Interim Report 2012

Voith in Figures

2011-10-01 to
2012-03-31

2010-10-01 to
2011-03-31

Orders received

2,570

3,412

Sales

2,742

2,629

Operational result
before non-recurring result

139

178

Return on sales in %

5.1

6.8

Income before tax

97

143

Net income

63

95

Cash flow from operating activities

-23

-31

Total cash flow

-194

-121

Investments

149

103

€ in millions

Equity 1)

1,318

1,287

Equity ratio in %

23.1

22.1

Balance sheet total 1)

5,715

5,815

Employees

40,746

40,6911)2)1)

Reference date March 31, 2012, compared to September 30, 2011.

2)

Without apprentices.

Contents
Foreword

01 Group 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

8
9
14
22
24
25
26

02 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
Notes to the statement of income and the balance sheet
Other notes
Responsibility statement

30		
31
32		
34		
36		
37		
41
44		
46		
48		

Significant events49		Foreword

Dear reader,
Voith is looking back on a first half year of fiscal 2011/12 (as of March 31, 2012)that has been satisfactory on the whole.
The Group’s sales have again risen slightly in the first six months. In four of thefive markets served by Voith—energy, oil & gas, raw materials, transport & automotive—we were on a track for solid growth. Correspondingly, the Group Divisions Voith Hydro, Voith Industrial Services and Voith Turbo developed positively,
with increasing sales and good results.
By contrast, the paper market is undergoing far-reaching structural change: On
the one hand, demand for graphic grade papers is falling faster than anticipated
as a result of the widespread digitization of everyday life due to end devices suchas the iPad and the resulting changes in consumer habits. These are the paper
grades required to print newspapers and magazines, for example. On the other
hand, medium- to long-term demand for paper machines is growing, above all in
Asia and particularly in the highly competitive market segment for mid-size paper

4

Voith Interim Report 2012

machines. This new segment is characterized by a lower price structure, greaterand more aggressive competition, and significantly higher cost pressure. As in
2008, we again rapidly and decisively initiated measures in order to counter thesestructural challenges, secure the profitability of Voith Paper for the long term, andmaintain our market leadership.
The effects and costs of these changes will also impact results for the year as awhole. Due to the development at Voith Paper and the lower order volumes
expected at Voith Hydro, orders received for the year as a whole are anticipated
to remain high, though falling short of the outstanding record figure of the previous
year. Overall, we continue to expect a very respectable result for the year as awhole, particularly in a multi-year comparison. Subject to the condition that thefundamental economic assumptions for 2012, in particular for the euro zone andAsia, continue to apply, the company anticipates that it will complete the fiscal
year 2011/12 with a slight increase in group sales, positive cash flow from operating activities, a further increase in the equity ratio and another clearly positive
result.
In light of this, we are optimistic regarding the Voith Group’s future. The first halfyear 2011/12 proved yet again that our business model is flexible and robust. With
its broad-based and balanced portfolio, and its strong market position in all segments, Voith can counteract not only weak phases, but also fundamental structural changes in individual divisions. It is this firm foundation that will enable us tocontinue our profitable global growth trajectory in the future.
Sincerely,

Dr. Hubert Lienhard
President and CEO

Voith Interim Report 2012

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Voith Interim Report 2012

Group interim management reportfor the period from October 2011 through March 2012

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ut aliquip ex ea commodo consequat.
Voith Interim Report 2012

77

I. Business andeconomic environment
Slowdown in global economic growth
In the first half of the fiscal year 2011/12, the global economy continued to slow down. The already cautious expert
forecasts published last fall were adjusted downward. The
International Monetary Fund (IMF) now expects global economic growth of just 3.5% for 2012, following an increase of
3.9% in 2011.
With an average increase in gross domestic product (GDP)of 5.7%, the emerging economies continue to make thegreatest contribution to the growth of the global economy in2012, although the forecasts for them were also reduced. In
China, for example, an increase of only 8.2% is expected for2012, following 9.2% in the previous year. This decreased
growth in China is due to ailing demand from the Europeanand U.S. markets which are important for Chinese exports.
In the industrialized nations, which saw an average GDP
increase of 1.6% in 2011, even weaker growth of 1.4% is
expected for the current year. While the economy in the USA
is expected to grow slightly (IMF forecast for 2012: +2.1%),
the euro zone is in recession (-0.3%) with high unemployment. In particular, some southern European countries,
including France, have not yet bottomed out. In addition, thehigh level of debt in Europe and in North America restricts
governments’ scope for action.

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Voith Interim Report 2012

The euro crisis is currently the greatest risk facing the global
economy. While the European Central Bank’s liquidity measures and the restructuring of Greek debt have provided temporary relief, the discussion regarding the continuation of thereform process in various euro countries has led to continued uncertainty in the markets.
The development of the oil price is an additional burden on
the global economy. While demand for oil from China andIndia is rising, there is a global supply shortage due to the
sanctions imposed on Iran by the EU and other industrial
nations. As a result, the oil price increased significantly­during the period under review. The EU embargo, whichcomes into force in July, and a possible further escalation of
the Iran conflict, for example through the closure of theStraits of Hormuz, are feeding fears of a real oil price shock.
Four of the five markets served by Voith—energy, oil & gas,
raw materials, transport & automotive—were on track formoderate growth in the period under review. The paper market, by contrast, slowed down due to economic conditions.
This short-term development was exacerbated by a longterm, structural change in the graphic grade papers segment due to the continuing trend toward digitization in
every­day life.

II. Business development andearnings position of the Group
II.1. Overall view
On March 31, 2012, Voith completed a satisfactory first halfyear 2011/12, enabling us to look ahead to the rest of theyear with cautious optimism. We increased our consolidated
sales, which were already at a high level. Voith has a verylarge number of orders on hand, and this will characterize
the development of sales in the coming months. However,orders received in the period under review decreased. Thiswas due, on the one hand, to the announced return to normal levels in the hydro power market, where numerous extra­
ordinary large-scale projects had been awarded in the previous fiscal year, and on the other due to an unexpectedly
marked slowdown in the paper market. All the Group’s significant earnings indicators were positive but at lower ­levels
than in the comparative previous-year period.

II.2. Sales

Sales Group€ in millions

2,629

2,742

4% growth from an already high level
2010/11In the first half year 2011/12, the Voith Group grew its sales
by 4% to €2,742 million (previous year: €2,629 million). Thismeans that we are in line with our budgeting from the beginning of the fiscal year.
Of the four Group Divisions, Voith Hydro recorded the greatest sales growth with an increase of 12%. Voith Industrial
Services (+3%) and Voith Turbo (+7%) also grew. Voith Paper
lost 3% of its sales in comparison to the corresponding previous-year period. Detailed information on the developmentof sales 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 four Group Divisions accounted for between 19% (Voith
Industrial Services) and 30% (Voith Paper) of consolidated
sales. Each therefore contributed significantly to the company as a whole.

2011/12Full fiscal year

First half-year

Sales total €2,742 million
by Group Division
Voith Turbo
27%

Voith Hydro
24%

Voith Paper
30%­Voith ­Industrial­Services19%

First half-year 2011/12

Voith Interim Report 20129

II.3. Orders received
As expected, orders received down on previous year
The Voith Group secured new orders worth €2,570 million(previous year: €3,412 million) in the first half year 2011/12.
This is 25% down on the previous year. The previous-year
figure was characterized by an unusually high level of orders
received at Voith Hydro, due to winning several large-scale
projects. In the 2011 half-yearly report, we already announced
that the high level of orders received would not be sustainedin subsequent years as orders are not placed for infrastructure projects of this scale on a regular basis. In addition to
the expected decrease at Voith Hydro (-49%), there was adecrease at Voith Paper (-34%), which had not been forecastin this ­magnitude, due to market conditions. Voith Turbo andVoith Industrial ­Services each increased their level of orders
received by 3%. Regarding the trend of orders received in
the divisions, see also Section III “Business development andearnings position of the Group Divisions”.

Our orders on hand came to €5,937 million as at March 31,
2012. This is €107 million less than as at the cut-off date in
the previous year (September 30, 2011: €6,044 million).
Voith Paper remained the Group Division with the largest
share of orders received (31%), followed by Voith Turbo(30%). Voith Industrial Services contributed 20% and Voith
Hydro 19% to total orders received.

Orders received total €2,570 million
by Group Division
Voith Turbo
30%

Voith Hydro
19%

Voith Paper
31%­Voith ­Industrial­Services
20%

First half-year 2011/12

Orders received Group

Orders on hand Group€ in millions€ in millions

6,044

5,937

2010/112011/12

3,412
2,570

2010/112011/12Full fiscal year

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Voith Interim Report 2012

First half-yearII.4. Employees
Number of employees stable

Employees GroupAs at March 31, 2012, the Voith Group employed 40,746
people (full-time equivalents, excluding apprentices), 55 morethan at the end of the previous fiscal year (September 30,
2011: 40,691).
The distribution of employees across the Group Divisions
has changed only slightly compared to the 2010/11 fiscal
year. The largest percentage of Voith employees (44%) is
employed in the Industrial Services Group Division. 17,784
people were working there at the close of the period underreview. Voith Paper, the second-largest division in terms of
employees, had 10,061 employees at the close of the period
under review, equivalent to 25% of the Group’s total headcount. Voith Turbo employed 6,307 persons, or 15%. Voith
Hydro, with 5,568 employees, accounted for 14% of theGroup’s total headcount. Regarding the headcount developments in the divisions, see also Section III of this interim
management report, “Business development and earnings
position of the Group Divisions”.

