Voestalpine (VOE) CMD 2025 Presentation summary

Strategic direction and business model

• Focus on high-tech industries with high entry barriers, leveraging a diversified business model across segments, products, and regions for resilience and growth.

• Four-division structure enables tailored management and flexibility, combining steel/metals production with processing and engineering expertise.

• Consistent strategy since IPO, emphasizing differentiation, innovation, and global expansion, with a strong track record of value creation.

• Commitment to maintaining an investment-grade credit profile and optimizing capital structure to support growth and decarbonization.

• Capital allocation policy prioritizes ROCE >12%, EBITDA margin 14%, and a 30% payout ratio with a minimum dividend of €0.40 per share.

Financial performance and guidance

• FY 2024/25 revenue projected at €15.7bn, EBITDA at €1.3bn, and EBIT at €455m, with Q1 2025/26 turnover of €3.9bn and free cash flow of €188m.

• EBITDA guidance for 2025/26 confirmed at €1.4–1.55bn, with a strong balance sheet (equity €7.5bn, net debt/EBITDA 1.1x, gearing 19%).

• Over three decades, revenue grew from €3.1bn to €15.7bn, with steady EBITDA and free cash flow increases.

• Working capital and maintenance CAPEX optimization have maximized investable cash flow.

Decarbonization and sustainability

• Step-by-step decarbonization: transition from 5 blast furnaces to 4 EAFs and breakthrough technologies by 2050.

• By 2027, 52% of business will be decarbonized, targeting 80% by 2035 and 100% net zero by 2050.

• €1.5bn investment to replace two blast furnaces with EAFs, with further decisions on additional EAFs in the next 2–3 years.

• Decarbonization strategy balances profitability, cash flow, and technology adoption.