Thyssenkrupp Ag · XETR:TKA

Thyssenkrupp — Q1 2022/23 Earnings Presentation

85 slides from Thyssenkrupp's earnings presentation, Feb 14, 2023

  1. Slide 1: Facts & Figures Q1 2022/23

    Facts & Figures Q1 2022/23 Ticker: TKA (Share) TKAMY (ADR) February 2023

  2. Slide 2: Content

    Content Page tk Introduction 2-6 Quarterly Update 7-17 Group Overview and Financials 18-24 Segment Overview and Financials 25-52 ESG and Green Transformation 53-66 Appendix 67-85 2 | thyssenkrupp AG l Investor Relations l February 2023

  3. 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, products and services o Premium steel, diverse industrial materials, innovative supply chain services o Mission critical components for advanced mobility, wind energy o H2 electrolysis; efficient proces

  4. Slide 4: Transforming to sustained value creation

    Transforming to sustained value creation Investment highlights MX IC AT SE MS MT // Comprehensive transformation plan for Group of Companies with execution track record // Full commitment to both performance on benchmark level for each segment and sustainable free cash flow // Strong materials and e

  5. Slide 5: Group of Companies with flexible ownership models for maximum value creation

    thyssenkrupp: Group of Companies with flexible ownership models for maximum value creation FY 21/22: Sales of €41.1 bn, EBIT adj. of €2.1 bn Materials Industrial Automotive Steel Marine Multi Services Components Technology Europe Systems Tracks2 MX IC AT SE MS MT (BG, FT)1 Sales3 €16.4 bn €2.8 bn €4

  6. Slide 6: Each segment with clear commitment on mid-term targets

    Each segment with clear commitment on mid-term targets MX IC AT SE MS MT HQ (BG, FT) Top line Shipments1 Sales growth Sales Shipments Sales growth >6 mt 3-5%2,3 >€5.5 bn ~11 mt ~6%2 Portfolio streamlining and Adjustment of structural costs, aligned EBIT adj. % 2-3% ≥10% 7-8% 6-7% 6-7% Bottom line im

  7. Slide 7: Content

    Content Page tk Introduction 2-6 Quarterly Update 7-17 Group Overview and Financials 18-24 Segment Overview and Financials 25-52 ESG and Green Transformation 53-66 Appendix 67-85 7 | thyssenkrupp AG l Investor Relations l February 2023

  8. Slide 8: Q1: A confirming start into FY 2022/23 (I)

    Q1: A confirming start into FY 2022/23 (I) EBIT adj. for all businesses in line with our forecast – FCF bef. M&A ahead of our forecast Normalization of material prices (at Materials Services) drive EBIT adj. development YoY Sales EBITDA adj. EBIT adj. FCF bef. M&A Performance €9.0 bn €477 mn €254 mn

  9. Slide 9: Q1: A confirming start into FY 2022/23 (II)

    Q1: A confirming start into FY 2022/23 (II) Largest restructuring program ever progressing; more than 10,000 FTEs already reduced Performance initiatives with defined top- and bottom-line levers on track: low 3-digit € mn amount supporting financial targets Next portfolio actions at Multi Tracks in

  10. Slide 10: FCF bef. M&A with significant improvement mainly driven by lower NWC build-up

    FCF bef. M&A with significant improvement mainly driven by lower NWC build-up Sales [€ bn] 0% 9.0 10.6 9.0 • Robust top-line development: Higher sales of almost all other businesses offset by sale of AST EBITDA adj. [€ mn] (21)% 602 477 391 • Price normalization at MX offsetting higher earnings cont

  11. Slide 11: Price normalization YoY at MX offsetting higher earnings contribution

    Price normalization YoY at MX offsetting higher earnings contribution by AT, SE and MS Q1 EBIT adj. [€ mn] ∆YoY (199) (18) 5 52 14 (16) 38 (123) MX: Lower prices and volumes (destocking) ∆QoQ 124 (25) (18) (44) 1 60 (4) 93 especially in the distribution business in Europe IC: Affected by higher fact

