Interim Report 2013

Voith in figures
2012-10-01 to
2013-03-31

2011-10-01 to
2012-03-31

Orders received

2,632

2,570

Sales

2,717

2,742

Operational result
before non-recurring result

103

139

Return on sales in %

3.8

5.1

Income before tax

56

97

Net income

60

63Cash flow from operating activities

-23

-23

Total cash flow

-180

-194

Investments

92

149

Equity 1)

1,396

1,384

Equity ratio in %

23.8

23.1

Balance sheet total 1)

5,861

5,992

Employees

43,00142,327in € millions

1)2)1) , 2)

Reference date March 31, 2013, compared to September 30, 2012.
Without apprentices.

Contents
ForewordGroup interim management report
I. Business and economic environment
II. Business development and earnings position of the Group
III. Business development and earnings position of the Group Divisions
IV. Net assets and financial position
V. Subsequent events
VI. Risks and opportunities
VII. Forecast report

8
9
14
22
25
25
26

Group interim financial statements
Consolidated statement of income
Consolidated statement of comprehensive income
Consolidated balance sheet
Statement of changes in equity
Consolidated cash flow statement
Notes to the interim consolidated financial statements
Notes on segment reporting
Segment information by business segment
Notes to the statement of income and the balance sheet
Other notes
Responsibility statement

30
31
32
34
36
37
40
40
42
45
47

Significant events48

Foreword

Ladies and gentlemen,
For the Voith Group the first six months of the fiscal year 2012/13 (ended March 31,2013) were stable, but overall weak. Orders received slightly exceeded the comparative previous-year figures, while Group sales were slightly below the comparative
previous-year level. The six-monthly financial statements are clouded by a seriesof exceptional negative effects, in particular at the Voith Turbo Group Division. As
at the end of the first six months, net income is at previous-year level.
The overall moderate business development is due in particular to two factors:
There is currently a lack of sustainable impetus from our markets and economic
conditions are not favorable. Some of Voith’s key markets are still reeling from theloss of confidence as a result of the economic and financial crisis. Our businesswith large plants and industrial systems as well as parts of the components business are highly dependent on the investment climate. The chain of crises in recent
years and ongoing uncertainties about the economy have left their mark on theinvestment climate in many of the industries we serve.
The special situation in the Voith Paper Group Division has taken its toll as expected.
This is due to the combined effect of two developments: on the one hand, thecontinuing recession which is affecting the entire paper machines industry, and,on the other, the structural changes on the paper market, which are impacting ourbusiness for new equipment in particular. In response to this development, Voith
already initiated the necessary measures in the previous year. However, it takes
time to manage all the consequences of these dramatic changes on this market.

4

Voith Interim Report 2013

The last six months of the fiscal year 2012/13 will remain challenging and characterized by continuing uncertainties. Voith does not expect the economic environment
to improve in the second half of the year. This also applies for our five target markets(energy, oil & gas, paper, raw materials, transport & automotive)—we do not expect
to see any decisive improvement here, either. For Voith’s fiscal year 2012/13, wecurrently expect another six months without any dynamic recovery.
In light of these developments and from today’s perspective, our forecast for the
fiscal year 2012/13 is modest. Depending on the development of the automotive
industry, Voith Industrial Services sees further growth potential. In contrast, we
expect Voith Hydro and Voith Turbo to flatline. Voith Paper is likely to suffer a painful
loss in new business on account of the collapse of the market for paper machines,
owing to both structural changes and the cyclical downturn in this sector. In spiteof the difficult situation, all four Group Divisions will continue to return a significant
profit in the fiscal year 2012/13, underscoring the operating capacity and soundcondition of our company.
For the Voith Group, we expect sales to be roughly on the previous-year level andorders received to be lower than the previous year. The operational result before
non-recurring result should remain at roughly the same level as in the previous year.
The Group is expected to return a net profit again, although it will be impacted
by the negative effects mentioned above. What level the net income for the year
will ultimately reach depends on these effects and above all on the duration andseverity of the recession in the new business for paper machines.
In this challenging environment, we will benefit from our strengths. Our broad-based
and balanced portfolio, our extensive international experience and our strong position in the various sectors and markets will once again form a stable basis for us
in this fiscal year.

Best regards,

Dr. Hubert Lienhard
President and CEO

Voith Interim Report 2013

5

6

Voith Interim Report 2013

Group interim management reportfor the period from October 2012 to March 2013

8

I.

Business and economic environment

9

II.

Business development and earnings position of the Group

14

III. Business development and earnings position of the Group Divisions

22

IV. Net assets and financial position

25

V. Subsequent events

25

VI. Risks and opportunities

26

VII. Forecast report

Voith Interim Report 20137

I. Business andeconomic environment
Slowdown in global economic growth
The economy continued to cool down in the fourth quarterof 2012—the beginning of the Voith fiscal year 2012/13—
and developed weaker than expected when we publishedour 2011/12 annual report. After only growing 2.7% in the
fourth quarter of 2012, according to an estimate made by theInternational Monetary Fund (IMF), the already conservative
economic forecasts made in the fall of the previous year were
adjusted downwards to reflect the change in the situation.
This relates to virtually all regions around the world as wellas the global economy itself. For the full year 2013, the IMF
is forecasting global economic growth of just 3.3 %, roughly
the same as the previous year (3.2 %). However, emerging
countries are growing much faster than industrial nations.
In the industrial nations, growth rates in the final quarter of2012 slumped to 0.8 %. As an annual average, growth inindustrial nations is predicted to lie at 1.2%, roughly the samelevel as the previous year. However, developments in thevarious regions will vary greatly. While the USA and Japanare expected to grow by 1.9 % and 1.6 % respectively in 2013,
according to IMF forecasts, the euro zone is likely to remain in
the grip of a recession, with economic performance falling by
0.3 %. The main driver of the comparatively good developmentin the USA is strong demand in the private sector, reinforcedby the positive trend on the property market. Nevertheless,the budget cuts that came into force after the negotiations
on the federal budget failed will have a somewhat dampening effect on growth in the USA. The economies in the eurozone are still suffering from public belt-tightening. Germany
is one of the few countries in the euro zone that is expected
to enjoy growth in 2013, with the IMF forecast lying at 0.6 %.

8Voith Interim Report 2013

Emerging economies are expected to see growth of 5.3 %in 2013, improving on their performance in the previous year
(2012: 5.1%), although development in these countries is
no longer seen quite as optimistically as in the fall of 2012.
Dynamic growth is forecast for China (8.0 %), the ASEAN
region (5.9 % primarily in Indonesia, Malaysia, the Philippines,
Singapore, Thailand) and India (5.7%). Brazil is expected toenjoy much stronger growth, with a forecast rise of 3.0 % in2012 compared to just 0.9 % in the previous year.
The euro crisis presents a grave risk for the global economy.
While the European Central Bank’s liquidity measures coupledwith the restructuring of Greek debt and the rescue planfor Cyprus have provided temporary relief, the discussion
regarding the continuation of the reform process in various
euro countries has led to continued uncertainty in the markets.
Three of the five markets served by Voith—energy, oil & gas
and raw materials—are currently displaying slight growth.
Paper production is rising marginally overall, although there
are huge differences between the various paper grades andregional markets. The market for paper machines has cometo an almost complete standstill. Trends on the transport& automotive market are extremely disparate between thevarious segments and regions with the market as a wholestagnating.
Quite independently of the above trends, the chain of crises
in recent years and ongoing uncertainties about the economy
have left their mark on the investment climate in most of theindustries we serve.

II. Business development andearnings position of the Group
II.1. Overall view
Lacking any noticeable stimulus from its markets, Voith closed
the first half of fiscal 2012/13 weakly on March 31, 2013.
Against the backdrop of a challenging economic environment, orders received by the Group, despite being up on
the comparable period of the previous year, fell short of ourtargets, primarily due to the collapse of the market for paper
machines due to a combination of cyclical and structural
factors. We suffered a slight drop in Group sales. All theGroup’s operating earnings indicators were positive, albeit
at lower levels than in the comparable period of the previous
year and below our expectations. In sum, the net income of
the Group virtually matched that of the comparable periodof the previous year.

Sales Groupin € millions

2,742

2,717

II.2. Sales
2011/122012/13

Group sales remain steady
The Voith Group generated sales of €2,717 million in the
2012/13 interim reporting period. This represents a slight
fall of 1% on the comparable period of the previous year(€2,742 million).
This steady development at Group level was due to sales
growth of 2% at Voith Hydro and 13 % at Voith Industrial
Services offset by a fall in sales of 9 % at Voith Paper and 4 %at Voith Turbo. Detailed information on the development ofsales in each of the Group Divisions can be found in Section
III of this interim management report, “Business development
and earnings position of the Group Divisions”.
The breakdown of sales between the four Group Divisions
was relatively even with each accounting for between 21% ofGroup sales (Voith Industrial Services) and 28 % (Voith Paper).

Full fiscal year

First half-year

Sales total €2,717 million
by Group Division
Voith Turbo
27 %Voith Hydro
24 %Voith Paper
28 %­Voith ­I ndustrial
S­ ervices
21 %First half-year 2012/13

Voith Interim Report 20139

II.3. Orders received
Orders received up slightly on previous year
The Voith Group secured new orders worth €2,632 million(previous year: €2,570 million) in the first half of fiscal 2012/13.
This is 2 % up on the comparable period of the previous year.
However, trends in the Group’s Divisions were disparate:
whereas Voith Hydro (up 34 %) and Voith Industrial Services(up 13 %) were able to record a significant rise in new businesscompared to the same period of the previous year, Voith Paper(down 14 %) and Voith Turbo (down 7 %) did not manage tomatch the level of orders received in the comparable periodof the previous year.
Each of the four Group Divisions contributed between 22 %(Voith Industrial Services) and 27 % (Voith Turbo) to the orders
received by the Group. Orders on hand as at March 31, 2013
came to €5,908 million, roughly the same level as at the end of
the previous fiscal year (September 30, 2012: €6,074 million).

