Q1 2027 voestalpine AG Earnings Call

August 5, 2026

Speaker #1: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone.

Speaker #1: For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Dino Malkic, Head of IR.

Speaker #1: Please go ahead, sir.

Speaker #2: Thank you very much. Good afternoon. Good morning to everyone. Welcome to our results presentation for the first quarter of the business year 2026/27. With me today are Mr. Eibensteiner, our CEO, and Mr. Mayer, our CFO.

Dino Malkic: Thank you very much. Good afternoon. Good morning to everyone. Welcome to our result presentation of the Q1 of this business year 2026/27. With me today is Mr. Eibensteiner, our CEO, and Mr. Mayer, our CFO. They will give you a brief overview of the results, and they will also give you an outlook for the upcoming business year. Afterwards, we will be happy to answer your questions. I'm passing over to you, Mr. Eibensteiner.

Speaker #2: They will give you a brief overview of the results, and they will also give you an outlook for the upcoming business year. Afterwards, we will be happy to answer your questions.

Speaker #2: I'm passing over to you, Mr. Eibensteiner.

Speaker #3: Thank you. Thank you very much, ladies and gentlemen. Good afternoon. From our side, just let me jump into the presentation, and I want to begin with the highlights of this first quarter.

Herbert Eibensteiner: Thank you very much. Ladies and gentlemen, good afternoon from our side. Let me jump into the presentation, and I want to begin with the highlights of this Q1. We have achieved some solid earnings and free cash flow in a very difficult environment. We always think that we were supported by our robust strategy. In this environment, I think it's obvious that we do some reorganization and portfolio optimization, and this very disciplined. We are on budget and on time with that, but not finally finished now. The portfolio optimization led to a completion of the sale of voestalpine BÖHLER Profil. Gerald, we will elaborate on that a bit later. How was the market? Strong. Very strong was railway systems, aerospace, and also Warehouse and Rack Solutions.

Speaker #3: We have achieved solid earnings and free cash flow in a very difficult environment, and we always think that we were supported by our robust strategy in this environment.

Speaker #3: I think it's obvious that we do some reorganization and portfolio optimization, and this is very disciplined. We are on budget and on time with that, but not finally finished now.

Speaker #3: And the portfolio optimization led to the completion of the sale of Böhler Profil by Gerald. We will elaborate on that a bit later. As for the market, it was strong—very strong—for railway systems, aerospace, and also warehouse and rack solutions.

Speaker #3: And when you look at the other markets, construction, mechanical engineering, and consumer goods, remain, stable but on a on a on a lower, on a lower level.

Herbert Eibensteiner: When you look at the other markets, construction, mechanical engineering, and consumer goods remain stable, but on a lower level. We have mixed development in the automotive industry. Very positive for flat steel deliveries, difficult for automotive body parts in Metal Forming. When you look at our employee figure, which is year-on-year, more than 900 less employees. This is the result of this ongoing reorganization work. When you look at our greentec steel projects, they are on time, on budget, and we will come later on to this topic. This ramp-up of the first step will start in the H1 of 2027. How have our markets performed? When you look to Europe, it's our most important market. Relatively weak economic momentum, but with the latest trade policy opportunities, I think we can see the tailwind of those activities.

Speaker #3: And, we have mixed development in the automotive industry, very positive, for flat steel deliveries, difficult for automotive body parts, in metal forming. And when you look at our employee figure, which is, year on year, more than 900 less, less, employees.

Speaker #3: And this is the result of this ongoing reorganization work. And when you look at our green textile projects, they are on time, on budget, and—we will come later on to this topic—but this ramp-up of the first step will start in the first half of 2027.

Speaker #3: When how was our how how have our markets, performed when you look your at, at to Europe? It's our, most important, market, relatively, weak economic momentum, and, but with the latest trade policy, opportunities, I think we can, we can see the, the, the tailwind of those, activities.

Speaker #3: You know, it's the CPAM safeguard, which is positive for the steel industry. North America is very solid, very robust in economic development, and it's driven by private consumption, as well as by the high investment in digitalization and artificial intelligence activities.

Herbert Eibensteiner: It's CBAM safeguard, which is positive for the steel industry. North America is very solid, very robust economic development. It's driven by private consumption and because of the high investment in digitalization in artificial intelligence activities as a key driver. When you look to China, relatively positive economic performance, more driven by exports, and domestic demand is relatively low. When you look to South America, Brazil is our most important market. Moderate economic development, also affected by US tariffs and increased Chinese imports affecting the market there. We see now some reaction when it comes to countermeasures, with new tariffs, in particular in Brazil. When I talk about strategy, we have selected a few examples to show you what our local for local strategy is, how this is working. When you look at the left-hand side, we have just started a truck frame production in the US.

Speaker #3: as a key driver, when you look to China, relative positive economic performance, more driven by, by exports, and, domestic, domestic demand, is, relatively, low.

Speaker #3: And when you looked at South America, Brazil—so our most important market—moderate economic development, also affected by U.S. tariffs and increased Chinese imports.

Speaker #3: affecting, the market there. Also, we see now some reaction when it comes to countermeasures, with, new tariffs, in particular to in Brazil. when I I talk about, strategy, we have selected, a few example to show you what our, local for local strategy, is, is, how this is, is working.

Speaker #3: When you look at the, left-hand side, when it's, we have, just, just started, a, a truck, a truck frame, production, in the US, normally was that is that a European business, for local, truck supplier.

Herbert Eibensteiner: Normally, that is a European business for local truck supplier. A couple of them are also producing in the US. The strategy point was, we follow our customers into the US for local production. This was necessary. For that, we have secured a long-term contract for this. We serve the market. As you see there, it's a EUR 70 million investment for a very long-term contract. When I look at the right-hand side, in railway systems, how does that work? We have got this Rail Baltica contract. Very positive was that we can manufacture and deliver switches in Lithuania and in Latvia, which was very positive to show also the local content for that contract. This contract will keep us busy through 2030. Another example in railway. Railway market in Canada was disrupted by the US tariffs.

Speaker #3: couple of the of, of them, also, producing in the US, so strategy point was we follow our customers, into the, US. for local production, that was, this was necessary and for that we have secured a long-term contract for this and will serve the market and, as you see there, it's, 70 million, 70 million euro investment for a long-term, for a very long-term, contracts.

Speaker #3: And when you look at the right-hand side, this, in railway, in railway systems, how does that work? So we have, got this Rail Baltica contract and, very positive was that we can, manufacture and deliver, switches to, in Lithuania and in, in Latvia, which was very positive.

Speaker #3: to show also, the local content, for that, contract and these contract will keep us busy, through, 2030. And, also another example, in, in, in, in railway.

Speaker #3: So, the railway market in Canada was disrupted by the US tariffs. Shipments from the US no longer make sense, and we were asked by Canadian railway companies, so we have relocated part of our US production to Canada.

Herbert Eibensteiner: Shipments from the US no longer make sense. We were asked by Canadian railway companies. We have relocated a part of our US production to Canada. That's the reason why we secured or got a very long-term contract with Canadian National Railway, a 10-year contract, which is very nice for us. This is how we think in that context to increase the local for local production in particular sectors of our strategic portfolio. Now let me come to greentec steel. Again, our plan. First, I should start that our greentec steel project is on time, on budget. We will start in 2027 with the ramp-up of one electric arc furnace each in Linz and then Donawitz in the H1 of 2027. After ramp-up, we will then shut down 2 blast furnaces out of 5 until 2029.

Speaker #3: And that's we, that's the reason why we secured or got the very long-term contract, with, Canadian national, 10 years contract, which is very nice, for, for us.

Speaker #3: And this is how we think in that, in that context, to increase the local for local production, in, particular, sectors of our strategic portfolio.

Speaker #3: Now let me come to, to green textile again. again, our, our plan, it's, I think first I should start that our green textile project is, on time, on time, on time on budget.

Speaker #3: And, we, we will start in 2027, with the ramp-up of, one electric, furnace each in Linz, and then Donowitz in the first half of, of 20, of 27.

Speaker #3: And then after, ramp-up, we will then shut down two blast furnaces out of five, in till 2029. This, will enable us to reduce CO2, emissions, by 30%, by, 29.

Herbert Eibensteiner: This will enable us to reduce CO2 emissions by 30% by 2029. The next step in this plan is replacement of two further blast furnaces in Linz and in Donawitz. This one blast furnace remaining, and this will take place towards 2050, and the goal is net zero at this time. I will take one part out of this plan for Donawitz, because we have a certain change there. Ramp-up in 2027, when it will start up, we replace the first blast furnace, and we started, and will then start the investment of around EUR 100 million to make this investment. This is the foundation for closing the second blast furnace there and the sinter plant right after 2030.

Speaker #3: And then the next step, in this plan, is, replacement of, two further blast furnaces in Linz and in, in Donowitz. And, then, we start then is one, one blast furnace remaining and this, will take place, towards 2050 and the goal is, net zero at this, at this time.

Speaker #3: So I will take one part out of this, out of this plan, for Donowitz because we have, a certain, change there. ramp-up, in 2020, 2027, when it's, will start up, we, we, repla replace the first blast, blast furnace and, we started and started an, an in, in will then start the investment of around 100, million euros, to, to, to make, this investment and this is the foundation, for closing, then the second, blast furnace there and the Hindenburg after, right after 2030.

Speaker #3: And that's the it's within our plan, but we have agreed agreed on this 100 million and then in 2030, we will have, full conversion to electrical, steel mill, steel production and, this, will lead to, shutdown of the second furnace and, and also, this interplant, and, I think, then, we have achieved this, this, mini mill-like, steel production with a CO2 footprint of 90% less, less than, before.