40,69140,746

2010/112011/12Full fiscal year

First half-year

Employees total 40,746
by Group Division
Voith Turbo
15%

Voith Hydro
14%

Voith Paper
25%­Voith ­Industrial­Services
44%
Other
2%
First half-year 2011/12

Voith Interim Report 201211

II.5. Results
Net income positive, but lower
Voith recorded net income of €63 million (previous year:€95 million, -34%) in the first half year 2011/12. This decrease
was largely due to a marked drop in sales and income in theVoith Paper Group Division due to market conditions. As aresult of the stable income situation in the other Group Divisions, we continued to report good income overall. Detailed
information on the development of each of the Group Divisions can be found in Section III of this interim management
report, “Business development and earnings position of theGroup Divisions”.
Total output increased to €2,821 million in the period underreview (previous year: €2,709 million). In line with the development of sales, this represents an increase of 4%. A decrease
at Voith Paper (-1%) was more than compensated for by theother Group Divisions. Voith Hydro in particular saw anincrease of 12% in line with sales growth.
Cost of material increased to €1,171 million (previous year:€1,095 million, +7%). The material ratio (the relationship between cost of material and total output) increased to 41.5%(previous year: 40.4%). This was mainly due to the abovementioned higher share of the material-intensive Voith Hydro
Group Division in the Group’s total output. A higher material
ratio at Voith Paper, mainly due to the increase in productand service business, also increased the Group’s ratio accordingly.

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Voith Interim Report 2012

Personnel expenses rose by 4% to €1,032 million (previous
year: €994 million). The relationship between personnel
expenses and the Group’s total output remained stable at
36.6% (previous year: 36.7%). Here too, however, there were
varying developments in the Group Divisions. Personnel
expenses as a percentage of total output at Voith Paper
increased due to the lower capacity utilization and increased
pressure on prices in the market. The low capacity utilizationand the resulting lagged adjustment of variable costs burdened the net income correspondingly. Although the positive
development in some other Group Divisions and the changed
mix of Group Divisions in total output kept personnel expenses
as a percentage of total output within the Group at a constantlevel, they could not compensate for the negative effect ofVoith Paper.
Other operating expenses net of other operating incomechanged to €391 million (net expense). In the previous year
the net expense amounted to €362 million. This represents
an increase of 8%. The ratio of the net expense to total output increased to 13.9% (previous year: 13.4%). The lower
capacity utilization and the resulting decrease in income atVoith Paper are reflected in the development of this indicator.
The operational result before non-recurring result fell within
the Group by to €139 million (previous year: €178 million,-21%). Return on sales was 5.1% (previous year: 6.8%).

The non-recurring result of €-11 million (previous year: €0)
includes measures aimed at adjusting personnel capacity.
These pertain to Voith Industrial Services in the amount of€-3 million and Voith Paper in the amount of €-8 million.

Net income Group€ in millions

Interest income fell by €3 million to €7 million (previous year:€10 million), due to the lower cash and cash equivalents andlower interest rates on deposits. Interest expenses were reduced to €44 million (previous year: €48 million). This was
mainly due to the repayment of a bond issued on the capital
market in the second half of the fiscal year 2010/11.

95
63

2010/112011/12The other items in the consolidated statement of incomechanged in line with the pattern of business development.

Operational result before non-recurring result Group€ in millions

178

139

2010/112011/12Full fiscal year

First half-year

Voith Interim Report 201213

III. Business development andearnings position of the Group Divisions
III.1. Voith Hydro
Double-digit percentage increase in sales and earnings
Voith Hydro is looking back on a successful first half of the
fiscal year 2011/12. The Group Division achieved a doubledigit percentage increase in sales and earnings, and wasthus fully in line with our expectations.
Sales recorded in the period under review came to €645 million. This represents an increase of 12% on the comparative
previous-year period (€576 million). Voith Hydro benefited
from the high number of orders on hand at the end of the
fiscal year 2010/11, among other factors.
Hydro power market returns to normal
Following the award of several extraordinarily large infrastructure projects in the previous year, the global hydropower market returned to normal in the current fiscal year.
We do not expect major projects on this scale to be awarded
again until the coming years.
Nevertheless, Voith Hydro operated successfully in the market in the period under review, winning orders worth €489
million. As expected, however, this figure fell short of thehigh value of orders seen in the previous year (€966 million;-49%). At the end of the period under review on March 31,
2012, orders on hand came to €3,121 million (September 30, 2011: €3,252 million).
Orders received characterized by modernization andmaintenance projects
In the first half year 2011/12, Voith Hydro won orders relating
to two large hydro power plants in Asia. As part of an orderfrom Turkish utility Kalehan Energy, we will deliver three
235 MVA generators for the Beyhan-1 hydro power plant ineastern Turkey. We see this order as another milestone in
our activities in Turkey, where we have equipped 45 newpro­jects of widely varying sizes during the past five years.
Another major order came from India, where we will fully
equip the new Singoli Bathwari power plant. The project
includes three 33 MW Francis units, the respective genera-

14

Voith Interim Report 2012

tors, the automation system and all electrical and mechanical auxiliaries. In addition, we won orders in the small hydrosegment (hydro power plants up to 30 MW) for new power
plants in France and Turkey.
Several modernization and maintenance orders, some ofthem on a large scale, in countries including Switzerland,
Russia, Canada and Argentina, also contributed to the goodlevel of orders received in the period under review. In addition to a sizable order for the comprehensive upgrade of theCanadian Ruskin hydro power plant, two large-scale orders
from Russia should be highlighted: on the one hand, thecountry’s largest private energy provider Irkutskenergoordered six new 255 MW Francis turbines, including accessories, for the Bratsk hydro power plant in eastern ­Siberia.
On the other, our long-term customer RusHydro, Russia’s
largest generator of renewable electricity from hydro power,
has signed a contract with us for the delivery of two ­Kaplan
turbines and the turbine governors, including accessories,
for the ­Miatlinskaya hydro power plant in southern ­Russia.
The new turbines are each designed with an output of
145 MW.
Due to the high volume of orders on hand, Voith Hydro iscontinuing to increase headcount in the fiscal year 2011/12.
In the first half year 2011/12, Voith Hydro created 223 newjobs and employed 5,568 people at the end of the period
under review (September 30, 2011: 5,345, +4%). The majority of employees were hired in Brazil, where Voith Hydro is
working on several major projects. New jobs were also created in India and Germany.
Profitability increased
The development of earnings was also very encouraging:
Voith Hydro increased its profit from operations in the firsthalf year 2011/12 to €47 million (previous year: €38 million,+23%) and improved its return on sales to 7.2% (previous
year: 6.6%).

Sales Voith Hydro

Employees Voith Hydro€ in millions
5,345

5,568

2010/112011/12645

576

2010/112011/12

Orders received Voith Hydro

Profit from operations Voith Hydro€ in millions€ in millions

966

47
38
489

2010/112011/122010/112011/12Full fiscal year

First half-year

Voith Interim Report 201215

III.2. Voith Industrial Services
Sales up by 3%
Voith Industrial Services had a good first half year 2011/12
during which the Group Division increased its sales asplanned and recorded a profit from operations. The growth
driver was the Automotive division, which developed very
favorably.
Voith Industrial Services recorded sales of €506 million in the
period under review. This represents an increase of 3% on
the comparative previous-year figure (€489 million). Owing
to the short throughput times of service contracts, Voith
Industrial Services does not record the volume of orders on
hand. As a result, its figures for sales and orders received
are ­identical.
Strong growth in the Automotive division
Voith Industrial Services recorded a marked increase in sales
in the Automotive division, particularly in Germany and therest of Europe, where the automobile industry remainedlargely unaffected by the economic crisis. In light of its global
presence, however, Voith Industrial Services also ­benefited
from increasing automobile production in China and the
upturn in the North American market. In the first half of the
fiscal year 2011/12, the Automotive division won or extended
several large-scale contracts, for example in Germany, theUSA, Brazil, China and India.
We recorded a slight increase in sales in the Energy-PetroChemicals division. However, the development did not live
up to our expectations. This was mainly due to a drop in
demand from refineries as well as operators of petrochemical and chemical plants in northern Europe, which rescheduled large-scale maintenance and reconstruction projects
due to expected overcapacity. This organic decrease in sales

16

Voith Interim Report 2012

was offset by the acquisition of Mongstad Elektro, a providerof automation and electrical engineering services for the oiland gas industries. The Norwegian company was consolidated in the Voith Group for the first time during the period
under review. For further information on this acquisition,please refer to Section IV.4 “Financial investments/participating interests”. Demand from energy producers in Germany
for maintenance service at existing plants also remained low.
As a result of the German federal government’s new energy
concept, they are currently focusing on adapting their business to the new framework conditions.
The Engineering Services division, which offers contractengineering for the aerospace industry, manufacturers ofcars, commercial vehicles and rail vehicles, grew substantially in the period under review. Demand increased appreciably in all of the segments served by this division, with Voith
Industrial Services reaping greater-than-average benefits
from growth in the sector.
The Industries division, which offers regional services for theoperation of industrial locations, has been operating in a stable economic environment, particularly in its core markets ofGermany and Austria. Due to the targeted divestiture of several companies, sales in the first half year 2011/12 were
down on the comparative period. The division now deliberately focuses on the regions Germany and Austria, and has
withdrawn from the employee leasing business and someother non-core activities.
As at March 31, 2012, Voith Industrial Services employed atotal of 17,784 persons (September 30, 2011: 18,464, -4%).
The decrease in headcount is due to the sale of some companies in the Industries division. As a result of the positive
business development, particularly in the Automotive division, several hundred new jobs were created.

Profit from operations falls slightly, as expected

Employees Voith Industrial Services

Voith Industrial Services recorded a profit from operations of€15 million in the first half year 2011/12 (previous year: €17
million, -11%). Due to one-off events, this figure for theperiod under review was down on the comparative period.
In anticipation of a strong second half year, and due tomeasures already initiated, we expect higher net income forthe full fiscal year than in the previous year. Return on sales
was 3.0% (previous year: 3.5%) in the period under review.

