Thyssenkrupp Ag · XETR:TKA

Thyssenkrupp — Investor Presentation (June 2009)

39 slides from Thyssenkrupp's investor presentation, June 2009

  1. Slide 1: ThyssenKrupp Group Presentation, June 2009

    Presentation ThyssenKrupp Group, June, 2009 0 ThyssenKrupp

  2. Slide 2: Agenda

    Presentation ThyssenKrupp Group, June, 2009 1 Agenda { Group Structure and Strategy { Group Financials and Segment Performance { Appendix ThyssenKrupp

  3. Slide 3: ThyssenKrupp Group FY 2007/08

    Presentation ThyssenKrupp Group, June, 2009 2 ThyssenKrupp Group FY 2007/08 ThyssenKrupp AG FY 2007/08: Sales €53,426 m • EBT €3,128 m • TKVA €1,916 m • Employees 199,374 Steel Stainless Technologies Elevator Services Sales €14.4 bn Sales €7.4 bn Sales €12.4 bn Sales €4.9 bn Sales €17.3 bn EBT €1,54

  4. Slide 4: Cornerstones of the ThyssenKrupp Group's Strategy

    Presentation ThyssenKrupp Group, June, 2009 3 Cornerstones of the ThyssenKrupp Group’s Strategy Earnings Active portfolio management Development of core businesses Group initiatives Reorganization Steel Europe Divestments Steel Americas Materials Stainless Global TK PLuS Materials Services TK best E

  5. Slide 5: Core Targets of the Reorganization

    Presentation ThyssenKrupp Group, June, 2009 4 Core Targets of the Reorganization Strategically centralized… OperationallyTK AGdecentralized … CEO CFO AD … TKS {CEO with stronger CEO TKLcontrolCEO TKT stv. CEO TKT CEO TKE/TKX { … with faster decision making TKS AG TKL AG TKT AG TKE AG TKX AG CEO CFO

  6. Slide 6: Reorganization ThyssenKrupp – Overview

    Presentation ThyssenKrupp Group, June, 2009 5 Reorganization ThyssenKrupp – Overview { Strong corporate center { Strategic further development as integrated materials and technology group { Value-based control { Active portfolio management { Selective growth { Focused corporate initiatives ThyssenKr

  7. Slide 7: New Organizational Structure

    Presentation ThyssenKrupp Group, June, 2009 6 New Organizational Structure Group ThyssenKrupp AG Executive Board CEO Vice CEO CFO HR Director Executive Board Member - Materials Executive Board Member - Technologies CC-CS New Organization CC-CT CC-HR Corporate CC-EM PLuS CC-AR CC-IM Center CC-LC CC-C

  8. Slide 8: Agenda

    Presentation ThyssenKrupp Group, June, 2009 7 Agenda { Group Structure and Strategy { Group Financials and Segment Performance { Appendix ThyssenKrupp

  9. Slide 9: Group Overview – Q2 2008/09 Highlights

    Presentation ThyssenKrupp Group, June, 2009 8 Group Overview – Q2 2008/09 Highlights qoq yoy Order intake €7,642 m (41)% (46)% Sales €9,859 m (14)% (25)% EBT as reported €(455) m €(695) m €(1,197) m EBT before major nonrecurring items €(283) m €(616) m €(1,067) m Ö Positive earnings at Steel Ö Negat

  10. Slide 10: Group Financials – Order Intake and Sales

    Presentation ThyssenKrupp Group, June, 2009 9 Group Financials – Order Intake and Sales Order intake million € Sales million € 2008/09 2008/09 7,642 9,859 20,529 21,381 12,887 11,522 Q1 Q2 H1 Q1 Q2 H1 2007/08 2007/08 14,084 13,199 27,354 25,469 13,270 12,270 Q1 Q2 H1 Q1 Q2 H1 ThyssenKrupp

