Commerzbank
Sector Conference Week
Frankfurt –
August 26, 2010
Dr. Claus Ehrenbeck, Head
of Investor Relations
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
1
Premium flat carbon steels
Large-scale, multiple niche approach
Long-term customer relations
Technology leadership in products and processes
Premium flat carbon steels
CSA: slab mill in Brazil, 5 m t capacity,SoP Q3 CY 2010
Steel USA: processing plant (hot / cold rolling and coating), SoP Jul. 31, 2010
Stainless steel flat products & high-performance materials
Operations in Germany, Italy, Mexico, China
Stainless steel plant project in USA
Global materials distribution(carbon & stainless steel, pipes & tubes, nonferrous metals, aluminum, plastics)
Technical and infrastructureservices for production & manufacturing sectors
Elevators
Escalators & moving walks
Passenger boarding bridges
Stair lifts, home elevator
Maintenance, Repair & Modernization
Specialty and large-scale plant construction, e.g.:
Petrochemical complexes
Cement plants
Systems for open-pit mining & materials handling
Components for theautomotive industry(e.g. crankshafts, axlemodules, steering systems)Large-diameter bearings & rings (e.g. for wind energy)Undercarriages for trackedearthmoving machinery
Focus on naval
shipbuilding:
Engineering & Construction of non-nuclear submarines
Engineering of NavalSurface Vessels(fregates & corvettes)
Steel
Europe
Steel
Americas
Stainless
Global
Materials
Services
ElevatorTechnology
Plant Technology
ComponentsTechnology
MarineSystems
9M 2009/10: Sales €31.1 bn
•
EBT €918 m •
TKVA €138 m •
Employees 174,541
ThyssenKrupp*
ThyssenKrupp Group: Now
Higher
Transparency
* The TK Group consists of >800 legally independent companies, organized, existing and operating under the laws of 70 countries, ultimately led by TK AG.
Sales:
€7.8 bnEBT:
€450 m€0 bn
€(98) m
Sales & EBT for
9M 2009/10
€4.4 bn€(112) m
€9.2 bn€316 m
€2.9 bn€230 m
€4.1 bn€164 m
€1.0 bn€(40) m
€3.8 bn€459m
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
2
Group Performance and Financials
Business Area Performance
Group Outlook
Agenda
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
3
Efficiency
Management Focus
•
Realization of sustainable cost savings on track
•
Additional reduction of structural overcapacities at Components Technology
•
Cash and cost control
Reducing complexity and risk
Restoring the basis for future value creation
Projects
•
Commissioning of blast furnace and meltshop:
•
BF #1: July 12
•
1st coil: July 31
•
Intensive marketing across all US customer segments
•
Ramp-up of BF #2 earlier
now expected by end of 2010
Portfolio
Growth Structural Performance
•
Marine Systems:•
Strategic partnership with Abu Dhabi MAR (sale of Hamburg site & JV naval surface vessels) before closing
•
Best owner process for
Metal Forming business
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
4
Order Intake and Sales
Order intake
million €
Q1 Q2
12,887
7,642* 7,515*7,926*
Q3 Q4
2008/09
9,328
Q1
2009/10
Sales
million €
Q1 Q2
11,5229,859 9,299
Q3 Q4
9,883 9,351
Q1
2008/09 2009/10
* including
cancellations
(container
ships, mega
yachts, submarines Greece)
Q2: ~ €100 m, Q3: ~ €500 m; Q4: ~ €1,000 m
10,373
Q2
10,107
Q2
10,930
Q3
11,679
Q3
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
5
Earnings Before Interest and Taxes and Earnings Before Taxes
Q1Q2
Q3 Q4
2008/09
Q1
2009/10
EBIT adjusted