18,464

17,784

2010/112011/12

Sales/Orders received Voith Industrial Services

Profit from operations Voith Industrial Services€ in millions€ in millions

506

489

17

2010/112011/1215

2010/112011/12Full fiscal year

First half-year

Voith Interim Report 201217

III.3. Voith Paper
Market slowdown on an unexpected scale
Voith Paper is looking back on a difficult first half year
2011/12 marked by a significant market slowdown. On the
one hand, this is due to cyclical factors. On the other, it isintensified by a long-term structural change: the rise of digital media and the associated shift in everyday consumer
habits has gathered pace considerably in recent years, leading to a significant drop in demand for graphic grade papers
used, for example, to print newspapers or books. This has
hit the mature markets of Europe and North America particularly hard. As a result of the interplay of both effects,
Voith Paper is not expected to meet its targets in the current
fiscal year. During the period under review, sales, profit fromoperations and, in particular, the level of orders received werealready down.
In the first half year 2011/12, Voith Paper’s sales fell by 3%
to €831 million (previous year: €859 million). The decrease is
the result of a fall in the market for systems (new plant andmajor rebuilds). This is because customers have rescheduled planned projects due to the start of the cyclical recession in the paper market. By contrast, business with products, consumables and services has increased slightly. Froma regional perspective, we achieved strong sales growth inBrazil and India. In comparison to the previous year, China
was slightly weaker in terms of sales, but as in the past con-tinues to represent a very large sales market. We recorded a
decrease in sales in the mature markets of North America
and Europe.
Level of orders received down due to market conditions
While sales in the period under review continued to benefit
from the high number of orders on hand from the previous
year, our new business was already seriously impacted by
the changing market conditions. At €785 million, orders
received in the period under review were significantly downon our budget. This was €410 million or 34% lower than thecorresponding previous-year figure (€1,195 million). Orders
on hand as at March 31, 2012 decreased slightly comparedto the end of the last fiscal year, but at €1,468 million (September 30, 2011: €1,494 million, a decrease of €26 million)
are still very high.
Our market for systems (new plant and major rebuilds)
recorded a lower level of orders received in the first half year
2011/12 as paper manufacturers rescheduled or postponed
projects. We were able to win an appropriate number of the
projects awarded. For example, a major order from India fortwo specialty paper machines for manufacturing banknotes
is particularly encouraging. In China, we won a large-scaleorder for a packaging paper machine.

Sales Voith Paper

Orders received Voith Paper€ in millions€ in millions

1,195
831

859

2010/1118

Voith Interim Report 20122011/12785

2010/112011/12

The order situation as regards consumables suffered fromthe fact that paper producers typically reduce inventories toa minimum in recessionary phases and delay restocking until
there is an upturn.

China, where we are continuing to promote our local presence and roots. In Europe, by contrast, we slightly reduced
the number of employees.
Profit from operations

Setting the strategic direction
Even if market conditions have recently intensified, the challenges arising from the structural change are not entirely
new. In the past two fiscal years, we initiated a series ofmeasures aimed at getting us on the right track. These programs are already making good progress and have hadsome initial effects. However, we will have to further step up
the pace in order to exploit potential for growth in the tissue,board, packaging paper and specialty papers market segments, and offset the long-term fall in demand in the graphic
grades segment. To mitigate cyclical fluctuations, we arestrengthening our product and service business. Solutions
that consume fewer resources remain a high priority for us,
as fiber supply, energy and water consumption are key challenges for paper manufacturers and are becoming increasingly important decision criteria when orders are awarded.

Voith Paper recorded a profit from operations in the first halfyear 2011/12, which at €16 million was noticeably down on
the previous-year figure and also lower than budget (previous year: €55 million, -72%). The sharp drop in the result isdue not only to a number of special effects, but also to highfixed costs, which cannot be adjusted to the lower sales
volumes immediately. The return on sales was 1.9% (previous year: 6.4%).

As at the end of the period under review on March 31, 2012,
we had 10,061 employees in the Voith Paper Group Divisionworldwide (September 30, 2011: 9,937, +1%). The majorityof the 124 new jobs were created in the growth region

Profit from operations Voith Paper

Employees Voith Paper€ in millions
9,937

10,061

55
16
2010/112011/122010/112011/12Full fiscal year

First half-year

Voith Interim Report 201219

III.4. Voith Turbo
Increased sales, orders received and profit fromoperations
In the first half year 2011/12, Voith Turbo performed in linewith our expectations and increased sales, orders received
and profit from operations.
Voith Turbo’s total sales came to €751 million in the period
under review, 7% up on the comparative previous-year ­figure(€701 million). Development varied in the individual divisions. The strongest division in terms of sales, Industry, saw
a d­ouble-digit percentage increase, driven by very goodoil & gas business. The Road division also grew. The highest growth rate was achieved in the Marine division, thanks
partly to the positive development of Inline Thruster business.
Only the Rail division saw a decrease in the period underreview. This was due to the effect of continued stagnation in
the high-speed segment in China.
Varying developments in the divisions
In the period under review, Voith Turbo won new orders totaling €781 million. The 3% growth in comparison to the firsthalf year 2010/11 (€761 million) was in line with our expecta-

tions. Orders on hand rose by €50 million to €1,348 million(September 30, 2011: €1,298 million) as at the end of theperiod under review on March 31, 2012.
The Industry division contributed significantly to orders
received during the period under review. In light of robust
development in almost all of the markets served by this division, orders on hand are positive overall. We achieved a particularly high level of orders received in the oil & gas business, where the increased oil price led to intense project
activity. In this connection, a major order for the Brazilian
mineral oil company Petrobras is worthy of mention. In theenergy sector, by contrast, there has been a fall in demand
from thermal power plants, particularly in China and India. In
the steel sector, there continue to be only a few projects
involving new plant. However, our business has been stable
due to the increasing share of business accounted for byservices.
Orders received in the Marine division increased considerably on the comparative period. A major order worth €20 million for Voith Schneider Propellers contributed significantly tothis growth.

Sales Voith Turbo

Orders received Voith Turbo€ in millions€ in millions

751

701

2010/1120

Voith Interim Report 20122011/12781

761

2010/112011/12Orders received fell in the Rail division. This was mainly due
to the continued delays affecting the expansion of the Chinese high-speed network. We do not expect the Chinese
government’s investment freeze to be lifted before the coming fiscal year. In the metro and tram segments, however,projects continue to be awarded in China, and we consider
ourselves to be well positioned for these. The Asia-Pacificmarkets outside China also continue to grow strongly. For
example, we won an order from Indian rail vehicle manufacturer BEML Ltd. for couplings for the new Jaipur Metro in thefirst half year 2011/12. In Europe, too, development remains
sluggish. During the period under review, however, Voith
Turbo won an order for the delivery of front noses and couplers for the 130 new ICx trains that Siemens is producing for­Deutsche Bahn.

reluctance to buy in recent years. In Europe, demand forcommercial vehicles is stagnating due to the recession in thesouthern European countries. Following strong growth inrecent years, the level of the commercial vehicle market in
China remains high. A sideways movement can be expectedin the main South American market, Brazil. The overall ordersituation in the commercial vehicle sector is stable in Europe
and the market is growing in China and India.

Orders received in the Road division were approximately at
previous-year level. Procurement activity in the European
bus market remains very subdued. In this connection, we
won an important order from China: In the future, the majority of buses in the rapid transit systems of the cities ofZhengzhou and Chengdu will be equipped with DIWA transmissions from Voith. The global commercial vehicle market
is growing at a moderate rate. Growth in NAFTA is being
driven by the need to replace vehicles as a result of theProfit from operations up 4%

Employees Voith Turbo

Profit from operations Voith Turbo

5,965

6,307

Voith Turbo continued to increase headcount in the first halfyear 2011/12 and had a total of 6,307 employees as at
March 31, 2012 (September 30, 2011: 5,965 employees).
This represents an increase of 6%. The new jobs were created in all four divisions. From a regional perspective, newhires focused on Germany and China.

Due to positive sales development, the earnings situation atVoith Turbo developed favorably in the first half year. Profit
from operations was up 4% to €77 million (previous year:€75 million). The return on sales was 10.3% (previous year:
10.7%).

€ in millions

77

75

2010/112011/122010/112011/12Full fiscal year

First half-year

Voith Interim Report 201221

IV. Net assets and financial position

IV.1. Balance sheet structure
Composition of assets and equity and liabilities
remains soundThe balance sheet of the Voith Group continues to be characterized by a healthy structure of assets and equity andliabilities. Total assets had fallen to €5,715 million in comparison to September 30, 2011 (previous year: €5,815 million).
There was a slight increase in non-current assets to €2,548
million (previous year: €2,477 million). Investment volume
remained at a high level, resulting in a marked increase inintangible assets and property, plant and equipment (total
increase of €75 million). By contrast, non-current securities
decreased by €28 million, in particular due to a measurement effect recognized directly in equity.
Current assets decreased by a total of €171 million to€3,167 million (previous year: €3,338 million). This is primarily due to factors including the reduction of cash and cash
equivalents of €197 million as a result of the high level ofinvesting activities and the reduction of financial liabilities.
For further details of the reduction in cash and cash equivalents, please refer to the cash flow statement and the explanation of the liquidity position in Section IV.2. By contrast,
inventories increased by €97 million. This development isspread relatively evenly across the Group Divisions. The
decrease in the assets held for sale (€-9 million) is explainedby the sale of the individual companies of the Voith Industrial
Services Group Division whose assets were disclosed under
this item in the previous year. For the same reason, the liabilities directly associated with assets classified as held forsale decreased by €7 million.

