july2010 · 2019-03-08 · presentation thyssenkrupp july 2010 1 disclaimer˝thyssenkrupp˝ag ......
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Presentation ThyssenKruppJuly 2010
Developing the future.
PresentationThyssenKruppJuly2010
1
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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PresentationThyssenKruppJuly2010
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ElevatorTechnologies ServicesStainlessSteel
�SalesFY2008/09;inter-BA sales not consolidated#
Sales:�€40.6�bn
ThyssenKrupp*
ThyssenKrupp�Group�– Higher Transparency
Steel�Europe
Sales€9,570m
Stainless�Global
Sales€4,486m
Steel�Americas
Sales€0m
Materials�Services
Sales€12,815m
Elevator�Technology
Sales€5,308m
Plant�Technology
Sales€4,450m
Components�Technology
Sales€4,603m
Marine�Systems
Sales€1,594m
effective�sinceOctober�1st,�2009
ThyssenKrupp
Reorganization
*TheThyssenKruppGroupconsistsofmorethan800legallyindependentcompanies,organized,existingandoperatingunderthelawsof70countries,ultimatelyledbyThyssenKruppAG.
Developing the future.
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� Group�Performance and�Financials
� Business�Area�Performance
� Group�Outlook
Agenda
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Efficiency
Management�Focus�in�Q2�2009/10
• Effective�restructuring
• Sustainable�cost�savings
• Continuous�reduction�of�structural�overcapacities�e.g.ComponentsTechnology#
� Reducing�complexity�and�risk
� Restoring�the�basis�for�future�value�creation
Projects
• Commissioning�of�first�facilities:
• Port&materialshandling
• Gasturbine�April#
• Sinterplant�April#
• Intensive�marketing�across�all�US�customer�segments
Portfolio
• Marine�Systems:
• SIAG�Schaaf deal�closed
• ADM�deal�signed
• HSY�framework�agreement�signed
• Continuous�portfolio�optimization
Growth Structural�Performance
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Order�Intake�and�Sales�– Q2�Book-to-Bill�>1�again
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
11,522
9,859 9,299
Q3 Q4
9,8839,351
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
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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
478
Q1
2009/10
416-112.
-289. -390.
402
EBIT� million�€
EBT�adjusted� million�€
Q1
Q2
Q3 Q4
2008/09
Q1
2009/10
249
-291. -464.-570.
237
EBT� million�€
Q1
Q2
240
-455.
-1,377.-772.
Q3
Q4
2008/09
313
Q1
2009/10
191
Q2 Q2
206
353
Q2 Q2
368
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PresentationThyssenKruppJuly2010
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million�€ Q1 Q2 Q3 Q4 Q1 Q2
Steel�Europe 371 131 -156. -262. 126 179
% 13.0 5.6 -7.3. -11.7. 5.5 6.7
Steel�Americas -42. 0 9 -44. 37 7
% n.a. n.a. n.a. n.a. n.a. n.a.
Stainless�Global -228. -291. -139. -55. -41. -102.
% -19.4. -29.5. -13.5. -4.2. -3.4. -7.0.
Materials�Services 54 -88. -106. 1 48 70
% 1.4 -2.8. -3.9. 0.0 1.7 2.4
Elevator�Technology 157 149 168 124 154 151
% 11.7 11.5 12.7 9.2 12.6 12.4
Plant�Technology 72 62 50 24 82 59
% 6.7 5.2 4.5 2.2 8.6 6.3
Components�Technology 66 -7. -60. -85. 57 73
% 5.1 -0.6. -5.6. -7.4. 4.6 5.4
Marine�Systems 32 -45. -27. -39. -1. 11
% 5.9 -12.1. -8.4. -11.0. -0.4. 3.8
Group 416 31124 32894 33904 402 368
% 3.6 31.14 33.14 33.94 4.3 3.6
2008/09 2009/10
Quarterly�EBIT�Adjusted�and�Margin
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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 tax�rate�in�FY�2009/10:�~�20%
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Net�Financial�Debt
Free�cash�flow:�35374
Capex*
Net�financialdebt
Dec�2009Net�financial
debtMar�2010
32,6524
37384
Gearing25.5%
Operatingcash�flow
184
32,1304
Gearing21.2%
17Divestments
thereof:• Steel�Europe�������� 68
• Steel�Americas 448
thereof:TK�CSA� 226
NAFTA�Steel 222
• Stainless�Global 87����������
thereof:NAFTA�Stainless 72
• Materials�Services 20
• Elevator�Technology� 8
• Plant�Technology 6
• Components�Technology 51
• Marine�Systems 1
Others
Development�of�net�financial�debt in�Q2 million�€
