Voestalpine : Report for Q1 2021/22 pdf | 113 KB

REPORT FOR THE

FIRST QUARTER OF 2021/22

voestalpine AG www.voestalpine.com

voestalpine GROUP KEY FIGURES

Q 1 2020/21 VS. Q 1 2021/22

In millions of euros		Q 1 2020/21	Q 1 2021/22		Change
		04/01 - 06/30/2020	04/01 - 06/30/2021		in %
Income statement
Revenue		2,397.3	3,490.0	45.6
EBITDA		157.8	539.6	242.0
Depreciation		206.5	200.0		-3.1
EBIT		-48.7	339.6
Profit before tax		-74.4	318.8
Profit after tax1		-69.7	259.2
Statement of financial position
Investments in tangible and intangible assets
and interests		135.4	118.3		-12.6
Equity		5,517.1	5,970.8	8.2
Net financial debt		3,956.1	2,617.4		-33.8
Net financial debt in % of equity (gearing)		71.7%	43.8%
Financial key performance indicators (KPIs)
EBITDA margin		6.6%	15.5%
EBIT margin		-2.0%	9.7%
Cash flows from operating activities		-33.6	272.1
Share information
Share price, end of period (euros)		19.15	34.34	79.3
Market capitalization, end of period		3,417.8	6,130.4	79.4
Number of outstanding shares, end of period		178,520,566	178,520,616	0.0
EPS - earnings per share (euros)		-0.40	1.42
Personnel
Employees (full-time equivalent), end of period	47,894	48,880	2.1
1 Before deduction of non-controlling interests.

INTERIM REPORT FIRST QUARTER OF 2021/22

This report is a translation of the original report in German, which is solely valid.

ECONOMIC ENVIRONMENT AND COURSE OF BUSINESS

Economic sentiment was positive throughout the first quarter of the business year 2021/22. COVID-19 infection rates have declined not least thanks to the progress in vaccinations. This has allowed key economic regions to take yet more steps toward a reopening, in turn stimulating both consumption and employment especially in the service sector.

EUROPE

Numerous member states of the European Union have loosened their COVID-19 restrictions. In particular, both consumer spending and the service industry have benefited from these measures, and the dynamic development in industrial sec­ tors has continued apace. The shortages of pre-­ materials in the supply chains prevented stronger growth rates in certain industrial segments such as the automotive industry. During the reporting period, the latter was confronted especially with a lack of semiconductors and thus was unable to benefit fully from the momentum in production. Given these parameters, the voestalpine Group continued along the positive upward trajectory that had already begun in the previous business year. With the exception of the aerospace indus- try, which has merely stabilized, almost all market and product segments have seen good growth.

NORTH AMERICA

In North America, the strong upturn at the end of the previous business year continued unabated

in the first quarter of the business year 2021/22. The advantageous trend in the labor market has fueled strong consumer spending. The previously­ announced, historic economic stimulus programs (some of which have already been enacted) are having an additional positive impact on economic­ sentiment.

The voestalpine Group succeeded in benefiting from the positive market momentum in North America. At the same time, however, those of voestalpine's European production facilities that serve in particular the North American oil and natural gas markets are still feeling the adverse effects of the protectionist Section 232 tariffs, which remain in place.

SOUTH AMERICA/BRAZIL

Brazil, the most important economic region for voestalpine on the South American continent, maintained its economic momentum overall. The first quarter of the business year 2021/22 saw a rebound in industrial activity following yet another massive wave of COVID-19 infections at the end of the previous business year that forced a range of industries to curtail production activity­. The most recent wave of infections had a relatively moderate effect on the voestalpine Group's Brazilian facilities which, as a result, were in a position to return to the previous quarter's positive dynamic.

ASIA/CHINA

China had largely overcome the negative consequences of the COVID-19 pandemic as early as in calendar year 2020. New COVID-19 infections

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did not arise until the end of the previous business year and the start of the company's current business year. While the authorities reacted by imposing locally limited, yet very strict lockdown mea- sures, just as during the initial outbreak, this did not have any palpable negative effects on the country's economic growth. On the whole, China's central institutions are working to prevent the economy from overheating in the wake of the previous year's massive stimulus packages. Hence particular growth parameters are relatively mod- erate. In sum, the country's economic trajectory had a highly positive effect on the voestalpine Group's Chinese facilities in the first quarter of the business year 2021/22 also.

