The voestalpine Group operates in six reportable segments: Steel Division, Special Steel Division, Metal Engineering Division (until March 31, 2012 Railway Systems Division), Profilform Division, Automotive 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 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 Division is a global market leader in tool steel. Furthermore, it has a leading position in the high-speed steel and the special forging segments. The Special Steel 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 Metal Engineering Division manufactures the world’s widest range of high-quality rails and turnout products, rod wire, drawn wire, prestressing steel, seamless tubes, welding filler materials, and semi-finished products. voestalpine is global technology leader in the railway systems sector. 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 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-rollforming segments as well as a leader in precision strip steel. It focuses on supplying the construction and automotive supply 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 European player for special components in the automotive supply industry.
Starting April 1, 2012, the Automotive Division and Profilform Division will be amalgamated to create the Metal Forming Division.
The holding company, several Group financing companies and raw materials purchasing companies as well as the group-IT companies are included in 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 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 as follows:
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Operating segments |
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Steel |
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Special Steel Division |
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Metal Engineering Division | ||||||
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2010/11 |
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2011/12 |
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2010/11 |
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2011/12 |
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2010/11 |
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2011/12 |
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Segment revenue |
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3,839.3 |
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4,130.3 |
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2,631.3 |
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2,945.0 |
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2,723.3 |
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2,955.6 |
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Of which revenue with third parties |
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3,545.7 |
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3,815.4 |
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2,567.0 |
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2,875.9 |
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2,688.3 |
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2,919.4 |
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Of which revenue with other segments |
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293.6 |
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314.9 |
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64.3 |
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69.1 |
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35.0 |
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36.2 |
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594.7 |
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456.9 |
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388.1 |
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429.7 |
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422.4 |
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210.3 | |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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223.2 |
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230.4 |
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179.6 |
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156.8 |
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113.5 |
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113.3 |
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Of which impairment |
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0.0 |
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0.0 |
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7.7 |
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0.6 |
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0.0 |
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0.1 |
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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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0.3 |
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0.0 |
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1.9 |
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Profit from operations (EBIT) |
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371.5 |
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226.5 |
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208.5 |
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272.9 |
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308.9 |
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96.9 |
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9.7% |
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5.5% |
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7.9% |
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9.3% |
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11.3% |
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3.3% | |
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Share of profit of associates |
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15.9 |
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14.8 |
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0.0 |
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0.0 |
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7.7 |
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–0.2 |
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Interest and similar income |
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1.9 |
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1.7 |
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14.3 |
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18.2 |
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3.9 |
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47.0 |
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Interest and similar expenses |
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57.9 |
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67.7 |
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53.1 |
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57.2 |
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32.4 |
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37.3 |
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Income tax expense |
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–67.7 |
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–26.7 |
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–52.5 |
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–74.2 |
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–74.5 |
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–13.2 |
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Profit for the period |
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270.0 |
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154.1 |
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118.9 |
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156.9 |
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213.5 |
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94.9 |
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Segment assets |
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3,610.3 |
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3,652.0 |
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4,095.0 |
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4,007.9 |
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2,428.6 |
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2,552.1 |
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Of which investments in associates |
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92.6 |
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99.3 |
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0.0 |
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0.0 |
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18.5 |
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16.7 |
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802.5 |
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1,026.4 |
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728.4 |
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647.6 |
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402.2 |
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432.3 | |
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Investments in property, plant and equipment and intangible assets |
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152.6 |
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196.9 |
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87.5 |
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128.1 |
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94.7 |
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129.1 |
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Employees (excl. temporary personnel and apprentices) |
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9,605 |
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9,683 |
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11,364 |
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11,524 |
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10,078 |
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10,446 |
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Profilform Division |
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Automotive Division |
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Other | ||||||
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2010/11 |
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2011/12 |
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2010/11 |
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2011/12 |
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2010/11 |
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2011/12 |
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Segment revenue |
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1,139.3 |
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1,251.5 |
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1,040.1 |
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1,224.6 |
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1,586.6 |
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1,869.4 |
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Of which revenue with third parties |
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1,109.7 |
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1,220.5 |
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1,037.4 |
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1,221.4 |
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5.6 |
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5.6 |
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Of which revenue with other segments |
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29.6 |
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31.0 |
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2.7 |
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3.2 |
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1,581.0 |
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1,863.8 |
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EBITDA |
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159.5 |
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167.0 |
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121.1 |
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109.2 |
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–55.9 |
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–68.7 |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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41.5 |
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40.3 |
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57.1 |
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50.7 |
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5.9 |
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6.2 |
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Of which impairment |
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0.0 |
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0.0 |
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2.7 |
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0.3 |
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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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3.4 |
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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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118.0 |
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126.6 |
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64.0 |
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58.5 |
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–61.8 |
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–74.8 |
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EBIT margin |
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10.4% |
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10.1% |
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6.2% |
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4.8% |
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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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5.7 |
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4.7 |
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Interest and similar income |
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2.6 |
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1.3 |
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1.4 |
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1.2 |
