Thyssenkrupp Ag · XETR:TKA
Thyssenkrupp — Davy 1-1 Industrials Conference 2012
95 slides from Thyssenkrupp's conference presentation, Sep 13, 2012
Slide 1: Davy 1-1 Industrials Conference
Davy 1-1 Industrials Conference September 13, 2012
Slide 2: Agenda
Agenda { Key Figures, Group Outlook and Strategic Way Forward { Business Area Performance { Appendix Davy 1-1 Industrials Conference September 13, 2012 1 Developing the future.
Slide 3: Q3 2011/12 Highlights – Continued Operations
Q3 2011/12 Highlights – Continued Operations Order intake (in €m) not consolidated { Capital Goods order intake: underlying trend solid -21% yoy -12% qoq • Record level at Elevator Technology 12,984 11,596 10,231 • Yoy decline at Marine Systems due to MS big ticket order in Q3 prior year 7,483 6,383
Slide 4: Economic Uncertainty Weighing on Orders, Cap Goods Underlying Solid
Economic Uncertainty Weighing on Orders, Cap Goods Underlying Solid Order intake – continued operations (million €) Group ~€2 bn submarine -21% -12% order from yoy qoq Turkish Navy 12,984 11,596 10,231 • ET: record order intake Book-to-bill: in Q3 driven by new inst. >1 in China, India and the US •
Slide 5: EBIT – Solid Contribution from Capital Goods
EBIT – Solid Contribution from Capital Goods, Materials ex AM Positive EBIT adjusted – continued operations (million €) Group 261 435 570 495 83 134 -9% 122 Capital Goods Capital Goods margin 485 484 451 444 453 444 Materials margin 409 (excl. Steel Americas) 281 205 Materials 144 Materials margin (
Slide 6: All Continued Operations with Positive EBIT Performance (Except AM)
All Continued Operations with Positive EBIT Performance (Except AM) EBIT adjusted (million €); EBIT adjusted margin (%) 9.2 11.6 10.3 322 10.0 SE 1.0 1.8 151 132 147 ET 30 52 13.9 13.6 11.7 AM (190) 131 115 140 PT (228) (262) 3.7 7.9 7.2 2.7 6.8 2.6 MX 149 90 92 141 128 134 CT 0.0 1.1 35.5 19** 12.9
Slide 7: Steel Americas – Underlying Progress in a Challenging Environment
Steel Americas – Underlying Progress in a Challenging Business Environment Diluted by Inventory Writedowns and Translation Effects EBIT adjusted in €m Q3 Q2 cont’d challenging Q3 Q4 et seqq.: business env’t Focus on (190) (184) (228) • completion of technical (319) (288) revenue/ FX/ (262) ramp-up (
Slide 8: Elevator – Temporary Margin Dilution by Regional Development
Elevator – Temporary Margin Dilution by Regional Development Sales split/growth Elevator by region Development by region, Operating Units Sales and margin, Operating Units Sales, €bn Growth Americas Margin % Sales { Americas: normalization of NI margins +12% (past construction boom years) 5.3 4.7 As
Slide 9: Cash Flow Profile with Significant QoQ Improvement
Cash Flow Profile with Significant QoQ Improvement OCF – continued operations (million €) Capex – continued operations (million €) 9M (396) (526) 1,782 1,197 843 902 463 406 325 150 Q3 Q2 Q3 Q3 Q2 Q3 2010/11 2011/12 2010/11 2011/12 FCF – continued operations (million €) Net financial debt – incl. di
Slide 10: Effective Cash Control Already Leading to Improvements
Effective Cash Control Already Leading to Improvements… FCF from continued operations (billion €) … and substituting for disproportionate year-end measures! 1.4 1.2 0.9 0.9 1.0 FCF Group 0.4 excl. 0.1 Steel Americas 0 (0.3) (0.2) (0.7) (0.3) FCF (0.7) (0.5) (0.5) Steel Americas (1.2) (0.8) FCF Group
Slide 11: Solid Financial Situation
Solid Financial Situation Liquidity analysis and maturity profile of gross financial debt as of June 30, 2012 (million €) 7,283 Cash and 3,101* cash equivalents Total: 8,901 Available committed 4,182 2,005 1,979 1,746 credit facilities 1,488 973 710 4th Quarter 2012/13 2013/14 2014/15 2015/16 after
Slide 12: Additional Cost Measures Complementing Stringent Cash Control
Additional Cost Measures Complementing Stringent Cash Control (Performance + Portfolio) Plant Steel Europe/ Materials Components Elevator Technology/ Corporate Steel Americas Services Technology Technology Marine Systems • Short-time work • Hiring freeze • Headcount • Headcount • PT: Headcount • Hir
Slide 13: Outlook FY 2011/12 – Continued Operations
Outlook FY 2011/12 – Continued Operations Group { EBIT adjusted in mid three-digit million euro range FY { Capex max. €2 bn 2011/12 { NFD: around the same level as in Q3 Business Areas EBIT adjusted, in million € Q3 Q4E Steel Europe 52 Flat Improvements from ramp-up, but offsetting Steel Americas (2
Slide 14: ThyssenKrupp – Strategic Way Forward
ThyssenKrupp – Strategic Way Forward % ~90 leted Portfolio Change Performance Strategic Financial p Optimization + Management + Orientation Æ Push + Stabilization com Exit Non-Core Leadership & Profit & Cash Grow Core Financing Businesses Culture Improvement Businesses Capacities Ongoing clos { Lead
Slide 15: Agenda
Agenda { Key Figures, Group Outlook and Strategic Way Forward { Business Area Performance { Appendix Davy 1-1 Industrials Conference September 13, 2012 14 Developing the future.
