Thyssenkrupp Ag · XETR:TKA
Thyssenkrupp — UBS Field Trip, June 16/17, 2008
23 slides from Thyssenkrupp's conference presentation, Jun 16, 2008
Slide 1: ThyssenKrupp
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 0 ThyssenKrupp
Slide 2: ThyssenKrupp Stainless: Top Positions in all Fields of Activities
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 1 ThyssenKrupp Stainless Top Positions in all Fields of Activities ThyssenKrupp Stainless Sales € 8.7 bn EBT € 777 m Employees 12,182 Stainless Steel High Performance Alloys Processing Sales: €6.3 bn Sales: €1.6 bn Sales: €0.8 bn Employees:
Slide 3: Sustainable Results in spite of Market Fluctuations
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 2 ThyssenKrupp Stainless Sustainable Results in spite of Market Fluctuations Q1 Q2 (Oct – Dec) (Jan – Mar) *) *) *) 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2007/08 Sales €m 3,957 4,990 5,572 6,437 8,748 1,838 1,955 Total Shipments 1
Slide 4: EBT Development
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 3 EBT Development EBT Development Base Price m EUR EUR/t 350 269 16 141 192 385 286 423 777 1,900 1,800 300 1,700 250 1,600 1,500 200 1,400 1,300 150 1,200 1,200 100 1,100 1,035 1,000 50 1,000 900 0 800 700 * -50 600 LIFO Average Weighting
Slide 5: Leading Positions in Stainless Steel Cold-Rolled Flat Products and Nickel Alloys
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 4 ThyssenKrupp Stainless Leading Positions in Stainless Steel Cold-Rolled Flat Products and Nickel Alloys Stainless Steel Nickel Alloys Titanium Deliveries in 2006 Deliveries in 2006 Deliveries in 2006 million tons 1,000 tons 1,000 tons 1.8
Slide 6: Differentiation in Regards to the Competition
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 5 ThyssenKrupp Stainless Differentiation in Regards to the Competition Unique Selling Propositions Stainless steel patent holder since 1922, almost 90 years of experience Strong Brand “ThyssenKrupp” and in addition globally established
Slide 7: Market Development
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 6 Market Development 6% Growth in global Stainless Cold-Rolled Market forecasted [000t] 22,000 21,030 20,000 +8.5% -0.4% 18,000 16,835 +16.0% 7,269 China 16,000 15,577 15,520 8% 14,000 13,430 5,316 4,500 5,005 1,681 RoW 12,000 3,747 5% 10,3
Slide 8: Asia continuously heading into Overcapacities
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 7 Asia continuously heading into Overcapacities TKL capacity extension in NAFTA and Europe in balance with regional market growth NAFTA EUROPE ASIA „Market in Balance“ „Market in Balance“ „High Overcapacities“ Traditionally slight export su
Slide 9: Global Market Presence
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 8 Global Market Presence Market Volumes and ThyssenKrupp Stainless Market Shares NAFTA EUROPE 36% 31% CHINA 17% 13% Stainless Nickel Alloys 2% 8% Stainless Nickel Alloys 3,491 Tt 66 Tt 1,595 Tt 74 Tt Stainless Nickel Alloys 5,005 Tt 17 Tt R
Slide 10: Increasing non-volatile Customer Bases
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 9 Increasing non-volatile Customer Bases Sales Structure within ThyssenKrupp Stainless Group Stainless Steel Sales by Customer Group Stainless Steel Contract Structure Others 10% Tubes 12% Household Applications 6% Short Term Contracts (<0.
