Thyssenkrupp Ag · XETR:TKA
Thyssenkrupp — Investor Presentation (August 2015)
70 slides from Thyssenkrupp's investor presentation, August 2015
Slide 1: Presentation Facts & Figures
Presentation Facts & Figures Ticker: TKA (Share) TKAMY (ADR) August 2015 Developing the future.
Slide 2: Agenda
Agenda Presentation slides 2-12 • Key Figures, Group Outlook and Strategic Way Forward • Group Performance and Financials Facts & Figures slides 17-68 Presentation ThyssenKrupp August 2015 1 Developing the future.
Slide 3: Value Opportunity from Group Transformation
Value Opportunity from Group Transformation Active portfolio One integrated Capital management company efficiency Diversified Industrial Company Leading market Benchmark Profitable positions performance growth Leading Engineering Competence Transformation to a global Diversified Industrial aiming
Slide 4: Q3 Targets Achieved – Group Transformation on Track
Q3 Targets Achieved – Group Transformation on Track SWF EBIT adj. (€m) €1.6-1.7 bn 1,329 539 FY 517 394 405 317 318 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q4E 2011/12 2012/13 2013/14 2014/15 Improvements driven by efficiency gains from and growth EBIT adj. up by >30% yoy / qoq – highest in 15 quarters • CT – hig
Slide 5: Update FY 14/15E: EBIT adj. €1.6-1.7 bn, Sales Growth at 1-Digit % Rate
Update FY 14/15E: EBIT adj. €1.6-1.7 bn, Sales Growth at 1-Digit % Rate EBIT adj. €1.6-1.7 bn CT Sales growth* with slightly increased €1.3 bn earnings by ramp-up new plants and Growth / Markets efficiency gains/restructuring ET Sales growth* with increased earnings & margin improvement by 0.5-0
Slide 6: Entering the Next Phase in the Transformation Journey
Entering the Next Phase in the Transformation Journey: SWF More Structural Growth and Less Cyclical Volatility • EBIT adj.: €1.6-1.7 bn • Establishing EBIT adj. floor with ~€2 bn as minimum requirement • NI: further improvement • Sustainable cash generation • FCF before divest: strive for at least b
Slide 7: Agenda
Agenda Presentation slides 2-12 • Key Figures, Group Outlook and Strategic Way Forward • Group Performance and Financials Facts & Figures slides 17-68 Presentation ThyssenKrupp August 2015 6 Developing the future.
Slide 8: CapGoods Benefit from Global Footprint via Growth and F/X
CapGoods Benefit from Global Footprint via Growth and F/X Order intake – continuing operations (million €) now incl. proportionate consolidation HKM Group cont. ops. +5% +2% yoy qoq -1%* CT: • yoy up by 8% (-1%*) 10,153 10,406 10,647 • LV robust, truck weak (CHN, BRA), wind ind. strong (CHN, BRA) St
Slide 9: Sales Growth with Tailwinds from F/X
Sales Growth with Tailwinds from F/X Sales – continuing operations (million €) Group cont. ops. now incl. proportionate consolidation HKM +4% CT: • yoy up by 10% (0%*) +2% yoy qoq • LV robust but softer in -2%* China, truck weak, 10,720 10,995 11,178 wind ind. strong ET: • yoy up by 17% (+3%*) 453 4
Slide 10: 4 out of 6 BAs With Improved EBIT Adj. YoY and QoQ
4 out of 6 BAs With Improved EBIT Adj. YoY and QoQ EBIT adjusted (million €); EBIT adjusted margin (%) Group cont. ops. now incl. proportionate consolidation HKM +37% +33% EBIT adj. % yoy qoq Q3 306 394 405 539 CT: • Efficiency gains & growth yoy 91 5.2 ET: • Efficiency gains & growth yoy IS: • Reve
Slide 11: EBIT Improvement Reflected in Net Income Development
EBIT Improvement Reflected in Net Income Development Net income reconciliation Q3 2014/15 (million €) Q3 2013/14 539 (45) 494 (138) EPS* EPS* 0.35€/sh 0.35€/sh 394 (165) 345 191 191 43 42 EBIT adj. Special EBIT rep. Financial Taxes Income Net income items line full group Financial line yoy improveme
Slide 12: Reduction of Gearing by Equity Build-up and Deleveraging