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128.6 |
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169.9 |
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Interest and similar expenses |
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18.2 |
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17.7 |
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11.6 |
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14.2 |
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218.8 |
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291.8 |
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Income tax expense |
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–27.5 |
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–30.4 |
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–2.4 |
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–12.6 |
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33.0 |
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70.3 |
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Profit for the period |
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75.4 |
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79.6 |
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51.5 |
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33.6 |
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626.9 |
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929.1 |
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Segment assets |
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1,083.7 |
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1,116.0 |
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930.2 |
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905.4 |
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9,554.8 |
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9,621.1 |
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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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2.3 |
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3.1 |
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Net financial debt |
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151.6 |
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171.7 |
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228.6 |
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244.4 |
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443.9 |
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117.9 |
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Investments in property, plant and equipment and intangible assets |
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52.3 |
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55.4 |
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28.0 |
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54.4 |
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5.3 |
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8.8 |
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Employees (excl. temporary personnel and apprentices) |
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4,200 |
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4,205 |
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4,789 |
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5,117 |
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664 |
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674 |
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Reconciliation |
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Total Group | ||||||
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2010/11 |
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2011/12 |
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2010/11 |
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2011/12 |
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Segment revenue |
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–2,006.2 |
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–2,318.2 |
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10,953.7 |
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12,058.2 |
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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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10,953.7 |
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12,058.2 |
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Of which revenue with other segments |
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–2,006.2 |
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–2,318.2 |
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0.0 |
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0.0 |
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EBITDA |
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–24.3 |
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–2.5 |
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1,605.6 |
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1,301.9 |
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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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620.8 |
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597.7 |
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Of which impairment |
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0.0 |
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0.0 |
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10.4 |
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1.0 |
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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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3.4 |
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2.2 |
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Profit from operations (EBIT) |
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–24.3 |
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–2.4 |
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984.8 |
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704.2 |
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EBIT margin |
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9.0% |
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5.8% |
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Share of profit of associates |
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0.8 |
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0.8 |
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30.1 |
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20.1 |
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Interest and similar income |
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–106.3 |
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–174.6 |
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46.4 |
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64.7 |
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Interest and similar expenses |
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–108.5 |
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–191.6 |
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283.5 |
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294.3 |
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Income tax expense |
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5.2 |
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–4.3 |
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–186.4 |
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–91.1 |
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Profit for the period |
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–761.6 |
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–1,034.9 |
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594.6 |
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413.3 |
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Segment assets |
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–8,626.2 |
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–9,242.4 |
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13,076.4 |
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12,612.1 |
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Of which investments in associates |
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29.4 |
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30.3 |
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142.8 |
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149.4 |
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Net financial debt |
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–44.1 |
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–54.6 |
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2,713.1 |
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2,585.7 |
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Investments in property, plant and equipment and intangible assets |
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0.0 |
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0.0 |
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420.4 |
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572.7 |
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Employees (excl. temporary personnel and apprentices) |
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0 |
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0 |
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40,700 |
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41,649 |
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1 Since April 1, 2011, the two subsidiaries voestalpine Rohstoffbeschaffungs GmbH and Importkohle Gesellschaft m.b.H are no longer being managed and reported within the Steel Division. In these consolidated financial statements, the two entities were allocated to the operating segment Other. The preceding year’s comparative figures were adjusted accordingly. |
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In millions of euros | ||||||||||
The reconciliation of the key ratios EBITDA and EBIT are shown in the following tables:
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2010/11 |
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2011/12 | |
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Net exchange differences incl. result from valuation of derivatives |
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–3.5 |
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–0.9 |
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Value adjustments for receivables/waiver of receivables |
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–18.5 |
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–1.7 |
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Consolidation |
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–1.9 |
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0.8 |
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Other |
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–0.4 |
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–0.7 |
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EBITDA – Total reconciliation |
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–24.3 |
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–2.5 |
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In millions of euros | ||
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EBIT |
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2010/11 |
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2011/12 |
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Net exchange differences incl. result from valuation of derivatives |
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–3.5 |
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–0.9 |
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Value adjustments for receivables/waiver of receivables |
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–18.5 |
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–1.7 |
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Consolidation |
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–1.9 |
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0.8 |
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Other |
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–0.4 |
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–0.6 |
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EBIT – Total reconciliation |
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–24.3 |
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–2.4 |
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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.
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Austria |
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European Union |
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Other countries | ||||||
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2010/11 |
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2011/12 |
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2010/11 |
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2011/12 |
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2010/11 |
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2011/12 |
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External revenue |
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1,079.4 |
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1,213.4 |
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6,834.7 |
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7,482.2 |
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3,039.6 |
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3,362.6 |
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Non-current assets |
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4,225.4 |
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4,174.3 |
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1,537.0 |
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1,537.7 |
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547.6 |
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556.7 |
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Investments in property, plant and equipment and intangible assets |
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271.3 |
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363.6 |
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109.8 |
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143.9 |
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39.3 |
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65.2 |
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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.
