thyssenkrupp AG · XETR:TKA
thyssenkrupp — Deutsche Bank 5th German Corporate Conference 2011
97 slides from thyssenkrupp's conference presentation, Sep 19, 2011
Slide 1: 5. German Corporate Conference, Deutsche Bank
5. German Corporate Conference Deutsche Bank San Francisco – Sep 19, 2011
Slide 2: Agenda
Agenda { Group Performance, Financials and Outlook { Business Area Performance { Strategic Development Program at ThyssenKrupp 5. German Corporate Conference San Francisco – Sep 19, 2011 Developing the future. 1
Slide 3: Uncertainty and Overreaction in Capital Markets – Rationale Behavior by Industrial Companies
Uncertainty and Overreaction in Capital Markets – Rationale Behavior by Industrial Companies DAX and Dow Jones in 2011 110 { Sovereign debt-driven uncertainties in DAX capital markets might lead to ripple effects 105 in real economy however 100 { Corporate perspective suggests that Dow Jones 95 pote
Slide 4: Q3 2010/11 Key Messages – Group On Track to Achieve Ambitious Targets
Q3 2010/11 Key Messages – Group On Track to Achieve Ambitious Targets • Highest order intake & sales in over 2 years Growth • Book-to-bill > 1 • Further improvement in EBIT • Lowest capex in over 4 years Profitability & Cash • First positive FCF in 6 quarters • Behind NFD peak Execution • Strategic
Slide 5: Favorable Trading Conditions Reflected in Our Business Trend
Favorable Trading Conditions Reflected in Our Business Trend Order intake (million €) Sales (million €) 9M 30,631 +25% 38,228 31,137 +17% 36,487 +29% +10% +10% +5% 14,120 12,848 12,851 10,930 11,260 12,266 10,373 10,619 11,679 11,484 11,370 9,328 9,351 10,107 Q3 Q2 Q3 Q3 Q2 Q3 2009/10 2010/11 2009/1
Slide 6: Strengthening Structural Earning Power
Strengthening Structural Earning Power EBIT adjusted development (million €) EBIT adj. Group EBIT adj. Group qoq Δ €(60) m explained by: excl. Steel Americas Stainless Global €(59) m EBIT adj. Steel Americas 816 756 696 651 566 566 497 372 425 348 277 293 273 105 (71) (79) (130) (190) (320) (319) (3
Slide 7: Net Financial Debt (NFD): Now Behind the Peak
Net Financial Debt (NFD): Now Behind the Peak FY 2009/10 and FY 2010/11 (million €) Q3 2010/11 (million €) thereof: • Steel Americas (472) • Stainless Global (194) 2009/10 2010/11 Q1 Q4 Q1 Q3 Q4E (6,492) (6,249) (~ €4.6 bn) Gearing Gearing 60.6% FCF: 198 57.6% (2,130) (2,652) 709 5 (516) (3,753) (3,
Slide 8: FCF Development: Focus on Progressively Improving FCF Generation
FCF Development: Focus on Progressively Improving FCF Generation Significant positive FCF 2011/12 et seq. in Q4 2010/11 aim at NFD reduction 1.9 0.8 FCF Group 0.7 excl. 0.2 Steel Americas 0.1 (0.2) (0.8) (0.5) FCF (1.1) (0.7) Steel Americas (1.0) FCF Group (2.1) (2.1) (2.1) (2.9) Q1 Q2 Q3 Q4E 2008/0
Slide 9: Agenda
Agenda { Group Performance, Financials and Outlook { Business Area Performance { Strategic Development Program at ThyssenKrupp 5. German Corporate Conference San Francisco – Sep 19, 2011 Developing the future. 8
Slide 10: Steel Europe – Q3 2010/11 Highlights
Steel Europe – Q3 2010/11 Highlights Order intake in €m Shipments in 1,000 t EBIT in €m; EBIT margin in % Ø rev/t indexed (Q1 2004/05=100) 9.2 120 129 130 135 140 9.1 8.7 7.6 3,721 6.6 322 3,006 3,431 3,431 300 3,216 3,093 3,142 2,706 2,781 2,929 218 258 193 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 2010/11 * hot-
Slide 11: Steel Americas – Q3 2010/11 Highlights
Steel Americas – Q3 2010/11 Highlights Order intake in €m Production & shipments in 1,000 t EBIT in €m 880 651 Slab production 430 (130) (190) CSA 36 (320) (319) Q4 Q1 Q2 Q3 (378) 504 2010/11 268 403 Shipments 306 24 22 84 115 Steel USA 2 Q3 Q2 Q3 Q3 Q2 Q3 2010/11 Q4 Q1 Q2 Q3 2010/11 2010/11 1st Coi
