Thyssenkrupp Ag · XETR:TKA
Thyssenkrupp — Investor Presentation (August 2007)
52 slides from Thyssenkrupp's investor presentation, August 2007
Slide 1: ThyssenKrupp
Presentation ThyssenKrupp, August 2007 0 ThyssenKrupp
Slide 2: Agenda
Presentation ThyssenKrupp, August 2007 1 Agenda { Group Overview { Segment Overview { Outlook and Group Financials { Special Topics: World-class Terni and Disposal Real Estate { Wrap-up and Financial Calendar { Appendix ThyssenKrupp
Slide 3: Group Overview – Q3 2006/07 Highlights (yoy)
Presentation ThyssenKrupp, August 2007 2 Group Overview – Q3 2006/07 Highlights (yoy) The strongest quarter so far { Order intake €15,552 m +25% yoy { Sales €13,444 m +11% yoy { EBT excl. major nonrecurring items €1,182 m* + Disposal gain commercial real estate € 115 m - Impairment Metal Forming € 7
Slide 4: EBT Track Record
Presentation ThyssenKrupp, August 2007 3 EBT Track Record EBT (as reported) million € 3,200 CAGR: 9M: 2,853 58.0% p.a. 2,623 619 1,219 1,677 1,477 806 572 800 773 421 1,062 425 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 incl. major nonrecurring items ThyssenKrupp
Slide 5: ThyssenKrupp Continues the Delta EVA Story
Presentation ThyssenKrupp, August 2007 4 ThyssenKrupp Continues the Delta EVA® Story ROCE and TKVA (incl. major nonrecurring items) % / million € ROCE TKVA Δ TKVA 23.4% 1,510 9M: 997 1,930 17.9% Δ14% 513 572 Δ 425 14.4% 12.0% Δ 924 WACC: 9% 7.2% 7.0% incl. major Δ 62 nonrecurring items (414) (352) 2
Slide 6: Agenda
Presentation ThyssenKrupp, August 2007 5 Agenda { Group Overview { Segment Overview { Outlook and Group Financials { Special Topics: World-class Terni and Disposal Real Estate { Wrap-up and Financial Calendar { Appendix ThyssenKrupp
Slide 7: Segment Overview – Q3 2006/07 Highlights (yoy)
Presentation ThyssenKrupp, August 2007 6 Segment Overview – Q3 2006/07 Highlights (yoy) EBT Comments Price and performance improvements coupled with steady high demand Steel €428 m Metal Forming impairment charge: €76 m – excl. nonrecurring items: €504 m Major EBT contribution: Stainless €296 m High
Slide 8: Segment Overview – Quarterly EBT 2005/06 and 2006/07
Presentation ThyssenKrupp, August 2007 7 Segment Overview – Quarterly EBT 2005/06 and 2006/07 2005/2006 2006/2007 million € Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Steel 269 424 386 327 1,406 399 471 428 Stainless 7 52 126 238 423 325 291 296 Technologies 121 133 151 5 410 148 108 155 Elevator 85 94 98 114 391 97 (
Slide 9: Segment Overview – Quarterly EBT 2006/07 and Outlook
Presentation ThyssenKrupp, August 2007 8 Segment Overview – Quarterly EBT 2006/07 and Outlook 2006/07 2006/2007 million € Q1 Q2 Q3 Q4 FY Steel 399 471 428 Stainless 325 291 296 Technologies 148 108 155 Elevator 97 (390) 106 Services 192 140 218 Corporate (93) (43) 21 Consolidation (6) (5) (5) EBT as
Slide 10: Agenda
Presentation ThyssenKrupp, August 2007 9 Agenda { Group Overview { Segment Overview { Outlook and Group Financials { Special Topics: World-class Terni and Disposal Real Estate { Wrap-up and Financial Calendar { Appendix ThyssenKrupp
Slide 11: Group Outlook 2006/07: EBT incl. Major Nonrecurring Items €3.2 bn
Presentation ThyssenKrupp, August 2007 10 Group Outlook 2006/07: EBT incl. Major Nonrecurring Items €3.2 bn EBT outlook in €bn Major nonrecurring items €(443) m* of which: Q2 €(480) m 3.6 3.2 { Elevator fine €(480) m Q3 € 37 m* { Disposal gain real estate € 115 m { Impairment Metal Forming € (76) m