  12. Slide 12: Market outlook 2023 for main regions and customer groups

    Market outlook 2023 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

  13. Slide 13: Management view on the quarters to come in FY 22/23

    Management view on the quarters to come in FY 22/23 Q2 determined by SE (renewed Q1 in line with contract prices / still high cost Q3 and Q4 with progressing our forecast (moving avg.) level) EBIT adj. and +ve FCF bef. M&A Q1 Q2 Q3E and Q4E Expected trading conditions Q3E and Q4E with sig. step up i

  14. Slide 14: Outlook FY 22/23 confirmed

    Outlook FY 22/23 confirmed Act Outlook Q1 Q2E FY 21/22 FY 22/23 GDP assumptions 20231: Sales €41.1 bn Sig. decrease €9.0 bn o Germany +0.3% [(1.5)%] Mid to high 3-digit € mn range EU +0.2% [(0.6)%] EBIT • Normalization of material prices at MX and SE o €2.1 bn €254 mn adj. • Higher factor costs • Im

  15. Slide 15: Outlook for FYE 22/23 by segment

    Outlook for FYE 22/23 by segment [€ mn] EBIT adj. EBIT adj. 21/22 22/23E Outlook FY 22/23E Q1 22/23 Q2E 22/23 • Sales: Sig. below prior year MX 837 20 • EBIT adj.: Decrease; figure in the low 3-digit €mn range • Sales: Slightly above prior year IC 234 38 • EBIT adj.: Decrease; figure in the low 3-di

  16. Slide 16: FCF bef. M&A: Improvement to at least b/e as highest priority

    FCF bef. M&A: Improvement to at least b/e as highest priority in FY 22/23 [€ bn] Upside going forward … • Mid-term target: sig. +ve FCF bef. M&A • Higher YoY (incl. IFRS 16 effect • Progress in performance, portfolio of low-mid 3-digit €mn) and transformation • Active mgmt. steering with potential f

  17. Slide 17: Capital spending is expected to be higher YoY

    Capital spending1 is expected to be higher YoY [Continuing operations] Higher YoY €1.5 bn MX • Incl. extraordinary and mainly non-cash IFRS 16 effects (mainly MX) IC AT • SE with an increase in investments, which relates principally to the Steel Strategy 20-30 and the green transformation • Incl. in

  18. Slide 18: Content

    Content Page tk Introduction 2-6 Quarterly Update 7-17 Group Overview and Financials 18-24 Segment Overview and Financials 25-52 ESG and Green Transformation 53-66 Appendix 67-85 18 | thyssenkrupp AG l Investor Relations l February 2023

  19. Slide 19: Stringent management actions to tackle challenges and capture opportunities

    Stringent management actions to tackle challenges and capture opportunities External factors Management actions (examples) Total energy consumption Group FY 21/22  Pass-on of cost increases to customers Unsettled economic outlook ~66 TWh (incl. energy costs) (Δ reduction of ~5 TWh YoY) Inflationary

  20. Slide 20: Strong progress on clear restructuring plan

    Strong progress on clear restructuring plan Target within defined programs of up to 13,000 FTE FTEs ~60% [#] ≤13,000 ~40% Backed by Achieved in GER • Since FY 19/20 already ~80% achieved1 clear initiatives Achieved in RoW >10,000 • After FY 22/23 target largely achieved <10% Target Achieved 22/23E W

  21. Slide 21: Key financials Full Group

    Key financials Full Group [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Order intake 10,398 13,562 9,946 10,391 44,297 9,177 Sales 9,023 10,599 10,950 10,568 41,140 9,018 EBITDA 554 1,026 953 715 3,248 485 EBITDA adjusted 602 1,028 951 391 2,972 477 EBIT 298 792 305 432 1,827 246 EBIT adjusted 378 802 72