22

Voith Interim Report 2012

Non-current liabilities changed only marginally to €1,758 million (previous year: €1,762 million). In comparison to September 30, 2011, the long-term financing items of the Voith
Group have not changed substantially.
Current liabilities decreased by a total of €127 million to€2,639 million (previous year: €2,766 million). The current
bank liabilities included in this item decreased by €31 million.
Individual current liabilities were repaid. In order to root ourbusiness even more firmly in the Asian growth market, weare for the first time obtaining financing directly in China. The
newly placed syndicated credit facility in China allows us toborrow a total of 2.25 billion renminbi (which converts toaround €270 million) for future investments as well as forfinancing operating business on the Chinese market. The
first amounts were taken out in the period under review.
Trade payables decreased by €52 million, primarily due to a
reduction at Voith Paper (€-37 million). The decrease of €56
million in other financial liabilities mainly results from personnel-related liabilities. Other current liabilities rose by €39 million. This includes an increase in customer advances
received of €22 million.
The Voith Group had equity of €1,318 million (previous year:€1,287 million, +2.4%) as at March 31, 2012. The net income
positively affected the amount of equity. Equity was reduced
partly as a result of measurement effects in securities anddividend payments. The equity ratio improved to 23.1% (previous year: 22.1%).

IV.2. Liquidity

IV.3. Capital expenditure andR&D expenses

Improved cash flow from operating activities

Investment volume increased

The cash flow from operating activities amounted to €-23
million (previous year: €-31 million) in the period underreview. This represented an improvement on the first halfyear 2010/11, in particular due to a slight increase in working capital.

In the first half year 2011/12, Voith again invested substantially in strengthening productivity and in the strategic orientation of the Group. As announced, the investment volume
increased and came to €149 million in the period underreview (previous year: €103 million, +45%). The Voith Paper
and Voith Turbo Group Divisions saw the highest additions
to property, plant and equipment. The investment ratio compared with consolidated sales was 5.4% (previous year:
3.9%). From a regional perspective, investments focused on
China and Germany. The value of investments in the period
under review was once again significantly higher—in fact by€62 million—than depreciation and amortization of €87 million.

The change in cash flow from investing activities to €-141
million (previous year: €-105 million) is attributable to considerably higher investing activities than in the previous-year
period.
The cash flow from financing activities of €-30 million (previous year: €15 million) reflects the abovementioned repayment of current bank liabilities.
The total cash flow came to €-194 million (previous year:€-121 million). For more details of the development of cash
flow, please refer to the consolidated cash flow statement.
Net debt amounts to €180 million as at the cut-off date,
March 31, 2012 (previous year, September 30, 2011: €-52
million = net asset position).

Research and development is traditionally of great importance to us. In the period under review, the research anddevelopment expenses came to €134 million (previous year:€128 million, +4%). The ratio of R&D expenditure to sales
was therefore unchanged at 5%.

Cash flows€ in millions

First half-year First half-year
2011/122010/11

Cash flow from operating activities

-23

-31

Cash flow from investing activities

-141

-105

Cash flow from financing activities

-30

15

Total cash flow

-194

-121

Voith Interim Report 201223

V. Subsequent events
IV.4. Financial investments /participating interests
Two acquisitions in Norway
The Voith Industrial Services Group Division acquired 100%of the shares in Mongstad Elektro-Olje & Gass AS andMongstad Elektro-Industri & Energi AS (both Mongstad,
Norway) in the period under review. With the acquisition of
the two Norwegian companies, the Group Division is further
enhancing the position of its Energy-Petro-Chemicals division in Scandinavia. The two co-subsidiaries offer automation and electrical engineering services for the oil and gas
industry. The companies have been fully consolidated since
the fiscal year 2011/12.
In addition, Voith Industrial Services has increased its shareholding in Terne AS (Mongstad, Norway) from 60% to 100%.
The company has been included in full in the consolidated
financial statements since the fiscal year 2010/11.

Voith Paper is planning extensive restructuring measures in
the current fiscal year. These were passed by the Supervisory Board and Shareholder Committee on May 21, 2012.
These measures became necessary following the structuralchanges in the market described in this interim report, whichprimarily impact Europe with falling capacity utilization. The
Group Division is therefore planning to combine various
locations, which will involve a total of around 710 redundancies in Germany and Austria. The planned redundancies
will affect Voith Paper’s locations in Heidenheim (around
280 jobs), Ravensburg (around 300 jobs), Krefeld (around50 jobs) and St. Pölten (around 70 jobs). It will also be necessary to reduce headcount at other locations elsewherein Europe.The restructuring costs are expected to come toa high eight-digit figure. In line with its corporate culture,
the Company deems it important to structure the headcountreduction in as socially compatible a manner as possible
and to avoid redundancies for operational reasons as far as
possible.
The Voith Industrial Services Group Division has reorganized its aerospace segment within the Engineering Services
division with effect from April 2, 2012: within the scope ofa joint venture with P3 Ingenieurgesellschaft, the aerospacesegment was transferred completely to a joint company.
The partner P3 Ingenieurgesellschaft contributes P3 Digital

24

Voith Interim Report 2012

VI. Risks and opportunities­ ervices and its subsidiaries as well as additional activities
S
abroad to the joint venture. This pools the technical expertise of Voith with the project management strengths of P3.
Both shareholders hold 50% of the voting rights in the joint
venture. In questions of financial and corporate policy, Voith
has the majority of voting rights. This means that in the
future the company will be included in full in Voith’s consolidated financial statements. With budgeted total salesof around €100 million and approximately 900 employees,
P3 Voith Aerospace GmbH will be one of the largest engineering services providers for the aerospace sector in Germany.
There were no other significant events after the end of thefirst half year of fiscal 2011/12 (March 31, 2012).

Risk management oriented to increasing the valueof the Company
Entrepreneurial activity includes making decisions underconditions 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 Groupwide risk management system. The Voith Group operates
a distributed risk management system. It is designed toincrease the value of the Group and its companies by reducing potential risks and the probability of their occurring. At
the same time, the system is intended to produce a state ofequilibrium between correctly assessed risks and the exploitation of opportunities. Risk and quality management areinterlinked 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 the2011 annual report remain valid. At the same time, externalrisks have increased due to the global economic slowdown.
The danger of an oil price shock due to the possible escalation of the Iran conflict poses a new risk. If necessary, we will
respond to changing market conditions rapidly and decisively.

Voith Interim Report 201225

VII. Forecast

VII.1. Business environmentVII.2. Future development of theCompany

Generally positive economic expectations
overshadowed

Positive development to continue insecond half of the year

As at the editorial deadline for this interim report, the overallsituation was highly volatile and characterized by ongoing
uncertainty. We continue to expect the economic situation
to be modest in the second half of the 2011/12 fiscal year.
The International Monetary Fund (IMF) forecasts an increasein global gross national product of just 3.5% for 2012. This
trend will vary considerably from region to region. At 1.4%
in 2012, average growth in the industrialized countries, andabove all in Europe, can be characterized as weak and will
only start to pick up slightly in the coming years. Germany’s
growth rate is likely to fall to approximately 1% in 2012. In
the emerging markets, by contrast, an increase of 5.7% is
expected. The IMF predicts growth rates of 8.2% for China,
6.9% for India and 3.0% for Brazil. The moderate growthscenario from a global perspective is endangered by a rangeof risks in the industrialized countries. Voith is monitoringthese risks closely. If the situation were to escalate criticallyin the further course of the year, particularly in the event ofan uncontrollable default on the part of a euro-zone country or an oil price shock, this would have additional, as yet
unforeseeable consequences which would also impact
Voith’s business development. In the medium term, theacceptance and success of an ongoing process of reform in
the euro zone will be decisive factors.

On the basis of the six-monthly results, we expect the year
to continue positively for Voith: three out of four Group Divisions are expected to increase their sales and income in2011/12 as a whole. A profit from operations is planned in
all four Group Divisions.

In the Company’s opinion, four of the five markets served byVoith—energy, oil & gas, raw materials, and transport & automotive—will continue to be on track for moderate growth in
the current fiscal year. However, the nature and course ofthis trajectory will depend on the development of the global
economy as a whole, which is currently difficult to predict,as well as on the political environment. The paper market,
which has been going through a fundamental process oftransformation for some time, is not expected to recover inthe second half of the fiscal year.

26

Voith Interim Report 2012

We expect the positive developments at Voith Hydro tocontinue in the second half of the fiscal year. We continue
to expect sales and profit from operations to increase in
2011/12 as a whole. As already announced in the 2011
annual report, the unusually high volume of orders of thepast fiscal year cannot be sustained for the coming years.
In the current fiscal year, we expect the market to return
to normal, with the number of orders received stabilizing at
virtually the same level as before the crisis year 2008/2009.
Major projects cannot be expected during the current fiscal
year. In the medium term, we expect major new projects
above all in South America. In Europe and North America
there is potential for modernization. The improvement of thepumped storage market in Europe has been delayed slightly.
We also expect the positive business development at Voith
Industrial Services to continue in the second half of the year.
Looking at the fiscal year 2011/12 as a whole, we continue
to forecast satisfactory sales growth and an increasing profit
from operations. The Automotive division will make a particular contribution to growth. The Engineering Services andIndustries divisions are also expected to increase their sales.
From a regional perspective, growth impetus will comeabove all from Europe, Asia and Brazil. Due to the measures
introduced to improve earnings, the return on sales of theGroup Division is expected to continue to improve on theprevious years.

