ANNUAL REPORT 2000/2001

VOEST-ALPINE STAHL AG ANNUAL REPORT 2000/2001 VISIONS OF STEEL

VOEST-ALPINE STAHL-GROUP KEY FIGURES 1995 HGB 1996 HGB 1997/1998 IAS 1998/1999 IAS 1999/2000 IAS 2000/2001 IAS EUR millions EUR millions EUR millions EUR millions EUR millions EUR millions Turnover 2,456.1 2,290.6 2,518.0 2,581.9 2,711.7 3,166.1 Operating result before depreciation (EBITD) 350.6 258.1 339.9 356.6 354.3 478.1 Operating result (EBIT) 221.2 123.2 166.2 167.8 153.0 258.3 Result from ordinary activities (EGT) 236.7 147.6 152.8 147.1 163.9 247.1 Net profit 223.2 122.7 118.7 108.4 128.9 179.1 Balance sheet total 2,178.3 2,292.7 2,838.1 3,071.3 3,123.3 3,401.2 Cash-flow from operations 189.4 298.2 448.6 362.3 259.3 388.7 Investments in tangible and intangible assets and interests 206.8 329.2 276.4 429.7 292.5 319.0 Depreciation 129.4 134.9 173.7 188.7 201.3 219.8 Shareholders equity 943.6 1,022.2 1,272.4 1,343.8 1,430.0 1,529.5 Net financial debt 218.5 196.5 133.0 244.2 286.4 251.7 Net financial debt as a % of equity 23.2 % 19.2 % 10.5 % 18.2 % 20.0 % 16.5 % Return on Capital Employed (ROCE) 16.0 % 8.5 % 10.6 % 9.0 % 7.8 % 12.1 % EBITD margin 14.3 % 11.3 % 13.5 % 13.8 % 13.1 % 15.1 % EBIT margin 9.0 % 5.4 % 6.6 % 6.5 % 5.6 % 8.2 % Employees excl. apprentices (period end) 15,059 14,795 14,416 16,179 15,228 15,658 Crude steel production (in million metric tons) 4.55 4.05 4.85 4.70 4.79 5.30 Market capitalization period end 693.0 924.0 1,367.0 947.5 1,072.5 967.7 Number of shares 33,000,000 33,000,000 33,000,000 33,000,000 33,000,000 31,676,700 End of period share price 21.00 27.99 41.42 28.71 32.50 30.55 Earnings/share (EPS) - 3.72 3.60 3.28 3.91 5.60 Dividend/share 0.94 0.87 1.09 1.20 1.20 1.20 1) Bonus/share - - - - - 0.70 1) 1) As proposed to the Annual General Shareholders Meeting The (short) financial year 1997 (1/1/1997 to 31/3/1997) yielded a group turnover of EUR 574.7 millions, EBITD of EUR 65.6 millions, EBIT of EUR 27.3 millions and an annual net profit of EUR 46.7 millions.

VOEST-ALPINE STAHL AG ANNUAL REPORT 2000/2001

VOEST-ALPINE STAHL-GROUP HIGHLIGHTS OF THE 2000/2001 BUSINESS YEAR VOEST-ALPINE STAHL-GROUP FLAT PRODUCTS DIVISION - A turnover of EUR 3,166.1 millions, an operating result (EBIT) of EUR 258.3 millions, an ordinary result (EGT) of EUR 247.1 millions and a cash-flow of EUR 388.7 millions represent historic record levels. - The EBITD margin of 16.5 % and the EBIT margin of 9.7 % represent new record values. - The crude steel production at the site in Linz reaches 4 million metric tons for the first time. - The 5.3 million metric tons crude steel (a 10 % increase over the prior year) are a record volume, shipped volume increased by 5.5 % to 5.18 million metric tons. - Emphasis is on the downstream strategy through the acquisition of the Swiss-German ROTEC Group, the investment in the Italian stamping and assembly plant TURINAUTO as well as the majority investment in the Italian tailored blanks manufacturer EUROWELD. - The EBITD margin of 15.1 % and the ROCE of 12.1 % correspond to the financial targets of VOEST-ALPINE STAHL-Group. - The investment in a third hot-dip galvanizing plant and a second strip coating facility in Linz is approved (total investment volume: EUR 142 millions). - The business areas forge, heavy plate and logistics are spun-off. - Acquisitions in several European countries represent an additional push towards internationalization, a new investment in a company is anticipated. - A new pre-finishing center commences operations, and - The industrial center of expertise for mechatronics and automation is inaugurated. - VOEST-ALPINE STAHL AG initiates the first Corporate Venture Capital Fund in Austria. LONG PRODUCTS DIVISION - The EBITD margin of 12.1 % and the EBIT margin of 5.2 % are at record levels. - The new LD compact steel mill in Donawitz achieves cost leadership within the integrated long products manufacturers. - After a start-up phase of only six months the LD compact steel mill in Donawitz achieves record production. - A record is achieved with the approximately 300,000 metric tons of seamless pipe produced in Kindberg. 4 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 5

VOEST-ALPINE STAHL-GROUP STRUCTURE VOEST-ALPINE STAHL AG VOEST-ALPINE STAHL LINZ GMBH FLAT PRODUCTS VOEST-ALPINE STAHLHANDEL GMBH VOEST-ALPINE STAHL SERVICE CENTER GMBH VOEST-ALPINE GROBBLECH GMBH VOEST-ALPINE GIESSEREI LINZ GMBH VOEST-ALPINE GIESSEREI TRAISEN GMBH VOEST-ALPINE SCHMIEDE GMBH LOGISTIK SERVICE GMBH VOEST-ALPINE INDUSTRIAL SERVICES GMBH (50 %) VOEST-ALPINE KREMS GMBH VOEST-ALPINE KREMS FINALTECHNIK GMBH SADEF N.V. METSEC PLC VOEST-ALPINE PROFILFORM S.R.O. ROLL FORMING CORPORATION PRÄZISIONS-PROFIL GMBH VOEST-ALPINE EUROPLATINEN GMBH & CO KG EUROWELD S.R.L. (51 %) ROTEC GMBH VOEST-ALPINE SCHIENEN GMBH & CO KG LONG PRODUCTS VOEST-ALPINE STAHL DONAWITZ GMBH VOEST-ALPINE AUSTRIA DRAHT GMBH VOEST-ALPINE STAHLROHR KINDBERG GMBH & CO KG (50 %) VAE AG (45.5 %) VOEST-ALPINE KLÖCKNER BAHNTECHNIK GMBH (51 %) VOEST-ALPINE EUROSTAHL GMBH INTERNATIONAL SALES ORGANIZATION SALES COMPANIES: BELGIUM DENMARK GERMANY FRANCE GREAT BRITAIN ITALY YUGOSLAVIA CROATIA NETHERLANDS NORWAY POLAND SWITZERLAND SWEDEN SLOVENIA CZECH REPUBLIC HUNGARY USA REPRESENTATIVE OFFICES: RUSSIA UKRAINE TURINAUTO S.P.A. (33 %) VOEST-ALPINE ROHSTOFFHANDEL GMBH VOEST-ALPINE ROHSTOFFBESCHAFFUNGS-GMBH STATUS: 1/4/2001

EXECUTIVE BODIES OF THE COMPANIES SUPERVISORY BOARD Prof. Dipl.-Ing. Dr. RUDOLF STREICHER Chairman of the Supervisory Board of VOEST-ALPNE STAHL AG Former Chairman of the Österreichische Industrieholding AG Managing Board Em. o. Univ.-Prof. Dr. h.c. RUDOLF STRASSER Deputy Chairman of the Supervisory Board of VOEST-ALPINE STAHL AG Johannes Kepler University of Linz KR Dkfm. Dr. ERICH BECKER Member of the Supervisory Board of VOEST-ALPINE STAHL AG Chairman of the VA Technologie AG Managing Board Mag. Dr. JOHANNES DITZ Member of the Supervisory Board of VOEST-ALPINE STAHL AG Speaker of the Österreichische Industrieholding AG Managing Board KR Bergrat h.c. Dipl.-Ing. Dr. JOSEF FEGERL Member of the Supervisory Board of VOEST-ALPINE STAHL AG Member of the Supervisory Board of MIBA AG KARL HAAS Member of the Supervisory Board of VOEST-ALPINE STAHL AG General Secretary for the Trade Union of the Metal and Textile Sectors KR Dkfm. KARL HOLLWEGER Member of the Supervisory Board of VOEST-ALPINE STAHL AG Former Chairman of the Österreichische Industrieholding AG Managing Board Dr. STEFAN KRALIK Member of the Supervisory Board of VOEST-ALPINE STAHL AG Notary Public Dr. JOACHIM LEMPPENAU Attorney at law, Member of the Supervisory Board of VOEST-ALPINE STAHL AG Chairman of the Managing Boards of Volksfürsorge Holding AG, of Volksfürsorge Deutsche Lebensversicherung AG, and of Volksfürsorge Deutsche Sachversicherung AG KR Dr. LUWDIG SCHARINGER Member of the Supervisory Board of VOEST-ALPINE STAHL AG CEO of Raiffeisen-Landesbank Oberösterreich ERHARD KOPPLER Member of the Supervisory Board of VOEST-ALPINE STAHL AG (until 10/6/2000) Former Chairman of the VOEST-ALPINE STAHL LINZ GmbH Works Council HELMUT OBERCHRISTL Member of the Supervisory Board of VOEST-ALPINE STAHL AG Chairman of the VOEST-ALPINE STAHL LINZ GmbH Works Council JOSEF KRONISTER Member of the Supervisory Board of VOEST-ALPE STAHL AG (since 10/6/2000) Chairman of the VOEST-ALPINE STAHL LINZ GmbH Works Council for Wage Earners Ing. FRITZ SULZBACHER Member of the Provincial Parliament Chairman of the VOEST-ALPINE STAHL LINZ GmbH Works Council for Salaried Staff JOSEF GRITZ Member of the Supervisory Board of VOEST-ALPINE STAHL AG Chairman of the VOEST-ALPINE STAHL DONAWITZ GmbH Works Council for Wage Earners JOHANN HEILIGENBRUNNER Member of the Supervisory Board of VOEST-ALPINE STAHL AG Chairman of the VOEST-ALPINE STAHL AG Works Council for Salaried Staff

EXECUTIVE BODIES OF THE COMPANIES MANAGING BOARD Dr. PETER STRAHAMMER Born 1944, married, 3 children Dkfm. FRANZ STRUZL Born 1942, married, 2 children Dr. WOLFGANG EDER Born 1952, married, 2 children Dr. WERNER HAIDENTHALER Born 1944, married, 3 children President and Chairman of the Managing Board of VOEST-ALPINE STAHL AG Areas of responsibility within the Group: International Sales Organization, M&A Activities Group Development Strategic Human Resource Management (including top management) Group Communications Audit Deputy Chairman of the Managing Board of VOEST-ALPINE STAHL AG Management of the Long Products Division Areas of responsibility within the Group: Group Treasury Sourcing Strategy Member of the Managing Board of VOEST-ALPINE STAHL AG Management of the Flat Products Division Areas of responsibility within the Group: Investor Relations Legal and Environmental Concerns R&D, Technological Strategy Member of the Managing Board of VOEST-ALPINE STAHL AG Areas of responsibility within the Group: Financial Statements Controlling Taxes Management Information Systems

INTRODUCTION OF THE CHAIRMAN OF THE SUPERVISORY BOARD During the 2000/01 business year, VOEST-ALPINE STAHL-Group has once again proven its excellent performance reporting excellent key ratios. It is quite obvious that the Group of companies has undergone one of the most astounding developments in recent Austrian industrial history. The development from a former nationalized company to a Group listed on the stock exchange that works very successfully is a success story widely noted nationally and internationally. It is the story of an institution that today is a renowned niche producer in the highest quality sector and furthermore the most profitable steel group in Europe. This extraordinary positioning is due to a multitude of factors. First, the ability to recognize the constantly changing demands of the market rapidly, to create a corresponding environment to enable targeted actions, and to be the competent partner and reliable problem solver of the customers through the creativity of all employees around steel. The Group, with its extraordinary strategic positioning in the center of Europe, today can no longer be viewed as solely a manufacturer of steel products of the highest quality, but ever more also as a supplier of components and systems offering full and just-in-time deliveries service to its business partners. These are only a few chapters written as part of the success story of VOEST-ALPINE STAHL during the past business year. All are measures that are simply necessary for the company to defend or achieve its market determining positions in its chosen areas of performance. They are actions that are supported in an exemplary manner by each individual company member. I am convinced that VOEST-ALPINE STAHL-Group, with its strategic measures to extend the value added chain and the continuous improvements in its product mix, is well prepared to make its mark in the difficult steel market of the future. Committed to the principles of shareholder value, the company continues to recommend itself as outstanding to long- and medium-term investors. I would like to take this opportunity to express my gratitude to all employees as well as to the management of VOEST-ALPINE STAHL-Group for the performance rendered. In the international steel business as well as on the capital markets in Europe and overseas their knowledge and willingness to perform are the most important prerequisites for the successful activities of the Group of companies. Another characteristic that distinguishes the Group is its consistent extending the value-added chain in coordination with its well balanced customer structure. Carefully and in a controlled manner more milestones were achieved through acquisitions during the past business year, on a global level; in the automotive sector, for instance, through the investments in TURINAUTO and EUROWELD and through the acquisition of ROTEC. RUDOLF STREICHER During the modernization and optimization investments of the 2000/01 business year all employees with their extraordinary expertise once again showed how necessary work can be performed on time and at reasonable cost. Successfully. After all, the Group during the period under review produced its largest volume of crude steel and the best result in company history. The next expansions in capacity are imminent in context with customer demands: the expansion of the tailored blanks production, the construction of a third hot-dip galvanizing plant and a second strip coating facility. That the Group in its core business area strategy shows a very good sense for which areas are to be spun-off and when they should be spun-off so that they can approach the customer successfully as independent company is evident from the examples of recent years. Three new companies are currently being established. 12 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 13

INTRODUCTION OF THE CHAIRMAN OF THE MANAGEMENT BOARD The best year ever in our corporate history and the new positioning of our Group of Companies - this is the best opportunity for an extensive review and lookout. During the 2000/01 business year we were able to continue the success story of our Group and to once again achieve new milestones. We have never before produced as much steel. We have never before achieved such high turnover. We have never before earned such high profits. The key data for the 2000/01 business year are: steel production increased by 10 % to 5.3 million metric tons, turnover increased by 17 % to EUR 3.166 billions. The operating result improved in comparison with the previous business year by nearly 70 % to EUR 258 millions. This surpasses the result for the 1995 business year (EUR 221 millions), our best result to date. The past business year has, therefore, become the best business year in the history of VOEST-ALPINE STAHL-Group; this in spite of the reversal in trend of the business cycle regarding price levels in the European steel industry during the fourth calendar quarter 2000. The reasons for this success can be found on several different levels: first in the fact that the VOEST-ALPINE STAHL Group of companies is a medium-sized group with clearly defined operative units that are able to rapidly react to the corresponding environment and to quickly and flexibly adapt to customer demands. Furthermore, the Group and its consistent upgrading of products and services proves that such a company policy can successfully counteract the cyclical downturns in the steel business cycle. In addition, strict cost management and continuous increases in productivity are of the highest priority for the Group. It was once again possible during the past business year to achieve cost reductions amounting to EUR 43 millions within the CIP program ( Continuous Improvement Program ). At the same time, the crude steel production of our company has exceeded the record mark of five million metric tons. These new production volumes were achieved through strict management of optimization in the existing plants in Linz and through the rapid start-up of the new compact LD steel mill in Donawitz. On the road from steel producer of highest qualities to a steel processing and finishing group of companies that works as a problem solver for the customer in all aspects, we have achieved additional milestones through acquisitions, investments in companies and joint ventures, as well as investments. The acquisition of a onethird interest in the Italian press shop and component plant TURINAUTO enables us to now also offer pressed car body components to the automobile industry. This lengthens our value added chain in the third dimension. It is planned to expand the business activities with TURINAUTO from its traditional customers to other European automobile manufacturers and thus grow in European dimensions. We have already reached this important interim goal in the tailored blanks production. The acquisition in the 2000/2001 business year of a 51 % interest in the Italian automobile supplier EUROWELD made VOEST-ALPINE EUROPLATINEN the number 2 in this segment in Europe. The acquisition of the Swiss-German ROTEC Group is another important step in the upgrading towards the automotive industry. ROTEC specializes in particular in the manufacture of precision steel pipe used as ready-to-install pipe products in automobile manufacturing. We would like to point out here that the recent acquisitions give us additional satisfaction because through them we were able to realize an additional sales volume of approximately EUR 500 millions. In addition, these steps towards vertical integration help us to further mitigate the fluctuations of the business cycle. However, our growth is not only fueled through acquisitions and the formation of partnerships, we have also taken additional steps towards the implementation of the core business strategy of our Group within our own company. Areas of which we were convinced that they could be successful in the marketplace presenting their own identity were spun-off. Effective 1/4/2000, the former business areas heavy plate, forge and logistics of VOEST-ALPINE STAHL LINZ GmbH became the companies VOEST- ALPINE GROBBLECH GmbH (heavy plate), VOEST-ALPINE SCHMIEDE GmbH (forge) and VOEST-ALPINE LOGISTIK SERVICE GmbH (logistics). Our dynamic development towards becoming a steel processing group will also have to be reflected in the structure of our Group, which will have to be newly established, as well as in a modified image. Following the strategy towards smaller units, that are easier to keep track of and are therefore easier to guide it is planned to transition the activities concerning the automobile from the lead company VOEST-ALPINE STAHL LINZ GmbH into a newly established automotive division. Simultaneously, the business activities concerning steel sections and profiles with their global manufacturing sites will be pooled in a steel sections and profiles division. We are also working towards forming a new division railroad systems around the activities concerning the steel track. Subject to the approval of the boards the work on the new structure of our Group will be completed at the end of September 2001. The strategy of our actions will of course continue to include flexibility and the openness towards the new. Especially for us as a niche player innovation and state-of-the- 14 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 15

art technology are extremely important, since they are essential factors for the success of our business. Even though the European steel industry on the whole utilizes state-of-the-art technologies and innovation characterizes the events, the sector is categorized as a traditional heavy industry and viewed as a typical example for the old economy. However, fact is that our Group, which to the utmost degree believes in high-tech systems for its production and manufactures high-tech products, avails itself of the achievements of the new economy and is active in a multitude of directions in this area. Our i2b (ideas to business) business plan is a platform for innovative ideas of the new economy. Through this platform new business ideas get the opportunity to reach a successful start-up with professional help. Promising ideas of students are promoted up to independence. In the sector venture capital, VOEST-ALPINE STAHL, together with the 3-Banken- Gruppe (three banks group) provides capital to innovative new economy companies through the Danube Equity Fund. Idea exchanges promoting innovative market development are not only for our benefit, but also enhance the attractiveness of Austria as an industrial site. A current example for the networking of university -, extra-university- and industrial facilities in the research and development sector is the establishment of the first Austrian industrial center of expertise for mechatronics and automation during the 2000/01 business year at the site in Linz. The targeted approach to sophisticated development projects, the inclusion of personnel from schools for applied sciences and universities are meant to provide incentive systems for upgrades, to increase mobility and to establish companies. ness to perform and their creative potential determine our success to the highest degree. In the modern processing group we are striving for, each individual will be even more able to shape the activities of the company: through creative potential, through motivating opportunities but also through participation in the company. For this reason VOEST-ALPINE STAHL AG purchased a block of 4.01 % of its own shares from VA Technologie AG in summer 2000 and took over 1 % of its share capital from the ÖIAG in April 2000. This block of own shares amounting to 5.01 % is now being transferred through our current employee share ownership program. I would like to take this opportunity to express my gratitude to all employees of the company for their performance rendered during the past business year and for their approval of the employee share ownership program. I would like to express my gratitude to all shareholders and business partners in the name of the Managing Board of VOEST-ALPINE STAHL AG for the trust placed in us during the 2000/01 business year. PETER STRAHAMMER The modern image of the steel industry, however, is almost not noticed by the European public. Even today the material steel is given anachronistic attributes: steel is traditional, archaic and pollutes the environment. Large parts of the European public do not want a future for the material. A correction of the image in general is needed. How attractive a material it can be and which valuable characteristics it can have has to be more strongly impressed on the public. Together with other European steel companies, therefore, a pan-european image campaign has been launched in the 2000/2001 business year, from which we hope to receive impulses towards an improvement in image. The main factor for the successful dynamics of our Group is and will remain its employees. They are the ones that make the transition from a steel company of tradition to a modern processing group possible and lend their support. Their willing- 16 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 17

REPORT OF THE MANAGING BOARD STATUS REPORT 2000/2001 STATUS REPORT 2000/2001 This status report simultaneously represents the Group status report, as provided for in section 267 (3) of the Austrian Commercial Code (HGB), which permits the presentation of a combined status report for the Group and VOEST-ALPINE STAHL AG. Steel market Economic development Business Development VOEST-ALPINE STAHL-Group The first three quarters of the 2000/2001 business year in particular (2 nd through 4 th calendar quarter 2000) were characterized by the very satisfactory volume development, a stable capacity utilization in all production areas and high profits. Towards year-end 2000 the first slowing trends could be felt, in conjunction with increased price pressure though that only came to bear in the succeeding months. Dynamic development of the global economy Downturn in the steel market during the 4 th quarter 2000 The economic development of the global economy during the year 2000 was characterized by an extraordinarily dynamic development until fall. Global economic growth reached 4 % primarily driven by the US economy. In the United States, demand and production increased in real terms by more than 5 %. Of the Latin American countries Mexico in particular, profiting from the strong demand from the US, was able to improve its economic growth reaching more than 7 %. Most of the Asian countries also achieved high growth rates, such as for instance South Korea and China, growing by more than 9 % and more than 8 %, respectively. Japan, whose economy mostly stagnated during the last decade, achieved a growth of 2 % all the same. In Europe, the economic upturn continued in spite of an increase in crude oil prices. A booming export economy and a significant increase in investment supported the upward trend. The gross domestic product of the Euro zone grew by 3.3 % during the year 2000, favored by the low Euro exchange rate. Austria also profited from the generally satisfactory economic environment. The most significant economic upturn since the beginning of the nineties was reported with 4 % growth. Export even grew by 11 %, profiting from increased European demand and the low Euro exchange rate. The international steel market, in particular during the first three quarters of the year 2000, showed a strong positive dynamics. The crude steel production during the year reached a new record level at 840 million metric tons. Temporarily this strong demand for steel even led to a shortage in supply. The favorable volume development was, therefore, accompanied by significant increases in price levels during the first half of the year. Starting in the 3rd quarter 2000, the strong upward trend started to slow, due to seasonal and warehousing cycles. In addition, the beginning of a leveling out of the economy, initially on the Asian and North American markets, had a dampening effect. Later, this development also reached Europe. After a continuing increase in prices for approximately one and a half years, the European steel industry experienced a reversal in trend during the 4th quarter 2000, resulting in significant pressure on prices during the first half of 2001. After the average profit level of VOEST-ALPINE STAHL-Group improved by approximately 10 % during the 1 st half of the 2000/2001 business year (2 nd and 3 rd calendar quarter 2000), it once again increased during the 3 rd quarter (4 th calendar quarter), even if by the smaller amount of 1.6 %. However, this improvement was overcompensated by increased costs for raw materials (oil and gas in particular), the unfavorable development of the Euro/dollar parity as well as personnel expenses that increased by approximately 2.5 % effective 1 November 2000. The beginning of the slowing trends in the 4 th quarter of the business year (1 st calendar quarter 2001) on the international steel markets and the increased price pressure led to losses of profit of approximately 3 % in this period. PRICE DEVELOPMENT VS. EBITD VOEST-ALPINE STAHL-GROUP 478.1 356.6 354.3 339.9 5 % 5.4 % 5.3 % 4.8 % 3 % 3 % 2 % 1.2 % 1.6 % 0.5 % 0 % -1 % -2.2 % -2.9 % -5 % -8 % 2QU97 3QU97 4QU97 1QU98 2QU98 3QU98 4QU98 1QU99 2QU99 3QU99 4QU99 1QU00 2QU00 3QU00 4QU00 1QU01 CALENDAR QUARTERS PRICE CHANGE QUARTER-ON-QUARTER EBITD IN EUR millions 18 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 19

