The voestalpine Group operates in five reportable segments: Steel Division, High Performance Metals Division, Metal Engineering Division, Metal Forming Division, and Other. The reporting system, which is based primarily on the nature of the products provided, reflects the internal financial reporting, the organization’s management structure, and the Company’s main sources of risks and rewards.
The Steel Division of the voestalpine Group is the global leader in quality for highest quality strip steel and a global market leader for both heavy plate used in the most sophisticated applications and casings for large turbines. Its activities include the production of sophisticated hot and cold-rolled strip steel as well as electrogalvanized, hot-dip galvanized, and organically coated strip steel. This is augmented by electrical steel strip, heavy plate and foundry activities as well as the downstream areas, Steel & Service Center and Logistics Services. The division operates the world’s most modern direct reduction plant in Corpus Christi, Texas, USA, which manufactures highest quality pre-materials (HBI) for both own and third-party steel production. The Steel Division is the first point of contact for important automotive manufacturers and suppliers with respect to strategic product development and supports its customers globally. Moreover, it also is a key partner of the European white goods and mechanical engineering industries. The Steel Division produces heavy plate for the energy sector (which is used in the oil and natural gas industry as well as in connection with renewable energies) and for applications under extreme conditions (for example, deep-sea pipelines or in the world’s permafrost regions).
The High Performance Metals Division is the global market leader in the tool steel and high-speed steel sector. In the segment of special alloys for the oil and natural gas industries, the aerospace industry, and the energy engineering industry, the High Performance Metals Division holds a leading position on the global market. The division has a global network of service centers with a focus on tool manufacturing, offering heat treatment and coating services as well as warehousing and preprocessing of special steels. In Houston, Texas, USA, Singapore, and Birmingham, Great Britain, the division offers a broad spectrum of services including logistics, distribution, and processing, especially for the oil and natural gas industries. Its position as a technology leader in this field is highlighted by the one-stop-shop solutions it offers customers. Additive manufacturing, a business segment that will be hugely important in the future, with facilities in Düsseldorf, Germany, Toronto, Canada and Singapore is being established along its entire value chain, from powders to the finished “printed” part.
The Metal Engineering Division is the global market leader in turnout technology, the European market leader in rails and specially treated wire, and has a leading position in seamless tubes for special applications and high-quality welding consumables. The division manufactures the world’s widest range of high-quality rails and turnout products, high-quality rod wire, drawn wire, premium seamless tubes, and welding filler materials. Furthermore, the division offers an extensive range of services in the railway systems sector. Moreover, the Metal Engineering Division has access to its own steel production.
The Metal Forming Division is the expertise center at voestalpine for highly developed special sections, tube products, and precision strip steel as well as pre-finished system components made from pressed, punched, and roll-profiled parts. This combination of expertise in materials and processing is unique in the industry, and with its global presence, the division is the first choice for customers who value innovation and quality. These customers include nearly all leading manufacturers in the automotive manufacture and supply industry, with a significant focus on the premium segment, as well as several companies in the commercial vehicle, construction, storage, energy, and (agricultural) equipment industries.
The holding company, several Group financing and raw materials purchasing companies as well as one personal services company and the group-IT companies are included in the segment Other. These companies are combined in this segment because their focus is on providing coordination services and assistance to the subsidiaries.
Segment revenue, segment expenses, and segment results include transfers between operating segments. Such transfers are accounted for at competitive market prices charged to unaffiliated customers for similar products. These transactions have been eliminated in the Consolidated Financial Statements.
The voestalpine Group uses EBIT as the key figure to measure the performance of the segments. In the voestalpine Group, this figure is a widely accepted indicator for measuring profitability.
