Slide 1: Q4 and FY 2022/23 Facts & Figures
Q4 and FY 2022/23 Facts & Figures Ticker: TKA (Share) TKAMY (ADR) November 2023 | Essen
Slide 2: Content
Content Page tk Introduction 2-8 Quarterly Update 9-24 Group Overview and Financials 25-33 Segment Overview and Financials 34-69 ESG and Green Transformation 70-81 Appendix 82-101 2 | thyssenkrupp AG l Investor Relations l November 2023
Slide 3: We are committed to realize value for our shareholders
We are committed to realize value for our shareholders What we build on … 1 LEADING TECHNOLOGIES, 2 STRONG TIES WITH LONG- 3 STRATEGIC REALIGNMENT 4 STRONG BALANCE SHEET 5 IN-HOUSE COMPETENCIES PRODUCTS AND SERVICES STANDING CUSTOMER BASE WITH LARGEST WITH NET CASH POSITION2 FOR GREEN RESTRUCTURING
Slide 4: Transforming to sustained value creation and crystallization
Transforming to sustained value creation and crystallization Investment highlights Performance-oriented transformation with execution track record Full commitment to both performance on benchmark level AT for each segment and sustainable free cash flow Strong materials and engineering expertise as w
Slide 5: thyssenkrupp group structure until 30 Sep 2023
thyssenkrupp group structure until 30 Sep, 2023 FY 22/23: Sales of €37.5 bn, EBIT adj. of €703 mn Materials Industrial Automotive Steel Marine Multi Services Components Technology Europe Systems Tracks2 MX IC AT SE MS MT (BG, FT)1 Sales3 €13.6 bn €2.7 bn €5.5 bn €12.4 bn €1.8 bn €3.2 bn EBIT adj.3 €
Slide 6: New Group structure to reduce complexity
New Group structure to reduce complexity Effective from FY 23/24 AUTOMOTIVE DECARBON MATERIALS STEEL MARINE TECHNOLOGY TECHNOLOGIES SERVICES EUROPE SYSTEMS AT DT MX SE MS Decarbonization technologies bundled in a new segment to efficiently capitalize on emerging “green” business opportunities All Au
Slide 7: New thyssenkrupp Group structure
New thyssenkrupp Group structure FY 22/23: Sales of € 37.5 bn, EBIT adj. of € 703 mn AT DT MX SE MS AUTOMOTIVE DECARBON MATERIALS STEEL MARINE TECHNOLOGY Pro forma TECHNOLOGIES Pro forma SERVICES EUROPE SYSTEMS Pro forma SALES1 €7.9 bn €3.4 bn €13.6 bn €12.4 bn €1.8 bn EBIT ADJ.1 €266 mn €28 mn €178
Slide 8: Each segment with clear commitment to mid-term targets for FYE 24/25
Each segment with clear commitment to mid-term targets for FYE 24/25 AT (excl. SP/AE ) 1 DT MX SE MS HQ Top line thyssenkrupp Group Sales Sales Shipments2 Shipments Sales growth >€7.5 bn >€5.0 bn >6 mt ~11 mt ~7%5 EBIT adj. % Increase to a range of 4-6% Bottom line Adjustment of FCF bef. M&A costs,
Slide 9: Content
Content Page tk Introduction 2-8 Quarterly Update 9-24 Group Overview and Financials 25-33 Segment Overview and Financials 34-69 ESG and Green Transformation 70-81 Appendix 82-101 9 | thyssenkrupp AG l Investor Relations l November 2023
Slide 10: Milestone year 22/23: FCF bef. M&A back in positive territory
Milestone year 22/23: FCF bef. M&A back in positive territory… FCF bef. M&A in [€ bn] 0.4 (0.5) (1.3) (5.5) 19/20 20/21 21/22 22/23 …and we are here to stay 10 | thyssenkrupp AG l Investor Relations l November 2023
Slide 11: Highlights FY 22/23
Highlights FY 22/23 Portfolio • Successful IPO of thyssenkrupp nucera1 • Simplifying the group structure and forming Decarbon Technologies • Relentlessly striving for stand-alone solutions for SE and MS Performance • FY 22/23 targets of high 3-digit €mn EBIT adj. and positive FCF bef. M&A fully met
Slide 12: Performance program APEX successfully started
Performance program APEX successfully started Response to challenging macro environment and support for our mid-term targets Top-down target setting by tkAG… … Initiatives by segments Chapters by segments responses to a challenging macro environment IV. III. II. Assets/CAPEX ONWC I. Clear cash Initi
Slide 13: APEX selective examples
Selective examples First measures identified and started Net Working Capital Business Models Cost of Materials Use of artificial Sustainable end-to-end Software-based intelligence (pacemaker) to solution to decarbonize identification of alternative forecast demand the cement industry suppliers 13 |
Slide 14: Mid-term targets confirmed for FYE 24/25
Mid-term targets confirmed for FYE 24/25 Performance program APEX is designed to carry us to our mid-term targets and beyond [€ bn] We have a clear target… … and a clear commitment Schematic by each segment EBIT adj. MS APEX goals 4-6% SE A group-wide and holistic program Up to MX to boost performan
Slide 15: Milestone year 22/23: FCF bef. M&A back in positive territory