  22. Slide 22: Key financials Continuing operations

    Key financials Continuing operations [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Order intake 10,398 13,562 9,946 10,391 44,297 9,177 Sales 9,023 10,599 10,950 10,568 41,140 9,018 EBITDA 554 1,018 953 715 3,240 485 EBITDA adjusted 602 1,028 951 391 2,972 477 EBIT 298 783 305 432 1,819 246 EBIT adjusted

  23. Slide 23: 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 Q1 YoY Q1 Q4 Q1 yoy MX: Lower earnings offset by sig. lower (price-related) NWC level BCF Materials Services (MX) (391) 827 (113) 71% BCF Industrial Components (IC) 42 64 43 4% IC: Earnings decline and inventory built-up

  24. Slide 24: Special items

    Special items [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Comments on Q1 Disposal effect () (1) (1) 137 135 3 MX Impairment () () 6 1 6 () Restructuring (3) 1 (6) (8) Disposal effect 1 2 4 8 Impairment () () () () (1) IC Restructuring () 9 9 () Disposal effect () () () • Impairment losses on non-curren

  25. Slide 25: Content

    Content Page tk Introduction 2-6 Quarterly Update 7-17 Group Overview and Financials 18-24 Segment Overview and Financials 25-52 ESG and Green Transformation 53-66 Appendix 67-85 25 | thyssenkrupp AG l Investor Relations l February 2023

  26. Slide 26: Materials Services: leading mill-independent materials distributor

    MX Leading mill-independent materials distributor and service provider across Europe and North America Materials Services fuels global industry by orchestrating material supply chains between suppliers and customers Materials distributor rankings1 Geographic presence #1 Germany 30+ countries #1 Euro

  27. Slide 27: Diversified portfolio of materials, end markets and attractive geographic 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% Aerospace 5% 14% 5% Electrical produc

  28. Slide 28: Business successfully coped despite an unfavorable market environment

    MX Business successfully coped despite an unfavorable market environment Shipments1 [kt] Comments YoY Investment highlights (14)% • Shipments down due to lower demand in distribution Market leader profiting from customer trends 1,167 1,162 1,003 business mainly in Europe Growth in North America Sale

  29. Slide 29: Materials Services

    MX Materials Services [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Order intake 3,722 4,533 4,095 3,671 16,021 3,348 Sales 3,290 4,446 4,793 3,916 16,444 3,246 EBITDA 251 364 425 62 1,102 56 EBITDA adjusted 251 368 420 (69) 970 54 EBIT 219 331 393 27 970 22 EBIT adjusted 219 336 386 (104) 837 20 EBIT ad

  30. Slide 30: Industrial Components: Mission critical components for a broad range of clients

    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

  31. Slide 31: We are a 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

  32. Slide 32: We supply mission-critical components customized to specific 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

  33. Slide 33: Number one in steel forging: First choice for our customers

    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 PSA Agco Iveco Bobcat Sumi

  34. Slide 34: Strong ICE position is leveraged as e-mobility rises

    IC FT Strong ICE position is leveraged as e-mobility rises Undercarriages – original equipment ICE components – stronger €2.3 Engine – passenger cars impact until 2030 bn €0.8 Non-ICE PTM and trend Market share bn 17% Improve margin ‒ grow profitably PTM1 and trend Market share 25% Undercarriages –

  35. Slide 35: Ongoing top-line growth driven by wind energy and robust industry

    IC Ongoing top-line growth driven by wind energy as well as robust industry and truck demand Order intake [€ mn] Comments YoY Investment highlights (BG) #1 supplier of mission-critical components slewing 30% bearings Bearings (BG) 601 764 783 Attractive end markets, especially high-growth • Top-line

  36. Slide 36: Industrial Components

    IC Industrial Components [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Order intake 601 707 720 764 2,792 783 Order backlog 1,000 1,016 1,043 1,065 1,065 1,148 Sales 604 707 702 754 2,766 663 EBITDA 84 93 81 105 363 67 EBITDA adjusted 83 91 77 96 346 67 EBIT 57 67 53 73 250 38 EBIT adjusted 56 65 49 64 2