Orders received total €2,632 million
by Group Division
Voith Turbo
27 %Voith Hydro
25 %Voith Paper
26 %­Voith ­I ndustrial­S ervices
22 %First half-year 2012/13

Orders received Group

Orders on hand Groupin € millionsin € millions

2,570

2011/12

6,074

5,908

2011/122012/13

2,632

2012/13

Full fiscal year

10

Voith Interim Report 2013

First half-yearII.4. Employees
Slight increase in number of employees

Employees GroupAs at March 31, 2013, the Voith Group employed 43,001
people (full-time equivalents, excluding trainees), 2% morethan at the end of the previous fiscal year (September 30,
2012: 42,327). This rise in the headcount is chiefly due to theacquisition of ThyssenKrupp Services Ltd. in the UK in theinterim reporting period by Voith Industrial Services. Adjusted
for this effect, the headcount remained relatively stable in theinterim reporting period.
The distribution of employees across the Group Divisions
has changed only slightly compared to the 2011/12 fiscal
year. The largest percentage of Voith employees (48 %) is
employed at Voith Industrial Services. 20,833 people were
working there at the close of the period under review. Voith
Paper, the second-largest division in terms of employees,
had 9,556 employees, equivalent to 22 % of the Group’s total
headcount. Voith Turbo employed 6,518 staff at the end ofinterim reporting period, accounting for 15 % of the workforceof the Group. Voith Hydro employed 12 % of the Group’s total
headcount (5,011). Regarding the change in the headcount ineach of the Group Divisions, see also Section III of this interim
management report “Business development and earnings
position of the Group Divisions”.

42,32743,001

2011/122012/13
Full fiscal year

First half-year

Employees total 43,001
by Group Division
Voith Turbo
15 %Voith Paper
22 %Voith Hydro
12 %­Voith ­I ndustrial­S ervices
48 %
Other
3%
First half-year 2012/13

Voith Interim Report 201311

II.5. Results
Net income close to previous year
The Voith Group generated net income of €60 million in the firsthalf of fiscal 2012/13, virtually matching the level of the previous year (€63 million). A significant decline in the operational
result was compensated by positive effects in the financial
result and income taxes.
Total output fell to €2,754 million in the interim reporting period(previous year: €2,821 million, a fall of 2 %). In addition to thedrop in Group sales, another factor in this development was
the smaller rise in inventories compared to the same periodof the previous year. Overall, the fall in total output at Voith
Paper (down 11%) and Voith Turbo (down 7 %) could not be
fully compensated by the rise in output at Voith Industrial
Services (up 13 %) and Voith Hydro (up 1%).
The cost of material decreased by €56 million to €1,115 million(previous year: €1,171 million, a fall of 5 %). The ratio of the costof material to total output dropped to 40.5 % (previous year:
41.5 %). The reduction in the ratio between the cost of material
to total output is due to the significantly smaller increase ininventories in comparison to the previous year and the higher
share of total output attributable to Voith Industrial Services,
as this business uses less material.

12

Voith Interim Report 2013

Personnel expenses rose by 5% to €1,084 million (previous
year: €1,032 million). The change is due to the changed headcount of the Voith Group and collectively bargained wage andsalary agreements. At Voith Turbo (up 5%) and Voith Industrial
Services (up 17%), personnel expenses rose accordingly. At
Voith Hydro (0%) personnel expenses remained constant andat Voith Paper they fell (down 3 %) due to the restructuring
measures initiated in fiscal year 2011/12. The ratio of personnel
expenses to total output increased to 39.4% (previous year:
36.6%). The reduction in personnel expenses achieved todate at Voith Paper was not sufficient to offset the fall in total
output, which is reflected in a significant fall in productivity
and a corresponding rise in the ratio of personnel expenses
to total output. In addition, the larger share of total output
accounted for by Voith Industrial Services led to a rise in theratio of personnel expenses to total output as this businessby nature requires greater labor input.
Other operating expenses net of other operating income
dropped to €364 million (previous year: €391 million, a fall of7%). The ratio of the net expense to total output decreased
to 13.2 % (previous year: 13.9 %). The significant cost savings
at Voith Paper were the greatest factor in this improvement.
The operational result before non-recurring result fell by 26 %to €103 million (previous year: €139 million). The return on sales
came to 3.8 % (previous year: 5.1%).

The non-recurring result of €-24 million (previous year: €-11 million) contains an impairment loss of €23 million recorded on
intangible assets and property, plant and equipment at Voith
Turbo. This impairment loss is due to the revised business plan
for a product group in the Rail division on account of orders
received not being realized in the reporting period as plannedin fiscal 2011/12 with an associated downwards adjustmentof earnings projections.

Net income Groupin € millions

63

The downsizing at Voith Paper and Voith Industrial Services
initiated in the previous reporting period led to further expensesof €1 million that are also reported under the non-recurring
result.
Interest income fell by €1 million to €6 million (previous year:€7 million), chiefly on account of the lower interest rates received on investments. Interest expenses were reduced to€41 million (previous year: €44 million). The factors responsible
for this development include the general fall in interest rates
and the scheduled repayment of a loan of €100 million fromthe European Investment Bank in May of the previous year.
The other financial result of €9 million (previous year: €0) is
primarily due to the dividend payments of €9 million received
from a financial investment.
Income taxes of €5 million (previous year: €-34 million) contain
income from the release of tax provisions for previous periodsof €29 million (previous year: €10 million).

60

2011/122012/13

Operational result before non-recurring result Groupin € millions

139

103

2011/122012/13
Full fiscal year

First half-year

Voith Interim Report 201313

III. Business development andearnings position of the Group Divisions
III.1. Voith HydroFirst half of the year develops as expected
Voith Hydro managed to continue the positive developmentof recent years and views the second half of the year withcautious optimism. Voith Hydro increased its sales by 2 % to€659 million in the interim reporting period (previous year:€645 million).
Hydro power market remains stable
The global hydro power market remained stable in the firsthalf of fiscal 2012/13 compared to the previous year. The
large hydro segment, which has been weak recently, showedsome signs of picking up. The market for small hydro power
plants (with a generating capacity of up to 30 MW per turbine)
was rather quiet. Modernization projects provided significant
growth stimulus. Due to the steady increase in the installedbase worldwide and longer operating lives, the trend towards
modernization is spreading from established hydro power
markets in North America and Europe to other importanthydro markets, like Brazil and China. In North America, wherelarge volumes of shale gas are currently being tapped with aconcomitant fall in gas prices, investments in other forms ofelectricity generation, including hydro power plants, are on thewane. The pumped storage market in southern Europe has
been dampened by the European financial crisis. In northern

Sales Voith Hydro

Europe the increasing amount of power fed into the grid fromsolar power sources has made pumped storage power plants
less economical. Service business for maintenance and spareparts continues to develop positively.
Orders received on the rise
Voith Hydro operated successfully in the market in the interim
reporting period, winning orders worth €656 million. As aresult, orders received were 34% up on the comparable
period of the previous year (€489 million). However, as iscustomary in project business, this high growth rate cannot
be extrapolated to the full year, as the rise is measured onan unusually low base for the six-month figure in the previous
year. In fiscal year 2011/12 orders received were spread very
unevenly over the two halves of the year. Only a third of thetotal volume of orders received was generated in the firsthalf of fiscal 2012/13. In the current year, we expect orders
to develop more steadily and a more even spread over theyear. At the end of the interim reporting period on March 31,
2013, orders on hand came to €3,254 million (September 30,
2012: €3,299 million).
Orders received in the interim reporting year were dominatedby a number of modernization and maintenance contracts,some of them large. For example, a contract was won to

Employees Voith Hydroin € millions
5,011

2011/122012/13659

645

2011/1214

5,087

Voith Interim Report 20132012/13

modernize the Brazilian 1,420 MW Salto Santiago power
station. We also received the contract for the second stageof the modernization of the Russian hydro power station inSaratov with an order for four further turbines. The full projectcomprises the modernization of 21 Kaplan turbines to improvetheir generating capacity from 60 MW to 68 MW. We wonother modernization contracts in the USA, Canada, Norway
and Germany as well as in China, Japan, and Turkey.
We won a large contract to equip a new hydro power plant in
Angola where we have been commissioned to install four generators and turbines in the Cambambe II hydro power planton the Kwanza River with the associated control technology
and systems. Africa is a promising market for hydro power.
Only a mere fraction of the technically feasible potential on thecontinent has been exploited. Moreover, in addition to Angola,
many other African states are budgeting a high level of spend
on their energy sector, with hydro power becoming increasingly favored. In the small hydro power segment contracts
were received from Japan, India, Latin America and Turkey.

As at March 31, 2013, Voith Hydro employed 5,011 staff worldwide. This means that headcount was roughly the same asat the end of the previous year (September 30, 2012: 5,087).
Significant rise in profit from operations
Voith Hydro increased its profit from operations in the firsthalf of fiscal 2012/13 by 15 % to €54 million (previous year:€47 million) and continued the positive trend that has prevailed for many years now. Return on sales improved to 8.1%
(previous year: 7.2%).

In the interim reporting period, Voith Hydro entered into a joint
venture with RusHydro in Russia, the largest generator of hydropower worldwide, and Vortex Hydrosystems Inc. was acquiredin Canada (see Section IV.4 “Financial investments/participatinginterests” for more information on these transactions).

Orders received Voith Hydro

Profit from operations Voith Hydroin € millionsin € millions

656

54

47

489

2011/122012/13

2011/122012/13
Full fiscal year

First half-year

Voith Interim Report 201315

III.2. Voith Industrial Services
Rise in sales
Voith Industrial Services had a satisfactory first half of fiscal
2012/13 during which the Group Division increased its sales
and recorded a profit from operations. The main driver ofgrowth was the Automotive division.
Voith Industrial Services recorded sales of €573 million in theinterim reporting period in line with its expectations. This is anincrease of 13 % compared to the first half of fiscal 2011/12(€506 million). In comparison to the same period of the previous year, there were a number of changes to the consolidated
Group, primarily in the Automotive division. Even after eliminating these non-organic changes, Voith Industrial Services
generated sales growth, most of which was accounted forby the Automotive division. Owing to the short throughput
times of service contracts, Voith Industrial Services does notrecord the volume of orders on hand. As a result, its figures
for sales and orders received are identical.
Three of the four divisions record growth
In the Automotive division, we once again recorded a significant increase in sales after two years of strong volume
growth. We are profiting from the strong growth of automobileand engine production in China. However, even in Europe,
where automobile production is currently on the decline, wewere able to win new orders in the period under review. We
also won new business in South America where automobile
production remained more or less at the same level as theprevious year.
Voith Industrial Services significantly improved its position
as one of the leading service providers for the automobile industry in the United Kingdom with the acquisition ofThyssenKrupp Services Ltd. (see Section IV.4 “Financial
assets/participating ­interests” for more information on thistransaction).

