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.
Since April 1, 2010, the cash-generating units Precision Strip and Welding Consumables have been managed and reported within the Profilform Division and the Railway Systems Division (previously Special Steel Division). In these consolidated financial statements, the two cash-generating units were therefore allocated to the operating segments Profilform Division (Precision Strip) and Railway Systems Division (Welding Consumables). The previous year’s comparative figures were adjusted accordingly.
The Steel Division focuses on the production and processing of flat steel products for the automotive, white goods, and construction industries. This division is a top-three European supplier of high-quality strip steel and heavy plate for the most demanding applications. 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, a foundry, and a number of downstream processes.
The Special Steel Division1 is a global market leader in tool steel. Furthermore, it has a leading position in the special forging segment. The division manufactures long steel products, medium-wide strip steel, open-die forgings, and drop forgings. The main customer group is the tool industry, which mainly supplies the automotive industry and the consumer goods industry. The division’s second foothold is energy technology—from exploration to components for gas and steam turbines. Furthermore, the Special Steel Division is a global supplier of the aviation industry.
The Railway Systems Division is the global market leader in switches, the European market leader in rails and processed wire, as well as a leader in welding technology. The division has access to its own steel production and manufactures the world’s widest range of high-quality rails and switch products, rod wire, drawn wire, prestressing steel, seamless tubes, welding filler materials, and semi-finished products. Furthermore, the division is also a full-service provider for railway construction, including planning and engineering, transportation, logistics, and system installation.
The Profilform Division combines the tube and section production activities of the voestalpine Group. It manufactures 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 high-bay racking systems and components for road safety. The division is the global market leader in the special sections and the custom roll forming segments as well as a leader in precision strip steel. It focuses on supplying the construction and automotive supplier industries as well as the transportation, storage, and furniture industries.
The Automotive Division combines all activities of the voestalpine Group involving the processing of steel and other materials, such as plastics and composite material, into components, modules, and systems for the automotive industry. It focuses on body-in-white components, precision parts, and safety technology components. The Automotive Division has become a top-three player in the European automotive component supplier industry for body-in-white components, laser-welded blanks, and tubular components.
The holding company, several Group financing companies, as well as the entities of group-IT are included in 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 segments of the Group are presented as follows:
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Operating segments1 |
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Steel Division |
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Special Steel Division |
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Railway Systems Division | ||||||
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2009/10 |
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2010/11 |
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2009/10 |
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2010/11 |
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2009/10 |
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2010/11 |
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Segment revenue |
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3,098.7 |
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4,175.0 |
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1,895.4 |
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2,631.3 |
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2,295.8 |
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2,723.3 |
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Of which revenue |
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2,746.2 |
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3,548.5 |
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1,862.6 |
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2,567.0 |
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2,264.6 |
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2,688.3 |
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Of which revenue with other segments |
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352.5 |
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626.5 |
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32.8 |
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64.3 |
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31.2 |
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35.0 |
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423.3 |
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595.1 |
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93.6 |
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388.1 |
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367.7 |
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422.4 | |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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221.9 |
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223.3 |
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196.8 |
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179.6 |
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126.5 |
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113.5 |
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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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7.7 |
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3.1 |
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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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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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201.4 |
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371.9 |
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–103.2 |
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208.5 |
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241.2 |
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308.9 |
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6.5% |
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8.9% |
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–5.4% |
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7.9% |
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10.5% |
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11.3% | |
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Share of profit of associates |
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10.5 |
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15.9 |
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0.0 |
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0.0 |
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3.8 |
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7.7 |
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Interest and similar income |
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3.7 |
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1.9 |
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14.2 |
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14.3 |
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4.4 |
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3.9 |
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Interest and similar expenses |
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57.9 |
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58.2 |
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47.2 |
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53.1 |
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34.0 |
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32.4 |
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Income tax expense |
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–25.0 |
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–67.8 |
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24.8 |
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–52.5 |
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–51.0 |
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–74.5 |
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Profit for the period |
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139.5 |
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270.0 |
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–106.8 |
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118.9 |
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164.2 |
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213.5 |
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Segment assets |
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3,342.3 |
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3,724.5 |
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3,925.5 |
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4,095.0 |
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2,319.3 |
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2,428.6 |
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Of which investments in associates |
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83.5 |
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92.6 |
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0.0 |
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0.0 |
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13.3 |
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18.5 |
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949.3 |
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797.3 |
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784.4 |
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728.4 |
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414.0 |
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402.2 | |
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Investments in property, plant and equipment and intangible assets |
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240.7 |
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152.6 |
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146.6 |
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87.5 |
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77.8 |
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94.7 |
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Employees |
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9,510 |
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9,622 |
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10,968 |
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11,364 |
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9,730 |
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10,078 |
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Profilform Division |
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Automotive Division |
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Other | ||||||
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2009/10 |
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2010/11 |
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2009/10 |
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2010/11 |
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2009/10 |
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2010/11 |
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Segment revenue |
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871.3 |
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1,139.3 |
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835.4 |
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1,040.1 |
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88.4 |
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94.7 |
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Of which revenue |
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841.8 |
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1,109.7 |
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833.1 |
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1,037.4 |
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1.7 |
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2.8 |
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Of which revenue with other segments |
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29.5 |
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29.6 |
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2.3 |
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2.7 |
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86.7 |
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91.9 |
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EBITDA |
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83.0 |
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159.5 |
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73.8 |
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121.1 |
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–60.8 |
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–56.3 |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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44.4 |
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41.5 |
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55.9 |
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57.1 |
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6.7 |
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5.8 |
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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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2.7 |
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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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9.3 |
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3.4 |
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0.0 |
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0.0 |
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Profit from operations (EBIT) |
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38.6 |
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118.0 |
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18.0 |
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64.0 |
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–67.7 |
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–62.2 |
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EBIT margin |
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4.4% |
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10.4% |
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2.2% |
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6.2% |
