REPORT FOR THE FIRST HALF OF 2019/20 - Voestalpine
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REPORT FOR THE FIRST HALF OF 2019/20 voestalpine AG www.voestalpine.com
voestalpine GROUP
KEY FIGURES
Q 1 2019/20 VS. Q 2 2019/20
In millions of euros Q 1 2019/20 Q 2 2019/20 Change
04/01 – 06/30/2019 07/01 – 09/30/2019 in %
Income statement
Revenue 3,336.1 3,205.5 –3.9
EBITDA 370.9 294.6 –20.6
Depreciation 214.3 221.7 3.5
EBIT 156.7 72.9 –53.5
Profit before tax 124.4 38.1 –69.4
Profit after tax1 90.4 24.8 –72.6
Statement of financial position
Investments in tangible and intangible assets
and interests 170.9 166.6 –2.5
Equity 6,712.1 5,994.7 –10.7
Net financial debt 3,896.5 4,503.1 15.6
Net financial debt in % of equity (gearing) 58.1% 75.1%
Financial key figures
EBITDA margin 11.1% 9.2%
EBIT margin 4.7% 2.3%
Cash flows from operating activities –86.3 288.3 434.1
Share information
Share price, end of period (euros) 27.17 21.08 –22.4
Market capitalization, end of period 4,850.4 3,763.2 –22.4
Number of outstanding shares, end of period 178,520,566 178,520,566 0.0
EPS – earnings per share (euros) 0.44 0.10 –77.3
Personnel
Employees (full-time equivalent), end of period 51,670 51,275 –0.8
1
Before deduction of non-controlling interests and interest on hybrid capital.H 1 2018/19 VS. H 1 2019/20
In millions of euros H 1 2018/19 H 1 2019/20 Change
04/01 – 09/30/2018 04/01 – 09/30/2019 in %
Income statement
Revenue 6,674.0 6,541.6 –2.0
EBITDA 860.1 665.5 –22.6
Depreciation 380.6 436.0 14.6
EBIT 479.5 229.6 –52.1
Profit before tax 421.5 162.5 –61.4
Profit after tax1 319.9 115.2 –64.0
Statement of financial position
Investments in tangible and intangible assets
and interests 474.6 337.5 –28.9
Equity 6,550.9 5,994.7 –8.5
Net financial debt 3,599.0 4,503.1 25.1
Net financial debt in % of equity (gearing) 54.9% 75.1%
Financial key figures
EBITDA margin 12.9% 10.2%
EBIT margin 7.2% 3.5%
Cash flows from operating activities 165.0 202.0 22.4
Share information
Share price, end of period (euros) 39.40 21.08 –46.5
Market capitalization, end of period 6,947.0 3,763.2 –45.8
Number of outstanding shares, end of period 176,320,566 178,520,566 1.2
EPS – earnings per share (euros) 1.69 0.54 –68.0
Personnel
Employees (full-time equivalent), end of period 51,931 51,275 –1.3
1
Before deduction of non-controlling interests and interest on hybrid capital.CONTENTS
This report is a translation of the original report in German, which is solely valid.
INTERIM CONDENSED INTERIM CONSOLI-
MANAGEMENT REPORT DATED FINANCIAL STATEMENTS
4 Economic Environment 22 Consolidated Statement
and Course of Business of Financial Position
6 Report on the Financial 24 Consolidated Statement of Cash Flows
Key Performance Indicators
25 Consolidated Statement
of the voestalpine Group
of Comprehensive Income
8 Steel Division
27 Consolidated Statement
10 High Performance Metals Division of Changes in Equity
12 Metal Engineering Division 28 Notes
14 Metal Forming Division 46 Management Board Statement
in accordance with Section 125 (1)
16 Investments
Austrian Stock Exchange Act 2018
16 Business Transactions with (Börsegesetz 2018 – BörseG 2018)
Associated Companies or Parties
16 Risk Management
17 Outlook
19 Investor RelationsLETTER FROM THE
MANAGEMENT BOARD
Ladies and Gentlemen:
This Interim Report for the business year 2019/20 differs from its predecessors in many ways. We
entered a phase of great uncertainty at the start of the business year 2019/20 following a long
period of economic expansion. The leading economic indicators for the manufacturing industry that
are key to our interests point to a significant weakening of the economic momentum worldwide. And
Europe, our most important market, is the one where the downturn is the most pronounced.
Having made extensive investments in recent years, now is the time for us to create new financial
leeway for further development options. This means that questions related to the Group’s total
asset structure, its ability to generate cash flows, and earnings optimization—in this order—are at
the top of our current agenda. All requisite programs have been launched and are already being
implemented.
While the current uncertainties and the resulting business climate will constrain our strategic options
in the near term, our longer-term strategy of growing and extending the value chain remains valid,
and we are pursuing it with an eye toward our liabilities.
The most recent changes in the global economic order—first and foremost the global trade war, but
also the future development of Europe as an economic region whose interest in maintaining an all-
encompassing industrial value chain is obviously waning—require an agenda that transcends purely
short-term optimization strategies at the operating level. In the coming months, therefore, we will look
closely at the ramifications of the changes in the global economic order for the positioning in the long
term of all of the Group’s key business segments.
That such phases are demanding and challenging is only natural. The Management Board’s current
focus thus is on reducing debts and stabilizing earnings.
The Management Board
REPORT FOR THE FIRST HALF OF 2019/20 3INTERIM
MANAGEMENT REPORT
This report is a translation of the original report in German,
which is solely valid.
ECONOMIC ENVIRONMENT many, in particular, also on account of the weak-
AND COURSE OF BUSINESS ening of its automotive industry.