Milestone year 22/23: FCF bef. M&A back in positive territory Performance highlight Q4: FCF bef. M&A delivered as promised Sales EBITDA adj. EBIT adj. FCF bef. M&A Margin Margin Q4 €8.8 bn €318 mn 3.6 % €88 mn 1.0 % €597 mn (17) % YoY (19) % YoY (45) % YoY € (968) mn YoY FY €37.5 bn €1,603 mn 4.3 %
Slide 16: Group transformation backed by a strong balance sheet
Our Group transformation journey is backed by a strong balance sheet Balance sheet highlights Net cash Equity ratio Pensions Valuable stakes, e.g. thyssenkrupp €4.3 bn Incl. ~€0.6 bn 38.1 % Cont. muted market €5.5 bn nucera1 [Ticker: NCH2] +€0.7 bn YoY proceeds from (1.2)%-pts. YoY demand triggered
Slide 17: Q4 financials with typical seasonal impact
Q4 financials with typical seasonal impact in an ongoing challenging market environment FCF bef. M&A less volatile Sales (17) % € bn 10.6 9.6 • Persistent price normalization at Materials businesses 8.8 • Partially weaker demand with muted market dynamics EBITDA adj. (19) % € mn; % 464 391 318 3.7 %
Slide 18: Challenging market conditions and muted demand weighing on Group performance
Challenging market conditions and muted demand weighing on Group performance Q4 EBIT adj. [€ mn] – YoY comments 30 MX Weak demand especially in Europe; +ve one-timer and absence of inventory 54 write-down from PY IC Higher cost base overall only partially offset by efficiency measures and pass-throu
Slide 19: Performance improvements overshadowed by price normalization at MX and SE
Performance improvements throughout the group overshadowed by price normalization at MX and SE FY 22/23 EBIT adj. [€ mn] 80 MX Lower margins due to absence of record 320 prices from prior year; total shipments up (132) IC Higher cost base overall only partially offset by efficiency measures and pass
Slide 20: Market outlook 2024 for main regions and customer groups
Market outlook 2024 for main regions and customer groups Sources: market research institutes (in % versus prior year)1 Enabler for green transformation Steel sheet products Light Vehicle Medium & Heavy Newly grid-connected Hydrogen net consumption Production Vehicle Production Wind Capacity est. dem
Slide 21: Outlook FY 23/24
Outlook FY 23/24 FY 22/23 Outlook FY 23/24 Market conditions Slightly up Sales €37.5 bn Mainly driven by AT, DT and MS GDP forecast 20242: World +2.3% EU +0.8% GER +0.5% High 3-digit € mn range USA +1.6% CHN +4.6% AT Up; low-mid 3-digit € mn range DT Largely stable EBIT adj. €0.7 bn MX Up; low 3-dig
Slide 22: Outlook for FY 23/24 by segment
Outlook for FY 23/24 by segment [€ mn] EBIT adj. EBIT adj. 22/231 23/24E Outlook FY 23/24 Q4 22/231 Q1E 23/24 • Sales: Slightly above prior year AT 266 68 • EBIT adj.: Increase; figure in the low-mid 3-digit €mn range • Sales: Significantly above prior year DT 28 (24) • EBIT adj.: Largely stable • S
Slide 23: Bridge from EBIT adj. to positive FCF bef. M&A
Outlook FY 23/24: Bridge from EBIT adj. to an again positive FCF bef. M&A Sig. lower YoY; Supported by incl. IFRS 16 effects ~€0.9 bn High 3-digit € mn range Supported by Incl. taxes, interests and pensions 0.7 Low ~50% contribution from 3-digit € mn SE expected (mid 3-digit € mn range) EBIT adj. Ma
Slide 24: Wrap up
Wrap up FY 22/23 financials fully in line with guidance – FCF bef. M&A back in positive territory Delivery on dividend continuity: proposal of €0.15/share FY 23/24 outlook with ambitious targets, despite challenging macro conditions tkH2Steel” decarbonization on track – German government's approval
Slide 25: Content
Content Page tk Introduction 2-8 Quarterly Update 9-24 Group Overview and Financials 25-33 Segment Overview and Financials 34-69 ESG and Green Transformation 70-81 Appendix 82-101 25 | thyssenkrupp AG l Investor Relations l November 2023
Slide 26: Increase in net cash driven by thyssenkrupp nucera IPO
Increase in net cash driven by successful thyssenkrupp nucera IPO Net cash development in €mn Q4 2022/23 4,325 FCF (39) 578 3,238 (49) 597 Therof IFRS 16: €120 mn Net cash FCF before M&A M&A IPO proceeds Other Net cash Jun 30, 2023 thyssenkrupp nucera Sep 30, 2023 FY 2022/23 4,325 578 (190) 3,667 36
Slide 27: Capital spending is expected to be significantly lower YoY
Capital spending1 is expected to be significantly lower YoY [€ mn], new group structure pro-forma 1,823 50-55% of total 45-50% incl. IFRS 16 15-20% of total Sig. below 5-10% 20-25% AT 365 prior year 5-10% 5-10% 25-30% DT 117 60-65% 35-40% MX 282 • YoY decline mainly due to Steel Europe (shifts in th
Slide 28: Strong progress on clear restructuring plan
Strong progress on clear restructuring plan Target within defined programs of ~13,000 FTE ~4,000 FTEs [#] ~13,000 ~4,000 > Backed by cc Already >2,000 clear initiatives • Since FY 19/20 >11,000 FTEs reduced, reduced In total >11,000 FTEs reduced >1,000 already >85% of our target achieved1 <2,000 Tar
