The voestalpine Group operates in six reportable segments: Steel Division, Special Steel Division, Railway Systems Division, Profilform Division, Automotive Division, and Other. The reporting system, which is essentially based on the nature of the products provided, reflects the internal financial reporting, the management structure of the organization, and the predominant sources of risks and rewards of the Company.
The Steel Division focuses on the production of flat steel products for the automotive, white goods, and construction industries. This division is a top-three European player in the highest quality segment. The division produces and processes hot- and cold-rolled steel as well as electrolytically galvanized, hot-dip galvanized, and organically coated plate and electrical sheet steel. It also has other activities, such as heavy plate production, a foundry, and a variety of downstream processes.
The Special Steel Division is a global market leader in tool steel. Furthermore, it has a leading position in precision strip steel, special forgings, and welding technology. Key customers include the automotive industry, tool and machinery manufacturers, aircraft manufacturers, the consumer goods and electronics industries, the wood industry, the textile and paper industries, the construction of power plants and other industrial facilities, and oilfield technology.
The Railway Systems Division is the global market leader in switches and the European market leader for rails and processed wire, as well as a full-service provider for railway construction, including planning, logistics, signal engineering, and line maintenance. The division has its own steel production and also manufactures rod wire, drawn wire, seamless tubes, and semi-finished products.
The Profilform Division is responsible for the Group’s tube and section production activities. It specializes in welded tubes and hollow sections, open standard sections, and all types of custom roll forming of special tubes and sections. In addition, the division also produces pallet and high-bay racking systems and elements for street safety. It is the global market leader in the special sections segment.
The Automotive Division processes steel and other materials, such as aluminum and plastics, into components, modules, and systems for the automotive industry. It focuses on laser-welded blanks as well as on body-in-white components and safety-related parts. The Automotive Division has become a top-three player in the European automotive component supplier industry.
The holding company, several Group financing companies as well as the entities of group IT are included under Other. These companies are combined in this segment because their focus is on providing coordination 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 the profit from operations (EBIT) to measure the performance of the segments because it is commonly used in the steel and steel processing industry as a comparative measure of financial performance. In addition, the voestalpine Group considers it a widely accepted indicator for measuring the Group’s profitability.
The operating segments1 of the Group are presented as follows:
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Operating segments |
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Steel Division |
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Special Steel Division |
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Railway Systems Division | ||||||
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2008/09 |
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2009/10 |
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2008/09 |
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2009/10 |
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2008/09 |
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2009/10 |
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Segment revenue |
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4,328.5 |
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3,098.7 |
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3,530.6 |
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2,358.4 |
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2,351.0 |
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1,908.5 |
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Of which revenue with third parties |
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3,736.3 |
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2,746.2 |
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3,526.2 |
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2,353.9 |
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2,332.0 |
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1,895.7 |
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Of which revenue with other segments |
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592.2 |
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352.5 |
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4.4 |
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4.5 |
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19.0 |
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12.8 |
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735.5 |
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423.3 |
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363.3 |
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153.1 |
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414.7 |
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329.0 | |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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213.1 |
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221.9 |
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308.3 |
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232.7 |
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90.0 |
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103.4 |
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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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0.4 |
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3.1 |
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Of which reversal of 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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0.0 |
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0.0 |
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Profit from operations (EBIT) |
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522.3 |
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201.4 |
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55.0 |
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–79.6 |
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324.7 |
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225.6 |
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12.1 % |
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6.5 % |
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1.6 % |
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–3.4 % |
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13.8 % |
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11.8 % | |
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Share of profit of associates |
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14.7 |
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10.5 |
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0.0 |
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0.0 |
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2.6 |
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3.8 |
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Profit for the period |
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361.6 |
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139.5 |
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–18.3 |
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–98.9 |
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227.7 |
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158.9 |
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Segment assets |
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3,902.8 |
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3,342.3 |
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5,061.2 |
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4,748.1 |
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1,989.7 |
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1,840.9 |
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Of which investments in associates |
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81.9 |
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83.5 |
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0.1 |
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0.0 |
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18.4 |
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13.3 |
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896.7 |
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949.3 |
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627.4 |
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821.4 |
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440.0 |
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382.7 | |
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Investments in property, plant and equipment and intangible assets |
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398.6 |
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240.7 |
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274.5 |
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181.2 |
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232.5 |
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71.6 |
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Employees (excl. temporary personnel and apprentices) |
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10,034 |
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9,510 |
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14,734 |
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13,762 |
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8,077 |
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7,863 |
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Profilform Division |
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Automotive Division |
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Other | ||||||
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2008/09 |
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2009/10 |
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2008/09 |
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2009/10 |
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2008/09 |
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2009/10 |
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Segment revenue |
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1,147.1 |
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724.0 |
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988.6 |
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835.4 |
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106.3 |
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88.4 |
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Of which revenue with third parties |
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1,140.5 |
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719.4 |
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985.8 |
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833.1 |
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4.1 |
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1.7 |
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Of which revenue with other segments |
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6.6 |
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4.6 |
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2.8 |
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2.3 |
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102.2 |
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86.7 |
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EBITDA |
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163.8 |
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63.6 |
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72.2 |
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73.8 |
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–56.2 |
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–60.8 |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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31.4 |
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31.7 |
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71.6 |
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55.9 |
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6.9 |
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6.7 |
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Of which impairment |
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0.0 |
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0.0 |
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7.2 |
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0.0 |
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0.0 |
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0.0 |
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Of which reversal of impairment |
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0.0 |
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0.0 |
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0.0 |
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9.3 |
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0.0 |
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0.0 |
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Profit from operations (EBIT) |
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132.4 |
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31.9 |
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0.6 |
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18.0 |
