Company presentation by_2015_16_en_16-9_final

voestalpine Edelstahl GmbH

www.voestalpine.com/edelstahl


Special Steel DivisionBusiness year 2015/16


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voestalpine AG

Special Steel Division BY 2015/162

Key figures for 2015/16

Employees 48,367

RevenueEUR 11,068.7

million

EBITDA EUR 1,583.4 million

EBIT EUR 888.8 million

EBIT margin 8.0 %

Sales by regions Sales by industries

Business year 2015/16 Business year 2015/16

70% European Union

(of which Austria 8%)8% Asia

8% Rest of world

3% South America

11% NAFTA

3% Aerospace

13% Railway systems

32%

Automotive

ENERGY 16%

9% Building/

Construction

13%

Other

9% Mechanical

engineering

5% White goods/

Consumer goods

MOBILITY: 48%

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23%

33%

25%

19%

voestalpine AG

3

Steel

Special SteelMetal Engineering

Metal Forming

Revenue (in millions of euros) 3,753.7

EBIT (in millions of euros) 220.0

EBIT margin 5.9%

Employees (full-time equivalent) 10,891



EBIT margin 8.6%




EBIT margin 11.0%




EBIT margin 8.7%


Special Steel Division BY 2015/169/1/2016


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voestalpine AG

If you want to change the world, you

can depend on us.

We’re the partner of choice worldwide

for demanding product solutions

involving steel, helping our customers

stay that decisive step ahead.

We are the world market leader

or hold leading positions with all

of our four divisions.

Metal Forming Steel

Metal Engineering Special Steel

Special Steel Division BY 2015/164 9/1/2016


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voestalpine AG


Global quality leader

in premium steel strip and cast products, and the

global leading supplier of heavy plate

Sectors

Automotive industry and suppliers, energy,

household appliances, construction industry

Global market leader

in turnout technology and a leading partner for

rails, processed wire, seamless tubes and

welding consumables

Sectors

Railway systems, energy, automotive industry,

mechanical engineering and steel construction

industries


for tool steel and a leading partner for high-

speed steel, valve steel, and special forged parts

Sectors

Toolmaking, automotive industry, oil & gas

exploration, aerospace

Global leading supplier

of high-quality metal processing solutions in the

field of custom and special sections, precision

strip steel and special components for the

automotive & aerospace industriesSectors

Automotive, construction and energy industries,

warehousing technology, mechanical

engineering and steel construction industries

Steel

Metal

Engineering

Special Steel

Metal Forming

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Special Steel Division at a glance


Global leading special

steel company with a

focus on

technologically

demanding product

segments


in tool steel and global

leading supplier in high-

speed steel, valve steel

and other special steels

“One-stop shop”

With additional services

including heat treatment

and coating

8 production sites in

Europe, North and

South America, and a

sales and service

network with 160

warehouse and service

sites in 45 countries on

all five continents

Supplying customers

worldwide in the

sectors:

Automotive

Power generation

Oil & gas exploration

Mechanical

engineering

Consumer goods

Aircraft manufacture

and other selected

industry segments

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Special Steel Division at a glance


Reinhard NöbauerRobert Bauer

Business Unit HPM(High-Performance Metals) Production

Business UnitValue Added Services

Böhler Edelstahl GmbH & Co KG(Austria – Kapfenberg)

Böhler Schmiedetechnik GmbH(Austria – Kapfenberg)

Böhler Bleche GmbH (Austria – Mürzzuschlag)

Böhler Profil GmbH(Austria – Bruckbach)

Uddeholms AB(Sweden – Hagfors)

Buderus Edelstahl GmbH

(Germany – Wetzlar)

Villares Metals S.A.(Brazil– Sumaré)

ENPAR Sonderwerkstoffe GmbH(Germany - Gummersbach)

ASSAB Pacific(Asia)

Region Germany(Böhler-Uddeholm Deutschland, EschmannStahl,

Eschmann Textures, eifeler,

voestalpine Additive Manufacturing Center)

Region Western Europe(Böhler-Uddeholm, Deville)

Region North America(Böhler-Uddeholm, voestalpine Specialty Metals )

Region South America(Böhler-Uddeholm)

Region International(Böhler-Uddeholm)

voestalpineEdelstahl GmbH

Markus Potzinger

Finance & Controlling

Franz Rotter

Chairman of the Management Board Production Value Added Services

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Present in all the world’s industrialized zones


8 production sites in Austria

Kapfenberg, Mürzzuschlag, Bruckbach

Sweden

Hagfors

Germany

Wetzlar

USA

South Boston/Virginia

Brazil

Sumaré

Global sales & service network 160 warehouse and service sites

in 45 countries

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Special Steel Division in key figures