Slide 12: Segment Outlook 2006/07 and Beyond
Presentation ThyssenKrupp, August 2007 11 Segment Outlook 2006/07 and Beyond • Global growth remains very robust Steel • Production by steel users continues to grow strongly • Due to seasonal reasons EU steel market slightly more settled • Underlying demand from industrial end customer demand stable
Slide 13: Group Financials – Order Intake and Sales
Presentation ThyssenKrupp, August 2007 12 Group Financials – Order Intake and Sales Order intake million € Sales million € 50,782 47,125 14,012 42,815 Q4 Q4 12,259 38,890 15,552 25% 13,444 Q3 12,439 11% Q3 12,138 13,962 Q2 12,776 13,114 Q2 11,786 Q1 11,555 13,301 Q1 10,942 12,332 2005/06 2006/07 200
Slide 14: Group Financials – EPS Track Record
Presentation ThyssenKrupp, August 2007 13 Group Financials – EPS Track Record Earnings per share (as reported) € CAGR: 66.7% p.a. 3.24 9M: 3.25 1.04 1.49 2.08 1.81 0.87 0.45 1.09 0.84 0.42 1.31 0.49 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 incl. major nonrecurring items ThyssenKrupp
Slide 15: Group Financials – Net Income to Operating Cash Flow
Presentation ThyssenKrupp, August 2007 14 Group Financials – Net Income Ö Operating Cash Flow Development of operating cash flow in 9M Elevator million € D/A Others 1,132 180 Steel Stainless (293) Change in (343) accrued pensions Technologies 1,664 Elevator Services (996) (90) (23) Corporate (624) 4
Slide 16: Group Financials – Operating Cash Flow to Free Cash Flow
Presentation ThyssenKrupp, August 2007 15 Group Financials – Operating Cash Flow Ö Free Cash Flow Development of free cash flow in 9M Elevator million € Cash acquired/ 595 divested Capex (14) Divest- ments (1,040) 482 Operating (2,103) Free cash flow cash flow ThyssenKrupp
Slide 17: Group Financials – Net Financial Liabilities
Presentation ThyssenKrupp, August 2007 16 Group Financials – Net Financial Liabilities Development of net financial position in 9M million € (14) 595 Cash acquired/ divested 482 Divest- Gearing ments Operating (8.4)% cash flow 806 (747) Dividend Gearing (2,103) 8.2% Capex 4 (517) Others Net financia
Slide 18: Agenda
Presentation ThyssenKrupp, August 2007 17 Agenda { Group Overview { Segment Overview { Outlook and Group Financials { Special Topics: World-class Terni and Disposal Real Estate { Wrap-up and Financial Calendar { Appendix ThyssenKrupp
Slide 19: ThyssenKrupp Stainless: Differentiation from Competition
Presentation ThyssenKrupp, August 2007 18 ThyssenKrupp Stainless: Differentiation from Competition Sales by Industry in %, FY 2005/06 Key Drivers of ThyssenKrupp Stainless Household Others Appliances Metal 5 8 • Higher predictability of business Processing 5 through a comparatively higher 9 Service
Slide 20: Stainless Forward Strategy to Boost Competitiveness and Profitability
Presentation ThyssenKrupp, August 2007 19 Stainless Forward Strategy to Boost Competitiveness and Profitability Developing Terni into a world-class integrated stainless steel mill { Additional profitability potential by world-class Terni project targeted { Total capex to be spend: €300 m*; return hu
Slide 21: Disposal of Real Estate Portfolio – Key Facts
Presentation ThyssenKrupp, August 2007 20 Disposal of Real Estate Portfolio – Key Facts { Disposal gain: €115 m (Q3 2006/07) { Buyer: Consortium of RREEF Global Opportunities Fund II / Harder & Partner, Hockenheim / Habacker Holding, Düsseldorf { Portfolio: 25 real estate assets, comprising office b
Slide 22: Agenda
