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voestalpine Capital Allocation Priorities

Increases transparency, enhances predictability, and thereby supports the execution of Strategy 2030+.

  • Optimizing Capital Structure
    We aim to maintain an optimal capital structure in line with our desired credit rating, business valuation as well as market expectation.

  • Decarbonization
    The step-by-step transformation of our business model toward low-carbon production requires investment over the coming years.

  • Growth
    We target value-enhancing growth through focused investments and acquisitions, particularly within downstream-oriented segments and selected geographical regions.

    Group-Level Profitability Targets:
    ROCE >12%
    EBITDA margin 14%
  • Shareholder Distribution
    Continuous participation of shareholders in the company's success through a target payout ratio of 30% of earnings per share (EPS) including a minimum dividend of EUR 0.40 per share, providing stability and predictability across earnings cycles.

     



  • A. Credit Profile

    • An investment-grade-conform credit profile ensures stable and cost-efficient access to capital, which is essential for capital-intensive industries.
    • Although we currently do not have an external rating, our internal financial constitution requires us to maintain an implicit BBB credit rating on a “through-the-cycle” basis.

    B. Value Optimization

    • The right mix of equity and debt optimizes the weighted average capital costs (WACC).
    • Optimized capital costs increase strategic flexibility and sustainably increase the value of the company.

    C. Peer Benchmarking

    • Investors compare capital structures within selected industries and tend to avoid companies with above-average debt.
    • Peer benchmarking is important in order to remain attractive to investors and secure access to capital.

     

  • Our step-by-step approach is minimizing risk, maximizing investment certainty – with manageable capital intensity and strong CO₂ impact.

    The first step of our decarbonization strategy has been approved and is already in implementation. The next phases of the transformation are currently undergoing in-depth evaluation. In this process, we carefully assess all available technological options in light of regulatory developments, market conditions, and economic considerations based on life-cycle cost analyses (LCCA). Our guiding principle is to implement only those measures that are both environmentally and economically sustainable.

     

    TIMEFRAME TRANSFORMATION SHARE OF DECARBONIZED OUTPUT* PATHWAY TO NET ZERO
    by 2027 5 Blast Furnaces 52 %  
    2027-30 3 Blast Furnaces, 2 EAFs 65 % Step 1:
    Replace 2 blast furnaces with 2 electric arc furnaces (EAFs).

    volume: EUR 1,5 bn.

    > currently being implemented

    2030-35 1 Blast Furnace, 3 EAFs 80 % Step 2:
    Decommissioning of two additional blast furnaces and replacement with an additional EAF is currently planned; a definitive decision is expected within the next 2–3 years.   

    > not fixed yet
    2035-50

    3 EAFs + 1 EAF / Smelter

    + various options:

    H2-DRI-process, Hyfor, SuSteel, CCU/CCS/sector coupling,…

    100 % 
    net zero
    Step 3:
    Final transition to CO2-neutral steel production via best available technological and economical solution.

    > not fixed yet

    * Based on business with no material Scope 1 and Scope 2 emissions (measured with revenue).

    > Find more information regarding greentec steel

    • Steel Production
      Focus on decarbonization, technological advancement, quality and innovation.

    • Metal Processing
      We strive to expand our leading market positions and secure them through innovation, while also enhancing value chain integration.

      Growth Strategy:

      - Continued participation in high potential growth markets
      - Globalization strategy (e.g. targeting Asian markets while reducing European footprint)
      - Local for local approach
      - Innovation in product and service area

    • Group Level Profitability Targets
      ROCE >12%
      EBITDA margin 14%

    • Portfolio Development
      M&A initiatives aimed at increasing value, as well as systematic restructuring and reorganization to increase strategic focus, efficiency and value contribution.
  • 1. Minimum Dividend

    • A reliable and consistent minimum payout.
    • Not dependent on short-term earnings volatility.
    •  0,40 EUR/share underlines strong commitment.
    • Increases the payout ratio above the 30% target ratio in years with weaker results.

    2. Target Payout Ratio

    • Target payout: 30 % of earnings per share.
    • Additional distributions only if leverage (Net Debt/EBITDA) remains below 2 after payout.
    • Additional distribution via dividends and/or share buybacks possible, depending on debt capacity.

    Review Period:
    The policy is valid for a period of four years. Regular reviews ensure that the dividend policy is continuously adapted to strategic objectives and changing market conditions.



    The dividend policy reflects the volatility of a cyclical business and is designed to support the maintenance of an investment-grade profile.