Slide 11: Concentration on the high-value Segment instead of Commodities
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 10 Concentration on the high-value Segment instead of Commodities Æ Systematic Focus on Value Added Products and Services within the Production Chain Shaping (Tubes) Using Advantages in Procurement Optimization of Raw Material Qualities
Slide 12: Stainless Steel Cold Rolled Flat Imports into Europe
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 11 Stainless Steel Cold Rolled Flat Imports into Europe European Union (EU27) [000t/Monat] 100 90 80 77.0 74.2 69.3 70 64.6 61.2 62.1 60 58.3 51.9 49.4 50 41.9 40.6 38.6 38.8 40 34.3 33.6 31.8 27.7 29.8 30 28.0 25.5 21.6 21.5 20 10 0 1.Hj.0
Slide 13: Raw Material Price Development
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 12 Raw Material Price Development Highly fluctuating raw material costs represent a challenge to the Stainless Steel industry [INDEX USD, JAN 2001 = 100] 800 Nickel Aluminium Copper Zinc Iron Ore Carbon Scrap Crude Oil 700 600 500 30,000 US
Slide 14: Challenge: High Raw Material Costs
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 13 Challenge: High Raw Material Costs Nickel has strong influence on prices, alloy surcharge system out of function between Jul and Oct 2007 [EUR/t] [US$/t] Germany, Trade/SSC, 1.4301, 2mm sheet 5,000 55,000 Alloy Surcharge 4,500 50,000 Bas
Slide 15: Ferritic Share in global Production grows only slowly
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 14 Ferritic Share in global Production grows only slowly World Crude Steel Production by Grade Groups 100% CrNi / CrNiMo 90% Cr CrMn *) 80% 70% 70.8 65.5 63.1 65.5 TRENDS 60% Substitution driven by end customers / 50% change-of-mind in th
Slide 16: Stainless Steel Price Increases relatively moderate
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 15 Stainless Steel Price Increases relatively moderate Stainless Steel Cold Rolled does not show highest increases (crude oil as reference) [INDEX USD, Q4 2002 = 100] 600 Stainless 304 Stainless 430 Copper Crude Oil Aluminum Hot-Dip Galvani
Slide 17: Further Development of special Ferritic Grades
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 16 Further Development of special Ferritic Grades Development of proprietary Substitutes / new Stainless Grades Substitution / New Stainless Grades ThyssenKrupp Stainless is already very strong in producing ferritic grades (no nickel cont
Slide 18: A Substitute for 304: the new Austenitic Grade 1.4640
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 17 A Substitute for 304: the new Austenitic Grade 1.4640 Comparable Product Properties at lower Price due to reduced Nickel Content Price 5 4 Appearance 3 Formability 2 1 Standard AISI 304 Food safe Weldability Corrosion Resistance 5 = very
Slide 19: Major Investments at ThyssenKrupp Stainless
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 18 Major Investments at ThyssenKrupp Stainless Overview of current Investment Projects Stainless Steel Extension Cold Rolling Works ThyssenKrupp Acciai Speciali Terni (AST) : “World-Class Terni Project” Restructuring: Closure of Plant T
Slide 20: ThyssenKrupp Stainless USA
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 19 ThyssenKrupp Stainless USA Plant Layout, Production ready for Shipment (in 1,000 t) Steel Melt Shop Cold Rolling Mills Cold Annealing & Pickling Line Hot Band White 125 Cold Rolled Strip 350 Hot Annealing & Pickling Line Slab Finishing S
Slide 21: ThyssenKrupp Stainless USA: Construction Report
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 20 ThyssenKrupp Stainless USA Construction Report Carbon/Stainless Hot Rolling Mill Stainless Carbon Steel Melt Shop Cold Rolling Works Carbon Stainless Hot-Dip Galvanizing Works Cold Rolling Works 220 kV Substation Main Entrance ThyssenKru
Slide 22: ThyssenKrupp Stainless Global Investment Strategy
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 21 ThyssenKrupp Stainless Global Investment Strategy Current Target 2009 Target 2012/13 260 kt 25 kt 300 kt 90 kt +Δ120 kt +Δ300 kt cold rolled cold rolled Nirosta cold rolled cold rolled cold rolled 650 kt to market to market to market Nir
Slide 23: Forward Strategy generates Potential for significant Value Growth
Presentation ThyssenKrupp, UBS Field Trip, June 16/17, 2008 22 Forward Strategy generates Potential for significant Value Growth ThyssenKrupp Stainless stands for … Commitment to increasingly Reliable and significant profit contribution Drive value for the Group Global Market Leadership #1