The operating segments of the Group are as follows:
Operating segments |
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Steel Division |
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High Performance Metals Division |
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2016/17 |
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2017/18 |
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2016/17 |
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2017/18 |
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Segment revenue |
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3,912.4 |
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4,772.7 |
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2,697.9 |
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2,918.0 |
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Of which revenue with third parties |
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3,599.5 |
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4,368.9 |
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2,641.7 |
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2,860.5 |
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Of which revenue with other segments |
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312.9 |
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403.8 |
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56.2 |
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57.5 |
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EBITDA |
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563.9 |
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908.2 |
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395.2 |
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453.9 |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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300.6 |
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315.3 |
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142.5 |
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156.3 |
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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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10.1 |
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Reversal of impairment of property, plant and equipment and intangible assets |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
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Share of profit of entities consolidated according to the equity method |
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12.7 |
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11.7 |
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0.0 |
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0.0 |
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EBIT |
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263.2 |
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592.9 |
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252.7 |
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297.6 |
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EBIT margin |
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6.7% |
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12.4% |
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9.4% |
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10.2% |
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Interest and similar income |
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8.8 |
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1.0 |
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13.5 |
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12.7 |
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Interest and similar expenses |
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54.1 |
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60.8 |
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69.2 |
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66.1 |
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Income tax expense |
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–33.2 |
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–124.8 |
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–65.9 |
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–65.6 |
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Profit after tax |
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187.5 |
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410.1 |
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132.8 |
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178.2 |
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Segment assets |
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5,255.3 |
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5,292.3 |
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4,087.2 |
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4,128.4 |
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Of which investments in entities consolidated according to the equity method |
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93.9 |
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96.8 |
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0.0 |
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0.0 |
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Net financial debt |
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1,926.8 |
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1,623.5 |
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914.0 |
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1,002.7 |
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Investments in property, plant and equipment and intangible assets |
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404.2 |
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229.5 |
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179.5 |
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226.4 |
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Employees (full-time equivalent) |
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10,898 |
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11,020 |
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13,733 |
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14,274 |
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Metal Engineering Division |
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Metal Forming Division |
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2016/17 |
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2017/18 |
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2016/17 |
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2017/18 |
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Segment revenue |
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2,684.6 |
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2,989.7 |
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2,426.1 |
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2,743.4 |
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Of which revenue with third parties |
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2,648.8 |
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2,947.1 |
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2,386.4 |
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2,705.5 |
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Of which revenue with other segments |
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35.8 |
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42.6 |
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39.7 |
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37.9 |
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EBITDA |
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360.8 |
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372.0 |
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317.0 |
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325.2 |
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Depreciation and amortization of property, plant and equipment and intangible assets |
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160.0 |
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181.0 |
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106.3 |
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112.4 |
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Of which impairment |
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5.0 |
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15.6 |
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0.1 |
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0.0 |
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Reversal of impairment of property, plant and equipment and intangible assets |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
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Share of profit of entities consolidated according to the equity method |
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0.2 |
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0.4 |
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0.0 |
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0.0 |
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EBIT |
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200.8 |
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191.0 |
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210.7 |
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212.8 |
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EBIT margin |
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7.5% |
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6.4% |
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8.7% |
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7.8% |
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Interest and similar income |
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2.7 |
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2.4 |
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2.2 |
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1.5 |
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Interest and similar expenses |
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39.8 |
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40.0 |
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28.0 |
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31.7 |
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Income tax expense |
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–47.9 |
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–40.1 |
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–48.3 |
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–41.4 |
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Profit after tax |
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117.4 |
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114.3 |
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136.6 |
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141.1 |
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Segment assets |
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3,260.5 |
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3,357.9 |
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2,236.3 |
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2,442.8 |
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Of which investments in entities consolidated according to the equity method |
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5.1 |
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5.2 |
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0.0 |
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0.0 |
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Net financial debt |
