voestalpine AG

www.voestalpine.com

voestalpine AG

1st Half 2014/15 Press Conference, November 5, 2014 Welcome!

voestalpine AG

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voestalpine Group

Business model (I)

High-tech steel as the basis – also processing of other

materials (titanium, aluminum, …)

Consistent "downstream strategy" technology and capital

goods group (two thirds of revenue)

Combination of top metallurgical know-how and leading

processing expertise

new technological solutions and innovative products

Global market, quality, and technology leadership in the core

business segments

voestalpine AG

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voestalpine Group

Business model (2)

Focus: markets with highest technology and quality

demands mobility and energy (62% of revenue)

Long-term R&D partnerships with customers and scientific

partners as the key to innovation

Industry benchmark in Europe for environmental standards,

resource efficiency and earnings

500 Group companies and sites - 50 countries - 5 continents

voestalpine AG

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voestalpine Group

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Results and Highlights 1st Half 2014/15

voestalpine AG

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voestalpine Group

1st Half 2014/15 - Highlights Revenue at EUR 5.6 billion only slightly below previous year (-1.5%)

EBITDA rose to EUR 757 million (+11.2%), EBIT to EUR 445 million

(+ 12.2%)

EBITDA positively influenced by non-recurring effects of EUR 67 million,

EBIT of EUR 45 million ( sale of Flamco/Plastics)

Profit before tax increased from EUR 312 million to EUR 392 million

(+ 25.5%) and for the period from EUR 238 million to EUR 324 million

(+ 35.9%)

Also after adjustment for non-recurring effects: profit before tax increased

by 11%, profit for the period by 17.7%

Gearing ratio increased from 47% to 59% due to calling of hybrid bond

2007 (EUR 500 million)

Start of construction for the direct reduction plant in Texas in July

voestalpine AG

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voestalpine Group

1st Half 2014/15 - Market Environment

Inconsistent global economic trend

Growth in Europe (eurozone) loses momentum over the

H1 2014/15

Stable growth in the USA – driver of global economic growth

China stable with 7% growth course

Brazil and Russia with continued slow development

voestalpine Group business performance stable in a

volatile environment

voestalpine AG

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voestalpine Group

Overview of key figures (values rounded)

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In millions of euros BY 2013/14 H1 2013/14 H1 2014/15 Change

(in %)

Adjusted

H1 2014/15

Revenue 11,228 5,643 5,561 -1.5 5,561

Operating result (EBITDA) 1,383 680 757 11.2 690

EBITDA margin (%) 12.3 12.1 13.6 12.4

Profit from operations (EBIT) 792 396 445 12.2 400

EBIT margin (%) 7.1 7.0 8.0 7.2

Profit before tax (EBT) 656 312 392 25.5 347

Profit for the period 523 238 324 35.9 281

Gearing ratio (%) 45.8 46.8 58.8

Employees (full-time

equivalent) 48,113 47,126 47,379 0.5

voestalpine AG

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voestalpine Group

Gearing ratio

831 635 684

377 526

3,572 3,762

3,037 2,713

2,586 2,259 2,421

2,899

1,786 1,853

2,125

2,547

2,882

4,289 4,263 4,262

4,691 4,836

5,075 5,261

4,932

47%

34% 32%

15%

18%

83% 88%

71%

58% 54%

45% 46%

59%

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 H1 2014/15

Net Debt (€m)

Equity (€m)

Gearing Ratio (%)

voestalpine AG

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voestalpine Group

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Position: EU climate and energy policies 2030

voestalpine AG

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EU climate and energy policies 2030

Goals

Reduction of greenhouse gas emissions at overall EU level by at least 40%

against 1990

Reduction of greenhouse gas emissions for sectors subject to emissions trading

by 43% against 2005

Increase share of renewable energies against 1990 to at least 27%

Energy savings of at least 27% against 1990 (indicative, i.e., due to be revised

in 2020, although target of 30% remains; member states can also set higher

targets at national level)

Relief for "poorer" EU member states

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voestalpine AG

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EU climate and energy policies 2030

