Thyssenkrupp Ag · XETR:TKA
Thyssenkrupp — Investor Presentation (August 2006)
35 slides from Thyssenkrupp's investor presentation, August 2006
Slide 1: Presentation ThyssenKrupp, August 2006
Presentation ThyssenKrupp, August 2006 0 Tk
Slide 2: ThyssenKrupp Group 2004/2005
Presentation ThyssenKrupp, August 2006 1 ThyssenKrupp Group 2004/2005 ThyssenKrupp AG Group sales €42.9 billion • EBT €1,677 million • TKVA* €955 • Employees 185,932 Steel Stainless Automotive Technologies Elevator Services Sales €9.6 bn Sales €5.6 bn Sales €7.9 bn Sales €5.8 bn Sales €3.8 bn Sales
Slide 3: Steel – At a Glance (I)
Presentation ThyssenKrupp, August 2006 2 Steel – At a Glance (I) Steel { European #2 in flat-rolled carbon steel*, leading position in electrical steel and tailored blanks { Structure of Duisburg site unique in Europe: capacity of 17.3 million metric tons of crude steel p.a. { Concentration on flat
Slide 4: Planned Slab Plant in Brazil Creates Competitive Advantages
Presentation ThyssenKrupp, August 2006 3 Planned Slab Plant in Brazil Creates Competitive Advantages • Sepetiba, Brazil Competitive advantages • Link to iron ore logistics from Minas Gerais Location (CVRD South System ore mines) • Secured high-quality iron ore supply • Rail connection and own dock •
Slide 5: Downstream Strategy for North America Based on Three Scenarios
Presentation ThyssenKrupp, August 2006 4 Downstream Strategy for North America Based on Three Scenarios Metal- Hot Cold Coat- Processing, lurgy rolling rolling ing distribution Targeted market segments Status Export strategy from Existing quo production in Germany facilities • Auto (top priority) •
Slide 6: Steel – At a Glance (II) Stainless
Presentation ThyssenKrupp, August 2006 5 Steel – At a Glance (II) Stainless { One of the world’s biggest producers of flat-rolled stain- less steels and leading position in nickel-base alloys { Global market presence through local production sites, steel service centers and distribution warehouses {
Slide 7: Capital Goods – At a Glance (I)
Presentation ThyssenKrupp, August 2006 6 Capital Goods – At a Glance (I) Automotive { Aiming for position amongst relevant global Top 3 players { Providing creative solutions based on competitive and innovative component capabilities { High competence in product and process technologies { Cross-segm
Slide 8: Capital Goods – At a Glance (II)
Presentation ThyssenKrupp, August 2006 7 Capital Goods – At a Glance (II) Technologies { Focus on 3 highly profitable business units: Plant Technology, Marine Systems, Mechanical Engineering { Strong regional and global top 3 market positions, based on innovativeness and leading-edge technology: • L
Slide 9: Capital Goods – At a Glance (III)
Presentation ThyssenKrupp, August 2006 8 Capital Goods – At a Glance (III) Elevator { Number 3 on world market for elevators and escalators; US number 1 for stair and platform lifts { About 800,000 service contracts worldwide; services share of segment sales more than 50% { Besides customer-oriented
Slide 10: Services – At a Glance
Presentation ThyssenKrupp, August 2006 9 Services – At a Glance Services { Service provider across the customer’s value chain: procurement, logistics and production-related services as well as complete supply chain management { Excellent market positions both in Materials Services and in Industrial
Slide 11: 23 Portfolio Optimizations in 2005/2006
Presentation ThyssenKrupp, August 2006 10 23 Portfolio Optimizations in 2005/2006 Steel Elevator Special Profile operations (DE)* Disposal Sun Rhine Enterprises (TW) Acquisition General Elevator Maintenance (CA) Acquisition Atlantic Elevator (US) Acquisition Automotive KR Liften (NL) Acquisition TK
Slide 12: ThyssenKrupp – Growth Strategy
Presentation ThyssenKrupp, August 2006 11 ThyssenKrupp – Growth Strategy EBT ROCE Sustainable Maintaining €2.0 bn p.a. 14% dividend payment financial discipline Target Profitable growth with sales of up to €50 billion Human resources management Knowledge management Innovation Customer Service New
