EANS-News: voestalpine AG / voestalpine reports further recovery in key business segments during the third quarter of the business year 2020/21 CNE

2/9, 7:29 AM (Source: euro adhoc)
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Quarterly Report

Linz -

* Revenue fell by 16.8% year over year, from EUR 9.6 billion to EUR 8 billion
* At EUR 683 million, operating result (EBITDA) is substantially positive (Q3
  2019/20: EUR 837 million)
* At EUR -134 million, profit from operations (EBIT) is negative (Q3 2019/20:
  EUR -82 million) due to impairment losses
* At EUR -159 million (Q3 2019/20: EUR -160 million), profit after tax affected
  by impairment losses as well yet stable
* Substantial improvement in the gearing ratio, from 80% the previous year to
  currently 58.4%
* Marked reduction in net financial debt by 30.7% year over year
* 47,871 employees (FTE) as of 12/31/2020 (-3.9%)
* Automotive, construction, and consumer goods industry almost back to pre-
  COVID-19 level
* Railway infrastructure remains stable at a positive level, boom in orders for
  storage systems

In the first nine months of the business year 2020/21, the performance of the
voestalpine Group was strongly shaped by the COVID-19 pandemic. While the
business year's first quarter was characterized by the massive meltdown in
demand in almost all customer segments and regions, the second quarter saw a
considerable rebound in major sectors. Upward trends in key business segments
continued in the third business quarter despite renewed lockdowns. The
automotive industry, in particular, gradually recovered following the production
shutdowns during the Northern spring, once again returning to order levels
during the Northern fall that equated roughly to those prior to the outbreak of
the COVID-19 pandemic. The construction, consumer goods, and white goods
industries also managed to rapidly return to pre-COVID-19 order levels (the last
two did well even during the difficult first business quarter). Conditions in
the aerospace industry as well as in the oil and natural gas sector remained
difficult, however. The railway infrastructure technology segment developed
along a stable, positive trajectory during the entire reporting period. The
high-bay warehouses customer segment also posted highly satisfactory
performance. Thanks to the growth in online commerce, this unit posted record
order levels in Europe and North America (key markets both) during the Northern
fall.

"Our current performance in key customer segments has boosted our outlook. Our
efforts with respect to cost savings and efficiency gains are having an effect.
We are well positioned and even succeeded in stabilizing yet further in this
difficult environment, substantially increasing the free cash flow, and
decreasing our debt by one third. At the same time, we invested EUR 450 million
in our future. Positive market signals notwithstanding, it remains to be seen
how the future course of the COVID-19 pandemic will affect the global economy,"
says Herbert Eibensteiner, Chairman of the Management Board of voestalpine AG.

Development of revenue and earnings

The voestalpine Group's revenue as of the third quarter of the business year
2020/21 fell by 16.8% year over year, from EUR 9.6 billion to EUR 8 billion;
given the continual improvement in order levels over the reporting period,
revenue for the third business quarter is but slightly lower year over year. At
EUR 683 million, EBITDA for the first three quarters of the business year 2020/
21 is 18.4% less than the EBITDA of EUR 837 million for the first three quarters
of the business year 2019/20. Similarly to revenue, EBITDA also improved
continually during the reporting period. EBIT dropped from EUR -82 million to
EUR -134 million; the numbers for both the previous year and the reporting
period contain significant non-recurring effects. These non-recurring effects in
the amount of about EUR 200 million adversely affected EBIT for the current
business year's first three quarters (Q1-Q3 2019/20: EUR 345 million). At EUR -
159 million, the profit after tax was also affected by impairment losses but
remain largely stable year over year (Q1-Q3 2019/20: EUR -160.0 million).

The gearing ratio (net financial debt as a percentage of equity) improved
substantially: from 80% as of December 31, 2019, to 58.4% as of December 31,
2020. While equity fell by 5% to EUR 5.4 billion as of December 31, 2020 (down
from EUR 5.7 billion year over year), net financial debt dropped by 30.7%, from
EUR 4.6 billion in the previous year to EUR 3.2 billion in the reporting period
thanks to cuts in investment costs and reductions in working capital.

Year over year, the number of employees (FTE) in the voestalpine Group fell by
3.9% to 47,871. As of December 31, 2020, about 1,100 employees in Austria were
still registered for short time work-down from 10,300 at the beginning of the
COVID-19 crisis. About 700 employees in Germany and an additional 470
internationally (especially in South Africa, France, and Great Britain) were
still registered for short time work or similar programs at the end of 2020.

