Thyssenkrupp Ag · XETR:TKA
Thyssenkrupp — Investor Day (December 2021)
32 slides from Thyssenkrupp's investor day presentation, Dec 2, 2021
Slide 1: Capital Market Day 2021 Industrial Components
Capital Market Day 2021 Industrial Components Essen, December 2nd, 2021
Slide 2: Industrial Components (IC): Mission critical components for wind energy, automotive, construction and mining
Industrial Components (IC): Mission critical components for wind energy, automotive, construction and mining Bearings (BG) Forged Technologies (FT) Market leader for large slewing bearings, supplying pivotal Largest steel forging company in the world, supplying leading components for wind energy and
Slide 3: Sales and profit recovery: Now focused on ambitious mid-term delivery
Sales and profit recovery: Now focused on ambitious mid-term delivery Financial performance Mid-term plans Cont. operations FY FY FY FY [€ mn] 18/19 19/20 20/21 21/22E Comment Sales 2,522 2,099 2,512 • BG: FY 20/21 pushed by pull- % yoy growth % (16.8)% 19.7% forward effects in wind China, Sales gro
Slide 4: Industrial Components Bearings
Industrial Components Bearings 4
Slide 5: Bearings: Management team
Bearings: Management team Philipp Conze Winfried Schulte Dr. Wilfried Spintig CFO | Since 2020 CEO | Since 2013 COO | Since 2017 More than 70 years of combined industry experience, thereof >50 years at Bearings Successful strategic development of the company Proven functional and operational e
Slide 6: We are a global supplier of mission-critical slewing bearings
We are a global supplier of mission-critical slewing bearings Products are mainly mission-critical slewing bearings Attractive and diverse customer portfolio (examples) Wind Energy Industry Slewing bearings Rings from 100 mm up to 8 m; Seamlessly rolled segmented up to 25 m up to 8 m Main product of
Slide 7: We build on a strong and resilient financial profile with high cash conversion
We build on a strong and resilient financial profile with high cash conversion Emerging Wind Energy partly driven by regulatory Strong Wind Energy volatilities; Industry w/ stable growth over the cycle devlpmt, esp. China • Overall good growth story 1.400 20 at or above market level €1.3 bn +5%1 1.2
Slide 8: Bearings – We empower industries to break new ground and master the shift into a sustainable future
Bearings – We empower industries to break new ground and master the shift into a sustainable future Investment highlights #1 supplier of mission-critical components slewing bearings Attractive end markets, especially high-growth wind energy sector Leading expertise & technology bringing value to our
Slide 9: We supply mission-critical components customized to specific requirements
01 #1 supplier of mission-critical components slewing bearings We supply mission-critical components customized to specific requirements (examples) Rotor bearings Excavator bearing Mission-critical & attractive margins • Slewing bearings enable rotating movements and are essential for operations of
Slide 10: We are serving sector-leading customers: Customized products and technologies
02 Attractive end markets esp. high-growth wind energy sector We are serving sector-leading customers: Customized products and technologies Slewing bearing for the world's largest tunnel boring machine Largest single main bearing installed in 10MW+ offshore wind turbines Tuen Mun Tunnel, Hong Kong O
Slide 11: We have a strong position in the wind market: A long-term growth market
02 Attractive end markets esp. high-growth wind energy sector We have a strong position in the wind market: A long-term growth market Positive wind energy outlook from Significant upside potential current projection from ambitious decarbonization targets New installations in GW/a CAGR 19-28 Fit for
Slide 12: We have decades of experience in the wind industry – and the solutions for future developments
03 Leading expertise & technology bringing value to customers We have decades of experience in the wind industry – and the solutions for future developments Innovations drive demand for larger bearings Technology competence meeting BG’s strengths with ~45 years of experience in wind industry +14 MW
Slide 13: We have the proof points and will drive profitability from growth and additional upsides
04 Leveraging proven strengths to grow and drive profitability We have the proof points and will drive profitability from growth and additional upsides Performance proof points … … to further leverage w/ upsides FY 12/13 FY 20/21 Invest program focused on wind growth in BCC1 Best-cost- country expan
Slide 14: We consider ESG as integral part of our strategy
We consider ESG as integral part of our strategy CO2 emission reductions Decarbonization-enabling (scope1 & 2) Bearings business and carbon neutrality (i.e. wind energy) • Transform to green energy in • Continuous innovation to foster production sites at global scale next generation wind turbines •
Slide 15: Bearings – Committed to realize sustainable shareholder value
Bearings – Committed to realize sustainable shareholder value Our strategy: Wind energy market… … capitalize on attractive growth as market and technology leader Our commitment: Industrial markets … growth ≥5% CAGR … maintain strong position in diverse end markets benchmark profitability P
Slide 16: Industrial Components (IC): Mission critical components for wind energy, automotive, construction and mining
Industrial Components (IC): Mission critical components for wind energy, automotive, construction and mining Bearings (BG) Forged Technologies (FT) Market leader for large slewing bearings, supplying pivotal Largest steel forging company in the world, supplying leading components for wind energy and
