EQS-Adhoc

voestalpine AG: voestalpine plans to sell Buderus Edelstahl and reorganizes Automotive Components business in Germany resulting in one-off write-downs of around EUR 410 million

EQS-Ad-hoc: voestalpine AG / Key word(s): Profit Warning voestalpine AG: voestalpine plans to sell Buderus Edelstahl and reorganizes Automotive Components business in Germany resulting in one-off write-downs of around EUR 410 million 14-March-2024 / 15:01 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. voestalpine plans to sell Buderus Edelstahl and reorganizes Automotive Components business in Germany resulting in one-off write-downs of around EUR 410 million

The Management Board of voestalpine AG is reacting to the changed economic conditions for industrial manufacturing companies and is reorganizing production sites in Germany. This step is a consistent implementation of voestalpine Group's strategy of focusing the materials business on the highest quality spectrum and expanding the downstream business in promising global segments.

Buderus Edelstahl in Germany (High Performance Metals Division)

Following the restructuring steps already taken in the past, the Management Board of voestalpine AG has decided to transfer the strategic process initiated to reposition Buderus Edelstahl into a sales process. According to this, the division is concentrating its product portfolio on the high-tech segment of special materials and reducing the production share of tool steel and engineering steel in the standard grade area.

This sale and impairment losses in the High Performance Metals Division will result in negative one-off effects on earnings (EBIT) of about EUR 340 million. Around EUR 90 million of this will also affect EBITDA.

The resulting optimization of the product portfolio strengthens the High Performance Metals division's competitive position.

Business segment Automotive Components in Germany (Metal Forming Division)

In Automotive Components, the management is maintaining its internationalization strategy, but is making targeted adjustments in response to the structural underutilization of capacity in the automotive supply industry in Germany. The management has already responded by consolidating the production network, including the sale of the production site in Nagold, Germany.