  37. Slide 37: AT with international set-up and diverse product portfolio

    AT AT with international set-up and diverse product portfolio to serve customer segments High-tech components and systems as well as AT is one of the leading suppliers and engineering automation solutions for vehicle manufacturing partners to the international automotive industry NEW NEW and Establi

  38. Slide 38: AT portfolio with 80% of sales independent of ICE development

    AT AT portfolio with 80% of sales independent of Internal Combustion Engine (ICE) development Components, systems and services Steering Steering Chassis and column gear body in white BU Steering BU Automotive Body Solutions Full system steering supplier New set-up as chassis and body supplier (Semi-

  39. Slide 39: KPI improvements on the backdrop of increased demand

    AT KPI improvements on the backdrop of increased demand, but ongoing volatile market conditions Order intake [€ mn] Comments YoY Investment highlights 27% Mission critical components & systems 1.468 1.383 1.090 Growth of core business and taking advantage of current market developments • Increased c

  40. Slide 40: Automotive Technology

    AT Automotive Technology [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Order intake 1,090 1,115 1,193 1,468 4,866 1,383 Sales 1,106 1,143 1,206 1,369 4,825 1,302 EBITDA 94 57 64 121 336 100 EBITDA adjusted 94 58 65 122 338 100 EBIT 38 (4) (17) 35 53 28 EBIT adjusted 38 3 6 61 108 43 EBIT adj. margin (%)

  41. Slide 41: No. 1 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 (21/22) 10.5 Mt 10 sq km Automotive Consumer durables Automotive Crude steel Duisburg area Household production One of the largest EU industrial sites Packaging Construction Engineering 9.5 Mt 20 Other Shipment

  42. Slide 42: #1 German and #2 EU producer of premium steel products

    SE #1 German and #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

  43. Slide 43: Largest integrated European steel mill strategically located in the centre of Europe

    SE Largest integrated European steel mill strategically located in the centre of Europe Advantages in efficient logistics Integrated steelworks and downstream facilities Efficient supply chain implying ease of transport, rapid response in close proximity to demand centres and just-in-time deliveries

  44. Slide 44: Higher prices and benefitting from long-term contract structure

    SE Higher prices and benefitting from long-term contract structure, partly offset by higher cost base Shipments [kt] Comments YoY Investment Highlights #1 German and #2 EU producer of premium steel (15)% products • Shipments down to quarterly record low of 1.9 mt 2.281 2.263 1.940 due to lower order

  45. Slide 45: Steel Europe

    SE Steel Europe [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Order intake 2,481 3,389 3,098 2,844 11,811 3,035 Sales 2,669 3,392 3,558 3,538 13,156 2,945 EBITDA 198 571 461 348 1,579 256 EBITDA adjusted 198 555 451 285 1,489 247 EBIT 112 495 (3) 283 887 186 EBIT adjusted 124 479 376 221 1,200 177 EBIT a

  46. Slide 46: Marine Systems is Germany's fully integrated system provider

    MS Marine Systems is Germany’s fully integrated system provider with a worldwide footprint A Naval Powerhouse Fully integrated system provider System provider Submarines Surface Vessels Naval Electronics Services The only fully integrated Naval Powerhouse for submarines, surface vessels, naval elect

  47. Slide 47: Understanding the long term business model

    MS Understanding the long term business model Decommissioning Order Commissioning & Disposal Negotiation: Production: Service life: 3-5 years 5-12 years 25-40 years Acquisition Engineering Procurement Construction Service • Tailor made operation models such as general contractor with manufacturing a

  48. Slide 48: Performance of key metrics well on track

    MS Performance of key metrics well on track Order intake [€ mn] Comments YoY Investment Highlights • Orders in Maintenance, Service and Marine Industry leading Maritime Portfolio (72)% Electronics 479 320 • Extension of existing surface vessel contracts in Operating in highly attractive markets 133