STATUS REPORT 2000/2001 STATUS REPORT 2000/2001 Record level of steel Even so, the VOEST-ALPINE STAHL-Group during the 2000/2001 business year EXTERNAL TURNOVER 1999/2000 BY SECTOR production produced the record amount of 5.3 million metric tons of crude steel. This is an VOEST-ALPINE STAHL-GROUP increase over the prior year of more than 10 % (1999/2000: 4.79 million metric tons). Crude steel production at the site in Linz reached 4.0 million metric tons; the Donawitz plant produced 1.3 million metric tons. The increase in production of 8 % in the Flat Products sector and of almost 20 % in the Long Products sec- OIL INDUSTRY 5 % HOUSEHOLD APPLIANCES 10 % RAILWAYS 12 % AUTOMOTIVE 26 % tor is not only due to very satisfactory levels of demand, but also to the further MISCELLANEOUS 12 % * ) improved plant configuration. Shipped volumes reach all-time-high The shipped volumes of flat products amounted to 4.0 million metric tons, an increase over the comparison value of the prior year of 3.6 %. The purchase of STEEL- AND MECHANICAL ENGINEERING 16 % CONSTRUCTION INDUSTRY AND SUBSUPPLIERS 19 % semi-finished goods was further reduced, due to the disproportionately high increase in crude steel volumes. Shipped volumes of Long Products of 1.18 mil- ) INCL. TRANSPORT/STORAGE, FASTENING TECHNOLOGY * lion metric tons were 12.4 % above the comparison value for the prior year. In total, VOEST-ALPINE STAHL-Group increased shipped volumes by 5.5 % to 5.18 million metric tons compared to the figures for the prior year. EXTERNAL TURNOVER 1999/2000 BY REGION VOEST-ALPINE STAHL-GROUP Group turnover on Consolidated group turnover during the 2000/2001 business year amounted to highest level EUR 3.166 billions or 17 % above the comparison value for the prior year (EUR 2.712 billions). This significant increase to the highest turnover to date in com- REST OF WORLD 8 % AUSTRIA 26 % pany history is due to the further increase in volumes as well as to satisfactory REST OF EUROPE 11 % profits. ITALY 13 % EXTERNAL TURNOVER VOEST-ALPINE STAHL-GROUP VALUES IN MILLIONS OF EUR REST OF EU 17 % GERMANY 25 % 3,166.1 2,456.1 2,290.6 2,518.0 2,581.9 2,711.7 The Flat Products Division increased turnover in comparison with the 1999/2000 business year (EUR 2.089 billions) by 16.2 % to EUR 2.427 billions. The Long Products Division reports an increase in turnover by 16.3 % to EUR 779 millions (1999/2000: EUR 670 millions). 1995 1996 1997/98 1998/99 1999/00 2000/01 (SHORT) BUSINESS YEAR 1997 (1 JANUARY 1997 31 MARCH 1997): EXTERNAL TURNOVER EUR 574.7 MILLIONS During the 2000/2001 business year the efforts to optimize the cost structure continued. The result was a further cost savings of EUR 43 millions. The focus was primarily on business reengineering processes and the "Continuous Improvement Program" (in continuation of the TOP instruments). 20 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 21

STATUS REPORT 2000/2001 STATUS REPORT 2000/2001 Highest operating result in company history VOEST-ALPINE STAHL-Group reports an operating result (EBIT) of EUR 258 millions for the 2000/2001 business year. This represents an increase of almost 70 % over the comparison value of the prior year (EUR 153 millions). Taking a tax rate of 27 % into account an annual net income of EUR 179 millions was achieved; this means an increase of 39 % over the 1999/2000 business year (EUR 129 millions). All essential Group companies report clearly positive results for the 2000/2001 busi- OPERATING RESULT (EBIT) ness year. VOEST-ALPINE STAHL-GROUP 221.2 123.2 166.2 167.8 VALUES IN MILLIONS OF EUR 153.0 258.3 Net financial indebtedness (gearing) of the group on 31 March 2001 of EUR 251.7 millions or 16.5 % of equity has improved significantly compared to the beginning of the business year (20 %). 1995 HGB 1996 HGB 1997/98 IAS 1998/99 IAS (SHORT) BUSINESS YEAR 1997 (1 JANUARY 1997 31 MARCH 1997): EBIT EUR 27.3 MILLIONS 1999/00 IAS 2000/01 IAS NET DEBT / EQUITY / GEARING VOEST-ALPINE STAHL-GROUP VALUES IN MILLIONS OF EUR 251.7 1,529.5 The operating result before depreciation (EBITD) of EUR 478 millions surpassed the value for the corresponding period of the prior year (EUR 354 millions) by 35 %. 133.0 1,272.4 244.2 1,343.8 286.4 1,430.0 218.5 943.6 196.5 1,022.2 OPERATING RESULT BEFORE DEPRECIATION (EBITD) VOEST-ALPINE STAHL-GROUP VALUES IN MILLIONS OF EUR 478.1 23.2 % 19.2 % 18.2 % 20.0 % 16.5 % 350.6 339.9 356.6 354.3 10.5 % 258.1 1995 HGB 1996 HGB 1997/98 IAS 1998/99 IAS 1999/00 HGB 2000/01 IAS NET DEBT EQUITY GEARING 1995 HGB 1996 HGB 1997/98 IAS 1998/99 IAS 1999/00 IAS 2000/01 IAS (SHORT) BUSINESS YEAR 1997 (1 JANUARY 1997 31 MARCH 1997): EBITD EUR 65.6 MILLIONS The ordinary result (EGT) for 2000/2001 is EUR 247 millions; this represents an increase over the prior year (EUR 164 millions) of 51 %. Earnings per share of EUR 5.6 are clearly above the prior year s value of EUR 3.91. Subject to approval by the Annual General Shareholders Meeting on 3 July 2001 a dividend of EUR 1.20 per share (1999/2000: EUR 1.20) plus a bonus of EUR 0.70 per share will be distributed to the shareholders of VOEST-ALPINE STAHL AG. Highest earnings per share since IPO 22 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 23

STATUS REPORT 2000/2001 STATUS REPORT 2000/2001 Acquisitions Company spin-offs With the acquisition of ROTEC Group in September 2000 by VOEST-ALPINE STAHL In line with the core process strategy, VOEST-ALPINE STAHL LINZ GmbH, effective Additional spin-offs LINZ GmbH another step towards processing or extending the value added chain and 1 April 2001 has spun-off its former business areas heavy plats, forge and logistics realized Swiss- German in particular towards the automotive industry was made. The acquired company into independent companies, VOEST-ALPINE GROBBLECH GmbH (heavy plate, 540 processing group specializes in the production of precision steel pipe and their processing into pipe employees), VOEST-ALPINE SCHMIEDE GmbH (forge, 170 employees) and VOEST- acquired products ready to install, where the majority of the products is sold to the automo- ALPINE LOGISTIK SERVICE (logistics, 610 employees). tive industry and the automotive supply industry. ROTEC Group has production sites in Belgium, Germany, France, Austria, Sweden and Spain. Investments In November 2000, VOEST-ALPINE STAHL LINZ GmbH acquired 33.33 % of the Italian company TURINAUTO S.p.A. that is a successor to the former press and The most important investments of the 2000/2001 business year in Linz was the relining assembly plant Rivalta of FIAT AUTO. Partners in this joint venture are the two fami- of blast furnace no. 5, the completion of the large project "Optimization of the Liquid Significant capacity Investment made in an ly corporations STOLA S.p.A. and ITCA S.p.A. with a third share each. These two Phase LD Steel Mill" with an increase in capacity from 3.5 million metric tons to 3.8 mil- increases Italian stamping plant companies are some of the most important Italian automobile supply companies with lion metric tons of crude steel and the completion of the LD compact steel mill in an international reputation in the areas tool and dye manufacturing, presses and Donawitz. assembly. Through this investment, VOEST-ALPINE STAHL-Group for the first time Furthermore, all planned modernization and optimization measures in the hot rolling mill has access to the production of large pressed parts for the automotive industry. in Linz were implemented as scheduled. In March 2000, the relining of blast furnace no. 6 was approved, in July the construc- Also in November 2000, VOEST-ALPINE SCHIENEN GmbH & Co KG has signed a tion of the third hot-dip galvanizing plant and in March 2001 the construction of a memorandum of understanding with NUCOR YAMATO STEEL COMPANY for the con- second strip coating facility. struction of a rail rolling mill in the United States. VOEST-ALPINE SCHIENEN GmbH VOEST-ALPINE STAHL-Group invested EUR 253 millions in fixed assets (1999/2000: & Co KG will contribute its know-how for the production of ultra long, head special EUR 278 millions). The investments are offset by depreciation of EUR 220 millions for Investment in rails in the hardened rails to the partnership and in turn have a 15 % interest in the new rail rolling the same time period. USA prepared mill in Blytheville, Arkansas. The plant is scheduled to commence operation in 2003. This investment represents the entry into the interesting American rail market, where the sale of the products of the new company outside of the NAFTA countries is exclusively handled through VOEST-ALPINE SCHIENEN GmbH & Co KG. INVESTMENT EXPENSES (TANGIBLE FIXED ASSETS) Acquisition of At the end of the 2000/2001 business year, VOEST-ALPINE EUROPLATINEN GmbH VOEST-ALPINE STAHL-GROUP VALUES IN MILLIONS OF EUR majority share in an acquired a 51 % interest in the Italian company EUROWELD Srl., Turin, the only Italian Italian tailored blanks manufacturer manufacturer of laser-welded blanks. Together the two companies are the second largest suppliers in the tailored blanks sector. 319.0 319.5 333.3 278.0 253.3 203.2 1995 HGB 1996 HGB 1997/98 *) IAS 1998/99 IAS 1999/00 IAS 2000/01 IAS *) INCL. (SHORT) FINANCIAL YEAR 1997 TANGIBLE FIXED ASSETS DEPRECIATION 24 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 25

STATUS REPORT 2000/2001 STATUS REPORT 2000/2001 Research and development Employees The focus of R & D in the Flat Products Division was process optimization blast furnace, the development of high-strength and ultra-high strength hot-rolled steel grades and painted strip for modular components for the automotive industry. In the sector Long Products the continuation of the development of highly wear- and fatigue-resistant rail grades (bainitic rails), the intensified systems research into the wheel/rail contact, the product development in the cold extrusion sector of wire rod and the continuing optimization of the CPE process were at the forefront of the efforts. VOEST-ALPINE STAHL-Group during the 2000/2001 business year expended approximately EUR 32 millions (1999/2000: EUR 31.98 millions) for research and development. Project mini-mill The project of a flat products mini mill at a European production site was shelved in December 2000, since calculations showed only a marginal economy. Investment costs of almost EUR 1 billion showed no appropriate yield for the capital employed. Additional important reasons for the critical view of the project were the insecurities regarding long-term price development of scrap and scrap substitutes as well as energy (in particular electricity), and also the lasting relation of Euro to dollar that is very difficult to estimate. Purchase of own shares On 6 July 2000, VOEST-ALPINE STAHL AG acquired a share package of 4.01 % of its own shares from VA TECHNOLOGIE AG. On 27 April 2001, VOEST-ALPINE STAHL transferred an additional share package amounting to 1% of its share capital from ÖIAG to its own portfolio. This total volume of 5.01 % of own shares is currently utilized for an employee share ownership program being implemented. On 31 March 2001, VOEST-ALPINE STAHL-Group had 15,658 employees (excluding apprentices) compared to 15,228 employees at the end of the prior business year. The increase in the number of employees is due to acquisitions and the expansion in capacity. Reconciliation fund In the year 2000, the Austrian Federal Government has established a fund to pay damages to forced laborers from World War II that worked in Austria, as a gesture of reconciliation. Due to moral and humanitarian considerations and on a voluntary basis, VOEST-ALPINE STAHL-Group transferred EUR 6.5 millions to this fund. Furthermore, VOEST-ALPINE STAHL-Group has instated a committee of historians to address the history of forced labor in the plants in Linz of the former Hermann Göring Group, Berlin. The work on this project will be completed in summer 2001. The company will publish the results and make the documents resulting from the research available to the public in a documentation center that will be completed in 2002. Forecast The year 2001, and the second half of the year in particular, is characterized globally by considerable uncertainty regarding economic prospects. The trend towards a stagnation of economic growth, especially in the USA but during the last few months also within the European Union, creates a considerably more difficult environment for the steel industry than during the last year. Even though the average price level for hot-rolled strip, after dropping significantly during the first half of the current year, now evidences not only stabilization but even a slight trend towards recovery, a positive trend reversal for the second half is not yet certain. A stabilization of the economy during the further course of the year is a requirement. In any case, it has to be assumed that the levels of the results for the past business year will not be sustained. Even so, a clearly positive result is expected for the 2001/2002 business year from our current view, based on a satisfactory capacity utilization of all essential facilities. 26 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 27

VOEST-ALPINE STAHL SHARE During the past business year, the share price development for VOEST-ALPINE STAHL share mirrored the general development of the steel sector in the capital markets. VOEST-ALPINE STAHL VS. INTERNATIONAL STEEL INDICES Fueled by an anticipated downturn in the steel economy the share was underrepresented in many portfolios during the course of the last year, together with many European steel shares. Neither the lessened sensitivity to cyclicity nor the predicted record result were able to change this fact. 110 100 90 80 The share price compared to the Austrian Leading Index, the ATX developed accordingly. In the time from 1 January 2000 to 31 March 2001 the VOEST- ALPINE STAHL share performed by approximately 20 % worse. It has to be taken into account, however, that it had the best development of all ATX values during the previous year. That the top position of VOEST-ALPINE STAHL AG, strategically as well as in respect to costs and earnings, is at least noted within the industry becomes obvious in the comparison with international steel indices. Here the European (23 %) as well as the American (18 %) steel index was clearly outperformed. 70 60 50 40 VOEST-ALPINE STAHL AG EUROPEAN STEEL INDUSTRY INDEX* US-STEEL INDUSTRY INDEX** JANUARY 2000 Change over year-end 1999 in % 2001 31 MARCH 2001 * Source: Datastream ** Source: Standard & Poors Steel Shareholder Structure The shareholder structure of VOEST-ALPINE STAHL AG currently is as follows: VOEST-ALPINE STAHL VS. AUSTRIAN TRADED INDEX (ATX) SHAREHOLDER STRUCTURE (JUNE 2001) VOEST-ALPINE STAHL AG 110 100 90 PRIVATE AND INSTITUTIONAL INVESTORS 51.27 % REST OF EUROPE 1) 3.26 % GERMANY 1) 5.00 % UK 1) 5.00 % USA 1) 16.00 % AUSTRIA 1) 22.01 % 2) ÖIAG 37.80 % 80 70 60 VOEST-ALPINE STAHL AG AUSTRIAN TRADED INDEX (ATX) JANUARY 2000 Change over year-end 1999 in % 2001 31 MARCH 2001 1) PERCENTAGES INDICATIVE 2) INCL. 5 % FROM EMPLOYEE SHARE OWNERSHIP VA TECHNOLOGIE AG 10.93 % 28 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 29

INFORMATION FOR INVESTORS Equity Capital EURO 239,820,352.75 divided into 33,000,000 individual share certificates Due to the temporary ownership of own shares the number of shares, according to IAS, is lowered on the balance sheet date of 31 March 2001 to 32,007,525 shares. Share type Common bearer shares Highest share price April to March 2001 EUR 33.69 Lowest share price April to March 2001 EUR 24.91 Share price on 31 March 2001 EUR 30.55 Market capitalization on 31 March 2001 EUR 967,723,184 2000/01 Business year Earnings per share EUR 5.60 Dividend per share* ) EUR 1.20 Bonus per share* ) EUR 0.70 Book value per share EUR 47.79 Dividend distribution ratio % 34 * ) as proposed to the Annual General Shareholders Meeting SCHEDULE 2001 3 July 2001 Annual General Shareholders Meeting, Linz 10 July 2001 Ex-dividend date 16 July 2001 Dividend payment date 17 August 2001 Shareholders Letter on the development of the 1 st quarter 2001/02 18 October 2001 Shareholders event in Vienna as part of the Profit Fair, Vienna. 16 November 2001 Shareholders letter on the 1 st half of 2001/02 INFORMATION FOR SHAREHOLDERS Phone: +43/732/6585-3152 E-Mail: InvestorRelations@voest.co.at Internet: http://www.voest-alpine-stahlag.com Reuters: Bloomberg: Datastream: VAST.VI VAST AV O:VAS THE FOLLOWING INSTITUTIONS PREPARE REGULAR ANALYSES ON THE DEVELOP- MENT OF VOEST-ALPINE STAHL AG FROM THE VIEWPOINT OF THE CAPITAL MARKETS: WASHING MACHINE IZ 12W, Zanussi Design: Roberto Pezzetta 30 ABN Amro, London BNP Paribas, Frankfurt CAIB Investmentbank AG, Vienna Crédit Lyonnais, London Crédit Suisse First Boston, London Deutsche Bank, Frankfurt Dresdner Kleinwort Benson, London VOEST-ALPINE STAHL AG 2000/01 Erste Bank, Vienna UBS Warburg Dillon Read, London Goldman Sachs, London Société Générale, London HSBC CCF Securities, London West LB Panmure, Düsseldorf Merrill Lynch, London Morgan Stanley Dean Witter, London Raiffeisen Zentralbank Österreich, Vienna Salomon Smith Barney, London ROBERTO PEZZETTA Roberto Pezzetta was born 1946 in Treviso. His career as a product designer started at the Italian household appliance manufacturer Zoppas. Later he worked at the winter sports expert Nordica. In 1981 he received the Design Oscar compasso d oro. Since 1982 he has been chief designer at Elektrolux Zanussi, the largest household appliance manufacturer in Europe.