The European Central Bank (ECB) has responded
Uncertainty continued to characterize the overall through fiscal measures aimed at stimulating
economic environment in the first half of the investments: It has continued to lower interest
business year 2019/20. Current triggers such as rates and has restarted its large-scale asset pur-
the global trade wars and the Brexit (along chases, also known as “quantitative easing” (QE).
with its ramifications, especially in Europe) had a It is only natural that these developments would
growing impact on the real economy. As a range negatively affect the performance of voestalpine,
of precursor indicators already show, in actual which generates a good two-thirds of its revenue
fact the willingness to make investments has de- in Europe. Shrinking demand from the auto in-
clined worldwide. While service sectors with a dustry, reduced investments, and the downturn
predominantly regional orientation as well as in the manufacturing sector on the whole have
consumers’ spending patterns have largely re- broad implications for voestalpine’s divisions.
mained robust so far, the first signs of negative Two positive developments stand out, however:
collateral effects are making themselves felt on the railway infrastructure segment as well as the
these sectors too. aerospace industry. Both of them succeeded in
avoiding the negative dynamic during the first
EUROPE half of the business year 2019/20. The steel in-
The economy in Europe on the whole still managed dustry, by contrast, was buffeted in the reporting
to generate slight growth toward the end of the period not only by slowing demand from individ-
reporting period. Yet the gap between the manu ual market segments, but also by large volume
facturing sector and the service sector (which steel imports to Europe as well as the high cost of
continues to run smoothly) has grown substan- raw materials.
tially since the start of the business year. Both the
good employment situation and consumers’ strong NORTH AMERICA / USA
purchasing power have helped to fuel the expan- In North America, economic growth remained on
sion of the service sector, although the momentum track in the first two quarters of the business year
recently slowed a bit in this area also. 2019/20, even though here, too, the growth rates
Europe’s export-oriented industrial sector, by have recently begun to slacken somewhat. While
contrast, is increasingly suffering under the global consumption continued to boost growth, toward
trade barriers as well as the general decline in the end of the first half of the current business
investments. This sector has had to contend with year investment activity as well as housing con-
negative growth rates since the start of the current struction declined for the first time in years. Aside
business year. These developments affect Ger- from the slackening of the economy worldwide,
4growing uncertainties and falling corporate profits reacted to these developments with a number of
have put a break on investments here as well. measures aimed at stimulating growth. So far,
Just as in Europe, demand from the railway infra- however, the positive expectations tied to these
structure sector as well as the aerospace industry interventions have not yet borne fruit over the
for the products of the voestalpine Group contin- course of the current business year. As a result,
ues unabated. By contrast, the Group’s production consumption in China has remained weak, and
levels had to be adjusted in response to declining the country has not yet succeeded in offsetting
demand from the oil and natural gas sector. the substantial downturn in its automotive indus-
Given the Section 232 restrictions on imports, on try. Over time, the state-controlled infrastructure
the whole the U.S. market has become a difficult and real estate projects have led to a considerable
economic proposition for voestalpine. expansion of steel production in China—the world’s
largest steel producer by far. In turn, this triggered
SOUTH AMERICA / BRAZIL a substantial increase in the cost of raw materials,
While the Brazilian economy managed to expand above all iron ore.
a bit at the start of the business year 2019/20, The Chinese branches of the voestalpine Group
the momentum flattened out yet again over the have profited from the government’s stimulus
summer. Investment activity, which had received programs in the railway infrastructure segment.
a boost through fiscal measures, slowed as much Low demand from both the consumer goods in-
as did manufacturing activity. Exports expanded dustry and the automotive industry have affect-
a bit across the board, but remained at a low ed particularly the tool segment.
level on the whole not least due to developments
in Argentina. Production of Brazil’s most important In sum, therefore, the voestalpine Group was
export commodity—iron ore—was ramped up to confronted with a substantial dampening of eco-
normal levels for the first time since the fatal dam nomic sentiment. Europe, which accounts for the
break in early 2019. largest portion of voestalpine’s regional portfolio,
Overall, the voestalpine Group’s Brazilian sites also had the weakest momentum. European steel
delivered solid performance in this moderate production during the reporting period was char-
economic environment. acterized by an extraordinary situation: Falling
demand and strong import pressures in tandem
ASIA / CHINA with sharp increases in raw materials prices have
The trade war with the United States has put a impacted financial results.
substantial brake on China’s economic develop- It is precisely in this highly uneven economic en-
ment. It has triggered not only the downturn in vironment that voestalpine’s strategy displayed
exports, but has also affected domestic consump- its strengths. These include the Group’s focus on
tion. As in the past, China’s central government technologically sophisticated markets as well as
REPORT FOR THE FIRST HALF OF 2019/20 5its investments in recent years to extend the value about one half of its business volume. By contrast,
chain. The railway infrastructure segment, the the Metal Forming Division was confronted with
aerospace industry, storage systems as well as the greatest drop in earnings due to the cooling
welding technology—all of which delivered good of the automotive industry as well as high start-up
performance in the first six months of the business costs at its automotive plant in Cartersville,
year 2019/20—provide solid evidence thereof. Georgia, USA. As a result, the EBITDA of the voest
alpine Group on the whole fell from EUR 860.1
million in the previous year by 22.6% to EUR 665.5
REPORT ON THE FINANCIAL million in the first half of the business year 2019/20.
KEY PERFORMANCE INDICATORS EBIT plummeted year over year by more than one
OF THE voestalpine GROUP half, from EUR 479.5 million to EUR 229.6 million.
At net financial income of EUR –67.1 million in
Following years of growth, the voestalpine Group the first half of the business year 2019/20 (previ-
posted a slight decline in revenue for the first half ous year: EUR –58.0 million), the profit before
of the business year 2019/20. This decline c hiefly tax for the reporting period is EUR 162.5 million
reflects the dampening of economic sentiment (previous year: EUR 421.5 million). Based on a
in important economic regions and/or customer tax rate of 29.1% (previous year: 24.1%), the
segments as well as the resulting negative effect profit after tax for the first half of the business
on the Group’s delivery volume. Price developments year 2019/20 plunged by 64.0%, from EUR 319.9
paint a differentiated picture: Prices at both the million in the same period of the previous year to
High Performance Metals Division and the M etal EUR 115.2 million in the reporting period.
