Thyssenkrupp Ag · XETR:TKA
Thyssenkrupp — Q2 2006/07 Earnings Presentation
80 slides from Thyssenkrupp's earnings presentation, June 2007
Slide 1: ThyssenKrupp
Presentation ThyssenKrupp, May/June 2007 1 ThyssenKrupp
Slide 2: Agenda
Presentation ThyssenKrupp, May/June 2007 2 Agenda { Overview Q2 2006/07 and Outlook FY 2006/07 { New Mid-term and Long-term Targets { Investment Strategy for Future Growth { US Greenfield Projects: Steel and Stainless { Financial Calendar - What’s Next? { Appendix ThyssenKrupp
Slide 3: Q2 2006/07 – Overview
Presentation ThyssenKrupp, May/June 2007 3 Q2 2006/07 – Overview Continuing the excellent performance in Q2 { Order intake €14.0 bn, +9% yoy { Sales €13.1 bn, +11% yoy { EBT excl. major nonrecurring items €1,052 m, +36% yoy − Elevator fine € 480 m EBT as reported € 572 m { TKVA (incl. Elevator fine)
Slide 4: Highlights
Presentation ThyssenKrupp, May/June 2007 4 Highlights { Outlook FY 2006/07 raised: EBT €3.5 bn - excluding major nonrecurring items; sales €50 bn { Mid-term targets raised, long-term targets set: in €bn EBT TKVA Sales 2009/10 (mid-term) 4.0 2.5 60 2011/12 (long-term) 4.5-5.0 3.0 65 { Green light for
Slide 5: Group Overview – EBT Track Record
Presentation ThyssenKrupp, May/June 2007 5 Group Overview – EBT Track Record EBT million € 3,500* CAGR: 58.0% p.a. 2,623 H1 619 2,114 * excluding 1,677 major 1,477 806 1,052* nonrecurring items 800 773 421 1,062 425 2001/02*/** 2002/03** 2003/04** 2004/05 2005/06 2006/07 ** US GAAP ThyssenKrupp
Slide 6: Group Outlook 2006/07: EBT incl. Major Nonrecurring Items >€3.0 bn
Presentation ThyssenKrupp, May/June 2007 6 Group Outlook 2006/07: EBT incl. Major Nonrecurring Items >€3.0 bn EBT outlook in €bn Major nonrecurring items H1 { Elevator fine: €480 m (expense: Q2, cash out: Q3) 3.5 >3.0 H2 { Gain from sale of property portfolio (Q3) { Automotive restructuring includin
Slide 7: Group Overview – ThyssenKrupp Continues the Delta EVA Story
Presentation ThyssenKrupp, May/June 2007 7 Group Overview – ThyssenKrupp Continues the Delta EVA® Story ROCE and TKVA (incl. major nonrecurring items) % / million € ROCE TKVA Δ TKVA 1,510 20.9% Δ14% 513 H1 997 1,046 17.9% Δ 425 572 14.4% 12.0% Δ 924 WACC: 9% 7.0% 7.2% incl. Δ 62 Elevator fine (414)
Slide 8: EU Commission Fine on ThyssenKrupp
Presentation ThyssenKrupp, May/June 2007 8 EU Commission Fine on ThyssenKrupp { EBT reduced by €480 m in Q2 (liability in Elevator segment, Other Operating Expenses) { Cash flow will be impacted by payment of the fine in Q3 (May 28, 2007) { ThyssenKrupp considers this as a one-time event { Regional
Slide 9: Group Overview – Order Intake and Sales
Presentation ThyssenKrupp, May/June 2007 9 Group Overview – Order Intake and Sales Order intake million € Sales million € 50,782 47,125 Q4 14,012 Q4 12,259 Q3 12,439 27,263 Q3 12,138 25,446 +9% 13,962 Q2 12,776 +11% 13,114 Q2 11,786 Q1 11,555 13,301 Q1 10,942 12,332 2005/06 2006/07 2005/06 2006/07 T
Slide 10: Group Overview by Segments – Quarterly EBT 2005/06 and 2006/07
Presentation ThyssenKrupp, May/June 2007 10 Group Overview by Segments – Quarterly EBT 2005/06 and 2006/07 2005/2006 2006/2007 million € Q1 Q2 Q3 Q4 FY Q1 Q2 Steel 269 424 386 327 1,406 399 471 Stainless 7 52 126 238 423 325 291 Technologies 121 133 151 5 410 148 108 * Elevator 85 94 98 114 391 97 (