Slide 16: Steel Europe – Q3 2011/12 Highlights
Steel Europe – Q3 2011/12 Highlights Order intake in €m Shipments in 1,000 t EBIT in €m; EBIT adj. margin in % Ø rev/t indexed (Q1 2004/05=100) EBIT EBIT adjusted 9.2 140 146 147 136 138 8.3 2,990 2,511 322 3,006 3,431 4.0 52 3,289 3,196 253 3,018 2,688 2,705 2,580 30 1.8 102 1.0 21 47 Q3 Q2 Q3 Q3 Q
Slide 17: Steel Americas – Q3 2011/12 Highlights
Steel Americas – Q3 2011/12 Highlights Order intake in €m Production & shipments in 1,000 t EBIT in €m 880 852 786 914 800 EBIT EBIT adjusted Slab production (190) (184) (288) (228) CSA (230) Q3 Q2 Q3 (262) 632 2010/11 2011/12 (263) 583 504 777 (2,258) 437 413 622 636 Shipments 403 421 Q3 Q2 Q3 Stee
Slide 18: Materials Services – Q3 2011/12 Highlights
Materials Services – Q3 2011/12 Highlights Order intake* in €m Materials warehousing shipments in 1,000 t EBIT in €m; EBIT adj. margin in % *thereof materials warehousing business ~ 60% EBIT EBIT adjusted 149 136 90 92 81 74 3.7 40 3,973 1,440 3.6 2.6 2.7 3,618 3,573 1,387 1,254 1,423 1,413 1.3 3,23
Slide 19: Elevator Technology – Q3 2011/12 Highlights
Elevator Technology – Q3 2011/12 Highlights Order intake in €m Units under Maintenance EBIT in €m; EBIT adj. margin in % EBIT EBIT adjusted 9M: 4,582 >1m 9M: 3,984 Record level ~800,000 12.4 11.6 1,575 332 1,541 1,466 10.5 10.3 1,320 172 10.0 1,297 142 147 151 132 134 113 118 Q3 Q2 Q3 04/05 11/12 Q3
Slide 20: Plant Technology – Q3 2011/12 Highlights
Plant Technology – Q3 2011/12 Highlights Order intake in €m Order backlog in €bn EBIT in €m; EBIT adj. margin in % EBIT EBIT adjusted 9M: 3,009 9M: 2,637 13.9 13.3 13.6 10.8 11.7 1,466 6.4 6.6 6.6 6.5 6.3 140 131 129 1,097 125 115 934 871 832 114 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 2010/11 2011/12 2010/11 20
Slide 21: Components Technology – Q3 2011/12 Highlights
Components Technology – Q3 2011/12 Highlights Order intake in €m Quarterly order intake auto components EBIT in €m; EBIT adj. margin in % Q3 2011/12: still ~20% above pre-crisis level EBIT EBIT adjusted (average of FY 2007/08) 7.9 7.2 6.9 6.8 1,858 5.9 459 1,811 1,828 1,713 1,778 169 134 141 161 121
Slide 22: Marine Systems – Q3 2011/12 Highlights
Marine Systems – Q3 2011/12 Highlights Order intake in €m Order backlog in €m EBIT in €m; EBIT adj. margin in % ~€2 bn submarine order EBIT EBIT adjusted Record level from Turkish Navy 35.5 2,155 78 6,990 12.9 6,958 7.2 39 6,826 62 61 7.8 731 6,532 21 10.7 23 6,397 456 (116) 247 222 Q3 Q2 Q3 Q3 Q2 Q
Slide 23: Discontinued Operation: Stainless Global – Q3 2011/12 Highlights
Discontinued Operation: Stainless Global – Q3 2011/12 Highlights Order intake in €m Shipments in 1,000 t (hot- and cold-rolled) EBIT in €m; EBIT adj. margin in % Ø transaction price/t EBIT SL USA indexed (Q1 2004/05=100) (29) (44) (51) (31) (54) 129 116 107 111 110 (51) (56)* 19* (21)* 0 1.1 1,618 1
Slide 24: Agenda
Agenda { Key Figures, Group Outlook and Strategic Way Forward { Business Area Performance { Appendix Davy 1-1 Industrials Conference September 13, 2012 23 Developing the future.