Herbert Eibensteiner: It's within our plan, but we have agreed on this EUR 100 million, in 2030, we will have a full conversion to electrical steel mill, steel production, and this will lead to a shutdown of the second furnace and also the sinter plant. I think then we have achieved this mini mill-like steel production with a CO2 footprint of 90% less than before. What are developments in the different divisions? I will start with Steel Division. Very good performance, supported by our premium positioning. We had this lower demand from construction, mechanical engineering, and energy. That's what I have told you before. Despite that, good deliveries also in these areas, but very good delivery in automotive industry, driven by our quality performance, and in particular with our logistic performance. We gained, again, market share.

Speaker #3: What I what are developments in, the different, divisions? I will start with, flat steel, very good performance. supported by our premium positioning, we had this, lower demand, from construction mechanical engineering and energy.

Speaker #3: That's what I have told you before. But, despite that, there were good deliveries also in these areas, but very good deliveries in the automotive industry—and driven by our quality performance and, in particular, with our logistic performance.

Speaker #3: So we gained, again, market share, and, I think, this, this was a, a key driver, for the goods, results, in this, area. And when I, come to the, when we look to the current situation, and, for the outlook, I think, we, we have now this, implemented, CPAM and safeguard, with all the positive, positive, result we expected.

Herbert Eibensteiner: I think this was a key driver for the good results in this area. When we look to the current situation and for the outlook, I think we have now this implemented CBAM and safeguard with all the positive result we expected. I think we will discuss it later on, but we know that there is some material in the system because of pre-orders before the final implementation. We do expect that in the H2 of the year, we will see the positive results of these very strong safeguard measures with higher prices, and all the expected price increases in the H2 of the year. I think a positive signal is from the commission coming, that for the ETS reform, we are asking for a later reduction of the free allowances, and this is a first step.

Speaker #3: I think, we will discuss it later on, but we know that there is, some material, in the system, because of, of preorders, before, the final implementation.

Speaker #3: But we do expect that in the second half of the year, we will see the positive results of these very strong safeguard measures, with higher prices.

Speaker #3: and all the expected price increases in the second, second half of the year. I think a positive signal, is from the commission, coming, that, we, for the ETS reform, you know, we are, we are asking, for a later, reduction of the free allowances.

Speaker #3: And this is, a first step, I would say, positive first step, but I think, further improvements, are needed. In that context, and, as I have mentioned that before, we have higher inventories, in the European system, but, I think this, will, will be reduced in the course of the years.

Herbert Eibensteiner: I would say positive first step, but I think further improvements are needed in that context. As I have mentioned that before, we have higher inventories in the European system. I think this will be reduced in the course of the years. In Europe, because of the heat, we have logistical challenges which are very well managed so far. I think we will get some question on that. To make it very short, we have all our transports coming via the Danube relocated to railway supply chain, because these activities on the river is only 10% of our supply chain portfolio. I think greentec steel is progressing quite well in that area when you look at the EBITDA figures. I think they are very good. Come to High Performance Metals. Tooling market is a bit subdued in Europe and in North America.

Speaker #3: And, in, in Europe is, because of the heat, we have logistical challenged, challenges, which, are very well managed. so far, I think we, we'll get some question on that.

Speaker #3: so, to make it very short, so we have, all our, all our, transports coming via, via the Danube, relocated, relocated, to, to railways. To railway, supply chain.

Speaker #3: and, because, this, activities, on the, on the river, is only 10% of our, supply chain. portfolio. I think, green textile, is progressing quite well in that, in that area, when you look at the PTA figures.

Speaker #3: I think they are very, very good. Come to high performance metal, metals, tooling market is, is a bit, subdued, in, Europe and in North America.

Speaker #3: but, good demand in China. And also in, in South America, improved. med tech, food and beverage and mining, markets, are very solid so far.

Herbert Eibensteiner: Good demand in China and also in South America improved. MedTech, food and beverage, and mining markets are very solid so far, and supported this business to a certain extent. Strong demand in aerospace, and most recently also in power industry when it comes to turbines and so on. This is driven by a good global demand. You know that High Performance Metals had a very ambitious reorganization program, which is progressing according plan. The latest outcome was this sale of Böhler Profil. Also not finally finished, but very far in according that plan. Outlook, I think we have this economic uncertainty in that area in worldwide business. We have these trade measures in the US. We see in this market a slight improvement and see headwind. Again, as I mentioned before, aerospace is still very strong.

Speaker #3: And, supported, this, this business, to a certain extent. Strong, demand, in aerospace. And most recently also in power industry, when it comes to turbines and so on.

Speaker #3: And this is, driven by a good global demand, and, you know, you know that high performance meas metals, had a, a, a very ambitious, reorganization, pro, program.

Speaker #3: Which is progressing according to plan, and the latest outcome was this sale of puller, puller profile. But also, it's not finally finished, but very far, in, in, in, in, in, in, in, in, in according to that plan.

Speaker #3: Outlook, I think we have this economic uncertainty in that area, in worldwide business. And we have these trade measures in the US, but we see in these markets a slight improvement.

Speaker #3: And, see headwind. And, again, as I mentioned before, aerospace is, still very strong. Metal engineering, business development, is, is, more or less, driven by this, very robust railway, infrastructure business and railway systems business.

Herbert Eibensteiner: Metal Engineering business development is more or less driven by this very robust railway infrastructure business and railway systems business. Industrial Business is, Tubulars was impacted by the US tariffs and also affected by project delays due to the conflict in the Middle East. Wire is very dependent on construction and mechanical engineering, also in automotive. Again, some reorganization work to do, but improving, and welding is overall stable, but with differences in different regional areas. Outlook, railway positive. Industrial systems in a weaker environment and greentec steel, I have already presented the project in that division. I would come to the railway business in particular. For all those who are not so familiar with our railway system activities, it's a business of goods, a bit more than EUR 2 billion turnover.

Speaker #3: In industrial business, is, tubulars was impacted by the US tariffs. And, also, affected by project delays, due to the conflict, in, in the Middle East.

Speaker #3: And, wire, and, wire is, very dependent on construction, and manu mechanical engineering, also in automotive. So, again, some, reorganization work to do, but improving and welding is, overall stable in, but which with, with differences in, in different, regional areas.

Speaker #3: Outlook, railway positive, industrial systems, in a weaker, weaker, environment. And green textile, I have already, presented, the, the project, in that, in that division.

Speaker #3: And I would come to the railway business in particular. And for all those who are not so familiar with our railway system activities, it's a business of goods, with a bit more than €2 billion turnover.

Speaker #3: And we have—we are a leading global provider of railway infrastructure solutions, with track systems, turnout systems. Turnout is our biggest, biggest market.

Herbert Eibensteiner: We are a leading global provider of railway infrastructure solution with track systems, turnout systems. Turnout is our biggest market. We are market leader in that area. Fixation, signaling, digital monitoring, and services. By the way, all those digital activities were very helpful getting these big orders in the last 2 years, and has a very low cyclicality. The business model is more than 80% is maintenance and repair activities. This generating the bigger part of that business and all this additional railway infrastructure I showed you before is this, for instance, Rail Baltica, but others as well, confirms that we have a strong market position. The positive thing is now we are delivering this new railway infrastructure, and in 10 years, we have a high probability to get also the maintenance and service orders. We have this very positive midterm market outlook.

Speaker #3: We are market leader in that area. Fixation signaling, digital monitoring, and services—by the way, all those digital activities were very helpful in getting this big over borders in the last two years.

Speaker #3: And it has a very low cyclicality, and the business model is more than 80% maintenance and repair activities. And this is generating the bigger part of that business.

Speaker #3: And all this, additional ra-railway infrastructure, I showed you before, is, this for instance, Rail Baltica, but others as well. Confirms that we have a strong market position.

Speaker #3: And the positive thing is, now we are delivering this, new railway infrastructure in, in 10 years. We have a high probability, to get, also the maintenance and service orders.

Speaker #3: So, we have this, very positive mid-term market outlook. and, order book, order book is good. and, I think, with a very good outlook also in two.

Herbert Eibensteiner: Order book is good, and I think with a very good outlook also into next year. On the right-hand side, you see the figures, more than 10% EBITDA. Now I would hand over to Gerald. Please guide us through the figures.

Speaker #3: Next year, and on the right-hand side, you see the figures—more than 10% EBITDA. Now I would hand over to Gerald. Please guide us through the figures.

Speaker #2: Thank you, Herbert. so our first quarter, so that's my numbers. Our first quarter actually confirmed the resilience of coastal business business model, in an environment which remained, yeah, highly uncertain, I would say.

Gerald Mayer: Thank you, Herbert. Our first quarter. That's my numbers. Our first quarter actually confirmed the resilience of voestalpine business model, in an environment which remained highly uncertain, I would say. We reached roughly EUR 4 billion in revenue, which is slightly up. The main reason why it is up, is very slightly up, is on the one side, we had some higher raw material prices, in particular alloying metals for High Performance Metals Division. We had, in addition to that, slightly higher volumes. In profitability, EBITDA and EBIT, we are up EUR 135 million. As Herbert mentioned before, a bulk of the increase is referring to the sale of, or the divestment of Böhler Profil, and some restructuring or reorganization costs, which we are simply continuing. In addition to that, we also had operational improvements there.

Speaker #2: and, so we reached roughly 4 billion, in, in revenue, which is slightly up. the main reason why it is up is the slightly up is, on the one side, we had some higher raw material prices, in particular alloying metals, for HBM division.

Speaker #2: And then we had an addition to that, slightly higher, volumes. In profitability, EBITDA and EBIT, we are up 135 million. as Herbert mentioned before, part of the, part of the increase, is referring to the sale of, or the divestment of puller profile.

Speaker #2: And some restructuring or reorganization costs, which we are simply continuing. In addition to that, we also had operational improvements there. So, all that we did in the last month, or one and a half years, pays off, actually.

