Thyssenkrupp Ag · XETR:TKA
Thyssenkrupp — Annual Cyclicals and Specialty Materials Forum 2003
21 slides from Thyssenkrupp's conference presentation, May 20, 2003
Slide 1: Presentation ThyssenKrupp
Presentation ThyssenKrupp Dr. A. Stefan Kirsten iith Annual Cyclicals and Specialty Materials Forum May 20, 2003
Slide 2: ThyssenKrupp Group 2001/2002
2 ThyssenKrupp Group 2001/2002 ThyssenKrupp AG Group sales (consolidated): €36.7 billion • EBT (consolidated): €762 million • Employees: 191,254 Steel Automotive Elevator Technologies Materials Serv Sales: €11.7 bn Sales: €6.3 bn Sales: €3.5 bn Sales: €5.8 bn Sales: €8.9 bn Sales: €2.5 bn EBT: €167
Slide 3: Q2 2002/2003 – Overview
3 Q2 2002/2003 – Overview Significant performance improvements achieved despite tough economic environment ¡ Sales 2% up from prior year at €9.2 billion; order intake 1% down from prior year at €9.1 billion ¡ Although sales up only slightly, significant improvement in normalized EBT from €5 million
Slide 4: H1 2002/03 – Overview
4 H1 2002/03 – Overview ¡ Sales 3% up from prior year at €17.9 billion; order intake the same as a year earlier at €18.2 billion ¡ EBT reached €391 million, an increase of €267 million compared with a year earlier; normalized EBT €350 million (from €10 million in H1 2001/2002) ¡ Earnings per share r
Slide 5: News from the Group
5 News from the Group ¡ Portfolio optimization - Thyssen Polymer to be sold to best owner - Sale of stainless quarto plate activities completed at February 1, 2003 - Sale of at-equity investment Böhler Thyssen Schweißtechnik - Acquisition of remaining 75.5% of Galmed completed at April 1, 2003 - LOI
Slide 6: Closer look at the Segments (I)
6 Closer look at the Segments (I) Steel Steel ¡ Positive earnings momentum at Carbon Steel ¡ “Price before volume” policy successfully implemented and bearing fruits ¡ High proportion of contract business and cost reduction measures secure profitability ¡ Earnings potential about €800 million 120 **
Slide 7: Focusing on High Value-Added and Innovative Flat Products
7 Focusing on High Value-Added and Innovative Flat Products Sales Structures BU Carbon Steel and BU Stainless Steel Portfolio Carbon Steel Portfolio Stainless Steel 4% Tailored Blanks 7% Processing 5% Share of value-added products Construction elements 2% Titanium Share of value-added products 17% S
Slide 8: Logistics Chain of Carbon Steel Achieves an Over-all Optimum
8 Logistics Chain of Carbon Steel Achieves an Over-all Optimum Raw materials supplies, production locations and customers Iron ore and coal North Sea imports VW DC Steel VW exports Rotterdam GM (BMW) Ford VW Antwerp Ford GM GM Ford GM Integrated plant Duisburg Ford Downstream rolling and coating sta
Slide 9: ThyssenKrupp Steel Strategy
9 ThyssenKrupp Steel Strategy ¡ Profit leader in Europe through - portfolio optimization - investment policy - performance enhancement ¡ Innovation leader in products and processes ¡ Organic growth in core business (e.g. tinplate, Shanghai Krupp Stainless, Tailored Blanks, coating) ¡ Systematic deve
Slide 10: Closer look at the Segments (II)
10 Closer look at the Segments (II) Capital Goods Automotive ¡ New innovative product for SUVs to be launched ¡ Lifetime contracts will result in a sales volume of €7.5 billion in 2003/2004 ¡ Further cost reduction measures in response to continuing price pressure Elevator ¡ Stable earnings and cash
Slide 11: Closer look at the Segments (III)
11 Closer look at the Segments (III) Services Materials + Serv ¡ Merging prior service oriented segments to larger entity “Services” ¡ Clear focus on customer-centric processes ¡ Scaling back of low-margin, high-risk activities ThyssenKrupp
Slide 12: Innovations in the Group
12 Innovations in the Group Steel design wheels with Nirosta® cover Off Road Stabilizers for SUVs ¡ High-quality appearance ¡ Integrated design flexibility ¡ Lighter and lower in cost than cast aluminum wheels Stabilizer ¡ Stiff suspension ¡ Soft suspension can be ¡ High damping ¡ Low damping switch
Slide 13: Outlook
13 Outlook ¡ We do not yet expect any major improvement in the economic enviroment in the 2nd half of 2002/2003 ¡ Nevertheless we will continue to strengthen our earning power. Assuming no further deterioration in the economic parameters, we aim to achieve 2nd-half earnings before taxes which should
Slide 14: Targets Unchanged
14 H Targets Unchanged Janu andout ary 1 5, 20 02 Medium-term financial targets (excl. effects of SFAS 141/42): EBITDA > €4 billion EBT > €1.5 billion ROCE > 12% EVA > €0.5 billion Gearing approx. 60% Net financial payables ˜ €5.5 billion ThyssenKrupp
Slide 15: Enhancing the Value of ThyssenKrupp
15 Enhancing the Value of ThyssenKrupp Group focused on Steel, Capital Goods and Services Productivity improvements/ Strategy and market ThyssenKrupp best restructuring measures Focus the Group on Continuous productivity Main themes: – Steel improvements of at least – Operating efficiency – Capital
Slide 16: ThyssenKrupp - Strategic Direction
16 ThyssenKrupp - Strategic Direction ThyssenKrupp AG Strategic Potential Steel Automotive Elevator Technologies Materials Serv • Carbon Steel • Chassis • Germany/ • Production Systems • MaterialsServices • Industrial Services • Stainless Steel • Body Austria/Switzerland (Body-in-white, Europe (new)
Slide 17: ThyssenKrupp: Focused industrial group based on 3 pillars
17 ThyssenKrupp: Focused industrial group based on 3 pillars Sales in € bn ThyssenKrupp AG 01/02 €36.7 bn mid-term target €40-46 bn Steel Automotive Elevator Technologies Materials Serv Sales 01/02 11.7 6.3 3.5 5.8 8.9 2.5 Services Sales mid-term ~10-11 target ~13-14 ~8-10 ~5-6 ~4-5 Steel Capital Go
Slide 18: ThyssenKrupp: Strategic link
18 ThyssenKrupp: “Strategic link” ThyssenKrupp Steel Capital Goods Services • Cross-segment development for client solutions Market • Global presence Tech- • Businesses with strong engineering competence and technological claim nology Services • Cross-business service solutions Materials • Strong ma
Slide 19: Cross segment development of client solutions, examples (I)
19 Cross segment development of client solutions, examples (I) ThyssenKrupp capabilities for the automotive industry Steel Automotive Technologies Services Carbon Body Body Material Facility Mgt. Steel -in-white -in-white supply incl. HVAC Performance Stainless Frames Plant Cutting of operating asse
Slide 20: Cross segment development of client solutions, examples (II)
20 Cross segment development of client solutions, examples (II) ThyssenKrupp capabilities for construction industry Steel Elevator Technologies Services Hot-dip Large- galvanized diameter Materials Elevators bearings Scaffold- sheets for ¡ Facades and rings related ¡ Wall and services roof Plants fo
Slide 21: Presentation ThyssenKrupp
Presentation ThyssenKrupp Dr. A. Stefan Kirsten iith Annual Cyclicals and Specialty Materials Forum May 20, 2003
ThyssenKrupp — Annual Cyclicals and Specialty Materials Forum 2003 on 6ix