VOEST-ALPINE STAHL AG FLAT PRODUCTS DIVISION FLAT PRODUCTS DIVISION VOEST-ALPINE STAHL LINZ GmbH The lead company of the Flat Products Division, VOEST-ALPINE STAHL LINZ GmbH, was able to achieve one of the best results in company history for the 2000/2001 business year. The reasons for this success are on several levels. Aside from the economic environment primarily the consistent strategy of a further extension of the valueadded chain through an emphasis on product finishing. In addition, the continuous improvement of the cost structure achieved far-reaching savings effects, the business reengineering process was successfully continued and the sourcing of raw materials was further optimized. The peak of the steel cycle in the 2 nd and 3 rd quarter as well as the positive development of important customers where significant increases in sales could be achieved in some cases, led to a stable capacity utilization, with a simultaneous increase in the shipped volumes of cold-rolled, hot-dip and electrolytically galvanized as well as organically coated plate. VOEST-ALPINE KREMS GmbH with its subsidiaries SADEF N.V., Belgium, METSEC PLC., Great Britain, PRÄZISIONSPROFIL GmbH, Germany, VOEST-ALPINE PROFIL- FORM S.R.O., Czech Republic, ROLL FORMING CORPORATION, Kentucky/USA as well as VOEST-ALPINE KREMS FINALTECHNIK GmbH, is market leader in the field of tailored tubes and sections in Europe. Even though VOEST-ALPINE KREMS GmbH had to deal with a volume decrease of 3.6 % to 271,000 metric tons during the 2000/2001 business year, sales revenue was increased by 12.6 %. There were decreases in volume to be contended with in the sector standard tubes and hollow steel sections, due to full warehouses at dealers, but a significant increase was reported in customer-specific tube and profile cross sections as well as the increasingly important sector of processing parts and components. VOEST-ALPINE KREMS GmbH Starting in the 4 th quarter of the business year, however, dampening tendencies were discernible. Increased imports from third countries and excessively high stock held by the customers led to increasing price pressure. Initially the hot-rolled strip was influenced by this development, but at the end of the business year it had also spread to cold-rolled and coated products. The business area heavy plate, however, remained untouched by this development. It was characterized by a continuing improvement in volume as well as in price levels. Turnover for VOEST-ALPINE STAHL LINZ GmbH for the 2000/2001 business year was EUR 1,597 millions (1999/2000: EUR 1,363 millions). Due to strict implementation of the marketing concepts, the continuous improvement of the degree of service through new planning and logistics systems as well as through the orientation towards long-term contracts, the company today is one of the leading suppliers of the automotive, household appliance and construction industries. It is one of the market and quality leaders in its core markets. The program of VOEST-ALPINE STAHL LINZ GmbH comprises hot-rolled and coldrolled as well as surface-treated flat products. Offered are hot-dip galvanized (THER- VAGAL), electrolytically galvanized (GRAVIGAL) and organically coated (COLOFER) sheet and strip. Electrical steel sheet (ELDUKT, ISOVAC), heavy plate and clad plate complete the product range. Aside from the standard steel grades the product range comprises deep drawing and specialty deep drawing grades made of ultra-low carbon, vacuum-treated steel grades as well as deep drawing and drawing grades made of Al-killed steels. SADEF N.V. once again reports a very satisfactory business year. In this, the tenth year of the affiliation of the Belgian company with VOEST-ALPINE KREMS Group, sales could once again be increased while income was stable on a very satisfactory level. The British subsidiary METSEC plc continued its reengineering measures rapidly in cooperation with the business consulting group McKinsey and has started to implement the TOP process for continuous improvement, that has already been successfully implemented in Krems. An additional boost to productivity is expected from the implementation of the so-called "Model-Line" method throughout the company. This method builds individual production aggregates according to state-of-the-art knowledge of processes, information technology and ergonomics. The past business year for PRÄZISIONSPROFIL GmbH was a year of transition characterized by the complete new construction of the company facilities at a new site and the corresponding transition measures. At the beginning of the 2001/2002 business year the company has entered a future-oriented growth phase. The business development of VOEST-ALPINE PROFILFORM S.R.O. has continued favorably. The until now extraordinary success of the Czech subsidiary that started operations in 1998 has caused VOEST-ALPINE KREMS GmbH to advance the planning for the next growth phase. SADEF N.V. METSEC plc. PRÄZISIONSPROFIL GmbH VOEST-ALPINE PROFILFORM S.R.O. 32 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 33

FLAT PRODUCTS DIVISION FLAT PRODUCTS DIVISION ROLL FORMING CORPORATION VOEST-ALPINE KREMS FINALTECHNIK GmbH The US company ROLL FORMING CORPORATION, acquired 100 % in February 2000, was satisfactorily integrated during the first year of its affiliation. During the past business year, the company has achieved a 45 % increase in sales and a significant improvement of its earnings situation. However, there are still significant potentials to increase the market and to improve productivity. As a first step, a completely new facility is under construction in Jeffersonville/Indiana at an expense of US$ 15 millions. This facility is slated to supplement the production site in Shelbyville/Kentucky within a few months. The new site will take over the production of those "made to measure profiles and custom roll formed sections/tubes that were until now supplied from Europe to American customers. At VOEST-ALPINE KREMS FINALTECHNIK GmbH the goal is to first put the company on a firm basis and then to transition it into a growth- and profit-oriented phase. To this end, supplementary to the adjustment of the payment structures, a comprehensive reengineering of the process was initiated. VOEST-ALPINE KREMS Group, during the 2000/2001 business year, achieved a total turnover of EUR 482 millions (1999/2000: 423 millions). The company is active in the sectors precision welded tubes and welded hollow sections, open standard profiles and sections as well as all kinds of custom-made profiles and sections, parts and components, but also in the areas high-bay storage and racking, road safety systems (guard rails, culverts), overhead cable masts and hot-dip galvanizing. The customer sectors comprise steel construction, modular building systems and interior finishing, mechanical engineering, automobile and commercial vehicle production, agricultural machinery and aircraft technology. The business area non-ferrous metal casting also reported high growth. One of the reasons was the introduction of a new product group that was very well received by the customers. An important step for this business area has been taken with the construction of a new building for the non-ferrous metal foundry. The company achieved a turnover of EUR 59 millions (1999/2000: EUR 49 millions) for the 2000/2001 business year. During the 2000/2001 business year, VOEST-ALPINE GIESSEREI TRAISEN GmbH was able to achieve a significantly higher turnover of EUR 26.0 millions (1999/2000: EUR 20 millions), due to an improvement in the situation on the market. The increase in turnover was due primarily to the volume increases to main customers. The business field "energy casting" in particular experienced this development. Together with VOEST-ALPINE GIESSEREI LINZ GmbH and the "Industrial Center for Expertise Casting" the foundry in Traisen gained new customers and improved its existing customer relationships. The strategic orientation of the company toward a specialty steel casting program with precision finishing and component production has proven to be correct. Strong growth characterized the past business year of VOEST-ALPINE EURO- PLATINEN GmbH & CO, as in prior years. The reason was the satisfactory condition of the automotive market. There were more orders than originally anticipated. More than 4 million laser welded blanks were delivered to almost all large car manufacturers. The focus of the program is doors, closures and side walls. Furthermore, during the past business year, the implementation of the certification according to ISO / TS 16949 was successfully concluded. VOEST-ALPINE GIESSEREI TRAISEN GmbH VOEST-ALPINE EUROPLATINEN GmbH & Co To manufacture the orders taken on time, an expansion program on a large scale was agreed on with an expansion of factory floor space by approximately 8,000 square VOEST-ALPINE GIESSEREI LINZ GmbH VOEST-ALPINE GIESSEREI LINZ GmbH during the 2000/2001 business year was equally successful in both business areas, steel casting and non-ferrous metal casting. The steel casting business area profited from the high demand in the sector gas and steam turbines. This development was primarily driven by the North American market. The company was able to further consolidate its globally leading position as supplier of high-quality steel casting components. This leading position was confirmed by the award "Supplier of the Year" by its main customer, General Electric Power System. meters including a roofed loading area. Furthermore, investments were made into a second stamping line and the laser welding facility VI, which is slated to commence operations in the fall of 2001, was ordered. The planned investment projects amount to approximately EUR 18 millions. Another welding line is planned for 2002. The company achieved a turnover of EUR 42 millions (1999/2000: EUR 32 millions) during the 2000/2001 business year. 34 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 35

FLAT PRODUCTS DIVISION FLAT PRODUCTS DIVISION VOEST-ALPINE For VOEST-ALPINE STAHLHANDEL GmbH the 2000/2001 business year was char- EXTERNAL TURNOVER 1999/2000 BY SECTOR STAHLHANDEL GmbH acterized primarily by the very successful activities of its trading subsidiaries in the FLAT PRODUCTS Czech Republic and Croatia, which have exceeded their target figures by far. The also successful business development of the Hungarian branch laid the foundation for an expansion of the warehousing and the activities in this region. However, since September 2000, due to excess supply with a simultaneous decrease in demand, a decrease in the margins was reported in Austria. In spite of this, the company was able to improve its position by 11 % compared to the prior year (EUR 180 millions), TRANSPORT/STORAGE 3 % OTHER 12 % HOUSEHOLD APPLIANCES 14 % AUTOMOTIVE 30 % with a turnover of EUR 202 millions. VOEST-ALPINE STAHL The highlight of the 2000/2001 business year for VOEST-ALPINE STAHL SERVICE STEEL- AND MECHANICAL ENGINEERING 18 % CONSTRUCTION AND SUBSUPPLIERS 23 % SERVICE CENTER GmbH CENTER GmbH was the start-up of the new slitting and cut-to-length facility. The anticipated start-up curve was significantly exceeded. The development of the business year during the first half was characterized by very satisfactory cyclical demand. During the second half, prices dropped, just as for the entire European steel industry. The high ratio of long-term contracts and the continu- EXTERNAL TURNOVER 1999/2000 BY REGION ing volume demand made it possible for the company to still exceed budget figures. FLAT PRODUCTS The turnover of VOEST-ALPINE STAHL SERVICE CENTER GmbH for the 2000/2001 business year amounted to EUR 151 millions (1999/2000: EUR 124 millions). REST OF WORLD 5 % AUSTRIA 29 % REST OF EUROPE 9 % ITALY 13 % REST OF EU 18 % GERMANY 26 % KEY FIGURES FLAT PRODUCTS VALUES IN MILLIONS OF EUR 1995 HGB 1996 HGB 1997/98 IAS 1998/99 IAS 1999/00 IAS 2000/01 IAS Turnover 1,962.8 1,821.0 1,949.5 2,004.0 2,088.8 2,426.7 Operating result bef. depreciation (EBITD) 329.3 230.3 302.6 308.3 303.2 400.8 Operating Result (EBIT) 219.3 113.5 148.8 148.0 139.3 234.3 Investments in tangible and intangible assets and interests 181.6 302.1 234.0 225.6 188.7 247.5 Ordinary result (EGT) - - 116.9 120.0 138.5 204.8 Employees (excl. apprentices) 11,539 11,171 10,799 11,144 11,065 11,463 36 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 37

SERGIO PININFARINA Born 1926 in Turin, son of Battista Farina one of the most famous car designers in Italy during the post-war years. After having concluded his study of mechanical engineering he started work in the family-owned company Carrozzeria Pininfarina in 1950. He enlarged the company s field of activities from design to technical development and production. The Gran Signore of car design was involved in the building of roughly 30 million cars (for example, Ferrari, Alfa Romeo, Lancia, Peugeot, Fiat). In 1995 he was awarded the Design Oscar compasso d oro. PEUGEOT 406 Coupé Design: Sergio Pininfarina

VOEST-ALPINE STAHL AG LONG PRODUCTS DIVISION LONG PRODUCTS DIVISION VOEST-ALPINE SCHIENEN GmbH & Co KG VOEST-ALPINE SCHIENEN GmbH & Co KG, lead company of the Long Products Division was able to further consolidate its position as market leader in the European countries during the 2000/01 business year. The reason being that the long rail market, dominated by the company with the introduction of ultra-long head special hardened rails has continued to prove itself as a growth market with stable price levels. Strict orientation towards service (just-in-time logistics) and state-of-the-art technology in large batch production made it possible for VOEST-ALPINE SCHIENEN GmbH & Co KG to further increase its market share in this high-quality segment. The business area packages and systems was also expanded. In the high velocity project Cologne Frankfurt the company, through its subsidiary VOEST-ALPINE KLÖCKNER BAHNTECHNIK GmbH, has become the general contractor for the manufacture of the ready to use "steel track". The business with central European railroads and railroads outside of Europe did not develop uniformly; tight budgets and far-reaching restructuring measures were in the way of the realization of new project orders. Given this non-uniform economic environment the company still managed to maintain its sales volume and value on a very high level. The sales volume during the 2000/01 business year amounted to 309,000 metric tons (1999/00: 314,000 metric tons), turnover to EUR 189 millions (1999/00: EUR 195 millions). An essential ingredient of the success during the past business year were again the investments in quality assurance and increased productivity. Projects in the areas "Visual Rail Inspection", "Walking Beam Furnace - Increase of Bloom Size" and "Increase in Throughput of Long Rails" were completed on schedule. VOEST-ALPINE SCHIENEN GmbH & CO KG places special emphasis on the intensification of the research and development activities. Projects in the segments "Bainitic Rails", "Advanced Development of the HSH Manufacturing Process", "Rolling Contact Wheel-Rail/Test Stand" were dynamically advanced and further developed and they are the guarantors for the increases in customer benefit in the international permanent way business. Through its future-oriented measures, VOEST-ALPINE SCHIENEN GmbH & CO KG is well prepared for an anticipated further increase in the dynamics of the market and a corresponding increase in competitiveness. VOEST-ALPINE STAHL DONAWITZ GmbH was able to profit from the satisfactory steel economy during the 2000/2001 business year, resulting in capacity utilization of the plant capacities. Production volume was at approximately 1,300,000 metric tons (1999/2000: 1.1 million metric tons). The company achieved a turnover of EUR 325 millions (1999/2000: EUR 266 millions). VOEST-ALPINE STAHL DONAWITZ GmbH supplies all long product companies with semi-finished product as well as external customers. In May the conversion and new construction of the existing steel mill in Donawitz into a LD compact steel mill was completed successfully. The start-up of the new facility progressed flawlessly. Already in March 2001 the production volume at the site reached 124,400 metric tons, the highest volume to date. Aside from a reduction of production cost by 10 % this investment also made it possible to reach the highest quality steel grades. Swept along by the pan-european economic upturn, the wire industry also experienced a strong upturn that carried through almost the whole 2000/2001 business year. All important customer industries of the company (automotive supply, fastening technology, steel construction and mechanical engineering) achieved respectable growth. In addition, the trend towards higher quality annealed material has increased, so that an improvement in the quality mix could be achieved along with the increase in volume. An expansion of the production of cold extrusion wire rod at the site in Bruck was approved to enable the company to keep up with this development. In fall 2001 this new line will be started-up. The only economic downside was the development of the Austrian construction industry. The sales volume (without contract labor) was increased from 422,000 metric tons to 450,000 metric tons. This corresponds to an increase of 6 %. The sales volume even increased by 10 % during the prior year and now is holding at EUR 203 millions (1999/2000: EUR 184 millions). These record levels are even more satisfactory since they were achieved in spite of a steel shortage and technical problems during the start-up of the wire line. At the end of March 2001 the rope mill in St. Aegyd was sold to an Austrian competitor, since it no longer constituted part of the core business of the company. VOEST-ALPINE STAHL DONAWITZ GmbH VOEST-ALPINE AUSTRIA DRAHT GmbH The production program of VOEST-ALPINE SCHIENEN GmbH & CO KG comprises high-tech rails in unwelded delivery lengths up to 120 meters, flat-bottom, grooved and crane rails in all desired steel grades or in head special hardened qualities, construction rails in all desired steel grades, point rails in head special hardened quality as well as permanent way profiles and sections in all desired steel grades. The product range of VOEST-ALPINE AUSTRIA DRAHT GmbH comprises highquality wire rod, drawn wire (cold extrusion, cable and spring steel wire) as well as pre-stressed concrete stranded wire, pre-stressed concrete wire, wire rope and reinforcing wire mesh. 40 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 41

LONG PRODUCTS DIVISION LONG PRODUCTS DIVISION VOEST-ALPINE VOEST-ALPINE STAHLROHR KINDBERG GmbH & Co KG profited during the EXTERNAL TURNOVER 1999/2000 BY SECTOR STAHLROHR KINDBERG past business year from the favorable economy in the oil and gas industry as LONG PRODUCTS GmbH & Co KG well as from the cooperation with the world s largest manufacturer of drilling equipment, GRANT PRIDECO. Increasing exploration and exploitation activities led to an increase in demand for high-quality specialty pipe on a global scale. This was positive for the volumes sold as well as for profits. All production areas FASTENING INDUSTRY 5 % CIVIL AND MECHANICAL ENGINEERING 8 % RAILROADS 45 % of the company during the past business year were working at capacity. During the 2000/2001 business year, the company achieved a turnover of EUR CONSTRUCTION INDUSTRY 9 % 218 millions (1999/2000: EUR 104 millions). Through the stable volume development and a profit situation on a high level the company is again working at capacity for the next months. AUTOMOTIVE INDUSTRY 16 % OIL INDUSTRY 17 % VOEST-ALPINE STAHLROHR KINDBERG GmbH & Co KG specializes in the manufacture of ready-to-install oil and gas field pipes, for instance noncollapsible and low-temperature resistant grades and pipes with gas-tight threaded connections, in the manufacture of drill hole equipment as well as the production of quality and boiler pipe. EXTERNAL TURNOVER 1999/2000 BY REGION LONG PRODUCTS VAE Aktiengesellschaft VAE continued its controlled growth strategy also during the past business year. Through the establishment of the joint venture with the Austrian Federal Rail- ITALY 12 % AUSTRIA 25 % roads the company already has 19 production sites throughout the world. REST OF EU 13 % In spite of temporary negative influences on individual markets, that could be more than compensated through the global presence, supported by the lasting restructuring, rationalization and cost reduction measures a stabilization on a high level was achieved during the 2000/2001 business year. REST OF EUROPE 14 % REST OF WORLD 16 % GERMANY 20 % Consolidated Group turnover was at EUR 291 millions (EUR 306 millions for the comparison period during the prior year). Analogous to VOEST-ALPINE SCHIENEN GmbH & CO KG the targeted goal of KEY FIGURES VAE AG is the extension of the value added chain or in an expansion of the com- LONG PRODUCTS VALUES IN MILLIONS OF EUR ponent and systems product range. A milestone will be the "ready to plug in switch". This is a switching system that is completely assembled at the plant 1995 HGB 1996 HGB 1997/98 IAS 1998/99 IAS 1999/00 IAS 2000/01 IAS and delivered to the construction site ready-to-install and that only has to be installed into the rail network. The customer benefit is in the enormous reduction of installation time from 2-3 days to a few hours. On 8 November 2000 the Turnover Operating result bef. depreciation (EBITD) Operating Result (EBIT) Investments in tangible and 540.9 36.9 17.5 521.6 36.0 18.0 627.1 48.3 28.4 629.9 54.8 26.4 670.0 64.0 26.6 779.3 94.2 40.8 first roll-out of a ready-to-plug-in switch to ÖBB (Austrian Railroads) took place. intangible assets and interests Ordinary result (EGT) 25.8-25.8-45.7 28.8 203.5 19.0 104.0 21.6 70.1 31.1 Employees (excl. apprentices) 3,484 3,585 3,578 4,995 4,123 4,129 42 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 43

WATERLOO STATION, London Architect: Nicholas Grimshaw NICHOLAS GRIMSHAW Born 1939 in Hove. Studied in Edinburgh and graduated from the London Architectural Association School in 1965. With his London bureau, Nicholas Grimshaw & Partners, he won numerous awards and prizes. His most famous projects include Waterloo International Terminal, the British pavilion Expo 1992 in Seville and Barcelona, the Ludwig Erhard building in Berlin as well as the printing office of the Financial Times in London.

MANFRED FEHR, JENS SCHNOOR VOEST-ALPINE STAHL AG INTERNATIONAL SALES ORGANIZATION Hans-Uwe Schnoor was born 1951 in Warendorf. After his study of naval architecture he started work at HDW as design engineer. In 1982 he specialized in hydrodanymics. Manfred Fehr was born 1938. He has been working at HDW in the field of hydrodynamics (trial trips and acceptance trial trips)for more than 30 years. In the engineering department both technicians are responsible for the realisation of types of below water ships with low fuel consumption. VOEST-ALPINE EUROSTAHL Group as the international sales organization of VOEST- ALPINE STAHL-Group establishes the direct connection between the customer and the production companies. The sales organization enables the operative companies to minimize their cost of sales while simultaneously offering comprehensive service to their customers. One of the tasks of the sales companies of VOEST-ALPINE EUROSTAHL GmbH in all of Europe and the United States is also to be at the forefront of the steel economy and to deliver current information on the development of the international steel markets. Today, the group of companies has sales companies or representative offices in all core and supplementary markets of the Group, for instance in Belgrade, Brussels, The Hague, Duesseldorf, Katowice, Kiev, Copenhagen, Ljubljana, London, Milan, Moscow, Munich, New York, Prague, Oslo, Stockholm, Strasbourg, Zagreb, Zurich. Since 1 September 2000, the Group is also represented in the growth market Hungary through a newly established sales company in Budapest. One of the important Group functions of VOEST-ALPINE EUROSTAHL GmbH is the area "international economic relations". The company in this function protects the interests of the Group in the national and international environment. The company also is viewed as an instrument of personnel development within the Group. The international diversity of Group employees is promoted here. Intensive training and advanced training programs were conducted for employees of the foreign sales companies during the 2000/2001 business year. Emphasis was placed in particular on sales management, product knowledge and IT applications. VOEST-ALPINE EUROSTAHL GmbH, within the framework of Internet technology and the networking of the company with customers, partners, suppliers and the public also perceives new possibilities of communication and business development. In this context the e-business project "Realignment of the Role of the Group Sales Organization VOEST-ALPINE EUROSTAHL" was started. This project is currently undergoing a consolidation phase and will form a broad base for a successful implementation of e-customer relationship management (e-crm). APL CHINA, HDW Design: Manfred Fehr and Jens Schnoor 46 VOEST-ALPINE STAHL AG 2000/01

VOEST-ALPINE STAHL-GROUP INVESTMENTS INVESTMENTS The focus during the 2000/2001 business year was once again on the realization of investment for an additional improvement in the product mix and another increase in the creation of value. In the metallurgy sector the relining of blast furnace no. 5 in the plant in Linz was completed on schedule in October 2000. The technical improvements of the relined blast furnace achieve a 30 % lengthening of the furnace campaign. In March 2000 the relining of blast furnace no. 6 including preparatory work for casthouse dedusting was approved. This blast furnace, after an 8 year campaign, will be relined after producing approximately 4.2 million metric tons of hot metal. The recommissioning is scheduled for October 2001. In March 2000 the project "Coke-Oven Gas Injection Blast Furnaces No. 5 and No. 6" was approved. The goal of this project is to use coke-oven gas in place of heavy fuel oil. The large project "Optimization of the Liquid Phase LD Steel Mill Linz was also completed on schedule during the first half of the 2000/2001 business year. This project achieved an increase in capacity from 3.6 to 3.8 million metric tons crude steel, an expansion of the production in the highest quality management and another improvement in the environmental standards. As part of the project to increase the capacity of the steel mill in Linz to 4.0 million metric tons crude steel the partial projects in the areas blast furnaces, steel mill, slab finishing line and infrastructure were completed and started operations. The whole project is to be completed in September 2001. In March 2000, the investments in the hot metal desulfurization plant in the charging ladles instead of the current desulfurization in the torpedo ladle were approved. This alternative desulfurization of hot metal in the charging ladle is very economic. The hot rolling mill Linz continued the modernization and optimization activities as scheduled during the 2000/2001 business year. To secure the availability of the wide hot strip mill, a central and singular aggregate, as well as due to increased demands on performance, the project Drive Concept for Finishing Train including the maintenance or replacement of the main drives of the line was approved. To cover the increased demand of the market for coated sheet in automobile construction as a substitution for cold-rolled strip without coating, the new construction of the hot dip galvanizing plant no. 3 including capacity adjustment pickle tandem mill (annual capacity 320,000 metric tons) as a supplement to the existing hot dip galvanizing plants no. 1 and no. 2 was approved July 2000. The third hot dip galvanizing facility will increase the total capacity for hot dip galvanizing to 1,070 million metric tons. The implementation of the renovation of the heavy plate mill during the 2000/2001 business year has started on schedule with the engineering and the ordering of the main components. In March 2001 the responsible committees approved the construction of strip coating line no. 2, after the increasing volume demand of strategic customers can no longer be satisfied with the existing strip coating capacity in spite of 4-shift operation. Investments in fixed assets of the Group for the business year 2000/2001 amounted to EUR 253 millions (1999/2000: EUR 278 millions). During the 2000/2001 as part of the project Power Plant Block 03 in the power plant in Linz, the expansion of the existing steam power plant by a block with approximately 40 MW, the construction and foundation work was completed and the assembly of the main components (boiler and steam turbine) began. The completion of the conversion of the LD steel mill Donawitz to a LD compact steel mill represents a quantum leap for the steel production in the Austrian province of Styria. The conversion led to a decrease in manufacturing cost of approximately 10 % per metric ton of crude steel. Furthermore, it led to a significant improvement in the steel grades. The emissions of the steel mill in Donawitz are reduced to a minimum by way of secondary dedusting. The new steel mill makes Donawitz cost leader within the integrated long product manufacturers. 48 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 49