Engineering Division (with the exception of wire The gearing ratio (net financial debt as a per-
products) were higher on account of the increases centage of equity) of the voestalpine Group rose
in the cost of raw materials. By contrast, steel sharply, both year over year and compared with
prices in the Steel Division fell due to deteriorat- the annual reporting date. This is chiefly due to
ing market conditions despite rising pre-materials accounting issues and not to the Group’s oper-
costs. All divisions except the Metal Forming ating performance. For one, a portion of this
Division had to contend with declining sales. In increase stems from the recognition of leases
sum, this resulted in a 2.0% decrease in revenue, pursuant to IFRS 16, which raised the interest-
from EUR 6,674.0 million in the first half of the bearing liabilities by about EUR 437 million com-
business year 2018/19 to EUR 6,541.6 million in pared with the annual reporting date. For anoth-
the first half of the business year 2019/20. er, on September 9, 2019, the Management Board
The downturn in the voestalpine Group’s earnings of voestalpine AG resolved to fully redeem the
was substantially greater year over year. Although EUR 500 million hybrid bond issued in 2013 as
the previous year’s comparative figure already of October 31, 2019. This means that, as of Sep-
was lower due to non-recurring effects in the Steel tember 30, 2019, the hybrid bond is recognized
Division (the complete overhaul of its most im- in financial liabilities and not in equity. As regards
portant blast furnace), the Group’s individual the Group’s operating performance, the increase
earnings categories all experienced significant in working capital compared with the March 31,
declines in the first half of the current business 2019, reporting date adversely affected the debt
year on account of the challenging market envi- ratio even though it was more or less stable year
ronment. All four divisions were affected by this over year. Given these developments, net finan-
development, albeit to different degrees. The cial debt rose from EUR 3,599.0 million as of
Metal Engineering Division posted the smallest September 30, 2018 (or EUR 3,125.4 million as
earnings decline, because its relatively stable of the March 31, 2019, reporting date) to EUR
Railway Systems business segment accounts for 4,503.1 million as of September 30, 2019. During
6the same period and due to the redemption of In turn, this caused the gearing ratio to climb
the hybrid bond, equity fell from EUR 6,550.9 from 54.9% as of September 30, 2018 (and 46.6%
million as of September 30, 2018 (or EUR 6,709.8 as of the March 31, 2019, reporting date) to
million as of the March 31, 2019, reporting date) 75.1% as of September 30, 2019.
to EUR 5,994.7 million as of September 30, 2019.
COMPARISON OF THE QUARTERLY AND SIX-MONTH FIGURES OF THE voestalpine GROUP
In millions of euros Q1 Q2 H1
2018/19 2019/20 2018/19 2019/20 2018/19 2019/20 Change
04/01– 04/01– 07/01– 07/01– 04/01– 04/01– in %
06/30/2018 06/30/2019 09/30/2018 09/30/2019 09/30/2018 09/30/2019
Revenue 3,469.0 3,336.1 3,205.0 3,205.5 6,674.0 6,541.6 –2.0
EBITDA 513.0 370.9 347.1 294.6 860.1 665.5 –22.6
EBITDA margin 14.8% 11.1% 10.8% 9.2% 12.9% 10.2%
EBIT 323.8 156.7 155.7 72.9 479.5 229.6 –52.1
EBIT margin 9.3% 4.7% 4.9% 2.3% 7.2% 3.5%
Profit before tax 294.3 124.4 127.2 38.1 421.5 162.5 –61.4
Profit after tax1 226.3 90.4 93.6 24.8 319.9 115.2 –64.0
Employees
(full-time equivalent) 51,827 51,670 51,931 51,275 51,931 51,275 –1.3
1
Before deduction of non-controlling interests and interest on hybrid capital.
Net financial debt can be broken down as follows:
NET FINANCIAL DEBT
In millions of euros 09/30/2018 09/30/2019
Financial liabilities, non-current 2,376.3 3,584.6
Financial liabilities, current 1,756.7 1,689.1
Cash and cash equivalents –264.0 –312.5
Other financial assets –256.0 –442.5
Loans and other receivables from financing –14.0 –15.6
Net financial debt 3,599.0 4,503.1
REPORT FOR THE FIRST HALF OF 2019/20 7STEEL DIVISION
QUARTERLY DEVELOPMENT OF THE STEEL DIVISION
In millions of euros Q1 Q2 H1
2018/19 2019/20 2018/19 2019/20 2018/19 2019/20 Change
04/01– 04/01– 07/01– 07/01– 04/01– 04/01– in %
06/30/2018 06/30/2019 09/30/2018 09/30/2019 09/30/2018 09/30/2019
Revenue 1,276.4 1,182.1 1,139.2 1,139.0 2,415.6 2,321.1 –3.9
EBITDA 223.9 150.6 118.5 109.9 342.4 260.5 –23.9
EBITDA margin 17.5% 12.7% 10.4% 9.6% 14.2% 11.2%
EBIT 145.0 60.8 36.7 20.2 181.7 81.0 –55.4
EBIT margin 11.4% 5.1% 3.2% 1.8% 7.5% 3.5%
Employees (full-
time equivalent) 11,111 10,730 10,972 10,682 10,972 10,682 –2.6
MARKET ENVIRONMENT caused order levels to decline because the in
AND BUSINESS DEVELOPMENT dustry’s production levels dropped to an extent
Following two years of good developments in the even greater than that revealed by the sales
European steel industry, demand has gradually figures. Yet the export-oriented mechanical en-
dampened in the course of the calendar year gineering industry also had to contend with de-
2019 to date. Exorbitant increases in premateri- clining momentum, as did the white goods and
als prices in tandem with decreases in steel p rices consumer goods industry. Solely the construction
have aggravated the tensions in steelmakers’ industry remained robust during the first half of
environment. Add to that continued high imports the business year 2019/20.
of steel into the EU’s Single Market. In July 2019, The energy sector, which is the most important
iron ore prices climbed to a level not seen since customer segment of the Heavy Plate business
2013 owing to both temporary production shut- segment, experienced overall declines. Project
downs and unexpectedly strong demand for raw activities in this sector, especially in the demand-
materials from China. The “Safeguard Measures” ing deep sea pipeline segment, were as restrained
initiated by the European Union were unable by as before. Only the niche segment of high-quality
and large to contain the pressure generated by clad plates for the downstream activities of the
flat steel imports. In turn, this lowered European oil and natural gas sector exceeded expectations.
steelmakers’ production of crude steel by about There were no major shutdowns at the direct re-
3% in the first eight months of 2019 compared duction plant in Corpus Christi, Texas, USA, during
with the same period of the previous year. the business year to date, and production pro-
The Steel Division, too, was exposed to these ceeded as planned. Nonetheless, both the rise in
conditions in the first half of the business year iron ore prices and the decline in scrap prices over
2019/20. Thanks to long-standing customer re- the summer had adverse effects on the facility’s
lationships, however, it succeeded nonetheless performance.
