HIGH PERFORMANCE METALS DIVISION Business year 2016/17
voestalpine High Performance Metals GmbH www.voestalpine.com/highperformancemetals voestalpine AG
Key figures for 2016/17 Sales by regions Sales by industries
Business year 2016/17 Business year 2016/17 Employees 49,703 9% Asia 70% European Union 5% White goods/ 3% Aerospace (of which Austria 7%) Consumer goods EUR 11,294.5 Revenue 7% Rest of world 9% Mechanical 12% Railway systems million engineering
EBITDA EUR 1,540.7 million 3% South America 14% 34% Other 11% NAFTA Automotive EBIT EUR 823.3 million 10% Building/ Construction EBIT margin 7.3 % ENERGY 13% MOBILITY: 49% voestalpine High Performance Metals GmbH 2 | 8/7/2017 | High Performance Metals Division voestalpine AG
Metal Forming Steel Revenue (in millions of euros) 2,426.1 Revenue (in millions of euros) 3,912.4 EBIT (in millions of euros) 210.7 21% EBIT (in millions of euros) 263.2 EBIT margin 8.7% EBIT margin 6.7% 33% Employees (full-time equivalent) 11,073 Employees (full-time equivalent) 10,898
Metal Engineering 23% High Performance Metals
Revenue (in millions of euros) 2,684.6 Revenue (in millions of euros) 2,697.9 EBIT (in millions of euros) 200.8 23% EBIT (in millions of euros) 252.7 EBIT margin 7.5% EBIT margin 9.4% Employees (full-time equivalent) 13,157 Employees (full-time equivalent) 13,733 voestalpine High Performance Metals GmbH 3 | 8/7/2017 | High Performance Metals Division 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 Metal Forming Steel 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 Engineering High Performance Metals voestalpine High Performance Metals GmbH 4 | 8/7/2017 | High Performance Metals Division voestalpine AG
Global leading supplier Global quality leader Metal Forming of highly refined sections, tubes and precision strip Steel in premium steel strip and cast products, and the steel products as well as for ready-to-install system global leading supplier of heavy plate components made of pressed, stamped and rollformed parts. Sectors Automotive, construction and energy industries, Sectors warehousing technology, mechanical engineering Automotive industry and suppliers, energy, and steel construction industries household appliances, construction industry
Global market leader Global market leader Metal in turnout technology and a leading partner for High for tool steel and a leading partner for high-speed Engineering rails, processed wire, seamless tubes and welding Performance steel, valve steel, special forged parts and consumables Metals powdermetallurgical materials
Sectors Sectors Railway systems, energy, automotive industry, Toolmaking, automotive industry, oil & gas mechanical engineering and steel construction exploration, aerospace industries voestalpine High Performance Metals GmbH 5 | 8/7/2017 | High Performance Metals Division HIGH PERFORMANCE METALS DIVISION AT A GLANCE
Global leading special Global market leader 8 production sites in Supplying customers steel company with a in tool steel and global Europe, North and worldwide in the focus on leading supplier in high- South America, and a sectors: technologically speed steel, valve steel sales and service Automotive and other special steels demanding product network with 160 Power generation as well as segments warehouse and Oil & gas exploration powdermetallurgical service sites in 45 materials Mechanical countries on all five engineering “One-stop shop” continents Consumer goods With additional services Aircraft manufacture including heat and other selected treatment, coating and industry segments additive manufacturing.
