging press and screw press worldwide



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Unique service network for special steels Approximately 70 distribution and service sites across all

industrialized regions; roughly 40% of total staff is employed in sales

Global number 1 in service centers focused on tool making Technical advice and customer service

on site support customer focus Approximately 1,000 high performance saws precisely cut

material according to customer specifications “Ordered today – delivered tomorrow” granted for standard

products


In the special steel sector no other competitor can provide a comparable sales and distribution network incl. stocking, machining, heat treatment and – since recently – coating


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Specific customer structure Main focus on the automotive, power

generation, oil & gas exploration, machinery construction, consumer goods and aircraft industries

Roughly 100,000 customers across the globe in dedicated niches

Not dependent from single large customers, the largest customer accounts for approximately 3% of total sales

No volume business, average dispatch size is about 70 kg

Number of customersSales per customer


Sales/Customer

11

voestalpine Edelstahl is focused on medium-sized customers as well as large industrial end-users


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Long-term growth triggerd by megatrendsMegatrend/Industry sector

Current contribution to total sales

Mid-term trend

Long-term trend

Mobility/AutoTool and component building

~26%

Mobility/AircraftStructural parts, aero engine discs

~9%

Power generationThermal power plants, wind energy, oil & gas exploration

~15%

Consumer goodsElectronics, household appliances, packaging

~12%

Machinery constructionCutting tools, heavy gear boxes, tooling

~21%


voestalpine Edelstahl has a strong exposure to fast growing industry sectors and is poised to benefit from future trends


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Well positioned by unique brands voestalpine Edelstahl possesses

globally leading brands with a long-standing tradition in the special steel sector (multi-brand strategy)

Each brand represents an individual performance profile in the market enjoying strong brand loyalty

These brands clearly differentiate the Group from its competitors

Optimizing and developing its brands constitutes a major element in the Company’s values



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R&D secures innovation lead Directed development of products

and processes forms the basis of innovation and competitiveness

New steel grades and alloys as well as process simulation for metal forming and process technology are the main focus in R&D

Fundamental research is carried out in close cooperation with universities and research centers

Expenditure for 2012/13 in m€ ~23

Number of researchers ~105

Number of registered patents and patent applications ~1,028

R&D expenditure in m€


R&D in figures

14

2011/2012 2012/2013

22

23


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Shared values built on five principles

1. We focus on the needs of our customers

2. We are empowered professionals

3. We do what we say

4. We are committed for the long term

5. We develop the talents of our employees



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Clear differentiation from competition Fully integrated manufacturer of special steels providing production,

distribution and services from a single source

Diversified customer base by industry and region, more than 100,000 customers across the globe, not dependent from single large customers

Comprehensive sales and service network secures global operations and local ties to customers

Market leader in selected and technologically demanding product segments, no mass steel producer

Well-established brands with proven track record generate strong brand loyalty



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Group-wide certified quality management All production companies are certified according to

ISO 9001 quality management system

Additional quality systems respond to specific quality standards of individual customers or industries (e.g. automotive, aircraft etc.)

Each Group company (production and sales) is staffed with a quality manager



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Continous improvement program (CIP) voestalpine Edelstahl employs an established and successful

Continuous Improvement Program (CIP) in all major Group companies

In addition to running projects employees proposed roughly 15,000 new ideas for improvement in the past business year. These suggestions were assessed by expert teams

Proposals for improvements are submitted in four categories: “Quality“, „Safety at work and health”, “Environmental protection”, and „Cost reduction“

Each year the best submissions are rewarded

CIP significantly contributes to sustainable cost reduction, and helps to secure the Company‘s competitiveness



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Close attention to environmental protection Certified environmental management systems according to ISO 14001 are

implemented in all major Group companies

The holding company coordinates strategic focal points in environmental matters and sustainability; observes national, European and global trends (e.g. emissions trading)

The production companies continuously adjust plants and machinery to technical standards and national legislation, keep contact to local authorities and neighbors and implement measures to protect the environment

Environmental responsible managers of all production companies operate in a networked system

Group-wide program improves sustained energy efficiency



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Motivated employees make the difference Worldwide about 12,000 employees

in 50 countries on every continent

Close collaboration within the workforce across the Group is the guarantee for customer satisfaction

Group-wide employee survey provides valuations of job satisfaction and allows directed measures in learning and training

Employees with expertise and individual responsibility are prerequisites to meet customer’s needs and distinguish the Group from its competition

Europe (exkl. Austria)

38%

Austria28%

S-America 16%

Asia 11%

N-America 4%

Other 3%


Workforce by region

company presentation voestalpine edelstahl gmbh 2013/14

Business

voestalpine

special steel

major group

voestalpine

power generation

heat treatment

consumer goods

gas exploration