Reduction of Gearing by Equity Build-up and Deleveraging Q3 2014/15 – full group (million €) 2013/14 2014/15 Q4 Q1 Q2 Q3 Net Income (47) 43 45 191 Earnings improvement Discount rate* 2.60 2.10 1.50 2.40 Rising interest rate environment Pension & similar 7,490 8,020 8,651 7,730 Pension liability decl
Slide 13: Outlook Q4 2014/15
Outlook Q4 2014/15 EBIT adjusted (million €); EBIT adjusted margin (%) 5.2 2.4 Components 3.8 91 1.7 Materials 61 yoy 89 qoq Technology 64 Services up seasonally down 11.3 11.3 202 211 7.3 166 Elevator 1.7 Steel Technology yoy 36 qoq Europe up seasonally down 5.5 6.1 Industrial 100 96 (6.2) Steel yo
Slide 14: Financial Calendar – FY 2014/15
Financial Calendar – FY 2014/15 IR contact +49 201-844-536480 ir@thyssenkrupp.com August Roadshows London (18th), London, Japanese Investors (19th), Dublin (20th) September Roadshows Montreal (16th) Conferences HSBC Capital Goods Conference, London (2nd) Credit Suisse Industrials Conference, Lon
Slide 15: Financial Calendar – FY 2015/16
Financial Calendar – FY 2015/16 October Roadshows Toronto (8th), Boston (9th) November Conference Call FY 2014/15 (19th) December Capital Market Day, London (8th) Conferences Societe Generale Premium Review Conference, Paris (2nd) Presentation ThyssenKrupp August 2015 14 Developing the future.
Slide 16: Share and ADR Data
Share and ADR Data Shares outstanding 565,937,947 Type of share No-par-value bearer shares Voting One share, one vote Share Data Ticker Symbol TKA German Security Identification Number (WKN) 750 000 ISIN Number DE0007500001 Exchange Frankfurt, Dusseldorf ADR Data Ratio (ordinary share: ADR) 1:1 ADR
Slide 17: Appendix
Agenda Appendix Presentation ThyssenKrupp August 2015 16 Developing the future.
Slide 18: ThyssenKrupp – Strategic Way Forward
ThyssenKrupp – Strategic Way Forward More & Better Diversified Industrial Company Positioning Sustainability Change People Performance Customers & Financial Strategic Management Success Orientation Markets Stability Push Mission Employee Active portfolio Brand Balanced White/adjacent Sta
Slide 19: Group Overview ThyssenKrupp
Group Overview ThyssenKrupp FY 2013/14: Sales €41.3 bn • EBIT adj. €1.3 bn • Employees 162,372 Components Sales: €6.2 bn Elevator €6.4 bn Industrial €6.3 bn Technology EBIT adj.: €268 m Technology €674 m Solutions €420 m Automotive components Elevators Petrochemical plants •Powertrain Escala
Slide 20: Group and Business Areas EBIT Track Record
Group and Business Areas EBIT Track Record EBIT adjusted, EBIT adjusted margin (million €, %) 2.4 2.0 Materials 1.6 6.5 Services 311 236 212 Comp. 4.2 4.3 Techn. 453 240 268 2.2 1.5 2.5 Steel 247 143 221 Europe 10.5 Elevator ~9.1 ~9.7 Techn. ~520* ~600* 674 (495) (68) Steel * pro forma (1.010) Ameri
Slide 21: Systematic Benchmarking Aiming at Best-in-Class Operations
Systematic Benchmarking Aiming at Best-in-Class Operations Selected Peers / Relevant Peer Segments Components • Chassis & Powertrain: Materials Technology Continental; NSK (JPN); ZF/TRW Services • ArcelorMittal / Distribution Solutions • Industry: • Klöckner SKF (Industrial); • Reliance Titan Int’l
Slide 22: ThyssenKrupp's Leading Engineering Competence Supports Better for More
ThyssenKrupp’s Leading Engineering Competence Supports Better for More Demand Demand Drivers Business opportunities Constraints (“more”) (“better”) Demography Climate change Reduced CO2 More consumer emissions, and capital Leading renewable goods engineering energies expertise Urbanization Finite Mo
Slide 23: Mid- to Long-Term Perspective From Strategic Way Forward
Mid- to Long-Term Perspective From Strategic Way Forward SWF CT return to previous margin levels (6-8%) MX return to previous margin levels • efficiency gains • efficiency gains • ramp-up new plants • specialization & processing Profitability before growth Profitability AST: perform./attract.