Slide 12: Stainless Global – Q3 2010/11 Highlights
Stainless Global – Q3 2010/11 Highlights Order intake in €m Shipments* in 1,000 t EBIT in €m; EBIT margin in % Ø transaction price/t EBIT Stainless USA indexed (Q1 2004/05=100) (10) (11) (7) (18) (29) 125 120 122 131 129 4.7 3.2 1,790 1,483 1,360 534 520 460 81 1,317 1,301 482 456 0.3 0.4 59 0.0 5 7
Slide 13: Materials Services – Q3 2010/11 Highlights
Materials Services – Q3 2010/11 Highlights Order intake* in €m Materials warehousing shipments in 1,000 t EBIT in €m; EBIT margin in % *thereof materials warehousing business ~ 60% ROCE in % 20.0 19.1 17.1 13.6 10.4 163 158 1,473 149 3,695 3,918 3,973 1,252 1,223 1,256 1,431 108 3,370 3,259 85 4.4 4
Slide 14: Elevator Technology – Q3 2010/11 Highlights
Elevator Technology – Q3 2010/11 Highlights Order intake in €m Units under Maintenance EBIT in €m; EBIT margin in % ytd book-to-bill: 1.03 1,000,000 13.2 12.3 c.800,000 11.6 11.6 10.9 1,390 1,358 1,320 162 171 1,306 156 1,264 151 147 Q3 Q2 Q3 04/05 09/10 Q3 Q2 Q3 2010/11 2010/11 Recent major orders
Slide 15: Plant Technology – Q3 2010/11 Highlights
Plant Technology – Q3 2010/11 Highlights Order intake in €m Order backlog in €m EBIT in €m; EBIT margin in % ytd book-to-bill: 1.07 14.3 13.9 11.9 1,097 6,473 6,369 9.3 9.6 1,016 6,255 139 911 800 896 6,217 6,226 107 131 90 102 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 2010/11 2010/11 2010/11 Largest order intake
Slide 16: Components Technology – Q3 2010/11 Highlights
Components Technology – Q3 2010/11 Highlights Order intake in €m Quarterly order intake auto components EBIT in €m; EBIT adj. margin in % ytd book-to-bill: 1.01 Q3 2010/11: ~20% above pre-crisis level EBIT EBIT adjusted (average of FY 2007/08) 7.9 7.9 7.2 6.4 1,811 141 1,795 127 1,584 1,602 113 1,56
Slide 17: Marine Systems – Q3 2010/11 Highlights
Marine Systems – Q3 2010/11 Highlights Order intake in €m Order backlog in €m EBIT in €m; EBIT adj. margin in % ytd book-to-bill: 2.27 EBIT EBIT adjusted 38.4 2,155 103 6,958 12.9 5,368 84 426 5,315 5,358 9.1 5,290 6.4 174 149 27 (3.6) 46 62 108 8 Q3 Q2 Q3 Q3 Q2 Q3 Q3 (9) Q2 Q3 2010/11 2010/11 2010/
Slide 18: Agenda
Agenda { Group Performance, Financials and Outlook { Business Area Performance { Strategic Development Program at ThyssenKrupp 5. German Corporate Conference San Francisco – Sep 19, 2011 Developing the future. 17
Slide 19: ThyssenKrupp – Strategic Way Forward
ThyssenKrupp – Strategic Way Forward Portfolio Change Performance Strategic Financial Optimization + Management + Orientation Æ Push + Stabilization Exit Non-Core Leadership & Profit & Cash Grow Core Financing Businesses Culture Improvement Businesses Capacities Current { Leadership { Continuous { E
Slide 20: Portfolio Optimization: Exit Non-Core Businesses
Portfolio Optimization: Exit Non-Core Businesses Current Divestments Additional Divestments Strategic Development Steel clos Metal Forming ed Tailored Blanks Europe Sales: ~€1.1 bn; Employees: ~5,700 Sales: ~€0.6 bn; Employees: ~900 Materials Stainless Stainless Global Global Sales: ~€5.9 bn; Employ
Slide 21: 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 22: Execution Update – Selected Measures
Execution Update Selected Measures { Sale Metal Forming: closed July 20 { Sale Xervon: signed August 23 Customers & Markets Performance & Portfolio { Exit Stainless Global: new mgmt. lined up, banks mandated { Sale Waupaca & Bilstein (springs, stabilizers): banks mandated { Sale Tailored Blanks: mar
Slide 23: 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 24: ThyssenKrupp is Much More Than Steel (I)