Slide 11: Group Overview – Net Income and Earnings per Share
Presentation ThyssenKrupp, May/June 2007 11 Group Overview – Net Income and Earnings per Share Net income million € Earnings per share € 1,704 3.24 Q4 540 Q4 1.04 905 1.76 Q3 468 Q3 0.87 244 -46% 0.45 -45% Q2 441 Q2 0.84 661 1.31 Q1 255 Q1 0.49 2005/06 2006/07 2005/06 2006/07 incl. incl. Elevator fi
Slide 12: Group Overview – Operating Cash Flow
Presentation ThyssenKrupp, May/June 2007 12 Group Overview – Operating Cash Flow Development of operating cash flow in Q2 million € D/A Others 595 354 68 Change in (44) net working Change in 500 (85) capital net working Technologies capital (286) (139) 139 Services 244 Change in net working Change i
Slide 13: Group Overview – Net Financial Liabilities
Presentation ThyssenKrupp, May/June 2007 13 Group Overview – Net Financial Liabilities Development of net financial position in Q2 million € 59 1 (551) 500 Gearing 4.1% Dividend 391 Operating Divest- Cash acquired/ Capex Gearing cash flow ments divested 9.8% Free cash flow: +9 Others (497) (18) 897
Slide 14: Group Overview – Development of Cash Flows
Presentation ThyssenKrupp, May/June 2007 14 Group Overview – Development of Cash Flows Presentation of operating and free cash flow million € 4,831 Operating 3,811 cash flow 3,676 2,480 344 3,292 3,272 1,222 Cash flow from 733 2,447 divestments 420 1,908 1,771 1,580 2,454 2,027 2,559 2,351 3,467 Fre
Slide 15: Group Overview – Gearing
Presentation ThyssenKrupp, May/June 2007 15 Group Overview – Gearing Ratio of net financial liabilities to equity (gearing) million € 8,927 9,109 8,287 8,327 7,944 7,671 Equity 4,742 Net financial 4,235 liabilities 2,833 Gearing 57.2% 55.2% 34.0% 2.2% (8.4%) 9.8% 177 897 (747) Q2 2001/02* 2002/03* 2
Slide 16: Group Targets 2009/10 and 2011/12
Presentation ThyssenKrupp, May/June 2007 16 Group Targets 2009/10 and 2011/12 EBT and sales million € Sales: €50 bn €60 bn €65 bn Target 4,500-5,000* 4,000* > 3,000*** 2,623 1,677 1,477 800 2,114 421 01/02*/** 2/03** 03/04** 04/05 05/06 H1 Mid-term Long-term 2006/07 2009/10 2011/12 * excluding major
Slide 17: Value Indicators by Segment – Mid-Term Targets (2009/10)
Presentation ThyssenKrupp, May/June 2007 17 Value Indicators by Segment – Mid-Term Targets (2009/10) Capital WACC ROCE TKVA EBT Employed in % in % in million € in million € in million € ave. 2005/06 2005/06 2009/10 2005/06 2009/10 2005/06 2009/10 Group 17,056 9.0 17.9 21.4 1,510 2,500 2,623 4,000 th
Slide 18: Value Indicators by Segment – Long-Term Targets (2011/12)
Presentation ThyssenKrupp, May/June 2007 18 Value Indicators by Segment – Long-Term Targets (2011/12) Capital WACC ROCE TKVA EBT Employed in % in % in million € in million € in million € 2009/10 2009/10 2011/12 2009/10 2011/12 2009/10 2011/12 Group 20,000 9.0 21.4 22.0 2,500 3,000 4,000 4,750 thereo
Slide 19: Group Overview – ThyssenKrupp Continues the Delta EVA Story
Presentation ThyssenKrupp, May/June 2007 19 Group Overview – ThyssenKrupp Continues the Delta EVA® Story ROCE and TKVA (incl. major nonrecurring items) % / million € 3,000 ROCE TKVA Δ TKVA 2,500 20.9% 1,510 21.4% 22% Δ14% 513 997 17.9% 1,046 Δ 425 572 14.4% Δ 924 12.0% WACC: 9% Δ 62 7.0% 7.2% incl.