Slide 25: Financial Calendar – FY 2011/12 & FY 2012/13
Financial Calendar – FY 2011/12 & FY 2012/13 { September Conferences UBS Best of Germany Conference, New York (12th) Davy 1-1 Industrials Conference, New York (13th) Deutsche Bank German Corporate Conference, San Francisco (17th) Credit Suisse Global Steel & Mining Conference, London (19th) Berenber
Slide 26: Contact Details
Contact Details ThyssenKrupp Corporate Center Investor Relations Phone numbers +49 201-844- Dr. Claus Ehrenbeck -536464 Head of Investor Relations To be added to the Christian Schulte -536966 Klaudia Kelch -538371 IR mailing list, IR Manager (Deputy Head) IR Manager send us a brief e-mail Rainer Hec
Slide 27: Perspective FY 2011/12 – Continued Operations
Perspective FY 2011/12 – Continued Operations { EBIT adjusted in mid three-digit million euro range Group { Capex max. €2 bn { NFD: around the same level as in Q3 Sales & Service Cost savings of ~ €300 m 1% (~80% have been realized already) complemented by additional cost measures Purchasing 41% 44%
Slide 28: Our Value Creation Program
Our Value Creation Program Portfolio Change Performance Strategic Financial Optimization Management Orientation Push Stabilization Positioning of + + + ThyssenKrupp Exit Grow Leadership & Profit & Cash Financing Non-Core Core Culture Improvement Capacities Businesses Businesses + + Further Ramp-up &
Slide 29: ThyssenKrupp – Diversified Industrial Company
ThyssenKrupp – “Diversified Industrial Company” Cross-operational synergies Focus on Efficient capital allocation based Best-in-class performance core activities with leading on clearly defined key figures within all businesses market positions Infrastructure Leading Engineering Competence Resources
Slide 30: ThyssenKrupp Group
ThyssenKrupp Group ThyssenKrupp FY 2010/11: Sales €43.4 bn • EBIT adj. €1,762 m • TKVA €(2,962) m • Employees 180,050 * The TK Group consists of ~ 800 legally independent companies, organized, existing and operating under the laws of 70 countries, ultimately led by TK AG. Steel Sales: €12.8 bn Steel
Slide 31: Leading Engineering Competence Supports Sustainable Progress Worldwide
ThyssenKrupp’s Leading Engineering Competence Supports Sustainable Progress Worldwide Demand Demand Drivers Business opportunities Limitations (“more”) (“better”) Demography Infrastructure Climate Reduction of change More consumer CO2 emissions; and capital renewable goods energies Leading engineeri
Slide 32: Leading Engineering Competence to Create Better Solutions
Leading Engineering Competence to Create “Better” Solutions Product/service examples Leading engineering competence Material Mechanical Plant High-strength steel Slewing Bearings Cement Plants Up to 40% weight Essential component of Up to - 40% of direct reduction of automotive wind turbines CO2 emi
Slide 33: 5 Year Performance Track Record
5 Year Performance Track Record Continued operations and new EBIT definition from FY 2009/10 on EBIT adjusted, EBIT adjusted margin (million €, %) SE, MX and ET 2006/07 and 2007/08 referring to old organizational structure 8.1 7.4 11.3 12.5 12.2 8.6 9.6 641 4,197 3,933 4.1 598 646 3.4 475 (0.9) 405
Slide 34: Portfolio Optimization: Well on Track
Portfolio Optimization: Well on Track Already signed or closed transactions comprising ~ 90% of sales to be divested May 13, 2011 November 30, 2011 January 31, 2012 June 29, 2012 Decision for Sale of Xervon Group Sale of civil shipbuilding Sale of Waupaca Strategic Way Forward to Remondis activities
Slide 35: Systematic Benchmarking Aiming at Best-in-Class Operations
Systematic Benchmarking Aiming at Best-in-Class Operations Selected Peers / Relevant Peer Segments Steel Elevator • ArcelorMittal / Flat Carbon Europe Europe Technology • UTC / Otis • Salzgitter / Steel • KONE • Tata Steel / Europe • Schindler • Voestalpine / Steel Steel Plant • Chemicals: • AK Stee
Slide 36: Program Realizing Efficiency Potentials Across The Group
Program Realizing Efficiency Potentials Across The Group Targeted cost savings FY 2011/12 Exemplary impact measures Sales & Service 1% Material Services Fleet management optimization across North American operations Operations Purchasing Optimization of preventive maintenance schedules to increa