ThyssenKrupp is Much More Than Steel (I) ThyssenKrupp Materials Technologies Sales 9M 2010/11 (€m): Sales 9M 2010/11 (€m): Steel Europe: 9,763 Elevator Technology: 3,864 Steel Americas: 775 Plant Technology: 2,809 Stainless Global: 5,047 Components Technology: 5,147 Materials Services: 10,995 Marine
Slide 25: ThyssenKrupp is Much More Than Steel (II)
ThyssenKrupp is Much More Than Steel (II) Materials Services is a Focused Service Business – Not a Sales Channel for Steel and Stainless BAs Materials Services: Sales by products/services (2009/10) in % Carbon Steel 38 from ThyssenKrupp 13 Only ~18% sourced Stainless Steel 11 from ThyssenKrupp from
Slide 26: ThyssenKrupp Is Much More Than Steel (III)
ThyssenKrupp Is Much More Than Steel (III) Technologies With Significant EBIT and FCF Contribution 9M 2010/11 (€ bn) Order Sales EBIT adj. FCF Intake Materials (not consolidated) 26.3 26.6 1.4 Technologies 1.1 14.9 13.0 (not consolidated) 0.5 (3.4) { Materials: Earnings and cash flow performance inf
Slide 27: ThyssenKrupp is Much More Than Steel (IV)
ThyssenKrupp is Much More Than Steel (IV) Technologies With Higher Exposure to International Markets Sales ThyssenKrupp: 67% Sales* by region (Technologies) outside Germany Technologies: 83% South America 8 Employees ThyssenKrupp: 60% Germany 17 outside Germany Technologies: 76% Middle East/ Africa
Slide 28: ThyssenKrupp is Much More Than Steel (V)
ThyssenKrupp is Much More Than Steel (V) Division Technologies Elevator Plant Components Marine { December 7th Capital Markets Day Technologies ThyssenKrupp Quarter, Essen 5. German Corporate Conference San Francisco – Sep 19, 2011 Developing the future. 27
Slide 29: Financial Calendar – FY 2010/11 and FY 2011/12 (I)
Financial Calendar – FY 2010/11 and FY 2011/12 (I) { August Roadshows London (15th), London (16th – Japanese investors), Edinburgh (17th), Dublin (18th) { September Roadshows Frankfurt (9th), Zurich (13th) Conferences Commerzbank “Sector Conference Week”, Frankfurt (2nd) Credit Suisse “Capital Goods
Slide 30: Financial Calendar – FY 2010/11 and FY 2011/12 (II)
Financial Calendar – FY 2010/11 and FY 2011/12 (II) { October Plant Tour Brazil (12th-14th) Conferences Commerzbank “Corporate Days”, London (20th) { November Conferences Deutsche Bank “BRICS Metals & Mining Conference”, London (3rd) { December Conference Call FY 2010/11 (6th) Capital Markets Day “T
Slide 31: Contact Details
Contact Details ThyssenKrupp Corporate Center Investor Relations Phone numbers +49 201-844- Dr. Claus Ehrenbeck -536464 Rainer Hecker -538830 Head of Investor Relations Senior IR Manager Stefanie Bensch -536480 Christian Schulte -536966 To be added to the Assistant Senior IR Manager IR mailing list,
Slide 32: Agenda – Appendix
Agenda { Appendix 5. German Corporate Conference San Francisco – Sep 19, 2011 Developing the future. 31
Slide 33: ThyssenKrupp Group
ThyssenKrupp Group ThyssenKrupp* FY 2009/10: Sales €42.6 bn • EBIT* €1,346 m • TKVA €(419) m • Employees 177,346 * 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: €10.8 bn Steel €68 m
Slide 34: Group Overview (I)
Group Overview (I) 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 9,328 10,373 10,930 10,619 41,250 11,260 12,848 14,120 Sales €m 9,351 10,107 11,679 11,484 42,621 11,370 12,266 12,851 EBITDA €m 683 622 845 619 2,769 645 932 983 EBIT €m 353 278 500 215 1,346 273 497 545 EBIT adjusted €m 277
Slide 35: Group Overview (II)
Group Overview (II) 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Capital expenditures* €m 777 738 942 1,053 3,510 778 656 516 Depreciation/amort. €m 331 346 348 412 1,437 380 447 449 Operating cash flow €m (308) 184 (23) 1,015 868 (1,435) (79) 709 Cash flow from divestm. €m 488 17 15 32 552 125 17 5 Cash
Slide 36: Reconciliation of EBIT Adjusted by Special Items