Slide 13: EBT – Track Record and Mid-term Target
Presentation ThyssenKrupp, August 2006 12 EBT – Track Record and Mid-term Target EBT million € 9 months €2.0 billion 1,935 1,677 EBT target range: €1.5 billion 1,477 122 830 * 577 775 800 448 680 * 421 530 425 2000/01*/** 2001/02*/** 2002/03** 2003/04** 2004/05 2005/06 * excluding major nonrecurring
Slide 14: Efficiency Enhancement – Track Record
Presentation ThyssenKrupp, August 2006 13 Efficiency Enhancement – Track Record Sales and EBT billion € / million € CAGR: 3.3% p.a. 42.9 37.7 37.3 35.8 9 months 33.5 1,935 1,677 CAGR: 1,477 21.3% p.a. 775 800 421 2000/01*/** 2001/02*/** 2002/03** 2003/04** 2004/05 2005/06* * excluding nonrecurring i
Slide 15: Cash Flow – Track Record
Presentation ThyssenKrupp, August 2006 14 Cash Flow – Track Record Net cash provided by operating and investing activities, free cash flow million € 3,272 2,559 921 2,454 2,245 9 months (546) 2,027 (979) 1,946 (1,299) (1,169) (1,144) 1,908 2,351 1,580 946 858 802 2000/01* 2001/02* 2002/03* 2003/04*
Slide 16: Value Indicators – Track Record and Mid-term Target
Presentation ThyssenKrupp, August 2006 15 Value Indicators – Track Record and Mid-term Target ROCE and ThyssenKrupp Value Added % / million € New: 14% 14.2% Target ROCE (old): 12% 12.0% 955 WACC: 9% 8.8% Δ 383 825 7.2% 572 7.0% Δ 924 (46) Δ -368 (414) Δ 62 (352) 2000/01* 2001/02* 2002/03* 2003/04* 2
Slide 17: Value Indicators by Segment – Mid-term Targets
Presentation ThyssenKrupp, August 2006 16 Value Indicators by Segment – Mid-term Targets Capital WACC ROCE TKVA EBT Employed in % in % in million € in million € in million € Ø 2004/05 2004/05 Target 2004/05 Target 2004/05 Target Group 18,391 9.0 14.2 14.0 955 825 1,677 2,000 ** thereof Steel 5,965 9
Slide 18: Overview of Segment Strategies
Presentation ThyssenKrupp, August 2006 17 Overview of Segment Strategies • Clear strategy to enter NAFTA market with focus on high value-added products Steel • Secure growth opportunities by utilizing low-cost slabs from Brazil • Expand strong European market position • Further concentration on high
Slide 19: Objective: Profitable Growth Across all Businesses
Presentation ThyssenKrupp, August 2006 18 Objective: Profitable Growth Across all Businesses ThyssenKrupp AG Sales: up to €50 billion EBT: €2 billion Product-oriented businesses Service-oriented businesses Sales: ~ €30 billion Sales: ~ €20 billion Steel Capital Goods Services Steel Automotive Materi
Slide 20: Service Initiative Gains Momentum
Presentation ThyssenKrupp, August 2006 19 Service Initiative Gains Momentum Service Sales/Share 26.0 % Strategic Planning 21.0 % 2003/04 Service Initiative 2 19.7 % (2004/05) Basis Screening Sales Initiative Workshops 17.7 % Best Practice Service Initiative 1 Execution Start (2000/01) 1999/2000 Time
Slide 21: Innovations Pave the Way to Success
Presentation ThyssenKrupp, August 2006 20 Innovations Pave the Way to Success Technologies Stainless Air-independent propulsion system for Silver Ice® UV – the anti- submarines fingerprint formula { Air-independent propulsion through specific adaptation { Newly designed UV-cured coating for of the f
Slide 22: Q3 2005/2006 – Overview
Presentation ThyssenKrupp, August 2006 21 Q3 2005/2006 – Overview Continued growth course { Order intake increased to €12.4 billion, up 18% from a year earlier { Sales rose by 8% to €12.1 billion { EBT jumped to €806 million from €577 million in the prior-year quarter { EPS reached €0.87, compared w
Slide 23: Highlights
Presentation ThyssenKrupp, August 2006 22 Highlights { Once again a record quarter: • EBT of €830 million excluding restructuring charge for Automotive • Main profit contribution by Steel segment, improving year-on-year • Earnings situation significantly enhanced at Stainless • Technologies once aga
Slide 24: ThyssenKrupp Stock and Share Buyback (I)