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–63.1 |
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–67.7 |
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EBIT margin |
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11.5 % |
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4.4 % |
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0.1 % |
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2.2 % |
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Share of profit of associates |
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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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6.7 |
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6.0 |
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Profit for the period |
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81.1 |
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17.2 |
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–2.4 |
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16.4 |
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984.6 |
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–233.5 |
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Segment assets |
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627.5 |
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576.4 |
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930.7 |
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866.7 |
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9,536.1 |
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8,662.8 |
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Of which investments in associates |
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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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0.1 |
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1.0 |
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Net financial debt |
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150.7 |
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171.8 |
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376.6 |
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283.8 |
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1,335.9 |
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504.4 |
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Investments in property, plant and equipment and intangible assets |
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46.8 |
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19.3 |
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50.9 |
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22.5 |
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7.4 |
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4.4 |
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Employees (excl. temporary personnel and apprentices) |
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3,512 |
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3,087 |
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4,870 |
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4,551 |
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688 |
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633 |
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Reconciliation |
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Total Group | ||||||
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2008/09 |
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2009/10 |
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2008/09 |
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2009/10 |
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Segment revenue |
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–727.2 |
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–463.4 |
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11,724.9 |
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8,550.0 |
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Of which revenue with third parties |
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0.0 |
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0.0 |
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11,724.9 |
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8,550.0 |
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Of which revenue with other segments |
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–727.2 |
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–463.4 |
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0.0 |
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0.0 |
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EBITDA |
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16.8 |
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22.3 |
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1,710.1 |
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1,004.3 |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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0.0 |
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0.0 |
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721.3 |
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652.3 |
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Of which impairment |
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0.0 |
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0.0 |
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7.6 |
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3.1 |
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Of which reversal of impairment |
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0.0 |
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0.0 |
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0.0 |
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9.3 |
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Profit from operations (EBIT) |
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16.8 |
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22.4 |
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988.7 |
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352.0 |
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EBIT margin |
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8.4 % |
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4.1 % |
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Share of profit of associates |
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0.4 |
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0.1 |
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24.4 |
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20.4 |
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Profit for the period |
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–1,022.7 |
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187.2 |
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611.6 |
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186.8 |
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Segment assets |
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–9,201.5 |
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–7,743.1 |
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12,846.5 |
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12,294.1 |
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Of which investments in associates |
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28.7 |
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28.7 |
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129.2 |
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126.5 |
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Net financial debt |
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–65.7 |
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–76.1 |
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3,761.6 |
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3,037.3 |
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Investments in property, plant and equipment and intangible assets |
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7.4 |
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0.0 |
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1,018.1 |
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539.7 |
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Employees (excl. temporary personnel and apprentices) |
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0 |
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0 |
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41,915 |
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39,406 |
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1 The cash-generating units Precision Strip and Welding Consumables have been legally allocated to the Profilform Division and the Railway Systems Division with retroactive effect from April 1, 2009, but they were managed and reported within the Special Steel Division during the entire business year 2009/10 and therefore are allocated to the operating segment Special Steel Division in these consolidated financial statements. |
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In millions of euros | ||||||||||
The reconciliation of the key ratios EBITDA and EBIT are shown in the following table:
(XLS:) Download  |
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EBITDA |
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2008/09 |
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2009/10 |
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Net exchange differences incl. result from valuation of derivatives |
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4.5 |
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18.3 |
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Value adjustments for receivables/waiver of receivables |
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6.6 |
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–1.7 |
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Consolidation |
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6.1 |
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6.8 |
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Other |
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–0.4 |
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–1.1 |
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EBITDA – Total reconciliation |
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16.8 |
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22.3 |
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In millions of euros | ||
| (XLS:) Download |
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EBIT |
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2008/09 |
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2009/10 |
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Net exchange differences incl. result from valuation of derivatives |
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4.5 |
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18.3 |
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Value adjustments for receivables/waiver of receivables |
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6.6 |
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–1.7 |
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Consolidation |
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6.1 |
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6.8 |
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Other |
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–0.4 |
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–1.0 |
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EBIT – Total reconciliation |
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16.8 |
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22.4 |
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In millions of euros | ||
For the most part, all other key ratios 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 geographical location of the companies.
| (XLS:) Download |
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Austria |
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European Union |
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Other countries | ||||||
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2008/09 |
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2009/10 |
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2008/09 |
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2009/10 |
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2008/09 |
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2009/10 |
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External revenue |
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1,328.3 |
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774.3 |
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7,192.4 |
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5,345.1 |
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3,204.2 |
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2,430.6 |
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Non-current assets |
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4,401.9 |
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4,350.0 |
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1,629.5 |
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1,598.5 |
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493.6 |
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544.9 |
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Investments in property, plant and equipment and intangible assets |
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693.2 |
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403.9 |
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244.1 |
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105.7 |
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80.8 |
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30.1 |
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In millions of euros | ||
The voestalpine Group does not record any revenue from transactions with a single external customer amounting to 10% or more of an entity’s revenue.