Presentation ThyssenKrupp, August 2007 21 Agenda { Group Overview { Segment Overview { Outlook and Group Financials { Special Topics: World-class Terni and Disposal Real Estate { Wrap-up and Financial Calendar { Appendix ThyssenKrupp
Slide 23: Group Targets 2009/10 and 2011/12
Presentation ThyssenKrupp, August 2007 22 Group Targets 2009/10 and 2011/12 Sales, EBT and EPS (as reported) billion € / million € / € Sales: >50 60 65 Target 4,500-5,000 4,000 3,200* EPS 6.00-6.60 2,623 9M: EPS 2,853 5.30 1,677 1,477 tax rate: 800 33% 421 2001/02 2002/03 2003/04 2004/05 2005/06 200
Slide 24: Wrap-Up: ThyssenKrupp Continues the Delta EVA Story
Presentation ThyssenKrupp, August 2007 23 Wrap-Up: ThyssenKrupp Continues the Delta EVA® Story ROCE and TKVA (incl. major nonrecurring items) % / million € ROCE TKVA Target 3,000 2,500 9M: 1,930 1,510 23.4% 21.4% 22% 997 17.9% 572 14.4% 12.0% WACC: 9% 7.0% 7.2% incl. major nonrecurring items (414) (
Slide 25: Financial Calendar 2007 and 2008
Presentation ThyssenKrupp, August 2007 24 Financial Calendar 2007 and 2008 { October 24, 2007 Quiet Period to December 3, 2007 { December 4, 2007 Annual Press Conference, Essen/Germany Analysts’ and Investors’ Conference, Essen/Germany { January 18, 2008 Annual General Meeting, Bochum/Germany { Janu
Slide 26: Financial Calendar 2008
Presentation ThyssenKrupp, August 2007 25 Financial Calendar 2008 { April 23, 2008 Quiet Period to May 13, 2008 { May 14, 2008 Interim Report 2nd quarter 2007/08 (Jan to Mar) May 16, 2008 Analysts’ and Investors’ Conference, London/UK { July 24, 2008 Quiet Period to August 13, 2008 { August 14, 2008
Slide 27: How to Contact ThyssenKrupp Investor Relations
Presentation ThyssenKrupp, August 2007 26 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 28: Agenda
Presentation ThyssenKrupp, August 2007 27 Agenda { Group Overview { Segment Overview { Outlook and Group Financials { Special Topics: World-class Terni and Disposal Real Estate { Wrap-up and Financial Calendar { Appendix ThyssenKrupp
Slide 29: Group in Figures: Quarterly EBT Development and Analysis
Presentation ThyssenKrupp, August 2007 28 Group in Figures: Quarterly EBT Development and Analysis >100% as 425 773 806 619 1,062 572 1,219 reported 37 24 30 230 480 93 1,052 excl. major 830 849 nonrecurring 425 680 1,032 1,182 items Q1 Q2 Q3 Q4 Q1 Q2 Q3 05/06 05/06 05/06 05/06 06/07 06/07 06/07 51%
Slide 30: Steel: Segment Overview (I)
Presentation ThyssenKrupp, August 2007 29 Steel: Segment Overview (I) Steel 3rd quarter { Positive economic environment further benefiting global steel markets; above- 2005/06 2006/07 Change Change % trend production growth at European Order intake €m 3,144 3,262 118 3.8 steel users continued Sales
Slide 31: Steel: Segment Overview (II)
Presentation ThyssenKrupp, August 2007 30 Steel: Segment Overview (II) EBT development and analysis -9% 424 386 399 471 428 269 327 Q1 Q2 Q3 Q4 Q1 Q2 Q3 05/06 05/06 05/06 05/06 06/07 06/07 06/07 11% YoY QoQ { Negative impact due to impairment for Metal { Negative impact due to impairment for Metal F
Slide 32: Steel: Output, Shipments and Revenues per Metric Ton
Presentation ThyssenKrupp, August 2007 31 Steel: Output, Shipments and Revenues per Metric Ton Crude steel output 1,000 t/months Total shipments 1,000 t/months 1,176 1,184 1,246 1,168 1,161 1,166 1,215 1,194 1,152 1,153 1,130 1,156 1,146 1,076 2004/05 2005/06 H1 H2 Q1 Q2 Q3 2004/05 2005/06 H1 H2 Q1
Slide 33: Stainless: Segment Overview (I)