Reconciliation of EBIT Adjusted by Special Items EBIT 2010/11 (million €) Special items (million €) 9M 1,315 1,336 Q1 Q2 Q3 Q3: (21) Q3 545 566 Corporate • Retroactive purchase (21) price adjustment Q2 497 497 Group - - (21) Q1 273 273 EBIT EBIT adjusted 5. German Corporate Conference San Francisco
Slide 37: Further Improvements in EBIT
Further Improvements in EBIT EBIT (million €) EBT (million €) 9M 1,131 +16% 1,315 918 -2% 904 +10% +16% 500 545 414 497 352 407 353 278 313 215 273 191 217 145 Q3 Q2 Q3* Q3 Q2 Q3* * Q3 impacted by special item of €(21) m 2010/11 * Q3 impacted by special item of €(21) m 2010/11 Net income (million €)
Slide 38: Positive OCF Driven by Strong Performance of Technologies Businesses
Positive OCF Driven by Strong Performance of Technologies Businesses Q3 2010/11 (million €) thereof: • Elevator Technology 87 • Plant Technology 129 709 Others • Components Technology 146 3 • Marine Systems 1) 612 Change in Deferred accrued taxes Trade Trade pensions (7) (64) accounts accounts 270 r
Slide 39: Tight Capex Management Going Forward
Tight Capex Management Going Forward 9M 2010/11 (billion €) 1.95 Cash flows from investing activities (billion €) Steel and Stainless 4.2 4.1 Americas Projects Capex 3.5 0.15 3.0 2.0 Depreciation 0.3 0.3 0.2 0.6 0.7 Divestments 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11E 2011/12E 5. German Corp
Slide 40: Pension and Similar Obligations: Further Decrease in Q3
Pension and Similar Obligations: Further Decrease in Q3 Accrued Pension and Similar Obligations Expected Normalized* Development of Accrued (in € m) Pension and Similar Obligations (in € m) Other accrued * Assumption: unchanged discount rate 7,155 7,049 pension-related obl. 8,086 234 213 Accrued pos
Slide 41: Pension Obligations: TK with Mature Pension Schemes
Pension Obligations: TK with Mature Pension Schemes Net Periodic Pension Cost vs. Pension Benefit Payments (Defined Benefit Obligations; FY 2009/10; in € m) (119) 108 569 398 387 Interest Expected return (Past) Service cost, Net periodic Pension benefit cost on plan assets other P+L effects* pension
Slide 42: Balance Sheet Structure
Balance Sheet Structure Net financial position, equity and ratios (million €) 25.4% 26.7% 22.1% 24.5% 27.4% 27.6% 23.4% 23.8% 24.3% Equity ratio 55.2% 34.0% 2.2% (8.4)% (2.1)% 13.8% 21.2% 36.4% 57.6% Gearing 11,489 10,447 10,388 10,840 Equity 9,696 8,927 8,327 7,671 7,944 6,249 4,235 3,780 2,833 2,0
Slide 43: Solid Financial Situation – No Short-Term Refinancing Needs
Solid Financial Situation – No Short-Term Refinancing Needs Liquidity analysis and maturity profile of gross financial debt as of June 30, 2011 (million €) 5,730 Available Total: 8,126 committed 3,853 credit facilities 2,078 2,217 1,919 Cash and 1,089 cash equivalents 1,877* 362 461 4th quarter 2011
Slide 44: ThyssenKrupp Rating
ThyssenKrupp Rating Long term- Short term- Outlook rating rating Standard & Poor’s BB+ B stable Moody’s Baa3 Prime-3 stable Fitch BBB- F3 stable Restoring / maintaining investment grade status with all three rating agencies is key! 5. German Corporate Conference San Francisco – Sep 19, 2011 Developi
Slide 45: Outlook FY 2010/11 – Business Areas
Outlook FY 2010/11 – Business Areas Steel Europe Elevator Technology Continuing good capacity utilization; Continuing high earnings contribution improvement in shipments and thanks to high orders in hand and average selling prices steady maintenance business Steel Americas Plant Technology Negative
Slide 46: Steel Europe – Key figures
Steel Europe Key figures 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 2,500 2,999 2,706 2,781 10,986 2,929 3,721 3,006 Sales €m 2,281 2,667 2,887 2,935 10,770 2,958 3,287 3,518 EBITDA €m 274 339 359 329 1,301 399 439 458 EBIT €m 127 193 218 193 731 258 300 322 EBIT adjusted €m 127 193 218
