EQS-Adhoc: voestalpine AG: voestalpine plans to sell Buderus Edelstahl and reorganizes Automotive Components business in Germany resulting in one-off write-downs of around EUR 410 million

EQS-Ad-hoc: voestalpine AG / Key word(s): Profit Warning
   voestalpine AG: voestalpine plans to sell Buderus Edelstahl and
   reorganizes Automotive Components business in Germany resulting in one-off
   write-downs of around EUR 410 million

   14-March-2024 / 15:01 CET/CEST
   Disclosure of an inside information acc. to Article 17 MAR of the
   Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS
   Group AG.
   The issuer is solely responsible for the content of this announcement.

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   voestalpine plans to sell Buderus Edelstahl and reorganizes Automotive
   Components business in Germany resulting in one-off write-downs of around
   EUR 410 million

   The Management Board of voestalpine AG is reacting to the changed economic
   conditions for industrial manufacturing companies and is reorganizing
   production sites in Germany. This step is a consistent implementation of
   voestalpine Group's strategy of focusing the materials business on the
   highest quality spectrum and expanding the downstream business in
   promising global segments.

   Buderus Edelstahl in Germany (High Performance Metals Division)

   Following the restructuring steps already taken in the past, the
   Management Board of voestalpine AG has decided to transfer the strategic
   process initiated to reposition Buderus Edelstahl into a sales process.
   According to this, the division is concentrating its product portfolio on
   the high-tech segment of special materials and reducing the production
   share of tool steel and engineering steel in the standard grade area.

   This sale and impairment losses in the High Performance Metals Division
   will result in negative one-off effects on earnings (EBIT) of about EUR
   340 million. Around EUR 90 million of this will also affect EBITDA.

   The resulting optimization of the product portfolio strengthens the High
   Performance Metals division's competitive position.

   Business segment Automotive Components in Germany (Metal Forming Division)

   In Automotive Components, the management is maintaining its
   internationalization strategy, but is making targeted adjustments in
   response to the structural underutilization of capacity in the automotive
   supply industry in Germany. The management has already responded by
   consolidating the production network, including the sale of the production
   site in Nagold, Germany.

   Against this backdrop, the Metal Forming Division is reorganizing its
   Automotive Components business in Germany and has adjusted its planning
   assumptions accordingly. This resulted in impairment losses of around EUR
   70 million.

   Earnings outlook BY 2023/24

   The above-mentioned measures result in negative one-off effects on the
   voestalpine Group's EBITDA of about EUR 90 million and on EBIT of about
   EUR 410 million. This leads to an adjustment of the EBITDA expectation for
   the Business Year 2023/24 from around EUR 1.7 billion to around EUR 1.6
   billion. The measures and the non-recurring burden on earnings strengthen
   the voestalpine Group's future earnings potential in a markedly changing
   economic and regulatory restrictive environment.

   The structural optimization and adjustment of the product portfolio is a
   meaningful step in implementing the strategy of focusing the materials
   business (steel production) on the highest quality segment and growing
   globally in the downstream business. In the current Business Year 2023/24
   significant progress was made for example in the area of automated
   warehouse technology via the establishment of a new production site in
   North America and an acquisition in Europe. The promising railway
   infrastructure segment is also continuously expanding through strategic
   investments.

   End of Inside Information

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   14-March-2024 CET/CEST News transmitted 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:      [email protected]
   Internet:    www.voestalpine.com
   ISIN:        AT0000937503
   WKN:         897200
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1857837


    
   End of Announcement EQS News Service


   1857837  14-March-2024 CET/CEST

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