  11. Slide 11: Group Financials – EBT

    Presentation ThyssenKrupp Group, June, 2009 10 Group Financials – EBT EBT as reported million € EBT before major nonrecurring items million € 2008/09 2008/09 H1: inventory writedowns and windfall losses 333 (283) 240 ~€650 m 50 thereof: (455) (215) Q1 Q2 H1 Q1 Q2 Stainless ~€200 m ~€150 m Q1 Q2 H1 S

  12. Slide 12: Reconciliation of Group Earnings

    Presentation ThyssenKrupp Group, June, 2009 11 Reconciliation of Group Earnings H1 2008/09 million € Major nonrecurring items 2008/09 million € EBT EBT as reported before major Q1 Q2 nonrecurring Q2 items • Project costs (83) (26) 50 thereof: TK CSA, Brazil (57) (17) 172 Steel/Stainless Alabama (26)

  13. Slide 13: Segment Overview – Quarterly EBT

    Presentation ThyssenKrupp Group, June, 2009 12 Segment Overview – Quarterly EBT 2007/08 2008/09 change million € Q2 Q1 Q2 qoq yoy Steel 396 251 56 (195) (340) before major nonrecurring items 462 335 86 (249) (376) Stainless 38 (249) (373) (124) (411) before major nonrecurring items 42 (242) (309) (6

  14. Slide 14: Group Financials – Net Income to Operating Cash Flow

    Presentation ThyssenKrupp Group, June, 2009 13 Group Financials – Net Income Ö Operating Cash Flow Development of operating cash flow in Q2 2008/09 Elevator million € 1,483 Services 241 Technologies Elevator Corporate/ 182 Cons. 287 339 Stainless Change in 528 accrued D/A pensions Deferred 418 (36)

  15. Slide 15: Group Financials – Net Financial Debt

    Presentation ThyssenKrupp Group, June, 2009 14 Group Financials – Net Financial Debt Development of net financial debt in Q2 2008/09 million € (3,514) (3,687) Free cash flow: 419 thereof: Gearing • Steel 563 Gearing 32.5% thereof: 36.2% TK CSA 308 NAFTA Steel 127 26 (1,090) • Stainless 46 1,483 • Te

  16. Slide 16: Solid Financial Situation – No Short-Term Refinancing Needs

    Presentation ThyssenKrupp Group, June, 2009 15 Solid Financial Situation – No Short-Term Refinancing Needs Maturity profile of gross financial debt as of March 31, 2009 million € 4,008 Total: 7,507 11% 3% 11% 3% 18% 54% 1,302 851 847 253 246 H2 2008/09 2009/10 2010/11 2011/12 2012/13 thereafter Liqu

  17. Slide 17: Progress of Net Working Capital Reduction and Cost Savings 2008/09

    Presentation ThyssenKrupp Group, June, 2009 16 Progress of Net Working Capital Reduction and Cost Savings 2008/09 Net working capital development million € Progress of cost savings million € Measures: Target ~2,000 Target >1,000 • Inventory reduction, adjustment of required stock levels k T rac • Im

  18. Slide 18: Capital Expenditures in 2008/09

    Presentation ThyssenKrupp Group, June 2009 17 Capital Expenditures in 2008/09 Overview of capital expenditures by degree of completion < 50% Target 50% to 80% €4,500 m – €5,000 m Major investment Capex H1 2008/09: projects > 80% TK CSA €849 m Großprojekte NAFTA Steel €196 m 2.994 NAFTA Stainless €24

  19. Slide 19: Group Outlook 2008/09

    Presentation ThyssenKrupp Group, June, 2009 18 Group Outlook 2008/09 EBT before major Mid-range to upper three-digit million € negative nonrecurring depending on economic environment items Impacted by: • Restructuring charges: EBT ƒ to achieve major cost savings in the future as reported ƒ for reorg

