ThyssenKrupp Elevator Technology Elevating Value!
Transcript of ThyssenKrupp Elevator Technology Elevating Value!
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
0 Developing the future.
ThyssenKrupp Elevator Technology Elevating Value! ThyssenKrupp Capital Market Day Andreas Schierenbeck December 6th, 2013
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
1 Developing the future.
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* From FY2009/10 onwards EBIT adjusted
Sales in € m
ThyssenKrupp Elevator: sustainable value driver & cash provider
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ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
2 Developing the future.
Tallest building in the USA One World Trade Center
73 elevators and 11 escalators
Fastest elevators in North America (9 m/s)
Building height: 541 meters; 104 floors
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
3 Developing the future.
198 elevators and 165 escalators
63 km railway line and 36 city train stations
1.5 million passengers daily
New tunnel between Europe and Asia Marmaray Istanbul
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
4 Developing the future.
Largest underground terminus in the world West Kowloon Terminus Hong Kong
73 elevators and 8 escalators
380,000 m² area
99,000 passengers daily
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
5 Developing the future.
95 elevators and 38 escalators
235,000 m² area
450 shops and restaurants
Largest shopping mall in Abu Dhabi Yas Mall Abu Dhabi
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
6 Developing the future.
ThyssenKrupp Elevator Technology
1
2 Performance Targets
Business Model
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
7 Developing the future.
FY 12/13
Financial targets also in 2012/13 fully achieved
FY 11/12
[m€]
EBIT adj. 587 675
EBIT margin adj. 10.3% 11%
FCF 164 596
CE average 2,427 2,353
TKVA 193 423
Order Intake 6,149 6,520
ROCE 16.0% 26.0%
Sales 5,705 6,155 Above market growth EBIT improvement Margin increase
Higher value contribution
More cash provided
Reduction of CE
Record Order Intake
Higher capital efficiency
Δ 11/12-12/13
+15%
+6%
+8%
+263%
+0.7bps
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
8 Developing the future.
We are committed to our goals from CMD 2011
EBIT margin
Sales
Target level
Profitability! Growth!
15% EBIT margin | €1 bn EBIT
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
9 Developing the future.
A leading position in a stable growing Industry
€39 bn €52 bn
~5% p.a.
2010/11 2012/13 2015/16
Elevator Technology
~49,000 Employees worldwide
~150 Client Countries
~70 Countries
20 Manufacturing Sites
World Elevator Market
€45 bn
13%
market data based on internal estimation/ public domain/statistical calculation
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
10 Developing the future.
Built from scratch in only 40 years
74/75 12/13 79/80 84/85 89/90 94/95 99/00 04/05
€0.2 bn
CAGR +10%
German Central European Euro-American Global Western European
Sales €6.2 bn
2002/03
1988/89
1998/99
2001/02
South America
2002/03 DONGYANG
ELEVATOR CO., LTD.
2010/11
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
11 Developing the future.
Increasingly balanced regional footprint
100%
AP
EMEA*
Americas
12/13
22
40
38
10/11
17
46
37
08/09
11
43
46
06/07
10
47
43
Sales in %
Target
* Including Rest of World
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
12 Developing the future.
Balanced business split
Service
New Installation
Conversion Rate
~80%
Manufacturing
Maintenance Modernization
Installation
~50%
~50%
Sales 2012/13
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
13 Developing the future.
Regional market drivers
New Installation Service
Balanced
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
14 Developing the future.
ThyssenKrupp Elevator Technology
1
2 Performance Targets
Business Model
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
15 Developing the future.
Profitability and Growth
EBIT margin
Sales
Target level
Profitability! Growth!
15% EBIT margin | €1 bn EBIT
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
16 Developing the future.
Manufacturing | New Installation 1
Service | Modernization 2
Five initiatives to reach performance target
Multi-year program
15% EBIT margin | €1 bn EBIT
Portfolio | Restructuring 3
Growth Emerging Markets 4
M&A 5
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
17 Developing the future.
Profitability target initiatives
EBIT margin
Sales
Target level
Profitability! Growth! Portfolio | Restructuring 3
Manufacturing | NI 1 Service | Modernization 2
Manufacturing | NI 1
15% EBIT margin | €1 bn EBIT
1
2
3
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
18 Developing the future.
Manufacturing: investments and targets
Improvement in productivity
Delivery reliability
Lead times/ inventories
Asset turnover
>98% 5%
New facility
New facilities
Multi purpose facility
Modernization
Modernization
Modernization
Investments
Central coordination Elevator production system Standardization
Targets
1
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
19 Developing the future.
2016 2013
>1,1m
2011
Growth in service
Start FY
Conversion 3rd Party Price
End FY
Target: service growth ~10% yoy
M&A
Units under Maintenance
$ $
Phase 1 Phase 2
+40,000 p.a.
Service Sales
2
~10%
Expiration
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
20 Developing the future.
Driving positive customer experience
People are key for success!