Outlook

The number of COVID-19 infections rose dramatically yet again in most of the
world during the third quarter of the business year 2020/21. Individual states
in Europe reacted yet again with lockdowns; even in the United States
restrictions were imposed on public life. Given the circumstances, so far none
of these measures have had material adverse effects on the economic recovery of
those markets that are relevant to the voestalpine Group. However, the
uncertainties about economic developments going forward have risen sharply. It
is completely unclear to date how the expansion of limitations on commerce will
affect the consumption of European products. The risk of downtimes in production
or of interruptions in essential supply chains owing to the pandemic cannot be
predicted at this time.

In no small part, this is why voestalpine's management continues to focus on
cost management and earnings stabilization. Its efforts with respect to working
capital management and curtailment of investments in order to buttress both cash
flow and the Group's asset and capital structure will continue as well.

Several positive developments occurred after the end of the reporting period
above and beyond central banks' clearly supportive monetary policies in the
world's major economic regions.

* First and foremost, the medicines regulatory authorities (MRAs) of many
  countries have licensed vaccines against the COVID-19 virus, and campaigns to
  immunize the public have been launched.
* The U.S. Administration announced an economic stimulus package of historic
  proportions.

With the exception of the oil and natural gas sector as well as the aerospace
industry, we can say from today's vantage point that the economic rebound of the
voestalpine Group's main markets is more probable than not. Assuming that there
will be no new major restrictions on economic activity and/or state-ordered
measures owing to the COVID-19 pandemic, the Management Board currently
forecasts EBITDA of about EUR 1 billion for the entire business year 2020/21 and
thus an amount at the upper end of the previously communicated range.

Key figures of voestalpine Group

 __________________________________________________________________________
|(acc._IFRS)___________________|Q1-Q3_BY_2019/20_|Q1-Q3_BY_2020/21_|Delta_%|
|______________________________|04/01/-12/31/2019|04/01/-12/31/2020|_______|
|Revenue_______________________|9,575.2__________|7,971.1__________|-16.8__|
|EBITDA________________________|837.2____________|682.9____________|-18.4__|
|EBITDA_margin_in_%____________|8.7_%____________|8.6_%____________|_______|
|EBIT__________________________|-82.3____________|-133.7___________|-62.5__|
|EBIT_margin_in_%______________|-0.9_%___________|-1.7_%___________|_______|
|Profit_before_tax_____________|-185.2___________|-210.5___________|-13.7__|
|Profit_after_tax_*____________|-160.0___________|-159.3___________|0.4____|
|EPS-earnings_per_share_(euros)|-0.97____________|-0.86____________|11.3___|
|Gearing-ratio_in_%_(12/31)____|80.0_%___________|58.4_%___________|_______|
|In_millions_of_euros______________________________________________________|


*Before deduction of interest on hybrid capital (where relevant) and non-
controlling interests.

voestalpine AG's 1st-3rd quarter results BY 2020/21 as of December 31, 2020, may
be viewed on the Company's website, www.voestalpine.com [http://
www.voestalpine.com/], under the "Investors" tab.

If you have any questions, please contact the Investor Relations Team at +43/
50304/15-9949.

Further inquiry note:
voestalpine AG
Mag. Peter Felsbach, MAS
Head of Group Communications I Konzernsprecher

voestalpine-Straße 1
4020 Linz, Austria
T. +43/50304/15-2090
peter.felsbach@voestalpine.com
www.voestalpine.com [http://www.voestalpine.com/]

Further inquiry note:
Peter Fleischer
Head of Investor Relations
Phone: +43/50304/15-9949
Fax:  +43/50304/55-5581
mailto:peter.fleischer@voestalpine.com
http://www.voestalpine.com

end of announcement                         euro adhoc
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issuer:       voestalpine AG
              voestalpine-Straße  1
              A-4020 Linz
phone:        +43 50304/15-9949
FAX:          +43 50304/55-5581
mail:         IR@voestalpine.com
WWW:          www.voestalpine.com
ISIN:         AT0000937503
indexes:      WBI, ATX
stockmarkets: Wien
language:     English

EAX0004    2021-02-09/07:29

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