Voith Paper had to adjust its forecast for the current fiscal year: in contrast to when the annual report 2011 waspublished, we now expect sales to decrease. In particular,
the level of orders received in the current fiscal year will nolonger match the high previous-year figure and is subject
to considerable pressure on margins. This is due to market
expectations, which are less optimistic than at the end of
2011: in the mature ­markets of Europe and North America, there has been a significant drop in demand for graphic
grade papers which are required to print newspapers andbooks, for example. The full force of this structural effect,caused by the digitization of everyday life and the associated changes in consumer behavior, is being felt at present.
This is being exacerbated by an incipient downward cycle,
which has occurred earlier than expected. Both developments will have unfavorable effects on paper manufacturers’
investment decisions. Irrespective of the short- and mediumterm deterioration in the environment, we still expect global
paper consumption to increase in the long term. We anticipate major impetus from growth in particular from China,
India and South America. According to present planning, theprofit from operations of Voith Paper will be clearly positivein the current fiscal year, but will be down on the previousyear figure.

Voith Group grows and remains profitable
Despite the revised forecast for Voith Paper, we expect aslight increase in sales for the Voith Group as a whole inthe 2011/12 fiscal year. As announced in the annual report
2011, orders received will not match the extraordinarily highprevious-year figure. This is due on the one hand to thenormalizing effect in the hydro power market, which wasannounced in the 2011 annual report—the previous year
was characterized by an unusually large number of major
projects—and on the other hand to the decrease in the areaof graphic grade papers, which had not been expected on
this scale. Nevertheless, we expect orders received to significantly exceed the figure for the 2009/10 fiscal year. Both theoperational result and net income for the year will be clearly
positive. Contrary to expectations at the end of the fiscal
year, however, they will not match the previous-year figures.
The investment volumes budgeted for the current fiscal year
are financed using cash flow from operating activities. No
major changes to the financing structure are planned.

We continue to expect sales and profit from operations toincrease at Voith Turbo in the current fiscal year. Growth will
be driven by the Industry division. In the Marine division,
sales are expected to remain stable at the previous-yearlevel. The Road division is expected to see slightly positive
development in the year as a whole. Due to the investment
freeze in China’s high-speed rail network, we expect the Raildivision to see a slight drop in sales in the year as a whole.
As announced in the 2011 annual report, orders received
at Voith Turbo are expected to match the high level of theprevious year.

Voith Interim Report 2012

27

28

Voith Interim Report 2012

Group interim financial statements
for the period from October 2011 through March 2012

Voith Interim Report 201229

Consolidated statementof incomefor the period from October 1, 2011 to March 31, 2012
€ in thousands

2011-10-01 to 2012-03-31

2010-10-01 to 2011-03-31

2,742,386

2,629,305

78,747

79,781

2,821,133

2,709,086

143,365

185,886

Cost of material-1,171,133-1,094,548

Personnel expenses-1,032,155-993,827

Sales
Changes in inventories and other own work capitalized

Total output

Other operating income

Depreciation and amortization-86,871-81,362

Other operating expenses-534,846-547,608

Operational result before non-recurring result

139,493

177,627

Non-recurring result-10,6480

Operational result

128,845

177,627

Share of profits from associates

4,944

2,978

Interest income

6,626

10,461

Interest expenses-43,748-48,421

Other financial result

85

531

Income before taxes

96,752

143,176

Income taxes-34,248-48,468

Net income

62,504

94,708Net income attributable to shareholders of the parent company

52,53585,718Net income attributable to holders of non-controlling interests

9,969

8,990

30

Voith Interim Report 2012

Consolidated statement ofcomprehensive income
for the period from October 1, 2011 to March 31, 2012
€ in thousands

2011-10-01 to 2012-03-31

2010-10-01 to 2011-03-31

Net income

62,504

94,708

Gains/losses (-) on available-for-sale financial assets-35,435

56,324

Gains/losses (-) on cash flow hedges-1,424

4,250

Gains/losses (-) on currency translation

11,586-7,452

Gains/losses (-) on net investments in foreign operations

2,274

343

0

234

Tax on other comprehensive income

10,368-1,516

Other comprehensive income-12,631

52,183

Total comprehensive income

49,873

146,891

Total comprehensive income attributable to shareholdersof the parent company

39,451

139,189

Total comprehensive income attributable to holders
of non-controlling interests

10,422

7,702

49,873

146,891

Share of associates in other comprehensive income

Voith Interim Report 201231

Consolidated balance sheet
as at March 31, 2012
Assets€ in thousandsA.

Non-current assets

I.

Intangible assets

II.

Property, plant and equipment

2012-03-31

2011-09-30

739,812718,057

1,215,028

1,162,045

III.

Investments in associates

35,227

29,233

IV.

Securities

234,082

261,602

V.

Other financial assets

34,356

31,416VI.

Other financial receivables

89,11593,204

VII. Other assets

50,06041,738

VIII. Deferred tax assets

150,102140,129

Total non-current assets

2,547,782

2,477,424

B.

Current assets

I.

Inventories

II.

Trade receivables

919,549

822,079

1,147,081

1,150,432

III.

Securities

35,53449,944

IV.

Income tax assets

77,862

79,109V.

Other financial receivables

95,924131,414VI.

Other assets

159,981

167,582

729,815927,140

3,165,746

3,327,700

1,270

10,054

Total current assets

3,167,016

3,337,754

Total assets

5,714,798

5,815,178

VII. Cash and cash equivalents

VIII. Assets held for sale

32

Voith Interim Report 2012

Equity and liabilities€ in thousands

2012-03-31

2011-09-30

A.

EquityI.

Issued capital

120,000

120,000

II.

Revenue reserves

945,753

901,450

III.

Other reserves

112,253

125,337

IV.

Profit participation rights

6,600

6,600

1,184,606

1,153,387

Equity attributable to shareholders of the parent company
V.

Profit participation rights

91,80091,800VI.

Other interests

42,004

42,144

133,804

133,944

1,318,410

1,287,331

Equity attributable to holders of non-controlling interests

Total equity

B.

Non-current liabilities

I.

Provisions for pensions and similar obligations

426,945423,895

154,390

155,347

2,033

7,263

II.

Other provisions

III.

Income tax liabilities

IV.

Bonds, bank loans and other interest-bearing liabilities

942,055934,292

V.

Other financial liabilities

23,23528,130VI.

Other liabilities

83,36582,362

VII. Deferred tax liabilities

125,816

130,927

Total non-current liabilities

1,757,839

1,762,216

26,52525,679C.

Current liabilities

I.

Provisions for pensions and similar obligations

II.

Other provisions

287,583

303,784

III.

Income tax liabilities

105,658

109,905

IV.

Bonds, bank loans and other interest-bearing liabilities

296,180

327,084

V.

Trade payables

535,442

587,805

VI.

Other financial liabilities

269,854

325,897

1,117,307

1,078,690

2,638,549

2,758,844

0

6,787

Total current liabilities

2,638,549

2,765,631

Total equity and liabilities

5,714,798

5,815,178

VII. Other liabilities

VIII. Liabilities directly associated with the assets classified as held for sale

Voith Interim Report 201233

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

Issuedcapital

Revenue
reserves

Available-for-salefinancial assets

Cash flow
hedgesCurrencytranslation

2011-10-01

120,000

901,450

95,339-1,13838,685

Net income

52,535

Other comprehensive income
Total comprehensive income

0

Allocation of reserves to profit
participation rights

52,535-25,155-917

11,356-25,155-917

11,35670,184-2,05550,041-4,594

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

120,000

945,753

Equity attributable to shareholdersof the parent company€ in thousands

Issuedcapital

Revenue
reserves

Available-for-salefinancial assets

Cash flow
hedgesCurrencytranslation

2010-10-01

120,000

810,467

24,164-5,53449,42956,3032,960-6,00556,3032,960-6,00580,467-2,57443,424

Net income

85,718Other comprehensive income
Total comprehensive income

085,718

Allocation of reserves to profit
participation rights-4,587

Acquisition of non-controlling interests-1,112

Share of income attributable to profit
participation rights
Dividends-16,000

Contributions from holders of
non-controlling interests
Non-controlling interests—put options-57

Other adjustments
2011-03-31

34

Voith Interim Report 2012

-3,312120,000

871,117Equity 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

9,969

9,969

62,50452,535
1,632
1,632-13,084
039,451

0363-4,231

4,231

-170
-363

-363

6,600

453

-12,631

10,422

49,8734,231

0-1,507-1,507-1,677-4,231-4,594-2,651-2,651-2,651-4,231

0-5,917453
10,422

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

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

Profit participationrights

Total

Profit participationrightsOtherinterests

Total

Total
Equity-7,4586,600

997,668

76,80032,788109,588

1,107,256

8,990

8,990

94,708-1,288-1,28852,183

7,702

7,702

146,891

85,718213
213

53,4710

139,1890363-4,224

4,224-1,112
-363

-363

6,600

0

831

-281

-4,224-4,587-3,261-3,261-19,261-4,224-16,000-7,245

4,224
831

0

1,190

1,190

1,190

-57

-3,986-3,986-4,043-3,312

1,181

1,181

-2,13136,445113,245

1,225,034

1,111,789

76,800Voith Interim Report 201235

Consolidated cash flow statement€ in thousands

2011-10-01 to 2012-03-31

2010-10-01 to 2011-03-31

Income before taxes

96,752

143,176

Depreciation and amortization

87,11381,657

Interest expenses/income

37,12237,960

Other non-cash items

1,959-2,929Gains (losses) from the disposal of property, plant, equipment
and intangible assets-371-4,522

Gains (losses) from investments

-168

-671

Changes in other provisions and accruals-58,476-57,283

Change in net working capital-136,098-190,565*Interest paid

-11,980-13,139*

5,323

9,456

Interest received
Dividends received

831

667

Tax paid-45,309-34,782

Cash flow from operating activities-23,302-30,975

Investments in property, plant, equipment and intangible assets-148,646-102,506

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

9,152

10,123

Investments in financial assets-5,502-11,236

Subsequent payments on purchase price of previous acquisitions

0-63

Acquisitions of subsidiaries-7,139-9,878

Sale of subsidiaries

2,792

0

681

271

Changes in investments in securities

7,400

7,959

Cash flow from investing activities-141,262-105,330-7,245-23,848

683

1,190

Acquisition of non-controlling interests-1,677-281

New bonds, banks loans and overdrafts

65,98923,296

Repayment of bonds, banks loans and overdrafts-91,141-22,758

4,356

37,451

Cash flow from financing activities-29,035

15,050Total cash flow

-193,599-121,255-3,726-4,849Cash and cash equivalents at the beginning of the period

927,140

1,175,359

Cash and cash equivalents at the end of the period

729,815

1,049,255

Proceeds from the disposal of financial assets

Dividends paid
Contributions from holders of non-controlling interests

Changes in other interest-bearing financial receivables and liabilities

Exchange rate movements, valuation changes andchanges in the consolidated group* Previous year restated (reclassification of accrued interest).