Slide 24: Entering the Next Phase in the Transformation Journey: Return to Dividend
Entering the Next Phase in the Transformation Journey: Return to Dividend 700 2 635 603 Dividend payment (€m) 1,8 600 Dividend (€/share) 1,6 489 500 1.30 1.30 1,4 412* 400 1,2 1.00 1 299 0.80* 300 0,8 0.60 232 209 200 0,6 139 0,45 0,45 0,4 100 0.30 62 0,2 0.11 0 0 2003/04 2004/05 2005/06 2006/07 200
Slide 25: Key Financials (I)
Cont. Ops. Key Financials (I) (incl. Steel Americas with Steel USA until Feb 26, 2014) 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 10,661 10,210 10,153 10,352 41,376 10,094 10,406 10,647 Sales €m 9,088 10,269 10,720 11,135 41,212 10,044 10,995 11,178 EBITDA €m 482 610 644 409 2,145 590 6
Slide 26: Key Financials (II)
Cont. Ops. Key Financials (II) (incl. Steel Americas with Steel USA until Feb 26, 2014) 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 TK Value Added* €m (282) Ø Capital Employed* €m 15,492 16,126 16,123 15,853 15,853 15,676 16,015 16,202 Goodwill** €m 3,574 Depreciation/amort. €m 273 286 286 298 1,143 305
Slide 27: Key Financials (III)
Full Group Key Financials (III) (Cont. ops. + Inoxum effects until Q2 13/14) 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 10,661 10,210 10,153 10,352 41,376 10,094 10,406 10,647 Sales €m 9,088 10,269 10,720 11,135 41,212 10,044 10,995 11,178 EBITDA €m 669 608 643 410 2,330 587 675 796 EBI
Slide 28: Sales by Region FY 2013/14
Sales by Region FY 2013/14 ThyssenKrupp Components Elevator Industrial Materials Steel Steel Group Technology Technology Solutions Services Europe Americas 41,304 €m 6,172 6,416 6,271 13,660 8,819 2,060 Germany % 32 9 14 33 60 7 30% Germany Europe (excl. Germany) % 21 25 18 38 30 0 North and Central
Slide 29: Special Items
Special Items Business Area 2013/14 2014/15 (million €) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Disposal effect 2 2 Impairment (1) CT Restructuring (7) (4) (14) (25) (1) (10) Others (1) (8) (1) (1) (11) (2) Disposal effect (1) 1 Impairment (11) (11) ET Restructuring (41) (4) (9) (57) (111) (1) (6) (9) Others (73) (
Slide 30: Sustainable Efficiency Gains to Support EBIT Target FY 2014/15E
Sustainable Efficiency Gains to Support EBIT Target FY 2014/15E Ramp-up Efficiency Gains 2015 Efficiency Gains 2015 by Business Area million € Corporate >850 >2,500 Industrial Solutions ~6% ~15% Steel Europe ~27% Components Technology ~14% ~13% >1,000 ~14% Steel Americas Elevator Technology ~12% Mat
Slide 31: Capex Allocation
Capex Allocation Cash flows from investing activities – continuing operations CapGoods (CT, ET, IS) Group cont. ops. CT Materials (MX, SE, AM) ET max €1.5 bn IS ~8 MX ~31 ~€1.3 bn SE ~34 ~€1.26 bn AM ~36 in % ~33 ~12 ~11 ~2 CT 31% ~8 30% ET 11% 7% Growth thereof: CT: ~60% 5% Maint. SE: ~20% IS 5% IS
Slide 32: Solid Financial Situation
Solid Financial Situation Liquidity analysis and maturity profile of gross financial debt as of June 30, 2015 (million €) 7,719 Available Total: 8,437 committed 3,670 credit facilities €1 bn / 8.5% bond matures in Feb 2016 (all other outstanding bonds with coupon <5%) 3,085 Cash and 4,049* 1,674 1,7
Slide 33: Innovation as Key Element in Diversified Industrial Concept
Innovation as Key Element in Diversified Industrial Concept R&D expenses TK Group (in €m) The InCar®plus Project 2013/2014 Further increase by all Highlights: Business Areas planned • 30 projects with more than 40 individual solutions • Green, cost-competitive, lightweight, 708 high-performing 647
