D.2. Operating segments
The voestalpine Group has five reportable segments: Steel Division, High Performance Metals Division, Metal Engineering Division, Metal Forming Division, and Holding & Group Services. The reporting system, which is based primarily on the nature of the products provided, reflects the internal financial reporting system, the management structure, and the company’s main sources of risks and rewards.
The Steel Division’s 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 products as well as the downstream Steel & Service Center and Logistics Services. The division is the first point of contact for renowned 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 plates for applications in the energy sector that are used in the most difficult conditions.
The High Performance Metals Division is the global market leader in high alloy tool and high-speed steel. The division holds a leading position in the global special alloys market for the oil and natural gas industry, the aerospace industry, and the energy engineering industry; nickel-base alloys as well as titanium are also utilized. It operates a global network of service centers for customers with a focus on tool manufacturing, offering component processing, heat treatment, and coating services besides warehousing and preprocessing of special steels. In the USA, Germany, Great Britain, China, and Singapore the division offers a broad range of services including logistics, distribution, and processing especially for the oil and natural gas industry. This underscores its position as a technology leader in this field by virtue of the one-stop-shop solutions it provides to its customers.
The Group’s expertise as the world market leader in turnout technology and as the leading provider of high-quality rails and digital monitoring systems as well as services related to rail infrastructure are brought together in the Metal Engineering Division. In addition, this division offers a broad range of high-quality wire rod and drawn wire, premium seamless tubes for special applications as well as high-quality welding consumables and welding machinery. The Metal Engineering Division also possesses its own steel production, which ensures ultra high-quality supplies of pre-materials throughout the division.
The Metal Forming Division is voestalpine’s center of expertise for highly developed special sections; tube and precision strip steel products; pre-finished system components made from pressed, punched, and roll-profiled parts as well as storage system solutions. This combination of expertise in materials and processing, which is unique in the industry, and the division’s global presence make it the first choice for customers who value innovation and quality. These customers include leading manufacturers in the automotive production and supply industries, with a significant focus on the premium segment, as well as numerous companies in the commercial vehicle, construction, storage, energy, and (agricultural) machinery industries.
In addition to the holding company, the business segment “Holding & Group Services” also comprises two holding companies for the U.S. tax group, two financing entities, one raw materials purchasing company, one personal services entity as well as the group-IT companies. These companies were combined because their focus is on providing coordination services and support to the subsidiaries.
Segment revenue, segment expenses, and segment results include transfers between the operating segments. Such transfers are accounted for at transfer prices that correspond to competitive market prices charged to unaffiliated customers for similar products. These transactions are eliminated in the Consolidated Financial Statements.
The voestalpine Group uses earnings before interest and taxes (EBIT) as well as earnings before interest, taxes, depreciation, and amortization (EBITDA) as the key performance indicators (KPIs) to measure segment performance. These key figures are the generally accepted indicators for measuring profitability in the Group.