Slide 20: Key Drivers for Investment Strategy (I)
Presentation ThyssenKrupp, May/June 2007 20 Key Drivers for Investment Strategy (I) International expansion of our focused business company concept { Steel • Transfer of the successful European premium strategy to the Americas growth market • Lowest-cost slab production in Brazil • Best in class con
Slide 21: Key Drivers for Investment Strategy (II)
Presentation ThyssenKrupp, May/June 2007 21 Key Drivers for Investment Strategy (II) International expansion of our focused business company concept { Technologies • Plant Technology - Optimized state-of-the art technology portfolio for global infrastructure development, access to raw materials ( >
Slide 22: Key Drivers for Investment Strategy (III)
Presentation ThyssenKrupp, May/June 2007 22 Key Drivers for Investment Strategy (III) International expansion of our focused business company concept { Elevator • Performance program for new installations and services to bridge the “margin gap” • Continuous acquisition of mid-size service companies
Slide 23: €18-20 Billion of Capex Within 5 Years
Presentation ThyssenKrupp, May/June 2007 23 International Expansion of our Focused Business Company Concept €18-20 billion of Capex Within 5 Years Capex per segment (in %) Capex per region (in %) Europe Stainless (excl. Germany) 11 Germany 13 Technologies 22 38 South Steel 49 18 America 7 5 26 Asia
Slide 24: Group Growth Strategy – Investment Overview
Presentation ThyssenKrupp, May/June 2007 24 Group Growth Strategy – Investment Overview Investment Plan (2005/06 - 2009/10) Breakdown of Investments (2005/06 - 2009/10) in €bn in €bn Long-term assets 8.6 *) 17.9 – 20.0 TK Steel 8.9 Financial investments 0.3 15.5 – 16.5 2.4 – 3.5 TK Stainless 2.0 Lon
Slide 25: Roadmap for Investments Over the Next Years
Presentation ThyssenKrupp, May/June 2007 25 Roadmap for Investments Over the Next 5 Years ThyssenKrupp
Slide 26: Group Growth Strategy – Development of Group Cash Flows
Presentation ThyssenKrupp, May/June 2007 26 Group Growth Strategy – Development of Group Cash Flows 6.0 in €bn 0.1 Operating cash flow 5.0 0.6 Free cash flow (1.2) Divestments 4.0 (0.5) 0.2 0.1 0.1 1.5 0.1 Capex for segments (0.7) 1.0 1.2 1.1 (value-based + 3.0 0.6 0.4 0.3 substance-preserving) 0.6
Slide 27: Premium Flat Carbon Steel Market with Above-Average Growth
Presentation ThyssenKrupp, May/June 2007 27 Premium Flat Carbon Steel Market with Above-Average Growth Global Market Development: Market Forecasts up to 2015 Global Demand for Premium Products* in million t p.a. +3.7% p.a. RoW** 751 637 +6.1% p.a. NAFTA 8% 523 290 20% 220 160 Asia*** 22% 220 m t p.a
Slide 28: Investment Strategy Steel: The Transatlantic Concept
Presentation ThyssenKrupp, May/June 2007 28 Investment Strategy Steel: The Transatlantic Concept Targeted Major Transatlantic Production Capacities Capacity in Herkules m metric ton p.a. Brazil NAFTA Europe ** Slabs 5 - 15 Greenfield Hot-rolled - 5.2* 17.5 Cold-rolled - 2.5 10 TK CSA Coated - 1.8 8
Slide 29: Demanding Customers Drive Demand in Premium Products
Presentation ThyssenKrupp, May/June 2007 29 Demanding Customers Drive Demand in Premium Products Example: Light-vehicle production/assemblies 2010 forecast NAFTA in m units Canada 31% 2% { Demanding customers from the 2.7 m 67% North Central automotive 7.6 m West 2% 0.4 m 24% construction 85% Ea
Slide 30: Southern U.S. Exhibits Growing Demand and Local Supply Shortage