Staff training Customer satisfaction
2
Responsive Fast Decisions
Reliable Flexible
Selected facts & figures FY 2012/13
~49,000 employees trained
~3,500 service trainings
~2,300 workshops
Global presence at 11 locations
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
21 Developing the future.
Europe struggling: prevent underperformance!
~-30%
Margin kept on high level despite sales decline
2007 2009 2013 2011
3
Number of new installed units Performance TKE Spain
10
20
0
30
-75%
k Units
Sales EBIT Margin
08/09 10/11 12/13
€ m
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
22 Developing the future.
All options available: tough decisions taken!
Construction Spending Houses, Moving Average (3 M.)
500
400
300
200
100
0
95 00 05 10 12
$ m
EBIT Sales € m
Closed
Exit US home elevator manufacturing operations
08/09 09/10 10/11 11/12 12/13
Performance US-activity home elevator Market development home elevator
3
-80%
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
23 Developing the future.
Growth target initiatives
EBIT margin
Sales
Target level
Profitability!
Growth!
Growth Emerging Markets
4
M&A 5
15% EBIT margin | €1 bn EBIT
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
24 Developing the future.
Emerging markets will drive growth
market data based on internal estimation/ public domain/statistical calculation
4
Market Volume 11/12 CAGR 11/12 – 17/18
~11 € bn > 5%
~1,6 € bn > 5%
~1,2 € bn > 10%
~1,6 € bn > 5%
~0,6 € bn > 10%
< 2%
< 1%
~14 € bn
~6 € bn USA
Europe
China
Russia
India
Brazil
Turkey
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
25 Developing the future.
China: Accelerated growth strategy
12/13 09/10 07/08 05/06
Order Intake China in € m
12/13
~200
10/11
~140
Locations in China
€1 bn
CAGR +31%
New office every 2 weeks
4
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
26 Developing the future.
China: 2nd and 3rd brand main driver of growth
12/13 10/11 08/09
3rd brand
1st brand
2nd brand
Value end
Middle segment
High end
Market segment
3rd brand:
Minority JV
2nd brand: Proven TKE technology
Latest TKE technology
Market segment
Marohn
New Installation units
CAGR +25%
CAGR (10/11-12/13)
~25%
>50%
~10%
4
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
27 Developing the future.
Russia: Successful product launch in the high end market
Order Intake Russia in € m
€100 m
70 TWINs in Moscow
12/13 10/11 08/09
CAGR +43% TWIN®
4
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
28 Developing the future.
Top 5 NI-markets FY 2012/13
Brazil Turkey Russia India China
Russia: New elevator for residential applications
~30,000
Residential market Russia
Market volume units
~360,000
~53,000
~21,000
70%
market data based on internal estimation/ public domain/statistical calculation
Product launch FY 2013/14
4
~16,000
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
29 Developing the future.
Mega infrastructure projects
Dedicated approaches to growth
Multi-brand concept 2nd Brand 3rd Brand
4
New elevator for residential market
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
30 Developing the future.
M&A activities give access to highly profitable service business
Asia-Pacific 2 acquisitions in last 2 Years
EMEA 31 acquisitions in last 2 Years
Americas 5 acquisitions in last 2 Years
5
Annual run-rate: higher double-digit €m
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
31 Developing the future.
Our strategy
EBIT margin
Sales
Target level
Profitability!
Growth!
Growth Emerging Markets
2
M&A 5
Portfolio | Restructuring 3
Manufacturing | NI 1 Service | Modernization 2
Manufacturing | NI 1
15% EBIT margin | €1 bn EBIT
1
2
3 4
5
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
32 Developing the future.
Our commitment
10.3%
15% EBIT margin & €1 bn EBIT
15%
ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06
33 Developing the future.
Disclaimer ThyssenKrupp AG
“The information set forth and included in this presentation is not provided in connection with an offer or solicitation for the purchase
or sale of a security and is intended for informational purposes only.
This presentation contains forward-looking statements that are subject to risks and uncertainties. Statements contained herein that
are not statements of historical fact may be deemed to be forward-looking information. When we use words such as “plan,” “believe,”
“expect,” “anticipate,” “intend,” “estimate,” “may” or similar expressions, we are making forward-looking statements. You should not
rely on forward-looking statements because they are subject to a number of assumptions concerning future events, and are subject to
a number of uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ
materially from those indicated. These factors include, but are not limited to, the following:
(i) market risks: principally economic price and volume developments,
(ii) dependence on performance of major customers and industries,
(iii) our level of debt, management of interest rate risk and hedging against commodity price risks;
(iv) costs associated with, and regulation relating to, our pension liabilities and healthcare measures,
(v) environmental protection and remediation of real estate and associated with rising standards for real estate environmental
protection,
(vi) volatility of steel prices and dependence on the automotive industry,
(vii) availability of raw materials;
(viii) inflation, interest rate levels and fluctuations in exchange rates;
(ix) general economic, political and business conditions and existing and future governmental regulation; and
(x) the effects of competition.
Please note that we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new
information, future events or otherwise.”