Thyssenkrupp Ag · XETR:TKA
Thyssenkrupp — 5th Basic Materials Seminar, Exane BNP Paribas, London 2010
22 slides from Thyssenkrupp's conference presentation, Mar 16, 2010
Slide 1: 5th Basic Materials Seminar, Exane BNP Paribas
5THBasicMaterialsSeminar Exane BNPParibas London- March 16,2010 Dr.AlanHippe,CFO
Slide 2: Group Overview
ManagingSupplytoOptimise OperatingLeverage GroupOverview LeveragingGrowth LeveragingStructuralPerformance Perspective 5THBasicMaterialsSeminar;Exane BNPParibas London- March16,2010 Dr.AlanHippe,CFO 1
Slide 3: ThyssenKrupp Group – Higher Transparency
ThyssenKruppGroup– Higher Transparency effective s ThyssenKrupp October1 ince st,2009 Sales:€40.6bn Steel Steel Stainless Materials Elevator Plant Components Marine Europe Americas Global Services Technology Technology Technology Systems Sales€9,570m Sales€0m Sales€4,486m Sales€12,815m Sales€5,308m
Slide 4: Efficiency, Projects, Portfolio: Growth & Structural Performance
Efficiency,Projects,Portfolio:Growth&StructuralPerformance Efficiency Projects Portfolio Targetedsustainable Ramp-upofAmericasprojects • Exitindustrialservices costsavings: • CSA • Exitcivilshipbuilding €1.5- €2bn • SteelUSA • Furtherdivestmentsassoon byFY2010/11 • StainlessUSA asM&Amarketrecovers R
Slide 5: Leveraging Growth
ManagingSupplytoOptimise OperatingLeverage GroupOverview LeveragingGrowth LeveragingStructuralPerformance Perspective 5THBasicMaterialsSeminar;Exane BNPParibas London- March16,2010 Dr.AlanHippe,CFO 4
Slide 6: Major Capex Program Launched in FY2005/06
MajorCapex ProgramLaunchedinFY2005/06 billion€ BASteel 4.2 4.2 Cashflowsforinvestments Americas 3-3.5 3.0 2.0 0.3 0.3 0.2 0.7 Cashflowsfromdisposals 1999/ 2000/ 2001/ 2002/ 2003/ 2004/ 2005/ 2006/ 2007/ 2008/ 2009/ 2010/ 00 01 02 03 04 05 06 07 08 09 10E 11E 5THBasicMaterialsSeminar;Exane BNPParibas
Slide 7: Steel Americas
SteelAmericas ThyssenKruppCSA ThyssenKruppSteelUSA Sepetiba Bay, SantaCruz,RiodeJaneiro,Brazil Siteonthe 7stands ThyssenKruppSteelUSA 7 1stslab:mid CY2010 Tombigbee,AL ThyssenKrupp 1stcoil:Q2CY‘10 SteelUSA 1“ 66 Thickness 66 66 55 66 66 74“ Width Cokingplant: 1.9mt/yrofcoke Hotstripmill: >5mt/yr Sin
Slide 8: Transatlantic Strategy Based on Optimum Cost-Quality Position
TransatlanticStrategyBasedonOptimumCost-QualityPosition IndustrialCostCurve2012 Hot-RollingCapacities,NAFTA USD/t;mt/yr ThyssenKruppBusinessArea SteelAmericaswith strongcost and USD/t Premiumquality & Ø prices quality position technologyleadership TKBASteel Americas Ø prices NAFTA Evenbased onconser
Slide 9: Leveraging Structural Performance
ManagingSupplytoOptimise OperatingLeverage GroupOverview LeveragingGrowth LeveragingStructuralPerformance Perspective 5THBasicMaterialsSeminar;Exane BNPParibas London- March16,2010 Dr.AlanHippe,CFO 8
Slide 10: Efficiency Improvement – Targeted Sustainable Cost Savings
EfficiencyImprovement– TargetedSustainableCostSavings Realizedmanagementgains Sustainabletargeted billion€ costsavingsbillion€ ~1.8 1.5– 2.0 Based onexisting ~1.0 restructuring measures/ initiatives Excluding effects from portfolio ~0.8 sustainable optimization FY2008/09 FY2010/11E 5THBasicMaterials
Slide 11: Efficiency Improvement – Restructuring and Impairments
EfficiencyImprovement– RestructuringandImpairments Impairments Restructuringcharges million € 43% 1,260 31% .6% 1% 480 22% 2% 29% 21% 3% 5% 9% 780 6% 27% Steel Stainless Materials Elevator Plant Components Marine TK Europe Global Services Technology Technology Technology Systems 5THBasicMaterialsSem
Slide 12: Steel Europe: Large-Scale, Multiple-Niche Approach