Presentation ThyssenKrupp, May/June 2007 30 Southern U.S. Exhibits Growing Demand and Local Supply Shortage Typical demand flat carbon steel vs. local capacity south central U.S. in m t p.a. Hot Rolled* million t/yr Canada Outlook 2010 + Greenfield Steel North Central 5.7 4.3 West 13.9 8.2 Typical D
Slide 31: Ideal Basis For Market- and Profit-Driven Forward Strategy
Presentation ThyssenKrupp, May/June 2007 31 Ideal Basis For Market- and Profit-Driven Forward Strategy Mt. Vernon, Alabama ThyssenKrupp
Slide 32: Transatlantic Strategy Leads to Premium Prices and Lowest Costs
Presentation ThyssenKrupp, May/June 2007 32 Transatlantic Strategy Leads to Premium Prices and Lowest Costs USD/t Premium quality & technology leadership Ø Prices Greenfield TK Steel Ø Prices NAFTA Margin leadership ! Ø Production cost HRC p&o NAFTA Target Greenfield Cost TK Steel competitiveness Ex
Slide 33: Attractive Growth Prospects for Stainless Demand in NAFTA Region
Presentation ThyssenKrupp, May/June 2007 33 Attractive Growth Prospects for Stainless Demand in NAFTA Region in 1,000 tons p.a. Market Development CR Flat USA Market Development CR Flat Canada 1,793 237 1,800 250 +4.9% p.a. 1,700 +3.2% p.a. 225 1,600 1,500 +355 200 170 +67 1,438 0 0 2005 06 07 08 09
Slide 34: Challenges and Opportunities from Change in Stainless Trade Flows
Presentation ThyssenKrupp, May/June 2007 34 Challenges and Opportunities from Change in Stainless Trade Flows in million tons p.a. NAFTA Europe China Net Import Net Export Net Export Net Import 5.7 6.2 5.7 Net Export Net Import 4.5 . 4.5 4.3 3.7 3.7 3.2 3.0 3.0 2.3 2.3 2.0 1.7 1.8 1.7 2.0 M D M C M
Slide 35: Stainless NAFTA Activities Very Successful to Date
Presentation ThyssenKrupp, May/June 2007 35 Stainless NAFTA Activities Very Successful to Date Deliveries to the USA almost doubled in Undisputed market leadership in the spite of capacity restrictions and anti- fast-growing Mexican market dumping measures Deliveries USA and market share Deliveries
Slide 36: Stainless Greenfield Plant Has an Attractive Cost Position
Presentation ThyssenKrupp, May/June 2007 36 Stainless Greenfield Plant Has an Attractive Cost Position Production costs for CR 304 2B (w/o Capital Cost) USD/ton Cumulative capacity 0 500 1,000 1,500 2,000 2,500 Mt thousand Stainless Competitor Competitor TK Mexinox Competitor Greenfield project 1 2
Slide 37: Investment Strategy Stainless Steel: The Concept
Presentation ThyssenKrupp, May/June 2007 37 Investment Strategy Stainless Steel: The Concept… … in the US: Participation in market growth and displacement of imports Production/deliveries in 1,000 tons p.a. 900 USA 77% • Broad product * portfolio incl. 340 72“ width 125 85 350 Mexico • Focus on 1% f
Slide 38: Wrap-Up: ThyssenKrupp Continues the Delta EVA Story
Presentation ThyssenKrupp, May/June 2007 38 Wrap-Up: ThyssenKrupp Continues the Delta EVA® Story ROCE and TKVA (incl. major nonrecurring items) % / million € ROCE TKVA Target 3,000 2,500 20.9% 21.4% 22% 1,510 997 17.9% 1,046 572 14.4% 12.0% WACC: 9% 7.0% 7.2% incl. Elevator fine (414) (352) H1 Mid-t
Slide 39: Investment Grade Rating with Every Rating Agency is Key
Presentation ThyssenKrupp, May/June 2007 39 Investment Grade Rating with Every Rating Agency is Key The underlying principle for all our growth initiatives High degree of flexibility due to { Cash (€2.6 bn as of Mar 31, 2007) { Available credit lines (€4.3 bn as of Sep 30, 2006) { Treasury stock (25