Presentation ThyssenKrupp, August 2007 32 Stainless: Segment Overview (I) Stainless 3rd quarter { Underlying end consumer demand strong 2005/06 2006/07 Change Change % Order intake €m 1,921 1,943 22 1.1 { Continuing high imports as well as still high Sales €m 1,650 2,608 958 58.1 distributor invento
Slide 34: Stainless: Segment Overview (II)
Presentation ThyssenKrupp, August 2007 33 Stainless: Segment Overview (II) EBT development and analysis 2% 325 291 296 238 52 126 7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 05/06 05/06 05/06 05/06 06/07 06/07 06/07 >100% YoY QoQ { Higher base price levels coupled with strong { Efficiency enhancement: underlying driver
Slide 35: Stainless: Output, Shipments and Revenues per Metric Ton
Presentation ThyssenKrupp, August 2007 34 Stainless: Output, Shipments and Revenues per Metric Ton Crude steel output* 1,000 t/months Total shipments* 1,000 t/months * including carbon, forging, Ni-Alloys * including carbon, forging, Ni-Alloys and consolidated 257 206 208 204 206 231 240 233 187 183
Slide 36: Technologies: Segment Overview (I)
Presentation ThyssenKrupp, August 2007 35 Technologies: Segment Overview (I) Technologies 3rd quarter { Global economic growth positively 2005/06 2006/07 Change Change % impacting demand for infrastructure, energy and raw materials Order intake €m 2,688 5,700 3,012 + Sales €m 2,835 2,815 -20 -0.7 {
Slide 37: Technologies: Segment Overview (II)
Presentation ThyssenKrupp, August 2007 36 Technologies: Segment Overview (II) EBT development and analysis 44% 133 151 148 155 121 108 Q1 Q2 Q3 5 Q1 Q2 Q3 Q4 05/06 05/06 05/06 06/07 06/07 06/07 05/06 3% YoY QoQ { Increase in profits mainly at BU Plant Technology { Back on favorable earnings track: (
Slide 38: Update on Automotive Restructuring – Status Quo
Presentation ThyssenKrupp, August 2007 37 Update on Automotive* Restructuring – Status Quo Sales million € Restructuring { All options incl. divestments being 8,466 5,225 screened; divestment candidates identified in Automotive Solutions FY 9M and M&A process kicked off 2005/06 2006/07 EBT million €
Slide 39: Organizational Overview Technologies
Presentation ThyssenKrupp, August 2007 38 Organizational Overview Technologies ThyssenKrupp Technologies AG Sales old: €6.0 bn • Sales new: ~€11 bn Olaf Berlien, Chairman Plant Technology Marine Systems Mechanical Automotive Sales: €2.3 bn Sales: €1.9 bn Components Solutions Sales old: €1.8 bn Sales
Slide 40: Elevator: Segment Overview (I)
Presentation ThyssenKrupp, August 2007 39 Elevator: Segment Overview (I) Elevator 3rd quarter { Growth in global construction industry 2005/06 2006/07 Change Change % continuously driven by Asia and CEE; German construction sector clearly Order intake €m 1,173 1,309 136 11.6 recovering, mainly for c
Slide 41: Elevator: Segment Overview (II)
Presentation ThyssenKrupp, August 2007 40 Elevator: Segment Overview (II) EBT development and analysis + Q2 85 94 98 114 97 06/07 106 Q1 Q2 Q3 Q4 Q1 Q3 05/06 05/06 05/06 05/06 06/07 06/07 (390) 8% * YoY QoQ { Expansion of business especially on Iberian { After a quarter with major nonrecurring negat
Slide 42: Services: Segment Overview (I)
Presentation ThyssenKrupp, August 2007 41 Services: Segment Overview (I) Services 3rd quarter 2005/06 2006/07 Change Change % { Favorable situation on raw and industrial Order intake €m 3,841 4,122 281 7.3 materials markets reflected top and bottom line; moreover, expansion of distribution Sales €m
Slide 43: Services: Segment Overview (II)