Slide 29: Key financials Full Group
Key financials Full Group [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Order intake 10,398 13,562 9,946 10,391 44,297 9,177 10,188 9,390 8,305 37,060 Sales 9,023 10,599 10,950 10,568 41,140 9,018 10,107 9,598 8,812 37,536 EBITDA 554 1,026 953 715 3,248 485 466 445 283 1,679 EBITDA adjusted 6
Slide 30: Key financials Continuing operations
Key financials Continuing operations [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Order intake 10,398 13,562 9,946 10,391 44,297 9,177 10,188 9,390 8,305 37,060 Sales 9,023 10,599 10,950 10,568 41,140 9,018 10,107 9,598 8,812 37,536 EBITDA 554 1,018 953 715 3,240 485 466 445 283 1,679 EBITDA
Slide 31: Business cash flow (BCF) and Free cash flow before M&A
Business cash flow (BCF) and Free cash flow before M&A [€ mn] 2021/22 2022/23 Δ Q4 Q4 Q3 Q4 yoy Q4 YoY BCF Materials Services (MX) 827 260 68 (92%) MX: Sig. lower NWC release and higher investments; Prior year also BCF Industrial Components (IC) 64 82 25 (61%) including +ve one off from real estate
Slide 32: Special items
Special items [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Comments on Q4 Disposal effect () (1) (1) 137 135 3 7 29 (5) 33 MX Impairment () () 6 1 6 () 1 () (3) (2) Restructuring (3) 1 (6) (8) (1) (2) (4) Disposal effect 1 2 4 8 () 1 • Partial reversal of extraordinary depreciation of PPE re
Slide 33: Special items – new structure pro forma
Special items – new structure pro forma [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Comments on Q4 Disposal effect 2 2 4 1 8 • Mainly impairments on non-current assets at Steering and Springs & AT Impairment (13) (9) (25) (30) (77) (14) (1) (2) (59) (76) Restructuring 3 14 17 (1) (1) (2) (4
Slide 34: Content
Content Page tk Introduction 2-8 Quarterly Update 9-24 Group Overview and Financials 25-33 Segment Overview and Financials 34-69 ESG and Green Transformation 70-81 Appendix 82-101 34 | thyssenkrupp AG l Investor Relations l November 2023
Slide 35: Materials Services: leading mill-independent materials distributor
MX One of the world’s leading mill-independent materials distributors and service providers Materials Services fuels global industry by orchestrating material supply chains between suppliers and customers Materials distributor rankings1 Geographic presence #1 Germany 30+ countries #1 Europe ~380 bra
Slide 36: Diversified portfolio of materials, end markets and regions
MX Diversified portfolio of materials, end markets and attractive geographic regions Flexible multi-material portfolio Serving diversified end markets1 (exemplary customers) Pipes and tubes Other industries Stainless steel 13% ABB Airbus BMW Boeing Bombardier 5% Electrical products & equipment 5% 13
Slide 37: Solid earnings despite challenging market environment especially in Europe
MX Solid earnings despite challenging market environment especially in Europe Shipments1 [kt] Comments YoY Investment highlights (4)% • Warehousing shipments down due to lower demand 1 Market leader profiting from customer trends 1,162 1,142 1,116 in distribution business mainly in Europe; total shi
Slide 38: Materials Services
MX Materials Services [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Order intake 3,722 4,533 4,095 3,671 16,021 3,348 3,901 3,272 3,163 13,684 Sales 3,290 4,446 4,793 3,916 16,444 3,246 3,897 3,346 3,124 13,613 EBITDA 251 364 425 62 1,102 56 125 112 41 333 EBITDA adjusted 251 368 420 (69) 970
Slide 39: Industrial Components: Mission critical components
IC Industrial Components (IC): Mission critical components for a broad range of clients and applications Bearings (BG) Forged Technologies (FT) Market leader for large slewing bearings, supplying pivotal Largest steel forging company in the world, supplying leading components for wind energy and div
Slide 40: Global supplier of mission-critical slewing bearings
IC BG We are a global supplier of mission-critical slewing bearings Products are mainly mission-critical slewing bearings Attractive and diverse customer portfolio (examples) Wind Energy Industry Slewing bearings Rings from 100 mm up to 8 m; Seamlessly rolled segmented up to 25 m up to 8 m Main prod
Slide 41: Mission-critical components customized to requirements
IC BG We supply mission-critical components customized to specific requirements (examples) Rotor bearings Excavator bearing Mission-critical & attractive margins • Slewing bearings enable rotating movements and are essential for operations of applications • Customer individual design with small batc