Slide 37: Group Overview (I) – Continued Operations
Group Overview (I) – Continued Operations 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 9,997 11,328 12,984 10,809 45,118 10,078 11,596 10,231 Sales €m 10,020 10,680 11,506 11,150 43,356 9,896 10,613 10,710 EBITDA €m 592 827 944 846 3,209 471 432 659 EBITDA adjusted €m 592 827 965 865 3,24
Slide 38: Group Overview (I) - Incl. Discontinued Operations
Group Overview (I) - Incl. Discontinued Operations 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 11,260 12,848 14,120 12,019 50,247 11,260 13,008 11,362 Sales €m 11,370 12,266 12,851 12,605 49,092 11,138 12,155 12,116 EBITDA €m 645 932 983 825 3,385 412 424 573 EBITDA adjusted €m 645 932 1
Slide 39: Group Overview (II) – Continued Operations
Group Overview (II) – Continued Operations 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Capital expenditures* €m 716 603 463 723 2,505 466 406 325 Depreciation/amort. €m 340 401 407 2,293 3,441 514 367 375 Operating cash flow €m (1,094) (145) 843 1,408 1,012 (1,578) 150 902 Cash flow from divestm. €m 119
Slide 40: Special Items
Special Items Business Area 2010/11 2011/12 (million €) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Steel Europe Asset disposals (9) (5) Steel Americas: Impairment related charges (2,075) (2,075) Asset disposal (2) (1) Materials Services: Disposal Xervon (55) (55) Impairment (16) Rail cartel case (133) Elevator Technol
Slide 41: Economic Uncertainty Weighing on Sales, Cap Goods with Modest Growth
Economic Uncertainty Weighing on Sales, Cap Goods with Modest Growth Sales – continued operations (million €) Group -7% +1% yoy qoq 11,506 10,613 10,710 • ET: increase driven by MX 3,980 Asia and partly Europe & Americas; qoq mainly 3,408 3,369 due to billing; yoy due 479 MS 220 294 to business grow
Slide 42: Reported EBIT Positively Affected by Disposal Gain of Waupaca
Reported EBIT Positively Affected by Disposal Gain of Waupaca EBIT adjusted – continued operations (million €) EBIT – continued operations (million €) -79% -9% -46% +€220 m yoy qoq yoy qoq 570 549 296 134 122 76 Q3 Q2 Q3 Q3 Q2 Q3 2010/11 2011/12 2010/11 2011/12 Special items Q3 2011/12: €174 m, ther
Slide 43: Positive Tax Effect Supporting Bottom-Line
Positive Tax Effect Supporting Bottom-Line Income after tax and net income reconciliation Q3 2011/12 (million €) EPS EPS cont. ops. incl. discont. ops. 0.46 0.21 (155) 296 76 (130) Tax 217 income 87 EBIT Net Income Discont. Net income financial after tax operations (incl. discont. ops.) line incl. I
Slide 44: Tight Capex Management Going Forward
Tight Capex Management Going Forward Cash flows from investing activities (billion €) Steel Americas and 1.2 Stainless USA* Projects Capex 4.2 4.1 3.5 0.7 9M 2011/12 2.8 2.5 Depreciation max. €2 bn 0.3 0.2 0.4 0.4 0.6 Divestments 2007/08 2008/09 2009/10 2010/11 2010/11 2011/12E continued operations
Slide 45: Strong OCF Fueled by Declining Inventories and Advance Payments
Strong OCF Fueled by Declining Inventories and Advance Payments Q3 2011/12 (million €) mainly 769 • advance payments at Marine Systems • cartel fine to be paid (in P&L; cash-out in Q4) 375 (431) Income from continued operations 217 227 (218) 902 871 130 (5) (32) 87 D/A Inventories Trade Others Disco
Slide 46: Declining Inventories at Steel Europe and Steel Americas
Declining Inventories at Steel Europe and Steel Americas Steel Europe Steel Americas Materials Services Inventories Inventories Inventories 4,000 €m days 120 1,200 €m days 800 2,500 €m days 60 1,000 2,000 50 3,000 600 80 800 40 1,500 2,000 600 400 30 1,000 40 400 20 1,000 200 200 500 10 0 0 0 0 0 0
Slide 47: Decrease in NFD due to Strong OCF and Divestments
Decrease in NFD due to Strong OCF and Divestments Q3 2011/12 (million €) 9M 2011/12 (million €) (3,578) (5,800) Gearing 34.5% Gearing 735 (1,197) 63.8% (526) NFD Sep 2011 OCF Divestments (636) FCF (incl. disc. ops.) disc. ops. Capex* (598) Others FCF cont. operations (988) NFD (6,480) 436 June 2012
Slide 48: Increase in FCF by Strong Inventory Release
Increase in FCF by Strong Inventory Release FCF reconciliation Q3 2010/11 vs Q3 2011/12 (million €) 20 1,013 138 514 Δ Others Δ Capex 387 (46) Δ Income Δ NWC from cont. ops. FCF thereof: FCF cont. ops. Δ inventories 733 9M 2010/11 vs. 9M 2011/12 (million €) cont. ops. Q3 Δ receivables (205) Q3 Δ pay