million €
Q1Q2
407(276)
(1,197)(597)
Q3
Q4
2008/09
477
Q1
2009/10
416 (112)(289) (390)
401
EBIT
million €
EBT adjusted
million €
Q1
Q2
Q3 Q4
2008/09
Q1
2009/10
249
(291) (464) (570)
237
EBT million €
Q1Q2
240(455)
(1,377)(772)
Q3
Q4
2008/09
313
Q1
2009/10
191
Q2 Q2
206
354
Q2 Q2
369587
Q3 Q3
653
414
Q3 Q3
480
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
6
million € Q1 Q2 Q3 Q4 Q1 Q2 Q3
Steel Europe 371 131 (156) (262) 126 179 200
% 13.0 5.6 (7.3) (11.7) 5.5 6.7 6.9
Steel Americas (42) 0 9 (44) 37 7 (26)
% n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Stainless Global (228) (291) (139) (55) (41) (102) 81
% (19.4) (29.5) (13.5) (4.2) (3.4) (7.0) 4.7
Materials Services 54 (88) (106) 1 48 70 157
% 1.4 (2.8) (3.9) 0.0 1.7 2.4 4.4
Elevator Technology 157 149 168 124 154 151 150
% 11.7 11.5 12.7 9.2 12.6 12.4 11.4
Plant Technology 72 62 50 24 82 59 48
% 6.7 5.2 4.5 2.2 8.6 6.3 4.9
Components Technology 66 (7) (60) (85) 57 73 113
% 5.1 (0.6) (5.6) (7.4) 4.6 5.4 7.2
Marine Systems 32 (45) (27) (39) (1) 11 (3)
% 5.9 (12.1) (8.4) (11.0) (0.4) 3.8 (0.7)
Group 416 (112) (289) (390) 401 369 653% 3.6 (1.1) (3.1) (3.9) 4.3 3.7 5.6
2008/09 2009/10
Quarterly EBIT Adjusted and Margin
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
7
Net Income and Earnings Per Share
Net income
million €
Q1
Q2
163
(362)
(1,044)
(630)
Q3
Q4
2008/09
195
Q1
2009/10
EPS
€
Q1
Q2
0.36
(0.71)
(1.38)
Q3
Q4
(2.28)
0.35
Q1
2008/09 2009/10
234
Q2
0.45
Q2
Expected
FY 2009/10 tax rate: ~ 20%
298
Q3
0.58
Q3
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
8
Net Financial Debt
FCF: (950)Capex*
NFDMar 2010
NFDJun 2010
(3,753)
(942)
Gearing34.3%
OCF(23)
(2,652)
Gearing25.5%
15Divestments
thereof:•
Steel Europe 53• Steel Americas
622thereof:
TK CSA 310
NAFTA Steel
312
•
Stainless Global
88 thereof:
NAFTA Stainless
80• Materials Services
28• Elevator Technology 19• Plant Technology 6•
Components Technology
47
Others
Development of net financial debt in Q3
million €
* Capex
for property, plant & equipment + financial & intangible assets
(151)
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
9
Tight Capex
Management Going Forward
2005/06 2007/082006/07 2008/09
Capex
Divestments
2009/10E 2010/11E
3.0-3.5
Americas Projects
2011/12E
4.24.2
3.0
2.0
0.30.7
0.3 0.2
Depreciation
Cash flows from investing activities
billion €
9M 2009/10
2.5
0.5
Focus: Positive FCF
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
10
Group Performance and Financials
Business Area Performance
Group Outlook
Agenda
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
11
109
Steel Europe
Q3 2009/10 Highlights
Comments Q3 (qoq)
EBT in €m
Q1 Q2 Q3 Q4 Q1
2008/09
Order intake in €m
Current trading conditions
2009/102008/09
(312)
345104
2009/10
(339)
354
Q1 Q2
Q3 Q4
Q1
EBT adjustedEBT
112(172) (273) 163
Q2
Q2
Efficiency gains, higher volumes and higher average revenues per ton compensate increasing raw material costs
Further improvement in downstream utilization; upstream capacities fully loaded
High utilization, higher average revenues per ton and significantly increased raw material costs
Robust demand from key customer groups benefiting from improved export business
Best owner process for Metal Forming business
1,866 1,4792,223 2,324 2,500 2,999
183
Q3
Q3
2,706
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
12
Average revenues per ton*, indexed
Q1 2004/2005 = 100