Slide 42: Number one in steel forging
IC FT Number one in steel forging: First choice for our customers Mission critical components: Highly engineered, forged, machined Strong customer base: Leading OEMs world-wide Engine (ICE 1) Chassis Undercarriages Passenger cars Trucks/Off-Highway Construction/Mining Audi Renault Agco Iveco Bobcat
Slide 43: Top line and earnings impacted by weaker wind demand in China
IC Top line and earnings impacted by weaker wind demand in China and seasonality Order intake [€ mn] Comments YoY Investment highlights (BG) (27)% #1 supplier of mission-critical components slewing Bearings (BG) 1 764 690 bearings 560 • OI: good demand for industry applications cannot BG Attractive
Slide 44: Industrial Components
IC Industrial Components [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Order intake 601 707 720 764 2,792 783 725 690 560 2,758 Order backlog 1,000 1,016 1,043 1,065 1,065 1,148 1,130 1,118 1,025 1,025 Sales 604 707 702 754 2,766 663 732 695 657 2,747 EBITDA 84 93 81 105 363 67 90 86 80 323 E
Slide 45: AT international setup and diverse product portfolio
AT AT with international setup and diverse product portfolio to serve customer segments High-tech components and systems as well as automation solutions for AT is a major supplier and engineering partner to the international vehicle manufacturing automotive industry – selected examples Automotive Au
Slide 46: AT portfolio with >70% of sales independent from ICE
AT AT portfolio1 with >70% of sales independent from ICE development Components, systems and services Automotive body solutions Axle assembly Drivetrain components Shock absorbers/suspension Mechanical and electrical steering 1. Excluding SP, AE 46 | thyssenkrupp AG l Investor Relations l November 2
Slide 47: Mission critical components with huge growth potential
AT Mission critical components with huge growth potential ICE independent ICE dependent New ICE independent Steer by Electro Steering column Steering gear VMC1 Steering Wire (SbW) Mech. Brake • AT supplies mission ECU critical components (Semi-) active Semi-active globally shock absorbers entry shoc
Slide 48: Solid customer demand with price and efficiency measures
AT Ongoing solid customer demand in combination with price and efficiency measures Order intake [€ mn] Comments YoY Investment highlights -10% 1 Mission critical components & systems 1,468 1,379 1,315 Growth of core business and taking advantage of 2 current market developments • Ongoing solid custo
Slide 49: Automotive Technology
AT Automotive Technology [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Order intake 1,090 1,115 1,193 1,468 4,866 1,383 1,350 1,379 1,315 5,428 Sales 1,106 1,143 1,206 1,369 4,825 1,302 1,378 1,426 1,373 5,479 EBITDA 94 57 64 121 336 100 146 93 110 448 EBITDA adjusted 94 58 65 122 338 100 147
Slide 50: Automotive Technology (new setup) – pro forma financials
AT Automotive Technology (new setup) – pro forma financials [€ mn] 2022/23 Q1 Q2 Q3 Q4 FY Order intake 2,047 2,031 2,063 1,738 7,879 Sales 1,884 2,009 2,045 1,971 7,910 EBITDA 118 181 117 141 557 EBITDA adjusted 119 182 120 144 564 EBIT 31 106 41 6 184 EBIT adjusted 46 108 44 68 266 EBIT adj. margin
Slide 51: Flat steel producer in EU with broad end-market exposure
SE No. 2 flat steel producer in EU with broad end-market exposure Shipments by end market (22/23) 10.4 Mt 10 sq km Automotive Consumer durables 9.4 Mt Crude steel production Duisburg area One of the largest EU industrial sites 9.4 Mt 20 Automotive Shipments Production Special vehicles Energy distrib
Slide 52: #1 German & #2 EU producer of premium steel products
SE 1 #1 German & #2 EU producer of premium steel products – Strong positions in core segments Excellent position in premium automotive/industrial segments in China and India Strong position in Europe and internationally Strong positioning within diverse customer segments3 > 25 years > 1,200 average
Slide 53: Flat steel demand per vehicle will increase with electromobility
SE Flat steel demand per vehicle will increase overall due to trend towards electromobility Conventional vehicle with Internal Combustion Engine („ICE“) Battery Electric Vehicles („BEV“) approx. +10% flat steel demand1 Sample image tk Steel-reference structure „InCar“ Sample image aus tk Steel-refer
Slide 54: High-value steel grades positioned for electromobility
SE With their portfolio of high-value steel grades, the various business and sales units of thyssenkrupp Steel Europe AG are well positioned to seize the opportunities presented by electromobility tk Steel Europe tk Steel Europe tk Electrical Steel tk Hohenlimburg Sales Automotive & Industry Sales N