RESEARCH AND DEVELOPMENT RESEARCH AND DEVELOPMENT During recent years, VOEST-ALPINE STAHL-Group has successfully managed to shed the reputation as mass producer of steel while establishing a new image as a specialty manufacturer. This new reputation is also a result of very targeted research and development activities. sheet for the automotive industry that can subsequently still be formed. At the same time, the preparations for an alternative coating method are under way. Finally, a concept for future demands on high-strength steel grades as well as alternative materials is being conceptualized. The preparatory development for research and development as well as applicationoriented basic research during the 2000/2001 business year was in larger measure supported by cooperation with universities and other institutions, with the Christian Doppler Research Association and international institutions within the framework of ECSC projects. However, the Industrial Center of Expertise for Mechatronics and Automation, Linz (IKMA) and the Industrial Center of Expertise for Materials Leoben (Materials Center, Leoben) and the Industrial Center of Expertise for Applied Electrochemistry, Wiener Neustadt, also have to be mentioned in this context. Not only do these institutions have an impeccable reputation in the steel industry, their competence is also internationally noted and favorably received in the area of alternative materials. The company s joining of the Düsseldorfer Studiengesellschaft Stahlanwendung e.v. (Partnership for the Study of Applications for Steel, Duesseldorf) makes an international platform for innovative steel projects available to the company. Of special importance for VOEST-ALPINE STAHL as part of the service is naturally also the cooperation with the customer on site. The company provides state-of-theart technology facilities, in particular process simulators. The advanced development of injection blowing technology for solids and gases into the blast furnace as well as blast furnace automation are part of the main focus of R & D in the Flat Products Division. Highly wear-resistant and fatigue-resistant rails (bainitic rails), a pilot project of the Long Products Division is the main focus of the R & D activities. Another important issue is the wheel/rail contact. Currently systematic research into the optimization of the contact is being intensified. Parallel to the start-up of the new compact LD steel mill in Donawitz numerous measures were taken to obtain high-quality continuously cast semis. For instance, steps were taken to increase the purity of the material. The simulation and modeling of differing processes of steel production are to ensure the precision and safety of all processes. These efforts are supported in an important manner through so-called expert systems; they are automated control systems that have the long experience of experts built in. In addition the market-oriented development of cold extrusion products is being worked on. The cold extrusion process gives the material better mechanical properties and makes a higher priced quality possible. The goal is to increase the market share for wire rod in particular, primarily in the automotive industry. The development of thermomechanically processed and so optimized wire rod is being advanced. The so-called CPE process (Crossroll Piercing Elongating) for the manufacture of oilfield pipeline was also improved. Customer-oriented materials development emphasized specialty hot-rolled steel grades with maximum formability, excellent toughness properties and satisfactory weldability (TM steels, dual phase steels). Furthermore, the development of high perm electrical steel with minimum core loss as well as the development of bake hardening, dual phase, TRIP (Transformation Induced Plasticity) and multi-phase steels in the continuous annealing or the hot-dip galvanizing facilities were also emphasized. The development of a second generation of chromate-free, organiccoated thin sheet with excellent weldability was one of the R&D achievements of the 2000/2001 business year. In total, VOEST-ALPINE STAHL-Group during the 2000/2001 business year expended approximately EUR 32 millions for research and development. One of the most interesting projects in the area of advanced development of processes and materials with the goal of further processing is the production of pre-painted 50 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 51

ENVIRONMENT AND SAFETY ENVIRONMENT AND SAFETY VOEST-ALPINE STAHL-Group has firmly anchored the protection of the environment and the consideration of safety in its company statutes. Economy and ecology are brought in agreement through a continuous dialog between social demands and economic necessity. The target values economy and ecology, therefore, are not in opposition in the view of VOEST-ALPINE STAHL-Group. During the last decade the Group was able to stabilize the emissions at all production sites of the Group of companies on a low level. Fluctuations are possible through a variation of the processes or the materials employed. All environmental protection systems represent the state-of-the-art of their technology. Skilled and well-trained employees ensure the optimal operation of the technical environmental protection measures through exactly determined responsibilities and processes. This ensures that the strict regulations from public authorities and legal requirements are strictly adhered to, even in difficult production conditions. To keep the safety standards on a high level and to further improve them an assortment of safety-specific instruments is used. Some of the most important are: - Regular safety checks by all management ("safety audits") - Safety committees in all individual areas and processes - Regular communication ("15 minutes for safety") with all employees - Compilation and analysis of all accidents and near accidents The continuously increasing environmental protection requirements for the companies of VOEST-ALPINE STAHL-Group naturally find their reflection in higher costs for the operation of the environmental protection facilities, costs that usually cannot be passed on to the customer. The increased use of process integrated measures stabilizes or reduces these operating costs continually. An important goal of the company is the further reduction of water and energy consumption, where the possibilities to improve the facilities themselves have mostly been exhausted. Additional progress in future will only be possible through the utilization of state-of-the-art electronics and the optimal coordination of the individual process phases to each other. Scrap and slag are precious recyclable secondary raw materials in the spirit of resource conservation. Their correct utilization aids in the reduction of environmental effects of industrial processes. VOEST-ALPINE STAHL-Group uses state-of-theart technology and know-how to make these secondary raw materials available for its own and third-party use in continuously improving qualities. Another important concern of VOEST-ALPINE STAHL-Group is the safety and the health of all employees at their work place. Already in 1996, the implementation of targeted strategies as part of a new safety management system began. The basis is the safety policy of the group that finds its reflection in the integrated quality, safety and environmental policy. 52 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 53

SIR NORMAN ROBERT FOSTER Born 1935 in Manchester. Studied town planning and architecture at the University of Manchester. After his graduation in 1961 he was granted a scholarship at the renowned Yale University. His most famous buildings comprise, among others, the Sainsbury Center for Visual Arts in Norwich, the skyscraper of the Hong Kong and Shanghai Bank, the airport of Hong Kong as well as the Reichstag building in Berlin. Besides a number of various awards Norman Foster received the Pritzker Prize in 1999. REICHSTAG, Berlin Architect: Norman R. Foster

VOEST-ALPINE STAHL-GROUP VOEST-ALPINE STAHL-GROUP Risk Management Modern, value-oriented company management requires the conscious examination of strategic and operational risks. During the past business year, a group-wide, uniform risk management system was introduced for the purpose of early identification and reduction of essential risks. It lastingly increases the value of the company through risk control and the corresponding minimization of risk. The risk management system is based on a revolving process, comprised of the steps identification of risks, the valuation of risk, the management of risk and their documentation. This process takes place at least once a year throughout the Group in a uniform manner. The identification of risk within the Group is based on a uniform catalog of questions, which tracks the analysis of the operational value added chain. Risks and the established measures to counteract risk are described, including the steps towards implementation and a time table, compiled in an annual report and reported to the supervisory committees of the Group. The summarized results of the risk management process are treated by the auditor as part of the annual report audit for the Group. This new risk management system is another step for VOEST-ALPINE STAHL- Group towards an integrated management system, where synergy potentials can be utilized within the existing management systems for quality, safety and environmental protection of the individual companies, as well as between companies. During the 00/01 business year, no additional risks were identified apart from the industry conform operational and market risks. More than 10 pilot projects cover current issues such as: - Customer Relationship Management - e-procurement - Supply Chain Management, and - Content Management The first projects will go online already in the summer of 2001. By the end of the 2001/2002 business year, all e-business pilot projects will be concluded. Staff The focus of the work of human resources during the 2000/2001 business year was on the introduction of an EDP supported application management throughout the Group, additional important steps towards the implementation of the guidelines for personnel policy, the expansion of management capacity as part of the highly mobile reserve, development measures for "virtual learning" for management and personnel models for older employees. To meet the challenges of a globalized workplace, VOEST-ALPINE STAHL-Group increasingly relies on the flexibility and the teamwork of its employees. Today, flattened hierarchies that leave more freedom for all people to make autonomous decisions are ever more important. Rigid hierarchical structures no longer serve a purpose. This is the only way to further improve the quality and competence on an internationally active Group. The company, in committed projects, is turning these new premises into reality. e-business VOEST-ALPINE STAHL-Group uses the achievements of the New Economy in the sector e-business. To best utilize the opportunities and synergies of this issue the focus is on a group-wide e-business platform. To ensure rapid implementation first structural measures took place during the 2000/01 business year. An e-business steering committee, comprised of decision makers of all important Group companies, was instated to make decisions reaching beyond the individual companies. A competence center is being established for the purpose of IT consulting and implementation. It will offer the necessary resources and focus the acquired knowledge and communicate this knowledge. Creative and dynamic teams are the future of each successful company. In numerous seminar papers and case studies, therefore, the participants of "Team Day" held in Linz on 31 January 2001 were made aware of the enormous importance of teamwork on all operational levels. Already since the months of fall 2000, the pool of highly mobile employees was expanded. As part of the project "highly mobile reserves" the members of the pool are employed in various on-the-job projects throughout the whole Group. This is how young managers receive comprehensive training to be well prepared for future international tasks of the Group. As part of the restructuring the position of master craftsman (foreman) within the Group was newly considered and finally newly defined. They are to function even 56 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 57

VOEST-ALPINE STAHL-GROUP VOEST-ALPINE STAHL-GROUP more than before as a link between skilled workers and management. During decision processes within the team the foreman is to take the role of the coach and motivate the coworkers. Own programs to promote leadership knowledge and qualification accompany this new orientation. The acquisition of social competence is a focus of advanced training. To process applications as rapidly and efficiently as possible, EDP supported application management was introduced during the 2000/2001 business year. This is based on well thought through logistics. Applicants can now send their applications by e-mail to the company, where the data is fed into an internal database of the company. All Group companies have access to the application documents in the data pool, irrespective of which Group business the applicant contacted initially. Demand profile and qualification of future employees can so be exactly matched. The establishment of our own Internet platform makes virtual training possible as well as Group-wide communication between the management. Not only management uses the opportunity for advanced training: VOEST-ALPINE STAHL-Group during the past business year invested 1.5 % of its total personnel expenses in the training and advanced training of its employees. With the background of current debates on pensions, new personnel models for older employees were developed. Training is emphasized within VOEST-ALPINE STAHL-Group. Since the quality of the products is only ensured through the work of highly qualified employees, apprentice training is also of great importance. Currently, almost 400 employees are trained in 20 different skilled trades. The Group is particularly proud of the fact that not one but two apprentices were able to qualify for the 36th professional world championships. They will participate in the international competition in Seoul, South Korea in September 2001 in the team profession mechatronics engineer. Industry and culture Industry and culture are not opposites but can complement each other harmoniously. This is the maxim of VOEST-ALPINE STAHL-Group, which supplements the cultural activities at its sites through own activities that contribute in the spirit of good corporate citizenship to the artistic diversity of the region. For the third time already in August 2000 an event unique in Austria took place, the VOESTival. This cultural event staged and sponsored by VOEST-ALPINE STAHL in its scarfing bay has long since become a fixed item in the cultural scene of Linz, where the tickets are sold out every year within a few days. 1998 Mikis Theodorakis and in 1999 Ennio Morricone conducted the Bruckner Orchestra. The performance in the year 2001 will once again require perfection from the artists. The works of star composer Karl Jenkins combine ethnic, classical and jazz elements into a pluralistic "world music" that creates a harmonious connection between the individual continents. Several of Jenkins pieces as well as the whole choreography of Renato Zanella, director of the ballet of the Vienna State Opera, have never been performed for an audience. During the VOESTival of the year 2001, on 31 August 2001, the internationally renowned conductor Dennis Russel Davies together with the Bruckner Orchestra of Linz will present highlights from the US-American music scene. After the success of the previous year, the musical program will once again be accompanied by dance performances. The profit from the sale of tickets for VOESTival, as in every year, will in its entirety benefit selected social projects in the Austrian Province of Upper Austria. Aside from the VOESTival the company also promotes the "Prix Ars Electronica" in the cultural sector, held to be one of the globally most important competitions for modern and experimental music. The internationally renowned Bruckner Orchestra of Linz, rich in tradition, is also supported permanently. In the area of science a close cooperation with the University of Mining and Metallurgy in Leoben and Kepler University in Linz has existed for a long time. Masters and doctoral theses and research projects that focus on "environment and economy" as central issue are financially supported. VOEST-ALPINE STAHL-Group beholden to a defined hierarchy of values furthermore also supports selected social projects. This support, however, is not granted to individuals but exclusively to institutions. 58 VOEST-ALPINE STAHL AG 2000/01 VOEST-ALPINE STAHL AG 2000/01 59

EXPERIENCE MUSIC PROJECT, Seattle Architect: Frank O. Gehry FRANK O. GEHRY Born 1929 in Toronto. Attended the University of Southern California and studied town planning at the Harvard Graduate School of Design. After working in Los Angeles and Paris, established his architect s bureau in Los Angeles in 1962. His most famous buildings comprise, among others, the Experience Music Project Seattle, the California Aerospace Museum, the Guggenheim Museum Bilbao as well as the Vitra Design Museum in Weil/Rhine. In 1989 Gehry won the Pritzker Prize.

VOEST-ALPINE STAHL AG FINANCIAL STATEMENTS 2000/2001 62 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 63

VOEST-ALPINE STAHL AKTIENGESELLSCHAFT REPORT OF THE SUPERVISORY BOARD ON THE FISCAL YEAR 2000/2001 The Supervisory Board has fulfilled its responsibilities according to legal provisions and the articles of incorporation within the framework of 5 meetings. On these occasions, the Managing Board furnished extensive written and oral disclosure as to business development and the position of the company. The annual financial statements and the consolidated financial statements of 31 March 2001 were audited by the annual accounts auditors Grant Thornton - Jonasch & Platzer Wirtschaftsprüfungs- und Steuerberatungs-OHG (Auditing and Tax Consulting General Partnership), Vienna, that were elected according to the provisions in section 270 HGB (Commercial Code). Based on the results of the audit, the financial statements and the consolidated financial statements conform to legal provisions and adhere to the stipulations of the articles of incorporation. The audit demonstrated further, compliance to the fullest extent with the provisions of section 269 HGB (Commercial Code) and as a result the auditors issued an unqualified certification. There was no occasion for objection. The Supervisory Board has examined and approved the financial statements and the consolidated financial statements, as well as the management report and the proposal for profit distribution. The financial statements are thus established pursuant to section 125 Corporate Law (Aktiengesetz). The consolidated financial statements were compiled according to the International Accounting Standards (IAS). These financial statements were also audited by Grant Thornton - Jonasch & Platzer Wirtschaftsprüfungs- und Steuerberatungs-OHG (Auditing and Tax Consulting General Partnership), Vienna, and accorded an unqualified certification. The Supervisory Board acknowledged and approved the consolidated financial statements and status report. It is determined that the 2000/2001 business year closed with a balance sheet profit of EUR 62,807,715.42. It is proposed to distribute a dividend of EUR 1.90 per share with dividend rights and to carry the remainder forward to new account. The Supervisory Board Vienna, 8 June 2001 Streicher (Chairman) THE ALLAN LAMBERT GALLERIA, TORONTO VOEST-ALPINE STAHL AG 2000/2001 65

VOEST-ALPINE STAHL-GROUP GROUP BALANCE SHEET ON 31/3/2001 VOEST-ALPINE STAHL-GROUP GROUP BALANCE SHEET ON 31/3/2001 ASSETS Note No. 31/3/2000 31/3/2001 EUR thsds. EUR thsds. LIABILITIES Note No. 31/3/2000 31/3/2001 EUR thsds. EUR thsds. A. FIXED ASSETS A. STOCKHOLDERS EQUITY 8 I. Intangible Assets 1 1. Goodwill 81,248.1 101,876.0 2. Rights 25,853.9 27,736.3 3. Advance payments made 421.7 2,624.7 107,523.7 132,237.0 II. Tangible Assets 2 1.Land, rights similar to land and buildings 340,421.4 352,529.8 2. Plant and machinery 829,353.7 869,905.0 3. Other plant, operating and office equipment 66,317.0 74,392.4 4. Advance payments made and assets under construction 105,144.7 83,867.7 1,341,236.8 1,380,694.9 III. Financial assets 3 1. Investments 152,484.5 65,088.3 2. Loans 32,217.9 23,610.9 3. Securities (loan stock rights) held as fixed assets 90,081.8 87,454.6 274,784.2 176,153.8 1,723,544.7 1,689,085.7 B. CURRENT ASSETS I. Inventory 4 489,215.4 596,622.5 II. Receiveables and other assets 5 1. Trade accounts receivable 352,116.7 437,573.6 2. Receivables from affiliated companies 16,942.9 10,691.1 3. Receivables from companies in which an investment is held 20,199.3 40,549.3 4. Other receivables and assets 103,342.2 122,510.1 492,601.1 611,324.1 III. Securities and shares 6 196,325.8 341,467.2 1. Share capital 239,820.4 239,820.4 2. Capital reserves 290,685.7 290,686.0 3. Revenue reserves 859,868.6 978,362.1 4. Balance sheet profit 39,611.9 62,807.7 5. Own shares 0.0 42,160.3 1,429,986.6 1,529,515.9 B. MINORITY INTEREST 9 15,134.9 30,530.8 C. PROVISIONS 10 1. Provisions for severance payments 202,701.1 203,158.1 2. Provisions for pension payments 40,246.0 48,343.0 3. Provisions for deferred taxes 47,569.7 49,473.0 4. Other tax provisions 14,632.7 51,522.4 5. Provisions for accrued vacations and anniversary bonuses 94,791.5 105,035.5 6. Other provisions 80,889.2 108,356.3 480,830.2 565,888.3 D. LIABILITIES 11 1. Liabilities to credit institutions 608,863.0 588,891.0 2. Other interest-bearing, long-term liabilities 80,534.7 36,775.5 3. Payments received on orders 18,378.7 13,201.4 4. Trade accounts payable 263,117.4 318,000.5 5. Bills payable 21,885.3 35,435.7 6. Liabilities to affiliated companies 42,057.2 70,245.7 7. Liabilities to companies in which an investment is held 25,596.4 35,964.5 8. Other liabilities 129,932.6 167,967.2 1,190,365.3 1,266,481.4 1,671,195.5 1,832,369.7 E. DEFERRED INCOME AND ACCRUALS 6,956.6 8,761.4 IV. Cash in hand, checks, bank balances 136,393.4 94,905.6 1,314,535.7 1,644,319.4 C. PREPAID EXPENSES AND ACCRUALS 7 1. Deferred taxes 81,142.9 64,492.1 2. Other 4,050.3 3,280.5 85,193.2 67,772.6 TOTAL ASSETS 3,123,273.6 3,401,177.7 TOTAL LIABILITIES 3,123,273.6 3,401,177.7 F. CONTINGENCIES 12 51,063.0 43,751.8 66 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 67

VOEST-ALPINE STAHL-GROUP GROUP INCOME STATEMENT FOR THE 2000/2001 BUSINESS YEAR VOEST-ALPINE STAHL-GROUP CASH-FLOW STATEMENT FOR THE 2000/2001 BUSINESS YEAR (included in the report of the auditor) Note No. 1999/2000 2000/2001 EUR millions EUR millions Consolidated net profit 128.9 179.1 Depreciation/appreciation of fixed assets 209.3 220.3 Book value of sold assets 36.2 16.5 Increase (decrease) in long-term provisions 20.1 7.6 Changes in accruals and deferrals of deferred tax 20.9 18.8 Pro-rated income from associated companies 2.4 4.7 Other non-cash income/expenses 1.4 20.0 Cash-flow from the balance sheet 371.4 417.6 Income from the sale of fixed assets 52.4 21.2 Note No. 1999/2000 2000/2001 EUR thsds. EUR thsds. Cash-flow from the result 319.0 396.4 Changes in working capital 59.7 7.7 Cash-flow from operations 25 259.3 388.7 1. Sales revenue 14 2,711,673.9 3,166,093.3 2. Costs of goods sold 15 2,154,917,7 2,446,979.1 3. Gross profit or loss 539,147.1 719,114.2 4. Other operating income 16 108,838.7 119,916.1 5. Selling expenses 17 276,319.9 294,229.0 6. Administrative expenses 18 124,060.3 139,470.4 7. Other operating expenses 19 112,234.6 147,000.5 8. Subtotal line 1 through 8 (Operating Result) 152,980.1 258,330.4 9. Income from investments 20 a) Income from associated companies 14,658.6 15,945.3 b) Other income from investments 26,401.5 3,908.6 10. Net interest 21 32,442.4 26,869.8 11. Other financial result 22 2,249.0 4,187.2 12. Subtotal line 10 through 12 (Financial Result) 10,866.7 11,203.1 13. Ordinary result 163,846.8 247,127.3 14. Taxes on income and earnings 23 33,379.0 65,548.9 15. Minority interest 24 1,545.0 2,464.9 16. Consolidated net profit 128,922.8 179,113.6 Investment expenses 272.8 265.1 Income from the sale of investments 41.9 22.1 Expenses for changes in the scope of consolidation 6.0 25.7 Changes in other financial investments 3.4 4.7 Cash-flow from investment activities 26 240.3 264.0 Free cash-flow 19.0 124.8 Dividends, capital increases 36.1 31.5 Purchase of own shares 0.0 42.2 Changes in financial credit 13.3 80.5 Cash-flow from financing activities 27 49.4 154.2 Change in liquidity 30.4 29.4 Liquid assets, beginning balance 352.8 322.6 Changes in the scope of consolidation 0.2 9.3 Changes in liquidity 30.4 29.4 Liquid assets, closing balance 28 322.6 302.5 68 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 69

RIO ARADE, PORTIMAO DEVELOPMENT OF GROUP EQUITY DURING THE 2000/2001 BUSINESS YEAR in EUR thsds. Share Capital Capital Reserves Revenue Reserves Own Shares Balance Sheet Total Profit As of 1/4/1999 239,820.4 290,685.7 773,654.0 39,603.6 1,343,763.7 Consolidated Profit 89,326.7 39,596.4 128,923.1 Dividend Distribution 39,600.0 39,600.0 Currency Translation 153.7 153.7 Other Changes 2,946.4 2,946.4 As of 31/3/2000 239,820.4 290,685.7 859,880.5 39,600.0 1,429,986.6 Share Capital Capital Reserves Revenue Reserves Own Shares Balance Sheet Total Profit As of 1/4/2000 239,820.4 290,685.7 859,880.5 39,600.0 1,429,986.6 Consolidated Profit 116,305.9 62,807.7 179,113.6 Dividend Distribution 38,012.0 38,012.0 Purchase of own shares 42,160.3 42,160.3 Currency Translation 945.4 945.4 Other Changes 357.4 357.4 As of 31/3/2001 239,820.4 290,685.7 976,774.4 42,160.3 64,395.7 1,529,515.9 70 VOEST-ALPINE STAHL AG 2000/2001