Slide 49: OCF in 9M 2011/12 Impacted by Increase in NWC
OCF in 9M 2011/12 Impacted by Increase in NWC 9M 2011/12 (million €) 1,256 Others Inventories 8 OCF (incl. (613) OCF disc. ops.) 721 472 D/A (716) Other provisions (526) Trade accounts (470) (980) operations Discont. (204) Other assets/ (848) receivable Trade liabilities* Net accounts income payable
Slide 50: Decrease in NFD due to Strong OCF and Divestments
Decrease in NFD due to Strong OCF and Divestments Net financial position, equity and ratios (million €) Equity ratio 27.6% 23.4% 23.8% 23.8% 20.7% Gearing 13.8% 21.2% 36.4% 34.5% 63.8% 11,489 Equity 10,388 10,382 9,696 9,088 5,800 3,780 3,578 2,059 1,584 Net financial position Sep 2008 Sep 2009 Sep
Slide 51: ThyssenKrupp Rating
ThyssenKrupp Rating Long term- Short term- Outlook rating rating Standard & Poor’s BB B negative Moody’s Baa3 Prime-3 negative Fitch BBB- F3 negative Restoring / maintaining investment grade status with all three rating agencies is key! Davy 1-1 Industrials Conference September 13, 2012 50 Developin
Slide 52: Pension and Similar Obligations
Pension and Similar Obligations Accrued Pension and Similar Obligations Expected Normalized* Development of Accrued (in €m) Pension and Similar Obligations (in €m) 7,496 Other accrued * Assumption: unchanged discount rate 7,236 pension-related obl. 6,940 155 305 1,057 998 Accrued postretire- 603 men
Slide 53: Pension Obligations: ThyssenKrupp with Mature Pension Schemes
Pension Obligations: ThyssenKrupp with Mature Pension Schemes Net Periodic Pension Cost vs. Pension Benefit Payments (Defined Benefit Obligations*; FY 2010/11; in €m) * including continued and discontinued operations 45 (124) 126 566 398 351 Interest Expected return (Past) Service cost, Curtailment
Slide 54: Steel Europe – Key figures
Steel Europe Key figures 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 2,929 3,721 3,006 2,688 12,344 2,705 2,990 2,511 Sales €m 2,958 3,287 3,518 3,051 12,814 2,530 2,886 2,900 EBITDA €m 399 439 458 374 1,670 225 142 163 EBITDA adjusted €m 399 439 458 374 1,670 225 150 168 EBIT €m 258 300
Slide 55: Steel Europe: Output, Shipments and Revenues per Metric Ton
Steel Europe: Output, Shipments and Revenues per Metric Ton Crude steel output (incl. share in HKM) 1,000 t/quarter Shipments*: Hot-rolled and cold-rolled products 1,000 t/quarter Cold-rolled HKM share Hot-rolled; incl. slabs 3,553 3,542 3,385 3,349 3,590 3,324 3,431 3,431 3,289 3,196 3,071 3,142 83
Slide 56: Steel: Inventories and Months of Supply
Steel: Inventories and Months of Supply Inventories and Inventories and Inventories Months of Supply - Europe Months of Supply - USA China 3.0 7 9 4.5 9 Inventories MOS Inventories MOS Inventories [m t] [months] [m st] [months] [m t] 8 8 2.5 6 4.0 7 7 2.0 5 6 3.5 6 5 5 1.5 4 3.0 4 4 1.0 3 3 2.5 3 2
Slide 57: Efficient Operations & Customer Proximity
Efficient Operations & Customer Proximity Business Model ThyssenKrupp Steel Europe (I) Large Multiple Sales volume Scale Niches { Sustained economies of scale Duisburg 41 % { Optimum plant configuration 21 % 38 % { Short distances to key customers with long-standing relations: <5 23 % years 8% 250 k
Slide 58: Premium Product Mix and Attractive Customer Portfolio
Premium Product Mix and Attractive Customer Portfolio Business Model ThyssenKrupp Steel Europe (II) Large Multiple Scale Niches Premium Product Mix Steel Europe FY 2010/11 Sales by Industry Steel Europe FY 2010/11 in % of sales in % of sales Tailored Blanks Construction Hot Strip Others Automotive i
Slide 59: Steel Europe: Portfolio Optimization ThyssenKrupp Tailored Blanks
Steel Europe: Portfolio Optimization ThyssenKrupp Tailored Blanks Company & Products Sales by region RoW 2 { Pioneer, technology and world market leader for laser-welded blanks for the automotive industry Asia/ Germany 28 Pacific 18 (joining of individual steel sheets of different thickness, strengt
Slide 60: Steel Europe: Further Portfolio Measures signed
Steel Europe: Further Portfolio Measures signed Construction Group Company & Products Sales by region in % { One of Europe‘s biggest suppliers of lightweight not consolidated steel construction elements for roof, floor, wall and Germany 50 facade applications { Product examples & applications: Singl
