EQS-News: voestalpine AG: voestalpine once again achieves record figures in the business year 2022/23

EQS-News: voestalpine AG / Key word(s): Annual Results
   voestalpine AG: voestalpine once again achieves record figures in the
   business year 2022/23

   07.06.2023 / 07:30 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   voestalpine once again achieves record figures in the business year
   2022/23

     • The steel and technology Group recorded the highest level of revenue
       and best operating result in the company’s history in the business
       year 2022/23, surpassing even its record year of 2021/22
     • Revenue rose by 22.1% over the previous year, from EUR 14.9 billion to
       EUR 18.2 billion
     • Operating result (EBITDA) grew to EUR 2.5 billion (previous year:
       EUR 2.3 billion); EBITDA margin: 14%
     • Profit from operations (EBIT) increased by 11.7% year-on-year, to
       EUR 1.6 billion (previous year: EUR 1.5 billion); EBIT margin: 8.9%
     • Profit before tax rose by 7.8% to EUR 1.5 billion; profit after tax
       fell by 11.4% to EUR 1.2 billion due to non-recurring effects in the
       previous year
     • Net financial debt once again significantly reduced (-27.5%), to
       EUR 1.7 billion, its lowest level since 2006/2007
     • Equity climbs to new record level of EUR 7.8 billion; gearing ratio
       reduced further to 21.4% as of March 31, 2023 (previous year: 32.4%)
     • Number of employees (full-time equivalent) rose by 1.9%, from 50,200
       to 51,200
     • Dividend of EUR 1.50 per share proposed to the Annual General Meeting
       (previous year: EUR 1.20)
     • Outlook 2023/24: EBITDA between EUR 1.7 billion and EUR 1.9 billion

   In the business year 2022/23 (from April 1, 2022 to March 31, 2023), the
   voestalpine Group once more demonstrated the robust nature of its
   corporate strategy, which is based on its global presence and industrial
   diversification. Despite operating in an exceptionally volatile
   environment—including the war in Ukraine, high inflation and increasing
   interest rates, supply chain disruptions, and strong rises in energy
   prices—voestalpine posted the best results in the company’s history.
   “Demand for our high-quality products remained relatively stable in this
   extremely volatile environment. We were able to again achieve record
   revenue and earnings, and have the lowest level of debt in 16 years. That
   means we are well prepared for the challenges and investments which lie
   ahead of us,” says Herbert Eibensteiner, CEO of voestalpine AG.

   The energy sector (oil and natural gas, in particular) did very well, and
   demand for voestalpine’s solar industry products continued to grow also.
   The voestalpine Railway Systems business segment developed along a very
   satisfactory trajectory yet again too. As the leading provider worldwide
   for complete rail technology systems, it was contracted to design and
   deliver rails and turnout systems for Great Britain’s new high-speed
   network (“High Speed 2”). Add to that orders for international rail
   infrastructure projects that will run for several years. During the
   business year 2022/23, the voestalpine Group also succeeded in securing
   several major orders for the coming years from renowned international
   aerospace manufacturers. Demand in this segment, which had already started
   to expand in the previous business year, continued rising in the reporting
   period. Growing demand for short and medium-haul planes (i.e.,
   single-aisle aircraft) is key to this development. By contrast, the
   consumer goods and white goods industries, as well as the construction
   industry, had to contend with declining demand throughout the business
   year ended. As before, the European automotive industry faced ongoing
   supply chain bottlenecks throughout the reporting period, resulting in
   volatile purchasing patterns in the automotive supplies industry. The
   economic environment outside of Europe benefited voestalpine’s facilities.
   The storage system business segment profited in the business year 2022/23
   as well from the e-commerce trend that continues unabated.

   Results at record level
   voestalpine posted record revenue and results in many earnings categories
   in the business year ended. Revenue rose by a further 22.1%, to
   EUR 18.2 billion, following the leap in revenue in the previous year
   (EUR 14.9 billion). The operating result (EBITDA) grew by 11.1% to
   EUR 2.5 billion (business year 2021/22: EUR 2.3 billion). Profit from
   operations (EBIT) increased by 11.7% to EUR 1.6 billion (business year
   2021/22: EUR 1.5 billion). The earnings categories were subject to both
   positive and negative influences: two divisions reported non-recurring
   effects (impairment losses) totaling EUR 205 million in the business year
   2022/23, while positive effects to the tune of EUR 133 million were
   achieved from selling a plot of land.