Slide 17: Industrial Components Forged Technologies
Industrial Components Forged Technologies
Slide 18: Experienced and focused management team
Experienced and focused management team … Dr. Franz Eckl Roland Klotti CFO | Since 1st of January 2020 COO | Since 1st of April 2017 Patrick Buchmann CEO | Since 1st of August 2021 … with more than 70 years of combined industry experience 18
Slide 19: Number one in steel forging: First choice for our customers
Number one in steel forging: First choice for our customers Mission critical components: Highly engineered, forged, machined Strong customer base: Leading OEMs world-wide Engine (ICE 1) Chassis Undercarriages Passenger cars Trucks Construction/mining BMW GM Caterp. Kenworth Bobcat Liebherr Crankshaf
Slide 20: Forged Technologies: Generating consistent profits and cash
Forged Technologies: Generating consistent profits and cash Financial performance €1,425 mn Passenger cars €1,213 mn €904 mn Trucks1 Sales Undercarriages FY 18/19 FY 19/20 FY 20/21 EBIT Consistently margin on level of top industry peers Cash High cash conversion rate throughout the years 1. Includin
Slide 21: Forged Technologies – We equip the machines that move the world
Forged Technologies – We equip the machines that move the world Investment highlights Global footprint and unique machine park drive competitive advantage Synergies between automotive and undercarriage support further operational and commercial improvements Strong ICE position underpins product port
Slide 22: With the integration of automotive and industry businesses, we have formed the largest steel forging company in the world
With the integration of the automotive and industry businesses, we have formed the largest steel forging company in the world Sales FY 20/21 in € mn (in comparison to competitor 2020 sales) ~1,200 1 ~400 1 ~750 ~600 ~800 2 ~400 3 ~200 ~120 ~330 4 Forged Technologies Other business (less comparable)
Slide 23: Global footprint and unique machine park drive competitive advantage
Global footprint and unique machine park drive competitive advantage Competitive advantage Customer proximity • Global solutions for Waukesha, WI local demands of Essen (HQ) Veedersburg, IN Danville, IL international OEMs Homburg • Flexibility and cost Apriltsi Puyallup, WA Greensboro, NC Copparo Na
Slide 24: Maximizing synergies between automotive and industry segments
Maximizing synergies between automotive and industry segments High automotive standards transferred to undercarriage business Operations Exchange of best-practice and key personnel Operational excellence and best possible asset utilization Joint supplier base for raw material and indirect material/s
Slide 25: Strong ICE position is leveraged as e-mobility rises
Strong ICE position is leveraged as e-mobility rises Undercarriages – original equipment ICE components – stronger €2.4 Engine – passenger cars impact until 2030 bn €0.7 Non-ICE PTM and trend Market share bn 20% 22% Improve margin ‒ grow profitably PTM1 and trend Market share Undercarriages – afterm
Slide 26: Transformation started: New chassis business compensates sales compression in engine
Transformation started: New chassis business compensates sales compression in engine Long-term contract with leading OEM proves trust in FT capabilities Automotive components Strategic direction Engine ‒ passenger cars Shrinking part of • Leverage leading position to increase market share portfolio
Slide 27: Undercarriage market offers ample growth opportunities outside automotive
Undercarriage market offers ample growth opportunities outside automotive Industry components Strategic direction Undercarriage ‒ original equipment Growing part of • Maintain and extend strong position with leading OEMs portfolio • Keep focus on competitiveness and optimize value chain depth • Impr
Slide 28: Performance-oriented mind-set: Now and in the future
Performance-oriented mind-set: Now and in the future Proven track record in cost base optimization Personnel productivity Energy efficiency Personnel expenses in % of sales Energy expenses in % of sales -11% -2% -7% -8% ~18 <4 FY 17/18 FY 20/21 Mid-term FY 19/20 FY 20/21 Mid-term Sales per employee
Slide 29: We acknowledge our social and ecological responsibility and commit ourselves to the targets of tk
We acknowledge our social and ecological responsibility and commit ourselves to the targets of tk Climate and energy Health and safety Diversity kWh per ton produced Accident Frequency Rate1 Women in leadership positions -3% -8% +20% 1,532 1,624 2.7 2.5 12.5% 13.2% 1,438 2.3 9.1% FY 18/19 FY 19/20 F
Slide 30: Generating consistent EBIT and cash throughout the years
Generating consistent EBIT and cash throughout the years Outlook €1,213 mn Passenger cars Chassis Sales Trucks1 Undercarriages FY 20/21 Mid-term FY 29/30 Remain among the best industry competitors and establish new EBIT products at the known margin levels Cash Keep a high cash conversion rate, while
Slide 31: Forged Technologies – Committed to realize sustainable shareholder value
Forged Technologies – Committed to realize sustainable shareholder value Conclusion Increase market share in core markets and Sales grow with new products and by entering new business fields Sustain benchmark margin levels in industry and Profit keep margin focus throughout transformation Finance tr
Slide 32: Disclaimer thyssenkrupp AG
Disclaimer thyssenkrupp AG This presentation has been prepared by thyssenkrupp AG (“thyssenkrupp”) and comprises the written materials/slides for a presentation concerning thyssenkrupp. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. The