in delinking itself to some extent from price de-
velopments in spot markets. But the increases in FINANCIAL KEY PERFORMANCE INDICATORS
the price of iron ore had substantially negative Year over year, the Steel Division’s revenue fell by
effects on costs. The great importance of the 3.9%, from EUR 2,415.6 million in the first half
German automotive industry to the Steel Division of 2018/19 to EUR 2,321.1 million in the first half
8of the reporting period due to slightly weaker The quarter-on-quarter (QoQ) comparison of the
deliveries and somewhat lower prices. Although first and second quarters of the 2019/20 business
the previous year’s comparative figure for de year shows the fallout from the increasingly diffi-
liveries was about 10% lower than that for the cult economic environment in addition to cus-
first half of the business year 2017/18 owing to tomary seasonal shortfalls. Against this backdrop,
the general overhaul of Blast Furnace A, sales for revenue fell by 3.6%, from EUR 1,182.1 million in
the first six months of the current business year the first quarter of the business year 2019/20 to
declined a little bit yet again due to macroeco- EUR 1,139.0 million in the second quarter. While
nomic factors. Prices fell, particularly in the short- the percentage decline in volumes corresponds
term contract business, but remained largely to the generally expected shortfall in the summer
stable for the time being in connection with an- quarter, the increases in the cost of iron ore did
nual contracts. The dampened economic sentiment not lead to higher steel prices as it did in the past;
that has gripped the European steel industry on the contrary, they triggered further price de-
is reflected chiefly on the earnings side. Given clines in the short-term contract business. As a
the continual increase in raw materials prices result, the quarter-on-quarter decline in earnings
that stem from sharp increases in iron ore prices, exceeded the fall in revenue many times over due
lower prices have had an additional negative to the price/cost pressures. Consequently, EBITDA
effect on earnings growth. Accordingly, in the dropped by 27.0%, from EUR 150.6 million in the
first half of the business year 2019/20 EBITDA first quarter of the business year 2019/20 to EUR
dropped year over year by 23.9%, from EUR 109.9 million in the second quarter; the EBITDA
342.4 million (margin of 14.2%) to EUR 260.5 margin fell accordingly from 12.7% to 9.6%.
million (margin of 11.2%).
REPORT FOR THE FIRST HALF OF 2019/20 9HIGH PERFORMANCE METALS DIVISION
QUARTERLY DEVELOPMENT OF THE HIGH PERFORMANCE METALS DIVISION
In millions of euros Q1 Q2 H1
2018/19 2019/20 2018/19 2019/20 2018/19 2019/20 Change
04/01– 04/01– 07/01– 07/01– 04/01– 04/01– in %
06/30/2018 06/30/2019 09/30/2018 09/30/2019 09/30/2018 09/30/2019
Revenue 780.3 777.6 765.6 723.3 1,545.9 1,500.9 –2.9
EBITDA 129.2 99.2 100.6 78.2 229.8 177.4 –22.8
EBITDA margin 16.6% 12.8% 13.1% 10.8% 14.9% 11.8%
EBIT 91.9 57.1 63.8 35.3 155.7 92.4 –40.7
EBIT margin 11.8% 7.3% 8.3% 4.9% 10.1% 6.2%
Employees (full-
time equivalent) 14,344 14,302 14,528 13,837 14,528 13,837 –4.8
MARKET ENVIRONMENT a weakening of automotive demand, which had
AND BUSINESS DEVELOPMENT corresponding adverse effects on both tool steel
The ongoing global decline in demand for tool and high-speed steel for cutting tools. By contrast,
steel defined the first half of the business year the aerospace segment delivered further growth
2019/20 for the High Performance Metals Division. while the oil and natural gas segment remained
Worldwide, the weakness of the automotive in- largely stable. The Section 232 protectionist tariffs
dustry lowered the number of both vehicles pro- of 25% on all steel products that the United States
duced and new models brought to market. De- imposed continue to generate strong uncertain-
mand for tool steel suffered commensurately. But ty in the market, simultaneously intensifying com-
the consumer goods industry also weakened petitive pressures.
worldwide and thus was unable to offset devel- In South America, the situation improved but
opments in this product segment. marginally during the first half of the business year
The special materials segment presented a much 2019/20.
better picture during the reporting period. For The market environment in Asia was shaped by
example, activities related to the oil and natural the trade war with the United States, especially in
gas industry were generally stable, albeit at a China. Here, too, the dramatic downturn in auto-
slightly weaker level. Despite softening global motive production after years of stable growth
markets, the division succeeded not only in suc- as well as restrained demand from the consumer
cessfully leveraging investments to expand its goods industry were the main factors driving the
product portfolio but also in substantially enhanc- market decline.
ing its competitiveness. Capacity utilization at those of the division’s plants
It even posted considerable growth in the aero- that are chiefly focused on tool steel was substan-
space segment during the business year to date. tially lower due to the significant declines in de-
Thanks to its investment in a new fast forge press, mand than that at plants mainly geared to special
the High Performance Metals Division now is the materials. Consequently, efficiency-boosting
only European manufacturer of demanding measures aimed at stabilizing earnings and gen-
pre-materials for aircraft engine discs. erating cash flow were introduced at all produc-
Its performance in Europe and North America tion facilities.
largely paralleled this scenario. The market saw
10Steps to lower costs were also taken in the global the first half of the business year 2019/20. For
Value Added Services business segment. In par- example, deliveries fell by 12% year over year.
ticular, this concerns human resources, investments, The significant increase in the cost of the division’s
and inventory management. But it does not affect most important alloy material (nickel) caused the
the consistent alignment of Value Added Services prices for tool steel and special materials to rise
with the Group’s aim to differentiate itself from across the board. Against this backdrop, the 2.9%
the competition. In addition to offering expand- decline in revenue, from EUR 1,545.9 million in
ed services, increasingly this approach also in- the previous year to EUR 1,500.9 million in the
cludes achieving efficiency gains for customers’ current year, is relatively moderate. The decline
benefit. in EBITDA is due chiefly to lower capacity utiliza-
By now, the High Performance Metals Division tion at the division’s production facilities and
manufactures components and parts using ad- declining sales. On the whole, the operating result
ditive manufacturing processes (3D printing) at dropped by 22.8 year over year, from EUR 229.8
seven sites worldwide. The division’s proprietary million to EUR 177.4 million, causing the EBITDA
development of powder alloys is a unique selling margin to shrink from 14.9% to 11.8%.
proposition (USP) in this market and underscores The quarter-on-quarter (QoQ) comparison of the
its position as a premium supplier. Additive pro- first and second quarters of the 2019/20 business
cesses enable completely new ways of designing year also shows declining KPIs, most of which stem
components and parts, boosting not only the from seasonal effects. As a result, revenue fell by
range of technical applications but also their 7.0% quarter on quarter, from EUR 777.6 million
operational cost-effectiveness. Transcending its to EUR 723.3 million. Given unchanged pricing,
role as a component supplier, the division provides this is due to weaker volume trends. Moreover, the
specialist expertise to its customers regarding summer quarter (i.e. a period of slightly declining
additive manufacturing processes already in the demand for seasonal reasons) is generally used
design phase. to carry out more extensive maintenance work,
with the commensurate effect on costs. These two
FINANCIAL KEY PERFORMANCE INDICATORS factors lowered the division’s EBITDA between the
The increasingly difficult economic environment first and the second quarter of the business year
is reflected in the key performance indicators 2019/20 by 21.2%, from EUR 99.2 million (margin
(KPIs) of the High Performance Metals Division for of 12.8%) to EUR 78.2 million (margin of 10.8%).