Slide 61: Steel Americas – Key figures
Steel Americas Key figures 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 84 268 504 437 1,293 583 632 413 Sales €m 86 260 429 364 1,139 498 546 543 EBITDA €m (328) (211) (95) (252) (886) (205) (139) (171) EBITDA adjusted €m (328) (211) (95) (79) (713) (205) (137) (170) EBIT €m (378) (319)
Slide 62: Steel Americas: Transatlantic Steel Concept
Steel Americas: Transatlantic Steel Concept (I) under stra tegic revie w BA Steel Americas BA Steel Europe Targeted major transatlantic production capacities Capacity in Steel Americas Steel m metric tons p.a. Brazil NAFTA Europe** TK Steel USA TK Steel Slabs >5 - 15 ~4 m t Europe finished steel ~16
Slide 63: Steel Americas: Brazil
Steel Americas: Brazil Raw materials Integrated steel mill External sale of electricity Coal Coking Power plant plant Steam { Construction / ramp-up battery C Internal { Repair hot gas electricity ducts Gasholder consumption Coke BF gas Converter gas Pig iron Slabs Brammen USA Sinter plant PIT Iron
Slide 64: Steel Americas: USA
Steel Americas: USA Hot strip Cold rolled Hot strip P&O full-hard HDGL #1 Slabs HDGL #2 Cold strip Pickling line/ annealed Hot strip mill Cold strip mill CSA HDGL #3 Logistics { Exchange of furnace body { IT systems (warranty case) HDGL #4 Hot-dip galvanized Davy 1-1 Industrials Conference September
Slide 65: Well Positioned in Southeastern United States with Proximity to Mexico
Well Positioned in Southeastern United States with Proximity to Mexico Geographic position of TKS USA, our home market and BF & EAF competitors Mini-Mill Blast Furnace Industry (Non-Auto) Customers Auto Customers TKS USA 1) Size of Industry and Auto bubbles reflect the approximate number of customer
Slide 66: Migration of Automotive Production from North to South
Migration of Automotive Production from North to South – Production in TKS USA home market to exceed pre-crisis-levels by 2012 Light-Vehicle Production NAFTA Light-Vehicle Production Share of TKS USA Home Market in % TKS USA Home Market in million units 50% 8 7 40% 6 5 30% 4 20% 3 2 10% 1 Car produc
Slide 67: Comprehensive Customer Development Activities
Comprehensive Customer Development Activities Geared to Market-Oriented Ramp-up at ThyssenKrupp Steel USA Current Focus on Trials/Qualifications % Auto schem SSC at ic Planned 28 30 Gain customer order for approval process Shipments FY by 2010/ FY 11 2013/14 Establish / document technical set-up Cus
Slide 68: Materials Services – Key figures
Materials Services Key figures 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 3,259 3,918 3,973 3,618 14,768 3,201 3,573 3,235 Sales €m 3,311 3,704 3,980 3,781 14,776 3,145 3,408 3,369 EBITDA €m 117 197 181 166 661 65 99 (20) EBITDA adjusted €m 117 197 181 173 668 65 98 130 EBIT €m 85 163 1
Slide 69: Sales by Region & Customer Groups 2010/11
Sales by Region & Customer Groups 2010/11 (Total: €14.8bn) Sales by Region Sales by Customer Groups Trading 19 Germany 41 Other industries 11 Other EU 30 Engineering 13 Construction 9 Rest of Europe 5 NAFTA 19 Automotive 13 Asia 3 Energy 3 South America/ Rest of World 2 Other 10 Steel/steel- 22 (in
Slide 70: Unique Portfolio in Products and Services
Unique Portfolio in Products and Services Sales by products/services (%), FY 2010/11 Materials Services Stainless Steel 14 o trading 6 Pipes & Tubes o warehousing o processing o logistics Carbon Steel 38 15 NF-Metals o materials & inventory management o supply chain 4 Plastics management 11 Raw Mate
Slide 71: Elevator Technology – Key figures
Elevator Technology Key figures 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 1,306 1,358 1,320 1,297 5,281 1,466 1,541 1,575 Sales €m 1,299 1,267 1,298 1,389 5,253 1,348 1,322 1,429 EBITDA €m 189 165 168 353 875 132 139 156 EBITDA adjusted €m 189 165 168 194 716 161 148 168 EBIT €m 171 14
Slide 72: Regional Market Growth in Key Regions of Elevator Technology
Regional Market Growth in Key Regions of Elevator Technology Growth over 5 years p.a. USA Germany China Growth: Growth: Growth: +4% +1% +7% Spain Growth: India +1% Brazil Growth: Growth: +12% +5% Davy 1-1 Industrials Conference September 13, 2012 71 Developing the future.