HKM share
724 873 837756
334265
440410
Q2
Steel Europe: Output, Shipments and Revenues per Metric Ton
3,459
Fiscal year
2005/06 2006/07
3,615
Q1
2008/09
3,194
Cold-rolledHot-rolled
122139
120100
125114
133
156
111129 136
116
153
116138
118 118133 134
115 123
150
120
Q12005/06Q2 Q3 Q4Q1
2004/05Q2 Q3 Q4 Q1
2006/07Q2 Q3 Q4
1,953
Q3
1,512
2,566
Q4
2007/08Q1 Q2 Q3 Q4
2007/08
3,553
Q1
2009/10
2,964
Crude steel output (incl. share in HKM)
1,000 t/quarter Shipments*: Hot-rolled and cold-rolled products
1,000 t/quarter
2008/09Q1 Q2 Q3 Q4
2,735 2,742 2,7162,438
1,6191,247
2,1262,554
Fiscal year
2005/06 2006/07
3,483
2007/08
1,001
2,482
3,513
1,048
2,465
3,590
1,093
2,497
Q1
2008/09
Q2 Q3 Q4
2,517
815
1,702
2,088
573
1,515
2,116
533
1,583
2,620
719
1,901
Q1
2009/10
2,533
715
1,818
2009/10Q1
* shipments and average revenues per ton until FY 2007/08 relate
to former Steel segment
3,326
2,601
726
Q2 Q2
3,167
Q2
2,199
968
3,614
2,755
859
Q3
3,216
Q3
Q3
2,165
1,051
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
13
300
400
500
600
700
800
900
1.000
Premium Product Mix Generates Above-Average Revenues
Premium Product Mix Steel Europe FY 2008/09
in % of sales
6
8
12
33
11
45
15
6
TailoredBlanks Construction
Elements
ElectricalSteel
Medium-wide Strip
Hot Strip
Tinplate
Coated Products(HDG, EG, Color)
Cold Strip
Heavy Plate
Revenues/t
€/t
*)
excl. Metal Forming
2004 200820062005 20092007
BA Steel Europe*)
majorEuropean
competitors
Multiple
Niches
Large
Scale
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
14
Demanding
Example
Applications
and Solutions Based
on Premium Flat
Carbon
Steels Made by
ThyssenKrupp
Thickhot strip
Heavy Plate
Bodies
up to 24% lighter
with
same
safety
performance
Involving
>30 innovative solutionsfor
body, chassis
and powertrain
Ratio of load
capacity
tooperating
weight
increased
to 8:1
In sour
gas resistant
gradesfor
pipelines
For extreme demands
on deep
drawing
properties
(0.07 mm)
Up to 99% efficiency
Tinplate
ElectricalSteels
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
15
Project costs in Q3 partially compensated by positive translation effect (Brazilian Real/€)
ThyssenKrupp CSA BF #1 blown in on July 12;
SoP
BF #2 currently planned for end of 2010
ThyssenKrupp Steel USA: 1st HRC on July 31
InCar project – toolbox for optimized weight/cost/safety solutions – rolled out to NAFTA customer base
Steel Americas
Q3 2009/10 Highlights
Comments
2009/102008/09
Q1 Q2 Q3 Q4 Q1
(22)
(76)
(4)
(99)
(19)
EBT in €m ThyssenKrupp CSA
Sepetiba Bay, Santa Cruz, Rio de Janeiro, BrazilCoking plant: 1.9 m t/yr of cokeSinter plant: 5.7 m t/yr of sinter2 blast furnaces: 5.3 m t/yr of hot metal Steel shop: >5 m t/yr of slabsPower plant: 490 MWCapex budget: €5.2 bnTotal cash-out: €5.9 bn1st slab: Q3 CY 2010
ThyssenKrupp Steel USASite on the Tombigbee River, Mobile Cty, AL, USAHot strip mill: >5 m t/yr
up to 74” width / 1” thickness, 7 standsTandem/cold strip line: 2.5 m t/yr4 galvanizing lines: 1.8 m t/yrCapex budget: $3.6 bnTotal cash-out: $3.8 bn1st coil: July 31, 2010
Q2
(32)
Q3
(62)
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
16
TKS USA
Mini-MillBlast Furnace
Auto Customers
Industry (Non-Auto) Customers
1) Size of Industry and Auto bubbles reflect the approximate number of customer locations in the given area.
2) Includes all steelmaking (EAF, BF) locations, excluding West Coast of U.S. and Canada.