REPORT FOR THE FIRST HALF OF 2019/20 11METAL ENGINEERING DIVISION
QUARTERLY DEVELOPMENT OF THE METAL ENGINEERING DIVISION
In millions of euros Q1 Q2 H1
2018/19 2019/20 2018/19 2019/20 2018/19 2019/20 Change
04/01– 04/01– 07/01– 07/01– 04/01– 04/01– in %
06/30/2018 06/30/2019 09/30/2018 09/30/2019 09/30/2018 09/30/2019
Revenue 799.8 778.8 747.6 758.7 1,547.4 1,537.5 –0.6
EBITDA 98.5 90.0 85.3 82.3 183.8 172.3 –6.3
EBITDA margin 12.3% 11.6% 11.4% 10.8% 11.9% 11.2%
EBIT 56.3 44.9 44.4 31.4 100.7 76.3 –24.2
EBIT margin 7.0% 5.8% 5.9% 4.1% 6.5% 5.0%
Employees (full-
time equivalent) 13,577 13,371 13,512 13,369 13,512 13,369 –1.1
MARKET ENVIRONMENT However, pricing adjustments were unable to
AND BUSINESS DEVELOPMENT fully offset the massive increases in the cost of
The first half of the business year 2019/20 has raw materials.
delivered a mixed bag for the Metal Engineering The globally positioned welding consumables
Division. While the Railway Systems and welding segment delivered solid growth across all key
consumables segments developed along a very markets despite the worldwide cooling of the
solid trajectory, the wire technology and tubulars economy during the reporting period. Besides
(seamless tubes used in oil and natural gas ex- positive effects from internal restructurings in
ploration) segments, which are part of the Indus- recent years, expansions of the product portfolio
trial Solutions segment, were confronted with a as well as this segment’s ongoing development
difficult market environment. into a one-stop system provider of welding equip-
The turnout systems segment met with good de- ment and consumables have contributed to this
mand in almost all of its key markets worldwide. positive development.
In China, state-sponsored stimulus programs The wire technology segment, which manufactures
have boosted the rail technology business, among wire and steel bars chiefly for the automotive
others, whereas in Europe demand is being driven industry, has faced declining demand as well as
by the investment backlog that had built up in rising competitive pressures since the start of the
recent years. In North America, by contrast, a current business year. This led to the elimination
period of very solid development in the railway of one shift at the Donawitz, Austria, facility back
sector gave way to first signs of a weakening to- in April 2019; the plant has been operating triple-
ward the end of the business year’s first half, shift operations since then.
which was triggered by the general d ownturn in On top of the impact of the U.S.’s protectionist
the goods manufacturing industry. Section 232 tariffs, in the first six months of the
Thanks to its strong focus on the European mar- business year 2019/20 the tubulars segment
ket, the premium rail technology segment bene- (seamless tubes for oil and natural gas explora
fited from largely satisfactory demand in the tion) was also confronted with the gradual dete-
first two quarters of the business year 2019/20. rioration of its North American market. These
12developments also led to the reduction of oper- succeeded in substantially expanding its business
ations at the Donawitz facility in April 2019 from activities, was key to the generally good perfor-
four shifts to three. mance of the Railway Systems segment. Against
Due to the softening economy and the ensuing this backdrop, at EUR 1,537.5 million the division’s
cuts in the number of shifts in individual rolling revenue in the first half of the business year
facilities of processing operations, modes of pro- 2019/20 closely tracked that achieved in the
duction at the LD steelmaking plant in Donawitz same period of the previous year (EUR 1,547.4
were adjusted accordingly and the use of the million). The good earnings performance of
burden (mix of raw materials) was optimized. In Railway Systems was pivotal to the relatively
the first two quarters of the current business year, moderate decline in EBITDA by 6.3%, from EUR
developments in the cost of raw materials, par- 183.8 million (margin of 11.9%) in the first half of
ticularly that of iron ore, were driven by high volati the business year 2018/19 to EUR 172.3 million
lity and generally rising prices. This put a d amper (margin of 11.2%) in the reporting period. By
on the division’s earnings, because the increase contrast, the Industrial Systems segment’s perfor-
in raw materials prices could be passed on to mance was uneven. While the welding consumables
customers only in part. segment posted stable earnings, the EBITDA of
Steps to lower costs and boost efficiency are the wire technology and tubulars segments fell
being implemented in all of the division’s entities. dramatically.
In addition, we continue to pursue our strategy of The outcome of the quarter-on-quarter compar-
continually refining all products and expanding ison is similar, in that it pinpoints the effects of
the product portfolio in the direction of an ex- declining industrial activity in Europe on the In-
tended value chain, not least in order to circum- dustrial Systems segment. In terms of both revenue
vent the growing pressure on commodity products. and earnings, the performance during the business
year to date of segments that are exposed to
FINANCIAL KEY PERFORMANCE INDICATORS general economic developments continued to
Year over year, the Metal Engineering Division deteriorate. This was intensified by seasonally
posted stable revenue in the first half of the busi- lower demand in the summer quarter. Both the
ness year 2019/20. Declines in the Industrial Sys- revenue and earnings of the Railway Systems
tems segment were offset through increases in segment rose slightly from the first to the second
the Railway Systems segment. Sales of wire and quarter of the business year 2019/20. The division
seamless tube products were substantially lower on the whole posted revenue of EUR 758.7 million
due to the intensifying downturn in both the auto for the second quarter of the current business
motive and the energy industry. As regards rail year, down 2.6% from the previous year’s level of
technology, deliveries of tracks increased by about EUR 778.8 million. At 8.6%, the decline in EBITDA
5% in the reporting period. Prices also rose be- from EUR 90.0 million (margin of 11.6%) to EUR
cause higher raw material costs were passed on 82.3 million (margin of 10.8%) was a bit more
to customers. The turnout systems segment, which pronounced.
