The voestalpine Group operates in five reportable segments: Steel Division, Special Steel Division, Metal Engineering Division, Metal Forming Division, and Other. The reporting system, which is based primarily on the nature of the products provided, reflects the internal financial reporting, the management structure of the organization, and the Company’s predominant sources of risks and rewards.
The Steel Division focuses on the production and processing of steel products for the segments automotive industry, white goods, energy and engineering industry. This division is global leader in quality in highest quality strip steel and is global market leader in heavy plate for the most sophisticated applications as well as in casings for large turbines. The division produces and processes hot- and cold-rolled steel as well as electrogalvanized, hot-dip galvanized, and organically coated plate and electrical steel strip. Its other activities include heavy plate production and a foundry, and a focus on a number of downstream processes.
The Special Steel Division is the global market leader in the sector of tool steel and high-speed steel. In the segment of special alloys for the oil and natural gas industries, the aerospace industry, and the energy engineering industry, the Special Steel Division holds a leading position on the global market. The companies of the Special Steel Division are leading providers of forging technology, both in the open die forging segment and in the drop forgings segment. The main customer groups for all of the division’s most important product segments are primarily the automotive industry, the aerospace industry, the oil and natural gas industries, the energy engineering industry, and the entire tool industry.
The Metal Engineering Division is worldwide market leader in turnout technology; European market leader in rails and specially treated wire; and has a leading position in seamless tubes for special applications and high-quality welding consumables. The division manufactures the world’s widest range of high-quality rails and turnout products, high-quality rod wire, drawn wire, premium seamless tubes, and welding filler materials. Furthermore, the division offers an extensive range of services in the rail and turnout sectors. Moreover, the Metal Engineering Division has access to its own steel production.
The Metal Forming Division is the expertise center at voestalpine for highly developed special sections, tube products, and precision strip steel as well as pre-finished system components made from pressed, punched, and roll-profiled parts. This combination of expertise in materials and processing is unique in the industry, and with its global presence, the division is the first choice for customers who value innovation and quality. These customers include nearly all leading manufacturers in the automobile manufacture and supply industry, with a significant focus on the premium segment, as well as several companies in the commercial vehicle, construction, storage, energy and (agricultural) equipment industry.
The holding company, several Group financing and raw materials purchasing companies as well as one personal service company and the group-IT companies are included in the segment Other. These companies are combined in this segment because their focus is on providing coordination services and assistance to the subsidiaries.
Segment revenue, segment expenses, and segment results include transfers between operating segments. Such transfers are accounted for at competitive market prices charged to unaffiliated customers for similar products. These transactions have been eliminated in the consolidated financial statements.
The voestalpine Group uses EBIT as the key figure to measure the performance of the segments. In the voestalpine Group, this figure is a widely accepted indicator for measuring profitability.
The operating segments of the Group are as follows:
Operating segments |
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Steel Division |
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Special Steel Division |
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2014/15 |
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2015/16 |
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2014/15 |
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2015/16 |
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Segment revenue |
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3,873.9 |
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3,753.7 |
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2,777.4 |
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2,650.9 |
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Of which revenue with third parties |
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3,578.9 |
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3,450.8 |
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2,723.8 |
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2,596.2 |
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Of which revenue with other segments |
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295.0 |
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302.9 |
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53.6 |
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54.7 |
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450.3 |
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478.3 |
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406.9 |
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364.1 |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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242.3 |
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258.3 |
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153.3 |
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136.9 |
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Of which impairment |
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0.0 |
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0.2 |
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16.3 |
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0.0 |
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Reversal of impairment of property, plant and equipment and intangible assets |
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0.0 |
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0.0 |
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0.6 |
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0.0 |
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Share of profit of entities consolidated according to the equity method |
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11.8 |
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6.1 |
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0.0 |
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0.0 |
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208.0 |
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220.0 |
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253.6 |
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227.2 |
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5.4% |
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5.9% |
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9.1% |
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8.6% |
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Interest and similar income |
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0.4 |
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0.7 |
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5.6 |
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8.7 |
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Interest and similar expenses |
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42.3 |
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40.7 |
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56.0 |
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56.0 |
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Income tax expense |
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–24.9 |
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–28.4 |
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–58.4 |
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–68.0 |
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Profit after tax |
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140.1 |
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149.9 |
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145.4 |
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112.3 |
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Segment assets |
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4,405.3 |
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4,671.9 |
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4,007.5 |
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3,881.9 |
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Of which investments in entities consolidated according to the equity method |
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105.3 |
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92.1 |
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0.0 |
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0.0 |
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1,465.2 |
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1,785.3 |
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822.9 |
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815.0 |
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Investments in property, plant and equipment and intangible assets |
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570.6 |
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701.0 |
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159.3 |
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181.7 |
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Employees (full-time equivalent) |
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11,103 |
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10,891 |
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13,490 |
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13,470 |
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Metal Engineering Division |
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Metal Forming Division |
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2014/15 |
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2015/16 |
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2014/15 |
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2015/16 |
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Segment revenue |
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2,593.0 |
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2,850.4 |
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2,335.2 |
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2,224.9 |
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Of which revenue with third parties |
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2,567.1 |
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2,812.8 |
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2,302.4 |
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2,195.5 |
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Of which revenue with other segments |
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25.9 |
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37.6 |
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32.8 |
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29.4 |
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EBITDA |
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419.8 |
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510.9 |
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331.3 |
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290.5 |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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127.8 |
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196.0 |
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112.9 |
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96.0 |
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Of which impairment |
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15.9 |
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38.8 |
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19.1 |
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0.2 |
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Reversal of impairment of property, plant and equipment and intangible assets |
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0.0 |
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0.2 |
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2.3 |
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0.0 |
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Share of profit of entities consolidated according to the equity method |
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47.1 |
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145.5 |
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0.0 |
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0.0 |
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EBIT |
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292.1 |
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314.9 |
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220.7 |
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194.5 |
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EBIT margin |
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11.3% |
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11.0% |
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9.5% |
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8.7% |
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Interest and similar income |
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2.0 |
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3.5 |
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1.7 |
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3.5 |
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Interest and similar expenses |
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33.9 |