16

Voith Interim Report 2013

Sales in the Energy-Petro-Chemicals division in the first halfof fiscal 2012/13 remained below those of the comparable
period of the previous year. The main reason for the decline
was greater seasonal fluctuation, particularly with regard toturnaround maintenance. Refineries and the operators of
petrochemical and chemical plants have concentrated their
shutdowns on the summer months to a greater extent. Ourorder books are already full for the remainder of the fiscal
year. As a result, we expect to see significantly stronger sales
in the second half of the year. Energy providers in Germany
are still heavily occupied with the consequences of the newenergy concept. Nevertheless, we managed to win a numberof maintenance contracts for power plants.
The Engineering Services division, which offers contractengineering for the aerospace industry, manufacturers ofcars, commercial vehicles and rail vehicles, grew noticeably
in the period under review. The joint venture entered into with
P3 Ingenieursgesellschaft in April 2012 had a strong impact
on sales in the Aerospace segment. In the meantime, thejoint venture has managed to establish itself as the largest
engineering services provider in the aerospace industry inGermany. The Rail & Road segment also developed very
favorably. Among other contracts, we were able to win new
tramline development projects in China.
The Industries division, which offers regional services for theoperation of industrial locations, was operating in a stable economic environment, particularly in its core markets of Germany
and Austria and was able to increase its sales slightly.
As at March 31, 2013, Voith Industrial Services employed atotal of 20,833 persons (September 30, 2012: 19,984, up 4 %).
The rise in the headcount is primarily due to the acquisitionin the Automotive division.

Profit from operations has fallen on accountof non-recurring events

Employees Voith Industrial Services

Voith Industrial Services recorded a profit from operations of€11 million in the first half of fiscal 2012/13 (previous year:€15 million, down 31%). Due to the seasonal developments
described above, the figure for the period under review was
down on the comparative period. Return on sales came to
1.9 % (previous year: 3.0 %) in the period under review. The
profit from operations and the return on sales will improvesignificantly in the second half of the fiscal year and compensate the effects in the first half of the year.

19,984

20,833

2011/122012/13

Sales/Orders received Voith Industrial Services

Profit from operations Voith Industrial Servicesin € millionsin € millions

573

506

15

2011/122012/1311

2011/122012/13
Full fiscal year

First half-year

Voith Interim Report 201317

III.3. Voith Paper
Paper machine market still gripped by recession

Decline in orders received

Voith Paper looks back on a difficult first half of fiscal 2012/13
marked by falling sales, orders received and profits due tothe soft market. Globally, the market for paper machines iscaught in the grips of a deep recession. Even though global
paper production is on the rise overall, this slight growth iscurrently covered by the production capacity already installed.
The situation is exacerbated by fundamental structural change
in the market. The advance of digital media into everyday life
is leading to a permanent fall in demand for graphic grade
papers which is inexorably leading to a drastic fall in demand
for graphic grade paper machines compared to the past. By
contrast, there is rising demand for board and packaging
paper, tissue and specialty papers.

In the period under review, we were able to win new orders
totaling €672 million. The fall of 14 % on the comparable periodof the previous year (€785 million) is concentrated on the business with new machines and is greater than we were expecting.
Orders on hand as at March 31, 2013 decreased slightly
compared to the end of the last fiscal year, but at €1,409 million (September 30, 2012: €1,491 million, down €82 million)
are still very high.

In the first half of fiscal 2012/13, Voith Paper’s sales fell by 9 %to €757 million (previous year: €831 million). The decrease is
the result of a sharp decline in the market for systems (newmachines and major rebuilds). By contrast, business withproducts, consumables and services increased. In sum, we
fell just short of our sales target. From a regional perspective,
we recorded a market-driven fall in sales in China, the largest
volume market for new machines, yet enjoyed a significant
rise in sales to the rest of Asia outside of China.

Our systems business (new machines and major rebuilds)
recorded a significant drop in orders received in the first halfof fiscal 2012/13. The development is a consequence of theextreme reluctance of paper manufacturers to commit to investments in new machines. At present very few new projects
are being awarded. Demand for more compact machines isincreasing, particularly in Asia. However, this medium-sized
segment is characterized by very intense local competition.
We were able to win contracts for new machines to manufacture board and packaging paper as well as tissue in the period
under review. A large rebuild project concerns a machine for
specialty papers. Activity in the graphic grade paper segment
came to a virtual standstill in first half of fiscal 2012/13.

Sales Voith Paper

Orders received Voith Paperin € millionsin € millions

831

757

2011/1218

Voith Interim Report 20132012/13785

672

2011/122012/13

We were able to increase orders received for products, consumables and services in comparison to the same period of
the previous year. The order situation here is tight, but stable.
At the end of the period under review as at March 31, 2013,
the number of employees in the Voith Paper Group Division
sank by 263 to 9,556 (September 30, 2012: 9,819, down3%). The reason for the fall in headcount lies in downsizing inEurope in connection with restructuring measures decided onin the previous fiscal year. We plan to implement the personnel
cuts as rapidly as possible, by the end of 2013 at the latest.
The planned reduction in the workforce should therefore becompleted in the course of 2014.

profitability, with the return on sales falling to 0.5 % comparedto 1.9 % in the previous year. In the second half of the fiscal
year we are expecting to see a big improvement in the profit
from operations and the return on sales due to higher sales
and a greater impact from the cost-saving measures already
implemented.

Drop in sales dampens profit from operations
Voith Paper recorded a profit from operations of €4 million in
the first half of fiscal year 2012/13, significantly down on thecomparable figure in the previous year (€16 million, down 76 %)due to the drop in sales. Even though the measures initiated in
the fiscal year 2011/12 are only just starting to have an impact,savings in personnel expenses and other operating expenses
were already realized in the reporting period. Nevertheless,these cost savings were not enough to fully compensate thefall in sales in the reporting period, with a resulting impact on

Employees Voith Paper
9,819

Profit from operations Voith Paperin € millions
9,556

16
4
2011/122012/13

2011/122012/13
Full fiscal year

First half-year

Voith Interim Report 201319

III.4. Voith TurboBusiness down slightly on the previous year
In the Voith Turbo Group Division, sales, orders received andthe profit from operations in the first half of fiscal year 2012/13
all fell slightly on the figures for the comparable period of theprevious year.
Voith Turbo’s total sales came to €722 million in the period
under review, 4 % down on the comparative figure for theprevious year (€751 million). The decline is partly due to ashift in the timing of sales from the first half of the year tothe second half.
Developments in the individual divisions were disparate.
Whereas the Rail division was able to increase its sales, theIndustry, Marine and Road divisions all reported falling sales.
Orders received down on previous year
In the first half of fiscal year 2012/13, Voith Turbo won neworders totaling €724 million. This represents a fall of 7 % on thecomparable period of the previous year which at €781 million
had been exceedingly good. We fell just short of our target for
the first half of the year, partly because the final negotiations
for a number of large contracts were delayed. At present, we
assume that we will be able to compensate this effect in thesecond half of the year.

At the end of the interim reporting period on March 31, 2013,
orders on hand came to €1,245 million, and are therefore
slightly down on the level at the close of the previous fiscal
year (September 30, 2012: €1,284 million).
Orders received by the Industry division were down on theprevious year. In particular, the markets for mining and power
plant technology were comparatively soft, which affected
the start-up components and variable speed drives product groups. Business in the oil and gas market developed
positively in the period, with the division recording successes
in South America, the Middle East and Asia. In this connection, a major contract for the Brazilian mineral oil company
Petrobras is worthy of mention. By contrast, business forcomponents of the oil and gas industry in Iran has come toa standstill due to the tighter export regulations. In the steel
sector, which remains weak, we managed to win a major
contract for universal joints for a steel mill in India.
The orders received by the Marine division remained below thefigure of the previous year due to finance-related delays for
projects. In light of the current situation for project business,
we are optimistic that business will pick up in the second
half of the year.

Sales Voith Turbo

Orders received Voith Turboin € millionsin € millions

722

751

2011/1220

Voith Interim Report 20132012/13781

724

2011/122012/13Orders received by the Rail division remained stable. After alonger period of stagnation in the Chinese market for highspeed trains, we are now seeing signs of recovery. A numberof metro projects were also awarded. We received a major
contract from the Chinese Ministry of Rail in the period underreview to deliver turbo transmissions for special vehicles. In
Brazil, Voith secured two large contracts in the urban public
transport sector. In Western Europe, where only a few public
infrastructure projects are currently being financed due tothe high level of sovereign debt, the market for rail vehicles
is dominated by demand in Germany.
Orders received in the Road division were below the level
seen in the previous year. Regional stimulus came mainly fromCentral America, South America, China and Southeast Asia. In
Europe, by contrast, we were confronted by a fall in demand.
As at March 31, 2013, Voith Turbo employed a total of 6,518
persons (September 30, 2012: 6,363). This represents anincrease of 2%.

Voith Turbo recorded a profit from operations of €47 million in
the first half of fiscal 2012/13. This is below the corresponding
figure for the previous year (€77 million, down 39%) on account of the drop in sales due to market conditions and also
non-recurring events. Firstly, tighter regulations imposed by
the European Union on exports to Iran led to a loss of profitable sales volume in the Industry division. Secondly, the Group
Division is having to bear a tax burden from prior periods.
Another factor in the disproportionate fall in earnings is theincreasing competition. Finally, in order to attain our mid-term
growth targets, we recruited additional human capital in anticipation of the growth, primarily in rapidly expanding regions,which also burdened our profit from operations. Return onsales was 6.5% (previous year: 10.3 %).

Profit from operations Voith Turbo

Employees Voith Turbo
6,363

Profits from operations at a good level, butsuffering from some burdens

6,518

in € millions

77
47

2011/122012/13

2011/122012/13
Full fiscal year

First half-year

Voith Interim Report 201321

IV. Net assets and financial position

IV.1. Balance sheet structure
Equity ratio continues to improve
The balance sheet of the Voith Group continues to display
a healthy structure of assets and equity and liabilities. Thebalance sheet total fell to €5,861 million in comparison to
September 30, 2012 (previous year: €5,992 million, down 2 %).
Non-current assets decreased marginally to €2,570 million(previous year: €2,594 million, down 1 %). Intangible assets
and property, plant and equipment amounted to a total of€2,009 million (previous year: €2,023 million), virtually unchanged on the previous year. A rise in non-current assets
relating to capital expenditure and the effects of first-time
consolidation was slightly outweighed by depreciation,amortization and impairment losses (presented under thenon-recurring result).
There was a reduction in current assets to a total of€3,291 million (previous year: €3,398 million). This includes
a fall of €183 million in cash and cash equivalents to €734 million due to the total cash flow of the period (see Section IV.2
“Liquidity”). By contrast, inventories and trade receivablesrose on aggregate to €2,137 million (previous year: €2,074 million). Voith Hydro, Voith Industrial Services and Voith Paper
contributed equally to this rise, while these items remained
constant at Voith Turbo.