REPORT FOR THE FIRST HALF OF 2019/20 13METAL FORMING DIVISION
QUARTERLY DEVELOPMENT OF THE METAL FORMING DIVISION
In millions of euros Q1 Q2 H1
2018/19 2019/20 2018/19 2019/20 2018/19 2019/20 Change
04/01– 04/01– 07/01– 07/01– 04/01– 04/01– in %
06/30/2018 06/30/2019 09/30/2018 09/30/2019 09/30/2018 09/30/2019
Revenue 748.0 737.6 697.1 715.7 1,445.1 1,453.3 0.6
EBITDA 84.4 58.4 68.2 48.7 152.6 107.1 –29.8
EBITDA margin 11.3% 7.9% 9.8% 6.8% 10.6% 7.4%
EBIT 55.7 24.3 38.7 13.8 94.4 38.1 –59.6
EBIT margin 7.5% 3.3% 5.6% 1.9% 6.5% 2.6%
Employees (full-
time equivalent) 11,938 12,374 12,052 12,486 12,052 12,486 3.6
MARKET ENVIRONMENT productivity has risen. But numerous other opti-
AND BUSINESS DEVELOPMENT mization measures will be necessary to meet the
The performance of the Metal Forming Division originally planned targets. In China, the growth
in the first half of the business year 2019/20 rates of the German premium auto brands have
was weaker overall. Aside from the declining eco- fallen a bit in a sharply shrinking automotive
nomic momentum in major customer segments market overall, but the local branches of Auto-
and regions, the division was also confronted motive Components succeeded nonetheless in
with a massive increase in the start-up costs of a benefiting from the solid demand.
component plant for the automotive industry in Declining automotive sales worldwide also had
the United States. a negative impact on the Tubes & Sections busi-
To date, the business climate in the Automotive ness segment in the first half of the business year
Components business segment has clouded over 2019/20. The Rotec Group, which specializes in
during the current business year. The decline of safety components for the automotive industry
about 2% in the sales of Europe’s renowned auto and is a link in the global supplier industry, was
makers triggered a slightly greater decline in faced with lower sales as well as shrinking supply
production. In North America, demand for the chain inventories. Regionally, orders from the
locally manufactured products of the Automotive commercial and construction machinery industry
Components segment was altogether satisfactory in Europe have declined. But the traditionally
in an otherwise stagnating market. While the late-cycle construction industry is still delivering
number of new light vehicle registrations has largely stable performance in the European S ingle
fallen, the strong trend toward sport utility vehicles Market. The Tubes & Sections business segment
(SUVs) remains unbroken. Our plant in Cartersville, benefited from much better demand in the U nited
Georgia, USA, which is in its start-up phase, had States, relatively speaking. Both storage tech
to contend with substantially higher start-up costs nology and the aerospace industry are the bed-
in the first half of the current business year. This rock of the solid order volume in this region. So
had a correspondingly negative impact on the far, Brazil’s trends toward a recovery have been
business segment’s earnings. Some of the steps weaker than expected.
that have been taken to ameliorate the situation Although the momentum in its market has been
have already been successfully implemented, and steadily declining in the most recent quarters, the
14Precision Strip business segment delivered a largely Automotive Components as well as Warehouse
satisfactory performance in the first half of the & Rack Solutions business segments. While the
business year 2019/20 thanks to its good market start-up of the Cartersville plant had a positive
position. While orders on hand recently stabilized effect on revenue in Automotive Components,
at a lower level in China, the segment’s environ- the positive performance of Warehouse & Rack
ment in the U.S. has become less favorable. The Solutions was largely driven by the completion of
European market for the products of the Precision numerous projects. Earnings, however, present
Strip business segment is shrinking, too, but cus- a completely different picture. The decline in
tomers’ order levels still remain relatively solid. this key performance indicator stems to a large
The Warehouse & Rack Solutions business segment, degree from the start-up difficulties at the Carters
which specializes in manufacturing and installing ville plant. Owing to the gradual dampening of
high-bay warehouses and system racks, has been economic sentiment, all business segments of
profiting for years from the excellent e-commerce the Metal Forming Division other than Warehouse
business climate. Hence the scope of this segment’s & Rack Solutions recorded declining profits. On
projects in the first two quarters of the current the whole, EBITDA fell year over year by 29.8%,
business year was highly satisfactory. In contrast from EUR 152.6 million (margin of 10.6%) in the
to the U.S. market, which continues to prosper in first half of the business year 2018/19 to EUR
this respect, the project pipeline in Europe has 107.1 million (margin of 7.4%) in the reporting
recently been buffeted by declining market dy- period.
namics. Quarter to quarter, the division’s key financial
indicators point to declines that stem from both
FINANCIAL KEY PERFORMANCE INDICATORS economic and seasonal effects. Revenue fell by
The Metal Forming Division had to contend with 3.0%, from EUR 737.6 million in the first quarter
significant year-over-year declines in earnings in of the business year 2019/20 to EUR 715.7 million
the first half of the business year 2019/20 despite in the second quarter. Solely the Automotive Com-
stable revenue growth. This downturn is due only ponents business segment managed to offset
in part to the general downward trend; it stems shrinking delivery volumes at other sites thanks
for the most part from the sharply higher start-up to the steep ramp-up curve at the Cartersville
costs at the Automotive Components plant in plant that continued unabated. In terms of earn-
Cartersville, Georgia, USA. As a result, the segment’s ings, the weakening trend affected especially the
revenue of EUR 1,453.3 million is practically the two larger business segments (Tubes & Sections
same as in the same period of the previous year and Automotive Components). As a result, EBITDA
(EUR 1,445.1 million). The revenue of both Tubes dropped by 16.6%, from EUR 58.4 million (margin
& Sections and Precision Strip was down slightly of 7.9%) in the first quarter of the business year
on account of the prevailing business climate, yet 2019/20 to EUR 48.7 million (margin of 6.8%) in
these declines were offset by increases in the the second quarter.
REPORT FOR THE FIRST HALF OF 2019/20 15INVESTMENTS a highly advanced stage. The forging facility will
be up and running in the next few months. The
Following a steady stream of investments in recent High Performance Metals Division already invest-
years, some of which substantially exceeded de- ed in a high-tech fast forge press for highly stress
preciation, the voestalpine Group made fewer resistant, rotating aircraft turbine components a
investments in the business year 2019/20 to date. year earlier.