36

Voith Interim Report 2012

Notes to the interim
consolidated financial statements

GeneralVoith 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.
The interim consolidated financial statements prepared byVoith are published in the e-Bundesanzeiger [Electronic German Federal Gazette] in German.
As a domestic issuer of debt securities pursuant to Sec. 2 (1)Sentence 1 German Securities Trading Act (WpHG), Voith
must prepare a half-year financial report in accordance withthe provisions of Sec. 37 w WpHG.

Basis of the interim consolidated
financial statements
Accounting policies
The interim condensed consolidated financial statements forthe first half of the fiscal year 2011/12 were prepared inaccordance with the International Financial Reporting Standards (IFRS) and correspond to the provisions of IAS 34(Interim Financial Reporting).
The unaudited interim consolidated financial statements do
not include all of the information and disclosures required forconsolidated financial statements and must therefore beread in conjunction with the consolidated financial statements for the year ending September 30, 2011. The interim
financial statements are presented in euro.
Consolidated GroupThe following companies are included in the consolidated
financial statements:
2012-03-31 2011-09-30
Voith GmbH and
its fully consolidated subsidiaries:
Germany

67

68

Other countries

148

151

Total fully consolidated companies

215

219

Germany

44

Other countries

12

11

Total associates accounted for using
the equity method

16

15

Associates accounted
for using the equity method:

Voith Interim Report 201237

Accounting policies
Essentially the following fully consolidated companies were
included for the first time in the period under review:•

Voith Turbo Marine SteamTrac B.V., Twello, Netherlands•

Mongstad Elektro-Olje & Gass AS, Mongstad, Norway•

Mongstad Elektro-Industri & Energi AS, Mongstad, Norway• oith Engineering Personnel Services GmbH & Co. KG,
VChemnitz

In total, the number of fully consolidated companies decreasedon account of mergers of companies within the Group anddue to the sale of companies.
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. Fluid Logic Systems Private ­Limited,
Ahmadabad, India, in which Voith holds a 50% stake, wasincluded for the first time in the period under review.

The accounting policies used in the consolidated financial
statements as at September 30, 2011 were adopted in theseinterim condensed consolidated financial statements withthe following exceptions:
Income tax expense in the interim financial statements
The income tax expense is calculated in the interim consolidated financial statements for the entire fiscal year based on
the expected income tax rate.
Changes in accounting policies due to first-time
application of revised and new IFRSs and IFRICs
In the first half of the fiscal year 2011/12 the following revised
IFRS and IFRIC were adopted for the first time:
Amendment to IAS 24: “Related Party Disclosures”
The amendments to IAS 24 clarify the definition of a related
party and of reportable transactions. Because of the clarified
definition, information on relationships with non-controllinginterests will no longer be provided. There are no extended
reporting duties in these interim financial statements.
Amendment to IFRIC 14: “Prepayments of a Minimum
Funding Requirement”
The amendment applies when an entity is subject to minimum funding requirements and pays the amounts inadvance. The amendment now allows an entity to recognize
the economic benefit from such prepayment as an asset.
The amendment currently does not have any impact on the
net assets, financial position and results of operations in theVoith Group.

38

Voith Interim Report 2012

Amendments to IAS 1: “Presentation of Financial
Statements”
The amendments clarify that the disclosures required onother comprehensive income can either be shown directly inthe statement of changes in equity or the notes to the consolidated financial statements. At Voith, these disclosures
are currently made in the notes to the consolidated financial
statements.
Amendments to IAS 34: “Interim Financial Reporting”
Additional disclosures in interim financial statements are
required for changes in the business environment or economic conditions that affect the fair value of financial assets
and liabilities, for changes in the classification pursuant to
IAS 39 of financial assets and for changes between different
levels in the fair value hierarchy pursuant to IFRS 7. Basedon these amendments, there are no further disclosure
requirements in these interim financial statements.

Part of the intangible assets purchased, e.g., the know-how
of the employees, cannot be recognized, as the recognition
criteria are not met. Apart from that, the goodwill stems fromthe aforementioned expected positive effects for the Voith
Industrial Services Division. The goodwill is not tax deductible.
The following amounts resulted for the combined assets andliabilities purchased with the two companies:
Balance sheet item
€ in thousands
Intangible assets

Fair value at timeof acquisition
2,418

Other non-current assets

186

Inventories

516

Receivables

3,920

Other assets

156

Cash and cash equivalents

3,424

Provisions-265

Liabilities-3,683Carrying amount

6,672

Acquisition of Mongstad Elektro, Norway

Goodwill

3,891

The Voith Industrial Services Group Division acquired all of
the interests and voting rights in the following companies
effective December 31, 2011:

Purchase price of the interests
purchased

10,563

Cash and cash equivalents-3,424

Cash outflow

7,139

Business combinations in fiscal 2011/12•

Mongstad Elektro-Olje & Gass AS, Mongstad, Norway•

Mongstad Elektro-Industri & Energi AS, Mongstad, Norway

The acquisition of the two companies serves to round off thecustomer-geared offering of electrical and mechanical services on the energy and petrochemical market in Norway.

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 purchase price adjustments are planned.
The fair value of the receivables purchased corresponds totheir contractual gross amount. A remainder of €20 thousand
was still open at the balance sheet date, which is expected
to be paid in full.

Voith Interim Report 201239

The acquisition-related costs amounted to €276 thousand(recognized as other operating expenses).
In fiscal 2011/12, the two companies contributed sales totaling €3,969 thousand and a net loss of €179 thousand to
the Voith Group’s consolidated statement of income. If thebusiness combination had already taken place on October 1,
2011, the Group’s sales would have been €3,692 thousandhigher. The contribution to the Group’s net income for theyear would have been €3 thousand.

Business combinations after the reporting
date of March 31, 2012
Business combination with the aerospace engineering
activities of P3 Ingenieurgesellschaft
Effective April 2, 2012, Voith Industrial Services and P3 Inge­
nieurgesellschaft bundled their engineering expertise in theaerospace industry. Under an agreement, the aerospaceengineering activities of Voith Industrial Services and P3
were transferred into a joint venture.
The new joint venture resulted through an initial issue of new
interests by the existing Voith Engineering Services Holding
GmbH. These new interests were subscribed by the P3
shareholder in return for the contribution of the subsidiary P3Digital Services GmbH with its subsidiaries. After this transaction, Voith Industrial Services holds 40% in Voith Engineering Services Holding GmbH and the P3 shareholder holds
60% of the interests. Individual further aerospace engineering activities of the P3 shareholder performed by subsidiaries
abroad were transferred to existing subsidiaries of Voith
Engineering Services Holding GmbH by way of asset or
share deals.

40

Voith Interim Report 2012

Both parties hold 50% of the voting rights in the joint venture. In terms of the financial and operating policies, Voith
has the majority of the voting rights and thus exercises control as defined by IAS 27.
The fair value of the business contributed by the P3 companies and thus the value of the interests issued amounts to€37,009 thousand. This value was determined by an external appraiser pursuant to IDW S1.
Further disclosures pursuant to IFRS 3, B64 are not yet possible, as first-time recognition of the business combination is
not complete on account of the very recent nature of themerger.

Acquisition in fiscal 2011/12 of further
interests in entities over which the Groupalready has control
The Voith Industrial Services Group Division acquired a further 40% of the interests in Terne AS, Mongstad, Norway, inthe first half of fiscal 2011/12. The Group therefore owns
100% of the interests and voting rights of that company. The
purchase price for the interests was €1,677 thousand.

Sale of subsidiaries
Due to the sale of subsidiaries in the period under review, apurchase price of €2,792 thousand and a gain on deconsolidation of €1,887 thousand were recorded. The assets
and liabilities disposed of by the Group were reported asheld for sale as at the last reporting date; the respective balance sheet items are thus reduced as at the current reporting date.

Notes on
segment reporting

The structure of the segments and the methods used to calculate the segment information have remained unchanged
since September 30, 2011.
As part of the calculation of operational result, the following profit/loss components are taken into consideration
unchanged compared to the last consolidated financial statements:
Operating interest income
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 tofinance inventories and PoC receivables.

Other adjustments
Other adjustments include effects which, based on theiroperating character, are normally shown as other operating
income and other expenses in the consolidated statement ofincome. In determining the operational result, these adjustments are eliminated as exceptional effects so as to facilitate
the assessment of the operating activities by segment.
The capital employed on the reporting date March 31, 2012is an average value derived from the values as at the end of
the period under review and as at the reporting date of theprevious period under review. The capital employed presented as a comparative figure as at September 30, 2011 isan average value derived from the values as at the end of
the period under review September 30, 2011, the reporting
date for the previous six-monthly financial statements and as
at the end of the previous period under review September 30, 2010.