22

Voith Interim Report 2013

Non-current liabilities increased slightly by €22 million to€1,874 million (previous year: €1,852 million, up 1 %). An
increase of €21 million in long-term bank debt was a factor
in this regard. This was chiefly due to further drawings on the
syndicated credit facility placed in China in the previous year.
Current liabilities dropped to €2,591 million (previous year:€2,756 million, down 6 %). The bonds, bank loans and otherinterest-bearing liabilities contained in this line item decreasedby €33 million, primarily due to the repayment of short-term
liabilities to banks. The fall of €40 million in current income tax
liabilities can be mainly attributed to the release of tax provisions mentioned earlier in the report. Other financial l­iabilities
and other liabilities dropped by a total of €45 million, largelyon account of a decrease in personnel-related liabilities (down€28 million) and a fall in prepayments received from customers(down €18 million).
As at March 31, 2013, the Voith Group carried equity of€1,396 million, slightly up on the previous year (€1,384 million, up 1 %). The net income for the year had a positiveeffect on equity. By contrast, dividend distributions, currencytranslation and the acquisition of shares from non-controllinginterests reduced equity. The equity ratio improved to 23.8 %(previous year: 23.1 %).

IV.2. Liquidity

IV.3. Capital expenditure andR&D expenses

Improvement in total cash flow

Further investment in productivity

The cash flow from operating activities amounted to a net
outflow of €23 million (previous year: a net outflow of €23 million). The fall in earnings before tax (adjusted for depreciation
and amortization) was compensated for by the lower increasein net working capital in comparison to the same reporting
period in the previous year.

In the first half of fiscal 2012/13, we once again invested
in strengthening productivity and in the strategic orientation of the Group. At €92 million, capital expenditure was
below the level of the comparable period in the previous
year (€149 million, down 38 %). The Voith Paper and Voith
Turbo Group Divisions saw the highest additions to property,
plant and equipment. The ratio of investment to consolidated
sales stood at 3.4% (previous year: 5.4%). From a regional
perspective, investments focused on China and Germany.

The cash flow from investing activities amounted to a net
outflow of €94 million (previous year: a net outflow of €141 million). The decrease in the cash outflow is largely due to lower
capital expenditure on property, plant and equipment andintangible assets.
The cash flow from financing activities changed in the period
under review to a net outflow of €63 million (previous year: a
net outflow of €30 million). The larger cash outflow is mainly
due to dividend payments, which rose to €24 million (previous
year: €7 million) as well as the acquisition of further sharesfrom holders of non-controlling interests of €10 million (previous year: €2 million).

In the period under review, research and development expenses came to €122 million (previous year: €134 million,
down 9 %). The ratio of R&D expenses to sales for the sixmonth period was therefore 4.5% (previous year: 4.9%).
Measured over the full fiscal year 2012/13, we expect our
R&D expenses to match the level of the previous year.

Overall, there was a total cash outflow in the period underreview of €180 million (previous year: €194 million). For moredetails of the development of cash flow, please refer to the
cash flow statement.
Net debt, defined as the difference between interest-bearing
financial liabilities and liquid financial assets, came to €144 million (September 30, 2012: €-22 million). Compared to March
31, 2012, when net debt came to €180 million, this represents
a significant reduction.
Cash flows
First halfyear 2012/13

First halfyear 2011/12

Cash flow from operating activities

-23

-23

Cash flow from investing activities

-94

-141

Cash flow from financing activities

-63

-30

Total cash flow

-180

-194

in € millions

Voith Interim Report 201323

IV.4. Financial investments /participating interests
Two acquisitions and one joint venture
In March 2013 Voith Hydro entered into a joint venture with
RusHydro, the largest hydroelectricity producer worldwide.
The companies each hold 50% in the venture, VolgaHydro
GmbH, based in Balakovo, Russia. The entity is consolidated
in the Voith consolidated financial statements using the equity method. The foundation of the joint venture strengthens
the position of Voith Hydro on the important Russian hydropower market.
In addition, Voith Hydro acquired the Canadian company,
Vortex Hydrosystems Inc. in February 2013. Vortex Hydro is a
supplier of mechanical equipment for hydro power plants. The
company, which was founded in 2001, will act as a business
unit of the Voith Hydro Group Division in future. The acquisition has bolstered the position of Voith Hydro on the growing
market for service business in North America.

24

Voith Interim Report 2013

Voith Industrial Services acquired ThyssenKrupp Services Ltd.
in the United Kingdom in January 2013. With this strategicacquisition, Voith Industrial Services intends to reinforce
its position as one of the leading service providers for the
automobile industry in the United Kingdom. ThyssenKrupp
Services Ltd. provides facility management services, technicalcleaning, and process management, primarily to customers
in the automobile industry.

V. Subsequent events

VI. Risks and opportunities

There were no other significant events after the close of thefirst half of fiscal 2012/13 (March 31, 2013).

Risk management oriented to increasing thevalue of the Company
Entrepreneurial activity includes making decisions under conditions of uncertainty. To safeguard against risks that could
jeopardize the Group and/or its companies as a going concern, Voith operates a consistent and binding Group-wide risk
management system. The Voith Group operates a distributed
risk management system. It is designed to increase the valueof the Group and its companies by reducing potential risks
and the probability of their occurring. At the same time, thesystem is intended to produce a state of equilibrium between
correctly assessed risks and the exploitation of opportunities.
Risk and quality management are interlinked and integrated in
a comprehensive internal controlling system.
To the best of our knowledge at the time this report went topress, there are no risks which could jeopardize the ability of
the Voith Group to continue as a going concern. The statements made in the “Risks and opportunities” section of the2012 annual report remain valid.

Voith Interim Report 201325

VII. Forecast report

VII.1. Business environment
Economy not expected to revive until the endof the fiscal year
Voith does not expect the economic environment to improve inthe second half of the year. As at the editorial deadline for thisinterim management report in May 2013, the global economy
remains volatile and plagued by continued uncertainty. The
investment climate will remain subdued. Experts are forecasting that the economy will slowly pick up after a weak
start to the year 2013, with the revival starting in emerging
economies and progressively extending to industrial nationsin the second half of the year. The growth rate forecast by
the International Monetary Fund (IMF) for the full year 2013of 3.3% matches that of the previous year and is expected
to rise to 4.0 % in 2014.
Average growth of just 1.2 % is projected for industrial nationsin 2013, with growth of 2.2 % expected in the following year.
With growth of 2.2 % (2013) and 3.0 % (2014), the USA will be
an important factor behind this moderate growth. In the eurozone, by contrast, the economy is expected to remain in recession for another year in 2013 (down 0.3 %) and not recoveruntil 2014, when growth of 1.1% is projected. In Germany,
the climate for exports is expected to brighten slightly, with
marginal GDP growth of 0.6 % forecast. In 2014 this growth
should rise to 1.5 %.

see at best a small improvement in the second half of theyear. Nevertheless, we assume that the investment policies
of our customers will remain extremely cautious.
This moderate growth scenario for the global economy issubject to a number of risks which, if they eventuate, could
have a significant impact on the global economy and therefore
also on Voith. These risks include the destabilization of theeuro zone due to further restructuring of the sovereign debt
of distressed countries or an easing off of economic reform
efforts that have been initiated. Likewise, an escalation of thepolitical tensions in the Middle East or on the Korean peninsula
also poses a risk. Our forecast business development is basedon the assumption that no economic or political shocks occur.

VII.2. Future development of
the Company
Business environment remains challenging

The IMF is projecting growth of 5.3 % in emerging economies
in 2013 and 5.7% in 2014. China (with growth of 8.0 % in 2013
and 8.2 % in 2014) and India (5.7 % and 6.2 % respectively)
will be the greatest contributors to this growth. The Brazilian
economy is expected to return to growth of 3.0 % in 2013 and
4.0 % in 2014 after cooling off sharply in the previous year.

Developments on the relevant markets for Voith are likely toremain disparate for the rest of the fiscal year. Depending on
the development of the automobile industry, Voith Industrial
Services sees further growth potential. We expect Voith Hydro
and Voith Turbo to flatline for the rest of the period. Voith
Paper will suffer a painful loss in new business on accountof the collapse of the market for paper machines, owing toboth structural changes and a cyclical downturn in this sector.
In spite of the difficult situation, all four Group Divisions willcontinue to return a profit, underscoring the sound conditionof our Company.

In our five target markets (energy, oil & gas, paper, rawmaterials, transport & automotive) which have all currently
stagnated or are only exhibiting slow growth, we expect to

We expect Voith Hydro to continue developing satisfactorily
in the second half of the fiscal year. As already announced
in the annual report for 2012, we assume that sales and26

Voith Interim Report 2013

the profit from operations will rise slightly over the full year
2012/13. Based on stable market volume, we are projecting
to receive orders of a comparable volume to the previous
year. In the medium term, we expect major new projects
above all in South America and Russia. Global demand forthe modernization of hydro power plants will continue to riseand open up new opportunities in this attractive business for
Voith Hydro.

compared to the reporting period orders received over thefull fiscal year 2012/13 are not expected to rise above thelevel of the previous year but will remain constant. The Group
Division’s profit from operations will not match the excellent figure recorded in the previous year, mainly due to the
exceptional negative effects described earlier.

At Voith Industrial Services we expect to have a good second
half year, which will be reflected in a higher profit from operations for the full fiscal year 2012/13. Due to the measures
introduced to improve earnings, the return on sales should
also improve on the previous year. We expect to see stimulus to this growth mainly from the Engineering Services andEnergy-Petro-Chemicals divisions.