Slide 47: 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 3,615 3,553 3,614 3,542 3,385 3,349 3,513 3,590 3,326 3,392 3,431 3,431 3,
Slide 48: 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 49: 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 2009/10 Sales by Industry Steel Europe FY 2009/10 in % of sales in % of sales Tailored Blanks Construction Hot Strip Others Automotive i
Slide 50: Above-Average Revenues & Margins
Above-Average Revenues & Margins Business Model ThyssenKrupp Steel Europe (III) Large Multiple Scale Niches Revenues/t €/t EBITDA/t €/t 1,000 *) excl. Metal Forming 200 *) excl. Metal Forming BA Steel Europe*) BA Steel Europe*) 900 150 800 100 700 50 600 major 0 500 European competitors major Europe
Slide 51: 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 52: 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 53: Steel Americas – Key figures
Steel Americas Key figures 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 0 23 24 22 69 84 268 504 Sales €m 0 23 24 21 68 86 260 429 EBITDA €m (70) (78) (119) (297) (564) (328) (211) (95) EBIT €m (71) (79) (130) (320) (600) (378) (319) (190) EBIT adjusted €m (71) (79) (130) (320) (600) (378
Slide 54: 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 55: 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 30% 5 4 20% 3 2 10% 1 0% Car pro
Slide 56: Transatlantic Steel Concept (I)
Transatlantic Steel Concept (I) 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 m t finished steel Hot-rolled - >5* 17 C
Slide 57: ThyssenKrupp CSA
ThyssenKrupp CSA 5. German Corporate Conference San Francisco – Sep 19, 2011 Developing the future. 56
Slide 58: Comprehensive Customer Development Activities Geared to Ramp-up at TK Steel USA
Comprehensive Customer Development Activities Geared to Market-Oriented Ramp-up at ThyssenKrupp Steel USA Around 1,500 customers visits % Auto SSC 27 Shipments 36 by ramp FY Customer -up 2013/14 9 90 Industries 9 Pipe& 13 4 4 14 7 Tube 141 57 98 3 2 7 7 10 14 69 26 Yellow Goods/ Appliance 80 22 Cons
Slide 59: Stainless Global – Key figures
Stainless Global Key figures 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 943 1,560 1,317 1,301 5,121 1,483 1,790 1,360 Sales €m 1,210 1,461 1,708 1,522 5,901 1,605 1,856 1,586 EBITDA €m (4) (60) 121 46 103 48 103 43 EBIT €m (42) (101) 81 5 (57) 7 59 0 EBIT adjusted €m (42) (101) 81 5 (57
Slide 60: Stainless Global: Output, Shipments and Average Transaction Price
Stainless Global: Output, Shipments and Average Transaction Price Crude steel output* 1,000 t/quarter Shipments Stainless*: Hot-rolled and cold-rolled products 1,000t/quarter * including carbon, forging, Ni-Alloys Cold-rolled, including precision strip Hot-rolled * consolidated 657 665 652 576 624 6
Slide 61: Secure and Consolidate – Step 1: Relocate Benrath to Krefeld
Secure and Consolidate – Step 1: Relocate Benrath to Krefeld TK Stainless production footprint in Germany Effects from relocation concept of Benrath production to Krefeld site { Forward strategy on ferritics { high product quality { global market leader Krefeld Bochum* Melt shop 600 Tt Melt shop 800
Slide 62: Structural Market Logic for TK Stainless USA
Structural Market Logic for TK Stainless USA Moderate, but stable growth of NAFTA stainless demand Imports reflect structural supply gap in NAFTA [ 000 t CR ] [ 000 t CR ] 2,250 500 Actual Apparent Consumption CRU Forecast (November 2010) 2,000 400 1,750 26% 1,750 300 300 23% 1,500 21% 21% 19% 19% 2
Slide 63: Increasing Non-Volatile Customer Bases