Slide 73: Elevator Technology: Focus on China
Elevator Technology: Focus on China – We Are Growing Faster Than the Market Market (in units)1 Number of projects Railway Subway 300,000 CAGR: 8% planned Airports Stations Systems today ~100 >400 ~200 2006/07 2010/11 2015/16 Order Intake ThyssenKrupp CAGR: 18% 2006/07 2010/11 2015/16 Eton Hotel, Dal
Slide 74: Initiatives Contribute to Grow EBIT Margin to 15%
Initiatives Contribute to Grow EBIT Margin to 15% 1 Asia Initiative: Focus on fast growing markets 2 Service Initiative Multi -purpose facility India under construction Units under Maintenance Continuous improvement of service quality (UuM) 1.3 m UuM + 25% • China: Increase number of branches Innova
Slide 75: Plant Technology – Key figures
Plant Technology Key figures 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 1,016 896 1,097 1,466 4,474 871 934 832 Sales €m 897 969 943 1,195 4,004 943 983 1,027 EBITDA €m 115 148 149 138 550 134 125 150 EBITDA adjusted €m 115 148 149 138 550 134 124 149 EBIT €m 107 139 131 129 506 125 114
Slide 76: Plant Technology: Technology Portfolio Offering Growth Potential
Plant Technology: Technology Portfolio Offering Growth Potential Markets Technologies Market Positions Conversion Technologies Customer Products • Gas Reforming • Fertilizers Fertilizers: No.1 • Oil Refining • Organic Chemicals & Polymers: No.2 • Biotechnology Polymers Chemicals • Gasification • Bio
Slide 77: Plant Technology: Reference Projects
Plant Technology: Reference Projects Oil sand mining & processing plant Fertilizer complex 4 fully mobile crushing plants (ammonia & urea) in open pit coal mine Canada SORFERT, Algeria China Power Investm. Group Construction time: ~5 yrs Bodyshop Production Lines and Service contract Volkswagen, Rus
Slide 78: Plant Technology: Selected Orders Q3 2011/12
Plant Technology: Selected Orders Q3 2011/12 Chemicals Cement Mining PET plant with unique Semi-mobile crusher, belt wagon, Cement mill “melt-to-resin” technology* tripper cars and more equipment { Diverse equipment and { 2 PET plants, Geel, Belgium { Cement mill, Guinea replacement parts, Kazakhsta
Slide 79: Components Technology – Key figures
Components Technology Key figures 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 1,602 1,795 1,811 1,713 6,921 1,778 1,858 1,828 Sales €m 1,599 1,769 1,779 1,761 6,908 1,753 1,880 1,852 EBITDA €m 196 186 220 178 780 243 203 548 EBITDA adjusted €m 196 186 220 176 778 178 203 209 EBIT €m 127
Slide 80: Components Technology: Order Intake above Pre-Crisis Levels
Components Technology: Order Intake above Pre-Crisis Levels COMPONENTS TECHNOLOGY Automotive Components Industrial & Construction Machinery Passenger Cars/ Heavy Undercarriages for Large-diameter Light Comm. Vehicles Commercial Vehicles tracked/crawler equipm. bearings & rings Quarterly Order Intake
Slide 81: Components Technology: Quarterly production of passenger vehicles
Components Technology: Quarterly production of passenger vehicles (million) World (annual production PV & LCV) Germany (quarterly production) USA (LCV; quarterly production) Actual Forecast Actual Forecast 87.9 91.7 83.3 1.51.5 1.5 1.5 2.6 2.6 2.6 78.3 1.5 1.5 1.4 68.2 715 73.8 1.3 2.4 65.0 2.2 57.5
Slide 82: Components Technology: Strong Presence and Local Production in China
Components Technology: Strong Presence and Local Production in China Changchun Liaoyang Product: Steering Products: Coil Springs/ columns Stabilizers Shanghai Dalian Beijing Products: Undercarriages Product: Camshafts and components for construction vehicles Xuzhou and Qingdao Shanghai Slewing beari
Slide 83: Components Technology: Portfolio Optimization Waupaca
Components Technology: Portfolio Optimization ThyssenKrupp Waupaca closed Company & Products Sales by region { Largest global producer for gray, ductile and compacted graphite iron castings for the automotive, agricultural and construction industry America 100 Product examples: % Brake Brake Differe
Slide 84: ThyssenKrupp Bilstein – Division Coil Springs & Stabilizers