  49. Slide 49: Marine Systems

    MS Marine Systems [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Order intake 479 3,144 288 320 4,232 133 Order backlog 10,880 13,860 13,658 13,615 13,615 13,098 Sales 377 476 411 567 1,831 508 EBITDA 15 20 17 37 89 33 EBITDA adjusted 22 20 18 37 96 35 EBIT (2) 3 2 20 24 18 EBIT adjusted 6 3 3 20 32 20 EB

  50. Slide 50: Transactions with sig. effect on KPIs; majority of remaining businesses with improvements

    MT Transactions with sig. effect on KPIs; majority of remaining businesses with improvements Order intake [€ mn] Comments YoY Updates on businesses and portfolio nucera (hydrogen electrolysis business) (64)% • Transaction-related sig. down; most of remaining − Order funnel expanding 2.567 1.724 busi

  51. Slide 51: Multi Tracks

    MT Multi Tracks [€ mn] Sale of AST in Jan 2022 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 Order intake 2,567 1,294 914 1,724 6,499 913 Sales 1,540 993 728 839 4,101 779 EBITDA (7) (29) (54) 71 (17) (4) EBITDA adjusted 24 (14) (46) (60) (95) (3) EBIT (50) (49) (73) 28 (143) (18) EBIT adjusted (1) (33) (62) (7

  52. Slide 52: Corporate Headquarters

    HQ Corporate Headquarters [€ mn] 2021/22 2022/23 Q1 Q2 Q3 Q4 FY Q1 EBITDA (61) (46) (40) (43) (191) (44) EBITDA adjusted (51) (36) (31) (35) (153) (43) EBIT (61) (47) (41) (44) (193) (44) EBIT adjusted (51) (36) (31) (36) (154) (43) BCF (57) (65) (24) (51) (197) (30) Employees 622 618 610 615 615 60

  53. Slide 53: Content

    Content Page tk Introduction 2-6 Quarterly Update 7-17 Group Overview and Financials 18-24 Segment Overview and Financials 25-52 ESG and Green Transformation 53-66 Appendix 67-85 53 | thyssenkrupp AG l Investor Relations l February 2023

  54. Slide 54: 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

  55. Slide 55: 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

  56. Slide 56: Businesses from thyssenkrupp are full of opportunities

    Businesses from thyssenkrupp are full of opportunities Technologies from thyssenkrupp are paving the way for the hydrogen economy and the green transformation Demand Steel Europe • Green steel production by using large quantities of hydrogen will significantly reduce climate- harming emissions Deman

  57. Slide 57: Promising growth and value opportunities from multiple 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

  58. Slide 58: tkH2Steel

    tkH2Steel Roadmap to reduce CO2 by >30% until 2030 and become a climate neutral steel location by 2045 Before 2045 Complete implementation of the transformation Climate-neutral steel production without coal-based blast furnace Until 2030 Second DR-plant with melting units (SAF) Replacement of the se

  59. Slide 59: Green transformation – Clearly defined master plan to reduce CO2 emissions

    Green transformation – Clearly defined master plan to reduce CO2 emissions Up to 2025 From 2026 Up to 2030 Up to 2045 Replace blast furnace with DR plant + melting unit CO2 saving: 2% 20 % > 30% 100% Output bluemint® Steel: 50 – 500 kt/a ~ 3 m t/a ~ 5 m t/a 11.5 m t/a Advantages – tkH2Steel technolo

  60. Slide 60: DR plant with melting unit produces electrical hot metal

    Centerpiece of the transformation: DR plant with melting unit produces “electrical hot metal“ INNOVATIVE PROCESS WITH CLEAR ECOLOGICAL CONVENTIONAL BLAST FURNACE DR PLANT WITH MELTING UNIT AND ECONOMIC ADVANTAGES Carbon as reducing agent and Hydrogen as reducing agent in DR plant energy carrier Gree