  20. Slide 20: Steel

    Presentation ThyssenKrupp Group, June, 2009 19 Steel Q2 2008/09 Highlights EBT in €m excl. major nonrecurring items Order intake in €m 534 470 462 419 (145) (66) (68) 335 (66) (84) 86 353 396 389 402 251 (30) 3,188 3,986 3,765 3,260 2,036 1,651 56 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2007/08 2008/09

  21. Slide 21: Order Intake Remained at Very Low Levels in April

    Presentation ThyssenKrupp Group, June, 2009 20 Order Intake Remained at Very Low Levels in April Order Intake German Steel Industry; January 1991 – April 2009 1,000 t 5,000 4,500 4,000 3,500 3,000 April 2,500 2009 2,000 1,500 1,000 500 0 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99

  22. Slide 22: De-Stocking Peaking in Europe; Virtually Completed in the US

    Presentation ThyssenKrupp Group, June, 2009 21 De-Stocking Peaking in Europe; Virtually Completed in the US Inventories and Inventories and Inventories Months of Supply - Europe Months of Supply - USA China 3.0 7 10 4.0 6 Inventories MOS Inventories MOS Inventories [m t] [months] 9 [m st] [months] [

  23. Slide 23: Long Term Customer Relations Reduce Volatility

    Presentation ThyssenKrupp Group, June, 2009 22 Long Term Customer Relations Reduce Volatility Sales by maturity FY 2007/08 in % Price index Index (Q3 1997 = 100) Spot 7 CRU Quarterly 260 20 220 64 180 9 ThyssenKrupp Half-year Annual & >1 year 140 Steel 100 60 Sales by industry FY 2007/08 in % 00 02

  24. Slide 24: ThyssenKrupp CSA: Port and Materials Handling Nearly Completed

    Presentation ThyssenKrupp Group, June, 2009 23 ThyssenKrupp CSA: Port and Materials Handling Nearly Completed ThyssenKrupp

  25. Slide 25: ThyssenKrupp CSA: Progress on Coke, Power and Sinter Plant

    Presentation ThyssenKrupp Group, June, 2009 24 ThyssenKrupp CSA: Progress on Coke, Power and Sinter Plant… Aerial photo coke plant Power plant Coke plant Sinter plant ThyssenKrupp

  26. Slide 26: …and on Iron and Steelmaking Facilities

    Presentation ThyssenKrupp Group, June, 2009 25 …and on Iron and Steelmaking Facilities Blast furnace #1 Hot blast stoves #1-3 Continuous caster Steel plant area ThyssenKrupp

  27. Slide 27: ThyssenKrupp Steel USA: Proceeding to Schedule

    Presentation ThyssenKrupp Group, June, 2009 26 ThyssenKrupp Steel USA: Proceeding to Schedule Hot-rolling mill - foundation work Cold-rolling mill - foundation work Coating lines - foundation work River terminal ThyssenKrupp

  28. Slide 28: Stainless

    Presentation ThyssenKrupp Group, June, 2009 27 Stainless Q2 2008/09 Highlights EBT in €m excl. major nonrecurring items Order intake in €m 96 42 48 (42) 38 93 (242) (309) 40 (45) Q1 Q2 Q3 Q4 (249) (373) 2,150 2,001 1,732 1,577 966 819 2007/08 (64) Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q2 2008/09 2007/08 2008/09 Comm

  29. Slide 29: Stainless: Cold-Rolled Imports from Third Countries

    Presentation ThyssenKrupp Group, June, 2009 28 Stainless: Cold-Rolled Imports from Third Countries [000t/Month] 77.0 74.2 69.3 64.6 61.2 62.1 56.1 51.9 49.2 49.4 41.9 40.9 43.1 41.1 38.8 38.9 34.3 36.3 33.6 27.7 29.828.032.3 32.0 27.6 21.6 21.5 20.2 17.717.1 16.9 Apr Aug Apr Aug Oct Oct Jul Jul 2003