Gerald Mayer: All what we did in the last month or 1 and a half years, pays off, actually. We saw improvement, in particular in High Performance Metals Division and Metal Forming Division, out of these measures we undertook in the last month. Cost structure, in total, is definitely significantly better than it used to be, in High Performance Metals and in Metal Forming. Just to give you a flavor there, in High Performance Metals Q1, we had roughly 500 Full-Time Equivalents, less than in the comparing quarter. For Metal Forming, the number was -400 FTEs. This actually led to improved results for them. Quite strong, and I will talk about this in a moment again, was Steel Division again. Starting point was a strong Q1 last year, and it was even stronger this year.

Speaker #2: So we saw an improvement, or improvements in particular in HBM division and metal forming, division out of this measures. We undertook, in the last, month.

Speaker #2: So, cost structure in total is definitely significantly better than it used to be, in HBM and in metal forming. And, just to give you a flavor there—in HBM, in the first quarter, we had roughly 500 full-time equivalents less than in the comparing quarter.

Speaker #2: and for metal forming, the, number was minus 400, FTEs. So, and this, actually, led to improved, results for them. Quite strong, and I will talk about this in a moment again, was steel division again, starting point was, was a, a strong first quarter last year.

Speaker #2: And it was even stronger this year. And in metal engineering, we are, slightly down, in particular because of tariffs and the war, in Iran.

Gerald Mayer: In Metal Engineering, we are slightly down, in particular, because of tariffs and the war in Iran. If you look at the financial result, it also improved. The main reason is lower debt and slightly lower interest rates. What you also see there is that the tax rate is a little bit higher than it was last year. This has to do with strict accounting rules in recognizing our NOL carryforwards. Talking about the first bridge here on slide number 15. You see the starting point for EBITDA was this EUR 360 million, roughly. We ended up at roughly EUR 500 million for this Q1. As I mentioned before, of course, we saw some positive impacts from some higher prices, raw material driven in particular. For example, in High Performance Metals Division, of course, we also had a positive impact from higher market prices in hot-rolled coils.

Speaker #2: If you look at the financial result, it also improved. The main reason is lower debt and slightly lower interest rates. And what you also see there is that the tax rate is a little bit higher than it was last year.

Speaker #2: This has to do with strict accounting rules in recognizing NOL carryforwards. Talking about the first bridge here on slide number 15, you see the starting point for EBITDA was this $360 million, roughly.

Speaker #2: We ended up at, roughly 500 million, for this, first quarter. so as I mentioned before, of course, we saw some positive impacts, from, some, yeah, higher prices, raw material driven in particular.

Speaker #2: for example, in, in HBM division, of course, we also had a positive impact from higher market prices in hot rolled coils. and, in addition to that, we saw lower raw material prices compared to prior year, first quarter.

Gerald Mayer: In addition to that, we saw lower raw material prices compared to prior year Q1. Of course, if you go into the details then and compare quarter-to-quarter, Q4 last year to Q1 this year, you see higher raw material prices. I give you a number. It was more than EUR 60 million. Mix and volume was slightly positive. In terms of miscellaneous, these are the effects I mentioned before, EUR 100 million of one-off effects, roughly EUR 130 million from the disposal of Böhler Profil. We had, of course, this reorganization, which we continued. I mentioned it before. There is a restructuring element in it of EUR 16 million, and the rest refers in particular to streamlining of our warehousing activities. We are simply continuing that.

Speaker #2: of course, if you go into the details then and compare quarter to quarter, Q4 last year, to Q1 this year, you see higher raw material prices.

Speaker #2: and again, can I give you a number? Yeah, it was more than 60 million. mix and volume was slightly positive. and, in terms of miscellaneous, these are the effects I, I mentioned, before.

Speaker #2: 100 million, of one off, effects, roughly 130, million, from, the disposal of, puller profil. and, then we had, of course, this reorganization, which we continued.

Speaker #2: I mentioned it before, so there is an restructuring element in it of 16 million. And, the, the, the rest, refers in particular to streamlining of our warehousing activities.

Speaker #2: We are simply continuing that. I think I mentioned the last time that we are in the process of reducing, for example, our warehouses from more than 100 to roughly 80.

Gerald Mayer: I think I mentioned the last time that we are on the course of reducing, for example, our warehouses from more than 100 to roughly 80. We are continuing that, and there is some valuation of stock involved. Talking about the development in the divisions, this is the second bridge. You see what I mentioned before, the Steel Division is up by EUR 29 million, roughly. Increased gross margin on the one side, this is the plus, and the minus is that we have less of energy projects in our portfolio in the first quarter. I think this is what we mentioned also before in previous calls, that this is our expectation or the expectation for this year. HPM Division up EUR 140 million in this one, 14. EUR 100 million extraordinary effect, India, and I talked about this before.

Speaker #2: and, and so we are, continuing that. And, and there is some, some valuation of stock involved. Yeah. talking about the development, in the divisions, this is the second bridge.

Speaker #2: You see, what I mentioned before, the steel division is up by 29 million roughly. Increased gross margin, on the one side. This is the plus.

Speaker #2: And the minus is that we have fewer energy projects in our portfolio in the first quarter. But I think this is what we mentioned also before in previous calls—that this is our expectation, our clear expectation, for this year.

Speaker #2: HBM division up 140 million; in this, 114–100 million extraordinary effect in there. And I talked about this before. I also mentioned that nearly 500 people are less, working now for HBM division.

Gerald Mayer: I also mentioned that nearly 500 people are less working now for HPM Division, and this excludes the effect from the sale of Böhler Profil. This is an apple to apple number I gave you. Metal Engineering Division is EUR 11 million down. Railway systems, as Herbert showed you, and you find the number in the slide Herbert shared with you see a EUR 60 million there performance of railway system for the first quarter. Welding wire is stable compared to prior year first quarter. In Tubulars we are down, and this is the reason why we lose ground a little bit compared to prior year. As I mentioned before, of course, this is the area where we are suffering most from the tariff situation in the US and also we are suffering because of this Near Middle East or Near East war.

Speaker #2: And this excludes, the effect from the sale of, of puller profil. So this is an apple to apple number I gave you. metal engineering, is, 11 million down.

Speaker #2: and, railway systems, as Herbert showed you, and you find the number in the slide, Herbert shared with you, you see an, 60 million, there performance of railway system, for the first, quarter.

Speaker #2: Welding, wire is, stable compared to prior year, first quarter. And in tubules, we are down. And this is the reason why we lose ground a little bit compared to prior year.

Speaker #2: And as I mentioned before, of course, this is the area where we are suffering most, from the tariff situation in the US. And also, we are suffering because of this near Middle East or Near East, war.

Speaker #2: metal forming division, so we are, up 11, million. I told you roughly 400 FTEs less. The cost structure is improved compared to prior year, very strong.

Gerald Mayer: Metal Forming Division, we are up EUR 11 million. I told you roughly 400 FTEs less. The cost structure is improved compared to prior year. Very strong still Warehouse and Rack Solutions, very stable Precision Strip. We saw improvement because these 400 FTEs I mentioned are simply referring to Automotive Components business. We saw an improvement there. We still not where we should be, but we are on our way to deliver this 6% EBIT margin we also shared with you before. Of course, there's still some miles to go there. For Tubes & Sections, what we see there is, I would say some headwinds in certain areas globally, in particular, in the US and also, for example, in our business there in the UK. If you look at the PMIs there for construction and so on, which are relevant for us, you see very weak PMIs.

Speaker #2: Still, warehouse and rack solutions, very stable precision strip. we had, we saw improvements because this 400 FTEs I mentioned, simply referring to automotive components business.

Speaker #2: so we had a s and, and, and so we saw an improvement there. We, we still not, where we should be, but we are on, on our way, to, to deliver this 6%, EBIT margin, we also shared with you.

Speaker #2: before, of course, there is, there is, still, some, some miles to go there. for tubes and sections, we, what we see there is, in, in, I would say some headwinds in certain areas globally, in particular, in the US and, and also, for example, in our business there, in the UK, if you look at the PMIs there for construction and so on, which are relevant for us, you see very weak, PMIs.

Speaker #2: And so this is what we see in tubes and section. But it is a solid business. It is, it is, it is, in total, not bad.

Gerald Mayer: This is what we see in Tubes & Sections. It is a solid business. It is in total not bad. It is still a good business, but we are a little bit behind the prior year. Next slide is cash flow statement. In cash flow, you see a cash flow from result, which is slightly below prior year. We again managed to reduce working capital a little bit, EUR 44 to 44 million. In my opinion, this will not continue like that. It should go a little bit into the other direction, but this is also what we guided when we published our full year three months ago. Brings us to an operating cash flow from EUR 344, which is a strong one for the first quarter. Cash flow from investing activity, EUR -120.

Speaker #2: It is a, a, still a good business. But we are a little bit, behind, the prior, year. next slide, is, cash flow statement in, in cash flow.

Speaker #2: You see a cash flow from result, which is slightly below prior year. We again managed to reduce, working capital, a little bit 44 to 44 million.

Speaker #2: This is, in, in my opinion, this will not continue like that, it, it, it should go a little bit into the other direction. But this is also what we guided, when we published our full year, three months ago.

Speaker #2: so brings us to an operating cash flow from 344, which is a strong one for the first quarter. cash flow from investing activity minus 120.

Gerald Mayer: Brings us to an operating cash flow from EUR 344, which is a strong one for the first quarter. Cash flow from investing activity, EUR -120. This includes positive effect from the sale of Böhler Profil, I mentioned it here on the slide of EUR 150 million. If we would take this out, EUR 270 million is actual cash flow from investing activities. We are more or less at the run rate to EUR 1 billion, our guidance is unchanged, EUR 1.15 billion, excluding now this EUR 150 million positive effect from Böhler Profil.

Gerald Mayer: This includes positive effect from the sale of Böhler Profil, I mentioned it here on the slide of EUR 150 million. If we would take this out, EUR 270 million is actual cash flow from investing activities. We are more or less at the run rate to EUR 1 billion, our guidance is unchanged, EUR 1.15 billion, excluding now this EUR 150 million positive effect from Böhler Profil. Herbert mentioned before, we are absolutely on time, on budget, on a good path regarding our projects there. Balance sheet still very solid. You see here the number end of Q1. Of course, our dividend payment, which we distributed mid of July, is not included there. If I would include that, we would end up at, I think 14.5 something % of gearing. We have room to maneuver. Yeah.