Evaluation (1)

+ Free allocation remains (extent still to be defined) to 2030

In future the (currently unrealistic) benchmark values for free allocation will be periodically

examined; therefore allocations can also be reduced at any time

+ The best facilities in each sector should not be subject to any "undue" direct and indirect

costs which result in the loss of international competitiveness and lead to the relocation of

production ("carbon leakage")

However, it is unclear how this formulation ("inappropriate, illegitimate, excessive")

should be interpreted

+ Commitment to protect industry from carbon leakage, also after 2020, where no

comparable climate protection regulations are in place in other global economic regions

11/5/2014 1st Half of Business Year 2014/15 11

voestalpine AG

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EU climate and energy policies 2030

Evaluation (2)

+ Fundamental commitment to continuance of industry in Europe and consideration of

international climate protection agreements

But: goals and partly also liabilities will be precisely quantified, however, relief measures

remain vague

+ Council remains involved and instructs Commission to maintain constant dialog with all those

affected

Further arrangement and specification of the framework, as well as more precisely defined

protective measures, will be decisive for the final evaluation

This applies in particular to the drawing up of the allocation mechanism (goal: 100 % free

allocation for the best 10% of facilities, i.e., with no deductions)

11/5/2014 1st Half of Business Year 2014/15 12

voestalpine AG

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CO2 emissions

Share by region in %

25.1

1.4

6.1

13.5

3.8

1.4 2.1

5.3

17.1 16.8

1.1

4.9

26.7

5.3

1.5 2.2 4.1

11.5

0

5

10

15

20

25

30

USA Australia Russia China India Brazil South Korea Japan EU

11/5/2014 1st Half of Business Year 2014/15 13

Source: Cologne Institute for Economic Research IW

Consult, International Energy Agency, BP

2000

2012

voestalpine AG

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voestalpine as benchmark – international comparison

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Source: EBFC - European Blast Furnace Committee – 2013

1300

1350

1400

1450

1500

1550

1600

1650

1700

1750CO2 blast furnace process based on carbon input (in kg/t crude steel)

European competitors

voestalpine

(Linz and Donawitz)

Blast furnaces

2014

Currently unrealistic

benchmark value for free

allocation:

1,328 kg/t!

voestalpine AG

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CO2emissions trading: effects on voestalpine

3%

28%

?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008-2012 2013-2020 2021-2030

20

?

Purchase

requirement for

certificates in %

Max. additional costs

in million euros

...and yet to date voestalpine is the only steel

company in the EU that is a net payer within the

emissions trading system!

Purchase requirement increases during the period

from 2013 to 2020 by 3% to 28% (= 28 million

certificates). Actual cost burden depends on CO2 price.

According to current planning assumptions (i.e., with

existing allocation mechanism and continuation of

current carbon leakage protection) we can assume a

further, massive increase in the period 2021 to 2030.

However, after the Council commitments these should

be improved. The precise effects now depend on the

further design of the emissions trading system and

therefore cannot currently be quantified precisely.

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?

voestalpine AG

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voestalpine Group

11/5/2014 1st Half of Business Year 2014/15 16

Outlook BY 2014/15

voestalpine AG

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voestalpine Group

Outlook

Expectation: Results (EBITDA, EBIT) slightly above BY 2013/14

Conflicts in the Near and Middle East and Russia/Ukraine are putting increasing

pressure on economic development in Europe – recovery delayed

Only moderate level of voestalpine Group activity in conflict regions

(< 2% of overall revenue)

USA and China remain strong with stable growth

Brazil and Russia with continued economic problems

Expectations for several large customer segments (construction industry,

mechanical engineering industry) more reserved than at start of the BY 2014/15

Even so: solid development across all four divisions for the remaining six months

– largely full capacity utilization expected

Outlook for the BY 2014/15 unchanged despite increasingly challenging

environment:

voestalpine AG

www.voestalpine.com

voestalpine AG

1st Half 2014/15 Press Conference, November 5, 2014