Slide 40: Investment Conclusion
Presentation ThyssenKrupp, May/June 2007 40 Investment Conclusion { Strong commitment to sustainable profit and cash generation as well as value enhancement across business cycles { Value creation for shareholders not only by profitable growth initiatives, but also by stable and sustainable dividend
Slide 41: Financial Calendar 2007 and 2008
Presentation ThyssenKrupp, May/June 2007 41 Financial Calendar 2007 and 2008 { July 24, 2007 Quiet Period to August 9, 2007 { August 10, 2007 Interim Report 3rd quarter 2006/07 (Apr to Jun) Conference call with analysts and investors { October 25, 2007 Quiet Period to December 3, 2007 { December 4,
Slide 42: How to Contact ThyssenKrupp Investor Relations
Presentation ThyssenKrupp, May/June 2007 42 How to Contact ThyssenKrupp Investor Relations Institutional Investors and Analysts: { Phone: +49 211 824-36464 To be added to the IR mailing list, send us a { Fax: +49 211 824-36467 brief e-mail with your details! { E-mail: ir@thyssenkrupp.com { Internet:
Slide 43: Appendix
Presentation ThyssenKrupp, May/June 2007 43 Appendix ThyssenKrupp
Slide 44: ThyssenKrupp Group Overview
Presentation ThyssenKrupp, May/June 2007 44 ThyssenKrupp Group Overview ThyssenKrupp AG Sales €47.1 billion • EBT €2,623 million • TKVA €1,510 million • FCF €1,771 million • Employees 187,586 Steel Stainless Technologies Elevator Services Sales €10.7 bn Sales €6.4 bn Sales €12.7 bn Sales €4.3 bn Sal
Slide 45: Group Overview (I)
Presentation ThyssenKrupp, May/June 2007 45 Group Overview (I) 2nd quarter 2nd quarter Change Change 2005/2006 2006/2007 in % Order intake €m 12,776 13,962 1,186 9.3 Sales €m 11,786 13,114 1,328 11.3 EBITDA €m 1,278 1,031* -247 -19.3 EBIT €m 882 677 * -205 -23.2 EBT €m 773 572 * -201 -26.0 TK Value
Slide 46: Group Overview (II)
Presentation ThyssenKrupp, May/June 2007 46 Group Overview (II) 2nd quarter 2nd quarter Change Change 2005/2006 2006/2007 in % Capital expenditures* €m 492 551 59 12.0 Depreciation/amort. €m 396 354 -42 -10.6 Operating cash flow €m 883 500 -383 -43.4 Cash flow from divestments €m 89 58 -31 -34.8 Cas
Slide 47: Group in Figures: Quarterly EBT Development and Analysis
Presentation ThyssenKrupp, May/June 2007 47 Group in Figures: Quarterly EBT Development and Analysis -46% as reported 425 773 806 619 1,062 572 30 24 480 93 230 1,052 830 849 excl. major nonrecurring 425 680 1,032 items Q1 Q2 Q3 Q4 Q1 Q2 05/06 05/06 05/06 05/06 06/07 06/07 -26% positive major nonrec
Slide 48: Steel: Segment Overview (I)
Presentation ThyssenKrupp, May/June 2007 48 Steel: Segment Overview (I) Steel 2nd quarter 2005/06 2006/07 Change Change % { Crude steel output: 3.8 m t (+12% yoy, weak comparable quarter); shipments Order intake €m 3,252 3,510 258 7.9 steady with production close to capacity Sales €m 3,062 3,389 327
Slide 49: Steel: Segment Overview (II)
Presentation ThyssenKrupp, May/June 2007 49 Steel: Segment Overview (II) EBT development and analysis +18% 424 386 399 471 269 327 Q1 Q2 Q3 Q4 Q1 Q2 05/06 05/06 05/06 05/06 06/07 06/07 +11% YoY QoQ { Higher average revenues per ton (improved { Higher average revenues per ton (improved pricing for lo
Slide 50: Steel: Output, Shipments and Revenues per metric ton