Slide 34: Accrued Pension and Similar Obligations
Accrued Pension and Similar Obligations Accrued pension and similar obligations (in €m) Accrued pension & similar obligations expected to Accrued postretirement decrease over time (in €m) 7,348 7,490 obligation other than Assumption: unchanged discount rate 10 pensions 7,354 192 698 436 Other accrue
Slide 35: Majority of Pension Plans Subject to German Pension Accounting
Majority of Pension Plans Subject to German Pension Accounting Funded status of defined benefit obligation Development of accrued pension liabilities (FY 2013/14, in €m) (FY 2013/14, in €m) Germany Outside Germany 2,305 (215) DBO 7,068 6,852 6,480 7,288 2,473 (2,090) 53 436 756 Defined Plan assets A
Slide 36: Mature Pension Schemes: Benefit Payments Higher Than Costs
Mature Pension Schemes: Benefit Payments Higher Than Costs Elements of Change in Accrued Pensions and Similar Obligations (in €m) / Position in Key Financial Statements Actuarial losses due to lower discount rate 125 5 (5) 15 overcompensate deconsolidation effect (Budd) (537) 217 206 7,490* 7,484* (
Slide 37: Components Technology – Q3 2014/15 Highlights
CT Components Technology – Q3 2014/15 Highlights Order intake in €m Quarterly order intake auto components EBIT in €m; EBIT adj. margin in % Q3 2014/15: yoy increase in order intake EBIT adjusted EBIT driven by robust LV demand in the US and further recovery in Europe 91 83 69 67 61 1,743 5.2 1,534
Slide 38: Components Technology Key Figures
CT Components Technology Key figures 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 1,439 1,573 1,611 1,534 6,157 1,621 1,763 1,743 Sales €m 1,428 1,555 1,603 1,586 6,172 1,597 1,732 1,758 EBITDA €m 121 136 135 123 514 140 159 159 EBITDA adjusted €m 129 144 139 135 547 140 162 168 EBIT* €m
Slide 39: Components Technology – Overview Eight Business Units in Three Clusters
Components Technology – Overview CT Eight Business Units in Three Clusters Sales: €6,172 m; Employees: 28,941 CHASSIS POWERTRAIN INDUSTRY (~60% of sales) (~20% of sales) (~20% of sales) STEERING DAMPERS CAMSHAFTS BEARINGS Motor Excavator FORGED & SPRINGS & MACHINED SYSTEMS STABILIZERS COMPONENTS UND
Slide 40: Pacing to Margin Increase and Topline Growth
CT Pacing to Margin Increase and Topline Growth return to previous margin levels (6-8%) • efficiency gains • ramp-up new plants EBIT adj. margin (%) Profitability 6-8% Growth Step change in quality and 4.3% Performance cost position Streamlining of processes and structures Wave of innovation
Slide 41: Elevator Technology – Q3 2014/15 Highlights
ET Elevator Technology – Q3 2014/15 Highlights Order intake in €m Units under Maintenance EBIT* in €m; EBIT adj. margin in % 9M: 5,074 9M: 5,809 EBIT adjusted EBIT CAGR ~ 1.2 m 2,051 1,868 1,890 +4.6% 1,692 1,745 202 211 ~0.8 m 173 178 168 +0.5%-p. 11.3 11.3 10.8 10.4 10.1 165 62 176 158 199 Q3 Q2 Q
Slide 42: Elevator Technology Key Figures
ET Elevator Technology Key figures 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 1,801 1,581 1,692 1,745 6,819 1,868 1,890 2,051 Sales €m 1,544 1,481 1,609 1,783 6,417 1,712 1,661 1,876 EBITDA* €m 133 157 184 91 566 195 177 220 EBITDA adjusted* €m 175 161 192 219 748 196 187 233 EBIT* €m 1
Slide 43: Elevator Technology – Overview