Slide 55: Higher shipments and lower cost base offset by lower spot prices
SE Higher shipments and lower cost base offset by lower spot-market price levels Shipments [kt] Comments YoY Investment Highlights #1 German and #2 EU producer of premium steel (3)% 1 products • Shipments slightly lower, mainly driven by industry 2,263 2,552 2,324 customers (packaging steel) 2 Stron
Slide 56: Steel Europe
SE Steel Europe [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Order intake 2,481 3,389 3,098 2,844 11,811 3,035 3,691 3,221 2,243 12,189 Sales 2,669 3,392 3,558 3,538 13,156 2,945 3,315 3,251 2,864 12,375 EBITDA 198 571 461 348 1,579 256 88 229 114 687 EBITDA adjusted 198 555 451 285 1,489 16
Slide 57: Marine Systems highlights: Leading global supplier of marine technology
MS Marine Systems highlights: Leading global supplier of marine technology Technology leadership with integrated platform, systems and services €1.8 bn Revenue FY 22/23 NATO’s preferred Naval partner supplying 70% of non-nuclear submarine fleet €12.6 bn Significant order backlog diversified across a
Slide 58: Integrated system provider of naval technology
MS Integrated system provider: The whole world of naval technology from one single source Submarines Surface Vessels Naval Electronic Systems NXTGEN1 #1 Conventional submarines globally #1 Surface vessels in Europe Innovations for own and 3rd party platforms Civil applications Aftermarket – End-to-e
Slide 59: After-sales services provide recurring multi-decade revenues
MS Significant after-sales services provide recurring multi-decade revenues (submarine example) Design and Production In Operation & Service End of Life Cycle • 100% of purchase price at • 40+ years operation & service life of a • ~40% of initial purchase price delivery of last unit in class submari
Slide 60: Performance of key metrics well on track
MS Performance of key metrics well on track Order intake [€ mn] Comments YoY Investment Highlights 78% • Orders in Maintenance, Service and Marine 1 Global leader in innovative naval technologies Electronics 572 320 • Extension of existing surface vessel and 2 Highly attractive long-term growth mark
Slide 61: Marine Systems
MS Marine Systems [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Order intake 479 3,144 288 320 4,232 133 135 119 572 959 Order backlog 10,880 13,860 13,658 13,615 13,615 13,098 12,787 12,514 12,630 12,630 Sales 377 476 411 567 1,831 508 498 484 349 1,839 EBITDA 15 20 17 37 89 33 29 31 48 141
Slide 62: Marine Systems (new setup) – pro forma financials
MS Marine Systems (new setup) – pro forma financials [€ mn] 2022/23 Q1 Q2 Q3 Q4 FY Order intake 128 135 117 571 952 Order backlog 13,089 12,779 12,509 12,625 12,625 Sales 507 497 480 349 1,832 EBITDA 32 29 27 45 134 EBITDA adjusted 34 30 27 45 136 EBIT 17 14 12 27 70 EBIT adjusted 19 14 12 27 73 EBI
Slide 63: Adj. EBIT loss sig. reduced compared with prior year
MT Adj. EBIT loss sig. reduced compared with prior year Order intake [€ mn] Comments YoY Updates on businesses and portfolio tk nucera (hydrogen electrolysis business) (56)% • Lower order intakes in all businesses mainly due to − Order funnel expanding 1,724 1,099 756 one large scale order in previo
Slide 64: Multi Tracks
MT Multi Tracks [€ mn] Sale of AST in Jan 2022 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Order intake 2,567 1,294 914 1,724 6,499 913 968 1,099 756 3,735 Sales 1,540 993 728 839 4,101 779 769 790 829 3,167 EBITDA (7) (29) (54) 71 (17) (4) 17 (59) (42) (88) EBITDA adjusted 24 (14) (46) (60) (95)
Slide 65: Corporate Headquarters
HQ Corporate Headquarters [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EBITDA (61) (46) (40) (43) (191) (44) (38) (44) (54) (180) EBITDA adjusted (51) (36) (31) (35) (153) (43) (41) (37) (47) (167) EBIT (61) (47) (41) (44) (193) (44) (38) (45) (55) (182) EBIT adjusted (51) (36) (31) (36) (15
Slide 66: DT combines key decarbonization technologies with broad customer base
DT DT combines key technologies for decarbonization with a broad industrial customer base Rothe Erde Uhde Polysius thyssenkrupp nucera1 Producer of (large) slewing Suite of green technologies to Plant engineering and service in Supplier of electrolysers for bearings and rings support energy transiti
Slide 67: Decarbon Technologies bundles key technologies for Green Transformation
DT Decarbon Technologies bundles key technologies for Green Transformation Rothe Erde1 • Global No. 1 supplier for mission critical components for wind energy • >2,500 multimegawatt main bearings manufactured • Enormous opportunities from global expansion plans for wind energy thyssenkrupp nucera2 •