Presentation ThyssenKrupp, May/June 2007 50 Steel: Output, Shipments and Revenues per metric ton Crude steel output 1,000 t/months Total shipments 1,000 t/months 1,176 1,184 1,246 1,161 1,166 1,215 1,152 1,153 1,130 1,156 1,146 1,076 2004/05 2005/06 H1 H2 Q1 Q2 2004/05 2005/06 H1 H2 Q1 Q2 Fiscal yea
Slide 51: High Value Added Products Strengthen Market Position
Presentation ThyssenKrupp, May/June 2007 51 High Value Added Products Strengthen Market Position Product Portfolio Steel FY 2005/06* in % Tailored blanks 4% 4% 3% Construction • Full product range in flat carbon 3% 13% 13% elements steels Steel service 13% 13% Tinplate • Permanent development of new
Slide 52: High Quality Requirements and Long-Term Relationships
Presentation ThyssenKrupp, May/June 2007 52 High Quality Requirements and Long-Term Relationships Sales by Industry in %, FY 2005/06 Key Drivers of ThyssenKrupp Steel Others Automotive industry • Customer relationship in focus: Construction (incl. suppliers) 3 10 Long-term relationships foster Packa
Slide 53: Premium Over the Cycle and Lower Volatility
Presentation ThyssenKrupp, May/June 2007 53 Premium Over the Cycle and Lower Volatility Index (Q3 1997 = 100) 200 180 160 140 ThyssenKrupp 120 Steel 100 80 CRU 60 1998 1999 2000 2001 2002 2003 2004 2005 2006 Price index flat steel world (CRU) All data incl. calendar Q1 2007 Price index carbon flat s
Slide 54: US Greenfield Project Steel: Equipment Layout and Capacities
Presentation ThyssenKrupp, May/June 2007 54 US Greenfield Project Steel: Equipment Layout and Capacities in 1,000 t p.a. CSA 2,900 Capacity 2,500 Out- Capacity 5,200 sourced Layout 1,500 Capacity Capacity Capacity 1,000 625 1,800 Shipments: HRC 715 + HRC p&o CRC 625 HDG 1,800 Stainless 880 1,000 Thy
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Presentation ThyssenKrupp, May/June 2007 55 This page is left intentionally blank! ThyssenKrupp
Slide 56: Stainless: Segment Overview (I)
Presentation ThyssenKrupp, May/June 2007 56 Stainless: Segment Overview (I) Stainless 2nd quarter { Crude steel output: 699,000 t (+4% yoy); higher cold-rolled shipments on account 2005/06 2006/07 Change Change % of sale of hot-rolled coil Order intake €m 2,096 2,185 89 4.2 { Continuing strong end u
Slide 57: Stainless: Segment Overview (II)
Presentation ThyssenKrupp, May/June 2007 57 Stainless: Segment Overview (II) EBT development and analysis -10% 325 291 238 52 126 7 Q1 Q2 Q3 Q4 Q1 Q2 05/06 05/06 05/06 05/06 06/07 06/07 + YoY QoQ { Significant higher price levels and strong demand { Excluding insurance payment of €30 m in { Clear im
Slide 58: Stainless: Output, Shipments and Revenues per Ton
Presentation ThyssenKrupp, May/June 2007 58 Stainless: Output, Shipments and Revenues per Ton Crude steel output* 1,000 t/months Total shipments* 1,000 t/months * including Carbon, Forging, Ni-Alloys * including Carbon, Forging, Ni-Alloys and consolidated 257 206 208 204 206 231 240 233 187 183 220
Slide 59: Demanding but Longer-Term Customers
Presentation ThyssenKrupp, May/June 2007 59 Demanding but Longer-Term Customers Sales by Industry in %, FY 2005/06 Key Drivers of ThyssenKrupp Stainless Household Others • Higher predictability of business Appliances Metal 5 8 through a comparatively higher Processing 5 exposure to longer-term contr
Slide 60: Stainless Base Prices and EBT Development
Presentation ThyssenKrupp, May/June 2007 60 Stainless Base Prices and EBT Development million EUR Base Price EUR/t 350 269 16 141 192 385 286 423 616* 2.000 1.900 1.800 250 1.700 1.600 1.500 150 1.400 1.300 1.200 1,200 50 1.100 1,035 1.000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 61: US Greenfield Project Stainless: Equipment Layout and Capacities