We had to adjust our annual Group forecast downwards: Dueto the weak development of business over the reporting period
and the lack of stimulus for growth in the wider economy,
we now expect Group sales to be roughly on the previousyear level. On account of the slump in new business at Voith
Paper and the fact that the orders received at Voith Turbo
are below target, at Group level we expect orders received
to be lower than the previous year. The operational result
before non-recurring result is expected to remain at the samelevel as the previous year. The Group will continue to make a
net profit, although the actual level of net income generated
for the full year depends on the duration and severity of theslump in new business for paper machines. The investment
volumes budgeted for the current fiscal year will be financed
from the cash flow from operating activities and existing cash
and cash equivalents. Our financing strategy will continue tofocus on diversity and long-term funding.

The market for Voith Paper will remain under pressure. In
contrast to when we published the 2012 annual report, we
now expect to see another noticeable drop in orders receivedon account of the on-going recession in the market for newpaper machines. The main reason for this development liesin the current hesitancy among paper manufacturers to makeany investments in capital goods in all regions. However, withregard to sales, we expect to see some improvement in thesecond half of the year compared to the interim reporting
period, resulting in sales for the full year 2012/13 reaching thesame level as the previous year, as already announced. With
regard to the profit from operations, the cost savings fromrestructuring will become increasingly noticeable, leading toa higher return on sales than in the previous year.

Trends at the Voith Group expected to remain flat

At Voith Turbo we assume that sales will fall slightly overthe full year 2012/13, as already announced. We have been
forced to adjust our forecasts for the profit from operations
and orders received downwards. Although we expect to see
slightly stronger new business in the second half of the year

Voith Interim Report 2013

27

28

Voith Interim Report 2013

Group interim financial statements
for the period from October 2012 to March 201330

Consolidated statement of income

31

Consolidated statement of comprehensive income

32

Consolidated balance sheet

34

Statement of changes in equity

36

Consolidated cash flow statement

37

Notes to the interim consolidated financial statements

40

Notes on segment reporting

40

Segment information by business segment

42

Notes to the statement of income and the balance sheet

45

Other notes

47

Responsibility statement

Voith Interim Report 201329

Consolidated statementof incomefor the period from October 1, 2012 to March 31, 2013in € thousands

2012-10-01 to 2013-03-31

2011-10-01 to 2012-03-31

2,716,841

2,742,386

37,07578,7472,753,916

2,821,133

144,244

143,365

Cost of material-1,115,135-1,171,133

Personnel expenses

Sales
Changes in inventories and other own work capitalized

Total output

Other operating income-1,083,911-1,032,155

Depreciation and amortization-87,809-86,871

Other operating expenses-508,242-534,846

Operational result before non-recurring result

103,063

139,493

Non-recurring result-23,862-10,648

Operational result

79,201

128,845

Share of profits from associates

2,943

4,944

Interest income

5,611

6,626

Interest expenses-41,278-43,748

Other financial result

9,080

85

Income before taxes

55,55796,752

Income taxes

4,674-34,248

Net income

60,23162,504

Net income attributable to shareholders of the parent company

48,67152,535

Net income attributable to holders of non-controlling interests

11,5609,969

30Voith Interim Report 2013

Consolidated statement ofcomprehensive income
for the period from October 1, 2012 to March 31, 2013in € thousands

2012-10-01 to 2013-03-31

2011-10-01 to 2012-03-31

60,23162,504

Gains/losses on available-for-sale financial assets-3,054-35,435

Gains/losses on cash flow hedges-1,429-1,424

Gains/losses on currency translation-9,624

11,586

Gains/losses on net investments in foreign operations-1,146

2,274

63

0

1,272

10,368Other comprehensive income-13,918-12,631

Total comprehensive income

46,31349,873

Total comprehensive income attributable to shareholdersof the parent company

37,62639,451

Total comprehensive income attributable to holders
of non-controlling interests

8,687

10,422

46,31349,873

Net income
Components of comprehensive incomethat will be later recycled through profit or loss:

Share of associates in other comprehensive income
Taxes on components of comprehensive incomethat will be later recycled through profit or loss

Voith Interim Report 201331

Consolidated balance sheet
as at March 31, 2013
Assetsin € thousands

2013-03-31

2012-09-30

769,295

770,630

1,240,376

1,251,711

A.

Non-current assets

I.

Intangible assets

II.

Property, plant and equipment

III.

Investments in associates

40,34636,082

IV.

Securities

224,517

223,840

V.

Other financial assets

26,84436,857VI.

Other financial receivables

80,38587,683

VII. Other assets

43,514

41,731

VIII. Deferred tax assets

145,225

145,505

Total non-current assets

2,570,502

2,594,039

909,076860,220

1,228,332

1,213,821

44,59542,233B.

Current assets

I.

Inventories

II.

Trade receivables

III.

Securities

IV.

Current income tax assets

118,022

113,237

V.

Other financial receivables

113,280

103,840

VI.

Other assets

142,240

145,947

733,905

916,894

3,289,450

3,396,192

1,270

1,270

Total current assets

3,290,720

3,397,462

Total assets

5,861,222

5,991,501

VII. Cash and cash equivalents

VIII. Assets held for sale

32

Voith Interim Report 2013

Equity and liabilitiesin € thousands

2013-03-31

2012-09-30

120,000

120,000

1,015,886

990,030A.

EquityI.

Issued capital

II.

Revenue reserves

III.

Other reserves

94,121

105,166

IV.

Profit participation rights

6,600

6,600

1,236,607

1,221,796

Equity attributable to shareholders of the parent company
V.

Profit participation rights

91,80091,800VI.

Other interests

67,45569,942

159,255

161,742

1,395,862

1,383,538

Equity attributable to holders of non-controlling interests

Total equity

B.

Non-current liabilities

I.

Provisions for pensions and similar obligations

428,100

430,022

II.

Other provisions

216,403206,348

III.

Income tax liabilities

38

3,219

IV.

Bonds, bank loans and other interest-bearing liabilities

1,022,647

1,000,722

V.

Other financial liabilities

16,35019,762VI.

Other liabilities

67,547

67,145

VII. Deferred tax liabilities

123,037

125,098

Total non-current liabilities

1,874,122

1,852,316

C.

Current liabilities

I.

Provisions for pensions and similar obligations

26,62826,887II.

Other provisions

279,404

313,092

III.

Income tax liabilities

63,851

103,443

IV.

Bonds, bank loans and other interest-bearing liabilities

200,104

233,359

V.

Trade payables

544,657

557,513VI.

Other financial liabilities

286,826

317,018

VII. Other liabilities

1,189,768

1,204,335

Total current liabilities

2,591,238

2,755,647

Total equity and liabilities

5,861,222

5,991,501

Voith Interim Report 201333

Statement of changes in equity
Equity attributable to shareholdersof the parent companyin € thousands

Issuedcapital

Revenue
reserves

Available-for-salefinancial assets

Cash flow
hedgesCurrencytranslation

2012-10-01

120,000

990,030

57,116-864

54,808Net income

48,671Other comprehensive income
Total comprehensive income

048,671

Allocation of reserves to profit
participation rights-5,412Acquisition of non-controlling interests-4,916-1,962-1,366-6,959-1,962-1,366-6,95955,154-2,23047,849

Share of income attributable to profit
participation rights
Dividends-15,000

Contributions from holders of
non-controlling interests
Non-controlling interests—put options-906

Other adjustments

3,419

2013-03-31

120,000

1,015,886

Equity attributable to shareholdersof the parent companyin € thousands

Issuedcapital

Revenue
reserves

Available-for-salefinancial assets

Cash flow
hedgesCurrencytranslation

2011-10-01

120,000

901,450

95,339-1,13838,685-25,155-917

11,356-25,155-917

11,35670,184-2,05550,041

Net income

52,535

Other comprehensive income
Total comprehensive income

0

Allocation of reserves to profit
participation rights

52,535-4,594

Acquisition of non-controlling interests-170

Share of income attributable to profit
participation rights
Dividends
Contributions from holders of
non-controlling interests
Non-controlling interests—put options-1,267

Other adjustments-2,201

2012-03-31

34

Voith Interim Report 2013

120,000

945,753

Equity attributable to holders of
non-controlling interests
Net investments
in foreign operations

Profit participationrights

Total

Profit participationrightsOtherinterests

Total

Total
equity-5,8946,600

1,221,796

91,80069,942

161,742

1,383,538

11,56011,56060,231-2,873-2,873-13,918

8,687

8,687

46,3135,049

0-5,384-5,384-10,300

48,671-758-758-11,045
037,6260363-5,0495,049-4,916-363-363-5,049-15,000-6,6526,600-3,228-5,049-5,412-3,228-18,228

0

2,000

2,000

2,000

-906

-4,433-4,433-5,339

3,419

-129

-129

3,290

67,455

159,255

1,395,862

1,236,607

91,800Equity attributable to holders of
non-controlling interests
Net investments
in foreign operations

Profit participationrights

Total

Profit participationrightsOtherinterests

Total

Total
equity-7,5496,600

1,153,387

91,80042,144

133,944

1,287,331

52,535

9,969

9,969

62,504-13,084453

453-12,631

10,422

10,422

49,8734,231

0-1,507-1,677-4,231-4,594

1,632
1,632

0

39,451

0363-4,231

4,231

-170
-363

-5,917

6,600

-363

-1,507-4,2310-2,651-2,651-2,651

0

683

683

683

-1,267-6,835-6,835-8,102-2,201-252-252-2,45342,004

133,804

1,318,410

1,184,606

91,800Voith Interim Report 201335

Consolidated cash flow statementin € thousands

2012-10-01 to 2013-03-31

2011-10-01 to 2012-03-31

Income before taxes

55,55796,752

Depreciation and amortization

110,576

87,113

Interest expenses/income

35,667

37,122Other non-cash items

631

1,959

Gains/losses from the disposal of property, plant, equipment
and intangible assets

1,204

-371

Gains/losses from investments-8,980-168

Changes in other provisions and accruals-67,360-58,476

Change in net working capital-113,624-136,098

Interest paid

-7,801-11,980

Interest received

5,271

5,323

Dividends received

9,613

831

Tax paid-44,121-45,309

Cash flow from operating activities-23,367-23,302

Investments in property, plant, equipment and intangible assets-92,187-148,646

Proceeds from the disposal of property, plant, equipment
and intangible assets

2,305

9,152

Investments in financial assets-3,676-5,502Acquisitions of subsidiaries-7,126-7,139