Slide 68: Key highlights Decarbon Technologies
DT Key highlights Decarbon Technologies 1 Enabler for decarbonization across industries and market leader in attractive key technologies 2 Well-established businesses with access to customers and large installed base 3 Global Player with regional customer focus on main growth markets 4 Clear path fo
Slide 69: Decarbon Technologies – pro forma financials
DT Decarbon Technologies – pro forma financials [€ mn] 2022/23 Q1 Q2 Q3 Q4 FY Order intake 1,021 1,000 1,097 885 4,002 Sales 848 856 855 879 3,438 EBITDA 44 72 8 (3) 122 EBITDA adjusted 45 75 12 10 142 EBIT 18 46 (29) (28) 7 EBIT adjusted 19 49 (16) (24) 28 EBIT adj. margin (%) 2.2 5.8 (1.8) (2.7) 0
Slide 70: Content
Content Page tk Introduction 2-8 Quarterly Update 9-24 Group Overview and Financials 25-33 Segment Overview and Financials 34-69 ESG and Green Transformation 70-81 Appendix 82-101 70 | thyssenkrupp AG l Investor Relations l November 2023
Slide 71: Holistic approach to sustainability on Group and Business level
thyssenkrupp pursues a holistic approach to sustainability on Group and Business level and manages Stakeholder expectations actively by transparency, communication and strategic positioning Society & Customers & other Environment/ People/ (potential) Employees Business Partners Climate Protection Cl
Slide 72: We create ESG impact
We create ESG impact… Environment Social Governance • Aim to become climate neutral by 2050 at the • Occupational safety and health • Corporate Governance latest and set ambitious targets for 2030 − Zero compromise on safety and health − Sustainability a Board responsibility (CEO) − -30% scope 1+2 e
Slide 73: Growth and value opportunities from transformational trends
Promising growth and value opportunities from multiple transformational trends in our portfolio For which tk with more than 200 years expertise in engineering and technology is ready to enable and capitalize on Green Energy and Decarbonization Advanced Mobility Digitalization • Hydrogen Electrolysis
Slide 74: Strong positioning of tkSE in future green steel market
Green Transformation – Strong positioning of tkSE in future green steel market Ensuring the long-term industrial value creation in the “Ruhrgebiet” Flat steel: EU estimated demand vs. supply for green steel, Mt Demand Supply 50 Demand for green steel is expected to grow, with 40 demand expected to e
Slide 75: Green Transformation – Comprehensive master plan
Green Transformation – Comprehensive master plan Roadmap to reduce CO2 by >30% until 2030 and become a climate neutral steel location by 2045 from 2026 First DR plant with melting units (SAF) Removal of the first coal-based blast furnace up to 2029 2019 Hydrogen ramp-up Trialling H2 use of the first
Slide 76: DR-SAF approach for first DR-plant
Green Transformation – DR-SAF approach for first DR-plant Technology set-up leads to significant advantages Technology approach Benefit of our technology approach Significant CO2 savings in hot metal DR-plant production by using hydrogen Reduction of iron ore in the form of pellets to direct reduced
Slide 77: Response to the TCFD framework
Our response to the Taskforce on Climate-related Financial Disclosures (TCFD) framework thyssenkrupp attaches great importance to the topics of environmental protection, climate change & energy efficiency Our online publication Governance ✓ Oversight of climate strategy by CEO and Sustainability Com
Slide 78: Indirect Financial Targets to track sustainability progress
Indirect Financial Targets (IFTs) to track continuous progress in sustainability Targets Achievements FY 2021/22 FY 2022/23 Target 2023/24 Annual energy efficiency gains of 85 GWh in FY 2022/23 255 GWh 340 GWh ≥ 205 GWh Annual reduction of emissions by 1 t CO2 per mn € sales 35.5 t CO2 per 28.9 31.2
Slide 79: Women in leadership positions
Women in leadership positions: Further increase in 2023 and well on track to reach the target of 17% • The “Fair Share” as ambitious target incl. Elevator Technologies (ET) (in comparison to other companies having (discontinued operations) higher “numeric” targets, but also a higher proportion of wo
Slide 80: Group Accident Frequency Rate target
The adaption of the agreed target scheme for the Group Accident Frequency Rate from the next FY onwards results in a target value of 2.2 for FY 2023/24 Group Accident Frequency Rate actual (until 18/19 incl. ET) Target (formerly agreed) 5.9 Target (adapted) 4.8 4.6 3.7 3.0 3.0 2.9 2.8 2.6 2.7 2.6 2.