GROUP DEVELOPMENT OF ASSETS TABLE ON 31/3/2001 DEVELOPMENT OF ACQUISITION AND MANUFACTURING COST DEVELOPMENT OF DEPRECIATION NET VALUES Changes in Currency Accumulated Changes in Currency Accumulated Book Book As of Scope of Translation Addi- Dis- Reclassi- As of Depreciation Scope of Translation Addi- Dis- Appre- Reclassi- Depreciation Value Value EUR thsds. 1/4/2000 Consolidation Difference tions posal fication 31/3/2001 1/4/2000 Consolidation Difference tions posals ciation fication 31/3/2001 31/3/2001 31/3/2000 I. INTANGIBLE ASSETS 1. Industrial rights 59,968.5 517.9 40.5 8,589.2 1,802.1 1,006.1 68,320.2 34,114.6 235.7 20.3 7,983.9 1,770.7 0.0 0.0 40,583.8 27,736.3 25,853.9 2. Goodwill 88,022.7 0.0 0.0 25,725.2 (0.2) 0.0 113,748.1 6,774.6 0.0 0.0 5,097.3 0.0 0.0 0.0 11,871.9 101,876.1 81,248.1 3. Payments on account 421.7 113.4 (0.3) 2,418.7 60.2 (268.7) 2,624.7 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 2,624.5 421.7 Total intangible assets 148,412.9 631.3 40.2 36,733.1 1,862.1 737.4 184,692.9 40,889.2 235.7 20.3 13,081.4 1,770.7 0.0 0.0 52,455.9 132,237.0 107,523.7 II. TANGIBLE ASSETS 1. Land, rights similar to land and buildings 896,668.1 14,834.3 1,041.5 16,684.5 22,148.8 12,293.4 919,372.9 556,246.7 8,250.8 391.2 22,006.5 20,053.6 0.0 1.5 566,843.2 352,529.8 340,421.4 2. Plant and machinery 3,007,591.3 43,651.1 856.2 103,149.9 68,356.0 84,789.1 3,171,681.6 2,178,237.6 29,646.0 362.2 157,974.1 64,427.4 0.0 (15.9) 2,301,776.6 869,905.0 829,353.7 3. Other plant, operating and office equipment 279,654.3 5,336.8 (71.7) 30,919.0 17,233.9 2,814.9 301,419.4 213,337.3 3,797.3 (83.4) 26,955.6 16,875.8 120.4 16.4 227,027.0 74,392.4 66,317.0 4. Advances paid and assets under construction 105,146.7 661.9 (54.9) 79,764.5 1,015.7 (100,634.8) 83,867.7 2.1 0.0 0.0 0.0 0.0 0.0 (2.1) 0.0 83,867.7 105,144.7 Total tangible assets 4,289,060.4 64,484.1 1,771.1 230,517.8 108,754.4 (737.5) 4,476,341.6 2,947,823.6 41,694.1 670.0 206,936.2 101,356.8 120.4 (0.1) 3,095,646.7 1,380,694.9 1,341,236.8 III.FINANCIAL ASSETS 1. Investments in affiliated companies 10,056.8 4,312.0 0.0 1,737.7 6,542.8 (3,894.9) 5,668.9 976.4 1,191.8 0.0 346.6 2,180.2 0.0 0.0 334.6 5,334.3 9,080.5 2. Loans to affiliated companies 4,531.3 0.0 0.0 0.0 1,007.1 0.1 3,524.3 42.1 0.0 0.0 0.0 42.1 0.0 0.0 0.0 3,524.3 4,489.2 3. Investments in associated companies 44,531.9 0.0 0.0 10,943.2 15,173.8 0.0 40,301.3 2,180.2 0.0 0.0 0.0 0.0 0.0 0.0 2,180.2 38,121.1 42,351.7 4. Loans to associated companies 13,633.9 0.0 (1.1) 0.0 1,323.6 0.0 12,309.2 286.9 0.0 0.0 0.0 (0.0) 0.0 0.0 286.9 12,022.3 13,347.0 5. Other investments 109,188.1 416.7 0.0 21,133.4 100,951.8 0.0 29,786.5 8,135.8 17.8 0.0 0.0 0.0 0.0 0.0 8,153.6 21,632.9 101,052.3 6. Loans to companies in which an investment is held 11,750.8 0.0 0.0 0.0 6,624.3 0.0 5,126.5 25.0 0.0 0.0 0.0 10.0 0.0 0.0 15.0 5,111.5 11,725.8 7. Securities (loan stock rights) held as fixed assets 90,258.1 832.6 0.0 1,926.8 1,579.0 0.0 91,438.6 176.3 20.8 0.0 3,787.0 0.1 0.0 0.0 3,984.0 87,454.6 90,081.8 8. Other loans 2,657.4 8.4 (1.0) 1,012.9 662.4 0.0 3,015.3 1.5 0.0 0.0 62.1 (0.2) 1.4 0.0 62.5 2,952.8 2,655.9 Total financial assets 286,608.4 5,569.7 (2.1) 36,754.0 133,864.7 (3,894.8) 191,170.5 11,824.2 1,230.4 0.0 4,195.7 2,232.2 1.4 0.0 15,016.7 176,153.8 274,784.2 Total fixed assets 4,724,081.7 70,685.1 1,809.3 304,004.9 244,481.2 (3,894.9) 4,852,205.0 3,000,537.0 43,160.2 690.3 224,213.3 105,359.7 121.8 (0.1) 3,163,119.3 1,689,085.7 1,723,544.8 72 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 73

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS USING IAS-STANDARDS FOR VOEST-ALPINE STAHL-GROUP 2000/2001 A. GENERAL PRINCIPLES The object of VOEST-ALPINE STAHL AG (4031 Linz, VOEST-ALPINE-Straße 1, company register No. FN 66209 t at the District Court in Linz) and of its Group companies is the manufacture, processing and the sale of materials made from steel, research and development in the areas of metallurgy, advanced metal processing and materials technology. The consolidated financial statements of VOEST-ALPINE STAHL AG for the 2000/2001 business year (1/4/2000 31/3/2001) have been prepared in accordance with the provisions of the International Accounting Standards Committee (IASC) in the version current for the 2000/2001 business year. This also applies to the comparison period for 1999/2000. The consolidated financial statements presented were prepared in compliance with the law governing consolidated financial statements (KonzAG) which was published in March of 1999. According to this law, a parent company preparing consolidated annual financial statements and a consolidated management report in line with international accounting standards is not obligated to prepare financial statements according to the national provisions in the respective commercial code. The financial statements of all essential consolidated companies, both domestic and foreign, were audited by independent auditors and accorded their unqualified certification. The orderly transfer from the annual financial statements of the companies prepared according to national regulations to the uniform consolidated regulations in line with the International Accounting Standards, IAS, has also been certified. The balance sheet date, according to IAS 27, is the balance sheet date of the parent company; the annual financial statements of fully consolidated companies were generally prepared with this balance sheet date. Exceptions are made only in cases, where foreign regulations oppose this requirement or in cases of companies newly added to the scope of consolidation. The differing balance sheet dates do not deviate by more than three months from the consolidated balance sheet date. The consolidated financial statements were prepared in thousands of EURO (EUR thsds.), the statements in the notes to the financial statements, unless indicated otherwise) are in millions of EURO (EUR millions). According to IAS 22.41 acquisition costs in excess of the assessed value of the identifiable assets and liabilities of the interest acquired by the purchaser on the day of the transaction, are to be reported as goodwill and carried as asset. Goodwill is to be depreciated by scheduled depreciation over the useful life, where a maximum useful life of 20 years is assumed. The respective right to elect netting with own funds without affecting earnings according to the Austrian Commercial Code does not exist according to IAS 22. According to IAS 17 the allocation of a leasing item to either the lessor or the lessee is assigned according to the criterion of assigning all essential risks and prospects, which are tied to the ownership of the leasing item. According to IAS 2 inventory is to be assessed at the lower of acquisition or manufacturing cost and net sales value. IAS and HGB differ primarily in the fact that the lower valuation according to IAS is strictly oriented on the consumer market, while the HGB aligns the valuation of raw materials, supplies and consumables generally on the replacement value market and the valuation of work in progress, finished products and merchandise on the consumer market. According to IAS 2 manufacturing costs comprise all production-related variable and fixed costs. While IAS 12 requires an assessment of deferred taxes for all temporary differences between the book value in the IAS balance sheet and the tax statement, the HGB requires deferred taxes only in cases, where temporary differences arise on the liability side. The reporting of deferred taxes on the asset side, according to HGB pursuant to section 198 paragraph 10 HGB is elective. The HGB is in line with the income statement- oriented "timing concept", while IAS 12 is in line with the balance sheetoriented "temporary concept". The presentation of deferred taxes on the asset side on losses carried forward is mandatory, if it is to be concluded that they will be consumed by future tax profits. 1. Goodwill 2. Leasing 3. Inventory 4. Deferred taxes The methods essential to the preparation of the accounts, the valuation and the consolidation for VOEST-ALPINE STAHL AG are as follows (stated according to section 245 paragraph 1 line 2 Austrian Commercial Code (HGB): While the HGB, following the principle of imparity, mandates the reporting of unrealized losses, profit can only be reported after it has been realized. According to IAS unrealized losses and gains from the valuation of foreign currency on the balance sheet date have to be reported on the balance sheet. 5. Valuation of foreign currency 74 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 75

6. Securities held as current assets According to the election right of IAS 25.19, securities held as current assets can be reported either at the lower of acquisition cost or market value or at market value on the balance sheet date. The securities held as current assets reported in this financial statement are valued at fair market value on the balance sheet date, not according to the strict principle of the lower of cost or market, as mandated by the HGB for items of the current assets. In line with IAS-Reporting, a duty to furnish detailed explanations to items of the balance sheet, the income statement, the cash flow statement and the development of the equity in the Notes to the Financial Statements exists. In addition, requirements to furnish further information on business segments and derivative financial instruments exist that are not mandated by the Austrian Commercial Code (HGB). 10. Expanded Disclosure in the Notes to the Financial Statements 7. Minority Interest While the HGB requires a presentation of minority interest within the Shareholders Equity under a separate item, IAS accords it a separate position between own funds and borrowed funds. 8. Social Capital Reserves Provisions for severance payments and anniversary bonuses are calculated on the partial value method, according to Austrian balance sheet regulations. IAS 19 requires the method of commitment cash value. The interest is based on the actual long-term interest rate in the capital markets on the balance sheet date; future pay raises are taken into account until the anticipated retirement. Provisions, therefore, are increasing more rapidly during the accumulation phase than if the partial value method of the Austrian Commercial Code (HGB) is applied. Already during the 1999/2000 business year, the transition was made for the financial statements of the individual Group companies to the valuation method required by IAS 19. Provisions are therefore valued at the cash value of accrued pension claims (projected-unit-cost method). 9. Other Provisions The calculation of provisions according to IAS 37 is based on differing criteria regarding underlying payment commitments and their probability of occurrence. According to IAS 37.14 a liability with undetermined effective date or undetermined amount is to be written on the liability side as a provision if it is probable that the fulfillment of a current obligation resulting from past events will lead to a disbursal of resources. Furthermore, a reliable estimate of the amount of the liability has to be possible. Different from the Austrian Commercial Code, the valuation is based on the highest probability of occurrence, not on the principle of commercial caution. Provisions for expenses are possible according to the Austrian Commercial Code, but not according to IAS. 76 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 77

B. PRINCIPLES OF CONSOLIDATION 1. Scope of Consolidation An overview of all companies of VOEST-ALPINE STAHL-Group is included at the end of the Notes to the Financial Statements. The determination of the scope of consolidation is made according to the provisions of IAS 27.11. Accordingly, aside from VOEST-ALPINE STAHL AG, 29 domestic and 30 foreign subsidiaries, in which VOEST-ALPINE STAHL AG directly or indirectly holds the majority of the voting rights or rather the possibility of legal and actual control, are part of the scope of fully consolidated companies. During the year under review, 53 affiliated companies whose influence on the net worth, financial and earnings position is negligible (individually and in total) are not consolidated. During the past business year, one acquisition took place that impacts the consolidated financial statements of VOEST-ALPINE STAHL AG. VOEST-ALPINE STAHL Linz GmbH acquired 100 % of ROTEC Zug AG. ROTEC Zug AG Interest in % 100.00 Purchaser VOEST-ALPINE STAHL Linz GmbH Date of initial consolidation 31 March 2001 Segment Flat Products Purchase price n. A. Goodwill EUR 12.6 millions Term of depreciation 20 years According to IAS 31, VAE AG and its consolidated subsidiaries and VOEST-ALPINE STAHLROHR KINDBERG GmbH are being included in the consolidated financial statements on a pro rata basis. The balance sheet date of 31/12 of VAE-Group differs from the consolidated balance sheet date. No developments of importance to the net worth, financial and earnings situation have taken place in the period between the two balance sheet dates. 12 companies are included in the consolidated financial statements by way of at equity consolidation. At the end of March 2001, VOEST-ALPINE Europlatinen GmbH & Co KG acquired the Italian tailored blanks manufacturer EUROWELD s.r.l.; the initial consolidation in the Group financial statement will take place during the following business year. The acquisitions of the companies and the ensuing initial consolidation have the following impact on the Group s balance sheet: The scope of consolidation during the year under review developed as follows: Cumulative value 31/3/2000 31/3/2001 EUR millions EUR millions Fully Pro rata Consolidation at Scope of Consolidation consolidated consolidation equity As of 1/4/1999 42 22 12 Included for the first time during the year under review 17 4 1 Changes in the type of consolidation 1 1 Disposals during the year under review As of 31/3/2001 60 26 12 Of which foreign 30 19 4 The initial consolidation for companies included for the first time occurs at the time of acquisition. Fixed Assets 12.84 47.59 Current Assets 9.38 88.80 Prepaid expenses and accruals 0.17 1.66 ASSETS 22.39 138.05 Equity 6.90 66.57 Minority Interest 0.00 0.39 Provisions 0.35 14.27 Liabilities 14.86 56.31 Deferred income and accruals 0.28 0.51 LIABILITIES 22.39 138.05 Employees 347 504 The companies consolidated for the first time are included in the income statement for the 2000/2001 business year with sales revenue of EUR 55.36 millions, an operating result of EUR 2.84 millions and a net profit of EUR 1.26 millions. 78 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 79

D. CURRENCY TRANSLATION 2. Methods of Consolidation Capital consolidation occurred at the time of transition to IAS Accounting Standards effective 1/4/1997. Additions after 1/4/1997 will have an initial consolidation date concurrent with the date of their acquisition. Capital consolidation is based on the book value method. This method offsets the respective book value of an investment against the proportionate equity at the time of the acquisition. Should a difference arise between the acquisition cost and the proportionate equity at the time of the acquisition and if it can be identified, it will be included in the assets of the subsidiary. Remaining differences on the asset side are reported as goodwill and depreciated over the time of their use. The statements of fully consolidated foreign subsidiaries and the prorated equity of foreign associated companies were translated according to IAS 21 in line with the concept of functional currency. The currency for all companies is the respective local currency, since the companies conduct their business independently in regard to finance, economy and organization. The conversion of the balance sheet occurs at the middle rates on the balance sheet date, with exception of equity items (historical currency conversion rate). The conversion of the income statement uses average annual conversion rates. During the initial consolidation in the business year under review differing amounts on the assets side (amounting to EUR 17.65 millions) comprised hidden reserves amounting to EUR 1.98 millions and EUR 15.67 millions were written as goodwill on the asset side. Differing amounts on the asset and liability side of various subsidiaries are not netted. Differing amounts arising from currency translation of asset and liability items compared to the prior year s conversion, as well as translation differences between the balance sheet and the income statement are treated in such a way as to have no impact on results. The consolidation of joint companies is done on a pro rata basis according to uniform principles. Interim results, expenses and income, as well as inter-company receivables and liabilities between consolidated companies are eliminated. For consolidated processes that impact the results corresponding tax deferrals and accruals are formed. Consolidation measures due to relationships with pro rata consolidated companies are being implemented in proportion to the investment. For companies consolidated at equity the differing amount from equity offset is being determined on the same principles as for fully consolidated companies. As far as possible, valuation is adapted to uniform Group valuation and interim results are eliminated. Translation differences arising from the development of the equity in comparison with the initial consolidation are offset against reserves in such a way as not to have an impact on results. Translation differences from the conversion of foreign monetary currency items in the individual financial statements due to currency exchange fluctuations between the entry date of the transaction and the balance sheet date are reported in the respective period impacting the result. The currency exchange rates of essential currencies have changed as follows: Currency Middle Rate on the Balance Sheet Date Annual Average Rate 31/3/2000 31/3/2001 31/3/2000 31/3/20001 USD 0.9553 0.8802 1.0244 0.9082 DEM 1 ) 1.9558 1.9558 1.9558 1.9558 GBP 0.5985 0.6190 0.6357 0.6143 ITL 1 ) 1,936.27 1,936.27 1,936.27 1,936.27 1) The middle rate on the balance sheet date converted with the fixed Euro exchange rate valid until 1/1/2000 80 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 81

E. ACCOUNTING AND VALUATION PRINCIPLES The financial statements of all companies included are based on uniform Group accounting and valuation principles. The compliance with the uniform IAS Accounting and Valuation Standards was audited by the individual auditors of all essential Group companies and certified. Nonessential companies consolidated at equity are in part not adapted to the uniform Group valuation principles. Interest expenses for the period of production are not included. Assets of minor value up to EUR 363.36 are depreciated in full during the year of their acquisition, analogous to the course of action required by the HGB. Scheduled depreciation of fixed assets subject to wear is based on uniform Group periods of useful life: Fixed Assets Intangible assets are reported at acquisition cost less scheduled linear depreciation (useful life span between 3 and 5 years), in line with IAS 38. There were no research expenses written as assets according to IAS 38.42. No development costs exist that could be carried as assets according to IAS 38.45. During the last business year, research and development expenses amounting to EUR 24.58 millions were reported as expense item. Goodwill, resulting from acquisitions reported in individual financial statements (if equity added to hidden reserves does not amount to the acquisition cost) is generally written on the asset side and depreciated. If acquisitions or strategic investments are made for the qualitative or quantitative expansion of the core business of the company, goodwill is depreciated over a period of 20 years, in all other cases the period of depreciation is generally 10 years. Differences on the liability side, arising from the inclusion of companies for the first time, are written as liabilities and resolved on schedule impacting the results. The valuation of tangible assets according to IAS 16 is based on the cost of acquisition or manufacture, less scheduled linear depreciation (IAS 16.41) or the lower amount that could be realized through a sale of the asset. Long-term extraordinary devaluation is accounted for as extraordinary depreciation. During the 2000/2001 business year, the useful life span for buildings, on which their depreciation is based, was increased from 25 to 33 years. The impact of this change is of minor importance. % Commercial buildings and plants and other buildings 2.0 20.0 Plant (technical) and machinery 3.3 25.0 Other plant, operating and office equipment 5.0 20.0 Leased fixed assets, which should be viewed as asset acquisitions with long-term financing, are written as assets at the lower of cash or market value, in line with IAS 17 (accounting for leases), due to the risks and opportunities arising from the ownership of the asset. Depreciation is scheduled to occur over the commercial useful life of the asset or, if shorter, over the term of the leasing contract. Payment commitments resulting from future leasing rates are discounted and written as liabilities. Assets utilized under sale and lease back agreements are written as assets and depreciated based on the original annual depreciation. Items ceded under all other leasing and lease agreements are treated as operative leasing and are reported by the lessor or landlord. Lease payments are presented as expense. Investment subsidies are written as liabilities and dissolved according to the useful life span of the asset granted the investment. Subsidies for investments resulting from official requirements adding no additional commercial value for the company are offset against acquisition cost on the asset side. The manufacturing cost of self-constructed assets is comprised of the individual costs and a proportionate share of general material and manufacturing cost necessary for production. Depreciation due to manufacturing and proportionate expenses for the company s social security costs and the voluntary social contributions of the company are also included here. During the 2000/2001 business year subsidies of public authorities amounting to approximately EUR 4.55 millions (prior year: 2.19 millions) for investments, research and development activities and measures to improve the labor market were received impacting income. Shares in associated companies as well as in other affiliated companies, insofar as they are not investments of minor importance, are generally valued at their pro 82 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 83

rata equity based on the equity method. Generally, the same valuation methods are utilized that apply to fully consolidated companies. Receivables in foreign currency are valued on the balance sheet date at the average exchange rate. Other investments are valued at their acquisition cost less applicable extraordinary depreciation to take decreased value into account. Loans are generally valued at the lower of acquisition cost or value on the balance sheet date. Securities and loan stock rights held as assets are valued at the lower of acquisition cost and/or value on the balance sheet date. The securities reported in the financial statements are for the most part used to supply the legally required coverage for severance and pension payments. Receivables in a currency that is part of the European Economic and Monetary Union are valued at the Euro exchange rates set in perpetuity for participating currencies on 31/12/1998. Receivables without interest or with low interest with a term exceeding one year are valued at the discounted cash value. Securities held as current assets are valued at the existing stock exchange or market value on the balance sheet date. Cash in hand and balances with credit institutions are valued at the current rate on the balance sheet date. Current Assets Inventories comprise raw materials, supplies and consumables as well as merchandise valued at acquisition cost and products valued at manufacturing cost. There were no restrictions on use of these items on the balance sheet date. Should the values be lower on the balance sheet date, due to a decrease in prices on the stock exchange or the market, those lower values are presented. Cost calculation is generally based on the standard schedule cost method based on the capacity in the next period. Manufacturing costs comprise exclusively directly associated cost (manufacturing material, manufacturing wages) and pro rated general materials and manufacturing cost based on capacity utilization. General administrative expenses and expenses for voluntary social contributions and contributions to the company s retirement provisions and interest on borrowed capital are not reported as assets. Acquisition and manufacturing costs are determined for similar assets based on the method of weighted average prices or similar methods. For risks to the inventory, appropriate discounts due to storage time or reduced usability are calculated. Assets are examined on the balance sheet date for signs that impairment in value has occurred. If such signs are present, the value in use or the respective higher sales value for the asset in question is determined. If this value is below the assessed book value of the asset, the asset is subject to extraordinary depreciation. Deferred taxes are generally determined for all temporary deviations between the IAS accounts and the tax accounts of the Group companies as well as for consolidation activities generating additional temporary deviations. Furthermore, tax deferrals on the asset side are formed for all losses carried forward, where dissolution can realistically be assumed. Impaired value of assets Deferred Tax Accruals Receivables and other assets are written on the asset side at acquisition cost. Discernable risks are covered through credit insurance; a possible retention for own use is taken into account through appropriate value adjustments. The calculation of deferred taxes according to IAS 12 (income taxes revised 1996) is based on the balance-sheet-liability method. The calculation for deferred taxes of domestic companies is based on a tax rate of 34 %. Calculations for foreign companies are based on their respective local tax rate. 84 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 85