   Profit before tax was EUR 1.5 billion (previous year: EUR 1.4 billion),
   profit after tax fell by 11.4% to EUR 1.2 billion. The comparative figure
   of EUR 1.3 billion for the previous year included a positive valuation of
   EUR 257 million resulting from the sale of the HBI plant in Texas (USA).

   It was possible to further reduce debt during the business year 2022/23.
   At EUR 1.7 billion (previous year: EUR 2.3 billion), net financial debt
   reached the lowest level since the business year 2006/2007, more than
   halving within three years. The gearing ratio (net financial debt as a
   percentage of equity) dropped significantly year-on-year, from 32.4% to
   21.4%. The voestalpine Group’s equity achieved a record high level of
   EUR 7.8 billion.

   As of March 31, 2023, the number of employees in the voestalpine Group
   worldwide amounted to 51,200 (full-time equivalent) which is 1.9% more
   than in the previous year (50,225).

   Proposed dividend: EUR 1.50
   Subject to approval by the Annual General Meeting of voestalpine AG on
   July 5, 2023, a dividend of EUR 1.50 per share will be paid to the
   company’s shareholders. Relative to the voestalpine share’s average price
   of EUR 25.09 in the business year 2022/23, the dividend yield for the
   business year is 6%, a substantial increase over the previous business
   year’s 3.6%.

   Gradual commissioning of the world’s most advanced special steel plant
   Four years after the official groundbreaking ceremony, construction of the
   special steel plant at the voestalpine site in Kapfenberg was successfully
   completed in the business year 2022/23. Test operations in the form of hot
   commissioning started at the end of the business year 2022/23. The Group’s
   largest investment in recent years will gradually become fully operational
   during the business year 2023/24. Once fully operational, the new plant
   will produce around 205,000 tons of special steel for the international
   aerospace, oil and natural gas, automotive and toolmaking industries
   annually, and set new standards in digitalization and sustainability. One
   of the measures taken to ensure production is ramped-up as quickly as
   possible following the delays already reported was for the Group
   subsidiary voestalpine BÖHLER Edelstahl to significantly increase its own
   contribution to the project. As already reported, this will result in a
   potential cost overrun of up to 30% over the initial planned investment of
   EUR 350 million.

   Total investments made by the voestalpine Group in the business year
   2022/23 amounted to EUR 922 million, which is 30% more than in the
   previous year (EUR 708 million). The focus lay in technical optimizations
   to existing plant and equipment, and replacement investments.

   Important milestone for greentec steel
   Approval by the Supervisory Board of voestalpine AG given in March 2023
   for the EUR 1.5 billion investment in greentec steel marked an important
   milestone for the Group’s future. According to the plan, decisions on
   plant and suppliers will be made during 2023, with construction slated to
   start in 2024, and commissioning of the two electric arc furnaces in 2027.
   As a result, the Group will be able to reduce its CO[2] emissions by up to
   30% from 2027, which represents almost 5% of Austria’s entire CO[2
   ]emissions. An important prerequisite for this next major step is to
   resolve funding issues. From 2030, voestalpine plans to replace another
   blast furnace at each of the sites in Linz and Donawitz. The Group is
   already conducting research into several new processes and investing in
   pilot projects to open up new pathways in steelmaking and achieve the goal
   of carbon neutrality by 2050.

   Outlook for the business year 2023/24
   After weathering an interim, very subdued phase following the Northern
   summer, the business year 2022/23 ended on a positive note that continues
   to defy forecasts of an economic decline. The fact that the COVID-19
   pandemic has largely been overcome, the significant easing of
   international supply chain pressures, and, not least, the reduction in
   Europe’s dependence on Russian sources of energy in record time contribute
   to the still prevailing positive economic sentiment.

   One cannot ignore the fact, however, that the war in Ukraine rages on and
   that overall geopolitical tensions worldwide are on the rise. Inflation in
   both Europe and North America has also turned out to be more persistent
   than expected. This means that the central banks on either side of the
   Atlantic are not expected to reverse their interest rate hiking cycle even
   though its fallout is already negatively affecting the banking sector.