  30. Slide 30: Market Situation Cold-Rolled Products

    Presentation ThyssenKrupp Group, June, 2009 29 Market Situation Cold-Rolled Products Germany USA Stock level: INDEX Jan 2005 = 100 Stock level: INDEX Jan 2005 = 100 Stock Reach: Calendar Days Stock Reach: Calendar Days 160 160 Stock Level Stock Level Stock Reach Stock Reach 140 140 Average Stock Rea

  31. Slide 31: Price Development: First Signs of Recovery Observable?

    Presentation ThyssenKrupp Group, June, 2009 30 Price Development: First Signs of Recovery Observable? EUR/t US$/t Base Price EU* 5,000 55,000 Alloy Surcharge EU 4,500 50,000 Nickel 4,000 45,000 40,000 3,500 35,000 3,000 30,000 2,500 25,000 2,000 20,000 1,500 15,000 1,000 10,000 500 5,000 0 0 Jan-05

  32. Slide 32: Technologies

    Presentation ThyssenKrupp Group, June, 2009 31 Technologies Q2 2008/09 Highlights EBT in €m excl. major nonrecurring items Order intake in €m 155 197 179 4 31 (4) 179 186 201 175 164 (29) 3,212 3,108 3,397 3,773 4,897 1,723 Q1 Q2 Q3 Q4 Q1 (105) (76) 2007/08 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2008/09 2007/08 2008/

  33. Slide 33: Technologies: High Sales Coverage by Orders on Hand

    Presentation ThyssenKrupp Group, June, 2009 32 Technologies: High Sales Coverage by Orders on Hand Sales coverage Sales cover from orders in hand (September 30, 2008) Sales by business unit (H1 2008/09) % Sales covered from orders on hand (March 31, 2009) Order intake Mechanical Components Plant Tec

  34. Slide 34: Elevator

    Presentation ThyssenKrupp Group, June, 2009 33 Elevator Q2 2008/09 Highlights EBT in €m Order intake in €m excl. major nonrecurring items 139 158 148 112 (6) (2) (2) (20) 1,466 1,464 1,324 1,281 1,562 1,189 119 90 92 133 156 146 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2007/08 2008/09 2007/08 2008/09 Com

  35. Slide 35: Elevator: Sales by Business Activities

    Presentation ThyssenKrupp Group, June, 2009 34 Elevator: Sales by Business Activities Sales by business activities in % Service New elevators 30 39 15 Modernization 6 24 4 Service New escalators Spares / Repairs New accessibility products Service New passenger boarding bridges Sales for FY 2007/08 T

  36. Slide 36: Services

    Presentation ThyssenKrupp Group, June, 2009 35 Services Q2 2008/09 Highlights EBT in €m Order intake in €m 132 135 248 235 30 3,951 4,322 4,677 4,503 3,746 2,514 (78) Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2007/08 2008/09 2007/08 2008/09 Comments Q2 2008/09 Outlook H2 2008/09 { Ongoing decreases in pri

  37. Slide 37: Services: Impact of Crisis on Business Units

    Presentation ThyssenKrupp Group, June, 2009 36 Services: Impact of Crisis on Business Units Materials Services „ Significant drop in volumes Sales „ Extreme price meltdown H1 08/09 56% „ High inventory devaluation „ Cash generator of the segment Special Products „ Dramatic sales drop in trading of r

  38. Slide 38: ThyssenKrupp Group FY 2007/08

    Presentation ThyssenKrupp Group, June, 2009 37 ThyssenKrupp Group FY 2007/08 ThyssenKrupp AG FY 2007/08: Sales €53,426 m • EBT €3,128 m • TKVA €1,916 m • Employees 199,374 Steel Stainless Technologies Elevator Services Sales €14.4 bn Sales €7.4 bn Sales €12.4 bn Sales €4.9 bn Sales €17.3 bn EBT €1,5

  39. Slide 39: Disclaimer

    Presentation ThyssenKrupp Group, June, 2009 38 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

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