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36.5 |
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29.1 |
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26.5 |
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Income tax expense |
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–62.9 |
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–53.2 |
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–24.7 |
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–25.6 |
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Profit after tax |
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197.5 |
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228.7 |
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168.7 |
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145.9 |
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Segment assets |
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2,770.2 |
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3,140.9 |
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2,021.5 |
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2,028.2 |
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Of which investments in entities consolidated according to the equity method |
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99.1 |
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5.0 |
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0.0 |
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0.0 |
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Net financial debt |
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654.2 |
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700.9 |
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400.6 |
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413.1 |
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Investments in property, plant and equipment and intangible assets |
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267.8 |
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248.2 |
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169.8 |
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167.5 |
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Employees (full-time equivalent) |
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11,685 |
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12,675 |
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10,328 |
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10,470 |
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Other |
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Reconciliation |
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Total Group |
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2014/15 |
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2015/16 |
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2014/15 |
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2015/16 |
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2014/15 |
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2015/16 |
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Segment revenue |
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1,201.0 |
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934.4 |
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–1,591.0 |
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–1,345.6 |
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11,189.5 |
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11,068.7 |
Of which revenue with third parties |
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17.3 |
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13.4 |
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0.0 |
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0.0 |
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11,189.5 |
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11,068.7 |
Of which revenue with other segments |
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1,183.7 |
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921.0 |
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–1,591.0 |
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–1,345.6 |
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0.0 |
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0.0 |
EBITDA |
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–80.3 |
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–73.9 |
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2.1 |
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13.5 |
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1,530.1 |
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1,583.4 |
Depreciation and amortization of property, plant and equipment and intangible assets |
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7.6 |
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7.4 |
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0.0 |
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0.0 |
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643.9 |
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694.6 |
Of which impairment |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
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51.3 |
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39.2 |
Reversal of impairment of property, plant and equipment and intangible assets |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
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2.9 |
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0.2 |
Share of profit of entities consolidated according to the equity method |
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0.6 |
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0.8 |
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0.7 |
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0.6 |
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60.2 |
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153.0 |
EBIT |
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–88.0 |
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–81.3 |
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–0.2 |
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13.5 |
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886.2 |
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888.8 |
EBIT margin |
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7.9% |
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8.0% |
Interest and similar income |
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191.3 |
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198.9 |
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–176.5 |
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–188.2 |
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24.5 |
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27.1 |
Interest and similar expenses |
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242.5 |
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187.5 |
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–220.2 |
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–189.5 |
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183.6 |
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157.7 |
Income tax expense |
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35.1 |
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28.1 |
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–8.2 |
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–2.1 |
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–144.0 |
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–149.2 |
Profit after tax |
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297.7 |
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48.3 |
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–354.4 |
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–83.0 |
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595.0 |
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602.1 |
Segment assets |
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10,390.6 |
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10,483.5 |
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–10,390.4 |
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–10,199.8 |
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13,204.7 |
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14,006.6 |
Of which investments in entities consolidated according to the equity method |
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5.5 |
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6.1 |
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9.2 |
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9.2 |
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219.1 |
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112.4 |
Net financial debt |
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–397.5 |
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–661.0 |
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32.7 |
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26.6 |
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2,978.1 |
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3,079.9 |
Investments in property, plant and equipment and intangible assets |
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8.8 |
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7.1 |
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0.1 |
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0.2 |
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1,176.4 |
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1,305.7 |
Employees (full-time equivalent) |
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812 |
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861 |
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0 |
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0 |
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47,418 |
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48,367 |
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In millions of euros |
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The reconciliation of the key figures EBITDA and EBIT are shown in the following tables:
EBITDA |
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2014/15 |
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2015/16 |
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Net exchange differences and result from valuation of derivatives |
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–1.4 |
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12.6 |
Consolidation |
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3.5 |
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0.9 |
EBITDA – Total reconciliation |
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2.1 |
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13.5 |
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In millions of euros |
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EBIT |
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2014/15 |
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2015/16 |
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Net exchange differences and result from valuation of derivatives |
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–1.4 |
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12.6 |
Consolidation |
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1.2 |
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0.9 |
EBIT – Total reconciliation |
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–0.2 |
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13.5 |
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In millions of euros |
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All other key figures contain solely the effects of consolidation.
Geographical information
The following table provides selected financial information subsumed into the major geographical areas. External revenue is allocated by geographical location of the customers’ companies. Non-current assets and investments are reported by the geographical location of the companies.
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Austria |
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European Union |
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Other countries |
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2014/15 |
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2015/16 |
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2014/15 |
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2015/16 |
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2014/15 |
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2015/16 |
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External revenue |
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1,154.2 |
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829.0 |
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6,982.2 |
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6,949.4 |
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3,053.1 |
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3,290.3 |
Non-current assets |
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4,793.2 |
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5,088.8 |
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1,542.2 |
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1,572.0 |
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1,015.1 |
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1,401.8 |
Investments in property, plant and equipment and intangible assets |
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599.8 |
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601.3 |
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230.9 |
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180.3 |
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345.7 |
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524.1 |
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In millions of euros |
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The voestalpine Group does not record any revenue from transactions with a single external customer amounting to 10% or more of the entity’s revenue.
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