Presentation ThyssenKrupp, May/June 2007 61 US Greenfield Project Stainless: Equipment Layout and Capacities ng ct rolli tra Con Melt shop Hot strip mill (TKS) Hot-rolled annealing + pickling line 1,000,000 t 700,000 t Finishing + polishing Skin pass mill Cold-rolled annealing + pickling line Cold r
Slide 62: Technologies: Segment Overview (I)
Presentation ThyssenKrupp, May/June 2007 62 Technologies: Segment Overview (I) Technologies 2nd quarter { Overall, global mechanical engineering 2005/06 2006/07 Change Change % industry profiting from continuing high investments Order intake €m 2,838 3,083 245 8.6 Sales €m 2,870 2,804 -66 -2.3 { Ord
Slide 63: Technologies: Segment Overview (II)
Presentation ThyssenKrupp, May/June 2007 63 Technologies: Segment Overview (II) EBT development and analysis -27% 133 151 148 121 108 Q1 Q2 Q3 5 Q1 Q2 Q4 05/06 05/06 05/06 06/07 06/07 05/06 -19% YoY QoQ { Higher costs for processing yachts orders { Higher costs for processing yachts orders { North A
Slide 64: Update on Automotive Restructuring – Status Quo
Presentation ThyssenKrupp, May/June 2007 64 Update on Automotive Restructuring – Status Quo Sales million € Restructuring { All options incl. divestments being screened; divestment candidates 8,466 3,467 identified in Automotive Solutions FY H1 { Metal Forming/Umformtechnik: 2005/06 2006/07 Integrat
Slide 65: Organizational Overview Technologies
Presentation ThyssenKrupp, May/June 2007 65 Organizational Overview Technologies ThyssenKrupp Technologies AG Sales old: €6.0 bn • Sales new: ~€11 bn Olaf Berlien, Chairman Plant Technology Marine Systems Mechanical Automotive Sales: €2.3 bn Sales: €1.9 bn Components Solutions Sales old: €1.8 bn Sal
Slide 66: Elevator: Segment Overview (I)
Presentation ThyssenKrupp, May/June 2007 66 Elevator: Segment Overview (I) Elevator 2nd quarter { EU fine of €480 m imposed 2005/06 2006/07 Change Change % (expense: Q2, cash out: Q3) Order intake €m 1,203 1,311 108 9.0 Sales €m 1,054 1,088 34 3.2 { Higher order intake and sales by expansion of new
Slide 67: Elevator: Segment Overview (II)
Presentation ThyssenKrupp, May/June 2007 67 Elevator: Segment Overview (II) EBT development and analysis - Q2 85 94 98 114 97 06/07 Q1 Q2 Q3 Q4 Q1 05/06 05/06 05/06 05/06 06/07 (390) - YoY QoQ { Negative impact: EU fine (€480 m) { Negative impact: EU fine (€480 m) { Excluding this effect: slight imp
Slide 68: Elevator Competitors (estimation)
Presentation ThyssenKrupp, May/June 2007 68 Elevator Competitors (estimation) World market: €32 bn (Elevator / Escalator) CAGR 3 % 4 big „Western companies“ 4 big „Asian groups“ Others ~70% ~20% ~10% Others (> 10.000) Hit Mi To Fu ba tsu jite sh ac h Otis Schindler TK Kone i bis c i h i 13% Source:
Slide 69: Elevator Peer EBIT Margin Comparison
Presentation ThyssenKrupp, May/June 2007 69 Elevator Peer EBIT Margin Comparison (%) 20 18.3 OTIS 16 14.6 12 10.7 TKE 10.0 10.0 8 9.3 9.2 KONE Schindler 4 1.5 0 2002 2003 2004 2005 2006 Basis: calendar years ThyssenKrupp
Slide 70: Future Sustainable Growth Strategy (EBT in €m)
Presentation ThyssenKrupp, May/June 2007 70 Future Sustainable Growth Strategy (EBT in €m) Performance: Product * Manufacturing * Service * Sales Invest-Roadmap ~800 Performance Program: 300 Invest-Roadmap: 100 New Level 500 391 226 00/01 05/06 Next Goal Target FY FY ThyssenKrupp