Voith Interim Report 201241

Segment information by business segment
Voith Hydro€ in millions

Voith Industrial Services

Voith Paper

2011/122010/112011/122010/112011/122010/11

645

576

506

489

831

859

4

3

14

19

15

17

Total segment sales

649

579

520

508

846

876

Profit from operations

47

38

15

17

16

55

Capital employed

525

529

187

178

892

819

5,568

5,345

17,784

18,464

10,061

9,937

External sales
Sales with other segments

Employees2)

1)

Subtotal for Voith Hydro, Voith Industrial Services, Voith Paper and Voith Turbo

2)

Statistical headcount as at the reporting date compared with September 30, 201142

Voith Interim Report 2012

Voith Turbo

Total Core Business1)

Reconciliation

Total

2011/122010/112011/122010/112011/122010/112011/122010/11

751

701

2,733

2,625

9

4

2,742

2,629

2

1

35

40

-35

-40

0

0

753

702

2,768

2,665

-26

-36

2,742

2,629

77

75

155

185

3

12

158

197

770

734

2,374

2,260

136

123

2,510

2,383

6,307

5,965

39,72039,711

1,026

980

40,746

40,691

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 fromoperations to income before taxes.
Reconciliation of profit from operations to income
before taxes:€ in millions

2011/122010/11

Profit from operations

158

197

Operating interest income

-16

-16

Other adjustments-2-4

Non-recurring result

-11

0

5

3

-37

-38

Other financial result01Income before taxes

97

143

Share of profits from associates
Interest result

Voith Interim Report 201243

Notes to the statement of income
and the balance sheet

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

Notes to the statement of income
Other operating income€ in thousands

2011/122010/11

Income from the utilization ofcontract-specific provisions

55,13551,649

Income from the reversal of provisions

31,40541,028Foreign exchange gains

18,35250,054

Recovered bad debts

7,135

4,846

Gains on the disposal of intangible assets
and property, plant and equipment

1,947

5,164

Other income

29,39133,145

143,365

185,886

Other operating expenses€ in thousands

2011/122010/11

Increase in provisions

94,86497,094

Other selling expenses

175,188

171,410

Other administrative expenses

142,383

144,872

Foreign exchange losses

33,23055,359Rent for buildings and machinery

36,15035,323

Bad debt allowances

2,246

4,288

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

1,577

642

Other expenses

49,20838,620534,846547,608

Non-recurring result
The non-recurring result of €-11 million (previous year: €0)
includes measures to adjust personnel capacities. These
affect the Voith Industrial Services and Voith Paper Divisions
to the tune of €-3 million and €-8 million, respectively. The
non-recurring result mainly contains personnel expenses.
Other financial result€ in thousands

44

Voith Interim Report 20122011/122010/11

Gains from investments

168

671

Impairment of securities and otherinvestments

-242

-295

Sundry other financial result

159

155

85

531

Notes to the balance sheet
Securities

Other financial liabilities/other liabilities

Current and non-current securities changed as a result offair value measurements without an effect on income for thecorresponding securities held for sale as well as throughpurchase and sale transactions. More detailed information
is provided in the statement of comprehensive income andthe cash flow statement.

Non-current other financial liabilities and other liabilities were
down just slightly in total to €107 million (previous year:€110 million).

Other financial receivables and other assets

The €56 million drop in current other financial liabilities stems
in the main from personnel-related liabilities. Current other liabilities rose by €39 million. This figure includes a €22 million
increase in prepayments received from customers.

The drop in non-current other financial receivables by €4
million to €89 million (previous year: €93 million) is mainly attributable to the changes in derivative financial instruments.
Current other financial receivables fell to €96 million (previous year: €131 million). This figure includes the decline inreceivables from non-controlling interests of €14 million.
The rise in non-current other assets and the fall in current
other assets are both due to changes in tax receivables.
Bonds, bank loans and other interest-bearing liabilities
The non-current bonds, bank loans and other interestbearing liabilities rose to €942 million (previous year: €934
million), mostly on the back of the increase in liabilities tonon-controlling interests. The current bonds, bank loans
and other interest-bearing liabilities declined to €296 million­(previous year: €327 million), principally as a result of the fallin non-current bank loans.

Voith Interim Report 201245

Other notes

Contingent liabilities and contingent assets
As at March 31, 2012, there were no material changes compared with the contingent liabilities and contingent assets
described in the 2010/11 consolidated financial statements.

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

2012-03-31 2011-09-30

Liabilities to family shareholders

58,904

67,906

Receivables from associates

1,333

552

277

274

Receivables from other investments,
including advances paid

12,015

11,632

Impairment of receivables from otherinvestments

-58

-9

25,14529,816

183

4

3,863

3,189

Liabilities to associates

Liabilities to other investments, including
advances received
Receivables from the parent company
Liabilities to the parent company

46

Voith Interim Report 2012

€ in thousands

2011/122010/11

Services purchased from associates

104

286

Services rendered to associates

310

9,768

Services purchased from otherinvestments

2,513

714

Services rendered to other investments

11,523

12,256

Services purchased from the parent
company

7,049

5,687

396

227

Services rendered to the parent company

Guarantees of €11,836 thousand (previous year: €12,146
thousand) and €53 thousand (previous year: €2,177 thousand) were given in favor of one associate and other investments, respectively.

Events after the period under review
Voith Paper is planning extensive restructuring measures in
the current fiscal year. These were passed by the Supervisory Board and Shareholder Committee on May 21, 2012.
These measures became necessary following the structuralchanges in the market described in this interim report, whichprimarily impact Europe with falling capacity utilization. The
Group Division is therefore planning to combine various
locations, which will involve a total of around 710 redundancies in Germany and Austria. The planned redundancies
will affect Voith Paper’s locations in Heidenheim (around
280 jobs), Ravensburg (around 300 jobs), Krefeld (around50 jobs) and St. Pölten (around 70 jobs). It will also be necessary to reduce headcount at other locations elsewherein Europe.The restructuring costs are expected to come toa high eight-digit figure. In line with its corporate culture,
the Company deems it important to structure the headcountreduction in as socially compatible a manner as possible
and to avoid redundancies for operational reasons as far as
possible.

For information on the business combination with P3, pleaserefer to the section “Business combinations after the reporting
date of March 31, 2012”.
There were no other material subsequent events.

Heidenheim, May 23, 2012
Voith GmbH
The Board of Management
Dr. Hubert Lienhard
Dr. Hermann Jung
Dr. Hans-Peter Sollinger
Martin Hennerici
Bertram Staudenmaier
Dr. Roland Münch

Voith Interim Report 201247

Responsibility statement

We assure to the best of our knowledge that, in accordancewith the accounting policies applicable for the interim financial reporting, the interim consolidated financial statements
give a true and fair view of the assets, liabilities, financial
position and results of operations of the Group and that theinterim group management report gives a true and fair viewof the business development including the result and situation of the Group and also describes the significant opportunities and risks of the anticipated development of the Groupfor the rest of the fiscal year.

Heidenheim, May 23, 2012
Voith GmbH
The Board of Management
Dr. Hubert Lienhard
Dr. Hermann Jung
Dr. Hans-Peter Sollinger
Martin Hennerici
Bertram Staudenmaier
Dr. Roland Münch

48

Voith Interim Report 2012

Significant events

March 2012
Voith wins the Safety Award from ExxonMobil Production
Deutschland GmbH, Germany’s largest producer of naturalgas. The accolade recognizes the outstanding safety efforts
of Voith Industrial Services as supplier of the year 2011. The
Voith team provided 19,000 labor hours at Exxon Mobil without a single accident.
Voith Industrial Services further enhances its successful
cooperation with Bombardier Transportation. The order forthe development of the Do-IC double-deck coach has been
expanded to include complete development of an intermediate coach for use by Deutsche Bahn. The order volume is€2.75 million.
A convincing overall concept, including industrial safetymeasures, secured Voith Industrial Services a three-yearorder from building technology company Max Frank.
Ford Brazil awards Voith a major order for its plant in Camaçari.
The project, with a term of three years and a total volume of€9 million, comprises multiple services, such as maintenanceof building technology, a landscaping contract (including
plant protection), as well as preventive and reactive maintenance and repair for the production assembly line, and facility management at the Ford plant.

With a propulsion system comprising five Voith Schneider
Propellers, the North Sea Giant is named ship of the year by
Offshore Support Journal. The ship, operated by North Sea
Shipping AS, Norway, is one of the largest and most powerful support vessels.
Voith is awarded an order for a total of four Voith Schneider
Propellers by Ferguson Shipbuilders in the UK for use in theworld’s first hybrid ferries. Each of the ferries will beequipped with two Voith Schneider Propellers for Caledonian
Maritime Assets. The propulsion system for the ferries
includes a combination of a diesel engine and lithium batteries. The ferries will go into service in the waters off the coastof Scotland from summer 2013 onwards. The hybrid concept reduces CO2 emissions by up to 20 percent.
Indian rail vehicle manufacturer BEML tasks Voith with supplying couplings for ten train sets destined for the new
Jaipur Metro. For the first time, Voith will provide all therequired couplings from a plant in Hyderabad.

Voith receives a major order from India for specialty paper
machines: A complete production line with two specialty
paper machines will be set up in Mysore for the productionof banknote paper.
In India, Daimler Buses equips the Mercedes-Benz City Bus
with DIWA transmissions from Voith as standard. The
12-meter-long bus is a newcomer to the Indian market andis intended to provide mobility primarily in conurbations.

Voith Interim Report 201249

February 2012
In Shanghai, Voith agrees its first syndicated credit facility inlocal currency with a consortium of international and local
banks. The volume converts to around €270 million with aterm of five years. Further investments aimed at enhancing
Voith’s position on the Chinese market are planned with thefinancing directly in the country.

Voith further expands its cooperation with Porsche Leipzig
GmbH which was initiated in 2010. The services ordered on
the basis of the existing framework agreement for maintenance of the production plant, technical facility management
and planning for plant expansion come to some €80,000 per
month.