Well Positioned in Southeastern United States with Proximity to Mexico Geographic Position of TKS USA, our Home Market and BF & EAF Competitors
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
17
ThyssenKrupp CSA:Blow in BF #1on July 12
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
18
ThyssenKruppSteel USA:
1st Coil on July 31
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
19
Stainless Global
Q3 2009/10 Highlights
Comments Q3 (qoq)
Q1 Q2 Q3 Q4 Q1
2008/09
Order intake in €m
Current trading conditions
2009/10
(367)
EBT in €m
2009/102008/09
(202)(243)
(59)(114)
Q1
Q2
Q3
Q4Q1
(156) (69)(307)
EBT adjustedEBT
(117)
Q2
Q2
Positive earnings due to higher transaction prices, ongoing high capacity utilization and positive nickel hedge effect
Continuing increase in transaction prices throughout the whole quarter
Lower order intake due to cautious ordering by service centers (decreasing nickel price by end of Q3)
Seasonally lower volumes and capacity utilization (mainly Italy), but robust demand from end customersDecreasing base prices and alloy surcharges in July and August, increase in base prices intended from SeptemberSeasonal and nickel price-related de-stocking from normal levels; pick-up in demand from September likely
967 8181,207 1,155 943
1,560
64Q3
Q3
1,317
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
20
Shipments Stainless*: Hot-rolled and cold-rolled productsCrude steel output*
1,000 t/quarter
Stainless Global: Output, Shipments and Average Transaction Price
Q1Fiscal year
2005/06
2008/09
Q2
* including carbon, forging, Ni-Alloys
Q3 Q4 Q1Fiscal year
2005/06
2008/092006/07 Q2
Hot-rolled, including slabsCold-rolled, including precision strip
567510
Q3 Q1Q4
98 9577
95
7089
122
161
118
90
123
161
82100
171
8294
123 125
177
9892
134
2007/08
Q12005/06Q2 Q3 Q4Q1
2004/05
Q2 Q3 Q4 Q1
2006/07
Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006/07
2008/09
Q1 Q2 Q3
375327
450
Q1
Average transaction price per ton, indexed
Q1 2004/2005 = 100
* consolidated
531
Q4 Q1
2007/08
1,000t/quarter
516504
2007/082009/10
690630 624
465
315
525591 603 84 87
126
441 426 429
6054
99135
315 273 351 396
147
357
2009/10
2009/10
657
Q2 Q2
129
447
576
Q2
Q3
665
Q3
534
Q3
412
122
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
21
Materials Services
Q3 2009/10 Highlights
Comments Q3 (qoq)
Q1 Q2 Q3 Q4 Q1
2008/09
Order intake in €m
Current trading conditions
2009/10
EBT in €m
2009/102008/09
30
112
(91)(128)(106)Q1
Q2 Q3 Q4
Q1(19)
31
EBT adjustedEBT
60
Q2
Q2
Improvement in volumes and prices throughout all product groups
Demand strongly supported by German automotive and mechanical engineering customers
All Operating Units with improving earnings
Restructuring efforts bearing fruits
Continuing underlying demand strength and moderate seasonal impact in Europe
Cash-conscious inventory management across all customer groups
4,016
2,719 2,4692,881 2,681
3,059
144
Q3
Q3
3,695
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
22
Elevator Technology
Q3 2009/10 Highlights
Comments Q3 (qoq)
Q1 Q2 Q3 Q4 Q1
2008/09
Order intake in €m
Current trading conditions
2009/102008/09
Q1 Q2 Q3 Q4 Q1
149159 15596
166
EBT in €m
2009/10
124
EBT adjustedEBT
Q2
153
Q2
Global new installation growth is driven by Asia/China
Infrastructure projects adding additional market potential
North American and European new installation bottoming out
Strongest order intake for 6 quarters, driven by stabilizing demand and continuous expansion of maintenance business
Solid earnings performance with all Operating Units contributing positively
Strength in maintenance compensates for regional softening in new installation and modernization
1,5621,189 1,186 1,101 1,230 1,215
Q3
151
Q3
1,390
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
23
Elevator Technology: Strategic Direction
Performance Improvement Growth of Service Business