Slide 81: Key Environmental Data
Key Environmental Data Unit 2020 / 2021 2021 / 2022 2022 / 2023 Energy Total energy consumption TWh 74.0 66.1 67.9 • Continuously tracking our environmental Greenhouse Gas emissions performance Scope 1 Mio. t CO2e 22.81 21.4 22.9 Scope 2 Mio. t CO2e 1.01 0.8 1.0 Scope 1 + 2 Mio. t CO2e 23.81 22.2 23
Slide 82: Content
Content Page tk Introduction 2-8 Quarterly Update 9-24 Group Overview and Financials 25-33 Segment Overview and Financials 34-69 ESG and Green Transformation 70-81 Appendix 82-101 82 | thyssenkrupp AG l Investor Relations l November 2023
Slide 83: Pensions: patient long-term financial debt with gradual amortization
Pensions: “patient” long-term financial debt with gradual amortization [Group, € mn] Accrued pension and similar obligations Development at unchanged discount rate (schematic) Accrued pension liability Germany Accrued pension liability outside GER Accruals related to partial retirement agreements Ot
Slide 84: Germany accounts for majority of pension plans
Germany accounts for majority of pension plans [Group, FY 2022/23; € mn] Funded status of defined benefit obligation Reconciliation of accrued pension liabilities by region Germany Outside Germany 1 1 • >95% of the unfunded portion in Germany; • Plan assets outside Germany mainly attributable to Ger
Slide 85: Net periodic payments exceed service costs
Net periodic payments exceed Service costs and amortize pension liability by ~€100 mn (p.a.) [Group, € mn] Non-cash employees earning Cash to pensioners future pension payments (510) 3 190 5,573 115 (348) 5,294 (162) 162 (46) (194) Net periodic pension cost (308) 5,294 Net periodic payment 394 3.70
Slide 86: Segment Overview – Quarterly Order Intake
Segment Overview – Quarterly Order Intake [Continuing operations - € mn] 2021/22 2022/23 Δ Q4 1 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY yoy yoy (ex FX) Materials Services 3,722 4,533 4,095 3,671 16,021 3,348 3,901 3,272 3,163 13,684 (14%) (12%) Industrial Components 601 707 720 764 2,792 783 725 690 560 2,758
Slide 87: Segment Overview – Quarterly Sales
Segment Overview – Quarterly Sales [Continuing operations - € mn] 2021/22 2022/23 Δ Q4 1 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY yoy yoy (ex FX) Materials Services 3,290 4,446 4,793 3,916 16,444 3,246 3,897 3,346 3,124 13,613 (20%) (18%) Industrial Components 604 707 702 754 2,766 663 732 695 657 2,747 (13%)
Slide 88: Sales by region FY 2022/23
Sales by region FY 2022/23 [Continuing Operations, %] Materials Industrial Automotive Steel Marine Multi thyssenkrupp Services Components Technology Europe Systems Tracks Cont. Ops. Worldwide (€mn) 13,613 2,747 5,479 12,375 1,839 3,167 37,536 1 DACHLI 34.0 22.1 32.2 55.0 24.1 11.1 35.4 Germany 31.1
Slide 89: Sales by customer group FY 2022/23
Sales by customer group FY 2022/23 [Continuing Operations, %] Materials Industrial Automotive Steel Marine Multi thyssenkrupp Services Components Technology Europe Systems Tracks Cont. Ops. Overall (€mn) 13,613 2,747 5,479 12,375 1,839 3,167 37,536 Automotive 15.6 39.3 93.6 27.0 0.0 26.1 33.2 Steel
Slide 90: Segment Overview – Quarterly EBIT and Margin
Segment Overview – Quarterly EBIT and Margin [Continuing operations - € mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Materials Services 219 331 393 27 970 22 91 78 12 204 % 6.7 7.5 8.2 0.7 5.9 0.7 2.3 2.3 0.4 1.5 Industrial Components 57 67 53 73 250 38 61 57 53 208 % 9.5 9.4 7.6 9.6 9.0 5.8 8.