DEVELOPMENT OF

THE KEY FIGURES OF THE voestalpine GROUP

The key performance indicators (KPIs) of the voestalpine­ Group for the first quarter of the business year 2021/22 clearly indicate growth, given the meltdown in both revenue and earnings for the same period of the previous business year owing to the COVID-19 pandemic. Delivery volumes rose significantly in all four divisions thanks to the economic rebound in key customer seg- ments. Higher prices in key product categories provided additional impetus to these develop- ments. Based on these parameters, division revenue in Q1 2021/22 climbed by 45.6% year over year to EUR 3,490.0 million (Q1 2020/21: EUR 2,397.3 million). The revenue increases for the Steel Division and the Metal Forming Divi- sion-both of which were affected the most in the previous business year by the meltdown in demand from the automotive industry-were particularly pronounced.

The voestalpine Group also posted significant earnings growth for the current business year's first quarter. In addition to the improved economic­ environment, this positive outcome is also rooted in the Group's strong focus on programs aimed at raising efficiency and lowering costs. As a result,

EBITDA soared in Q1 2021/22 by 242.0% to EUR 539.6 million with a margin of 15.5% (Q1 2020/21: EUR 157.8 million, margin of 6.6%). This is primarily due to the substantial increase in capacity utilization rates at the Group's production plants as well as the marked increase in delivery volumes. While EBIT was negative (EUR -48.7 million, margin of -2.0%) in the same quarter of the previous business year, EBIT for the reporting period soared to EUR 339.6 million with a margin of 9.7%. Hence voestalpine posted a level of earnings for Q1 2021/22 that it last achieved in Q4 2017/18.

The reduction in liabilities in the previous business year is reflected as well in the development of net interest income, which fell in Q1 2021/22 to EUR -20.8 million (Q1 2020/21: EUR -25.7 million). The profit before tax thus shot up in the reporting period to EUR 318.8 million (previous year: EUR -74.4 million). Tax expenses of EUR -59.6 million (previous year: EUR 4.7 million) equate to a tax rate of 18.7% and result in a profit after tax of EUR 259.2 million (previous year: EUR -69.7 mil- lion).

Net financial debt fell as of June 30, 2021, to EUR 2,617.4 million (June 30, 2020: EUR 3,956.1 million; March 31, 2021 (annual reporting date): EUR 2,742.8 million). The Group succeeded in strengthening its equity base, both year over year and relative to the most recent annual reporting date. Equity as of June 30, 2021, rose to EUR 5,970.8 million (June 30, 2020: EUR 5,517.1 mil- lion; March 31, 2021 (annual reporting date): EUR 5,649.9 million). Accordingly, the gearing ratio (net financial debt as a percentage of ­equity) fell as of June 30, 2021, to 43.8% (June 30, 2020: 71.7%; March 31, 2021 (annual reporting date): 48.5%).

The number of employees (FTE, full-time equiva- lents) in the voestalpine Group rose by 2.1% as of June 30, 2021, to 48,880 (June 30, 2020: 47,894). This represents a minor increase of 0.5% over the figure as of the March 31, 2021, annual reporting date (48,654).

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COMPARISON OF THE QUARTERLY FIGURES OF THE voestalpine GROUP

In millions of euros		Q 1 2020/21	Q 2 2020/21		Q 3 2020/21	Q 4 2020/21	Q 1 2021/22
		04/01-06/30/202007/01-09/30/202010/01-12/31/202001/01-03/31/202104/01-06/30/2021
Revenue	2,397.3		2,712.8	2,861.0	3,295.5	3,490.0
EBITDA		157.8		237.2		287.9	451.6	539.6
EBITDA margin		6.6%		8.7%		10.1%	13.7%	15.5%
EBIT		-48.7		-166.3		81.3	248.9	339.6
EBIT margin		-2.0%		-6.1%		2.8%	7.6%	9.7%
Profit before tax		-74.4		-193.1		57.0	221.3	318.8
Profit after tax1		-69.7	-206.1	116.5	191.0	259.2
Employees
(full-time equivalent),
end of period		47,894		47,917		47,871	48,654	48,880

1 Before deduction of non-controlling interests.

Net financial debt can be broken down as follows:

NET FINANCIAL DEBT

In millions of euros	06/30/2020		06/30/2021
Financial liabilities, non-current		3,959.3		2,723.6
Financial liabilities, current		740.0		1,101.7
Cash and cash equivalents		-661.5		-941.7
Other financial assets		-57.5		-245.6
Loans and other receivables from financing		-24.2	-20.6
Net financial debt		3,956.1		2,617.4

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