As a result, this key performance indicator will be
more or less equivalent to depreciation in the The investment volume of the Metal Engineering
current business year. This must be considered Division in the first half of the business year 2019/20
against the backdrop of both the weakening (EUR 61.3 million) was slightly less than in the first
economy and the optimization of processes in half of the business year 2018/19 (EUR 65.4 mil-
previously implemented projects. Overall, the lion). Currently, this division’s most important pro
investments of the voestalpine Group fell by ject involves the construction of a new continuous
28.9%, from EUR 474.6 million in same period casting facility (“CC4”). This cutting-edge facility
the previous year to EUR 337.5 million in the first will replace the existent one (“CC2”) and create
half of the business year 2019/20. the conditions for even greater improvements in
the product quality of the pre-materials used in
The investments of the Steel Division dropped processing operations. It is slated to be commis-
by almost two thirds, from EUR 206.8 million in sioned at the end of the current business year.
the previous year to EUR 72.2 million in the re-
porting period. The comprehensive overhaul of The investment expenditure of the Metal Forming
Blast Furnace A at the Group’s facility in Linz, Division in the first half of the business year 2019/20
Austria, from June 2018 through the end of Sep- (EUR 81.0 million) was 14.8% less than that in the
tember 2018 was the last of its major projects to first half of the business year 2018/19 (EUR 95.1
be implemented. Presently, the Steel Division is million). In recent years, this division had focused
focused on optimizing existent facilities as well on the international rollout of its product innova-
as on select replacement and maintenance in- tions in automotive components (among others
vestments. Among other things, the project to in China, the United States, and Mexico). This year,
replace the crane track girders in the steelworks it is focused on optimizing processes at individu-
is now entering the second phase. And a testing al facilities. The Tubes & Sections business segment
center is being established for the strip steel seg- is currently pushing investments in new process
ment to determine the mechanical properties of technologies. For example, it invested in a power
cold-rolled steel strip. ful processing center in Shelbyville, Kentucky, USA,
specifically for the aerospace industry. The French
At EUR 114.3 million, the investments of the High entity, Profilafroid, also focused on issues of pro-
Performance Metals Division in the first half of duction technology in the first half of the business
the business year 2019/20 were 12.1% higher year 2019/20 by installing a customized section-
than the investments of EUR 102.0 million in the ing line.
first half of the business year 2018/19. Currently,
this division’s most important project concerns
the construction of the new special steel plant in BUSINESS TRANSACTIONS
Kapfenberg, Austria. Specialized companies WITH ASSOCIATED COMPANIES
are building the steel factory floor, the energy OR PARTIES
delivery system as well as the piping systems, thus
ensuring that the construction work remains on Information regarding business transactions with
schedule. The factory floor will be completed by associated companies and parties is available in
the end of February 2020. The second half of the the Notes.
calendar year 2021 should see the completion
of the project on the whole as well as the onset
of the start-up phase. Work on another key pro RISK MANAGEMENT
ject at the Kapfenberg site—a next-generation
production facility for the construction of struc- Proactive risk management, as it has been under
tural aircraft components—has already reached stood by and practiced in the voestalpine Group
16for many years, serves both to ensure the existence retroactively claim the energy tax rebate for pe-
of the Group as a going concern in the long term riods after February 1, 2011. In its subsequent
and to boost its value and thus is key to the success ruling, the Austrian Federal Finance Court declared
of the Group overall. As part of the systematic risk that the restriction to manufacturing companies
management process (which is undertaken Group- did not take effect. The Tax Office appealed this
wide several times a year in uniform fashion) and decision to the Higher Administrative Court, which
as part of internal control systems (ICS, which are in September 2017 (decision dated 9/14/2017,
also integral elements of the Group’s structural EU 2017/0005 and 0006-1) again sought recourse
and workflow organization) material risks are with the ECJ. The final applications of the advocate
systematically recorded, analyzed, assessed, and general were filed on February 14, 2019. To date,
subjected to permanent monitoring early on; it is not known when the decision on the matter
appropriate measures to minimize risks are taken pending before the ECJ (C-585/17) will be hand-
as necessary. ed down. No adverse impact is anticipated for
the voestalpine Group.
The risk environment of the voestalpine Group in
the first six months of the current business year as Based on the insights gained as a result of past
well as compared with the prior years has remained economic and financial crises and their effects
largely unchanged. Material fields of risk—such on the voestalpine Group, additional steps—pri-
as the availability of raw materials and energy marily of a corporate nature—were taken in recent
supplies, the loss of critical production facilities, years to minimize the Group’s risk exposure, which
the loss of critical IT systems, the CO2 issue, knowl- are also described in detail in the Annual Report
edge management, or financial risks—and the 2018/19, and these measures have been and
respective precautionary measures thus have are being consistently implemented in the current
remained largely the same. The material fields of business year. Given the ongoing difficulties in
risk and the respective measures to minimize risk, the economic environment, as before a working
which were presented and described in detail in group is tasked with monitoring any fallout from
the Annual Report 2018/19 of the voestalpine the Brexit decision. Consequences arising from
Group (Annual Report 2018/19, “Report on the (punitive) tariffs and global trade disputes are
Company’s Risk Exposure”), thus remain valid for subject to continuous monitoring as well.
this interim management report.
The measures that have been put in place to avert
There were no changes with respect to the disclo- or prevent identified risks aim to reduce potential
sures in the Management Report for the business losses and/or minimize the likelihood of losses
year 2018/19 regarding the Austrian energy tax occurring.
rebate. Note that the Austrian Federal Finance
Court (Bundesfinanzgericht) has directed a request It must be stated that, as of the date of this in
for a preliminary ruling to the European Court of terim management report, the risk exposure of
Justice (ECJ) (BFG 10/31/2014, RE/5100001/2014). and resulting uncertainties in the voestalpine
The amendment of the Austrian Energy Tax Rebate Group are limited and manageable, and do not
Act (Energieabgabenvergütungsgesetz) by means threaten the continuation of the Group as a going
of the 2011 Austrian Budget Accompanying Act concern. There are no threats to the company as
(Budgetbegleitgesetz – BBG 2011), which applies a going concern in the future, nor are any such
to periods after December 31, 2010, limited the risks discernible as of the semi-annual reporting
energy tax rebate to manufacturing companies. date.