SteelEurope:Large-Scale,Multiple-NicheApproach ComplementedbyComprehensivePerformanceProgram PremiumProductMixSteelEuropeFY2008/09 Restructuring&Impairments in%ofsales inmillion€ HotStrip TailoredBlanks 66 218 Medium-wideStrip 12 6 4 ConstructionElements 5 Tinplate HeavyPlate 8 15 140 ColdStrip 6 11
Slide 13: Stainless Global: Flexibilization of Cost Base
StainlessGlobal:Flexibilization ofCostBase Restr.&Impairments inmillion€ 151 Europeancold-rolling production ofStainless Global I1,000t/quarterJ Q1 Q2 Q3 Q4 FY 2008/09 Flexibilization oflabor utilization employment* Technical CFTENN capacity 400 100%capacity utilization 100% -20% Flexibilization 80%
Slide 14: Materials Services: Elimination of Structural Overcapacities
MaterialsServices:EliminationofStructural Overcapacities &Impairments Restructuring inPlasticsandNFMetals €m 72 FY 2008/09 Example Plastics: -24 Locations Start Target ∆ ToDo Plastics 50 26 -24 NFmetals 45 36 -9 -5 ThyssenKruppSchultePPlasticsN KunststoffServicePartner AsofDecember 31,2009 5THBasicM
Slide 15: Components Technology: Elimination of Structural Overcapacities
ComponentsTechnology:EliminationofStructuralOvercapacities NorthAmerica Europe Restr.&Impairments inmillion€ Closure: Closure: 259 312 • crankshaft plant • crankshafts production site • two production plants for POct 2009N steering components • two additionalcrankshaft PQ22009/10N production lines I
Slide 16: Marine Systems: Elimination of Structural Overcapacities
MarineSystems:EliminationofStructuralOvercapacities ExitFromCivilShipbuilding;FocusonNavalEngineering&Submarines Howaldtswerke DeutscheWerft Blohm+VossNordseewerke Blohm+Voss Restructuring PHDWN PBVNN Shipyards &ServicesPBVSSN &Impairments Kiel Hamburg Emden Hamburg inmillion€ 337 434 Mega Yachts Su
Slide 17: Portfolio Optimization Overview
PortfolioOptimizationOverview ValuecrystallizationComplexityandriskreductionCashgeneration Measure Salesvolume Strategicrationale ed clos SaleofCSAstaketoVale TighteningofrelationshipwithVale e d clos SaleofTKIndustrieservice €330m Bestowner ed Focusoncoreactivitiesin SaleofTKSafway clos $715m Mater
Slide 18: Perspective
ManagingSupplytoOptimise OperatingLeverage GroupOverview LeveragingGrowth LeveragingStructuralPerformance Perspective 5THBasicMaterialsSeminar;Exane BNPParibas London- March16,2010 Dr.AlanHippe,CFO 17
Slide 19: ThyssenKrupp Group – Development of EBIT and EBIT Adjusted
ThyssenKruppGroup– Development ofEBITandEBITAdjusted EBIT million€ EBITadjusted million€ 2008/09 2009/10 2008/09 2009/10 407 477 416 401 C276E C130E C310E C351E Q1 Q1 C597E Q1 Q1 Q2 C1,197E Q2 Q3 Q4 Q3 Q4 Steel Steel Stainless Materials Elevator Plant Components Marine Europe* Americas* Global* Serv
Slide 20: Outlook FY2009/10 – Return to Profitability
OutlookFY2009/10– ReturntoProfitability Sales Moderatestabilization Significantimprovementinearnings,despitenegativeimpactofAmericasprojects: Lowthree-digitmillion€ positive, Adjusted EBT incl.projectcosts,startuplosses,depreciationandinterestexpensesof AmericasprojectsCmid-rangethree-digitmillion€E
Slide 21: The Way Forward to Sustainable Value Creation
The WayForwardtoSustainable Value Creation FY2008/09 FY2009/10 FY2010/11etseq. Profitability Value Creation Liquidity EBT>0 TKVAandFCF>0 Operatingcashflow:€3.7bn Strongcostcontrol Strongcostcontrol Capex reduction: Reductionof StartupofSteel&Stainless <€4.3bn spent structuralovercapacities Americasw
Slide 22: Disclaimer ThyssenKrupp AG
DisclaimerThyssenKruppAG “Theinformationsetforthandincludedinthispresentationisnotprovidedinconnectionwithanofferorsolicitationforthepurchase orsaleofasecurityandisintendedforinformationalpurposes only. Thispresentationcontainsforward-lookingstatementsthataresubjecttorisksanduncertainties. Statement
ThyssenKrupp — 5th Basic Materials Seminar, Exane BNP Paribas, London 2010 on 6ix