Slide 71: Target Significant EBIT Margin Increase
Presentation ThyssenKrupp, May/June 2007 71 Target Significant EBIT Margin Increase EBIT % strategic >12% window 12 €700-800 m FY 05/06: EBT € 391 m EBIT margin 9,8% EBT 300 400 500 600 700 800 ThyssenKrupp
Slide 72: Services: Segment Overview (I)
Presentation ThyssenKrupp, May/June 2007 72 Services: Segment Overview (I) Services 2nd quarter 2005/06 2006/07 Change Change % { Ongoing favorable situation on raw and industrial materials markets Order intake €m 3,752 4,592 840 22.4 Sales €m 3,383 4,334 951 28.1 { Record quarterly sales, mainly dr
Slide 73: Services: Segment Overview (II)
Presentation ThyssenKrupp, May/June 2007 73 Services: Segment Overview (II) EBT development and analysis -27% 168 192 138 140 85 91 Q1 Q2 Q3 Q4 Q1 Q2 05/06 05/06 05/06 05/06 06/07 06/07 +54% YoY QoQ { Continuing favorable price/volume situation { After exceptional Q1 earnings normalizing – for mater
Slide 74: Movements in Sales and Capital Employed
Presentation ThyssenKrupp, May/June 2007 74 Movements in Sales and Capital Employed Indicator for efficiency improvement Sales in €bn Capital Employed 50 21.0 in €bn 22 45 19.5 20 18.9 18.4 40 17.1 18 35 16 30 14 36.9 33.5 37.3 42.9 47.1 25 12 20 10 2001/02* 2002/03* 2003/04* 2004/05 2005/06 Sales C
Slide 75: Active Portfolio Management at ThyssenKrupp
Presentation ThyssenKrupp, May/June 2007 75 Active Portfolio Management at ThyssenKrupp Significant change in portfolio since the merger (as at May 2007) Disposals Acquisitions (Total: €9.0 billion) (Total: €8.0 billion) Steel 2,005 455 Stainless 95 235 Automotive 2,105 1,155 Technologies 2,405 1,93
Slide 76: 14 Portfolio Optimizations in 2006/2007
Presentation ThyssenKrupp, May/June 2007 76 14 Portfolio Optimizations in 2006/2007 Steel Elevator Auto Chassis do Brasil (BRA) Acquisition Sele & Colla (IT) Acquisition+ Sabia (IT) Acquisition+ Stainless Elevator Sales & Services (US) Acquisition no relevant transactions to date Technologies Servic
Slide 77: A Corporate Culture for Continuous Performance Enhancement is Established
Presentation ThyssenKrupp, May/June 2007 77 A Corporate Culture for Continuous ThyssenKrupp Performance Enhancement is Established best In FY 2005/06 almost 2,000* new projects initiated 7.000 7,000 6.500 6.000 6,000 All in all 6,798* 5.500 projects started in 5,000 5.000 ThyssenKrupp best 4.500 4,0
Slide 78: Project Landscape in Initiatives
Presentation ThyssenKrupp, May/June 2007 78 Project Landscape in Initiatives ThyssenKrupp Increase in share of purchasing projects in last fiscal year best Operating efficiency, 43% Corporate organization, 3% Knowledge management, 3% Employees, 4% Performance quality, 6% Capital productivity, 7% Pur
Slide 79: Project Potentials
Presentation ThyssenKrupp, May/June 2007 79 Project Potentials ThyssenKrupp EBIT and capital employed plans clearly surpassed best EBIT potential in million € ~ 400 Plan > 700 > 600 Act > 500 ~ 600 > 600 > 600 Plan 03/04 Act 03/04 Plan 04/05 Act 04/05 Plan 05/06 Act 05/06 Plan 06/07 < -400 ~ -400 <
Slide 80: Disclaimer
Presentation ThyssenKrupp, May/June 2007 80 Disclaimer In this presentation all figures are prepared in accordance with IFRS unless otherwise stated. This document contains forward-looking statements that reflect management’s current views with respect to future events. Such statements are subject t