Borrowed Capital Provisions for payments to employees that have to be reported according to IAS 19 for VOEST-ALPINE STAHL-Group comprise provisions for pension and severance payments as well as for anniversary bonuses. All commitments are valorized for current pension payments based on the consumer price index, the current increase in collective wage contracts or the general company salary index and wage index. VOEST-ALPINE STAHL-Group s accounting adheres to the principle that these commitments can at any time be transferred or transposed to a third party. The commitments are calculated during the 2000/2001 business year for the first time based on the Heubeck tables that are also representative for Austrian circumstances. The death, marriage and disability probabilities included therein are representative for the staff of the Group. Actuarial gains and losses arising from the calculation of these valuations are immediately realized upon identification. The calculation is based on an interest rate of 6 % and an average increase in payments and pensions of 2.5 %. The calculation of commitments on the balance sheet date is based on the projected unit credit method. This method determines the individual cash value of the rights accrued by the employee, taking into account the assumed emolument and pension increases. The calculation is based on a pension age of 61 years for men and 56 years for women, respectively. For valuation of other provisions please refer to the explanations in item "A. 9". Liabilities are reported at their redemption value. Liabilities in a currency that is a part of the European Economic and Monetary Union are valued at the Euro exchange rates set in perpetuity on 31/12/1998. During the preparation of a consolidated report, estimates and assumptions have to be made to a certain degree that have an impact in regard to reported assets and liabilities, the reporting of other liabilities on the balance sheet date and the statement of income and expenses during the period under review. The actual amounts arising in the future may deviate from this estimation. Estimates Severance Employees of the Austrian Group companies receive, in cases of termination by the employer or in case of retirement, a one-time severance payment. The amount of severance is tied to the length of employment and is calculated as a multiple of the last month s salary. The right to severance begins at the end of the third year of service and in that case amounts to two times the last month s payment. After a time of service of 25 years, the maximum amount of severance is reached comprising 12 months salary. Pension Commitments VOEST-ALPINE STAHL-Group s pension commitments comprise defined contribution pension commitments and defined benefit commitments. While defined benefit pension commitments are satisfied through fixed payments to APK-Pensionskasse AG pension fund or as contributions to an increase in coverage according to ASVG, defined benefit commitments are derived either from a percentage per year of service of the salary or wage amount when leaving the company or from a valorized fixed amount per year of service rendered. Defined benefit commitments are reported in the financial statement of the respective company until the contractual date when the pensions become irrevocable is reached. After irrevocability is reached, funding through APK Pensionskasse AG comes into effect. 86 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 87

F. NOTES TO THE BALANCE SHEET The detailed development of fixed assets is shown in the table Development of Assets. The impact of changes in the scope of consolidation is shown separately. Currency translation differences arising from the difference in the translation of assets at the beginning and end of the year are also shown as separate items. During the year under review, extraordinary depreciation on tangible assets (according to IAS 36) amounted to EUR 5.38 millions (prior year: EUR 0.03 millions). On 31/3/2001 there are restrictions on the disposition of tangible assets amounting to EUR 3.16 millions (prior year: EUR 14.67 millions). 1. Intangible Assets A detailed development of intangible assets is shown in the table Development of Assets, which is a part of this financial statement. Depreciation on intangible assets is shown in the table Development of Assets and also contained in the income statement item "depreciation on tangible and intangible assets". Maintenance costs are generally reported as expenses. A detailed development of tangible assets is shown in the table Development of Assets that is part of this financial statement. 3. Financial Assets 2. Tangible Assets A detailed development of tangible assets is shown in the table Development of Assets that is part of this financial statement. The market value on the balance sheet date of securities reported at acquisition cost held as financial assets is EUR 1.1 millions (prior year: EUR 3.24 millions) above the book value (IAS 25.49). Tangible assets also comprise leased assets, which due to the structure of the leasing agreement economically have to be included in the tangible assets of VOEST- ALPINE STAHL-Group. On 31/3/2001 this amount, reported as assets, is EUR 3.58 millions (prior year: EUR 14.66 millions). It is included in the balance sheet items "Plant (technical) and machinery (EUR 0.20 millions) and real estate, similar rights and buildings (EUR 3.38 millions). Securities amounting to a value of EUR 29.49 millions (prior year: EUR 41.53 millions) are pledged as securities for investment credits from the European Investment Bank (IAS 25.49). The segmentation of inventory is detailed in the following overview: 4. Inventory From the utilization of such assets reported on the balance sheet arise commitments for minimum lease payments of: 31/3/2000 31/3/2001 EUR millions EUR millions 31/3/2000 31/3/2001 EUR millions EUR millions Remaining term less than one year 8.18 0.98 Remaining term between one and five years 0.84 2.84 Remaining term longer than five years 2.34 5.71 Raw materials, supplies and consumables 186.51 225.21 Semi-finished products 130.40 158.22 Finished products 119.63 170.53 Trading goods 30.17 36.21 Services not yet invoiced 12.82 4.47 Advance payments made 9.70 1.98 Total 489.23 596.62 The cash value of all leasing rates is EUR 3.15 millions (prior year: EUR 49.51 millions), financing costs from lease financing amount to EUR 1.72 millions (prior year: EUR 1.37 millions). Minimum leasing payment commitments for operate leasing within the Group are primarily for railroad cars, automobiles and EDP equipment; however, they are of amounts that are of minor importance. Of existing inventory on 31 March 2001 amounting to EUR 596.62 millions, EUR 1.84 millions (prior year: EUR 0.31 millions) are reported at their net sales value. Revalorization according to IAS 2.31 was not performed during the year under review. On 31/3/2001, no inventory of pro rata consolidated companies is pledged as securities for liabilities (prior year: EUR 2.14 millions). 88 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 89

5. Receivables and Other Assets Remaining Remaining Book Value Book Value term of term of 31/3/2000 31/3/2001 up to 1 year more than 1 year The item prepaid expenses and accruals contains no expenses for borrowed funds and discounts, as in the prior year. 7. Prepaid Expenses and Accruals EUR millions EUR millions EUR millions EUR millions Trade accounts receivable 352.12 437.57 437.56 0.01 Deferred taxes on the asset side are reported as part of the item prepaid expenses and accruals and deferred taxes reported under the item other provisions Receivables from affiliated companies trade accounts receivable 8.09 6.24 6.24 0.00 report a balance of EUR 15.02 millions (prior year: EUR 33.58 milions) and arise from differences in book values of the following balance sheet items: from financing and clearing 8.59 3.82 3.82 0.00 from profit pools and dividend payments 0.18 0.10 0.10 0.00 other 0.09 0.53 0.53 0.00 Receivables from companies in which an investment 31/3/2000 31/3/2001 Assets Liabilities Assets Liabilities EUR millions EUR millions EUR millions EUR millions is held trade accounts receivable 10.51 16.80 16.80 0.00 from financing and clearing 3.05 18.86 18.86 0.00 from profit pools and dividend payments 6.44 4.86 4.86 0.00 from the dispoal of assets 0.02 0.00 0.00 0.00 other 0.18 0.02 0.02 0.00 Companies Fixed assets 89.45 120.29 68.93 55.51 Current assets 5.52 62.69 13.05 119.46 Provisions for severance and pension payments 67.85 0.00 61.01 0.00 Tax losses carried forward 89.14 0.00 73.54 0.00 Other liabilities 90.51 72.09 48.35 60.85 Other receivables and other assets from financing 8.20 14.28 13.51 0.76 from the disposal of assets 22.30 6.34 6.34 0.00 other 72.83 101.90 98.50 3.40 492.60 611.32 607.14 4.17 Subtotal 342.48 255.07 264.88 235.82 Consolidation Elimination of inter-company profit 14.96 0.00 16.57 0.00 Hidden reserves 0.00 7.10 0.00 6.70 Other 8.97 5.49 7.61 2.35 Subtotal 23.93 12.59 24.18 9.05 Differences in book values (netted) 98.70 44.19 6. Securities and Shares The item securities and shares held as current assets discloses mainly the shares Deferred taxes (netted) 33.60 15.02 held by Group companies in the R54-capital investment fund amounting to EUR 181.99 millions (prior year: EUR 186.20 millions), as well as other securities from companies consolidated at equity amounting to EUR 7.21 millions (prior year: EUR The decrease in the balance of prepaid expenses and accruals for deferred taxes 10.13 millions). from 1999/2000 to 2000/2001 of EUR 18.58 millions impacts expenses in the amount Other securities reported in the current assets for the first time in the financial state- of EUR 18.23 millions (compare item 23). An additional amount of EUR 0.35 millions ments of 31/3/2001 include the investment in VA Technologie AG (19.05 %). The resulted from changes with no impact on results, due to initial consolidation, final investment, so far reported as fixed asset was reclassified as a current asset during consolidation and changes in the type of consolidation of Group companies. the business year under review (EUR 100,224.9 thousand), since the prerequisite for an asset, to lastingly serve business activities, no longer applies. The original recip- Due to the tax regulations currently in effect, it can be assumed that the differing rocal investment with VA Technologie AG of 25 % has in the meantime been reduced amounts between the tax rate determination and the proportionate equity of sub- to 19.05 % of VA TECHNOLOGIE AG held by VA STAHL AG and 10.93 % of VA STAHL sidiaries included in the consolidated financial statements will remain generally tax- AG held by VA TECHNOLOGIE AG. free. Therefore, no tax deferrals took place. 90 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 91

8. Group Equity The development of Group equity reported in the balance sheet of VOEST-ALPINE STAHL-Group is shown in a separate table Development of Equity, which is a part of this financial statement. The share capital on the balance sheet date amounted to ATS 3,300 millions and is divided into 33.0 million share certificates. The transition to EUR 239.82 millions has been registered in the company ledger. The statutes of VOEST-ALPINE STAHL AG authorize the Managing Board to increase the share capital until 30 June 2004 by a further EUR 47.96 millions, if necessary in several tranches, by way of issue of new individual share certificates. The transition of equity on 31/3/2001 reports a capital reserve of EUR 290.69 millions comprised of EUR 200.46 millions restricted reserves and EUR 90.23 millions nonrestricted capital reserves. Restricted capital reserves are only to be used to equalize a balance sheet loss that would otherwise have to be reported. The purchase of own shares has the following impact on the individual equity categories (SIC 16): EUR thsds. EUR thsds. Capital stock 239,820.35 Own shares 9,616.79 230,203.56 Capital reserves 290,685.74 Own shares 8,038.67 282,647.07 Unrestricted revenue reserves 978,362.35 Own shares 24,504.84 953,857.51 Balance sheet profit 62,807.72 Own shares 0.00 62,807.72 Shareholders equity 1,529,515.86 Minority interest comprises shares in the equity of consolidated Group companies held by third parties. Minority interest is particularly high in the case of VAE Group, which is consolidated pro rata. 9. Minority Interest The revenue reserves reported in the table Development of Equity comprise solely unrestricted revenue reserves. Provisions for severance payments developed as follows during the year under review: 10. Provisions The consolidated balance sheet profit reported in the consolidated financial statements is identical to the balance sheet profit of VOEST-ALPINE STAHL AG, which is still being prepared according to national legal requirements and is to be distributed as a dividend. On 30/6/2000, VOEST-ALPINE STAHL AG purchased 1,323,300 (4.01%) of its own shares. It is intended to use these shares for an employee share ownership program that was approved by the Annual General Shareholders Meeting of 3/7/2000. The own shares are openly deducted from the equity. 31/3/2000 31/3/2001 EUR millions EUR millions Cash value of the severance payment commitment (PBO) = Provisions for severance payments on 1/4 209.46 202.70 Changes in the scope of consolidation 2.54 2.31 Service costs and actuarial result 16.80 14.01 Interest expense 12.58 12.16 Cash value of the severance payment commitment (PBO) = Provisions for severance payments on 31/3 202.70 203.16 For the 2000/2001 business year there is a time of service expense of EUR 9.0 millions and a total amount of EUR 18.6 millions for severance payments made. The actuarial result is EUR 4.4 millions. 92 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 93

Provisions for pension payments developed as follows in 2000/2001: 31/3/2000 31/3/2001 EUR millions EUR millions Provisions for other personnel expenses comprise mainly provisions for restructuring expenses, performance bonuses and variable salary components. Cash value of pension commitments (PBO) on 1/4 100.70 107.35 Changes in the scope of consolidation 0.71 2.81 Service costs and actuarial result 1.80 1.75 Interest expense 5.56 6.44 Cash value of pension commitments (PBO) on 31/3 107.35 114.85 Pension fund assets 67.10 66.51 Provisions on 31/3 40.25 48.34 For the composition of provisions for deferred taxes refer to Note 6 "Prepaid Expenses and Accruals". The development of other provisions that are valued according to IAS 37 is shown in the following table: Changes in the scope Currency As of of conso- Translation Con- Re- Allo- As of Of which in EUR millions 1/4/2000 lidation Difference sumed versal cation 31/3/2001 long-term Provisions for accrued vacation 50.96 1.10 12.50 16.95 56.51 Provisions for anniversary bonuses 43.85 0.14 1.06 0.15 5.75 48.53 48.53 Provisions for other personnel expenses 23.08 0.84 0.02 18.35 2.39 35.21 38.37 2.51 Tax provisions 14.63 4.44 0.23 6.85 0.02 39.55 51.52 Provisions for deferred taxes 47.57 0.44 0.13 8.44 0.17 10.20 49.47 49.47 Provisions for future back charges and missing initial billing 21.27 0.03 9.08 3.10 9.82 18.94 6.72 Provisions for guarantees and other risks 10.51 0.22 0.01 1.48 1.73 5.35 12.88 1.22 Provisions for imminent losses from pending transactions 2.91 3.66 0.09 7.25 6.41 Other provisions 23.11 1.01 0.02 7.33 6.66 21.65 31.76 4.14 Total 237.89 8.22 0.39 68.75 14.31 151.73 314.39 112.59 Remaining Remaining Book Value Book Value term of term of 31/3/2000 31/3/2001 up to 1 year more than 1 year EUR millions EUR millions EUR millions EUR millions Liabilites to credit institutions 608.86 588.90 308.72 280.18 Other long-term interest-bearing liabilities 80.53 36.78 3.61 33.17 Advance payments received on orders 18.38 13.20 7.80 5.40 Trade accounts payable from asset acquisitions 48.56 49.10 49.10 0.00 other 214.56 268.90 267.18 1.72 Bills payable Own bills 21.89 35.44 35.44 0.00 Liabilities to affiliated companies trade accounts payable 36.35 58.70 58.70 0.00 from financing and clearing 5.61 7.36 6.96 0.40 from asset acquisitions 0.05 0.09 0.09 0.00 from other 0.04 4.10 4.10 0.00 Liabilities to companies in which an investment is held trade accounts payable 1.37 2.18 2.18 0.00 from financing and clearing 23.62 33.45 33.45 0.00 from asset acquisition 0.00 0.19 0.19 0.00 other 0.61 0.14 0.14 0.00 Other liabilities from taxes 16.65 28.26 28.24 0.02 from social security 16.12 16.65 16.65 0.00 from financing 7.19 3.29 2.74 0.55 from asset acquisitions 0.03 7.69 7.67 0.02 other 89.94 112.06 110.60 1.46 1,190.36 1,266,48 943.56 322.92 11. Liabilities 94 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 95

12. Contingencies 13. Financial Instruments Book Value Book Value 31/3/2000 31/3/2001 EUR millions EUR millions Guarantees and warranties 46.66 32.22 Letters of comfort 2.90 6.84 Bill commitments 1.50 4.44 Other 0.00 0.25 51.06 43.75 Contingencies are valued according to IAS 37. According to IAS 32 a differentiation is made between original and derivative financial instruments. A) ORIGINAL FINANCIAL INSTRUMENTS Original financial instruments are trade accounts receivable and payable (main business) and financial receivables and debts. Existing original financial instruments are evident from the balance sheet. Credit risk Credit risk describes losses, which can occur through non-fulfillment of contractual obligations of individual partners. The imminent credit risk in the main business is mostly hedged through credit insurance and bank securities (guarantees, letters of credit). Internal guidelines establish credit criteria and therefore control credit risk from original financial instruments, for instance through bank limits. cy and the possibility to utilize revolving credit agreements with banks to their limits, a contractually agreed liquidity reserve of EUR 72.67 millions exists to bridge possible downturns due to the economy. Price risk Determination of price risk: VOEST-ALPINE STAHL AG, to quantify interest and currency risk, utilizes the value at risk concept. Based on the risk metrics data of J.P. Morgan the maximum loss potential for the next business day and year is determined with a 95 % certainty. The correlation of the individual currencies is taken into account. The interest rate management also utilizes the present value basis point method. Currency risk Currency risk arises from the fact that the value of a financial instrument can change due to exchange rate fluctuations. A first hedge is initially provided through items that are naturally self contained, for instance trade receivables in USD opposed to liabilities for the purchase of raw materials in USD (USD netting). A further possibility arises from the utilization of derivative hedging instruments. VOEST-ALPINE STAHL AG hedges the budgeted foreign currency payment flows (net) of the next 12 months. Hedging for a longer term only occurs in the case of contractual business projects. Budgeting differentiates between recurrent business and project business. Project business is only included after a contract has been signed, while recurrent business is budgeted for on the basis of forecasts. The coverage ratio is between 60 % and 90 %. The further the cash flow is in the future, the lower the security ratio. FOREIGN CURRENCY PORTFOLIO 2000/01 (NET) VOEST-ALPINE STAHL-GROUP The credit risk for derivative financial instruments is limited to transactions with positive market value and of those to replacement cost. Derivative transactions are DKK 4 % CHF 3 % NOK 3 % USD 69 % almost exclusively based on standardized global contracts for financial futures. SEK 7 % GBP 14 % Liquidity risk Liquidity risk is the risk to be able to access financial funds at any time to be able to pay liabilities incurred. Apart from financial planning, a correspondent financial poli- OUTFLOWS ARE PREVALENT IN USD, INFLOWS PREVAIL IN ALL OTHER CURRENCIES. 96 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 97

Interest Rate Risk Interest rate risk results from fluctuation in the market rate of interest, which can lead to fluctuation in the value of a financial instrument. VOEST-ALPINE STAHL AG differentiates between cash flow risk (the risk that interest expenses or interest income change for the worse) for variable interest financial instruments and cash value risk for fixed interest financial instruments. Should the interest rate rise by 1 %, net interest expense for variable interest financial instruments would increase by EUR 1.93 millions (prior year: EUR 1.82 millions). The cash value risk determined on the basis of the present value basis point method as of 31/3/2001 for fixed interest financial instruments on the asset side amounts to EUR 6.56 millions (prior year: EUR 5.23 millions) and on the liabilities side EUR 5.03 millions (prior year: 6.25 millions) in case of an interest rate change of 1 %. In case of a drop in interest rates of 1 %, VOEST-ALPINE STAHL AG would have a net cash value loss of EUR 1.53 millions (prior year: EUR 1.02 millions for a drop in interest rates of 1 %). The minimal cash value risk is reflected in the well-balanced portfolio structure of asset and liability side. INTEREST RATE TERMS (change in cash value given 1 % increase in interest rates for the respective interest rate terms) VOEST-ALPINE STAHL-GROUP EUR millions 1.4 0.9 0.4 With an interest rate commitment of 3 years the weighted average interest rate on the asset side is 5.02 % and on the liability side 4.43 % with an interest rate commitment of 1 year. Interest rate subsidies of EUR 0.41 millions for investments in environmental protection measures are included on the liability side. Without the interest rate subsidies, the weighted average interest rate on the liability side is 4.50 %. Weighted Average Sensitivity to average term of 1 % change Cash-flow- Assets interest interest rate in interest rate risk Value at Risk (EUR millions) rate commitment (EUR millions) (EUR millions) (EUR millions) ASSETS 346 5.02 % 3 years 6.56 2.26 6.48 LIABILI- TIES 574 4.43 % 1 year 5.03 4.19 4.80 NET 228 0.59 % 1.53 1.93 1.68 The items on the asset side are invested in the money market as liquidity reserve and, in the amount of EUR 276 millions (prior year: EUR 267.87 millions), in securities investment funds. There are 4 investment sub funds grouped into two investment fund groups. One of these investment fund groups is utilized for the coverage of severance payment and pension commitments. The performance of the funds during the year under review in this annual report was not able to meet the pre-set benchmarks. The difference in performance is a result of the weaker performance of the V104 stock fund compared to the benchmark. From the establishment of the funds, however, the benchmarks have been clearly exceeded. The portfolio on the liability side comprises as follows: -0.1 CREDIT PORTFOLIO BY TYPES OF CREDIT VOEST-ALPINE STAHL-GROUP -0.6 PROCEDURAL CREDITS 5 % COMMERCIAL CREDITS 58 % -1.1 ERP CREDITS 5 % 1y 2y 3y 4y 5y 6y 7y 8y 9y 10y -1.6 LIABILITIES ASSETS NET EXPORT CREDITS 32 % 98 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 99

CREDIT PORTFOLIO BY CURRENCIES tracting) and the back office (transaction processing) as well as entry into the books VOEST-ALPINE STAHL-GROUP is organizationally separate. OTHER 4 % CHF 3 % USD 3 % The business practices employed are audited annually by an international auditor (by Ernst & Young for the year under review). GBP 5 % NLG 12 % DEM 21 % CREDIT PORTFOLIO BY INTEREST RATE TYPES VOEST-ALPINE STAHL-GROUP FORWARD FIXED INTEREST RATE 3 % FIXED INTEREST RATE 41 % ATS 52 % VARIABLE INTEREST RATE 56 % Inventory of open derivative financial instruments as of 31/3/2001: Nominal Value Fair Value (deviation from (in EUR millions) nominal value) Term 55 % less than one year Currency futures 76.67 0.46 35 % 1 2 years Currency options 24.50 0.99 less than 1 year Interest rate options 25.44 0.29 less than 5 years 94 % less than Interest rate swap 96.36 0.14 5 years Total 222.97 0.38 Fair Value Derivative currency transactions are valued daily according to the marking to market method, interest rate transactions are valued monthly. During the evaluation the value is determined that could be realized, if the hedging operation was netted (including transaction cost and bid-offer spreads). B) DERIVATIVE FINANCIAL INSTRUMENTS Derivative financial instruments are used exclusively for hedging and include interest rate and currency swaps, cross currency swaps, currency futures and currency options. Risk from the fluctuation of the price of raw materials (excluding currency risk) is not hedged using derivative instruments. The Group treasury of VOEST-ALPINE STAHL AG, responsible for the contracting of derivative instruments, acts as a service center for VOEST-ALPINE STAHL-Group, not as profit center. The scope of activities is detailed in internal guidelines. To ensure efficient risk control and based on the principle of multiple control, the front office (transaction con- 100 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 101