Speaker #2: This includes a positive effect from the sale of Puller Upstyle Profil. And I mentioned it here on the slide—€150 million. So if we take this out, then €270 million is the actual cash flow from investing.

Speaker #2: activities. And, so we are more or less at the run rate to 1.4, 1 billion. And our guidance is unchanged, 1.15 billion excluding now, this 150 million positive effect from, from puller profil.

Speaker #2: And, and Herbert mentioned before, we are absolutely, on time, on budget, and on a good path, regarding, projects there. balance sheet, still very solid.

Gerald Mayer: Herbert mentioned before, we are absolutely on time, on budget, on a good path regarding our projects there. Balance sheet still very solid. You see here the number end of Q1. Of course, our dividend payment, which we distributed mid of July, is not included there. If I would include that, we would end up at, I think 14.5 something % of gearing. We have room to maneuver. Yeah. This was it from my side, I hand over to Herbert for the outlook.

Speaker #2: you, you see here the number end of, of Q1. Of course, our dividend payment, which we distributed mid of July, is not included there.

Speaker #2: If I would include that, we would end up at, at 100 at, I think, 14.5 something, percent of, of, of gearing. and, and so we have, room to maneuver.

Speaker #2: Yeah. This was it from my side. And I hand over to Herbert for the outlook.

Gerald Mayer: This was it from my side, I hand over to Herbert for the outlook.

Herbert Eibensteiner: I will start with the outlook. Please let me catch up with Metal Forming Division. Sorry for that. It was my fault. As we mentioned before, Automotive Components is really challenged by the market, mostly focusing on European OEMs, the reorganization measures are well on plan. There is additional work to do because of the most recent reduction. Tubes & Sections, it's positive, I see a challenging market environment in the US, also weaker demand in construction. When you look at Europe, I think so far quite good. Precision is very robust, we will see a better result than last year. Warehouse & Rack Solutions, still very strong with a very good, long order book also until in the next year. The current situation there, as I mentioned before, focus on reorganization.

Speaker #1: I'll start with the outlook, please, let me catch up. with, metal forming for that, it was my fault. And, as, as we mentioned before, automotive components, his, really challenged, by the market, you know, mostly focusing, European OEMs, and, the reorganization measures, well on plan, but, there is, additional work to do because of the most recent, most recent, reduction.

Speaker #1: and, tubes and sections, it's positive. and, but, change see a challenging market environment in the US. And also, weaker demand in construction, but when you look at Europe, I think, so far, quite s quite good.

Speaker #1: precision, is, is very robust. And we will see a, a better result, than last year. And we are also in rack solution, still very strong with a very good and into next, in, in the next, year.

Speaker #1: And, the current situation there, as I mentioned before, focus on, on, on reorganization. and, warehouse and rack solutions, are expected to, to be, very strong.

Herbert Eibensteiner: Warehouse & Rack Solutions are expected to be very strong in the course of this year. Now I would come to the outlook. It's very easy when you put everything together. We see these uncertainties, trade-related uncertainties, mostly coming from the US. We have this war around Iran. For the steel market, we see an improvement. This is supported by CBAM and these EU safeguard measures. I think we can expect in the second half of the year a normalizing of these inventory levels. We got this positive signal from the commission for this longer allocation for free allowances. It's not finished, the discussion. I think there are some topics to discuss, we have to ask for further improvements.

Speaker #1: in the course, in the course of, of, of this year. And, now I would come, to the, to the outlook. it's, very very easy.

Speaker #1: When you put everything together, we see these uncertainties—trade-related uncertainties—mostly coming from the US. We have this war around Iran, and for the steel market, we see an improvement.

Speaker #1: this is, supported by CBAM. And this, EU safeguard measures. And, I think, we can expect in the second half of the year, a normalizing of the, of this, inventory, levels.

Speaker #1: we got this, positive signal, from the, commission, for this, longer, allocation, for free allowances. it's not finished, the discussion. I think there are, some, some topics to discuss.

Speaker #1: And we have to, ask for further. Improvements. reorganization measures in high performance met metals and automotive. Components, are on budget. And, we can expect, this, positive results, coming from that.

Herbert Eibensteiner: Reorganization measures in High Performance Metals Division and Automotive Components are on budget, we can expect these positive results coming from that, the positive contribution from Flat Steel business is evident. We have the contracts in our books. Automotive Components is difficult, I would say. In Tubulars and Wire, I think it's a more difficult environment. The Middle East tensions delay some of the expected energy projects, but not only for Tubulars, also for Heavy plates. In Steel Division, railway good, aerospace good. Warehouse & Rack Solutions is strong. The guidance is unchanged. We expect an EBITDA in the range between EUR 1.6 and 1.85 billion. This was our presentation for Q1, we will be happy to answer your question. Thank you.

Speaker #1: And, the positive, contribution, from flat steel, business, is in, is evident. we have the contracts, in our, in our books. And automotive con components, is, difficult, I would say.

Speaker #1: And, in tubulars, and wire, I think, it's a difficult, more difficult environment. And, the Middle East tensions, delay some of the expected energy pro projects.

Speaker #1: But not only, for tubulars, also for heavy plates. For heavy plates. In steel, railway good, aerospace goods, warehouse and rack solutions strong. And, the guided dis the guidance is, unchanged.

Speaker #1: So we expect, an EBITDA in the range between 1.6 and 1.85 billion euro. So this was our, our presentation for Q1. and, we would be happy to answer your question.

Speaker #1: Thank you.

Speaker #2: Ladies and gentlemen, we will now begin the question and answer session. Anyone who has a question may press star and turn on their telephone.

Operator 2: Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who has a question may press star and two on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Anyone who has a question may queue up now. We have the first question come from Lane Gabriel from Morgan Stanley. Please go ahead.

Operator: Ladies and gentlemen, we will now begin the question-and-answer session. We have the first question come from Lane Gabriel from Morgan Stanley. Please go ahead.

Speaker #2: You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two.

Speaker #2: Anyone who has a question may queue up now. And you have the first question coming from Elaine Gabriel from Morgan Stanley. Please go ahead.

Speaker #3: Yes. good afternoon. And thank you for taking my questions. a couple of questions I have is, the first one is, you are in the process of commissioning the new EAFs, the electric arc furnaces.

Lane Gabriel: Yes, sir. Good afternoon, and thank you for taking my questions. A couple of questions I have is, first one is, you're in the process of commissioning the new EAFs, the electric arc furnaces. Can you remind us if you will incur any ramp-up costs over the course of 2027? The second part of that question is, how will the like-for-like margins compare to your existing blast furnace? I'm trying to get a better understanding how the margins of these 2.5 million tons, give or take, will evolve as you commission the EAF and you decommission the blast furnace. That's my first question. Thanks.

Alain Gabriel: Yes, sir. Good afternoon, and thank you for taking my questions. A couple of questions I have is, first one is, you're in the process of commissioning the new EAFs, the electric arc furnaces. Can you remind us if you will incur any ramp-up costs over the course of 2027? The second part of that question is, how will the like-for-like margins compare to your existing blast furnace? I'm trying to get a better understanding how the margins of these 2.5 million tons, give or take, will evolve as you commission the EAF and you decommission the blast furnace. That's my first question. Thanks.

Speaker #3: Can you remind us if you will incur any ramp-up costs over the course of 2027? And the second part of that question is, how will the like-for-like margins compare to your existing glass furnace?

Speaker #3: I'm trying to get a better understanding how the margins of these, 2.5 million tons give or take. Will, will evolve as you commission the EAF and you decommission the glass furnace?

Speaker #3: that's my first question. Thanks.

Speaker #1: Yes. I, I, I think I s I start with the ramp-up cost from, from my side. so, f-first of all, if I look perhaps to give you a little bit more, more insight there.

Gerald Mayer: I think I start with the ramp-up cost from my side. First of all, if I look, perhaps to give you a little bit more insight there. What we are currently doing, we started this not just this year, but some months or one, two years ago, is that our R&D department takes really care so that we get a smooth ramp-up, that we understand what we get in terms of alloys and so on, how we have to set up everything that we get at the end of the day, the right quality out of our furnaces. In addition to that, we have a testing environment in Donawitz, which also is very supportive. What we assume is that we do not have big, significant ramp-up costs there.

Speaker #1: What we are currently doing, and we started this not just this year, but, but, some months or one, two years ago, is that our R&D department takes really care so that we get a smooth, ramp-up that we understand what we get, in terms of alloys and so on, and how we have, have to set up everything that we get at the end of the day.

Speaker #1: the, the, the right quality out of this, of, of our furnaces. In addition to that, we have a testing, environment, in, in Donavitz, which also is very supportive.

Speaker #1: So what we assume is that we do not have big significant, ramp-up cost there. And, and, frankly speaking, when I look at our internal planning, you see more or less stability.

Gerald Mayer: Frankly speaking, when I look at our internal planning, you see more or less stability there also in our Steel Division. We do not assume big things there to happen in terms of cost. There is one thing to add. I think in Linz, it will take roughly 150, 200 people to run this new equipment when we start it up. We are on the course, of course, of preparing ourselves, and we are not forced to take out of production immediately our blast furnace, which will be substituted there. The impact will be a limited one from our perspective. I hope this helps.

Speaker #1: They are also in our steel division. so we do not assume big things there, to happen in terms of, of cost. And there's one thing to add.

Speaker #1: in I think in Linz, we will it will take roughly 150, 200 people, to run this new equipment. when we started up, so we are on the course, of course, of preparing, ourselves.

Speaker #1: And we are not forced to, to take out of, of production, immediately our, blast furnace, which, will be substituted there. so the impact will be a limited one from our perspective.