ET Elevator Technology – Overview Elevator Technology Sales*: €6,416 m; Employees*: 50,282 Central/Eastern/ Southern Europe/ Access Americas Asia/Pacific Northern Europe Africa/Middle East Solutions Home elevators, stair lifts, Elevators/Escalators new installation, Passenger service and modernizati
Slide 44: Five Initiatives to Improve Performance and Push Growth
Five Initiatives to Improve Performance and Push Growth ET target: 15%* I €1 bn (EBIT adj.) • efficiency gains and growth opportunities Q1 Q2 Q3 Q4 Presentation ThyssenKrupp August 2015 43 Developing the future.
Slide 45: Industrial Solutions – Q3 2014/15 Highlights
IS Industrial Solutions – Q3 2014/15 Highlights Order intake in €m Order backlog in €bn EBIT* in €m; EBIT* adj. margin in % 9m:4,518 9m:3,151 EBIT adjusted EBIT 112 109 2,295 12.5 100 92 96 Systems Marine Systems Marine >30% of 1,334 sales 1,188 7.1 1,035 1,075 covered 6.7 6.7 5.5 6.1 Technology 742
Slide 46: Industrial Solutions Key Figures
IS Industrial Solutions Key figures 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 2,295 1,188 1,035 1,214 5,732 1,075 742 1,334 Sales €m 1,288 1,593 1,585 1,805 6,271 1,377 1,633 1,574 EBITDA* €m 105 129 126 124 484 107 124 117 EBITDA adjusted* €m 105 132 126 116 480 104 124 111 EBIT* €m 9
Slide 47: Industrial Solutions – Engineering Powerhouse Within ThyssenKrupp
Industrial Solutions – Engineering Powerhouse Within ThyssenKrupp IS Industrial Solutions Order intake: €5,732 m | Sales: €6,271 m | Employees: 18,546 Process Resource Marine System Unit Technologies Technologies Systems Engineering Chemicals Mining Submarines Automotive Market Fertilizer Cement Nav
Slide 48: Enhancing Growth Across All Regions & Becoming a Global Leading Player
IS Enhancing Growth Across All Regions & Becoming a Global Leading Player IS sales growth by Ø ~5% Sales to €8 bn >€8 bn • maintain EBIT margin* of 6-7% Growth €6.3 bn €5.6 bn Market Growth EBIT Expansion of Accessible Market by margin EBIT EBIT • new technology solutions 6-7% margin margin • serv
Slide 49: Materials Services – Q3 2014/15 Highlights
MX Materials Services – Q3 2014/15 Highlights Order intake* in €m Materials warehousing shipments in 1,000 t EBIT in €m; EBIT adj. margin in % * thereof materials warehousing business ~60% excl. AST/VDM shipments EBIT adjusted EBIT 89 3,700 3,726 3,723 3,572 64 3,546 58 AST/ VDM 49 1,429 1,437 1,384
Slide 50: Materials Services Key Figures
MX Materials Services Key figures 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 2,842 3,414 3,700 3,726 13,682 3,546 3,723 3,572 thereof Special Materials 288 731 599 1,618 546 729 736 Sales €m 2,739 3,320 3,780 3,821 13,660 3,421 3,794 3,778 thereof Special Materials 266 763 689 1,718 522
Slide 51: Trading
Link Between Industrial and Raw Materials Producers and Customers MX Materials Services: Sales: €13,660 m; Employees: 30,289 Producers Business Warehousing/ • Distribution Production Area Service • Value added services Materials center • Supply chain management Trading Stainless steel (AST) Services
Slide 52: Materials Services – Performance and Growth Levers
Materials Services – Performance and Growth Levers MX return to previous margin levels • efficiency gains • specialization & processing AST: perform./attract. concept • Organic growth • Selected smaller growth investments (e.g. USA) Presentation ThyssenKrupp August 2015 51 Developing the future.