voestalpine High Performance Metals GmbH 6 | 8/7/2017 | High Performance Metals Division HIGH PERFORMANCE METALS DIVISION AT A GLANCE
Robert Bauer Franz Rotter Markus Potzinger Reinhard Nöbauer
Production Chairman of the Management Board Finance & Controlling Value Added Services voestalpine High Performance Metals GmbH Business Unit HPM Business Unit (High-Performance Metals) Value Added Services Production
Region Germany Böhler Edelstahl GmbH & Co KG Böhler Schmiedetechnik GmbH Region Pacific (Austria – Kapfenberg) (Austria – Kapfenberg) (Böhler-Uddeholm Deutschland, EschmannStahl, (voestalpine High Performance Metals Pacific, Eschmann Textures, eifeler, ASSAB Group) voestalpine Additive Manufacturing Center) ) Böhler Bleche GmbH Böhler Profil GmbH (Austria – Mürzzuschlag) (Austria – Bruckbach) Region Western Europe Region North America (Böhler-Uddeholm, voestalpine Specialty Metals ) Buderus Edelstahl GmbH (Böhler-Uddeholm, Deville) Uddeholms AB (Sweden – Hagfors) (Germany – Wetzlar)
Villares Metals S.A. ENPAR Sonderwerkstoffe GmbH Region International (Brazil– Sumaré) (Germany - Gummersbach) (Böhler-Uddeholm) voestalpine High Performance Metals GmbH 7 | 8/7/2017 | High Performance Metals Division HIGH PERFORMANCE METALS DIVISION OVERVIEW OF BUSINESS UNITS
Business unit HPM Production Value Added Services Division
Global No.1 in toolsteel with a Globally leading high globally leading supplier of top performing unique global distribution network performance metals supplier materials & components for selective Positioning and related local services (heat with a unique service network technological demanding applications and treatment, machining, coating) for securing „customer intimacy“ industries the tooling industry
Revenue (m€) 1,765.4 m€ 1.671,4 m€ 2,689 m€ – consolidated
EBIT margin 7.7 % 8.2 % 9.4 %
voestalpine High Performance Metals GmbH 8 | 8/7/2017 | High Performance Metals Division PRESENT IN ALL THE WOLRD‘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
voestalpine High Performance Metals GmbH 9 | 8/7/2017 | High Performance Metals Division HIGH PERFORMANCE METALS DIVISION IN KEY FIGURES
Financial and operating figures
2015/16 – 2016/17 Revenue EBITDA EBIT EBIT margin Employees in millions of euros in millions of euros in millions of euros in percent Full-time equivalent
2,651 2,698 395 253 364 227 13,470 13,733
9.4% 8.6%
2015/16 2016/17 2015/16 2016/17 2015/16 2016/17 2015/16 2016/17 2015/16 2016/17 voestalpine High Performance Metals GmbH 10 | 8/7/2017 | High Performance Metals Division HIGH PERFORMANCE METALS DIVISION IN KEY FIGURES
Revenue by region Revenue by industry
8% Rest of world 53% European 13% White goods/ 12% Aerospace Union (of which Consumer goods 7% South America Austria 4%)
18% Asia 19% Mechanical 29% Automotive engineering & steel construction
14% NAFTA MOBILITY: 41% 12% Others 11% Energy 4% Building construction
voestalpine High Performance Metals GmbH 11 | 8/7/2017 | High Performance Metals Division A STEP AHEAD WITH STATE-OF-THE-ART PRODUCTION FACILITIES …
Electric arc furnaces and Remelting units (ESR/VAR) and Rolling mills with extremely tight Screw press for the production secondary metallurgical plant furnaces for vacuum induction tolerances of aerospace components for special steels used in melting (VIM) to optimize demanding applications metallurgical properties
State-of-the-art forging Continuous casting plant for Powder metallurgy plant in Atomizing plants for the machines (open die, closed die valve steel and welding wire Austria production of metal powders and rotary forging) for additive manufacturing voestalpine High Performance Metals GmbH 12 | 8/7/2017 | High Performance Metals Division
…FOR THE PRODUCTION OF HIGH-PERFORMANCE MATERIALS
Special engineering Tool steel High-speed steel Valve steel steel
Powdermetallurgical Special steels Nickel-based alloys Titanium alloys materials
in all product forms voestalpine High Performance Metals GmbH 13 | 8/7/2017 | High Performance Metals Division …AND A GLOBAL SALES NETWORK WITH A FOCUSED SERVICE PORTFOLIO
Warehousing Heat treatment Saws
Machining Coating Additive Manufacturing voestalpine High Performance Metals GmbH 14 | 8/7/2017 | High Performance Metals Division OUR VALUE ADDED SERVICES NETWORK IN FIGURES
~160 ~40% 100% warehousing and service sites in all Customer service achieved through local of all employees working in sales and service industrialized regions of the world technical advice and services
~1,000 high-performance saws, 24 hour Global number 1 For customized 350 precision milling machines, dimensions & delivery for standard products for service centers for tool making material properties 100 and heat treatment furnaces “Ordered today – delivered tomorrow”
No competitor in the special steel sector has a similarly dense sales network with warehousing, machining, heat treatment, coating facilities and additive manufacturing (3D printing with metal powder)
voestalpine High Performance Metals GmbH 15 | 8/7/2017 | High Performance Metals Division 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 voestalpine High Performance Metals GmbH 16 | 8/7/2017 | High Performance Metals Division RELIABLE PARTNER TO THE OIL & GAS INDUSTRY
» Pre-materials & tailor-made components in special steel and Steel solutions for oil & gas 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 Oilfield components » 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 Offshore equipment challenges
voestalpine High Performance Metals GmbH 17 | 8/7/2017 | High Performance Metals Division INNOVATION LEADER THROUGH ADDITIVE MANUFACTURING