Sale of subsidiaries

0

2,792

Proceeds from the disposal of financial assets

12,724681

Changes in investments in securities-6,334

7,400

Cash flow from investing activities-94,294-141,262

Dividends paid

-23,640-7,2452,000

683-10,300-1,677

Contributions from holders of non-controlling interests
Acquisition of non-controlling interests

83,42065,989

Repayment of bonds, bank loans and overdrafts

New bonds, bank loans and overdrafts-103,374-91,141

Changes in other interest-bearing financial receivables and liabilities-10,003

4,356

Cash flow from financing activities-61,897-29,035

Total cash flow

-179,558-193,599-3,431-3,726

Cash and cash equivalents at the beginning of the period

916,894

927,140

Cash and cash equivalents at the end of the period

733,905

729,815

Exchange rate movements, valuation changes andchanges in the consolidated Group36

Voith Interim Report 2013

Notes to the interim
consolidated financial statements
Basis of the interim consolidated
financial statements
Voith GmbH (Voith) is a company founded in Germany withinternational activities. The Company’s registered offices arelocated in Heidenheim an der Brenz at St. Pöltener Strasse 43.
Voith is entered in the commercial register at the Registration
Court in Ulm, Germany, under the number HRB 725621. Theinterim consolidated financial statements prepared by Voith
are filed with the Bundesanzeiger [German Federal Gazette] inGerman. As a domestic issuer of debt securities pursuant toSec. 2 (1) Sentence 1 German Securities Trading Act (WpHG),
Voith prepares this half-year financial report in accordancewith the provisions of Sec. 37w WpHG and the requirementsof IAS 34 “Interim Financial Reporting”.
The interim consolidated financial statements for the firsthalf of fiscal 2012/13 were prepared in accordance with theInternational Financial Reporting Standards (IFRS) for interim
financial reporting as endorsed by the European Union. In
comparison to the full annual report as at September 30,
2012 the interim consolidated financial statements are of acondensed scope.
The unaudited interim consolidated financial statements do
not include all of the information and disclosures required forconsolidated financial statements and must therefore be readin conjunction with the consolidated financial statements forthe year ending September 30, 2012. The interim financial
statements are presented in euros and the figures have beenrounded using standard commercial principles.
Within the framework of preparing the interim consolidated
financial statements pursuant to IFRS, it is necessary to makecertain estimates, judgments and assumptions that could havean impact on the amount and presentation of the assets andliabilities recognized in the reporting as well as the disclosureson contingent assets and contingent liabilities on the reporting
date and on the income and expenses reported for the period.
Actual amounts may differ from the estimates. Changes in
estimates, judgments and assumptions could have a material
impact on the interim financial reporting.
The accounting policies applied by the Group in these interim
consolidated financial statements generally correspond to theaccounting policies applied in the IFRS consolidated financial
statements for the previous reporting year. Income taxes arerecorded on the basis of an estimate of the weighted averageannual tax rate expected for the full year taking account of thetax impact of any circumstances that can only be allocatedto the respective reporting period.
In the first half of fiscal 2012/13, the following revised IFRS
was adopted for the first time:
Amendment to IAS 1: “Presentation of Financial Statements”
As a result of the amendment, “other comprehensive income”
presented in the statement of comprehensive income mustbe broken down to distinguish between income that is later
recycled through the statement of income, and income thatis not. Currently the statement of comprehensive income
at Voith only contains income that will be recycled throughthe statement of income at a later date. The presentationof the statement of comprehensive income was adjusted
accordingly.

Voith Interim Report 201337

Consolidated GroupThe following companies are included in the consolidated
financial statements:
2013-03-31 2012-09-30
Voith GmbH and
its fully consolidated subsidiaries:
Germany

62

63

Other countries

146

142

Total fully consolidated companies

208

205

Associates accounted
for using the equity method:
Germany

6

4

Other countries

13

12

Total associates accounted for using
the equity method

19

16

The following entities were fully consolidated for the first timein the reporting period:•

Voith IHI EcoSolutions GmbH & Co. KG, Heidenheim•

Vortex Hydrosystems Inc., Québec, Canada•

P3 Voith Aerospace Inc., Wichita, United States•

 oith Industrial Services (Coventry) Limited, Warwick,V
United Kingdom•

Voith Industrial Services B.V., Barendrecht, Netherlands•

Voith Turbo Colombia Limitada, Bogotá D.C., Colombia•

Voith Turbo S. A., Santiago de Chile (Conchali), Chile

38

Voith Interim Report 2013

Intercompany mergers between Group entities in Germany
and abroad reduced the number of fully consolidated entities.
Companies in which Voith GmbH has the power to directly
or indirectly exercise a significant influence on financial andoperating policy decisions (associates) are accounted forusing the equity method. VolgaHydro LLC, Balakovo, Russia,
Micromat Spannhydraulik GmbH, Rutesheim and LZH Logistic
Zollservice Heidenheim GmbH, Heidenheim, were consolidated for the first time in the period under review.

Business combinations in fiscal 2012/13
Acquisition of ThyssenKrupp Services Ltd.,
United Kingdom
Voith Industrial Services acquired all of the interests and voting
rights in ThyssenKrupp Services Limited effective January 18,
2013. With this acquisition, Voith Industrial Services intends toconsolidate its position as one of the leading service providers
for the automobile industry in the United Kingdom. The entity
provides facility management services, technical cleaning andprocess management.
Part of the intangible assets purchased, e.g. the know-how
of the employees, cannot be recognized, as the recognition
criteria are not met, and is therefore subsumed under goodwill. Apart from that, the goodwill stems from the aforementioned expected positive effect for the Voith Industrial Services
Group Division. Goodwill is not tax deductible. The following
amounts resulted from the assets and liabilities acquired fromthe combination:

Balance sheet itemin € thousands
Intangible assets

Acquisition datefair value
2,925

Other non-current assets

933

Inventories

145

Receivables

5,507

Other assets

560

Cash and cash equivalents

2,225

Provisions-3,200Liabilities-3,420Carrying amount

5,675

Goodwill

2,909

Purchase price of the interests
purchased

8,584

Cash and cash equivalents-2,225

Cash outflow

6,359

The purchase price allocation is still preliminary for the intangible assets and liabilities items. Consideration in the formof cash and cash equivalents has already been given in full.
There are no other purchase price components. No purchaseprice adjustments are planned.
The fair value of the receivables acquired corresponds to theircontractual gross amount. Most of the receivables had been
settled by the reporting date.
The acquisition-related costs amounted to €164 thousand(recognized as other operating expenses).

In the first half of fiscal 2012/13, the entity contributed sales
totaling €8,694 thousand and net income of €288 thousandto the Voith Group’s consolidated statement of income. If thebusiness combination had already taken place on October 1,
2012, the Group’s sales would have been €8,254 thousandhigher and the Group’s net income for the year would havebeen €402 thousand higher.
Acquisition of Vortex Hydrosystems Inc., Canada
In February 2013, Voith Hydro acquired 80% of the sharesand voting rights of the Canadian firm Vortex Hydrosystems
Inc. The company supplies mechanical equipment to hydropower plants. The purchase price for the shares amounted to€718 thousand with goodwill amounting to €1,539 thousand
after the preliminary purchase price allocation. Goodwill isrecognized taking into account the share attributable to holders of non-controlling interests. Overall, the effects of thistransaction are immaterial for the net assets, financial position
and results of operations of the Group as at March 31, 2013.

Acquisition in fiscal 2012/13 of further
interests in entities over which the Groupalready has control
Voith Hydro acquired a further 49% of the interests in VG
Power AB, Västerås, Sweden, in the first half of fiscal 2012/13.
The Group now wholly owns the company and holds 100% of
the voting rights. The purchase price was €10,300 thousand.

Voith Interim Report 201339

Notes on segment reporting

The structure of the segments and the methods used to calculate the segment information have remained unchanged
since September 30, 2012.

Other adjustments
Other adjustments contain effects which, based on their operating character, are normally shown as other operating income
and expenses in the consolidated statement of income. In
determining the profit from operations, these adjustments
are eliminated as non-recurring effects so as to facilitate theassessment of the operating activities by segment.

When calculating the profit from operations, the following profit/
loss components are taken into consideration unchanged
compared to the last consolidated financial statements:
Operating interest income

The capital employed as at the reporting date March 31, 2013is an average value derived from the values as at the end of
the current period under review and as at the reporting dateof the previous period under review. The capital employed
presented as a comparative figure as at September 30, 2012is an average value derived from the values as at the end of
the period ending September 30, 2012, the reporting date forthe previous interim financial statements and as at the end of
the previous period ending September 30, 2011.

Operating interest income is defined as interest received by
the Company on the long-term financing of receivables from
customers or as the imputed interest effect attributable tothat portion of customer advances that is not used to financeinventories and PoC receivables.

Segment information by business segment
Voith Hydroin € millions

Voith Industrial Services

Voith Paper

2012/13

2011/122012/13

2011/122012/13

2011/12

659

645

573

506

757

831

2

4

14

14

15

15

Total segment sales

661

649

587

520

772

846

Profit from operations

54

47

11

15

4

16

Capital employed

542

530

231

201

936

907

5,011

5,087

20,833

19,984

9,556

9,819

External sales
Sales with other segments

Employees2)1)2)

Subtotal for Voith Hydro, Voith Industrial Services, Voith Paper and Voith Turbo.
Statistical headcount as at the reporting date compared with September 30, 2012.

40

Voith Interim Report 2013

The two defined components “Operating interest income” and“Other adjustments” are not shown directly in the consolidated
statement of income and are therefore disclosed separately
in the following reconciliation of the profit from operations toincome before taxes.
Reconciliation of total profit from operations toconsolidated income before taxes:in € millions

2012/13

2011/12

Profit from operations

125

158

Operating interest income

-18

-16

Other adjustments-3-2

Non-recurring result

-24

-11

3

5

-36

-37

Other financial result

90Income before taxes

56

97

Share of profits from associates
Interest result

Voith Turbo

Total core business1)

Reconciliation

Total

2012/13

2011/122012/13

2011/122012/13

2011/122012/13

2011/12

722

751

2,711

2,733

6

9

2,717

2,742

3

2

34

35

-34

-35

0

0

725

753

2,745

2,768

-28

-26

2,717

2,742

47

77

116

155

9

3

125

158

812

787

2,521

2,425

155

142

2,676

2,567

6,518

6,363

41,91841,253

1,083

1,074

43,00142,327Voith Interim Report 201341

Notes to the statement of income
and the balance sheet

The following notes are restricted to those matters that provide
useful additional information for understanding the amounts
reported in the statement of income and the balance sheet.