Slide 53: Steel Europe – Q3 2014/15 Highlights
SE Steel Europe – Q3 2014/15 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 adjusted EBIT 166 119 118 117 113 114 113 7.3 103 4.6 79 2.177 2.034 2.095 2.394 2.050 5.0 2.858 2.847 3.155 3.052 36 2.554 4.0 1.7 91 31 80 113
Slide 54: Steel Europe Key Figures
SE Steel Europe Key figures 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 2,272 2,429 2,177 2,034 8,912 2,095 2,394 2,050 Sales €m 2,066 2,377 2,219 2,157 8,819 1,985 2,260 2,287 EBITDA €m 137 172 206 133 648 199 217 259 EBITDA adjusted €m 137 182 219 139 677 199 217 271 EBIT* €m 19 54 91
Slide 55: Impact on KPIs from Proportionate Consolidation HKM
SE Impact on KPIs from Proportionate Consolidation HKM (as of Oct 1st, 2013) KPI FY 2013/14 Δ proportionate FY 2013/14 (in million €) without HKM consolidation HKM with HKM Sales Group 41,304 -92 41,212 SE 8,857 -38 8,819 EBITDA adjusted Group 2,409 +57 2,466 SE 620 +57 677 EBIT adjusted Group 1,314
Slide 56: Overview Business Area Steel Europe
SE Overview Business Area Steel Europe Key Figures Steel Europe* 2009/10 2010/11 2011/12 2012/13 2013/14 Sales €m 10,770 12,814 10,992 9,620 8,819 Crude steel kt 13,296 13,247 11,860 11,646 12,249 Shipments kt 12,009 13,022 12,009 11,519 11,393 EBITDA €m 1,301 1,670 659 512 648 EBIT €m 731 1,133 188
Slide 57: Comprehensive Cost & Differentiation Program
Costs Comprehensive Cost & Differentiation Program Geared to Mix SE Sustainable Improvement of Profit and Cash Flow Profile Differentiation EBIT adj / EBITDA adj * in € bn Business Cash-Flow** in € bn EBITDA adj. EBIT adj. TKVA in € bn historically with manageable volatility sig +ve EBIT adj / BCF i
Slide 58: Steel Europe: Output, Shipments and Revenues per Metric Ton
SE 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 3,312 3,418 3,189 3,153 3,256 3,155 3,052 2,965 2,912 3,146 3,119 3,020
Slide 59: Steel Americas – Q3 2014/15 Highlights
AM Steel Americas – Q3 2014/15 Highlights Order intake in €m Production & shipments in 1,000 t EBIT in €m 1.071 1.054 987 EBIT adjusted EBIT 620 900 1.021 12 519 Slab production 0 475 CSA 412 420 Q3 Q2 Q3 (20) (25) 13/14 14/15 (34) 1.046 1.131 915 967 964 4 (54) (11) (19) (28) Slab shipments CSA Q3
Slide 60: Steel Americas Key Figures
AM Steel Americas Key figures 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 609 574 412 620 2,215 475 420 519 Sales €m 538 535 441 546 2,060 502 453 441 EBITDA €m 29 143 33 (16) 188 21 17 8 EBITDA adjusted €m 10 1 40 (4) 48 32 15 11 EBIT €m (1) 115 4 (54) 64 (11) (19) (27) EBIT adjusted* €
Slide 61: US Assets Divested And Forward Strategy TK CSA Defined