» The additive manufacturing process uses 3D data to manufacture Powder development components by adding layer upon layer of metal powder. Advantages of this technology include: » Ability to produce complex geometries (weight reduction, lattice structures) » Customized production, low warehousing costs, small batches Laser melting process » Short innovation/product development cycles
» Material expertise and extensive experience in powder metallurgy within the division through Böhler and Uddeholm
Complex structures » Research competence center, voestalpine Additive Manufacturing Center GmbH, in Düsseldorf in operation since April 2016. Expansion in Singapore, Taiwan, Toronto » Combines the core competences of powder production with design optimization and component production voestalpine High Performance Metals GmbH 18 | 8/7/2017 | High Performance Metals Division OUR STRONG BRANDS MAKE US DISTINCTIVE
» voestalpine High Performance Metals 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
voestalpine High Performance Metals GmbH 19 | 8/7/2017 | High Performance Metals Division OUR SPECIFIC CUSTOMER STRUCTURE
Focus
Automotive industry Power generation Oil & gas exploration
Mechanical engineering Aircraft construction Highly technical industry segments
Tool making is largest Largest customer less than 10 largest customers less than customer group (primarily SMEs) no dependence on a represents of total revenue represent of total revenue few major customers No volume business, average dispatch weight around 70 kg The High Performance Metals Division focuses on medium-sized buyers as well as major industrial customers. voestalpine High Performance Metals GmbH 20 | 8/7/2017 | High Performance Metals Division TAILOR-MADE SOLUTIONS HELP US STAND OUT
A step ahead of the best Fully integrated special steel manufacturer with production, sales and services from a single source CUSTOMER INTIMACY Customer Responsive Strongly diversified customer base, no dependence on a few major customers
Dense sales and service network secures global presence, clear focus on our customers as highest priority (customer intimacy)
Global market leader in selected, technologically highly demanding product segments – not a commodity steel producer OPERATIONAL EXCELLENCE PRODUCT LEADERSHIP Operational Competence Product Differentiation Strong brands with a long tradition secure strong brand loyalty Level with the best voestalpine High Performance Metals GmbH 21 | 8/7/2017 | High Performance Metals Division MEGATRENDS SECURE OUR LONG-TERM GROWTH Current Mid-term Long-term Megatrend/ industry sector contribution to total trend trend sales
Mobility/Automotive ~29% Tool and component construction
Mobility/Aerospace ~12% Structural parts, engine disks
Power generation ~11% Thermal power plants, wind energy, oil & gas exploration
Consumer goods ~13% Electronics, household appliances, packaging
Mechanical engineering ~19% Cutting tools, heavy gear boxes, tooling The High Performance Metals Division is well positioned in tomorrow’s growth markets.
voestalpine High Performance Metals GmbH 22 | 8/7/2017 | High Performance Metals Division R&D GUARANTEES OUR POWER TO INNOVATE R&D in figures
Expenditure in millions of euros
21,6 23 24 19,7 20,9 19,8 20,2 21 21 21 14,3
06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Number of employees ~109 Number of patents & registered patents ~1.039
» Directed development of products and processes as basis for innovation and competitiveness » New steel grades & alloys, process simulation for metal forming and process technology as well as metal powder and additive manufacturing » Fundamental research in close cooperation with universities, research institutes and Christian Doppler laboratories voestalpine High Performance Metals GmbH 23 | 8/7/2017 | High Performance Metals Division DEDICATE EMPLOYEES ENSURE CUSTOMER PROXIMITY
Employees by region » 13,733* employees in 45 countries around the world 1% Other 36% Europe 5% N America (excl. Austria) » Close collaboration within networks guarantees customer satisfaction 15% Asia » 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 14% S America 29% Austria * full-time equivalent voestalpine High Performance Metals GmbH 24 | 8/7/2017 | High Performance Metals Division OUR VALUES
We focus on the needs of our customers
We are empowered professionals
We keep our word
We are committed for the long term
We develop the talents of our employees voestalpine High Performance Metals GmbH 25 | 8/7/2017 | High Performance Metals Division 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” ! voestalpine High Performance Metals GmbH 26 | 8/7/2017 | High Performance Metals Division 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
voestalpine High Performance Metals GmbH 27 | 8/7/2017 | High Performance Metals Division OUR ENVIRONMENT IN FOCUS » Active environmental protection is part of our company philosophy Maintaining 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
voestalpine High Performance Metals GmbH 28 | 8/7/2017 | High Performance Metals Division Thank you
voestalpine High Performance Metals GmbH www.voestalpine.com/highperformancemetals HISTORICAL MILESTONES
Acquisition of ATT (Shanghai) and the Sermetal Group (Spain/Portugal) 2016 Start of the voestalpine Additive Manufacturing Center in Düsseldorf voestalpine Edelstahl GmbH acquires Eifeler Group and expands the service portfolio to add 2013 coating for tool making
2011 Holding company Böhler-Uddeholm AG renamed voestalpine Edelstahl GmbH
2008 Full integration into the group as the Special Steel Division
2007 Austrian voestalpine AG takes over Böhler-Uddeholm
2003 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 1995 year 1991 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) voestalpine High Performance Metals GmbH 30 | 8/7/2017 | High Performance Metals Division