The contract to upgrade the Ruskin hydro power plant in
Canada goes to Voith. The order includes modernizing three
38 MW Francis turbine generators.

The Japan Machinery Federation honors Voith Paper with
the Energy Conserving Machinery Award 2011. The accolade is awarded annually for products that make major contributions to energy savings in industrial machines. The
selection committee’s decision recognizes the systematicdevelopment of DF Coat (a coating unit), which uses 80%
less energy than its predecessor.

Voith lands a major order from Turkish utility Kalehan Energy
Production for the Beyhan-1 hydro power plant in eastern
Turkey. The order, which is worth €39 million, includes delivery of three new 235 MVA vertical synchronous generators,
four new static excitation systems, and four new monitoring
systems.
The Turkish Akköprü hydro power plant goes online. Voithdelivered two 60 MW Francis turbines including governors,
as well as the associated generators and automation system.
The new pumped storage unit at the Rodund II pumped
storage power plant in Vorarlberg, Austria, goes into operation. The 295 MW pump-turbine and the 345 MVA motorgenerator are from Voith. The contract, worth €40 million,
was completed in only 22 months from the signing of thecontract through to final commissioning.
General Electric International awards Voith Industrial Services
the order for the major inspection of a gas turbine, including
all follow-up orders for the turbines at envia Therm’s gas andsteam turbine power plant in Bitterfeld, Germany.

50

Voith Interim Report 2012

Voith Turbo enters into a cooperation agreement with the
SCHRAMM group and its subsidiary NavConsult AWSS. The
aim of the agreement is to jointly market ship designs, particularly for wind farm service vessels. In addition to vessel
design, Voith will supply the propulsion systems.
Turbine Transfers, UK, awarded Voith its first Voith Linear Jet
order for a wind park support vessel. The innovative drive is
to be used in a ship designed by BMT Nigel GEE, UK.
Siemens and its partner Bombardier are manufacturing 130
long-distance ICx trains on behalf of Deutsche Bahn and aresourcing 260 front noses, 260 automatic couplers, 2,700
semi-permanent couplers and 260 adaptor couplers from
Voith. Deutsche Bahn intends to gradually replace its oldIntercity and Eurocity fleet with the new trains from 2016
onwards.

January 2012			

December 2011

Voith receives a major order worth €24 million from Russia.
Voith Hydro is delivering runner replacement for six 255 MW
vertical Francis turbines and associated equipment for thehydro power plant in Bratsk, eastern Siberia. The Bratsk
hydro power plant is among the largest and most importantin Russia.

Voith signs a contract with long-term customer RusHydro
for the modernization of the Miatlinskaya hydro power plantin southern Russia. The scope of supply comprises two
145 MW Kaplan turbines and the turbine governors. The
order has a total value of €22 million.

Voith is equipping the Pouzin power plant in Lyon with a
6.6 MW Kaplan pit turbine, generator, and electrical andmechanical auxiliaries for French energy supplier Compagnie
Nationale du Rhône. The power plant is scheduled to go into
operation in January 2015.
Voith received an order worth some €10m from VW Audi in
China: Voith Industrial Services will handle automation of the
body line and the side parts line in the body assembly shopat the new FAW-VW plant in Foshan, China.
Voith acquires the Norwegian companies Mongstad Elektro
Olje & Gass AS and Mongstad Elektro Industri & Energi AS,
and increases its shareholding in Terne AS to 100%. By
doing so, Voith Industrial Services has further expanded its
Energy-Petro-Chemicals division in Scandinavia.
Voith Industrial Services provides E.ON Kernkraftwerk GmbHwith flexible dismantling and restoration activities for system
and infrastructure components at the Stade nuclear power
plant. Tasks include decontaminating and dismantlingmechanical components. The project will be completed at
the end of 2012.
Voith lands a major order worth €3.92 million from China. On
behalf of rail vehicle manufacturer Changchun Railway Vehicles, Voith Industrial Services is developing the platform fora new low-floor tram using the latest European standards.
The five-part tram, featuring a totally new design and bogie,
is being built initially for the Chinese market. Voith Turbo issupplying multiple components for this order.

At the Ilha Solteira power plant, the second of a total of four
generators that Voith is modernizing for Brazilian energy provider Companhia Enérgetica de São Paulo goes into operation.
The Swiss Kraftwerke Vorderrhein AG’s Sedrun power plantis going back online following modernization of two 26 MW
Pelton turbines, including governor and control system by
Voith.
Voith lands a major order from Asia: The Singoli Bathwari
power plant in the north Indian state of Himachal Pradesh
will be fully equipped by Voith Hydro by the end of 2015.
Fujian Liansheng Paper in China tasks Voith with deliveringa PM 8 paper machine. The machine will produce some
600,000 metric tons of grayback coated duplex board andwhite-top linerboard per year at the new Longhai plant inZhangzhou City. The machine is scheduled to be commissioned at the end of 2013.
SCA Hygiene Products GmbH officially commences construction work for the new premium tissue machine from
Voith Paper in Kostheim with the symbolic ground-breaking
ceremony. The TM 5 will be delivered in a comprehensive
Process Line Package design. It is scheduled to be commissioned in spring 2013.
Voith for the first time delivers not only the propulsion systembut also the basic design of a Voith Water Tractor. The three
existing Voith Water Tractors at the port of Haifa, Israel, arejoined by a 70-metric-ton tug jointly designed with Spanish
shipyard UNV. Propulsion is provided by two Voith Schneider
Propellers.

Voith Interim Report 201251

November 2011
In the northwest of Canada, energy supplier Hydro-Québec
puts the Eastmain 1A power plant, which was equipped byVoith, into operation. Voith Hydro delivered the turbines andgenerators as well as the automation system.

Important orders from China: In the future, the majority ofbuses in the bus rapid transit systems of the cities ofZhengzhou and Chengdu will be equipped with DIWA transmissions from Voith.

Voith Industrial Services assumes responsibility for production equipment maintenance, providing support for the
PTCED (pretreatment cathodic electrodeposition) area for
Indian automaker Bajaj Auto in Pune. The contract has aterm of three years.

Voith expands the Voith Radial Propeller portfolio. A second
size of the reliable and powerful vessel propulsion systems
is now being deployed, mainly in semi-submersible platforms for oil and gas extraction as well as in special-purpose
ships for wind farm construction.

The EADS aerospace group again names Voith Industrial
Services as preferred supplier for engineering services. Thismeans that Voith is among the select 20 companies worldwide that are taken into consideration when invitations totender are issued.

One million Hydrodamps delivered. The torsional vibration
damper from Voith has made a name for itself above all in
the agricultural machinery sector, and has been installed intractors made by nearly all major manufacturers worldwide
for more than 20 years.

Voith Turbo signs two new contracts from Poland for thedelivery of a total of 10 Voith-Powerpacks. Eight of the drive
systems for the customer PESA are for the first time being
delivered with a new Voith horizontal R6 diesel engine.
The Aquatarder SWR from Voith Turbo receives the 2012
European Transport Prize for Sustainability. The latest retarder
won out in the commercial vehicle components category
despite strong competition. The award, presented by publishing house Huss-Verlag, covers 11 categories and honors
companies from the transport sector that combine commercial success with social responsibility and eco-friendly activities in an exemplary way.
Voith Turbo wins several orders for the Voith Inline Thruster(VIT), thereby securing its world-leading position in the rim
drive thruster segment. The most powerful current Voith
Inline Thruster with power of 1.5 MW is deployed in an offshore wind farm jackup ship owned by Danish company
A2SEA.

52

Voith Interim Report 2012

October 2011
Opening ceremony held at Limberg II pumped storage plantin the Austrian Alps. Voith delivered two 240 MW pumpturbines. Pumped storage plants play a key role in the newenergy concept. They store energy thereby compensating
for fluctuations in solar and wind power output.

Voith Paper is recognized by the federal state of Lower Austria and its Economic Chamber for its OnV FlocSpotter product. Some 200 projects are submitted annually, 50 of which
are included in the shortlist of the most innovative products
and receive an award.

Voith signs contracts to equip the Cemel 1 and Cemel 2
power plants in Turkey. Two Kaplan-pit turbines including
governors, generators and further electrical and mechanicalequipment will be delivered for each plant.

Voith presents the TurboBelt 780 TPXL, a compact, highpower coupling for the drives of open-pit mining belt conveyors. The fluid coupling transmits twice the power achievedby previous couplings of the same size and is designed for
deployment in extremely harsh environments.

On behalf of RWE Biblis, Voith Industrial Services is beginning work on phase-shifter operation and is thereby contributing to stabilizing the power grid. Services include theexpansion of the third low-pressure component of the turbine as well as manufacturing the steel platform on which
the electrical equipment for phase-shift operation will be
installed. The entire scope of the contract covering expansion, manufacturing and installation is completed to the customer’s complete satisfaction in just four weeks.
Voith Industrial Services is handling technical cleaning in thepaint shop of U.S. motorcycle manufacturer Harley Davidson
in York. The order has a total volume of €760,000. Voith wasable to respond to the request with a team on-site within
one week to begin services.
The Daimler Group awards Voith Industrial Services Brazil
second place in the extraordinary efforts for the environment
category of the MBB Sustainability—Environmental Leadership Award. The judges honored the use of environmentallyfriendly pest control methods at Mercedes Benz in São Bernardo do Campo. The project was selected from 70 suggestions submitted.

Voith Interim Report 201253

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

The recycled paper RecySatin used forthis Voith Interim Report 2012 is produced in compliance with the international FSC standard. It consists of 80%
recycled fiber and was produced on a
Voith paper machine.
Printed in Germany,© Voith GmbH, 2012-05

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