  61. Slide 61: Doubling the capacity to enter the growing green steel market

    Doubling the capacity to enter the growing green steel market through larger DR plant Investment decision taken for Innovative combination of DR plant with 2 smelters DR plant smelter combination 2,5 2x mt DRI capacity 1,2 Initially Direct reduction (DR) plant & 2 smelters (SAF) Execution planned Po

  62. Slide 62: Our 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

  63. Slide 63: Indirect Financial Targets (IFTs) to track progress in sustainability

    Indirect Financial Targets (IFTs) to track continuous progress in sustainability Targets Achievements FY 2020/21 Targets FY 2021/22 Annual energy efficiency gains of 110 GWh in FY 2021/22 325 GWh ≥ 110 GWh 255 GWh Annual reduction of emissions by 1 t CO2 per mn € sales 37.5 t CO2 per - 28.9 to 34.5

  64. Slide 64: Women in leadership positions | Further increase in 2022

    Women in leadership positions | Further increase in 2022 Incl. Elevator Technologies (ET) (discontinued operations) • Increase from 8.8% in Target (LTI) 17,0 2013 to 13.1% in FY 25/26: 21/22; Start of internal target: • thyssenkrupp has set 15% until 2020 13,1 12,6 itself the “Fair Share” 11,6 12,0

  65. Slide 65: Group Accident Frequency Rate target adaption

    The adaption of the agreed target scheme for the Group Accident Frequency Rate from the next FY onwards results in a target value of 2.3 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.

  66. Slide 66: Key Environmental Data

    Key Environmental Data Unit 2019 / 2020 2020 / 2021 2021 / 2022 Energy Total energy consumption TWh 68.8 74.0 66.1 • In comparison to fiscal year 2020/2021 Greenhouse Gas emissions thyssenkrupp has reduced its GHG Scope 1 Mio. t CO2e 21.01 22.81 21.4 emissions by more than 1.5 mio t CO2e. Scope 2 Mi

  67. Slide 67: Content

    Content Page tk Introduction 2-6 Quarterly Update 7-17 Group Overview and Financials 18-24 Segment Overview and Financials 25-52 ESG and Green Transformation 53-66 Appendix 67-85 67 | thyssenkrupp AG l Investor Relations l February 2023

  68. Slide 68: 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

  69. Slide 69: Germany accounts for majority of pension plans

    Germany accounts for majority of pension plans [Group, FY 2021/22; € 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 Ge

  70. Slide 70: Net periodic payments exceed service costs

    Net periodic payments exceed Service costs and amortize pension liability by ~ €150 mn (p.a.) [Group, € mn] Non-cash employees earning Cash to pensioners future pension payments (482) 4 65 7,647 150 (339) (143) 143 (41) Net periodic pension cost (219) (1,912) 5,573 Net periodic payment 380 0.90 3.70

  71. Slide 71: Segment Overview – Quarterly Order Intake

    Segment Overview – Quarterly Order Intake [Continuing operations - € mn] 2021/22 2022/23 Δ Q1 Q1 Q2 Q3 Q4 FY Q1 yoy yoy (ex FX)1 Materials Services 3,722 4,533 4,095 3,671 16,021 3,348 (10%) (13%) Industrial Components 601 707 720 764 2,792 783 30% 25% Automotive Technology 1,090 1,115 1,193 1,468 4

  72. Slide 72: Segment Overview – Quarterly Sales

    Segment Overview – Quarterly Sales [Continuing operations - € mn] 2021/22 2022/23 Δ Q1 Q1 Q2 Q3 Q4 FY Q1 yoy yoy (ex FX)1 Materials Services 3,290 4,446 4,793 3,916 16,444 3,246 (1%) (5%) Industrial Components 604 707 702 754 2,766 663 10% 5% Automotive Technology 1,106 1,143 1,206 1,369 4,825 1,302