G. NOTES TO THE INCOME STATEMENT For the first time the income statement in the consolidated financial statements has Other income comprises in particular income from secondary transaction and real- been established according to the cost of sales format. The breakdown of the pre- ized exchange rate gains from currency translation. VOEST-ALPINE STAHL-Group ceding period has been adapted accordingly. presents all income as part of other operating income that is not directly part of the core business income (for instance energy supply, EDP services and on site services). 14. Sales Revenue The companies of VOEST-ALPINE STAHL-Group achieved total sales revenues of EUR 4,003.03 millions for the 2000/2001 business year. After elimination of internal sales revenue of EUR 836.94 millions, the external sales revenue amounted to EUR 3,166.09 millions. Selling expenses include in particular expenses incurred during sales activities such 17. Selling Expenses Sales by Division 1999/2000 2000/2001 as marketing, distribution and logistics. EUR millions EUR millions Flat Products 2,088.82 2,426.68 Long Products 670.05 779.33 External sales volume of the divisions 2,758.87 3,206.01 Consolidation between divisions 47.20 39.92 External sales revenue for the Group 2,711.67 3,166.09 This item includes all expenses for general administration, provided they are not part 18. Administrative of manufacturing expenses. Expenses Sales by Region 1999/2000 2000/2001 EUR millions EUR millions Sales revenue domestic 730.11 845.57 Sales revenue export 1,600.50 1,778.97 Sales revenue foreign 381.06 541.55 2,711.67 3,166.09 Taxes, insofar as they are not taxes 1999/2000 2000/2001 EUR millions EUR millions 19. Other Operating Expenses 15. Production costs for The manufacturing costs include personnel expenses amounting to EUR 616.60 mil- on income and earnings 3.42 3.81 Depreciation of goodwill 3.91 4.84 the performance to achieve the sales revenue lions (prior year: EUR 584.49 millions) and depreciation on tangible and intangible assets of EUR 196.07 millions (prior year: EUR 182.37 millions). The remaining expenses reported as manufacturing costs comprise primarily services and materi- Book losses from the sale of fixed assets 0.93 3.98 Other operating expenses 103.97 134.37 112.23 147.00 als (in particular precursor materials and energy) from third parties utilized during the production process of sold products. The other operating expenses comprise in particular expenses in relation to The material expenses included in the production costs for the period under review secondary transactions the income from which is reported in other operating income amount to EUR 1,497.2 millions; the total cost of materials for the period under review (see item 14 "other operating income ). amounts to EUR 1,569.1 millions. 16. Other Operating Income Composition: Income from the disposal of 1999/2000 2000/2001 EUR millions EUR millions 1999/2000 2000/2001 EUR millions EUR millions 20. Investment Income and appreciation of fixed assets Income from associated companies 14.65 15.95 with the exception of financial assets 14.13 9.12 Income from other affiliated companies 0.33 0.42 Income from the reversal of reserves 7.30 14.27 Other operating income 87.41 96.53 Income from other investments 30.11 3.86 Expenses from financial assets 4.03 0.37 108.84 119.92 41.06 19.86 102 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 103

21. Interest Result 1999/2000 2000/2001 EUR millions EUR millions Other interest and similar income 21.39 30.76 Interest and similar expense 61.60 83.16 Income from securities 7.02 24.92 (of which from affiliated companies) (0.00) (0.00) Income from loans 0.75 0.61 (of which from loans to affiliated companies) (0.05) (0.04) Interest result 32.44 26.87 1999/2000 2000/2001 EUR millions EUR millions Income before income tax 163.85 247.13 of which 34 % calculated tax expense 55.71 84.02 foreign tax rates 0.52 0.58 investment promotion 5.78 6.44 tax-free investment income 15.33 6.78 other non-temporary differences 1.74 5.83 Income tax expense according to income statement 33.38 65.55 Consolidated tax rate in % 20.4 % 26.5 % The item interest and similar expenses contains the interest portion of the allocation to social capital provisions of EUR 20.31 millions (prior year: EUR 19.82 millions). The item income from securities comprises a devaluation due to distributions (amounting to EUR 4.23 millions) to the lower value on the balance sheet date. The profits to be distributed to other partners amount to EUR 2.46 millions (prior year: EUR 1.55 millions). 24. Minority Interest 22. Other Financial Result 1999/2000 2000/2001 EUR millions EUR millions Result from the sale of financial assets 3.13 0.26 Income from the sale of financial assets 0.52 0.04 Result from the sale of financial assets held as current assets 0.07 0.00 Depreciation on other financial assets and securities held as current assets 1.47 3.96 2.25 4.18 23. Taxes on Income and Earnings Taxes on income and earnings, aside from the taxes on income and earnings paid or owed by the individual companies, also reports deferred tax accruals. 1999/2000 2000/2001 EUR millions EUR millions Income tax expense 15.22 47.32 Deferred tax accruals 18.16 18.23 33.38 65.55 The income tax expenses include non-recurrent taxes of EUR 0.82 millions (prior year: EUR 1.36 millions). The difference between the calculated income tax (profit before taxes multiplied by the national tax rate of 34 %) and the income tax expense for 2000/2001 according to the income statement of EUR 65.54 millions is due to the following reasons: 104 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 105

H. NOTES TO THE CASH FLOW STATEMENT I. OTHER REMARKS The cash flow statement segments the inflow and outflow of funds during the year under review according to IAS 7 in "current business activities", "investment activities" and "financial activities". The cash flow statement is derived by the indirect method from the consolidated financial statement of VOEST-ALPINE STAHL AG. The segmentation into the Flat Products and Long Products Divisions corresponds to the internal organizational and management structures of the Group and therefore forms the basis for primary segment reporting. 29. Segmented Reporting 25. Cash Flow from Operations 26. Cash Flow from Investment Activities Fund inflows and outflows from interest payments made or received and from income taxes are included in the cash flow from operations, with interest expenses and income in general payable, with the exception of the interest component for social capital. A dividend of EUR 15.17 millions (prior year: EUR 12.27 millions) was received from associated companies. The cash flow of monies from the acquisition of subsidiaries amounts to EUR 63.76 millions (prior year: EUR 13.33 millions), the cash flow from the sale of subsidiaries amounts to EUR 0.00 millions (prior year: EUR 7.28 millions). In addition, monies or currency equivalents taken over from these companies amount to EUR 9.49 millions (prior year: EUR 0.25 millions). Flat Products Long Products Other / Division Division Consolidation Group 1999/00 2000/01 1999/00 2000/01 1999/00 2000/01 1999/00 2000/01 EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. Sales revenue (total) 2,480.01 2,922.03 899.36 1,061.05 5.96 19.95 3,385.33 4,003.03 of which internal revenues 391.19 495.35 229.31 281.72 53.16 59.87 673.66 836.94 Sales reven. by segment 2,088.82 2,426.68 670.05 779.33 47.20 39.92 2,711.67 3,166.09 Operating result (EBIT) 139.26 234.31 26.61 40.80 12.89 16.78 152.98 258.33 Income from associated companies 11.64 11.38 0.57 0.10 3.59 4.47 14.66 15.95 Assets by segment 2,118.76 2,390.46 744.97 846.43 259.54 164.29 3,123.27 3,401.18 Liabilities by segment 1,305.11 1,511.55 434.16 514.68 68.07 193.86 1,671.20 1,832.37 Investments in associated companies 29.92 28.02 0.30 0.18 12.13 9.92 42.35 38.12 Investments 2) 187.62 223.41 100.49 68.90 0.02 1.87 288.13 290.44 Depreciation 161.99 166.81 37.42 53.41 1.90 0.20 201.31 220.02 Cash flow from operations 225.72 327.85 41.96 67.19 8.43 6.32 259.25 388.72 Employees 11,065 11,463 4,123 4,129 40 66 15,228 15,658 27. Cash Flow from Financing Activities Dividend payments are reported in the cash flow from financing activities. During the 2000/2001 business year, dividend payments from VOEST-ALPINE STAHL AG amounted to EUR 38.01 millions (prior year: EUR 39.60 millions). Inter-segment settlement prices are based on comparable conditions in the market. Secondary reporting segments are structured according to the location of the Group companies (IAS 14.69). 28. Fund of Liquid Assets The fund of liquid assets is comprised as follows: 31/3/2000 31/3/2001 EUR millions EUR millions Cash in hand, checks and balance at credit institutions 136.39 94.90 Securities held as current assets (balance sheet) 201.01 341.47 of which paper not considered currency equivalent by the IAS 14.81 133.91 Fund of liquid assets 322.59 302.46 There are no restrictions on the use of the currency and currency equivalents of the Group reported here (IAS 7.48). European Other Austria Union Countries Consolidation Group 1999/00 2000/01 1999/00 2000/01 1999/00 2000/01 1999/00 2000/01 1999/00 2000/01 EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. External sales reven. 1) 2,435.73 2,785.15 258.69 302.75 17.25 78.20 0.00* 0.01 2,711.67 3,166.09 Assets by segment 4,218.75 4,726.61 360.03 411.18 50.12 61.54 1,505.63 1,798.15 3,123.27 3,401.18 Liabilities by segment 1,943.66 2,292.79 264.35 294.85 26.37 36.76 563.18 792.03 1,671.20 1,832.37 Investments 2) 250.51 245.82 13.95 16.76 0.49 2.70 23.18 25.16 288.13 290.44 1) consolidated 2) intangible and tangible assets * below the round-off limit 106 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 107

30. Details on Total personnel expenses are comprised as follows: Earnings per share are determined according to IAS 33, by dividing the net income 31. Earnings per Share Executive Bodies and for the year after minority interest by the number of outstanding shares. Employees 1999/2000 2000/2001 EUR millions EUR millions Due to the purchase of own shares that took place during the business year (see item 8, Wages 327.80 363.06 Salaries 220.94 239.52 Expenses for severance payments 12.83 15.12 "Group Equity ) the number of shares for the calculation of the "dilutive earnings per share is 32,007,525 differing from the total number of shares. Expenses for pensions 6.20 11.51 Social security contributions dependent on salary and mandatory contributions 156.96 157.71 Other social security expenses 6.11 10.53 730.84 797.45 The expenses for severance and pension payments include payments and adjust- 1999/2000 2000/2001 EUR millions EUR millions Consolidated net income 128.92 179.11 Average number of outstanding shares 33.00 32.01 "Dilutive earnings per share 3.91 5.60 Total number of shares 33.00 33.00 ments of the provisions for severance and pension payments. "Basic earnings per share 3.91 5.43 The number of employees during the 2000/2001 business year developed as follows: This annual report and financial statement exempts ROTEC GmbH, Monheim, as pro- 32. Exemption Effect 31/3/2000 31/3/2001 vided for in section 264 b of the HGB (Austrian Commercial Code). Balance Balance sheet date Average 1 ) sheet date Average 1 ) Workers 10,461 10,697 10,824 10,730 Salaried employees 4,767 4,868 4,834 4,807 Apprentices 460 489 441 495 15,688 16,054 16,099 16,032 1 ) monthly average The company and VA TECHNOLOGIE AG hold a reciprocal investment in each other. The interest of VOEST-ALPINE STAHL AG in VA TECHNOLOGIE AG on the balance sheet date is 19.05 %, while VA TECHNOLOGIE AG holds 10.93 % of VOEST-ALPINE STAHL AG. 33. Close Relationships with Other Legal Entities The following emoluments falling due in the short-term to Members of the Managing Board of VOEST-ALPINE STAHL AG have been reported as expenses for the 2000/2001 business year (IAS 19.23): Relationships exist between consolidated and pro rata consolidated companies and Group companies that are not consolidated or consolidated at equity in the following scope: The companies included in the consolidation during the 2000/2001 business year 1999/2000 2000/2001 EUR millions EUR millions Emoluments 2.08 2.30 Expenses for severance payments 1) 0.14 0.03 2.22 1) Allocation to social capital provisions 2.33 achieved sales revenues amounting to approximately EUR 128.55 millions (prior year: EUR 134.44 millions) from trade accounts receivables from non-consolidated Group companies. At the same time, trade accounts payable to non-consolidated Group companies of EUR 165.28 millions (prior year: EUR 124.27 millions) and other operating expenses of approximately EUR 57.07 millions (prior year: EUR 35.61 millions) were included in the consolidated income statement. On the balance sheet date Provisions for other payments due in the long-term (IAS 19.126) to Members of the Managing Board of VOEST-ALPINE STAHL AG exist on 31/3/2001 in the amount of EUR 0.02 millions (prior year: EUR 0.09 millions) for anniversary bonus obligations. these relationships with non-consolidated Group companies resulted in receivables of approximately EUR 42.83 millions (prior year: EUR 40.70 millions) and liabilities of approximately EUR 67.17 millions (prior year: EUR 42.15 millions). The fact that these Group companies are not consolidated has no significant impact on the net worth, Emoluments amounting to EUR 0.09 millions (prior year: EUR 0.09 millions) were paid to Members of the Supervisory Board during the 2000/2001 business year. financial and earnings situation of the company. The non-consolidated companies employ temporary employees to cover in particular personnel shortages that occur for the short term (31/3/2001: 676; prior year: 555). 108 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 109

34. Significant Events after the Balance Sheet Date This consolidated annual report was completed and signed by the Managing Board of VOEST-ALPINE STAHL AG on 23/5/2001. 35. Profit Distribution The individual financial statement for 31/3/2001 for VOEST-ALPINE STAHL AG, presented according to the regulations of the Austrian Commercial Code, HGB, is the basis for the distribution of profits. This financial statement, audited by Grant Thornton Jonasch & Platzer OHG, shows a balance sheet profit of EUR 62.81 millions. The Managing Board will propose to the Annual General Shareholders Meeting a distribution of EUR 1.90 per share. Linz, 23/5/2001 The Managing Board Strahammer m.p. Struzl m.p. Eder m.p. Haidenthaler m.p. The consolidated annual financial statements of VOEST-ALPINE STAHL AG, including all relevant documents, have been submitted at the company register of the Commercial Court in Linz under the company register no. FN 66209 t. 110 VOEST-ALPINE STAHL AG 2000/2001 GRANDE EUROPA, FINCANTIERI

AUDITOR S REPORT and CERTIFICATION of the Auditor according to section 245a ivm section 274 paragraph 5 HGB We have audited the consolidated presentation of accounts (consolidated financial statement and consolidated management report) of VOEST-ALPINE STAHL AG, Linz, for 31/3/2001, comprised of the consolidated balance sheet, consolidated income statement and consolidated cash flow statement, the notes to the financial statements and the consolidated status report for the 2000/2001 business year. The consolidated presentation of accounts in line with section 245a HGB comprises documents mandated by the standards of the International Accounting Standards Committee (IASC) as well as an orderly presentation according to section 267 HGB (Art. 36 of the 7th EU Guideline) of the additional disclosure required for the consolidated status report. The consolidated presentation of accounts is a responsibility of the Managing Board of the Company. It is our task, to ascertain based on the audit we have performed, that the consolidated presentation of accounts is in line with the International Accounting Standards (IAS). The audit of individual subsidiaries was in part performed by other auditors. Our audit result in the cases of these subsidiaries is entirely based on their certification. solidated accounts. We believe that our audit is a sufficiently secure basis for our audit certification. Based on the findings during the audit we have reached the following conclusion: We are convinced that the annual presentation of accounts in all essential matters gives a true and fair view of the net worth and financial status of the Group as of 31/3/2001 as well as of the income position and the cash flows during the recent business year 2000/2001 and fulfills IAS requirements. The prerequisites for the release of the company from presenting a consolidated annual report according to Austrian Law have been met (section 245a HGB). The Group Status Report conforms to the consolidated financial statements. Vienna, 23/5/2001 We have conducted our audit taking into account the principles of proper annual account auditing also taking into account the International Standards of Auditing (ISA). Accordingly, the audit is to be planned and executed in a way that ensures that it can be judged with sufficient certainty that the consolidated presentation of accounts is free of essential false statements. As part of the audit, proof for valuations and statements in the consolidated presentation of accounts were judged based on spot checks. The audit comprises a judgement about the accounting principles applied (reporting and valuation methods) and of essential assessments of the Managing Board as well as the appreciation of the overall presentation of the con- Grant Thornton - Jonasch & Platzer Wirtschaftsprüfungs- und Steuerberatungs-OHG (Auditors and Tax Consultants General Partnership) Member Firm of Grant Thornton International Univ.-Doz. Dr. Walter Platzer Dr. Franz Schiessel Certified Auditors and Tax Consultants 112 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 113

GROUP COMPANIES VOEST-ALPINE STAHL AG FLAT PRODUCTS DIVISION Nominal Capital Equity 2 ) as Annual Result 2 ) as Domicile of Type of Interest Parent in thousands of of 31/3/2001 in of 31/3/2001 in Company Symbol the company consolidation 1 ) held in % Company Currency Local Currency EUR thsds. EUR thsds. VOEST-ALPINE STAHL LINZ GmbH VASL Linz FC 99.00% VASTAHLAG ATS 1,850,000 689,667.20 119,855.20 1.00% DBG VOEST-ALPINE KREMS GmbH VAKR Krems FC 100.00% VASL ATS 150,000 115,013.30 9,762.40 VOEST-ALPINE KREMS FINALTECHNIK GmbH VAKF Krems FC 99.00% VAKR ATS 50,000 10,044.50 947.60 1.00% DBG SADEF N.V. SADEF Hooglede-Gits / Belgium FC 99.00% VAKR BEF 650,000 39,678.00 7,940.90 1.00% DBG SADEF FRANCE S.A.R.L. SADEFFR Nogent sur Marne / NC 90.00% SADEF FFR 50 France 10.00% VAKR VOEST-ALPINE PROFILFORM S.R.O. VAKCZ Vyskov / Czech Republic FC 100.00% VAKR CZK 100 1,976.41 372.24 Global Rollforming Corporation GRC Shelbyville / USA FC 100.00% VAKR USD 10,851 11,101.56 - Roll Forming Corporation RFC Shelbyville / USA FC 100.00% GRC USD 580 7,054.30 (412.89) VOEST-ALPINE KREMS U.K. plc VAKUK London / Great Britain FC 100.00% VAKR GBP 25,050 33,559.93 201.87 Metsec plc 3) METSEC Oldbury / Great Britain FC 100.00% VAKUK GBP 1,583 30,118.64 3,088.27 Metsec (U.K.) Limited METUK Oldbury / Great Britain FC 100.00% METSEC GBP 1,500 Metsec Framing Limited MEFRA Oldbury / Great Britain FC 100.00% METSEC GBP 1,000 Metsec Profil Manipulation Limited METPRO Oldbury / Great Britain FC 100.00% METSEC GBP 30 Energy Tubes Limited ENTUB Oldbury / Great Britain FC 100.00% METSEC GBP 375 Metsec Building Products Limited METBP Oldbury / Great Britain NC 100.00% METSEC GBP 0 Metsec Engineering Products Limited METEP Oldbury / Great Britain NC 100.00% METSEC GBP 0 Metbuild Limited METBU Oldbury / Great Britain NC 100.00% METSEC GBP 0 Metal Sections Limited METAL Oldbury / Great Britain NC 100.00% METSEC GBP 0 HEP Sections Limited HEP Oldbury / Great Britain NC 100.00% METSEC GBP 0 Metsys Limited METSY Oldbury / Great Britain NC 100.00% METSEC GBP 0 Metsys Systems Limited MESYS Oldbury / Great Britain FC 100.00% METSEC GBP 0 Primary Structural Supplies Limited PSS Oldbury / Great Britain NC 100.00% METSEC GBP 0 Promet Limited PROME Oldbury / Great Britain FC 100.00% METSEC GBP 432 Westvale Developments Limited WESTV Oldbury / Great Britain EC 50.00% METSEC GBP 0 Mostatal Krakow Metsec MOSTA Krakow / Poland NC METSEC PLN Metsec Incorporation METIN Santa Rosa / California NC 100.00% METSEC USD 250 Quantum Incorporation QUANT Santa Rosa / California NC 50.00% METSEC USD 857 Metsec Beteiligungsgesellschaft mbh. MEBET Cologne / Germany FC 100.00% METSEC DEM 500 92.50 471.00 PRÄZISIONS-PROFIL GmbH PRÄPR Hürth / Germany FC 100.00% VAKR DEM 1,000 1,731.80 (80.40) Gemeinnützige Donau-Ennstaler Siedlungs-Aktiengesellschaft GEDESAG Krems NC 33.33% VAKR ATS 7,500 VOEST-ALPINE GIESSEREI LINZ GmbH VAGL Linz FC 100.00% VASL ATS 15,000 12,461.10 4,852.10 VOEST-ALPINE GIESSEREI TRAISEN GmbH VAGT Traisen FC 99.67% VASL ATS 15,000 5,753.20 218.30 0.33% DBG VOEST-ALPINE STAHLHANDEL GmbH VASTH Linz FC 100.00% VASL ATS 70,000 22,865.40 (60.40) KÖLLENSPERGER STAHLHANDEL GmbH KOELL Thaur bei Innsbruck FC 60.00% VASTH ATS 28,000 5,374.30 1,157.70 NEPTUN EISENHANDELS GmbH NEPTUN Vienna EC 100.00% VASTH ATS 500 133.60 27.80 VOEST-ALPINE GmbH München VASTMUE Munich / Germany NC 100.00% VASTH DEM 2,000 VOEST-ALPINE STAHLHANDEL Kft. VASTUN Budapest / Hungary NC 100.00% VASTH HUF 1,500 VOEST-ALPINE STAHLHANDEL spol. s r.o. VASTCZ Pardubice / Czech Republic FC 100.00% VASTH CZK 180,000 4,233.67 629.64 VOEST-ALPINE STAHLHANDEL d.o.o. VASTSLO Maribor / Slovenia NC 100.00% VASTSK SIT 5,000 VOEST-ALPINE STAHLHANDEL, zastupenie v SR VASTSK Nitra / Slovakia NC 100.00% VASTH SKK 216 VAS - TAD Edelstahl Handels GmbH VASTAD Linz EC 50.00% VASTH ATS 500 713.70 262.70 Vereinigte Biege-Gesellschaft m.b.h. BIEGE Klagenfurt NC 67.00% VASTH ATS 1,000 BWS BEWEHRUNGSSTAHL GmbH BWS Vienna NC 26.00% VASTH EUR 150 VETING-VOEST ALPINE STAHLHANDEL GRUPA Za proizvodnju i trgovinu metalima d.o.o. VETING Varazdin / Croatia NC 60.00% VASTH HRK 3,000 114 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 115