Speaker #1: I hope this helps.

Speaker #3: Thank you. That helps. Yes. A-and the second part of the question is on the margins. of the EAF versus the blast furnace, should we expect a step-up in margins, or is it swapping like-for-like?

Lane Gabriel: Thank you. That helps, yes. The second part of the question is on the margins of the EAF versus the blast furnace. Should we expect a step up in margins or is it swapping like for like, but with a lower carbon footprint?

Alain Gabriel: Thank you. That helps, yes. The second part of the question is on the margins of the EAF versus the blast furnace. Should we expect a step up in margins or is it swapping like for like, but with a lower carbon footprint?

Speaker #3: But with a lower carbon footprint.

Speaker #1: I, I, I also start with, with the with this answer. And, and, and Herbert takes over then from whatever I miss, there. so also, also here in general, I think, first of all, for all of us, I think it is it is crystal clear that we will not have, that we get some, some sort of reduced, let's say, burdens from CO2 emissions from the ETS system, which we are paying at the moment.

Gerald Mayer: I also start with this answer, Herbert takes over then from whatever I miss there. Also here in general, I think first of all, for all of us, I think it is crystal clear that we get some sort of reduced, let's say, burdens from CO2 emissions from the ETS system, which we are paying at the moment. As you might know, last business year, full business year, we had to pay in more than EUR 200 million for this ETS systems for CO2 allowances, actually. This will be reduced on the one side. On the other side, of course, we're also working with our customers to get premiums, green premiums, which is clear that we need something that is just part of the business case.

Speaker #1: As you might know, last business year, full business year, so we had to, to, to pay in more than 200 million, for this ETS systems for CO2 allowances actually.

Speaker #1: and this will be reduced on the one side. On the other side, of course, we also working with our customers, to, to get premiums, green premiums, which is clear that we, we need something that is a part of the business case.

Gerald Mayer: This will be reduced on the one side. On the other side, of course, we're also working with our customers to get premiums, green premiums, which is clear that we need something that is just part of the business case. I think it's a little bit too early, for me, we are more or less confident that in particular, this first step will also be a success.

Speaker #1: I think it's a little bit to, to early, but, let, let me, for, for me, we are, we are more or less confident that in particular this first step, will also be a success.

Gerald Mayer: I think it's a little bit too early, for me, we are more or less confident that in particular, this first step will also be a success.

Speaker #4: No, I think it's the it's, it's the, the, the, the interesting question. Is there a, a green premium? Yes. y-yes or, or no? I can say for Vestalpine that, and you know, we have very long, long-term contracts, for instance, or especially with automotive, automotive customers, and, when this, and you know, this contracts for this year and with op-options, for future, for future years.

Herbert Eibensteiner: I think it's the interesting question, is there a green premium? Yes or no? I can say for voestalpine that we have very long, long-term contracts, for instance, or especially with Automotive customers. These contracts for this year and with options for future years. To be very honest, we have, in that contract, some volumes and also price extras for this greener material. There is an industry which is asking for this greener premium, maybe of this opportunity to deduct their own CO2 emissions from their emissions. I always say this is the first sign of a so-called greener market in Europe. Yes, there is demand for greener steel. When you look in Donawitz, the customers, especially in the railway system area in Europe, they are asking for green steel.

Speaker #4: And to be very honest, we have, in that contracts, some volumes and also, price extras, for these, greener, greener material. So there is, there is, a, a, a industry, which is asking for this, greener premium, maybe, of this, opportunity to deduct their own CO2 emissions, from there, emissions.

Speaker #4: and, I always say this is the first sign of a, a so-so-called greener market, in, in Europe. But yes, there is, some, there is demand, for greener steel, and when you look for, in, in Donavitz, the customers, especially in the railway system, area in Europe, they are asking for green steel, and when you cons when you consider, that, some, competitors, als already, in, electro-arc furnace, production, they would then have an, an, an ad-advantage.

Herbert Eibensteiner: When you consider that some competitors are already in electric arc furnace production, they would then have an advantage. This is the reason how this, in that area, will pay off in orders for green railway infrastructure. I think that's more or less the topic. Now we can discuss how will be the CO2 costs in 2 years and all those things. In a nutshell, I would say all over that there is a demand for green steel. Some markets, railway, for instance, are asking for green steel. This is very important, we have ideas to stick to our high quality strategy in steel production, even with a blast furnace, electric arc furnace route.

Speaker #4: And this is the reason how this in the in that area, will pay, pay off, in, in, in orders, in orders, for green, railway infrastructure.

Speaker #4: I think that's, that's more or less the topic. So now we, we can discuss, how will be the CO2 costs in, in two years and, and, and, and, and all those things.

Speaker #4: But in a nutshell, I would say all over that, there is a demand, for green steel. some, some, markets, railway for instance, are asking for, green steel.

Speaker #4: and, we will and this is very important. We have ideas, to, to stick to our high-quality, high-quality, strategy in steel production, even with a, a blast furnace, electro-arc furnace route.

Speaker #3: Thank you, that's clear. And then, the second question is: I know it's a bit early days, but based on your initial assessment of the revamped ETS framework, how do you expect it to impact your business?

Lane Gabriel: Thank you. That's clear. The second question is, I know it's a bit early days, but based on your initial assessment of the revamped ETS framework, how do you expect it to impact your business? Do you think that you may be able to apply for some retroactive grants or contributions for your greentec steel investments, or is everything going to be forward-looking?

Alain Gabriel: Thank you. That's clear. The second question is, I know it's a bit early days, but based on your initial assessment of the revamped ETS framework, how do you expect it to impact your business? Do you think that you may be able to apply for some retroactive grants or contributions for your greentec steel investments, or is everything going to be forward-looking?

Speaker #3: And do you think that you may be able to apply for some retroactive grants or contributions for your green tech investments, or is everything going to be forward-looking?

Speaker #1: You know, I think that, you know, this was, the, the first announcements, at one was two, two, three weeks, two, three weeks ago. I think, not everybody is through this, thousands of pages, which, refers to this, actual announcement.

Herbert Eibensteiner: I think that this was the first announcement. It was 2, 3 weeks ago. I think not everybody is through these thousands of pages, which refers to this actual announcement. To put it together, first positive sign, there is a way to go. There is a certain reduction or a longer curve for free allowances. I think that's not enough. I think there will be a lot of discussions with the commission, and also with the parliament. I think we are at the beginning of a very long path. I would say positive so far.

Speaker #1: to put it together, first positive sign, there is a, a, a, a way to go. there is a certain reduction, in, in or, or a, a, a longer, a, a, a longer curve, for, for, for, for free allowances.

Speaker #1: But I think that's not enough. So I think there will be a lot of discussions, with the commission, with and, and, and also with, with the parliaments.

Speaker #1: I think we are at the beginning of a very long, very long part, path. But so I would say, positive. So far.

Speaker #3: Thank you. Thank you very much.

Lane Gabriel: Thank you. Thank you very much.

Alain Gabriel: Thank you. Thank you very much.

Speaker #1: And, and to the green tech subsidies, it's clear that we are going for, we have some, got some, some subsidies for the first step, and we will go for the for the second step as well.

Herbert Eibensteiner: To the green tech subsidies, it's clear that we have got some subsidies for the first step, we will go for the second step as well, for subsidies. For the second step, it's open. For the first step, we got EUR 90 million subsidies.

Speaker #1: for subsidies, for the second step, it's, it's, it's open. For the first step, we got 90 million, 90 million euros, subsidies.

Speaker #3: Thank you.

Lane Gabriel: Thank you.

Alain Gabriel: Thank you.

Speaker #2: The next question comes from Reinhard von der Walt from Bank of America. Please go ahead.

Operator 2: The next question comes from Reinhard von der Woth from Bank of America. Please go ahead.

Operator: The next question comes from Reinhard von der Woth from Bank of America. Please go ahead.

Speaker #3: Hi, good afternoon. Herbert and Gerald, thank you for your time. I'd like to just start with the steel division, please. you mentioned a strong second half, prices.

Reinhard von der Woth: Hi. Good afternoon, Herbert and Gerald. Thank you for your time. I'd like to just start with the Steel Division, please. You mentioned strong H2 prices. Can you just give us maybe some detail around what you are assuming in your guidance with respect to price increases? Or at the very least, maybe just discuss the sensitivity of your H2 guide around price increases.

Speaker #3: Can you just give us maybe some detail around what you're assuming respect to price increases? or at the very least, maybe just discuss the sensitivity of your of your second half guide, increases.

Speaker #1: You know, I think, it's, it's there is always a, a figure, around this, this, price increases, in, in coming from maps and, and, and what?

Herbert Eibensteiner: Yeah, I think there is always a figure around these price increases coming from maps and in the CO2 is this EUR 100 per ton plus starting with January, I would say. In our planning, we see that this is achievable, especially for voestalpine steel, you have to consider that we have yearly contracts, half-year contracts, and because of this contract structure, I would say we have something achieved, and we are halfway to that. This 100, because of this time lag of our contract structure, I would say, is then that we will see this 100 or around that figure at the end of our business year. Because we get these half year contracts then in September, contracts in January and all those things. We are not so close to the spot market as some other peers.

Speaker #1: In, in the COU, is this, 100 euros, per ton plus, 100, 100 euros per ton plus starting, with, with January. I would say, and in, in our planning, we, we, we, we, we, we see that, that this is, achievable.

Speaker #1: Especially for voestalpine Steel, you have to consider that we have yearly contracts, half-year contracts, and, because of this contract structure, I would say we have achieved something and we are halfway to that.

Speaker #1: But this 100, because of this time lag of our contract structure, I would say, is then that we see that we will see this 100, or around that figure, at the end of our business year.

Speaker #1: Then because we, we, we get, this half-year contracts then in, in, in September, contracts in, in, in, in January and, and, and all those things.