Financial and operating figures

Revenue

in millions of euros

EBITDA


EBIT


Employees

Full-time equivalent


EBIT margin

in percent

2014/15 – 2015/16

2015/16

13,470

2014/15

13,490

2015/16

2,651

2014/15

2,777

407 364

2014/15 2015/16

227

2014/15

254

2015/16 2015/16

8.6%

2014/15

9.1%

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MOBILITY: 39%

Special Steel Division in key figures


Revenue by region Revenue by industry

12% Aerospace

12% Energy

27% Automotive

4% Building construction

14% Others

12% White goods/

Consumer goods

19% Mechanical

engineering

& steel construction

53% European

Union (of which

Austria 4%)

15% NAFTA

17% Asia

7% South America

8% Rest of world

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A step ahead with state-of-the-art production

facilities …


Electric arc furnaces and

secondary metallurgical plant for

special steels used in demanding

applications

Remelting units (ESR/VAR) and

furnaces for vacuum induction

melting (VIM) to optimize

metallurgical properties

Rolling mills with extremely tight

tolerances

State-of-the-art forging machines

(open die, closed die and rotary

forging)

Continuous casting plant for

valve steel and welding wire

Powder metallurgy plant in

Austria

Atomizing plants for the

production of metal powders for

additive manufacturing

Screw press for the production

of aerospace components

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in all product forms

…for the production of high-performance materials


Tool steel High-speed steel Valve steelSpecial engineering

steel

Powder metallurgical

steelsSpecial steels Nickel-based alloys Titanium alloys

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…and a global sales network with a focused

service portfolio


Heat treatment

Machining CoatingSaws

Warehousing

No competitor in the special steel

sector has a similarly dense sales

network with warehousing, machining,

heat treatment and coating facilities.

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Our value added services network in figures


100%Customer service achieved through local

technical advice and services

~40%of all employees working in sales and service

~160warehousing and service sites in all

industrialized regions of the world

24 hourdelivery for standard products

“Ordered today – delivered tomorrow”

~1,000 high-performance saws,

350 precision milling machines,

100 and heat treatment furnaces

For customized

dimensions &

material properties

Global number 1 for service centers for tool making

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Strong partner to the Aerospace industry

Fifth largest supplier worldwide

Global sales network ensures customer

proximity to Tier 1 and OEMs

Materials & components made from special

materials, titanium and nickel-based alloys by

Böhler and Villares Metals, thin film coatings

by eifeler for highly demanding applications

Ongoing expansion of approvals & services


Special forgings, special materials, sheets

and plates, special profiles, structural components

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Reliable partner to the oil & gas industry

Pre-materials & tailor-made components in special steel and

nickel-based alloys for oil & gas production, transport, storage and

refining

Present in all oil & gas industry hot spots: customized warehousing

in Houston/USA, Singapore, Great Britain, Norway and Brazil

Fast delivery, consulting & services (individual cutting, machining,

material testing, heat treatment, coating) saves customers effort,

time and costs

Ongoing expansion of approvals and services, as well as research

activities and application developments for specific industry

challenges


Offshore equipment

Oilfield components

Steel solutions for oil & gas

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Innovation leader through additive manufacturing

The additive manufacturing process uses 3D data to manufacture

components by adding layer upon layer of metal powder. Advantages

of this technology include:

Ability to produce complex geometries (weight reduction, lattice

structures, etc.),

Customized production, low warehousing costs, small batches

Short innovation/product development cycles

Material expertise and extensive experience in powder metallurgy

within the division through Böhler and Uddeholm

Research competence center, voestalpine Additive Manufacturing

Center GmbH, in Düsseldorf in operation since April 2016

Combines the core competences of powder production with design

optimization and component production


Complex structures

Laser sintering process

Powder development

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Our strong brands make us distinctive


voestalpine Edelstahl has global leading brands

with a long tradition in the special steel sector

(multi-brand strategy)

Each brand symbolizes a separate performance

profile in the market and generates strong brand

loyalty

These brands clearly differentiate us from our

competitors

Optimizing and developing its brands creates value

for voestalpine Edelstahl

9/1/2016


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Our specific customer structure

No volume business, average dispatch weight around 70 kg


The Special Steel Division focuses on medium-sized buyers

as well as major industrial customers.