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838.2 |
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972.0 |
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556.3 |
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757.9 |
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Investments in property, plant and equipment and intangible assets |
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211.0 |
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207.5 |
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205.1 |
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218.6 |
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Employees (full-time equivalent) |
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13,157 |
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13,481 |
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11,073 |
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12,003 |
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Other |
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Reconciliation |
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Total Group |
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2016/17 |
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2017/18 |
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2016/17 |
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2017/18 |
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2016/17 |
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2017/18 |
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Segment revenue |
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1,395.0 |
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1,629.4 |
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–1,821.5 |
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–2,155.4 |
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11,294.5 |
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12,897.8 |
Of which revenue with third parties |
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18.1 |
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15.8 |
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0.0 |
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0.0 |
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11,294.5 |
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12,897.8 |
Of which revenue with other segments |
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1,376.9 |
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1,613.6 |
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–1,821.5 |
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–2,155.4 |
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0.0 |
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0.0 |
EBITDA |
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–89.3 |
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–102.5 |
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–6.9 |
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–2.7 |
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1,540.7 |
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1,954.1 |
Depreciation and amortization of property, plant and equipment and intangible assets |
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8.0 |
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9.1 |
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0.0 |
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0.0 |
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717.4 |
|
774.1 |
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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5.1 |
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25.7 |
Reversal of impairment of property, plant and equipment and intangible assets |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
Share of profit of entities consolidated according to the equity method |
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0.7 |
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1.6 |
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1.0 |
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1.5 |
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14.6 |
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15.2 |
EBIT |
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–97.2 |
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–111.6 |
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–6.9 |
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–2.7 |
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823.3 |
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1,180.0 |
EBIT margin |
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7.3% |
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9.1% |
Interest and similar income |
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147.7 |
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170.5 |
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–147.3 |
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–165.8 |
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27.6 |
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22.3 |
Interest and similar expenses |
|
130.2 |
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148.7 |
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–150.6 |
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–169.9 |
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170.7 |
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177.4 |
Income tax expense |
|
21.3 |
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47.3 |
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1.1 |
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0.0 |
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–172.9 |
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–224.6 |
Profit after tax |
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523.0 |
|
798.2 |
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–570.3 |
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–824.0 |
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527.0 |
|
817.9 |
Segment assets |
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10,984.2 |
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11,656.5 |
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–11,116.0 |
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–11,422.9 |
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14,707.5 |
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15,455.0 |
Of which investments in entities consolidated according to the equity method |
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6.7 |
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8.0 |
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7.3 |
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8.5 |
|
113.0 |
|
118.5 |
Net financial debt |
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–1,038.4 |
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–1,396.7 |
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24.2 |
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35.7 |
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3,221.1 |
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2,995.1 |
Investments in property, plant and equipment and intangible assets |
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7.7 |
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13.1 |
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–0.1 |
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0.0 |
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1,007.4 |
|
895.1 |
Employees (full-time equivalent) |
|
842 |
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843 |
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0 |
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0 |
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49,703 |
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51,621 |
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In millions of euros |
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The reconciliation of the key figures EBITDA and EBIT are shown in the following tables:
EBITDA |
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2016/17 |
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2017/18 |
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Net exchange differences and result from valuation of derivatives |
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–2.2 |
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–3.2 |
Consolidation |
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–4.7 |
|
0.5 |
EBITDA – Total reconciliation |
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–6.9 |
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–2.7 |
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In millions of euros |
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EBIT |
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|
2016/17 |
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2017/18 |
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Net exchange differences and result from valuation of derivatives |
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–2.2 |
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–3.2 |
Consolidation |
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–4.7 |
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0.5 |
EBIT – Total reconciliation |
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–6.9 |
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–2.7 |
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In millions of euros |
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All other key figures contain solely the effects of consolidation.
Geographical information
The following table provides selected financial information summarized according to the major geographical areas. External revenue is allocated to the customers’ geographical location. Non-current assets and investments are reported based on the geographical location of the companies.
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Austria |
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European Union |
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Other countries |
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2016/17 |
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2017/18 |
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2016/17 |
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2017/18 |
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2016/17 |
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2017/18 |
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External revenue |
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813.5 |
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900.9 |
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7,036.8 |
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7,659.9 |
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3,444.2 |
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4,337.0 |
Non-current assets |
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5,123.6 |
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5,126.4 |
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1,613.6 |
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1,664.8 |
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1,702.0 |
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1,537.7 |
Investments in property, plant and equipment and intangible assets |
|
522.7 |
|
492.4 |
|
188.5 |
|
209.4 |
|
296.2 |
|
193.3 |
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In millions of euros |
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The voestalpine Group does not record any revenue from transactions with a single external customer amounting to 10% or more of the entity’s revenue.
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