US Assets Divested And Forward Strategy TK CSA Defined AM Current focus on operating improvements in Brazil Exit TK Steel USA slab sales TK CSA 4.1 Sale to MT/NSSMY in m t/yr Price: $1.55 bn 3.5 • stabilization & TKS USA 3.3 continuous ramp-up Alabama • efficiency imprvmts 2.8 • implement sales or
Slide 62: Positive EBITDA Achieved in FY13/14, Cash Break-Even Targeted in FY14/15
AM Positive EBITDA Achieved in FY‘13/14, Cash Break-Even Targeted in FY’14/15 2010/11 2011/12 2012/13 2013/14 2014/15E 3.5 BRL/USD 0.05 (0.2) (0.1) 3.0 (0.4) BCF 2.5 (0.5) (0.2) ~ break-even (0.6) during FY ’14/15 2.0 (0.7) 1.5 Positive (1.1) (0.5) EBITDA adj 1.0 in FY 2013/14 2004 2006 2008 2010 20
Slide 63: Corporate: Overview
Corp Corporate: Overview Key figures 2013/14 2014/15 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake €m 42 43 41 52 177 47 49 44 Sales €m 42 42 42 52 177 45 48 46 EBITDA €m (107) (189) (130) (88) (514) (96) (96) (87) EBITDA adjusted €m (94) (109) (127) (48) (378) (91) (88) (79) EBIT* €m (116) (199) (139) (108)
Slide 64: Enhanced Management Compensation: Strengthening of LTI
Enhanced Management Compensation: Strengthening of LTI LTI: Share price, TKVA (target TKVA = 0) Payout now limited to 250% of initial value (formerly: 300%) Long-Term 50% Increase of €20 m Ø TKVA (if TKVA >0) = 1% increase in number of rights 60% Incentive Plan Variable (LTI) Reduction of €10 m
Slide 65: ThyssenKrupp Rating
ThyssenKrupp Rating Long-term Short-term Outlook rating rating Standard & Poor’s BB B stable Moody’s Ba1 Not Prime negative Fitch BB+ B stable Presentation ThyssenKrupp August 2015 64 Developing the future.
Slide 66: Shareholder Structure
Shareholder Structure AKBH Foundation 23.03% Free Float 76.97% Private Investors 10.00% International Mutual Funds 66.97% incl. Cevian Capital 15.08% Source: WpHG Announcements; ThyssenKrupp Shareholder ID 03/2015 Presentation ThyssenKrupp August 2015 65 Developing the future.
Slide 67: ThyssenKrupp-specific Key Figures (I): Reconciliation of EBIT Q3 2014/15
ThyssenKrupp-specific Key Figures (I): Reconciliation of EBIT Q3 2014/15 P&L Structure EBIT definition Net sales 11,178 Net sales 11,178 - Cost of sales (9,341) - Cost of sales (9,341) - SG&A, R&D (1,436) - SG&A, R&D (1,436) +/- Other income/expense 52 +/- Other income/expense 52 +/- Other gains/los
Slide 68: ThyssenKrupp-specific Key Figures (II): Reconciliation of EBIT 9M 2014/15
ThyssenKrupp-specific Key Figures (II): Reconciliation of EBIT 9M 2014/15 P&L Structure EBIT definition Net sales 32,217 Net sales 32,217 - Cost of sales (27,117) - Cost of sales (27,117) - SG&A, R&D (4,131) - SG&A, R&D (4,131) +/- Other income/expense 86 +/- Other income/expense 86 +/- Other gains/
Slide 69: 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 70: 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