Presentation ThyssenKrupp, August 2006 23 ThyssenKrupp Stock and Share Buyback (I) Key facts (as of August 11, 2006) Volume Share Buyback (million shares) 30 Volume Share of (million shares) capital stock 25 Total buyback 25.724 5.0000% Realized to date 21.280 4.1361% 20 Ö About 83% of the planned b
Slide 25: ThyssenKrupp Stock and Share Buyback (II)
Presentation ThyssenKrupp, August 2006 24 ThyssenKrupp Stock and Share Buyback (II) Trading volume and volume of shares repurchased (as of August 11, 2006) Volume Share price (million shares) (€) 30 30 25 29 20 28 15 27 10 26 5 16% 16% 15% 15% 15% 13% 0 25 Jul 3 – Jul 7 Jul 10 – Jul 14 Jul 17 – Jul
Slide 26: Outlook
Presentation ThyssenKrupp, August 2006 25 Outlook { We expect the generally positive business performance to continue in the further course of the year. For fiscal year 2005/2006 we currently plan sales of €46 billion. { Based on the very good performance in the first nine months of fiscal 2005/2006
Slide 27: Group in Figures (I)
Presentation ThyssenKrupp, August 2006 26 Group in Figures (I) Order intake million € Sales million € 43,509 42,927 Q4 10,899 36,770 Q4 10,976 34,866 12,439 18% 12,138 Q3 10,574 8% Q3 11,253 12,776 Q2 11,180 11,786 Q2 10,610 Q1 10,856 11,555 Q1 10,088 10,942 2004/05 2005/06 2004/05 2005/06 Tk
Slide 28: Group in Figures (II)
Presentation ThyssenKrupp, August 2006 27 Group in Figures (II) EBIT million € EBT million € 2,344 2,004 2,209 Q4 224 1,677 911 Q4 122 806* 24% 40% Q3 732 Q3 577 582 882 Q2 448 773* Q2 Q1 671 Q1 530 425 551 2004/05 2005/06 2004/05 2005/06 * incl. major nonrecurring items Net income million € Earning
Slide 29: Group in Figures (III)
Presentation ThyssenKrupp, August 2006 28 Group in Figures (III) EBITDA million € Depreciation and amortization million € 3,768 1,559 3,466 Q4 792 Q4 568 1,122 27% 1,290 Q3 1,013 Q3 281 35% 379 Q2 963 1,278 Q2 381 396 Q1 1,000 898 Q1 329 347 2004/05 2005/06 2004/05 2005/06 Free cash flow* million €
Slide 30: Group in Figures (IV)
Presentation ThyssenKrupp, August 2006 29 Group in Figures (IV) Financial liabilities million € Stockholders’ equity million € 5,200 5,000 8,905 4,124 8,746 7,878 3,376 4,823 4,620 Liquid assets* 26.1% 25.1% Equity ratio 22.3% 1,824 177 Net -496 financial Jun 05 Sep 05 Jun 06 position Jun 05 Sep 05
Slide 31: Investment Conclusion
Presentation ThyssenKrupp, August 2006 30 Investment Conclusion { Strong commitment to sustainable profit generation and value enhancement throughout business cycles { Value creation for shareholders not only by profitable growth initiatives, but also by stable and sustainable dividend payment { Con
Slide 32: Financial Calendar 2006/2007
Presentation ThyssenKrupp, August 2006 31 Financial Calendar 2006/2007 { October 25, 2006 Quiet Period to November 30, 2006 { December 1, 2006 Annual Press Conference Analysts’ and Investors’ Meeting (Essen, Germany) { January 19, 2007 Annual General Meeting (Bochum, Germany) { January 24, 2007 Quie
Slide 33: Financial Calendar 2007
Presentation ThyssenKrupp, August 2006 32 Financial Calendar 2007 { April 24, 2007 Quiet Period to May 10, 2007 { May 11, 2007 Interim Report 2nd quarter 2006/2007 (Jan to Mar) { May 15, 2007 Analysts’ and Investors’ Meeting (London, UK) { July 24, 2007 Quiet Period to August 9, 2007 { August 10, 20
Slide 34: How to Contact ThyssenKrupp Investor Relations
Presentation ThyssenKrupp, August 2006 33 How to Contact ThyssenKrupp Investor Relations Institutional Investors and Analysts: { Phone: +49 211 824-36464 To be added to the IR mailing list, send us a { Fax: +49 211 824-36467 brief e-mail with your details! { E-mail: [email protected] { Internet: w
Slide 35: Disclaimer
Presentation ThyssenKrupp, August 2006 34 Disclaimer In this presentation all figures are prepared in accordance with IFRS. Moreover the figures in the income statement refer to continuing operations unless otherwise stated. Due to the conversion process figures included here should be seen as provi