  73. Slide 73: Sales by region FY 2021/22

    Sales by region FY 2021/22 [Continuing Operations, %] Materials Industrial Automotive Steel Marine Multi thyssenkrupp Services Components Technology Europe Systems Tracks Cont. Ops. Worldwide (€mn) 16,444 2,766 4,825 13,156 1,831 4,101 41,140 DACHLI1 34.5 21.3 31.7 57.6 26.1 15.3 36.4 Germany 31.8 1

  74. Slide 74: Sales by customer group FY 2021/22

    Sales by customer group FY 2021/22 [Continuing Operations, %] Materials Industrial Automotive Steel Marine Multi thyssenkrupp Services Components Technology Europe Systems Tracks Cont. Ops. Overall (€mn) 16,444 2,766 4,825 13,156 1,831 4,101 41,140 Automotive 12.3 37.9 93.4 23.0 0.0 23.0 27.9 Steel

  75. Slide 75: 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 Materials Services 219 331 393 27 970 22 % 6.7 7.5 8.2 0.7 5.9 0.7 Industrial Components 57 67 53 73 250 38 % 9.5 9.4 7.6 9.6 9.0 5.8 Automotive Technology 38 (4) (17) 35 53 28 % 3.4 (0.3) (

  76. Slide 76: 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 Materials Services 219 336 386 (104) 837 20 % 6.7 7.5 8.1 (2.7) 5.1 0.6 Industrial Components 56 65 49 64 234 38 % 9.4 9.1 7.0 8.5 8.4 5.8 Automotive Technology 38 3 6 61 108 43 % 3.4 0

  77. Slide 77: Segment Overview – Quarterly BCF and Free Cash Flow 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 BCF Materials Services (391) (282) 268 827 422 (113) BCF Industrial Components 42 (26) 97 64 176 43 BCF Automotive Technology 136 (4) (39) 59 152 22 BCF

  78. Slide 78: 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 Total shipments kt 11,096 9,849 8,138 9,114 2,086 2,301 2,275 2,038 8,701 2,143 MX Materials Stockholding and Processing kt 5,944 5,784 5,087 5,275 1,167 1,407 1,200 1,1

  79. Slide 79: Liquidity analysis and maturity profile of gross financial debt

    Liquidity analysis and maturity profile of gross financial debt as of December 31, 2022 [€ mn] 8,680 Available committed credit facilities 1.510 Cash and 1 cash equivalents 7.170 31% 46% 19% 3% 0% 1% 1.522 1.028 628 108 8 15 12/31/2022 2022/23 2023/24 2024/25 2025/26 2026/27 after (9 month) 2026/27

  80. Slide 80: 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 stable 80 | thyssenkrupp AG l Investor Relations l February 2023

  81. Slide 81: Reconciliation of EBIT Q1 2022/23 from P&L

    Re-conciliation of EBIT Q1 2022/23 from P&L [Continuing Operations, € mn] P&L structure EBIT definition Net sales 9,018 Net sales 9,018 Cost of sales (7,851) Cost of sales (7,851) SG&A, R&D (995) SG&A, R&D (995) Other income/expense 65 Other income/expense 65 Other gains/losses 4 Other gains/losses

  82. Slide 82: thyssenkrupp shareholder structure as of September 2022

    thyssenkrupp shareholder structure as of September 2022 Investors Regional split AKBH Undisclosed Foundation Rest of the World Europe ~21% 1.0% 10,0% 19,0% 5,0% UK/Ireland Free Float ~79% Private ~15% Investors ~64% International 45,0% 20,0% Mutual Funds Germany North America incl. AKBH Foundation S

  83. Slide 83: 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

  84. Slide 84: Further Investor Relations Information

    Further Investor Relations Information IR contact: +49 201-844-536480 | ir@thyssenkrupp.com Upcoming IR Events February 15, 2023 HSBC Corporate Day, Düsseldorf March 21/22, 2023 BNP Paribas Exane Basic Materials Conference, London March 28-30, 2023 Jefferies Pan-European Mid-Cap Conference, London U

  85. Slide 85: 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

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