Speaker #1: So that's, that's not we are not so close to the to the spot market as some, some other some other peers.

Speaker #3: Understood. That's very clear. Thank you. And maybe just a question on your strategy. I mean, the balance sheet now is looking pretty good, right?

Reinhard von der Woth: Understood. That's very clear. Thank you. Maybe just a question on your strategy. The balance sheet now is looking pretty good, right? Your net debt is down again. You have this medium term ROCE target. How are you thinking about strategic flexibility in the business, and how you would maybe use the balance sheet to help you get to that medium term return target?

Speaker #3: You've noted that it is down again. You have this medium-term ROCE target. How are you thinking about strategic flexibility in the business and how you would maybe use the balance sheet to help you get to that medium-term return target?

Speaker #1: You know, I, I, I think it's, for us, it's, it's very clear. We have, we have the, the strategic goal, to, to grow, some areas, the, the most evident is, is railway system.

Herbert Eibensteiner: I think for us, it's very clear we have the strategic goal to grow some areas. The most evident is railway system. Railway system is a EUR 2.2 billion business so far. Our goal is after 2030 to have EUR 3 billion. This is not possible just by organic growth. We think of acquisitions as well, this balance sheet gives us the room to think so. We have a short list to be very open and to follow some targets. This is one thing. A very important part is also aerospace, which is more organic growth necessary with a smaller amount. When it comes to Warehouse and Rack, this is also a business where you can grow with M&A, also there are some opportunities. I think these are all high return on capital employed targets.

Speaker #1: you know, railway system is a 2.2 billion, business so far our goal is, after 2030, to have, 3 billion, this is, not possible just by, by, by organic growth, we think of, of, of, of, of acquisitions as well.

Speaker #1: And this balance sheet gives us the room, to, to, to, to, to think so and we have a shortlist, to be very, very open.

Speaker #1: And, to follow some, some, some, targets, this is one thing. and, very important part is, is also, aerospace, which is more organic growth, necessary with a smaller amount and, when it comes to, to, to warehouse and rack, this is also a, a business where you can grow, with, with M&A and also there, are some opportunities.

Herbert Eibensteiner: When it comes to Warehouse and Rack, this is also a business where you can grow with M&A, also there are some opportunities. I think these are all high return on capital employed targets. This is the answer to your first question and the second question. Yes, we have our capital allocation strategy, this gives us room to follow our path in greentec steel, but also in growth, and for sure, also in dividends. That's clear. Thank you very much for your time.

Speaker #1: And, I think these are all, high return on capital employed, targets. this is the answer to your question, to your first question. And the second question, and yes, we have our, capital allocation strategy and this gives, gives us room, to, to, follow our path in green tech steel, but also in, in growth.

Herbert Eibensteiner: This is the answer to your first question and the second question. Yes, we have our capital allocation strategy, this gives us room to follow our path in greentec steel, but also in growth, and for sure, also in dividends. That's clear. Thank you very much for your time.

Speaker #1: And for sure, also in dividends.

Speaker #3: That's clear. Thank you very much for your time.

Speaker #2: The next question comes from Dominic O'Kane from JP Morgan. Please go ahead.

Operator 2: The next question comes from Dominic O'Kane from JPMorgan. Please go ahead.

Operator: The next question comes from Dominic O'Kane from JPMorgan. Please go ahead.

Speaker #4: Hello. I have three short questions. my first question is on the Donowitz, second EAF. so the 100 million capex number, could you just maybe give us some reassurance that you are confident that you can deliver it over the timeframe for 100 million euros, given cost inflation and inflationary pressures that we're seeing elsewhere?

Dominic O'Kane: Hello. I have three short questions. My first question is on the Donawitz second EAF. For the 100 million CapEx number, could you just maybe give us some reassurance that you are confident that you can deliver it over the timeframe for EUR 100 million, given cost inflation and inflationary pressures that we're seeing elsewhere? My second question, just as we look into Q2, I'm thinking from a P&L perspective, are there any other one-offs or abnormal items that we should be aware of for EBITDA modeling? Then my final question is, obviously, when we're looking at the guidance for FY2027, a key part of that improvement that we're seeing coming through is on cost savings, particularly in the Metal Forming Division. Could you just maybe talk to us about how your progress is evolving on the cost-saving journey towards EUR 400 million over time? Thank you.

Speaker #4: my second question, just as we look into Q2 and thinking from a profit and loss perspective, are there any other one-off or abni abnormal, items that we should be aware of for, for EBITDA modeling?

Speaker #4: And then my final question is, is obviously when we, when we're looking at the, the guidance for FY27, a key part of that improvement that we're seeing coming through is on cost savings.

Speaker #4: particularly in, in the metal engineering, metal forming division. So could you just maybe talk to us about what how your, your progress is evolving on, on the, on the cost saving journey towards, 400 million euros over time?

Speaker #4: Thank you.

Speaker #1: I, I start with, Q2. No, one-offs expected, for the actually for the rest of the, you know, significant ones. at least I think we, as I mentioned before, so we, we recognized some, some restructuring costs.

Herbert Eibensteiner: I start with Q2. No one-offs expected, actually for the rest of the significant ones. At least I think we, as I mentioned before, we recognized some restructuring costs. We are more or less there, in HPM Division. Then you said cost savings, I think, for Metal Forming. I said before that we are roughly 400 FTEs down. We have actually this positive effect in our P&L this year on the one side. On the other side, I think it's no surprise that we're all facing, this is in particular the case for Metal Forming, still some headwinds from the automotive industry. I would say more or less globally. This is where we are still struggling a bit.

Speaker #1: But this we are more or less there, in HPM division. yeah, and, Daniel said cost savings, I think, for, for metal forming, I, I said before that we are roughly 400 FTEs s down.

Speaker #1: So we have this, this, this, actually this, this, this positive effect in our P&L this year on the one side. On the other side, I think it's no surprise that we all facing, and this is in particular the case for metal forming steel, some headwinds from the automotive industry.

Speaker #1: I would say more or less globally. and, and this is, where we, we still struggling a bit, but, but we think that we will see, in total, I would say some 40, 50 million, compared to the starting point, you know, of, of this, this, this journey means, two years ago roughly, is what we see, reduced cost structure.

Herbert Eibensteiner: We think that we will see, in total, I would say some EUR 40, 50 million, compared to the starting point of this journey means 2 years ago, roughly, is what we see a reduced cost structure. Yeah, this is the template. It's more or less digital, so from that sense. Donawitz is, Herbert. Yeah, that would be now a very deep technical discussion about it, but I try to make it very easy. This actual electric arc furnace equipment is very tailor-made to the special effort of demands. A long further processing line is needed for rails, for tubes, for wire, and so on. We invested all those basic CapEx for the second step, and it's only under brackets, it's only 1.5 million tons of steel. I think we need this EUR 100 million for logistic topics for additional energy supply.

Speaker #1: and, and, yeah, this is template there. It's more or less digital. so from that sense and, yeah, Donowitz is Herbert. Yeah, this is it's, that would be now a very deep technical discussion about that, but I try to make it very, very easy.

Speaker #1: it's, you know, this, this, this actual, electro arc furnace, equipment is very tailor-made to the, to the special, effort of demands along, along further processing, line is needed, you know, for, for rails, for tubes, for wire.

Speaker #1: And so on. And, we, invested all those, basic, capex, for this second step. And, you know, it's only, under brackets, it's only 1.5 million tons, of, of steel.

Speaker #1: and, I think we need this 100 million, for, logistic topics, for additional, energy supply and very important in that context, is this, secondary metal metalurgical, topics and treatment.

Herbert Eibensteiner: Very important in that context is this secondary metallurgical topics and treatment. These are the EUR 100 million. The rest is already invested and part of the CapEx of the first step. Yes, with this EUR 100 million, you get a fully electrolyzed production in Donawitz. You will see in 2030, shutdown of 2 blast furnaces and the sinter plant, which is, by the way, a very positive effect because you have no repair and maintenance anymore, and you have a reduction of employees. Of around 450 people, which is then a part of this economic valuation of this project.

Speaker #1: And these are the 100 million the rest is already already invested and part of the capex of the first step.

Speaker #2: And, and in it.

Speaker #1: So, and yes, with this 100 million, you get a, a, a, a fully, fully electrolyzed, production in Donowitz. And, you will see in 2030, shutdown, of, two blast furnaces and a center plant, which is, by the way, the pos a very positive effect because, you have no repair and maintenance anymore.

Speaker #1: And you have, a reduction, of employees. Of around 450 pe-people, which is then, a part of this, economic valuation of this project.

Speaker #2: And what is very positive that we actually have a lot of experience now in, in, in doing such big projects, if you will, if you will, we feel very comfortable with this 100 million also from this regard.

Herbert Eibensteiner: What is very positive that we actually have a lot of experience now in doing such big projects. We feel very comfortable with this EUR 100 million also from this regard. I would like to add something to your question from before, this cost savings in Metal Forming Division. I think I said EUR 50 million roughly from day one. We are more at EUR 70 million at the moment. If you look at this 400 people less, this add up roughly to EUR 40 million savings this year. This is what you will see. What I also would like to reconfirm here is, what we guided last time and/or the last 2, 3 times is that we will see, and this is our clear plan, an EBITDA of EUR 400 million plus minus end of 2028, 2029. This is unchanged for both divisions, for HPM and for Metal Forming Division.

Speaker #2: But I would like to add something from, from you to your question. from before this, this, cost savings in, in, metal forming. I think I, I said, 50 million roughly from day one.

Speaker #2: We are more at 70 million at the moment. So if you look at this 400 people less, this add up, roughly to 40 million savings this year.

Speaker #2: So it is—this is what you will see. And what I also would like to reconfirm here is what we guided last time, and over the last two, three times, is that we will see—and this is our clear plan—an EBITDA of €400 million, plus or minus, at the end of '28, '29.

Speaker #2: This is unchanged for both divisions, for HPM and for metal forming.

