Glossary

Takeover or purchase of companies or of interests in companies.

Companies that are directly or indirectly under the same management – in this case of voestalpine AG – in which voestalpine AG holds, directly or indirectly, a majority of the voting rights or exercises the controlling influence.

Company takeover, where the buyer purchases individual assets (rather than shares).

“Austrian Traded Index,” the leading index of the Vienna Stock Exchange, which contains the 20 most important stocks in the prime market segment.

An early step in preparing flatrolled steel for use by an end user. A blank is a section of sheet that has the same outer dimensions as a specified part (such as a car door or hood) but that has not yet been stamped.

A towering cylinder lined with heat-resistant (refractory) bricks, used by integrated steel mills to smelt iron from ore. Its name comes from the “blast” of hot air and gases forced up through the iron ore, coke and limestone that load the furnace.

A semi-finished steel form whose rectangular cross-section is more than eight inches. This large cast steel shape is broken down in the mill to produce the familiar rails, I-beams, H-beams and sheet piling. Blooms are also part of the high-quality bar manufacturing process. Reduction of a bloom to a much smaller cross-section can improve the quality of the metal.

Unpainted and untrimmed automotive upper body structures.

Inclusive term for provisions, trade and other payables, and liabilities-side accruals posted on the liabilities side of the statement of financial position.

Ratio of borrowed capital recorded on the statement of financial position to total assets (the higher the ratio, the higher the debt burden).

Total employed interestbearing capital.

• From investment activities: outflow/inflow of liquid assets from investments/disinvestments;
• From operating activities: outflow/inflow of liquid assets not affected by investment, disinvestment, or financing activities.
• From financing activities: outflow/inflow of liquid assets from capital expenditures and capital contributions.

The process of covering steel with another material (tin, chrome, zinc), primarily for corrosion resistance.

Steel sheet that has been wound. A slab, once rolled in a hot-strip mill, can be more than one mile long; coils are the most efficient way to store and transport sheet steel.

The basic fuel consumed in blast furnaces in the smelting of iron. Coke is a processed form of coal.

Changes in the structure and shape of steel at a low temperature (often room temperature). It is used to create a permanent increase in the hardness and strength of the steel.

A method of pouring steel directly from a ladle through a tundish into a mold, shaped to form billets, blooms, or slabs.

International term for responsible corporate management and supervision oriented toward creating long-term added value.

Those assets that are expected to be realized in cash or consumed in the short term, that is, they are not expected to be available for a company’s business opera­tions long-term, for example, inventory, trade accounts receivable, or securities.

Procurement of goods and services using modern electronic media, particularly Internet technology.

Earnings: Profit before the deduction of taxes, equity interests of other shareholders, and financial result.

EBIT percentage of revenue.

EBITDA percentage of revenue.

Profit before the deduction of taxes and equity interests of other shareholders.

Zinc plating process in which the molecules on the positively charged zinc anode attach to the negatively charged sheet steel. The thickness of the zinc coating is readily controlled. By increasing the electric charge or slowing the speed of the steel through the plating area, the coating will thicken.

Economic growth generated from within an existing company or group.

Assets made available to a corporation by the owners through deposits and/or contributions or from retained profits.

Balance sheet equity capital divided by total assets.

Economic growth generated by acquisitions.

The portion of the share capital that is actively traded on the stock exchange.

Steel coated with a thin layer of zinc to provide corrosion resistance in underbody auto parts, garbage cans, storage tanks, or fencing wire. Sheet steel normally must be cold-rolled prior to the galvanizing stage.

Ratio of net financial debt to shareholders’ equity.

Revenue less manufacturing costs.

Steel sheet with a width of up to 200 inches and a thickness of at least 5 millimeters. Mainly used for construction, heavy machinery, ship building, or pipes of big diameters.

See “Welded tubes”

Steel is run through a molten zinc coating bath, followed by an air stream “wipe” that controls the thickness of the zinc finish.

The rolling mill that reduces a hot slab into a coil of specified thickness; the whole processing is done at a relatively high temperature (when the steel is still “red”).

Product that is sold in its “as produced state” off the hot mill with no further reduction or processing steps.

Accounting regulations developed to guarantee comparable balance sheet preparation and disclosure.

A business partnership between two or more companies, which remain independent but which pool capital to pursue a commercial goal, for example, the penetration of a foreign market.

Two or more sheets of steel seam-welded together into a single “blank” which is then stamped into a part. Materials that are both highly malleable and strong can be combined to meet customer requirements.

Market capitalization reflects the current market price of an exchange-listed company.

Incorporates all ex­penditures necessary for the procurement of raw and auxiliary materials required for production.

Interest-bearing liabilities less interest-earning assets.

High-tech composite material made of thin sheet with the highest surface quality and with a colored organic coating. Organic coating offers an even surface, excellent malleability and deep-drawing characteristics due to antifriction effects, high protection against corrosion, high resistance to chemical influences, and good temperature resistance.

Within the scope of the acquisition of a company, the purchase price is allocated to the assets and liabilities of the acquired enterprise, which are then assigned fair values and recognized in the Group’s consolidated financial statements.

An evaluation of the credit quality of a company recognized on international capital markets.

Ferrous (iron-containing) material that generally is remelted and recast into new steel.

Tubes made from a solid billet or bloom, which is heated, then rotated under extreme pressure. This rotational pressure creates an opening in the center of the billet, which is then shaped by a mandrel to form a tube.

Blooms or billets that are hot-rolled in a rolling mill to form, among other shapes, “L”, “U”, “T” or “I” shapes. Sections can also be produced by welding together pieces of flat products. Sections can be used for a wide variety of purposes in the construction, machinery and transport industries. Also known as “profiles.”

The minimum capital requirement to be contributed by the shareholders for shares when establishing a stock corporation or limited partnership; it is issued in shares and constitutes a part of equity.

At any time of the design process each product life stage is appropriately taken into consideration, i.e. by applying the related expert knowledge by means of forecasting, prognosis and simulation either by tools or by involving the human expert directly.

The impurities in a molten pool of iron. Flux such as limestone may be added to foster the congregation of undesired elements into a slag. Because slag is lighter than iron, it will float on top of the pool, where it can be skimmed.

Sections that are tailormade to meet individual requirements of the customer.

Refers to a wide variety of high-quality custom-made tubular products requiring critical tolerances, precise dimensional control and special metallurgical properties. Specialty tubing is used in the manufacture of automotive, construction and agricultural equipment, and in industrial applications such as hydraulic cylinders, machine parts and printing rollers.

The management and control of all materials, funds, and related information in the logistics process from the acquisition of raw materials to the delivery of finished products to the end user.

Products that are metallically or organically coated through different methods, such as hot dip galvanizing, electrical galvanizing, color coating and powder coating. Surface coating helps adapt steel for different end uses and creates more value in the steel product.

Turnout systems and components that meet a wide range of requirements, including high speeds and axle loads, that are used for passengers, freight, heavy haul, commuting, and suburban rail transport.

A section of sheet or strip that is cut to length and trimmed to match specifications for the manufacturer’s stamping design for a particular part. Because excess steel is cut away (to save shipping costs), all that remains for the stamper is to impart the three-dimensional shape with a die press (see “Blanking”).

The degree of fluctuation in stock prices and currency exchange rates or in prices of consumer goods in comparison to the market.

Average capital costs for both borrowed capital and equity.

Rolled plates welded into tubes of various shapes, gages, and diameters from different types of material.

Equity divided by total assets.