The key figures for the Group’s operating segments are as follows:
|
|
|
|
Steel Division |
|
High Performance |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
2023/24 |
|
2024/25 |
|
2023/24 |
|
2024/25 |
|
|
|
|
|
|
|
|
|
||||
Segment revenue |
|
6,087.8 |
|
5,799.1 |
|
3,541.7 |
|
3,182.2 |
||||
Of which revenue with third parties |
|
5,569.7 |
|
5,364.3 |
|
3,504.8 |
|
3,160.1 |
||||
Of which revenue with other segments |
|
518.1 |
|
434.8 |
|
36.9 |
|
22.1 |
||||
EBITDA |
|
686.6 |
|
743.8 |
|
185.3 |
|
83.0 |
||||
EBITDA margin |
|
11.3% |
|
12.8% |
|
5.2% |
|
2.6% |
||||
Depreciation and amortization of property, plant and equipment and intangible assets |
|
258.3 |
|
265.0 |
|
433.5 |
|
239.7 |
||||
Of which impairment |
|
0.0 |
|
0.2 |
|
268.0 |
|
86.2 |
||||
Reversal of impairment of property, plant and equipment and intangible assets |
|
|
|
0.0 |
|
0.0 |
|
0.0 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit of entities consolidated according to the equity method |
|
10.1 |
|
2.3 |
|
0.0 |
|
0.0 |
||||
EBIT |
|
428.3 |
|
478.8 |
|
–248.2 |
|
–156.8 |
||||
EBIT margin |
|
7.0% |
|
8.3% |
|
–7.0% |
|
–4.9% |
||||
Interest and similar income and income from other securities and loans |
|
6.9 |
|
7.8 |
|
42.7 |
|
27.5 |
||||
Interest and similar expenses |
|
99.2 |
|
96.7 |
|
147.5 |
|
134.2 |
||||
Income tax expense |
|
–55.1 |
|
–72.8 |
|
–18.1 |
|
16.0 |
||||
Profit after tax from continuing operations |
|
286.4 |
|
321.3 |
|
–370.5 |
|
–247.1 |
||||
Segment assets |
|
5,076.9 |
|
5,241.9 |
|
4,423.0 |
|
4,012.3 |
||||
Of which investments in entities consolidated according to the equity method |
|
230.4 |
|
213.8 |
|
0.0 |
|
0.0 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financial debt |
|
1,345.4 |
|
1,288.6 |
|
1,971.81 |
|
1,866.2 |
||||
Investments in property, plant and equipment and intangible assets |
|
546.4 |
|
535.0 |
|
189.91 |
|
126.1 |
||||
Employees (full-time equivalent) |
|
10,747 |
|
10,675 |
|
13,308 |
|
11,679 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal Engineering Division |
|
Metal Forming Division |
||||||
|
|
|
|
|
|
2023/24 |
|
2024/25 |
|
2023/24 |
|
2024/25 |
|
|
|
|
|
|
|
|
|
||||
Segment revenue |
|
4,315.7 |
|
4,167.9 |
|
3,368.4 |
|
3,125.1 |
||||
Of which revenue with third parties |
|
4,265.8 |
|
4,126.6 |
|
3,324.1 |
|
3,089.1 |
||||
Of which revenue with other segments |
|
49.9 |
|
41.3 |
|
44.3 |
|
36.0 |
||||
EBITDA |
|
606.2 |
|
461.1 |
|
301.0 |
|
169.3 |
||||
EBITDA margin |
|
14.0 % |
|
11.1 % |
|
8.9 % |
|
5.4 % |
||||
Depreciation and amortization of property, plant and equipment and intangible assets |
|
178.5 |
|
187.6 |
|
213.5 |
|
184.5 |
||||
Of which impairment |
|
0.0 |
|
0.0 |
|
69.9 |
|
41.6 |
||||
Reversal of impairment of property, plant and equipment and intangible assets |
|
0.5 |
|
0.0 |
|
0.4 |
|
0.0 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit of entities consolidated according to the equity method |
|
–0.2 |
|
0.7 |
|
0.0 |
|
0.0 |
||||
EBIT |
|
427.7 |
|
273.5 |
|
87.5 |
|
–15.3 |
||||
EBIT margin |
|
9.9 % |
|
6.6 % |
|
2.6 % |
|
–0.5 % |
||||
Interest and similar income and income from other securities and loans |
|
16.1 |
|
13.8 |
|
9.1 |
|
9.6 |
||||
Interest and similar expenses |
|
78.1 |
|
80.6 |
|
63.7 |
|
64.7 |
||||
Income tax expense |
|
–34.7 |
|
–35.2 |
|
–16.7 |
|
25.8 |
||||
Profit after tax from continuing operations |
|
331.2 |
|
171.5 |
|
16.7 |
|
–44.5 |
||||
Segment assets |
|
4,202.7 |
|
4,183.0 |
|
2,593.3 |
|
2,495.7 |
||||
Of which investments in entities consolidated according to the equity method |
|
4.9 |
|
5.4 |
|
0.0 |
|
0.0 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financial debt |
|
933.6 |
|
1,084.4 |
|
879.9 |
|
981.2 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in property, plant and equipment and intangible assets |
|
291.1 |
|
381.9 |
|
188.2 |
|
174.9 |
||||
Employees (full-time equivalent) |
|
14,724 |
|
15,071 |
|
11,571 |
|
10,899 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Holding & Group Services |