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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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6.0 |
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5.7 |
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Interest and similar income |
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3.8 |
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2.6 |
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2.2 |
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1.4 |
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162.6 |
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128.4 |
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Interest and similar expenses |
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20.0 |
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18.2 |
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10.9 |
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11.6 |
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234.3 |
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218.4 |
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Income tax expense |
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–1.9 |
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–27.5 |
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8.2 |
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–2.4 |
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51.7 |
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33.1 |
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Profit for the period |
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20.5 |
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75.4 |
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16.4 |
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51.5 |
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–233.5 |
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626.8 |
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Segment assets |
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1,000.3 |
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1,083.7 |
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866.7 |
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930.2 |
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8,662.8 |
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9,107.4 |
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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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1.0 |
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2.3 |
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Net financial debt |
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178.0 |
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151.6 |
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283.8 |
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228.6 |
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504.4 |
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449.1 |
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Investments in property, plant and equipment and intangible assets |
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47.6 |
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52.3 |
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22.5 |
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28.0 |
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4.4 |
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5.3 |
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Employees |
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4,014 |
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4,200 |
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4,551 |
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4,789 |
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633 |
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647 |
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Reconciliation |
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Total Group | ||||||
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2009/10 |
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2010/11 |
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2009/10 |
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2010/11 |
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Segment revenue |
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–535.0 |
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–850.0 |
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8,550.0 |
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10,953.7 |
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Of which revenue |
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0.0 |
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0.0 |
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8,550.0 |
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10,953.7 |
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Of which revenue with other segments |
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–535.0 |
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–850.0 |
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0.0 |
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0.0 |
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EBITDA |
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23.7 |
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–24.3 |
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1,004.3 |
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1,605.6 |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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0.1 |
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0.0 |
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652.3 |
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620.8 |
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Of which impairment |
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0.0 |
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0.0 |
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3.1 |
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10.4 |
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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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9.3 |
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3.4 |
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Profit from operations (EBIT) |
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23.7 |
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–24.3 |
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352.0 |
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984.8 |
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EBIT margin |
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4.1 % |
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9.0 % |
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Share of profit of associates |
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0.1 |
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0.8 |
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20.4 |
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30.1 |
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Interest and similar income |
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–123.2 |
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–106.1 |
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67.7 |
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46.4 |
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Interest and similar expenses |
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–124.9 |
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–108.4 |
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279.4 |
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283.5 |
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Income tax expense |
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–3.3 |
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5.2 |
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3.5 |
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–186.4 |
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Profit for the period |
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186.5 |
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–761.5 |
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186.8 |
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594.6 |
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Segment assets |
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–7,822.8 |
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–8,293.0 |
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12,294.1 |
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13,076.4 |
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Of which investments in associates |
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28.7 |
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29.4 |
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126.5 |
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142.8 |
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Net financial debt |
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–76.6 |
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–44.1 |
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3,037.3 |
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2,713.1 |
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Investments in property, plant and equipment and intangible assets |
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0.1 |
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0.0 |
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539.7 |
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420.4 |
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Employees |
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0 |
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0 |
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39,406 |
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40,700 |
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1 Since April 1, 2010, the cash-generating units Precision Strip and Welding Consumables have been managed and reported within the Profilform Division and the Railway Systems Division (previously Special Steel Division). In these consolidated financial statements, the two cash-generating units were therefore allocated to the operating segments Profilform Division (Precision Strip) and Railway Systems Division (Welding Consumables). The previous year’s comparative figures were adjusted accordingly. |
In millions of euros | |||||||||||
The reconciliation of the key ratios EBITDA and EBIT are shown in the following tables:
| (XLS:) Download |
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EBITDA |
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2009/10 |
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2010/11 |
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Net exchange differences incl. result from valuation of derivatives |
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18.3 |
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–3.5 |
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Value adjustments for receivables/waiver of receivables |
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–1.7 |
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–18.5 |
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Consolidation |
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7.2 |
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–1.9 |
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Other |
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–0.1 |
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–0.4 |
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EBITDA – Total reconciliation |
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23.7 |
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–24.3 |
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In millions of euros | ||
| (XLS:) Download |
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EBIT |
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2009/10 |
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2010/11 |
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Net exchange differences incl. result from valuation of derivatives |
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18.3 |
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–3.5 |
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Value adjustments for receivables/waiver of receivables |
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–1.7 |
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–18.5 |
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Consolidation |
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7.2 |
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–1.9 |
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Other |
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–0.1 |
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–0.4 |
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EBIT – Total reconciliation |
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23.7 |
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–24.3 |
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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.
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Austria |
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European Union |
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Other countries | ||||||
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2009/10 |
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2010/11 |
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2009/10 |
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2010/11 |
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2009/10 |
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2010/11 |
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External revenue |
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774.3 |
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1,079.4 |
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5,345.1 |
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6,834.7 |
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2,430.6 |
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3,039.6 |
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Non-current assets |
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4,350.0 |
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4,225.4 |
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1,598.5 |
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1,537.0 |
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544.9 |
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547.6 |
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Investments in property, plant and equipment and intangible assets |
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403.9 |
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271.3 |
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105.7 |
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109.8 |
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30.1 |
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39.3 |
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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 the entity’s revenue.