Subsequently, the question of whether this restric-
tion, which may be deemed state aid, violated
EU law was submitted to the ECJ for a preliminary OUTLOOK
ruling; this has actually been affirmed by the court
(ECJ 7/21/2016, docket no. C-493/14, Dilly’s The Management Board’s assessment at the
Wellnesshotel GmbH). As a result, the restrictions start of the business year 2019/20—specifically,
pursued by the Budget Accompanying Act 2011 that the previous year’s performance based on
did not enter into force with legal effect and, EBITDA would probably be achievable again in
therefore, service providers, in particular, can the current business year—was premised on a
REPORT FOR THE FIRST HALF OF 2019/20 17number of factors. At the time, the key influencing toward the end of the current business year’s first
variables in market and cost terms on which this half, to significant demand declines in many mar-
assumption was based were as follows: kets that are key to the voestalpine Group.
»»A cooling of the economy in the markets that Although iron ore prices did ease over the summer,
are key to voestalpine, but no recessionary or the expected margin growth did not materialize.
crises scenarios; Record imports into the European Union combined
»»A cooling of the momentum in the automotive with weak intra-European demand continued to
industry, but no new dramatic distortions in the depress steel prices at the end of this reporting
automotive market on account of the new emis- period.
sions test to be introduced in Europe in Septem- Given these negative macroeconomic develop-
ber 2019; ments, the scenario posited at the start of the
»»No negative effects from the global trade wars current business year no longer applies. From
and/or the Brexit above and beyond the anti- today’s vantage point, it is to be expected that
cipated cooling of the economy; the third business quarter is likely to be as difficult
»»A normalizing of iron ore prices over the course as the second quarter of the business year 2019/20.
of the business year; and Positive effects from both seasonal influences
»»Positive dispositions of challenges internal to and the resolution of intracorporate issues as well
the company. as earnings contributions from the steps taken to
lower costs and boost efficiency should take effect
Key assumptions largely did not come to pass in the business year’s last quarter.
over the course of the first six months of the current In this difficult environment, the Management
business year. Board’s focus is on measures designed to stabilize
While the intracorporate challenges are being earnings and generate free cash flow. Aside from
dealt with and certain improvements are still short-term actions, over the next few months this
expected to be realized, the slowdown in the will also entail examining the ramifications of the
momentum of the automotive industry has been changed global economic framework for the
both more intense and widespread than originally long-term positioning of all of the Group’s mate-
expected, even though the new emissions test rial business segments.
that was introduced in September of this year did At this point in time, the Management Board of
not trigger the distortions seen a year ago. voestalpine AG thus expects EBITDA of about
The global trade war along with protectionist EUR 1.3 billion for the business year 2019/20—
policies have clearly crimped investments in many an assessment that is largely in line with market
parts of the world and thus have led, particularly expectations.
18INVESTOR
RELATIONS
voestalpine AG VS. THE ATX AND INTERNATIONAL INDICES
Changes compared to March 31, 2019, in %
voestalpine ATX (Austria) STOXX Index (Europe) DJ Industrial Index (USA)
110
105
100
95
90
85
80
75
70
65
April 1, 2019 September 30, 2019
DEVELOPMENT OF THE economic indicators, such as the Ifo Business
voestalpine SHARE Climate Index or the Purchasing Managers’ Indi-
ces (PMI) for the processing industries in Europe,
At the start of the 2018 calendar year—i.e. right have declined yet further due to the resulting
at the time at which the U.S. launched its trade uncertainties, especially in export-driven econo-
wars against the rest of the world—the precursor mies. The initial impact of these developments on
indicators in Europe began to weaken, putting the global economy already made themselves
increasing pressure on the shares of companies felt during the second half of the 2018 calendar
sensitive to macroeconomic developments. The year, first in China and then in Europe as well.
trade war between the United States and China While China counteracted the decline in both
has escalated in the 2019 calendar year. Leading consumer and export-driven segments through
REPORT FOR THE FIRST HALF OF 2019/20 19economic growth measures in the construction ing in minor negative territory of −2% at the end
and infrastructure industry, the economic head- of September 2019, the price of voestalpine’s
winds in Europe have intensified substantially in stock was highly volatile during the entire period.
the course of the 2019 calendar year. The eco- Regularly recurring, geopolitical uncertainties—
nomic downturn has had its greatest impact in such as the growth of Italy’s sovereign debt, the
the European steel sector. In this industry, the uncertain resolution of the Brexit, the U.S.’s conflict
decline in demand has intensified what were al- with Iran, the attacks on the oil industry in the
ready challenging structural conditions, for ex- Middle East, etc.—that pushed fears of a recession
ample, the rising cost of CO2 allowances as well into the forefront of investors’ minds further ag-
as ineffective steps to limit surging steel imports. gravated the large fluctuations. Against this
To make matters worse, the economic environment backdrop, the voestalpine share had to contend
in downstream processing has become increas- with a loss of just under 25% in the first half of
ingly difficult too. the business year 2019/20. While its price at the
start of the business year still was EUR 28.04, its
Capital market players responded by issuing closing price as of the end of September 2019
lower earnings forecasts which, in turn, intensified was EUR 21.08. In contrast to the ATX, the Dow
the downward spiral of voestalpine’s share price Jones Industrial and the STOXX Index Europe even
in the first six months of the business year 2019/20, followed a slightly positive trend in the same
thus prolonging the previous year’s trend. While period.
the ATX trended laterally during this period, end-
BONDS
Interest Share price
Type of bond ISIN number Issuing volume rate (09/30/2019)
Hybrid bond 2013 AT0000A0ZHF1 EUR 500 million 7.125%1 100.39
Corporate bond 2014–2021 AT0000A19S18 EUR 400 million 2.25% 103.45
Corporate bond 2017–2024 AT0000A1Y3P7 EUR 500 million 1.375% 102.88
Corporate bond 2019–2026 AT0000A27LQ1 EUR 500 million +1.750% 103.13
1
Interest rates: 7.125% p.a. from issue date to October 31, 2014 (excl.); 6% p.a. from October 31, 2014, to October 31, 2019;
five-year swap rate (from October 29, 2019) +4.93% p.a. from October 31, 2019, to October 31, 2024;
thereafter three-month EURIBOR +4.93% p.a. + step-up of 1% p.a. from October 31, 2024.
REDEMPTION OF THE 2013 HYBRID BOND 500 million in full pursuant to the Bond Conditions
On September 9, 2019, the Management Board effective as of the bond’s first possible call date,
of voestalpine AG resolved to redeem the 2013 namely, October 31, 2019 (redemption date).
hybrid bond that had an issuing volume of EUR
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