|
Reconciliation |
|
Total Group |
||||||
|
|
2023/24 |
|
2024/25 |
|
2023/24 |
|
2024/25 |
|
2023/24 |
|
2024/25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
1,056.2 |
|
1,012.4 |
|
–1,685.5 |
|
–1,543.0 |
|
16,684.3 |
|
15,743.7 |
Of which revenue with third parties |
|
19.9 |
|
3.6 |
|
0.0 |
|
0.0 |
|
16,684.3 |
|
15,743.7 |
Of which revenue with other segments |
|
1,036.3 |
|
1,008.8 |
|
–1,685.5 |
|
–1,543.0 |
|
0.0 |
|
0.0 |
EBITDA |
|
–111.3 |
|
–111.7 |
|
–1.7 |
|
0.9 |
|
1,666.1 |
|
1,346.4 |
EBITDA margin |
|
|
|
|
|
|
|
|
|
10.0% |
|
8.6% |
Depreciation and amortization of property, plant and equipment and intangible assets |
|
13.0 |
|
14.6 |
|
0.0 |
|
0.0 |
|
1,096.8 |
|
891.4 |
Of which impairment |
|
0.0 |
|
0.0 |
|
0.0 |
|
0.0 |
|
337.9 |
|
128.0 |
Reversal of impairment of property, plant and equipment and intangible assets |
|
0.0 |
|
0.0 |
|
0.0 |
|
0.0 |
|
0.9 |
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit of entities consolidated according to the equity method |
|
0.0 |
|
0.0 |
|
2.8 |
|
2.9 |
|
12.7 |
|
5.9 |
EBIT |
|
–124.3 |
|
–126.0 |
|
–1.7 |
|
0.9 |
|
569.3 |
|
455.1 |
EBIT margin |
|
|
|
|
|
|
|
|
|
3.4% |
|
2.9% |
Interest and similar income and income from other securities and loans |
|
377.8 |
|
379.4 |
|
–384.7 |
|
–388.7 |
|
67.9 |
|
49.4 |
Interest and similar expenses |
|
277.6 |
|
254.5 |
|
–385.0 |
|
–390.6 |
|
281.1 |
|
240.1 |
Income tax expense |
|
–44.2 |
|
–25.7 |
|
1.0 |
|
0.0 |
|
–167.8 |
|
–91.9 |
Profit after tax from continuing operations |
|
–186.6 |
|
293.9 |
|
138.4 |
|
–316.5 |
|
215.6 |
|
178.6 |
Segment assets |
|
11,169.0 |
|
10,918.3 |
|
–10,907.5 |
|
–11,116.9 |
|
16,557.4 |
|
15,734.3 |
Of which investments in entities consolidated according to the equity method |
|
0.0 |
|
0.0 |
|
33.2 |
|
35.5 |
|
268.5 |
|
254.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financial debt |
|
–3,479.7 |
|
–3,570.7 |
|
–0.2 |
|
0.3 |
|
1,650.81 |
|
1,650.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in property, plant and equipment and intangible assets |
|
17.4 |
|
25.2 |
|
0.0 |
|
0.0 |
|
1,233.01 |
|
1,243.1 |
Employees (full-time equivalent) |
|
1,239 |
|
1,335 |
|
0 |
|
0 |
|
51,589 |
|
49,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
In millions of euros |
||||||||||||
The reconciliation of the key performance indicators, EBITDA and EBIT, is shown in the following tables:
|
|
2023/24 |
|
2024/25 |
|---|---|---|---|---|
|
|
|
|
|
Net exchange differences and result from valuation of derivatives |
|
–1.1 |
|
–3.7 |
Consolidation |
|
–0.6 |
|
4.6 |
EBITDA – Total reconciliation |
|
–1.7 |
|
0.9 |
|
|
|
|
|
In millions of euros |
||||
|
|
2023/24 |
|
2024/25 |
|---|---|---|---|---|
|
|
|
|
|
Net exchange differences and result from valuation of derivatives |
|
–1.1 |
|
–3.7 |
Consolidation |
|
–0.6 |
|
4.6 |
EBIT – Total reconciliation |
|
–1.7 |
|
0.9 |
|
|
|
|
|
In millions of euros |
||||
All other key performance indicators reflect only the effects of consolidation.
Geographical information
The following table provides select financial information summarized according to the major geographical areas. External segment revenue is broken down by the customers’ geographical location.
Long-term assets and investments are reported based on the entities’ geographical location.
|
|
Austria |
|
European Union |
|
Other Countries |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
2023/24 |
|
2024/25 |
|
2023/24 |
|
2024/25 |
|
2023/24 |
|
2024/25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue |
|
1,222.9 |
|
1,083.2 |
|
9,322.5 |
|
8,969.3 |
|
6,138.9 |
|
5,691.2 |
Long-term assets |
|
5,315.4 |
|
5,534.7 |
|
1,381.0 |
|
1,424.6 |
|
957.8 |
|
971.2 |
Investments in property, plant and equipment and intangible assets |
|
879.3 |
|
845.8 |
|
215.9 |
|
236.7 |
|
137.8 |
|
160.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions of euros |
||||||||||||
The voestalpine Group does not record revenue from transactions with a single external customer that amounts to 10% or more of the entity’s revenue.