850,000
900,000
950,000
1,000,000
2007/08 2008/09
Units under maintenance
+100,000Units
Efficient and global production network
Harmonized product portfolio based on global platforms
Focus on Service & Modernization
Standardization of processes
Q1 Q2 Q3 Q4 Q1 Q2
2008/09 2009/10
14
EBIT %EBIT adj. €m
250
150
Q1 Q2 Q3 Q4
2007/08
9.1%
11.2%12.2%
50
10
6
2
Q3
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
24
Plant Technology
Q3 2009/10 Highlights
Comments Q3 (qoq)
Q1 Q2 Q3 Q4 Q1
2008/09
Order intake in €m
Current trading conditions
2009/102008/09
Q1 Q2 Q3 Q4 Q1
7499 95
(2)65
EBT in €m
2009/10
79 66
37
EBT adjustedEBT
Q2
73
Q2
1,751
517807
463
1,324824
Q3
62
Q3
800
Stable positive development of sales and order intake in all businesses, only cement plants with delays in award of several larger projects
Earnings realization lower in Q3 due to lower PoCorder execution; additionally burdened by impairments at production systems for auto industry
Order backlog of €6.5 bn (1.7x sales) supporting sales and earnings visibility
Recovery of raw materials markets leading to increased project activity in chemical, mining and minerals businesses
Cement plants subject to intensified competition with lower number of projects up for award
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
25
Plant Technology: Technology Portfolio Offering
Growth Potential
OU
Polysius
Förder-
technik
Uhde
Technologies Market Positions
Gas & Oil Refining
Biotechnology
Gasification
Coke
Plant Technologies
Electrolysis
HandlingProcessingHandlingMining
Mining and Materials
Handling
Equipment: No.1
Cement
plants:
No.3
Conversion
Technologies Customer
Products
Fertilizers, Org. Chemicals
& Polymers
Biopolymers
Electric Power; Fuel
Steel
Inorganic
& Organic
Chemicals
Raw
material preparation Clinker
production Cement
manufacturing
Fertilizers: No.1Polymers: No.2
Coke
Plant Tech.: No.1
Electrolysis: No.1
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
26
Plant Technology: Order Q3 09/10 for Oil Sand Mining Equipment Largest Single Order in the History of Fördertechnik
Customer: Imperial Oil
Turn-key order for engineering, procurement, construction & commissioning of oil sand preparation plant, consisting of:
•
New-generation crushing plant
•
3 large conveyor systems
•
Surge bin (storage silo): 10,000 t capacity
•
2 complete slurry preparation plants: capacity 2 x 6,000 t/h
oil sand
Production capacity of Imperial Oil project: 100,000 bbl/day
Order volume: > €300 m
Commissioning: 2012
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
27
Components Technology
Q3 2009/10 Highlights
Comments Q3 (qoq)
Q1 Q2 Q3 Q4 Q1
2008/09
Order intake in €m
Current trading conditions
2009/102008/09
Q1Q2
Q3
Q4
Q1
53 43
EBT in €m
2009/10
(363)
(47) (101)
(21) (76) (104)
EBT adjustedEBT
Q2
63
Q2
1,2901,016 899 972 1,169 1,337
Q3
58
Q3
1,584
105
Further increase in sales and EBT adjusted, mainly driven by demand pick-up in auto supply business and restructuring measures initiated in previous year
Construction equipment and slewing bearings business with increasing order intake for three quarters
Continued restructuring (€47 m in Q3):capacity adjustments at chassis components (Germany) and construction equipment business (Italy)
After strong growth of auto industry (mainly driven by export markets China and USA; recently also positive development also with commercial vehicles) slight slowdown expected
Continued recovery in construction equipment and slewing bearings business
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
28
Heavy
Commercial Vehicles
Automotive Components
Components Technology: Recovery of Order Intake
Passenger Cars/ Light Comm. Vehicles
COMPONENTS TECHNOLOGY
Quarterly
Order Intake
Q4Q3Q2Q1
2008/09
Q3Q2Q1
2009/10
Large-diameter
bearings & rings
Industrial & Construction Machinery
Undercarriages for
tracked/crawler equipm.