Components Technology: Portfolio Optimization ca ThyssenKrupp Bilstein – Division Coil Springs & Stabilizers rved-out Divison & Products Sales by region { Global Top 3 solution provider for vertical- and side Asia/Pacific 10 load compensation Germany 31 { Global Top 3 solution provider for roll stab
Slide 85: Components Technology: Further Portfolio Measures Berco Group
div Components Technology: Further Portfolio Measures est init ment iate Berco Group d Company & Products Sales by region in % { Supply of undercarriages on a just-in time basis to NAFTA 26 main earth moving machinery OEMs all over the world for initial assembly Germany 19 Product examples: Asia 5 %
Slide 86: Marine Systems – Key figures
Marine Systems Key figures 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 426 149 2,155 247 2,977 222 731 456 Sales €m 504 219 479 291 1,493 366 220 294 EBITDA €m 51 87 71 28 237 45 66 28 EBITDA adjusted €m 51 87 71 28 237 45 69 28 EBIT €m 46 84 62 21 214 (116) 61 23 EBIT adjusted €m 46 84
Slide 87: Marine Systems: Focused Organization – FY 2011/12
Marine Systems: Focused Organization – FY 2011/12 Business Area Marine Systems Kockums (KAB) Howaldtswerke - Deutsche Werft (HDW) Blohm + Voss Naval (BVN) Karlskrona / Malmö (SWE) Kiel Hamburg Submarines / Naval Surface Vessels Submarines Naval Surface Vessels Sales (€m): ~ 1,200 Employees: ~ 3,900
Slide 88: Discontinued Operation: Stainless Global
Discontinued Operation: Stainless Global Key figures 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 1,483 1,790 1,360 1,412 6,045 1,372 1,618 1,291 Sales €m 1,605 1,856 1,586 1,692 6,739 1,438 1,768 1,606 EBITDA €m 48 103 43 (6) 188 (57) (7) (86) EBITDA adjusted €m 48 103 43 (6) 188 (55) 17
Slide 89: Corporate: Overview
Corporate: Overview Corporate 2010/11 2011/12 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 31 33 32 47 143 33 39 34 Sales €m 31 33 32 47 143 35 37 34 EBITDA €m (78) (102) (109) (37) (326) (88) (109) (95) EBIT €m (88) (111) (120) (58) (377) (99) (119) (106) OCF €m 258 (452) (18) (553) (766) 221 (340) 1 Em
Slide 90: ThyssenKrupp-specific Key Figures (I): EBIT Definition Q3
ThyssenKrupp-specific Key Figures (I): EBIT Definition Q3 2011/12: Reconciliation “Income from operations” (P&L Structure) to EBIT P&L Structure EBIT definition Net sales 10,710 Net sales 10,710 - Cost of sales 1) (9,345) - Cost of sales 1) (9,345) - SG&A 1), R&D (1,269) - 1) SG&A , R&D (1,269) +/-
Slide 91: ThyssenKrupp-specific Key Figures (I): EBIT Definition 9M
ThyssenKrupp-specific Key Figures (I): EBIT Definition 9M 2011/12: Reconciliation “Income from operations” (P&L Structure) to EBIT P&L Structure EBIT definition Net sales 31,219 Net sales 31,219 - Cost of sales 1) (27,272) - Cost of sales 1) (27,272) - SG&A 1), R&D (3,811) - 1) SG&A , R&D (3,811) +/
Slide 92: Variable Compensation for the Executive Board at ThyssenKrupp
Compensation for the Executive Board at ThyssenKrupp ple { Linked to Group EBT and ROCE Exam tic) Performance period ma (sche (3 fiscal years) Performance in equal parts bonus { A quarter is paid out as phantom stock Share price development with a holding requirement of 3 years FY 1: FY 2: FY 3: Rig
Slide 93: Shareholder Structure
Shareholder Structure Undisclosed 11.57% Rest AKBH Foundation 25.33% of World 0.62% Europe 12.91% Free Float 74.67% UK/Ireland 9.25% Private International Germany 50.24% Investors 10.00% Mutual Funds 64.67% (incl. AKBH- North Foundation 25.33%) America 15.41% Source: ThyssenKrupp Shareholder ID 03/2
Slide 94: Our Mission Statement
Our Mission Statement We are ThyssenKrupp – The Technology & Materials Company. Competence and diversity, global reach, and tradition form the basis of our worldwide market leadership. We create value for customers, employees and shareholders. We Meet the Challenges of Tomorrow with our Customers. W
Slide 95: Disclaimer ThyssenKrupp AG
Disclaimer ThyssenKrupp AG “The information set forth and included in this presentation is not provided in connection with an offer or solicitation for the purchase or sale of a security and is intended for informational purposes only. This presentation contains forward-looking statements that are s