   Given that the central banks have accorded highest priority to the fight
   against inflation and are working to achieve it by slowing the momentum in
   both prices and demand, this policy is generally expected to put a damper
   on the economy after some time.

   Yet expectations as to the development of different economic regions and
   individual market segments have differed widely so far.

   The coming months will show whether China’s abandonment of its strict
   zero-COVID policy and subsequent reopening will substantially boost
   economic growth in the business year 2023/24 compared with the reporting
   period. As interest rates continue to rise in North America, just as in
   Europe, we expect demand for voestalpine’s products to slow down during
   this phase in these two economic regions. Despite the sharp drop in
   inflation, demand in Brazil is expected to slow slightly due to
   uncertainties arising from the change in government as well as declining
   exports in a globally cooling economy.

   As far as individual market segments are concerned, we expect the
   consumer goods and white goods industries to continue along a fairly
   subdued trajectory. The construction industry is expected to continue
   weakening over the course of the business year 2023/24. The automotive
   industry, by contrast, should follow a largely stable trajectory at the
   current level thanks to still existing orders on hand and the improvement
   in international supply chains. While demand from the conventional energy
   sector (oil and natural gas) is expected to remain good in the business
   year 2023/24, it will no longer reach the record highs seen during the
   business year ended.

   The upward trends in both the renewable energy sector and the aerospace
   industry should continue unabated in the current business year.

   Good demand from the traditionally stable railway infrastructure market
   segment is expected for the business year 2023/24 and beyond. For one,
   there is a large need for investment in some European countries in this
   area; for another, the worldwide trend toward climate action will continue
   to buttress this market segment in the long term.

   Assuming that the global economy will not be hit by massive economic
   distortions on account of the central banks’ interest rate polices and
   that there will be no further escalation scenarios in the Ukraine war or
   additional geopolitical tensions, the Management Board of voestalpine AG
   expects the Group to generate EBITDA of between EUR 1.7 billion and EUR
   1.9 billion in the business year 2023/24.

   Key figures of voestalpine Group

                                      BY 2021/22            BY 2022/23 Change
                           04/01/2021-03/31/2022 04/01/2022-03/31/2023   in %
   Revenue                              14,923.2              18,225.1  +22.1
   EBITDA                                2,291.3               2,544.6  +11.1
   EBITDA margin in %                      15.4%                 14.0%       
   EBIT                                  1,454.3               1,624.2  +11.7
   EBIT margin in %                         9.7%                  8.9%       
   Profit before tax                     1,382.5               1,490.8   +7.8
   Profit after tax from                 1,072.4               1,085.3   +1.2
   continuing operations
   Profit after tax from                   257.9                  93.4  -63.8
   discontinued operations
   Profit after tax *                    1.330.3               1,178.7  -11.4
   EPS (euros)                              7.28                  6.01  -17.4
   Gearing-ratio in %                      32.4%                 21.4%       
   (03/31)
   In millions of euros

   * Before deduction of non-controlling interests.

   voestalpine AG’s Business Year 2022/23 as of March 31, 2023, may be viewed
   on the Company’s website, [1]www.voestalpine.com, under the “Investors”
   tab.

   Please direct any inquieris to:
   voestalpine AG
   Peter Felsbach
   Head of Group Communications I Group Spokesperson
   voestalpine-Strasse 1
   4020 Linz, Austria
   T. +43/50304/15-2090
   peter.felsbach@voestalpine.com

   Peter Fleischer
   Head of Investor Relations
   voestalpine-Strasse 1
   4020 Linz, Austria
   T. +43/50304/15-9949
   peter.fleischer@voestalpine.com

   [2]www.voestalpine.com

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   07.06.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

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   Language:    English
   Company:     voestalpine AG
                voestalpine-Straße 1
                4020 Linz
                Austria
   Phone:       +43 50304/15-9949
   Fax:         +43 50304/55-5581
   E-mail:      IR@voestalpine.com
   Internet:    www.voestalpine.com
   ISIN:        AT0000937503
   WKN:         897200
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1649617


    
   End of News EQS News Service


   1649617  07.06.2023 CET/CEST

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