Facts & figures of the voestalpine Edelstahl GmbH

1. Company Presentation
voestalpine Edelstahl GmbH, 2012/13
voestalpine Edelstahl GmbH
www.voestalpine.com
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2. voestalpine Edelstahl at a glance
 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
 Seven production sites in Europe, North- and Latin America
as well as roughly 60 distribution sites on all continents
 More than 100,000 customers throughout the world;
key customers include the automotive, power generation, oil and
gas exploration, machinery construction, consumer goods, aircraft
and other selected industry sectors
voestalpine Edelstahl GmbH
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3. Clearly defined core business
in two business units
High Performance Metals Special Forgings
 Tool steel Closed-die forged components made of:
 High-speed steel  Titanium alloys
 Valve steel  Nickel-based alloys
 Special engineering steel  High-, medium- and
 Powder metallurgical steels low-alloy steels
 Special steel grades
 Nickel-based alloys
(in all product categories)
Global sales and distribution network including additional services
on site (heat treatment, machining etc.)
voestalpine Edelstahl GmbH
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4. Global presence in all industrialized zones
 Production sites in Austria (Kapfenberg, Mürzzuschlag, Bruckbach), Sweden
(Hagfors), Germany (Wetzlar), USA (South Boston/Virginia), Brazil (Sumaré)
 Wholly owned sales subsidiaries in 50 countries at roughly 60 sites
voestalpine Edelstahl GmbH
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5. Enhanced customer orientation and customization
One step ahead of the best  A strict orientation to customer
CUSTOMER INTIMACY requirements (customer intimacy) is
Customer Responsive 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
OPERATIONAL EXCELLENCE PRODUCT LEADERSHIP for market leadership
Operational Competence Product Differentiation
On par with the best
voestalpine Edelstahl GmbH
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6. voestalpine Edelstahl in key figures
Financial figures 2011/12 in m€ Operating figures 2011/12
Net sales 2,945 Employees 11,524
EBITDA 430 Production and distribution sites ~70
EBIT 313 Customers ~100,000
Profit before tax 271 Sales volume (in t) ~800,000
Net sales, EBIT in m€ Employees
2,945 11,524
2,631 11,364
264 313
2010/2011 2011/2012 2010/2011 2011/2012
voestalpine Edelstahl GmbH
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7. voestalpine Edelstahl in key figures
Sales by region Sales by customer industry
Australia 2% Other Automotive
Africa 1% 13% 27%
Other Europe 5% Construction
4%
Asia
13% Aircraft
7%
Consumer
goods
12%
N/S America European Union Power generation Machinery
23% 56% 15% construction 22%
voestalpine Edelstahl GmbH
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8. Historic milestones
1991 Austrian 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)
1995 Initial 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
voestalpine Edelstahl GmbH
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9. 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
Fully integrated special steel producer providing state-of-the-art multi-line
rolling mills and the largest rotary forging press and screw press worldwide
voestalpine Edelstahl GmbH
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10. Unique sales network for special steels
 Approximately 60 distribution 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 precisely cut
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 and heat treatment
voestalpine Edelstahl GmbH
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11. Specific customer structure
Sales/Customer  Main focus on the automotive, power
generation, oil & gas exploration,
Sales per Number of customers machinery construction, consumer
customer
goods and aircraft industries
> 1,000,000 € 1%  Roughly 100,000 customers across
the globe in dedicated niches
> 500,000 € 3%
 Not dependent from single large
> 100,000 € 7% customers, the largest customer
> 25,000 € 12%
accounts for approximately 3% of total
sales
> 7,000 € 77%
 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
voestalpine Edelstahl GmbH
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12. Long-term growth triggerd by megatrends
Megatrend/ Current contribution Mid-term Long-term
Industry sector to total sales trend trend
Mobility/Auto
Tool and component building
~27%  
Mobility/Aircraft
Structural parts, aero engine discs
~7%  
Power generation
Thermal power plants, wind energy, ~15%  
oil & gas exploration
Consumer goods
Electronics, household appliances, packaging
~12%  
Machinery construction
Cutting 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
voestalpine Edelstahl GmbH
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13. 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
voestalpine Edelstahl GmbH
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14. R&D secures innovation lead
R&D in figures  Directed development of products
and processes forms the basis of
Planned expenditure innovation and competitiveness
for 2012/13 in m€ ~24  New steel grades and alloys
Number of researchers ~114 as well as process simulation for
Number of registered patents and metal forming and process technology
patent applications ~1,028 are the main focus in R&D
 Fundamental research is carried out in
R&D expenditure in m€ close cooperation with universities
24
and research centers
22
2011/2012 2012/2013e
voestalpine Edelstahl GmbH
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15. 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
voestalpine Edelstahl GmbH
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16. 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,
more than 100,000 customers across the globe,
not dependent from single large customers
 Comprehensive sales 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
voestalpine Edelstahl GmbH
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17. Group-wide certified quality management
 All production companies are certified according to
ISO 9001 quality management system
 Additional quality systems respond to specific quality
standards of individual customers or industries
(e.g. automotive, aircraft etc.)
 Quality Management Manual defines binding rules
for all Group companies in terms of responsibilities,
quality policies, resources and process management
 Each Group company (production and sales) is staffed
with a quality manager
voestalpine Edelstahl GmbH
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18. Continous improvement program (CIP)
 voestalpine Edelstahl runs a time-tested Continuous Improvement
Program (CIP) in all major Group companies
 Employees propose roughly 10,000 ideas for improvement
measures per year in a standardized process
 Each employee receives feedback to his/her suggestion;
the best ideas are awarded and implemented
 Proposals for improvements are submit in four categories:
“Quality enhancement and productivity increase”,
Safety at work and health”, “Environmental protection”
and “Cost reduction”
 Target: Cost savings of approximately 2% per year
voestalpine Edelstahl GmbH
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19. Close attention to environmental protection
 Certified environmental management systems according to ISO 14001
are implemented in all major Group companies
 The holding company coordinates strategic focal points
in environmental matters and sustainability;
observes national, European and global trends (e.g. REACH)
 The production companies continuously adjust plants
and machinery to technical standards and national legislation,
keep contact to local authorities and neighbors and implement measures
to protect the environment
 Environmental responsible managers of all production companies
operate in a networked system
 Group-wide program improves sustained energy efficiency
voestalpine Edelstahl GmbH
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20. Motivated employees make the difference
Workforce by region  Worldwide about 11,500 employees
in 50 countries on every continent
 Close collaboration within the
Other 3% Europe (exkl. Austria) workforce across the Group is the
38% guarantee for customer satisfaction
N-America 4%
 Group-wide employee survey
Asia 11%
provides valuations of job satisfaction
and allows directed measures in
S-America learning and training
16%
 Employees with expertise and
individual responsibility are
prerequisites to meet customer’s
needs and distinguish the Group
Austria
28% from its competition
voestalpine Edelstahl GmbH
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