Focus

Tool making is largest

customer group (primarily

SMEs)

no dependence on a few

major customers

Largest customer

represents

10 largest customers

represent

less than

of total revenue of total revenue

less than

Automotive industry Power generation Oil & gas exploration

Mechanical engineering Aircraft construction Highly technical industry segments

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Tailor-made solutions help us stand out


CUSTOMER INTIMACY

Customer Responsive

PRODUCT LEADERSHIP

Product Differentiation

OPERATIONAL EXCELLENCE

Operational Competence

Level with the best

A step ahead of the best Clear focus on our customers (customer intimacy) is

the highest priority

Fully integrated special steel producer and one-stop

shop for production, sales and services

Global market leader in selected, technologically

highly demanding product segments – not a “mass

steel producer”

Material availability, tailored services and technical

expertise offer competitive advantage

Unique global sales network in the special steel

sector provides basis for market leadership

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Clear differentiation from the competition


Fully integrated special steel manufacturer with production, sales and services from a single source

Strongly diversified customer base, no dependence on a few major customers

Dense sales and service network secures global presence and strong customer proximity

Global market leader in selected, technologically highly demanding product segments – not a

commodity steel producer

Strong brands with a long tradition secure strong brand loyalty

9/1/2016


| Special Steel Division BY 2015/1622

Megatrends secure our long-term growthMegatrend/ industry sector

Current

contribution to total

sales

Mid-term

trend

Long-term

trend

Mobility/AutomotiveTool and component construction

~27%

Mobility/AerospaceStructural parts, engine disks

~12%

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

~12%

Consumer goodsElectronics, household appliances, packaging

~12%

Mechanical engineeringCutting tools, heavy gear boxes, tooling

~19%

The Special Steel Division is already well positioned in tomorrow’s growth markets.

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11.814.3

19.721.6 20.9 19.8 20.2

2321 21


R&D guarantees our power to innovate

Directed development of products and processes as basis for innovation and competitiveness

Focus on new steel grades and alloys as well as process simulation for metal forming and process technology

Fundamental research in close cooperation with universities, research institutes and Christian Doppler laboratories

R&D in figures

Expenditure in millions of euros

Number of employees

Number of patents & registered patents

07/08 08/09 09/10 10/11 11/12 12/13 13/14 15/16

~109

~1.039

14/1505/06 06/07

~21

9/1/2016


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Dedicated employees ensure customer proximity


13,470* employees in 45 countries around the

world

Close collaboration within networks guarantees

customer satisfaction

Group-wide feedback from the Employee Survey

enables “employee engagement“ to be measured

and provides the basis for drawing up targeted

measures within the companies

Employees with expertise and a willingness to

take on direct responsibility are prerequisites for

meeting customer needs and distinguishing the

Group from its competition

* full-time equivalent

37% Europe

(excl. Austria)

29% Austria14% S America

13% Asia

5% N America

2% Other

Employees by region

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Our values


We develop the talents of our employees

We are committed for the long term

We keep our word

We are empowered professionals

We focus on the needs of our customers

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Safety at work – an absolute priority


Employee health and safety enjoys highest priority

Standardized safety & health management systems

at our production sites (OHSAS 18001)

Industrial safety and a healthy workplace are integral

to all business processes

International exchanges between division

and Group sites encourages our joint development

Excellent work safety and workplace health are

important contributors to the success of the company

Our vision:“No accidents” !

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We are improving - continuously (CIP)


Sustainable cost reduction and ensuring competitiveness through established and

successful Continuous Improvement Program (CIP) in the companies

Employees submit roughly 15,000 ideas for improvement

which are then assessed by expert teams

Focus on four categories:

Quality, Safety at work and health,

Environmental protection, and Financial impact

Rewards for the best submissions

9/1/2016


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Our environment in focus


Active environmental protection is part of our company philosophyMaintaining a continual improvement process and adhering to environmental regulations.

Standardized environmental & energy management

systems at our production sites (ISO 14001 and ISO 50001)

Energy and resource efficiency, and avoiding or reducing

environmental pollution by using the best available and economically

justifiable technologies

Sustainable contribution to a future in which resources are protected by improving

material efficiency and recyclability

Networking of environmental representatives at the sites and monitoring legal and

technological developments to ensure high environmental standards across the Group

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Historical milestones


2016

2013

2011

2008

2007

2003

1995

1991

Acquisition of ATT (Shanghai) and the Sermetal Group (Spain/Portugal)

Start of the voestalpine Additive Manufacturing Center in Düsseldorf

voestalpine Edelstahl GmbH acquires Eifeler Group and expands the service portfolio to add coating

for tool making

Holding company Böhler-Uddeholm AG renamed voestalpine Edelstahl GmbH

Full integration into the group as the Special Steel Division

Austrian voestalpine AG takes over Böhler-Uddeholm

The Republic of Austria sells its remaining stake in Böhler-Uddeholm

Partial privatization with initial public offering on the Vienna Stock Exchange, majority privatization in the following year

Austrian Böhler Group and Swedish Uddeholm Group merge to form the holding company Böhler-Uddeholm Group. Both

companies enjoy a long history – Böhler since 1446 and Uddeholm since 1668. Böhler-Uddeholm is fully owned by the ÖIAG

(Republic of Austria)

9/1/2016


www.voestalpine.com/edelstahl


Thank you

Company presentation by_2015_16_en_16-9_final

Presentations & Public Speaking

Transcript of Company presentation by_2015_16_en_16-9_final