Speaker #4: Thank you. Very clear.

Dominic O'Kane: Thank you. Very clear.

Speaker #2: The next question comes from Patrick Steiner from Auto BHF. Please go ahead.

Operator 2: The next question comes from Patrick Steiner from ODDO BHF. Please go ahead.

Operator: The next question comes from Patrick Steiner from ODDO BHF. Please go ahead.

Speaker #5: good afternoon, Patrick Steiner speaking. Two questions from my side. firstly, can you give us maybe more, information on what you see in terms of customer inventories?

Patrick Steiner: Good afternoon, Patrick Steiner speaking. Two questions from my side. Firstly, can you give us maybe more information what you see in terms of customer inventories? I mean, how long would it take in your view to revert back to normalized levels and which businesses do you see the most pronounced increases in inventories prior to these regulatory measures having come into effect? It's the first one. The second one, I think you've answered this already. I'm asking again, maybe give us a bit more information on the restructure related part. Basically, can you give us a few figures on the restructuring one-offs going forward, you expect to realize and how much of annual costs you're planning to take out on a group level? Thanks.

Speaker #5: I mean, how long do you think it would take to revert back to normalized levels, and which businesses do you see with the most pronounced increases in inventories prior to these regulatory measures having come into effect?

Speaker #5: The first one. The second one, I think you've, you've answered this already. I'm asking again, maybe, maybe to give us a bit more, more information on the, on the restructuring related part is basically, can you give us, give us a, a, a, a few figures on the, on the restructuring one-offs going forward?

Speaker #5: You expect to realize, and how much of annual costs you're planning to take out on a group level. Thanks.

Gerald Mayer: Restructuring, I would like to add, as I said before, EUR 16 million. This is what we booked and recognized this quarter. In the long run, well, let's say within, I would say, I would expect from next year onwards, you will see roughly a releasing cost in a similar magnitude of EUR 16 million per annum. This is the outcome there. The rest has to do with, I think I mentioned it before, that I said with the consolidation of our warehouse activities and so on, we are reorganizing. Also there, this has then to do with, let's say, taking down the value of certain stocks we have in these warehouses, and this was also recognized, and this is no additional one also expected. Customer inventories to add this now, when will it normalize? Our take there is after summer.

Speaker #1: restructuring, I would like to add, as I said before, 16 million. This is what we, what we, booked and, and recognized, this quarter. And in the long run, well, let's say within, I would say I would expect next from next year onwards, you will see roughly, a release in cost in a similar magnitude of 16 million dynam.

Speaker #1: so this is, the, the, the outcome there and the rest has to do, with, I would say with, and I, I think I mentioned it before, that I said, with the consolidation of our warehouse activities and so on, we are reorganizing also there.

Speaker #1: This has then to do with, let's say, taking down the value of, of certain stocks we have in this warehouses and this was also recognized and this is no additional one-offs expected.

Speaker #1: And customer inventories to, to add this now, how when will it normalize our take there is after summer.

Speaker #5: Perfect. Thank you very much.

Patrick Steiner: Perfect. Thank you very much.

Speaker #1: Your customer inventories, it's, it's always difficult, difficult to say, but, on the one hand, we have the, we have the first, the, the first questions and discussions with some customers, customers, which are, want to buy, want to buy earlier, earlier in expect, in expectation of higher prices, till the end of the year.

Herbert Eibensteiner: Your customer inventories, it's always difficult to say. On the one hand, we have the first questions and discussions with some customers, which want to buy earlier in expectation of higher prices till the end of the year. On the other hand, we know that some steel service centers are more or less fully booked. From experience and what we see in our customer base, I would say normalizing October, November.

Speaker #1: On the other hand, we know that, that, that some, steel service centers are, more or less, fully booked. So from experience and what we, what we see, in, in our customer, customer base, I would say, normally, normalizing, October-November, two months, three months, in, in, in, in autumn.

Gerald Mayer: 2 months.

Herbert Eibensteiner: 2 months, 3 months in autumn. I think we will see, and this would be positive because for the January price discussions, this would be a very good environment to go into that negotiation with such a scenario.

Speaker #1: And I think we, we will see a, and, and this would be positive because for the, for the January, discussions, price reduction, price discussions, this would be a very, a very good environment to go into that, negotiation.

Speaker #1: With such, with such a scenario.

Speaker #5: Perfect. Understood.

Patrick Steiner: Perfect. Understood.

Speaker #2: The next question comes from Bastian Dinagovitz from Deutsche Bank. Please go ahead.

Operator 2: The next question comes from Bastian Synagowitz from Deutsche Bank. Please go ahead.

Operator: The next question comes from Bastian Synagowitz from Deutsche Bank. Please go ahead.

Bastian Synagowitz: Yeah. Hi, good afternoon, all. Thanks for taking my questions. I've got two quick ones left. Maybe the first one, starting off on steel and the clad plate business in particular. Is this a situation where there's a growing volume of pent-up demand? What are the indications you're currently getting from your customers? Do you have any visibility on, I guess, when the order pipeline may fill back up? Maybe you can give us an update here and a bit more color on how you're seeing the market. Secondly, on Metal Engineering, I guess with Tubulars, you have a business which has roughly EUR 1 billion in sales and ties up quite a bit of capital as well, but it's currently not yielding any major return.

Speaker #6: Yeah, hi. Good afternoon, all, and thanks for taking my questions. I've got two quick ones left. Maybe the first one, starting off on steel and the cladded plate business in particular.

Speaker #6: Is this a situation where there's a growing volume of pent-up demand? And what are the indications you're currently getting from your customers? Do you have any visibility on, I guess, when the order pipeline might fill back up?

Speaker #6: maybe you can give us an update here in a bit more color and on how you're seeing the market. And then secondly, on metal engineering, I guess with seamless, you have a business which has roughly a billion in sales and ties up quite a bit of capital, as well, but it's currently not yielding any major return.

Bastian Synagowitz: Secondly, on Metal Engineering, I guess with Tubulars, you have a business which has roughly EUR 1 billion in sales and ties up quite a bit of capital as well, but it's currently not yielding any major return. What other than policy change can help the business to turn around, and how confident are you to improve the performance, or would you consider a sale if this cannot be fixed? Those are my questions.

Speaker #6: So, what other than policy change can help the business to turn around? And how confident are you in improving the performance, or would you consider a sale if this cannot be fixed?

Bastian Synagowitz: What other than policy change can help the business to turn around, and how confident are you to improve the performance, or would you consider a sale if this cannot be fixed? Those are my questions.

Speaker #6: Those are my questions.

Gerald Mayer: You are talking about Tubulars business, I assume.

Speaker #1: for, for you, you are talking about tubeless business. I assume and in. In tubeless, I, I have to, to, to can share with you that we are on a mode we, we do not burn money, actually, there.

Bastian Synagowitz: Correct.

Gerald Mayer: In Tubulars, I can share with you that we are on a mode, we do not burn money actually there. Not in Q1, it was perhaps a slightly very small single digit number where we were in the red. For the forecast, we are absolutely optimistic that we do not burn money at all. We will still generate cash flow. We are in a mode where we guide and this, let's say, ship through this storm. Of course, what we see also there is we expect picking up prices in the US, which is a main market. We have this issue and this war in Middle East. Actually, we assume that this could be very positive as soon as it will not end up just in a ceasefire, but when the war stops.

Herbert Eibensteiner: In Tubulars, I can share with you that we are on a mode, we do not burn money actually there. Not in Q1, it was perhaps a slightly very small single digit number where we were in the red. For the forecast, we are absolutely optimistic that we do not burn money at all. We will still generate cash flow. We are in a mode where we guide and this, let's say, ship through this storm. Of course, what we see also there is we expect picking up prices in the US, which is a main market. We have this issue and this war in Middle East. Actually, we assume that this could be very positive as soon as it will not end up just in a ceasefire, but when the war stops.

Speaker #1: not in Q1 and, and, and it was perhaps a, a, a small, single digit, number where we were in the red. but, and for the forecast, we are absolutely optimistic that we do not, burn money at all.

Speaker #1: We will see, we will still generate a cash flow. So, we are in a mode where we guide and, let's say, ship through this, through this storm.

Speaker #1: And of course, we are what we see also there is some we expect picking up prices in the US, which is a main market.

Speaker #1: We have this issue and this war, in, in Near East. And, and actually, we assume that, this could be, very positive as soon as it will not end up just in a ceasefire, but when the war stops.

Speaker #1: So, I would say there's a lot of opportunities there. And we managed to set up a company there by reducing one shift and so on, and other measures, so that we do not burn money anymore.

Herbert Eibensteiner: I would say there's a lot of opportunities there, we managed to set up the company there by reducing one shift and so on, and other measures so that we do not burn money anymore at all. It's even so the case that we generate small amounts. Is there any time frame for this, Gerald, as to when you expect the run rates to improve from here? I think you cannot expect something now, simply listen to the politicians which are responsible to that. One day they tell us that there's a ceasefire, 2 weeks later they start to fire again. I think planability and visibility there is very limited. What we see is that demand is somehow picking up there, but of course, you cannot place orders.

Speaker #1: At all. It's even so the case that we generate small amounts.

Speaker #6: And is there any timeframe for this? Gerald, as to when you expect the run rates to improve from here?

Speaker #1: I think this is, you know, you cannot, you cannot expect something now and simply listen, to the politicians which are responsible to that. One day they tell us that this is a ceasefire, two weeks, later they start to fire again.

Speaker #1: and so I think plannability and, and, and visibility there is, is, is very limited. But what we see is that demand is, is, is somehow, picking up there.

Speaker #1: But of course, you you cannot place orders. It's even not possible to ship, let's say, materials to this area. so we simply have to wait.