Presentation ThyssenKrupp, August 2007 42 Services: Segment Overview (II) EBT development and analysis 56% 192 218 168 138 140 85 91 Q1 Q2 Q3 Q4 Q1 Q2 Q3 05/06 05/06 05/06 05/06 06/07 06/07 06/07 30% YoY QoQ { Continuing high price and demand levels { Continuing high price and demand levels { BU Mat
Slide 44: Key Drivers for Investment Strategy
Presentation ThyssenKrupp, August 2007 43 Key Drivers for Investment Strategy International expansion of our focused business company concept Transfer of the successful European premium strategy Steel to the Americas growth market Build on and expand global leading market position Stainless by perfo
Slide 45: ThyssenKrupp Accelerates Growth by Investment Program
Presentation ThyssenKrupp, August 2007 44 ThyssenKrupp Accelerates Growth by Investment Program Investments Comments 2005/06-2009/10 Greenfield NAFTA, Greenfield Brazil, capacity increase Duisburg, Steel €8.9 bn substance-preserving and value-based investments, acquisitions Stainless €2.0 bn Greenfi
Slide 46: Investment Strategy Steel: The Transatlantic Concept
Presentation ThyssenKrupp, August 2007 45 Investment Strategy Steel: The Transatlantic Concept Targeted major transatlantic production capacities Capacity in m metric tons p.a. Brazil NAFTA Europe ** “Herkules” Slabs 5 - 15 Greenfield Hot-rolled - 5.2* 17.5 ~3 m t ~2 m t Cold-rolled - 2.5 10 TK CSA
Slide 47: Premium Flat Carbon Steel Market with Above-Average Growth
Presentation ThyssenKrupp, August 2007 46 Premium Flat Carbon Steel Market with Above-Average Growth Global Market Development: Market Forecasts up to 2015 Global Demand for Premium Products* million tons p.a. Premium Products Commodities +3.7% p.a. 751 RoW** +6.1% p.a. NAFTA 637 8% 290 20% 523 220
Slide 48: Stainless: Attractive Growth Prospects for Demand in NAFTA Region
Presentation ThyssenKrupp, August 2007 47 Stainless: Attractive Growth Prospects for Demand in NAFTA Region in 1,000 tons p.a. Market Development CR Flat USA Market Development CR Flat Canada 1,793 237 1,800 250 +4.9% p.a. 1,700 +3.2% p.a. 225 1,600 1,500 +355 200 170 +67 1,438 0 0 2005 06 07 08 09
Slide 49: Investment Strategy Stainless Steel: The Concept
Presentation ThyssenKrupp, August 2007 48 Investment Strategy Stainless Steel: The Concept… … in the US: Participation in market growth and displacement of imports Production/deliveries in 1,000 tons p.a. 900 USA 77% • Broad product * portfolio incl. 340 72“ width 125 85 350 Mexico • Focus on 1% fer
Slide 50: Investment Grade Rating with Every Rating Agency is Key
Presentation ThyssenKrupp, August 2007 49 Investment Grade Rating with Every Rating Agency is Key The underlying principle for all our growth initiatives High degree of flexibility due to { Cash (€2.7 bn as of Jun 30, 2007) { Available credit lines (€4.3 bn as of Sep 30, 2006) { Treasury stock (25.7
Slide 51: Investment Conclusion
Presentation ThyssenKrupp, August 2007 50 Investment Conclusion { Strong commitment to sustainable profit and cash generation as well as value enhancement across business cycles { Value creation for shareholders not only by profitable growth initiatives, but also by stable and sustainable dividend p
Slide 52: Disclaimer
Presentation ThyssenKrupp, August 2007 51 Disclaimer In this presentation all figures since fiscal year 2004/05 are prepared in accordance with IFRS. This document contains forward-looking statements that reflect management’s current views with respect to future events. Such statements are subject t