voestalpine AG: Economic slowdown impacts voestalpine earnings for Q3
2023/24

EQS-News: voestalpine AG / Key word(s): Quarterly / Interim Statement
voestalpine AG: Economic slowdown impacts voestalpine earnings for Q3
2023/24

07.02.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Economic slowdown impacts voestalpine earnings for Q3 2023/24

  * At EUR 12.4 billion, revenue for Q1 to Q3 2023/24 is 8.8% lower than in
    the previous year (EUR 13.6 billion)

* EBITDA fell by 31.7% to EUR 1.3 billion (previous year: EUR 1.9 billion)

  * EBIT decreases year-over-year from EUR 1.1 billion to EUR 713 million
    (-37.4%)

  * Profit before tax at EUR 575 million (previous year: EUR 1.1 billion)
    and profit after tax at EUR 431 million (previous year: EUR 864 million)

* Equity rises by 2.5% from EUR 7.6 billion to EUR 7.8 billion

  * Net financial debt fell year-over-year, from EUR 2.7 billion to EUR 2
    billion (-24.6%)

* Gearing ratio improved significantly year-over-year from 35.1% to 25.8%

* Number of employees stands at 50,712 FTEs (+1.4%)

* EBITDA outlook unchanged at EUR 1.7 billion

Weak economic development, particularly in Europe, put pressure on
voestalpine's earnings in the first three quarters of the 2023/24 business
year (April 1 to December 31). The international steel and technology group
did, however, benefit overall from its global positioning and industry
diversification. The energy sector performed well in the first nine months
of the current business year. The Railway Systems business segment
experienced good demand for the first three quarters of the business year;
as a global market leader in rail infrastructure systems, voestalpine
benefited from the high global demand for rails, turnouts, and systems for
fully digital monitoring of rail tracks. Positive trends in the aerospace
segment continued in the first three quarters. By contrast, demand remained
weak in the consumer goods, construction and mechanical engineering
industries. The tool manufacturing segment in particular saw a decline in
demand in the second and third quarters of 2023/24. Demand from the
automotive industry was stable in the first three quarters with previous
supply chain problems largely being eliminated. The storage technology
segment continued to show good capacity utilization in the first nine months
of the business year.

"The expected economic downturn was clearly noticeable in the first nine
months of the current business year. However, voestalpine is in a strong
position overall due to its broad focus in various market segments and
economic regions. Ensuring the competitiveness of the location as an
industrial base will nevertheless be crucial. The key points here are
expansion of the renewable energy supply and the grids as well as the
extension of electricity price compensation until 2030," highlights Herbert
Eibensteiner, CEO of voestalpine AG.

New special steel plant in Kapfenberg in exclusive operation

The new special steel plant in Kapfenberg has been in exclusive operation
since the start of the 2024 calendar year, with the old special steel plant
shut down as planned at the end of 2023. voestalpine will produce up to
205,000 tons of high-performance materials for the automotive, aerospace and
energy industries each year at the new plant, securing around 3,500 jobs in
Kapfenberg and Mürzzuschlag.

Revenue and earnings performance

The voestalpine Group's revenue fell by 8.8% in the first nine months of the
2023/24 business year, from EUR 13.6 billion to EUR 12.4 billion. EBITDA was
down by 31.7% from EUR 1.9 billion to EUR 1.3 billion year-over-year (margin
of 10.4%). EBIT fell by 37.4% year-over-year from EUR 1.1 billion to EUR 713
million (margin of 5.8%). Profit before tax fell by 45.4% over the first
three quarters of 2023/24, dropping from EUR 1.1 billion to EUR 575 million
in the reporting period. Profit after tax halved to EUR 431 million
(previous year's figure: EUR 864 million). Equity as of December 31, 2023 is
EUR 7.8 billion (+2.5%). Net financial debt was reduced by 24.6%
year-over-year to EUR 2 billion. The gearing ratio (net financial debt as a
percentage of equity) improved year-over-year, from 35.1% to 25.8%. The
number of employees (FTEs) in the voestalpine Group rose 1.4%
year-over-year, from 50,018 to 50,712.

Outlook

Although the voestalpine Group's performance is solid overall, the expected
economic downturn is clearly noticeable in some areas. The interest
rate-sensitive segments like construction, mechanical engineering and
consumer goods industries as well as investments in industrial production
facilities in general have weakened significantly and, from today's
perspective, will not show any signs of recovery for the remainder of the
business year 2023/24. The automotive industry segment will remain stable at
the current level in the final quarter of 2023/24. The energy segment will
continue its good momentum. The railway systems business is also expected to
continue its positive development. The same applies to the aerospace
industry, which has seen a dynamic recovery following the massive slump in
the wake of the COVID-19 pandemic. From a regional perspective, Europe is
also expected to see the weakest economic trend worldwide for the remainder
of the 2023/24 business year. The eurozone has been teetering on the brink
of recession in the last two quarters and no positive impetus is expected
for the final quarter of the current business year, either. Developments in
North America are still expected to be relatively robust. In South America,
where Brazil is particularly relevant for the voestalpine Group, the economy
appears to be cooling off somewhat in the last quarter of the business year.
China's overall economy is growing, although the individual sectors are
developing quite differently. Most probably, the problems in the real estate
sector will not be resolved in the short term and will subsequently have a
negative impact on related sectors such as the construction industry.
However, the manufacturing industry, particularly in the high-tech sector,
will continue to develop positively.

Against this backdrop and assuming no unexpected economic upheavals, the
Management Board of voestalpine AG continues to expect EBITDA in the range
of EUR 1.7 billion for the business year 2023/24.

KEY FIGURES - voestalpine GROUP

                                               Q1-Q3        Q1-Q3        Cha-
                                               2022/23      2023/24      nge
                                               04/01-12/3-  04/01-12/3-  in
                                               1/2022       1/2023       %
  Revenue                                      13,585.2     12,387.6     -8.-
                                                                         8
  EBITDA                                       1,879.0      1,282.9      -31-
                                                                         .7
  EBITDA margin in %                           13.8%        10.4%
  EBIT                                         1,140.0      713.2        -37-
                                                                         .4
  EBIT margin in %                             8.4%         5.8%
  Profit before tax                            1,052.6      574.8        -45-
                                                                         .4
  Profit after tax from continuing operations  770.4        436.1        -43-
                                                                         .4
  Profit after tax from discontinued           93.8         -4.9
  operations
  Profit after tax *                           864.2        431.2        -50-
                                                                         .1

  EPS - basic earnings per share from          3.93         2.06         -47-
  continuing operations (euros)                                          .6
  EPS - basic earnings per share from          0.53         -0.03
  discontinued operations (euros)
  EPS - basic earnings per share (euros)       4.46         2.03         -54-
                                                                         .5

  EPS - diluted earnings per share from        3.93         1.99         -49-
  continuing operations (euros)                                          .4
  EPS - diluted earnings per share from        0.53         -0.03
  discontinued operations (euros)
  EPS - diluted earnings per share (euros)     4.46         1.96         -56-
                                                                         .1

  Gearing Ratio in % (12/31)                   35.1%        25.8%
  In millions of euros

* Before deduction of non-controlling interests.

The Report of the first three quarters of the BY 2023/24 of voestalpine AG
as of the December 31, 2023, may be accessed on the company's website at
www.voestalpine.com under the 'Investors' tab. In case of questions, please
contact the company's Investor Relations team at +43/50304/15-9949.


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07.02.2024 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:    1831751

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1831751 07.02.2024 CET/CEST