Increasing Non-Volatile Customer Bases Sales structure within ThyssenKrupp Stainless Stainless Steel Sales by Customer Group General Stainless Steel Contract Structure Household OthersTubes Applications 47 8 Automotive Short Term Contracts 13 (<0.5 year) 40% Metal 9 Processing 51 8 SSC/Trading White
Slide 64: Stainless Global: Price Development and Import Situation
Stainless Global: Price Development and Import Situation Development of base price, alloy surcharge and nickel price Cold-rolled imports from third countries into EU [000t/month] Base Price EU* Asia Americas Others 67 Alloy Surcharge EU 63 EUR/t US$/t 57 59 56 Nickel 52 48 5,000 55,000 45 44 42 36 3
Slide 65: Stainless: Inventories and Stock Reach
Stainless: Inventories and Stock Reach Germany (cold-rolled products) USA (hot- and cold-rolled products all shapes) Stock level: INDEX Jan 2005 = 100 Stock level: INDEX Jan 2005 = 100 Stock Reach: Calendar Days Stock Reach: Calendar Days 160 160 Stock Reach Inventories Average Stock Reach Stock Rea
Slide 66: Materials Services – Key figures
Materials Services Key figures 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 2,681 3,059 3,695 3,370 12,805 3,259 3,918 3,973 Sales €m 2,760 2,881 3,598 3,524 12,763 3,311 3,704 3,980 EBITDA €m 168 101 191 150 610 117 197 181 EBIT €m 129 68 158 108 463 85 163 149 EBIT adjusted €m 48 68 158
Slide 67: Materials Services: Price Development
Materials Services: Price Development Rolled Steel €/t Stainless Steel €/t 2007/08 2008/09 2009/10 2010/11 2007/08 2008/09 2009/10 2010/11 1000 Sections / broad flanged beam 3500 940 3,248 900 Cold rolled sheets 855 Galvanized sheets 800 800 Quarto plates (R37-2) 3000 2,782 700 630 630 600 580 2500
Slide 68: Elevator Technology – Key figures
Elevator Technology Key figures 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 1,230 1,215 1,390 1,264 5,099 1,306 1,358 1,320 Sales €m 1,226 1,221 1,313 1,428 5,188 1,299 1,267 1,298 EBITDA €m 182 180 180 185 727 189 165 168 EBIT €m 165 163 162 156 646 171 147 151 EBIT adjusted €m 165 163
Slide 69: Strategic Direction of Elevator Technology
Strategic Direction of Elevator Technology Performance Improvement Growth of Service Business { Efficient and global production network Units under { Harmonized product portfolio based on global maintenance platforms { Focus on Service & Modernization 1,000,000 { Standardization of processes EBIT* a
Slide 70: Fundamental Trends for Demand in the Elevator Industry
Fundamental Trends for Demand in the Elevator Industry Population Safety/ 1 2 Urbanization 3 Aging 4 Energy efficiency Growth People People People 60+ 1950 1980 2010 2050 1950 1980 2010 2050 1950 1980 2010 2050 2.5 bn 9.1 bn 0.7 bn 6.3 bn 0.2 bn 2.0 bn SNEL Regulation* More people demand for safe tr
Slide 71: Growth Markets India & China
Growth Markets India & China Infrastructure projects provide growth opportunities until 2019/20 India China Railway Subway Railway Subway Airports Stations Systems Airports Stations Systems Number of Number of projects 100 150 100 projects ~100 >400 ~200 Sales by Region – Asia/Pacific 350 > 700 c ts
Slide 72: Plant Technology – Key figures
Plant Technology Key figures 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 1,324 824 800 911 3,859 1,016 896 1,097 Sales €m 954 940 970 1,067 3,931 897 969 943 EBITDA €m 119 106 99 116 440 115 148 149 EBIT €m 111 98 90 102 401 107 139 131 EBIT adjusted €m 111 98 90 102 401 107 139 131 Ø Ca
Slide 73: Plant Technology: Technology Portfolio Offering Growth Potential
Plant Technology: Technology Portfolio Offering Growth Potential OU Technologies Market Positions Uhde Conversion Technologies Customer Products Fertilizers: No.1 Gas & Oil Refining Fertilizers, Org. Chemicals & Polymers Polymers: No.2 Biotechnology Biopolymers Gasification Electric Power; Fuel Coke
