Company presentation

voestalpine Edelstahl GmbH

|www.voestalpine.com


voestalpine Edelstahl GmbHCompany Presentation, BY 2013/14


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voestalpine AG

2 Company Presentation, BY 2013/14

Key figures for 2013/14

Employees 48,113

Revenue EUR 11,228.0 million

EBITDA EUR 1,382.7 million

EBIT EUR 792.3 million

EBIT margin 7.1%


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voestalpine AG

Company Presentation, BY 2013/143

Steel Special Steel Metal Engineering Metal Forming

33% 24%23% 20%


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voestalpine AG

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Anyone who wants to change the world can depend on us.

We’re the partner of choice worldwide for demanding product solutions involving steel and that allow our customers to stay that decisive step ahead.

We are the world’s market leader or hold leading positions with all of our four divisions.


Steel Special Steel

Metal Engineering Metal Forming


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voestalpine AG


Steel Special Steel Metal Engineering Metal Forming

Global leadershipin quality for premium steel strip & cast productsworld’s leading provider of heavy plate.

Sectors:Automotive industry and suppliers, energy, household appliances,construction industry

Global market leader for tool steel leading position for high-speed steel and special forged parts

Sectors:Toolmaking, automotive industry, energy, aviation

World market leaderfor turnout technology leading positions for rails, processed wire, seamless tubes and welding consumables

Sectors:Railway systems, energy, automotive industry, machine construction andsteel construction industry

World’s leading providerof high-quality metal processing solutions in the field of custom andspecial sections, precision strip steel and special components for automotive & aviation industries

Sectors:Automotive, construction and energy industries, storage technology,machine construction and steel construction industries


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voestalpine Edelstahl at a glance voestalpine Edelstahl GmbH - lead company of the Special Steel Division

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

8 production sites in Europe, North- and South America and a sales network with 150 warehouse and service sites in 45 countries on all continents

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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Historic Milestones

1991Austrian 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)

1995Initial 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

2013 voestalpine Edelstahl GmbH acquires Eifeler Group and expands the service portfolio for tool steel with coating



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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

(in all product categories)

Clearly defined core business

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



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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)

Worldwide sales and service network with 150 warehouse and service sites in 45 countries



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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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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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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, 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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voestalpine Edelstahl in key figuresFinancial figures 2013/14 in m€ Operating figures 2013/14

Net sales 2.627,9

EBITDA 358,5

EBIT 224,4

Employees (Full-time equivalent) 12.885

Production and distribution sites ~120

Net sales, EBIT in m€

2012/2013 2013/2014

Employees (Full-time equivalent)

12,72112,8852,748 2,628

222 249

2012/2013 2013/2014



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voestalpine Edelstahl in key figuresSales by region Sales by customer industry

Automotive27%

Civil & mechanical engineering 22%

Energy industry 13%

White Goods/ Consumer goods 13%

Aviation industry 10%

Construction4%

Other11%European Union 56%

(of which Austria 6%)

North America13%

Asia 14%

Brazil 8%

Rest of world 4%

Other Europe 5%



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Specific customer structure Main focus on automotive industry, power generation, oil & gas, machinery

construction and aircraft industries

Largest customer group in tool making (small and medium enterprises), therefore no dependence on large customers

Largest customer stands for less than 2% of total revenue

10 largest customers stand for less than 10% of total revenue

No volume business, average dispatch size is about 70 kg

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

~27%

Mobility/AircraftStructural parts, aero engine discs

~10%

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

~14%

Consumer goodsElectronics, household appliances, packaging

~13%

Machinery constructionCutting tools, heavy gear boxes, tooling

~22%

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



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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 2013/14 in m€ ~21

Number of researchers ~109

Number of registered patents and patent applications ~1,093

R&D expenditure in m€

R&D in figures



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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

Continous casting plant for valve steel and welding wire

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

Worldwide sales network with 150 warehouse 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 and 350

milling machines precisely cut and about 100 heat treatment furnaces harden 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 coating.



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Motivated employees make the difference Worldwide about 12,885* employees in

45 countries on every continent

Close collaboration within the workforce across the Group is the guarantee for 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 individual responsibility are prerequisites to meet customer’s needs and distinguish the Group from its competition

Europe (exkl. Austria)

37%

Austria29%

S-America 15%

Asia 12%

N-America 5%

Other 2%

Workforce by region

*Full-time eqivalentCompany Presentation, BY 2013/1420


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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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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 propose roughly 15,000 new ideas for improvement. These suggestions are assessed by expert teams.

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

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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A focus on sustainable environmental protection Active environmental protection is securely anchored in our company

philosophy. This involves maintaining a continual improvement process and adhering to environmental regulations.

We work with standardized environmental & energy management systems at our production sites. (ISO 14001 and ISO 50001)

Our production processes are designed to be energy- and resource-efficient and to avoid or reduce environmental pollution by using the best available and economically justifiable technologies.

By improving material efficiency and recyclability we are making a sustainable contribution to a future in which resources are protected.

Networking of the environmental representatives at the sites and monitoring of the legal and technological developments ensure high environmental standards across the entire Group.



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Work safety is an absolute priority The health and safety of employees at voestalpine Edelstahl and its

subsidiaries enjoy our highest priority.

We work with standardized safety & health management systems at our production sites. (OHSAS 18001)

Industrial safety and a healthy workplace are an integral part of all business processes.

International exchange of experience within Division and Group sites is important for our joint development.

Excellent work safety and workplace health provide an important contribution to the success of the company.

Our vision: Zero accidents!



|www.voestalpine.com


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