Other operating expenses
in € thousands

2012/13

2011/12

Increase in provisions and accruals

94,036

94,864

Selected notes to the statement of income

Other selling expenses

168,276

175,188

Other administrative expenses

125,524

142,383

Other operating income

Foreign exchange losses

23,93633,230Rent for buildings and machinery

37,90736,150in € thousands

2012/13

2011/12

Bad debt allowances

3,739

2,246

Income from the utilization ofcontract-specific provisions

59,37955,135

Income from the reversal of provisions
and accruals

Losses on the disposal of intangible
assets and property, plant andequipment

2,163

1,577

24,976

31,405

Foreign exchange gains

24,196

18,352

Recovered bad debts

3,219

7,135

Gains on the disposal of intangible
assets and property, plant andequipment
Other income

959

1,947

31,51529,391

144,244

143,365

Other expenses

52,661

49,208508,242534,846

Significant savings were realized with regard to other selling
expenses and other administrative expenses, particularly atVoith Paper. Additions to the provisions and accruals contain€10 million from an expected tax burden for previous periods
at Voith Turbo.
Non-recurring result
The non-recurring result of €-24 million contains impairment
losses of €6 million recorded on intangible assets and €17 million recorded on property, plant and equipment at Voith Turbo.
The orders received by a product group that constitutes acash generating unit in the Rail division did not meet the target
set in the business planning prepared in fiscal year 2011/12.
Orders received in the first half of fiscal 2012/13 were low.
The latest business planning consequently shows a significant
volume-related reduction in the expected profit. This led to theneed to record the impairment loss. The recoverable amountused in the calculation corresponds to its value in use.

42

Voith Interim Report 2013

Selected notes to the balance sheet
The downsizing at Voith Industrial Services and Voith Paper initiated in the previous reporting period led to further expensesof €1 million that are also reported under the non-recurring
result.
The non-recurring result of €-11 million in the comparable
period of the previous year mainly consists of personnel­expenses of €3 million related to measures to adjust personnel
capacity at Voith Industrial Services and €8 million at Voith
Paper.
Other financial resultin € thousands
Income from investments
Impairments of securities andother investments
Sundry other financial result

2012/13

2011/12

8,980

168

-39

-242

139

159

9,080

85

Intangible assets
In the first half of fiscal 2012/13 an amount of €14 million(previous year: €25 million) was invested in intangible assets.
Additions originating from business combinations totaled€7 million (previous year: €6 million). Amortization amounted
to €16 million (previous year: €15 million) and impairment
losses to €6 million (previous year: €0).
Property, plant and equipment
Investments in property, plant and equipment amounted to€78 million in the first half of fiscal 2012/13 (previous year:€124 million). Property, plant and equipment originating frombusiness combinations of €2 million was added (previous year:€0). Depreciation amounted to €72 million (previous year:€72 million) and impairment losses to €17 million (previous
year: €0).
Inventories
Inventories consist of the following items:

Income taxes
Income taxes of €5 million (previous year: €-34 million) comprise income from the release of tax provisions for previous
periods of €29 million (previous year: €10 million).

in € thousands
Raw materials and supplies

2013-03-31 2012-09-30
294,819

275,840

Work in progress

327,008

307,401

Finished goods and merchandise

146,385

140,392

Prepayments

140,864

136,587

909,076860,220

EquityA dividend of €0.13 per share was distributed from the unappropriated retained earnings of Voith GmbH. This equates to€15,000 thousand (previous year: €0). Distributions totaling€5,412 thousand were made to holders of profit participation capital (previous year: €4,594 thousand as at March 31,2012). Dividends totaling €3,228 thousand were distributed
to other holders of non-controlling interests (previous year:€2,651 thousand as at March 31, 2012).

Voith Interim Report 201343

Bonds, bank loans and other interest-bearing
financial liabilities
Financial liabilities include the following items:in € thousands
Bonds

Current

Non-current

2013-03-31

Current

Non-current

2012-09-30

0866,945866,9450871,019871,019

118,083

69,541

187,624

156,020

48,691

204,711

Financial liabilities from leases

475

2,319

2,794

713

2,399

3,112

Notes payable

219

40

259

1,434

39

1,473

81,32783,802

165,129

75,19278,574

153,766

200,104

1,022,647

1,222,751

233,359

1,000,722

1,234,081

Bank loans

Other financial liabilities

44

Voith Interim Report 2013

Other notes
Contingent liabilities, contingent assets
and other financial obligations
Possible tax risks exist outside Germany concerning the tax
recognition of expenses amounting to a maximum of €12 million (previous year: €12 million).
In connection with the recognition of transfer prices outside
Germany, there are additional risks of €5 million (previous year:€5 million) and of €12 million (previous year: €10 million) forlegal disputes. A successful outcome is currently expectedin both cases.
Owing to failure, due to an end customer, to comply withspecific rules concerning the receipt of tax incentives outside
Germany, the recognition of tax privileges is currently disputedby the tax authorities. The maximum risk is currently €41 million (previous year: €39 million), although the assessment
undertaken by the engaged lawyers suggests that there is
still a chance of the tax privileges being recognized or theGroup otherwise being held harmless and that the maximum
risk will not therefore materialize.
Neither Voith GmbH nor any of its Group companies are involved in any current or foreseeable taxation, legal or arbitration
proceedings that could materially influence their economic
situation.

The contingent liabilities listed below are stated at face value.
No provisions were made to cover these contingencies, as
the risk of their realization is regarded as low:in € thousands

2013-03-31 2012-09-30

Guarantee obligations
Warranties

36,02437,939718

624

36,742

38,563

Other financial obligations are as follows:in € thousands

2013-03-31 2012-09-30

Purchase commitments for capital
expenditures

34,06352,313Obligations arising from non-cancelable
operating leases

121,115

129,209

232

542

155,410

182,064

Other

Owing to the ongoing tax field audit of the German companies,
further changes may be made to tax items.
From the Voith Group’s perspective, the Group might haverights to offset tax liabilities due to the tax authorities totaling
approximately €10 million (previous year: €10 million) outside
Germany.

Voith Interim Report 201345

Related party disclosures
Transactions with related parties continue to be conducted
at arm’s length conditions. The majority of intercompany
deliveries and services to related parties are shown in the
two tables below:
in € thousands

2013-03-31 2012-09-30

Liabilities to family shareholders

53,06047,891

Receivables from associates,incl. advances paid*

4,886

2,703

Liabilities to associates*

3,095

2,433

Receivables from other investments,
including advances paid

10,071

11,726

Impairment of receivables from otherinvestments

-328

-320

22,92824,879Receivables from theultimate parent company

197

163

Liabilities to theultimate parent company

4,007

3,950

Liabilities to other investments, including
advances receivedin € thousands

2012/13

2011/12Services purchased from associates*

4,217

3,352

Services rendered to associates*

1,028

390

Services purchased from otherinvestments

1,396

2,513

Services rendered to other investments

7,423

11,523Services purchased from theultimate parent company

5,230

7,049

385

396

Services rendered to theultimate parent company* Previous year restated.

46

Voith Interim Report 2013

Guarantees of €12,174 thousand (previous year: €11,836 thousand) and €559 thousand (previous year: €2,870 thousand)were given in favor of one associate and other investments,
respectively.
Obligations from outstanding orders payable to the ultimate parent amount to €2,600 thousand (previous year:€3,278 thousand) and those payable to associates amountto €8,988 thousand (previous year: €15,581 thousand).

Events after the period under review
There were no significant events after the balance sheet date.

Heidenheim, May 13, 2013
Voith GmbH
The Board of Management
Dr. Hubert Lienhard
Dr. Hermann Jung
Dr. Hans-Peter Sollinger
Martin Hennerici
Bertram Staudenmaier
Dr. Roland Münch
Carsten J. Reinhardt

Responsibility statement

To the best of our knowledge and in accordance with theapplicable reporting principles for interim financial reporting,the interim consolidated financial statements give a true andfair view of the assets, liabilities, financial position and profit orloss of the Group, and the interim Group management report
includes a fair review of the development and performance ofthe business and the position of the Group, together with adescription of the principle opportunities and risks associatedwith the expected development of the Group for the rest of
the fiscal year.

Heidenheim, May 13, 2013
Voith GmbH
The Board of Management
Dr. Hubert Lienhard
Dr. Hermann Jung
Dr. Hans-Peter Sollinger
Martin Hennerici
Bertram Staudenmaier
Dr. Roland Münch
Carsten J. Reinhardt

Voith Interim Report 201347

Significant events
October 2012
Official opening of Estreito power station in Brazil by President
Dilma Rousseff. Voith delivered eight Kaplan turbines, each
rated at 138.6 megawatts, including control systems, automation and electro-mechanical equipment. The final unit wascommissioned in March 2013.
Commissioning of Ermenek power station in Turkey, for which
Voith delivered two Francis turbines rated at 153 megawatts
each.
Voith Hydro in Milan, Italy, receives the Edipower S­ afety Award
2012 in recognition of its services to several Italian hydro power
stations, among them Chiavenna hydro power plant.
Voith receives its first pipeline engineering contract fromINEOS in Cologne, a petrochemical company, for the extension of an existing plant.
Voith carries out electric installations in the Statoil refinery inMongstad, Norway, on behalf of Ahlstrom. The project runs
from October 2012 until February 2013.
Voith Paper launches its new organizational structure per
1 October 2012. In order to cater for differing global market
conditions and to provide maximum service for its customers,
Voith Paper will in future rely on a more regionally orientatedorganization structure with four regional Business Units andthree global Business Lines.

48

Voith Interim Report 2013

Voith receives an order for two integral gears, helical gears androtor turning gears from MAN in Oberhausen, Germany. The
end customer is the Chinese Hengli Group in Dalian, where
the high-performance gearboxes are used in a terephthalicacid production plant. Terephthalic acid is a base m­ aterial forpolyester and polyamides.
Voith receives a major order from the Chinese Ministry ofRail for the delivery of turbo transmissions for special rail
vehicles and can thus expand its position as a market leader
in this segment.
Until June 2013 Voith will deliver a total of 36 turbo couplings
to the Beumer Group for 16 belt conveyors, which will be usedin the iron ore handling terminal in Teluk Rubiah, ­Malaysia.
The belt conveyors transport the extracted iron ore from thehandling terminal to the port. The Voith turbo couplings havean output range from 200 to 800 megawatts. The delivery
covers TVVS couplings, as well as special designs.