Slide 74: Plant Technology: Growth Trend Oil Sand Mining
Plant Technology: Growth Trend Oil Sand Mining Global Crude Oil Reserves by Country (bn barrels) Bitumen Production in Canadian Open-Pit Mines mill bbl/d 300 2 Canada (mainly oil sand) Actual Forecast 250 1,5 200 150 1 100 0,5 50 0 0 Saudi- Iran Kuwait Russia Nigeria USA Arabia 2005 2010 2015 2020 2
Slide 75: Plant Technology: Selected Orders Q3 2010/11
Plant Technology: Selected Orders Q3 2010/11 Chemical Plants Cement Minerals Polymere plant Cement plant Grinding plants { Continuous poly { Greenfield project, { For coal and limestone condensation plant turnkey delivery grinding { Capacity: 1,200 mtpd { Capacity: 4,000 tpd { Customer: Samarco, Bra
Slide 76: Components Technology – Key figures
Components Technology Key figures 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 1,169 1,337 1,584 1,563 5,653 1,602 1,795 1,811 Sales €m 1,237 1,344 1,568 1,575 5,724 1,599 1,769 1,779 EBITDA €m 124 144 144 154 566 196 186 220 EBIT €m 57 73 66 56 252 127 114 141 EBIT adjusted €m 57 73 113
Slide 77: 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 78: 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 88.7 1.5 83.7 86.7 1.5 1.5 1.5 1.5 2.4 78.9 1.4 2.1 2.1 73.4 2.0 68.2 71.0 2.0 65.0 1.3 1.9 1.
Slide 79: Components Technology: Portfolio Optimization – ThyssenKrupp Waupaca
Components Technology: Portfolio Optimization ThyssenKrupp Waupaca 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 Differential H
Slide 80: Components Technology: Portfolio Optimization – ThyssenKrupp Bilstein
Components Technology: Portfolio Optimization ThyssenKrupp Bilstein – Divison Coil Springs & Stabilizers 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 stabilization Pro
Slide 81: Marine Systems – Key figures
Marine Systems Key figures 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 110 139 108 174 531 426 149 2,155 Sales €m 254 287 423 247 1,211 504 219 479 EBITDA €m 21 33 19 106 179 51 87 71 EBIT €m 16 18 8 103 145 46 84 62 EBIT adjusted €m 21 33 27 (9) 72 46 84 62 Ø Capital Employed €m 1,151 1
Slide 82: Corporate: Overview
Corporate: Overview Corporate 2009/10 2010/11 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 31 31 32 38 132 31 33 32 Sales €m 31 31 32 37 131 31 33 32 EBITDA €m (58) (58) (69) (61) (246) (78) (102) (109) EBIT €m (65) (71) (75) (80) (291) (88) (111) (120) OCF €m (203) (624) 23 (22) (827) 257 (452) (18) Emp
Slide 83: Business Area Overview – Quarterly Order Intake
Business Area Overview – Quarterly Order Intake 2009/10 2010/11 million € Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Steel Europe 2,500 2,999 2,706 2,781 10,986 2,929 3,721 3,006 Steel Americas 0 23 24 22 69 84 268 504 Stainless Global 943 1,560 1,317 1,301 5,121 1,483 1,790 1,360 Materials Services 2,681 3,059 3,695
Slide 84: Business Area Overview – Quarterly Sales
Business Area Overview – Quarterly Sales 2009/10 2010/11 million € Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Steel Europe 2,281 2,667 2,887 2,935 10,770 2,958 3,287 3,518 Steel Americas 0 23 24 21 68 86 260 429 Stainless Global 1,210 1,461 1,708 1,522 5,901 1,605 1,856 1,586 Materials Services 2,760 2,881 3,598 3,524
Slide 85: Business Area Overview – Quarterly EBITDA and Margin
Business Area Overview – Quarterly EBITDA and Margin 2009/10 2010/11 million € Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Steel Europe 274 339 359 329 1,301 399 439 458 % 12.0 12.7 12.4 11.2 12.1 13.5 13.4 13.0 Steel Americas (70) (78) (119) (297) (564) (328) (211) (95) % n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Stainl
Slide 86: Business Area Overview – Quarterly EBIT and Margin