Slide 91: Segment Overview – Quarterly EBIT adj. and Margin
Segment Overview – Quarterly EBIT adj. and Margin [Continuing operations - € mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Materials Services 219 336 386 (104) 837 20 85 50 23 178 % 6.7 7.5 8.1 (2.7) 5.1 0.6 2.2 1.5 0.7 1.3 Industrial Components 56 65 49 64 234 38 61 57 47 203 % 9.4 9.1 7.0 8.5
Slide 92: Segment Overview – Quarterly BCF and FCF bef. M&A
Segment Overview – Quarterly Business Cash Flow (BCF) and Free Cash Flow bef. M&A1 [Continuing operations - € mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY BCF Materials Services (391) (282) 268 827 422 (113) 98 260 68 313 BCF Industrial Components 42 (26) 97 64 176 43 6 82 25 155 BCF Automotive
Slide 93: Volume KPIs of Materials Services and Steel Europe
Volume KPI’s of Materials Services and Steel Europe1 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 FY FY FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Total shipments kt 11,096 9,849 8,138 9,114 2,086 2,301 2,275 2,038 8,701 2,143 2,344 2,270 2,168 8,925 MX Materials Stockholding and Processing kt 5,944 5,7
Slide 94: Liquidity analysis, maturity profile and net cash reconciliation
Liquidity analysis, maturity profile of gross financial debt and reconciliation net cash as of September 30, 2023 [€ mn] 8,861 Available 1,510 committed credit facilities Net cash +4,325 Maturity profile of gross financial debt Cash and 7,351 cash Total: 2,347 3,025 (w/o Lease liabilities according
Slide 95: thyssenkrupp rating
thyssenkrupp rating Long-term Short-term rating rating Outlook Standard & Poor’s BB B stable Moody’s Ba3 not Prime stable Fitch BB- B positive 95 | thyssenkrupp AG l Investor Relations l November 2023
Slide 96: Reconciliation of EBIT Q4 2022/23 from P&L
Re-conciliation of EBIT Q4 2022/23 from P&L [Continuing Operations, € mn] P&L structure EBIT definition Net sales 8,812 Net sales 8,812 Cost of sales (9,437) Cost of sales (9,437) SG&A, R&D (1,181) SG&A, R&D (1,181) Other income/expense 33 Other income/expense 33 Other gains/losses (13) Other gains/
Slide 97: Reconciliation of EBIT FY 2022/23 from P&L
Re-conciliation of EBIT FY 2022/23 from P&L [€ mn] P&L structure EBIT definition Net sales 37,536 Net sales 37,536 Cost of sales (34,878) Cost of sales (34,878) SG&A, R&D (4,342) SG&A, R&D (4,342) Other income/expense 215 Other income/expense 215 Other gains/losses 12 Other gains/losses 12 = Income
Slide 98: thyssenkrupp shareholder structure as of end September 2023
thyssenkrupp shareholder structure as of end September 2023 Investors Regional split AKBH Undisclosed Europe Foundation 8.5% Rest of the World 12.5% ~21% 4.5% UK/Ireland 4.5% Free Float ~79% Private ~15% 25.0% Investors ~64% North America International 45.0% Mutual Funds Germany incl. AKBH Foundatio
Slide 99: Share and ADR Data
Share and ADR Data • Shares outstanding 622,531,741 • Type of share No-par-value bearer shares • Voting One share, one vote Share Data • Ticker Symbol TKA • German Security Identification Number (WKN) 750 000 • ISIN Number DE0007500001 • Exchange Frankfurt, Dusseldorf ADR Data • Ratio (ordinary shar
Slide 100: Further Investor Relations Information
Further Investor Relations Information IR contact: +49 201-844-536480 | ir@thyssenkrupp.com Upcoming IR Events November 27, 2023 Deutsche Börse - Deutsches Eigenkapitalforum, Frankfurt November 30, 2023 Société Générale Premium Review Conference, Paris December 6, 2023 Goldman Sachs 14th Annual Euro
Slide 101: Disclaimer thyssenkrupp AG
Disclaimer thyssenkrupp AG This presentation has been prepared by thyssenkrupp AG (“thyssenkrupp”) and comprises the written materials/slides for a presentation concerning thyssenkrupp. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. The