November 2012
Following an order from the Netherlands company Frames,
Voith is starting its first major skid construction project inBelgium. The end customer is the Swedish oil and gas company Lundin. With skid construction projects and the development of production lines in module design, Voith Industrial
Services is expanding its portfolio as an industrial service
provider in the energy and petrochemical industry.
Between November 2012 and March 2013 Voith receives
several orders for electric installations at Skoda Auto in Mlada
Boleslav, Czech Republic.
Voith receives an order from Klabin, Brazil’s largest paper
manufacturer, for a complete production line for packaging
papers. Commissioning of the new plant located at Goiana
is scheduled for mid-2014.
Voith receives an order from China for the delivery of a tissue
paper machine. After commissioning, which is scheduled forlate 2014, the machine will produce about 60,000 tons ofhygienic paper per year.
The Polish vehicle manufacturer PESA orders six Powerpacks
from Voith for diesel railcars in Lithuania. Voith will also s­ upply
the diesel engines.
IETT Istanbul, Turkey’s largest public transport operator, orders 750 buses from Otokar. All vehicles are fitted with Voith
DIWA transmissions.

Voith Interim Report 201349

December 2012
Voith receives an order for the turnkey delivery of the entire
electro-mechanical equipment for the Brazilian small hydropower plant Santo Antonio do Jari with an output of 3.4
megawatts.
Voith receives an order for San Miguel power station in Colom­bia. The order volume includes two turbines rated at 22.9
mega­watts each, as well as the generators and the entire
automation technology.
Voith receives an order from Coopelesca for Cubujuquí hydropower station in Costa Rica for two Francis turbines and generators, including all electro-mechanical equipment.
The Turkish power station Akköy II is commissioned. Voithdelivered two Pelton turbines, each rated at 117 megawatts,
the generators and the electro-mechanical equipment for the
project.
Commissioning of the Czech power station Litomerice. Voithdelivered two turbines, each rated at 3.5 megawatts, including
the generators, control system and the electro-mechanicalequipment.
Prensas Schuler S/A in Brazil honors the foundry at Voith
Hydro in São Paulo (VHP) as “Best Supplier” with the “Management of National Suppliers Award” in the category raw
materials.
As part of a turnaround project in Lysekill, Voith receives anorder from Preem AB in Sweden to carry out mechanicalwork at a number of heat exchangers and pipe systems. The
project runs from September to November 2013.

50

Voith Interim Report 2013

Exxon Mobil presents Jan Petersen of Voith with an award
for the high safety standards at a turnaround and management project in Tønsberg, Norway. This is the first time that
­ExxonMobil has honored an individual with a safety certificate.
Jan Petersen is a supervisor at Voith Industrial Services inRingsted, Denmark.
Voith receives an order from Modern Karton for a new paper
machine in Corlu, Turkey. Commissioning of the new machine, which excels by particularly low water consumption,is scheduled for mid-2015.
Voith receives a major order for the rebuild of a special paper
machine in Russia. After comprehensive modernization activities involving the entire machine, the recommissioning of
the refurbished unit is planned to take place in early 2014.
Voith will supply 28 Vorecons to the Brazilian end customer
Petrobras for the Pre-Salt oilfield in Brazil. This is a follow-on
order. Prior to that, Voith had already received an order for 60
Vorecons, which will be used by Petrobras for oil exploration
off the Brazilian coast.
For the first time Voith receives an order to equip a special
vessel in X-bow design with two Voith Schneider Propellers
including roll stabilization for the Norwegian company Ulstein.
The vessel, the Siem Moxie, will be used for offshore windpark duties in the North Sea and in the Atlantic.

January 2013
Voith receives an order for the complete overhaul of three
generators and turbines in Owens George hydro power stationin California, USA.

Voith takes over ThyssenKrupp Services Ltd. in the United
Kingdom and thus strengthens its position as a leading service
provider for the country’s automotive industry.

The first of a total of five generators at Long Kai Kou hydropower station in Yunnan, China, is commissioned.

Voith receives an order from Total Raffinerie MitteldeutschlandGmbH for a turnaround project in Leuna, Germany. The proj­
ect will run from May to June 2014.

Voith receives an order for new turbine runners, generator
windings, the automation technology and other equipment
for the hydro power station Salto Santiago in the Brazilian
state of Paraná.
Voith receives two modernization orders for hydro power
stations in Brazil—one for Passo Fundo in the state of Rio
Grande do Sul and one for Chavantes hydro power plant in
the state of São Paulo.
For the Chinese hydro power station San Men Xia Voith isawarded a contract for the rehabilitation of two 50 megawatt
turbines, the automation technology and other components.
Effective at the turn of the year, Voith Hydro takes over all
remaining shares in VG Power AB based in Västerås, Sweden.
The previous majority shareholding of 51% is thus increased
to 100 % ownership.
Voith starts a turnaround project at Nesteoil in the Netherlands.
The contract is a follow-on order of the customer for anotherrefinery.
At the Statoil refinery in Kalundborg, Denmark, Voith starts acomprehensive tank repair project. The project will run fromJanuary to November 2013.

Voith introduces its new sustainable product portfolio BlueLine
for stock preparation. With BlueLine, Voith has developed aproduct range that keeps energy, water and fiber consumption
at a minimum. At the same time, customers benefit from highefficiency, quality and reliability.
Voith launches the new rubber roll covers MajorSoft and
MegaSoft for tissue production. The special feature of theseroll covers is their improved multi-layered structure. This makes
the covers exceptionally durable, so that they withstand eventhe most extreme machine conditions while simultaneously
improving the machine efficiency.
Voith receives an order from the Brazilian vehicle manufacturer
Bom Sinal for the delivery of Voith Powerpacks for municipaltransport operators. The customer has so far received 126
Voith Powerpacks.
Daimler introduces its new heavy construction vehicle family,
Mercedes Benz Arocs. The new series can be fitted with
the Voith Secondary Water Retarder (SWR) and the VIAB
turbo coupling. All vehicles are series-equipped with Voith
air compressors.

Voith Interim Report 201351

February 2013
Voith receives an order for the modernization of Brownleehydro power station in Idaho, USA. The contract volume
includes the delivery of four new turbine runners as well ascomprehensive rehabilitation work.

With NanoPro, Voith launches a new roll cover for calenders.
Calenders are used in the paper industry for finishing andrefining. With the new NanoPro covers, the availability of thecalenders can be significantly increased.

Voith receives an order from Norway‘s largest energy supplier Statkraft for the modernization of six turbines in four
Norwegian hydro power stations. The original turbines in the
power plants Oevre Roessaaga, Nedre Roessaaga, Baatsvatn
and Vessingfoss were installed between 1955 and 1975 andwill in future provide up to 10% more output.

Voith Turbo receives a major order for the delivery of 48 way
valves for steam turbines. The customer is the Italian company
Bruno Presezzi, who will use the valves for the modernizationof four steam turbines type Franco Tosi, each rated at 320
megawatts.

Voith takes over Vortex Hydrosystems Inc. in Granby, Canada.
Vortex is a supplier of mechanical equipment for hydro power
stations.
Voith expands its portfolio and, for the first time, offers complete machines for pulp drying. The highlight is the uniquedrying section, which has a vertical arrangement instead of
the customary horizontal design. This patented innovation
allows an effective and energy-saving drying process.

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Voith Interim Report 2013

Voith will deliver 525 gear units for metros for the ChineseBrazilian joint venture VTCL. The vehicle manufacturer is the
Chinese company CRC, the metros will enter service in Brazil.
Voith receives two major orders for the delivery of a totalof 497 DIWA transmissions. The Belgian public transport
operator De Lijn ordered 160, and ATAC in Rome ordered
337 units, 200 of which are destined for single and 137 forarticulated buses.

March 2013
Voith receives an order from Rheinkraftwerk AlbbruckDogern AG (RADAG) for the modernization of a hydro power
station on the Rhine at the German-Swiss border. The delivery
includes, among other items, three new Kaplan runners.
Voith is awarded a contract for the equipment of Cambambe IIhydro power station in Angola. The order includes four
generator-turbine units with a total output of more than
700 mega­watts, as well as the control technology with all
related systems.
Voith Hydro and RusHydro, the world’s largest producer ofenergy from hydro power, sign a contract in Moscow, Russia,
for a new joint venture—VolgaHydro GmbH—, in which bothcompanies hold a 50% stake.
Voith receives an order from Xiangtan Electric Manufacturing
Group Co. Ltd. (XEMC) in China for the development of alow-floor tram for Chinese megacities, which meets the latest technical requirements. The order includes the complete
production planning.

Voith is awarded a contract by Ford in Brazil for assembling 60
new robots in the customer’s vehicle body plant in Camaçari.
The project starts in May 2013.
Shanghai Volkswagen Powertrain Co. presents Voith with agold award for “Outstanding Service.” Voith has been working
for the customer for five years and has since then received
four awards in succession. For the second time, Voith has
now also been given the special gold seal of approval.
Voith Paper and the nonwovens expert Trützschler Nonwovens
announce that they will cooperate in future and offer acomplete production line for wet laid and hydroentangled
nonwovens. The aim of the cooperation is the joint development and marketing of innovative and economical production
equipment.

Voith Interim Report 201353

Imprint
Publisher:
Voith GmbH
St. Pöltener Str. 43
89522 Heidenheim
Germany
Phone: +49 7321 37-0
Fax: +49 7321 37-7000
E-mail: info@voith.com
www.voith.com

Respecta Silk 60, used for this Voith
Interim Report 2013, is a recycled paper
manufactured in accordance with the international FSC® standard. The cellulose
is partly manufactured from certified, i.e.
responsibly managed, forests. Careful
forestry practice ensures, among otherthings, that biological diversity andecological processes are not disturbed
when wood products are removed fromthe forest. The paper was manufactured
with Voith equipment.
Printed in Germany© Voith GmbH, 2013-05

This interim report is also available inGerman. Both versions and other information are available on the Internet
for download.

www.voith.com

Voith GmbH
St. Pöltener Straße 43
89522 Heidenheim, Germany
Phone +49 7321 37- 0
Fax+49 7321 37- 7000
www.voith.com