Business Area Overview – Quarterly EBIT and Margin 2009/10 2010/11 million € Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Steel Europe 127 193 218 193 731 258 300 322 % 5.6 7.2 7.6 6.6 6.8 8.7 9.1 9.2 Steel Americas (71) (79) (130) (320) (600) (378) (319) (190) % n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Stainless Global
Slide 87: Business Area Overview – Quarterly EBIT adjusted and Margin
Business Area Overview – Quarterly EBIT adjusted and Margin 2009/10 2010/11 million € Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Steel Europe 127 193 218 193 731 258 300 322 % 5.6 7.2 7.6 6.6 6.8 8.7 9.1 9.2 Steel Americas (71) (79) (130) (320) (600) (378) (319) (190) % n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Stainles
Slide 88: Business Area Overview – Quarterly Operating Cash Flow
Business Area Overview – Quarterly Operating Cash Flow 2009/10 2010/11 million € Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Steel Europe (123) 235 152 329 593 (433) 322 184 Steel Americas (171) (93) (221) (361) (847) (585) (360) (269) Stainless Global (100) 88 (261) 57 (216) (308) 82 (139) Materials Services (82) (102
Slide 89: Business Area Overview (I)
Business Area Overview (I) Order Intake (€m) Sales (€m) Employees 9M 9M 9M 9M 9M 9M 2009/10 2010/11 2009/10 2010/11 2009/10 2010/11 Steel Europe 8,205 9,656 7,835 9,763 34,434 33,702 Steel Americas 47 856 47 775 2,876 3,995 Stainless Global 3,820 4,633 4,379 5,047 11,150 11,339 Materials Services 9,
Slide 90: Business Area Overview (II)
Business Area Overview (II) EBITDA (€m) EBIT (€m) 9M 9M 9M 9M 2009/10 2010/11 2009/10 2010/11 Steel Europe 972 1,296 538 880 Steel Americas (267) (634) (280) (887) Stainless Global 57 194 (62) 66 Materials Services 460 495 355 397 Elevator Technology 542 522 490 469 Plant Technology 324 412 299 377
Slide 91: Special Items
Special Items Business Area 2009/10 2010/11 (million €) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Materials Services: Disposal Gain TKIN and Safway 81 81 Components Technology: Restructuring Bilstein (26) (5) (31) Restructuring Berco (17) 2 (15) Restruturing total (43) (3) (46) Impairment Bilstein (3) 1 (2) Impairmen
Slide 92: ThyssenKrupp-specific Key Figures (I): EBIT Definition
ThyssenKrupp-specific Key Figures (I): EBIT Definition Q3 2010/11: Reconciliation “Income from operations” (P&L Structure) to EBIT P&L Structure EBIT definition Net sales 12,851 Net sales 12,851 - Cost of sales 1) (10,947) - Cost of sales 1) (10,947) - SG&A 1) (1,313) - SG&A 1) (1,313) +/- Other ope
Slide 93: ThyssenKrupp-specific Key Figures (I): EBIT Definition
ThyssenKrupp-specific Key Figures (I): EBIT Definition 9M 2010/11: Reconciliation “Income from operations” (P&L Structure) to EBIT P&L Structure EBIT definition Net sales 36,487 Net sales 36,487 - Cost of sales 1) (31,250) - Cost of sales 1) (31,250) - SG&A 1) (3,919) - SG&A 1) (3,919) +/- Other ope
Slide 94: ThyssenKrupp-specific Key Figures (II): EBIT/EBT adjusted & TKVA
ThyssenKrupp-specific Key Figures (II): EBIT/EBT adjusted & TKVA EBIT / EBT adjusted (= Key Performance Indicator of ThyssenKrupp) Earnings adjusted for special, nonrecurring items: { Special items to be eliminated include disposal gains/losses, restructuring expense, impairment losses, other non-op
Slide 95: Shareholder Structure
Shareholder Structure International AKBH Foundation 25.33% Free Float Mutual Funds 64.67% 74.67 % Private Investors 10.00% Source: ThyssenKrupp Shareholder ID 03/2011, ThyssenKrupp AGM registrations 5. German Corporate Conference San Francisco – Sep 19, 2011 Developing the future. 94
Slide 96: 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 97: 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
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