Quarterly
Order Intake
Q4Q3
2007/08
Q4Q3Q2Q1
2008/09
Q3Q2Q1
2009/10
Q4Q3
2007/08
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
29
~100
Marine Systems
Q3 2009/10 Highlights
Comments Q3 (qoq)
Q1 Q2
Q3
Q4
Q1
2008/09
Order intake in €m
1,856
193(339)
(840)
Current trading conditions
2009/10
110
2008/09
Q1
Q2 Q3
Q4
Q1
33(10)
EBT in €m
2009/10
(343)
(117) (127)~1,000
~500
Impact of cancellations
(container
ships, mega
yachts,
submarines Greece)
(47) (31) (45) (5)
EBT adjustedEBT
Q2
(7)
8
Q2
139Q3(23)
(4)
Q3
108
Implementation of new target structure (Hamburg site) before closing, corresponding regulatory approval procedures initiated and in part already completed
Negative earnings of Hellenic Shipyards (HSY) adjusted as “special items” due to non-going-concern assumption
Operating losses mainly due to underutilization in shipbuilding, partly compensated by sale of cancelled container ships
Recovery of merchant shipping market leading to pick-up of market for repairs and conversions
Q4 also burdened by underutilization in civil shipbuilding
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
30
Group Performance and Financials
Business Area Performance
Group Outlook
Agenda
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
31
Outlook FY 2009/10 –
Return to Profitability
EBT adjusted
Sales
EBIT adjusted
KPI Updated
Outlook
Mid to higher three-digit
million €
positive,
Slight improvement
> €1 billion,
incl. project costs, startup losses, depreciation and interest expenses of Americas projects (mid-range three-digit million €)
incl. project costs, startup losses and depreciation of Americas
projects
Moderate stabilization
Low three-digit
million €
positive,
High three-digit
million €
positive,
Previous
Outlook
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
32
Expectations Q4 2009/10 –
Business Areas
Steel EuropeGood capacity utilization, higher average selling prices and significantly higher raw material costs
Steel Americas
Negative EBT contribution due to startup losses for the steel and processing plants in Brazil and the USA
Stainless GlobalSlipping volumes, mainly due to seasonal factors, stable end-customer business and slow demand from distributors due to nickel price
Materials Services
Elevator TechnologyContinuing high earnings contributions thanks to high orders in hand and steady maintenance business
Plant Technology
Continuing good revenue and earnings visibility in project business due to order backlog with good earnings quality
Components
TechnologyRecovery in demand for construction equipment, mainly positive earnings from automotive suppliers and continuing positive earnings contribution from slewing bearings for the wind energy sector
Marine Systems
Continuing losses due to underutilization in civil shipbuilding until completion of consolidation of shipyard sites
Slipping volumes, mainly due to seasonal factors, higher flat steel prices and continuing strong demand from the auto and machinery sectors
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
33
The
Way Forward to Sustainable
Value Creation
Liquidity ProfitabilityValue
Creation
TKVA and FCF > 0
Operating cash flow: €3.7 bn
Capex reduction:< €4.3 bn spent
€3 bn bonds issued
Increase of Vale stake in CSA to 26.87% (from 10%) for €965 m
Divestments at Industrial Services
Strong cost control
Realization of sustainable cost savings: €1.5 - €2.0 bn targeted in FY 2010/11
Continued reduction of structural overcapacities
Increased external transparency and benchmarking
Strong cost control
Accelerated startup of Steel Americas and startup of Stainless USA with high degree of flexibility
Focus on FCF generation
Portfolio under review
FY 2009/10 FY 2010/11 et seq.FY 2008/09
Growth Structural Performance
Commerzbank
Sector Conference Week
Frankfurt –
August 26, 2010
Dr. Claus Ehrenbeck, Head
of Investor Relations
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
35
Financial Calendar –
FY 2009/10 and FY 2010/11September Roadshows
Belgium (1st), Frankfurt (8th), The Netherlands (9th), Zurich (28th)ConferencesLBBW “Engineering & Technology Investment Day”, London (2nd)Credit Suisse “Capital Goods and Aerospace Conference”, London (15th)UBS “Best of Germany Conference”, New York (15th and 16th)UniCredit “German Investment Conference”, Munich (22nd)Credit Suisse “Global Steel & Mining Conference”, London (23rd)
November Annual Report FY 2009/10Analysts’ and Investors’ Conference & Annual Press Conference (30th)
February Interim Report 1st Quarter 2010/11 (11th)
May Interim Report 2nd Quarter 2010/11 (13th)
Phone: +49 201 844-536464 E-mail: [email protected]: www.thyssenkrupp.com
New Contact Details as of June 21, 2010:ThyssenKrupp AGThyssenKrupp Allee
145143 Essen -
Germany
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
36
New Contact Details as of June 21, 2010 ThyssenKrupp Corporate Center Investor Relations
NEW phone numbers
+49 201-844-
Dr. Claus Ehrenbeck
-536464
Rainer Hecker
-538830
Head of Investor Relations
Senior IR Manager
Stefanie Bensch
-536480
Christian Schulte
-536966
Assistant
Senior IR Manager
Iris aus
der
Wieschen
-536367
Sabine Berger
-536420
Team assistant
IR Manager
Ute Kaatz
-536466
Klaudia
Kelch
-538371
Event Manager
IR Manager
Tim Lange
-536309
IR Manager
To be added to the IR mailing list, send us a brief e-mail with your details!
E-mail: [email protected]
Developing the future.
Commerzbank Sector Conference WeekAugust 26, 2010
37
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.”
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