Nominal Capital Equity 2 ) as Annual Result 2 ) as Domicile of Type of Interest Parent in thousands of of 31/3/2001 in of 31/3/2001 in Company Symbol the company consolidation 1 ) held in % Company Currency Local Currency EUR thsds. EUR thsds. VOEST-ALPINE STAHL SERVICE CENTER GmbH VASSC Linz FC 99.80% VASL ATS 50,000 16,315.40 2,222.80 0.20% DBG METALSERVICE S.P.A. METALSER Cittadella / Italy EC 40.00% VASSC ITL 6,000,000 21,861.60 5,017.70 Herzog Coilex GmbH COILEX Stuttgart / Germany EC 25.10% VASSC DEM 8,000 9,152.00 2,250.00 VOEST-ALPINE ROHSTOFFHANDEL GmbH VAROH Vienna FC 69.69% VASL ATS 30,819 7,856.70 1,482.30 12.90% VADO 0.93% DBG SCHROTT - WALTNER Eisen, Metalle, Maschinen Gesellschaft mit beschränkter Haftung SCHW Graz FC 75.00% VAROH ATS 4,000 1,889.00 542.80 Eisenhandel Gebeshuber GmbH GEB Wolfern FC 99.99% VAROH ATS 10,000 2,013.30 27.10 0.01% DBG SROT GEBESHUBER spol. s.r.o. GEBSR Brno / Czech Republic NC 80.00% GEB CZK 100 VOEST-ALPINE ROHSTOFFBESCHAFFUNGS-GmbH VAROB Linz FC 75.10% VASL ATS 500 72.80 21.30 24.90% VADO Importkohle Gesellschaft m.b.h. IMPORTK Vienna NC 66.00% VAROB ATS 500 CATERING UND BETRIEBSSERVICE GmbH CBS Linz FC 100.00% VASL ATS 500 453.60 68.20 AUSTROBEL GmbH AUSTROB Shlobin / Belorussia NC 50.00% CBS USD 166 - - DWA DUNAFERR - VOEST-ALPINE Hideghengermü Kft. DUNAFERR Dunaujváros / Hungary NC 44.18% VASL HUF 4,290,960 GEORG FISCHER FITTINGS GmbH FIT Traisen EC 49.00% VASL ATS 50,000 13,801.80 5,422.10 GWL Gebäude- Wohnungs- und Liegenschafts- Verwaltungsgesellschaft m.b.h. GWL Linz NC 76.00% VASL ATS 1,000 Industrie-Logistik-Linz GmbH ILL Linz EC 25.10% VASL ATS 7,000 8,680.10 2,856.20 Linzer Schlackenaufbereitungs- und vertriebsgesellschaft m.b.h. LISAG Linz NC 33.33% VASL ATS 600 VOEST-ALPINE PERSONALSERVICE GmbH VAPS Linz NC 100.00% VASL ATS 500 Hüttensand Export und Handel GmbH HUESAN Linz NC 30.00% VASL ATS 500 20.00% VADO Stahlservice Rauschenberger GmbH u. Co KG RAU Asperg / Germany FC 100.00% VASL DEM 3,000 1,779.80 1,397.40 Stahlservice Rauschenberger Verwaltungs-GmbH RAUVW Asperg / Germany NC 100.00% VASL DEM 50 VOEST-ALPINE PRÄZISROHRTECHNIK Gesellschaft m.b.h. VAPRT Krieglach FC 49.61% VASL ATS 63,500 18,932.40 3,562.00 25.20% RBG Werksgärtnerei Gesellschaft m.b.h. GAERT Linz NC 100.00% VASL ATS 500 Wuppermann Austria Gesellschaft m.b.h. WUPPERM Judenburg EC 30.00% VASL ATS 30,000 21,069.90 12,094.50 VOEST-ALPINE EUROPLATINEN GmbH EUPL Linz FC 100.00% VASL EUR 35 40.60 5.60 VOEST-ALPINE EUROPLATINEN GmbH & Co VAPL Linz FC 100.00% VASL EUR 2,000 26,421.90 164.40 TURINAUTO S.p.A. Turin / Italy NC 33.33% VASL EUR 1,033 EUROWELD s.r.l. Turin / Italy NC 51.00% EUPL EUR 1,500 VOEST-ALPINE INDUSTRIAL SERVICES GmbH VAIS Linz NC 50.00% VASL ATS 1,000 87.10 60.50 VOEST-ALPINE INDUSTRIAL SERVICES GmbH & Co Linz EC 50.00% VASL EUR 1,000 804.50 (2,764.50) G.C. De Jong Construction B.V. GCC Zierikzee / Netherlands EC 30.00% VASL NLG 40 461.50 201.80 VOEST-ALPINE MECHATRONICS GmbH VAMECH Linz FC 58.00% VASL ATS 500 1,432.20 593.00 5.00% VASI Kontext Druckerei GmbH KONTEX Linz NC 64.00% VASL ATS 500 e-key Biometric Systems GmbH EKEY Linz NC 100.00% VASL EUR 35 COMPACT MILL-Planungsgesellschaft mbh COMPM Linz NC 100.00% VASL EUR 35 ROTEC ZUG AG 3) ROTZU Zug / Switzerland FC 100.00% VASL CHF 250 6,577.90 (1,669.20) ROTEC GMBH ROTMO Monheim / Germany FC 100.00% ROTZU DEM 2,000 116 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 117

Nominal Capital Equity 2 ) as Annual Result 2 ) as Domicile of Type of Interest Parent in thousands of of 31/3/2001 in of 31/3/2001 in Company Symbol the company consolidation 1 ) held in % Company Currency Local Currency EUR thsds. EUR thsds. ROTEC Iberica S.A. ROTIB Llodio / Spain FC 82.00% ROTMO ESP 50,000 Sairex Industrial Trading GmbH SIT Monheim / Germany FC 100.00% ROTMO DEM 300 SCI Jean Monnet SCIJM Goussainville / France FC 99.95% ROTMO FFR 1,002 ROTEC France S.A.R.L. ROTFR Ozoir la Ferriére / FC 99.20% ROTMO FFR 2,500 France Aceralia ROTEC S.L. ROTAC Bera de Bidasoa / NC 19.68% ROTIB EUR 3 Spain 25.00% ROTMO ROTEC Skandinavien AB ROTSK Halmstad / Sweden FC 70.00% ROTZU SEK 7,000 30.00% ROTMO Production Tube Cutting S.A. PTCF Ozoir la Ferriére / FC 99.99% ROTMO FFR 14,000 France Automatlego ROTEC Skandinavien Halmstad / Sweden NC 45.11% ROTSK SEK 700 PTC Iberica S.A. PTCI Llodio / Spain FC 52.67% ROTIB ESP 70,500 35.00% ROTMO ROTEC Beteiligungs-GmbH RBG Monheim / Germany PC 50.00% ROTMO DEM 4,600 PTC Barcelona S.A. PTCB Barcelona / Spain FC 57.40% ROTIB ESP 15,000 10.00% ROTMO ROTEC Benelux B.V.B.A. ROTBX Sint-Truiden / Belgium FC 90.00% ROTMO BEF 1,000 Sairex GmbH SAIRE Monheim / Germany FC 100.00% ROTMO DEM 5,000 SCI L Ondaine SCILO Ozoir la Ferriére / NC 100.00% PTCF wound up France VOEST-ALPINE GROBBLECH GmbH VAGB Linz NC 100.00% VASL EUR 35 VOEST-ALPINE SCHMIEDE GmbH VASCH Linz NC 100.00% VASL EUR 35 Logistik Service GmbH VALOG Linz NC 100.00% VASL EUR 35 118 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 119

LONG PRODUCTS DIVISION Nominal Capital Equity 2 ) as Annual Result 2 ) as Domicile of Type of Interest Parent in thousands of of 31/3/2001 in of 31/3/2001 in Company Symbol the company consolidation 1 ) held in % Company Currency Local Currency EUR thsds. EUR thsds. VOEST-ALPINE SCHIENEN GmbH & CO KG VASI Leoben FC 99.99% VASTAHLAG ATS 445,545 258,992.60 10,869.00 0.01% VASILI VOEST-ALPINE STAHL DONAWITZ GmbH VADO Leoben-Donawitz FC 99.90% VASI ATS 200,000 35,793.20 (4,131.60) 0.10% DBG VOEST-ALPINE STAHLROHR KINDBERG GmbH & CO KG VAKI Kindberg PC 49.99% VASI ATS 247,525 37,483.45 10,631.40 0.01% VAKILI VOEST-ALPINE STAHLROHR KINDBERG GmbH VAKILI Linz PC 50.00% VASI ATS 500 146.80 1.60 VOEST-ALPINE TUBULAR CORP. VATC Houston / USA NC 100.00% VAKILI USD 5 VOEST-ALPINE STEEL MIDDLE EAST FZE VAME Dubai / UAE NC 100.00% VAKILI AED 1,000 VOEST-ALPINE SOUTH AMERICA, C.A. VASA Caracas / Venezuela NC 99.90% VAKILI VEB 29,950 0.10% VAKI VOEST-ALPINE VERMÖGENSVERWALTUNGS-GmbH VAVER Leoben FC 99.00% VASI ATS 500 53,102.10 2,979.40 1.00% DBG VOEST-ALPINE PERSONALSERVICE DONAWITZ GmbH VAPSDO Leoben NC 100.00% VASI ATS 500 VAE HOLDING GmbH VAEH Vienna PC 50.00% VASI EUR 35 11.50 (5.30) VAE Holding Deutschland GmbH VAEHD Butzbach / Germany PC 100.00% VAE DEM 30,000 VAE Geschäftsführung (Deutschland) GmbH VAEGF Butzbach / Germany PC 100.00% VAE DEM 50 VAE Eisenbahnsysteme Beteiligungs GmbH VAEE Vienna PC 100.00% VAEH EUR 40 79,866.60 2,980.35 VAE Aktiengesellschaft 3) VAE Vienna PC 90.60% VAEE EUR 10,178 56,407.20 8,256.80 VAE Eisenbahnsysteme GmbH VAEG Zeltweg PC 100.00% VAE EUR 1,500 BWG Butzbacher Weichenbau GmbH & CO KG BWG Butzbach / Germany PC 100.00% VAEHD DEM 18,000 WBG Weichenwerk Brandenburg GmbH WBG Brandenburg / Germany PC 100.00% BWG DEM 20,000 VAE Apcarom S.A. VAEAPC Buzau / Romania PC 78.96% VAE ROL 73,796,170 VAE Africa (Pty) Ltd. VAEAFR Isando / South Africa PC 100.00% VAE ZAR 13,950 VAE Baileyfield Ltd. VAEBAIL Edinburgh / Great Britain PC 100.00% VAE GBP 1,800 VAE Italia S.r.l. VAEITAL Rome / Italy PC 95.00% VAE ITL 19,000 5.00% VAEBAIL VAE Legetecha UAB VAELEGE Vilnius / Lithuania PC 66.00% VAE LTL 7,569 VAE Nortrak North America Incorporation VAENORT Cheyenne / USA PC 83.67% VAE USD 15,768 VAE Nortrak Cheyenne Inc. VAENCH Cheyenne / USA PC 100.00% VAENORT USD 7,000 VAE Nortrak Inc. VAENINC Birmingham / USA PC 100.00% VAENORT USD 6,159 VAE NORTRAK LTD. VAENLTD Richmond / Canada PC 100.00% VAENORT CAD 4,530 VAE Riga SIA VAERIGA Riga / Latvia PC 93.42% VAE LVL 949 VAE Railway Systems Pty.Ltd. VAERAIL Mackay / Australia PC 100.00% VAE AUD 3,355 VAE Sofia OOD VAESOFIA Sofia / Bulgaria PC 51.00% VAE BGN 3,000,000 VAMAV Vasúti Berendezések Kft. VAMAV Gyöngyös / Hungary PC 50.00% VAE HUF 960,000 JEZ Sistemas Ferroviarios S.L. JEZ Llodio / Spain PC 50.00% VAE ESP 744,000 Weichenwerk Wörth GmbH WWG St.Georgen/Steinfeld PC 100.00% VAEE EUR 5,815 VOEST-ALPINE AUSTRIA DRAHT GmbH VAAD Bruck an der Mur FC 99.95% VASI ATS 100,000 43,682.00 2,466.40 0.05% DBG SCHMID SCHRAUBEN HAINFELD GmbH SSCH Hainfeld FC 99.80% VAAD ATS 500 3,179.00 975.90 0.20% NEPTUN BSTG, Drahtwaren Produktions- und Handels-GmbH BSTG Linz FC 99.00% VAAD ATS 21,000 1,833.20 (33.90) 1.00% DBG Richard Zimmermann Eisengroßhandel Gesellschaft m.b.h. ZIMME St. Pölten EC 95.00% VAAD ATS 500 183.30 99.80 5.00% NEPTUN VAK VOEST-ALPINE Klöckner Bahntechnik GmbH VABT Berlin / Germany FC 51.00% VAVER EUR 125 1,083.10 833.10 Liegenschaftsverwaltungs GmbH LVG Leoben NC 98.00% VASI ATS 500 2.00% DBG Gemeinnützige Wohnungs- und Siedlungsgesellschaft der VA - AUSTRIA DRAHT GmbH GWSVAAD Bruck an der Mur NC 100.00% VAAD ATS 500 120 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 121

OTHER COMPANIES Nominal Capital Equity 2 ) as Annual Result 2 ) as Domicile of Type of Interest Parent in thousands of of 31/3/2001 in of 31/3/2001 in Company Symbol the company consolidation 1 ) held in % Company Currency Local Currency EUR thsds. EUR thsds. VA Technologie Aktiengesellschaft VATECH Linz NC 19.05% VASTAHLAG EUR 109,050 VOEST-ALPINE Intertrading Aktiengesellschaft VAINT Linz EC 38.50% VASTAHLAG ATS 200,000 46,512.10 18,499.20 VOEST-ALPINE EUROSTAHL GmbH VAEURO Linz FC 99.00% VASTAHLAG EUR 40 6,416.20 1,208.80 1.00% DBG VOEST-ALPINE STAHL NV/SA VABELG Brussels / Belgium NC 100.00% VAEURO EUR 180 VOEST-ALPINE STAHL AB VASVEN Stockholm / Sweden NC 100.00% VAEURO SEK 180 VOEST-ALPINE STAHL ApS. VADK Copenhagen / Denmark NC 100.00% VAEURO DKK 200 VOEST-ALPINE STAHL S.A. VAFRANC Strasbourg / France NC 99.83% VAEURO FFR 1,420 VOEST-ALPINE STAHL Sp.z o.o. VAKAT Katowice / Poland NC 100.00% VAEURO PLN 4 VOEST-ALPINE STAHL B.V. VANL s Gravenhage / Netherlands NC 100.00% VAEURO NLG 625 VOEST-ALPINE STAHL d.o.o. VASERB Belgrade / Yugoslavia NC 100.00% VAEURO DIN 50 VOEST-ALPINE STAHL GmbH VAMUE Munich / Germany NC 94.90% VAEURO DEM 1,000 5.10% DBG VOEST-ALPINE STAHL LTD. VAUK London / Great Britain NC 100.00% VAEURO GBP 7 VOEST-ALPINE STAHL S.p.A. VAMAI Milano / Italy NC 99.00% VAEURO ITL 400,000 1.00% DBG VOEST-ALPINE STAHL d.o.o. VASLO Ljubljana / Slovenia NC 100.00% VAEURO SIT 1,500 VOEST-ALPINE STAHL A/S VANOR Oslo / Norway NC 100.00% VAEURO NOK 200 VOEST-ALPINE STAHL GmbH VAZUE Zurich / Switzerland NC 100.00% VAEURO CHF 400 VOEST-ALPINE STAHL d.o.o. VAKRO Zagreb / Croatia NC 100.00% VAEURO DEM 5 VOEST-ALPINE STAHL, s.r.o. VAPRAG Prague / Czech Republic NC 100.00% VAEURO CZK 150 VOEST-ALPINE STEEL Corporation VASTEEL New York / USA NC 100.00% VAEURO USD 10 VOEST-ALPINE STAHL Kft. VAUNG Budapest / Hungary NC 99.00% VAEURO HUF 10,000 1.00% DBG VOEST-ALPINE Dienstleistungs- und Finanzierungs GmbH VADF Munich / Germany FC 100.00% VASTAHLAG DEM 50 25.90 (1.20) Donauländische Baugesellschaft m.b.h. DBG Linz FC 100.00% VASTAHLAG ATS 1,000 4,823.50 117.70 Danube Equity Invest AG DEI Linz FC 71.37% VASTAHLAG EUR 255 25,501.00 1.00 Danube Equity Invest Management GmbH DEM Linz FC 100.00% VASTAHLAG EUR 70 73.30 3.30 Danube Beteiligungs Invest MF-AG DBI Linz FC 100.00% DEI EUR 7,300 7,222.20 (77.80) VOEST-ALPINE SCHIENEN GmbH VASILI Linz FC 100.00% VASTAHLAG ATS 500 21.90 (11.20) APK-Pensionskasse Aktiengesellschaft APKP Vienna NC 19.11% VASTAHLAG EUR 12,800 IVM-Industrieversicherungsmakler GmbH IVM Linz NC 33.33% VASTAHLAG EUR 225 255.00 (16.00) 1) FC Fully consolidated companies PC Pro rata consolidated companies EC Companies consolidated at equity NC Non-consolidated companies 2) Details only of fully consolidated, pro rata or at equity consolidated companies 3) Results according to the consolidated financial statement 122 VOEST-ALPINE STAHL AG 2000/2001 VOEST-ALPINE STAHL AG 2000/2001 123

ADDRESSES VOEST-ALPINE STAHL AG VOEST-ALPINE-Straße 1 A-4020 Linz Tel.: +43(0)732/6585/0 Fax: +43(0)732/6980/EXT Homepage: www.voest-alpine-stahlag.com e-mail: PublicAffairs@voest.co.at VOEST-ALPINE STAHL LINZ GmbH VOEST-ALPINE-Straße 3 A-4020 Linz Tel.: +43 (0)732-6585-0 Fax: +43 (0)732-6980/EXT Homepage: www.voest.at e-mail: PublicAffairs@voest.co.at VOEST-ALPINE KREMS GmbH Schmidhüttenstraße 5 A-3502 Krems Tel.: +43 (0)2732-885 Fax: +43 (0)2732-885/EXT Homepage: www.vak.at e-mail: marketing@vak.at PRÄZISIONS-PROFIL GMBH Franz-Tilgner-Straße 10 D-50354 Hürth Tel.: +49 (0)2233-6116-0 Fax: +49 (0)2233-6116-16 Homepage: www.praepro.de e-mail: info@praepro.de VOEST-ALPINE KREMS FINALTECHNIK GmbH Schmidhüttenstraße 5 A-3502 Krems Tel.: +43 (0)2732-885 Fax: +43 (0)2732-885/EXT Homepage: www.vakf.at e-mail: info@vakf.at VOEST-ALPINE KREMS PLC VOEST-ALPINE House Albion Place, Hammersmith GB-London W6 OQT Tel.: +44 (0)181-600 5800 Fax: +44 (0)181-741 3099 Homepage: www.voest.com/uk e-mail: allgemein@voest.com VOEST-ALPINE PROFILFORM S.R.O. Tovarni 4 CZ-68223 Vyskov Tel.: +42 (0)507-333700 or 333701 Fax: +42 (0)507-333702 Homepage: www.vap-vyskov.cz e-mail: marketing@vap-vyskov.cz METSEC plc. Broadwell Road GB-Oldbury West Midlands B69 4HE Tel.: +44 (0)121-552-1541 Fax: +44 (0)121-544-8439 Homepage: www.metsec.com e-mail: metsecplc@metsec.com SADEF N.V. Bruggesteenweg 60 B-8840 Hooglede-Gits Tel.: +32 (0)51-261211 Fax: +32 (0)51-261300 Homepage: www.sadef.be e-mail: sales@sadef.be Roll Forming Corporation P.O.Box 369, Industrial Park, Shelbyville, Kentucky 1070 Industrial lane 40066-0369 USA Tel.: +1 (0)302-633-4435 Fax: +1 (0)302-633-5824 VOEST-ALPINE GIESSEREI LINZ GmbH VOEST-ALPINE-Straße 3 A-4020 Linz Tel.: +43 (0)732-6585-77238 Fax: +43 (0)732-6980-2277 Homepage: www.voest-foundry.com VOEST-ALPINE GIESSEREI TRAISEN GmbH Maria-Zeller-Straße 75 A-3160 Traisen Tel.: +43 (0)2762-505-0 Fax: +43 (0)2762-505-253 Homepage: www.va-traisen.com e-mail: office@va-traisen.at VOEST-ALPINE STAHLHANDEL GmbH Lunzerstraße 105 A-4030 Linz Tel.: +43 (0)732-6924-0 Fax: +43 (0)732-6924-220 Homepage: www.voest-stahlhandel.at e-mail: office@voest-stahlhandel.at VOEST-ALPINE STAHL SERVICE CENTER GmbH Industriezeile 28 A-4020 Linz Tel.: +43 (0)732-74988-0 Fax: +43 (0)732-74988-200 Homepage: www.vassc.com e-mail: office@vassc.com VOEST-ALPINE EUROPLATINEN GmbH & Co Stahlstraße 47 A-4020 Linz Tel.: +43 (0)732-6585-8341, 3281 Fax: +43 (0)732-6980-8954, 3185 Homepage: www.va-europlatinen.com e-mail: linz@va-europlatinen.com EUROWELD S.R.L. 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HOW HIGH THE MOON, VITRA Designer: Shiro Kuramata We wish to thank Elektrolux-Zanussi, Fincantieri, HDW, Peugeot Austria and Mr. Roberto Pezzetta for their kind support and good cooperation. Our special thanks are due to the following persons and companies for providing the photos: ANSA, Rome APA Austria Presse Agentur, Vienna Bildarchiv Monheim, Monheim DPA Deutsche Presse-Agentur, Hamburg Experience Music Project, Seattle Foto Atelier 2, Wels Fotoforum, Linz Marine Marketing Service, Hamburg Txema Fernandezitra, Weil am Rhein VITRA, Birsfelden SHIRO KURAMATA Born 1934 in Tokyo. Studied architecture and furniture design at the Kuwasawa Design School. In 1965 he opened his bureau in Tokyo where he designed furniture for international companies such as Cappellini, Vitra and XO. In his hands was the architectural design of the boutiques of the fashion designer Issey Miyake in Tokyo, Paris and New York. He was a member of the Milan Designer Group Memphis, which reacted on the design of the seventies(influenced by industrial production)with provocative variants of style.

OWNER AND PUBLISHER VOEST-ALPINE STAHL AG VOEST-ALPINE STRASSE 1 A-4020 LINZ Further Information: GROUP COMMUNICATIONS PHONE +43 (0)732/6585-2090 FAX +43 (0)732/6980-8981 E-MAIL: PublicAffairs@voest.co.at INTERNET: www.voest-alpine-stahlag.com