Herbert Eibensteiner: It's even not possible to ship, let's say, materials to this area, we simply have to wait. This is the reason why we try to manage to have a company now which is not burning money. For us, I think it's a good investment, not a wait. Right. Thank you. On clad plates? Yeah. Clad plates. It's very similar to Gerald's explanation. We are now finishing the old clad plates orders. There are a couple of projects out in the market which are more or less postponed till the environment has improved. It's mostly deep-sea gas pipelines and so on. Also coming from those areas, as long as bombs are falling, I think there is no pickup. All those projects are still alive. What we hear from them, they are just waiting for the right time to start it again.

Speaker #1: But this is the reason why we, tried to manage to have a company now which is not burning money, and, and, for us, I, I think it's a good investment, not a wait.

Speaker #6: Right. Thank you. And on cladded plate?

Speaker #1: Your cladded plate is, it's, it's, it's very similar to, to, to, to, to Gerald's, s, explanation. you know, all this, all this, so we are now fin we are now finishing the, the, the old cladded plates, orders.

Speaker #1: and, you know, there are a couple of, of projects out in the market which are more or less postponed, till the, the environment, is has improved.

Speaker #1: It's mostly, deep sea, deep sea, gas pipelines and so on. And, and also, coming from, from, from those areas. And as long as, as bombs, bombs are falling, I think, there is no pickup.

Speaker #1: But all those, all those projects are still alive. what we hear from them, they are just waiting, for the, for the right time, to start it, to start it again.

Speaker #1: and, you know, maybe, because Gerald said it, similar in, in tubulars, what we hear is that the first tenders are starting together with local, with local suppliers here and there.

Herbert Eibensteiner: Maybe because Gerald said it similar in Tubulars, what we hear is that the first tenders are starting together with local suppliers here and there. That's also a clear sign that, as soon as we have a ceasefire or at the end of this war, there are so many projects which are waiting, unfortunately, there are so much to repair. I think that will be good business for voestalpine in that context, in both businesses. Understood. Thank you.

Speaker #1: And that's also a, a clear sign that, as soon as we have a, a, a ceasefire or, or, or an end of this, of this, of this war, there are so many projects, which are, which are waiting.

Speaker #1: And unfortunately, there is so many to repair. So much to repair. I think that will be, good business, for Feustalpine, in that context. In both businesses.

Speaker #6: Understood. Thank you.

Speaker #2: As a reminder, if you wish, we just for question, please press star and on the telephone. You now have the question from Tomaso Castelo from Jefferies.

Operator 2: As a reminder, if you wish to register for a question, please press star and 1 on the telephone. We now have the question from Tommaso Polli from Jefferies. Please go ahead.

Operator: We now have the question from Tommaso Polli from Jefferies. Please go ahead.

Speaker #2: Please go ahead.

Speaker #5: Good afternoon and thanks for taking the time to answer to my question. I have a couple of follow-ups. and I apologize if you've already touched on this, but I just wanna make sure that I get it right.

Tommaso Polli: Good afternoon, thanks for taking the time to answer to my question. I have a couple of follow-ups. I apologize if you already touched on this, but I just want to make sure that I get it right. The first is on your reorganization efforts at your HPM Division. If we think about the post reorganization and excluding one-offs, what do you think it's a realistic medium term EBITDA run rate that the business can sustain? What, I know you've already spoken about figure there, but I don't think I got it right, what restructuring actions still need to be executed to get there? Then the second on autos, because I think in your opening remarks, you were saying that there is a very positive environment for steel sheets but struggling with components. How do you explain this discrepancy coming from automotive?

Tommaso Castello: Good afternoon, thanks for taking the time to answer to my question. I have a couple of follow-ups. I apologize if you already touched on this, but I just want to make sure that I get it right. The first is on your reorganization efforts at your HPM Division. If we think about the post reorganization and excluding one-offs, what do you think it's a realistic medium term EBITDA run rate that the business can sustain? What, I know you've already spoken about figure there, but I don't think I got it right, what restructuring actions still need to be executed to get there? Then the second on autos, because I think in your opening remarks, you were saying that there is a very positive environment for steel sheets but struggling with components. How do you explain this discrepancy coming from automotive? Thank you very much.

Speaker #5: The first is on your reorganization efforts, at your HPM division. So if we think about the post-reorganization and excluding one-offs, what do you think is a realistic medium-term EBITDA run rate that the business can sustain?

Speaker #5: And what, I know you have already spoken about figure there, but I don't think I got it right. what, restructuring actions still need to be executed to get there?

Speaker #5: And then the second on autos. 'Cause I think in your opening remarks, you were saying that there is a very positive, environment for, for steel sheets, but struggling with, components.

Speaker #5: So how do you explain this, discrepancy coming from automotive? Thank you very much.

Tommaso Polli: Thank you very much.

Speaker #1: I take the restructuring question and, and, and HPM. So what, what I mentioned, I can reconfirm that in, in two years from now. So means in our business year 28, 29, we expect 400 million, EBITDA.

Gerald Mayer: I take the restructuring question in HPM. What I mentioned, I can reconfirm that in 2 years from now. Means in our business year 2028, 2029, we expect EUR 400 million EBITDA. This is then hopefully back to normal, and we are very confident to get there, because looking at the numbers and the performance as of today, I think we are on the right way. We recognized EUR 16 million in the Q1 in terms of additional restructuring, this is mainly it. The rest was more valuation stuff which had to do with the reorganization of warehouses and so on. It's also part of this exercise, and we do not expect material additional restructuring costs and efforts to be undertaken for the rest of the year or in the next year. Smaller stuff might happen, but nothing material.

Speaker #1: So this is then, hopefully, back to normal. And we are very confident to get there because, looking at the numbers and the performance as of today, I think we are on the right way.

Speaker #1: we recognize 16 million in the first quarter in terms of additional restructuring. And this is mainly it. and, and the rest was more val-valuation stuff which had to do with the reorganization of warehouses and so on.

Speaker #1: But it's also part of this exercise. And we do not expect material additional restructuring costs and efforts to be undertaken for the rest of the year or in the next year.

Speaker #1: Smaller stuff might happen, but material. You are, to your second, to your, second question. Steel sheet, is good. Why is that, the case? it's, very easy.

Herbert Eibensteiner: To your second question, steel sheet is good. Why is that the case? It's very easy. We deliver to every single OEM, which is producing in Europe. When one is struggling, the other take over the volume. It's equal. We are thinking in 12 million cars in Europe, and we deliver to all of them. As I mentioned at the beginning, we gained market share because of some logistic issues or quality issues of other suppliers, and it's beneficial for us. When it comes to components, you have the 6 years contract with special models. In our case, we are very focused on German OEMs, That's the reason why we have to follow their volume demands, and these demands are weaker than expected. This is the difference. Because of that, on the one hand, we have a positive forward business.

Speaker #1: We deliver to every, every single OEM, which is, producing in Europe. So when one is struggling and the other take over the volume, so it's equal.

Speaker #1: So we are thinking in 12 million, cars in Europe and we deliver to all, all of them. And as I mentioned at the beginning, we gained market share because of some logistic issues or quality issues, of other suppliers.

Speaker #1: And we, it's beneficial for us. And when it comes to components, you know, you have the six-year contracts with special models. And in our case, we are very focused on German OEMs, and that's the reason why we have to follow their volume demands.

Herbert Eibensteiner: That's the reason why we have to follow their volume demands, and these demands are weaker than expected. This is the difference. Because of that, on the one hand, we have a positive forward business. On the other hand, we have to adapt to the lower volumes to secure our results and to save money. One thing is to gain market share, and the other part in components, we see that we have to do this restructuring and adapt, unfortunately, to the lower volumes we get at the moment.

Speaker #1: And, and these, demands are weaker than expected and this is the, the, the, the difference, because of that. On the one hand side, we, we, we, we, we have a positive, forward, business.

Speaker #1: And on the other hand, we have, to adapt, to the lower volumes, to, to secure, to secure, our results. And that's and to save money and this is one thing is to gain market share and the other, the other part in components, we see that to have to do this restructure restructuring and adapt to the lower to the unfortunately to the lower volumes, we get at the moment.

Herbert Eibensteiner: On the other hand, we have to adapt to the lower volumes to secure our results and to save money. One thing is to gain market share, and the other part in components, we see that we have to do this restructuring and adapt, unfortunately, to the lower volumes we get at the moment.

Speaker #5: Thank you very much for both, answers. Very helpful.

Tommaso Polli: Thank you very much for both answers. Very helpful.

Tommaso Castello: Thank you very much for both answers. Very helpful.

Operator 2: There are no more questions at this time. I would now like to turn the conference back over to Dino Malkic for any closing remarks.

Operator: There are no more questions at this time. I would now like to turn the conference back over to Dino Malkic for any closing remarks.

Speaker #2: There are no more questions at this time. I would now like to turn the conference back over to Dino Malkic for any closing remarks.

Speaker #4: First of all, thank you for attending the call. Thank you for the interesting questions and discussions. Should you have any further questions, please feel free to contact myself or my team.

Dino Malkic: First of all, thank you for attending the call. Thank you for the interesting questions and discussions. Should you have any further questions, please feel free to contact myself or my team. We will make sure to come back to you shortly. I want also to take the opportunity and to invite you one more time to our Capital Markets Day in Berlin on 22 September. Many of you have already registered, but we would like to see everybody in Berlin with us. Otherwise, I wish you a wonderful rest of the summer, and thanks again. Goodbye.

Speaker #4: we will make sure to come back to you shortly. And I want also to take the opportunity and to invite you one more time to our capital markets day, in Berlin on September 22nd.

Speaker #4: Many of you have already registered, but we would like to see everybody in Berlin with us. Otherwise, I wish you a wonderful rest of the summer, and thanks again.

Speaker #4: Goodbye.

Speaker #1: Thank you. Bye-bye.

Herbert Eibensteiner: Thank you. Bye-bye.

Speaker #5: Thanks. Bye.

Dino Malkic: Bye.

Operator 1: voestalpine, one step ahead.

Operator: Voestalpine, one step ahead.

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