*�Capex for�property,�plant�&�equipment�+�financial�&�intangible�assets
154Dividend31394
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Declining�Capex Going�Forward
2005/06 2007/082006/07 2008/09
Capex
Divestments
2009/10E 2010/11E
3.0-3.5
Americas�Projects
2011/12E
4.14.2
3.0
2.0
0.30.7
0.3 0.2
Depreciation
Cash�flows�from�investing�activities billion�€
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� Group�Performance and�Financials
� Business�Area�Performance
� Group�Outlook
Agenda
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109
Steel�Europe
Q2�2009/10�Highlights
Comments�Q2�3qoq4
EBT�in�€m
Q1 Q2 Q3� Q4 Q1
2008/09
Order�intake�in�€m
Current�trading�conditions
2009/102008/09
33124
345104
2009/10
33394
354
Q1 Q2
Q3�Q4
Q1
EBT�adjustedEBT
11231724 32734 163
Q2
Q2
� Significant�recovery�of�order�intake
� After�restart�of�BF�HKM�A�early�January,�all�BFs in�operation
� Higher�capacity�utilization�and�shipments�overcompensate�lower�average�revenues�per�ton�
� Inventory�levels�at�distributors�and�SSC�remain�low;�order�intake�and�capacity�utilization�remain�high
� Massive�increase�in�raw�material�prices
� Tight�market�and�low�stock�levels�allowed�for�price�increases�from�April�1
� Market�conditions�bode�well�for�pricing�in�3rd�calendar�quarter
1,866 1,4792,223 2,324 2,500 2,999
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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
100
125114
133
156
111129 136
116
153
116138
118 118133 134
115 123
150
120
Q1
2005/06
Q2 Q3 Q4Q1
2004/05
Q2 Q3 Q4 Q1
2006/07
Q2 Q3 Q4
1,953
Q3
1,512
2,566
Q4
2007/08
Q1 Q2 Q3 Q4
2007/08
3,553
Q1
2009/10
2,964
Crude�steel�output�3incl.�share�in�HKM4 1,000�t/quarter Shipments*:�Hot-rolled�and�cold-rolled�products 1,000�t/quarter
2008/09
Q1 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
2009/10
Q1
*�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
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Steel�Americas:�The�Transatlantic�Concept
TK�Steel�USA
TK�CSA
TK�SteelEurope
~�0-2�m�t~�3-5�m�t
~�5�m�t
BA�Steel�Americas BA�Steel�EuropeHome�&�key markets
Appliances
Automotive
Pipe�&�Tube
ConstructionSSC
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Industrial�cost�curve�2012�3hot-rolling�capacities,�NAFTA4��USD/t;mt/yr
Ø cash�costHRC�NAFTA
Transatlantic�Strategy�Based�on�Optimum�Cost-Quality�Position
USD/t
hot-rollingcapacities
Qm�t/yrR
0 10 20 30 40 9050 60 70 80
cash�costHRC
TK�BA�SteelAmericas
Costcompetitiveness
Margin opportunity!
Premium�quality &technology�leadership
Ø pricesNAFTA
Ø pricesTK�BA�SteelAmericas
ThyssenKrupp�CSA
� Sepetiba�Bay, Santa�Cruz,�
Rio�de�Janeiro,�Brazil
� Coking�plant: 1.9�m�t/yr�of�coke
� Sinter�plant:� 5.7�m�t/yr�of�sinter
� 2�blast�furnaces:� 5.3�m�t/yr�of�hot�metal�
� Steel�shop: >5�m�t/yr�of�slabs
� Power�plant:� 490�MW
� Capex budget:� €5.2�bn
� Total�cash-out: €5.9�bn
� 1st�slab:� Q3�CY�2010
ThyssenKrupp�Steel�USA
� Site�on�the�Tombigbee�River,�Mobile�Cty,�AL,�USA
� Hot�strip�mill:� >5�m�t/yr
� up�to�74” width�/�1” thickness,�7�stands
� Tandem/cold�line:� 2.5�m�t/yr
� 4�galvanizing�lines:� 1.8�m�t/yr
� Capex budget:� $3.6�bn
� Total�cash-out: $3.8�bn
� 1st�coil:� mid CY�2010
Key�facts
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Stainless�Global
Q2�2009/10�Highlights
Comments�Q2�3qoq4
Q1 Q2 Q3� Q4 Q1
2008/09
Order�intake�in�€m
Current�trading�conditions
2009/10
33674
EBT�in�€m
2009/102008/09
3202432434
359431144
Q1
Q2
Q3�
Q4Q1
31564 369433074
EBT�adjustedEBT
31174
Q2
Q2
� Loss�expansion�due�to�lower�average base�prices�and�higher�raw�material�costs
� Gradual�improvement�of�base�prices�and�alloy�surcharges�-since�February.
� Positive�development�of�order�intake�and�shipments�due�to�increasing�demand�from�end�customers
� Demand�and�pricing�to�result�in�earnings�improvement�
� Further�increase�in�base�prices�and�alloy�surcharges�as�well�as�high�capacity�utilization�rates�expected�
� Progress�in�re-stocking,�but�stock�levels�still�below�average
967 8181,207 1,155 943
1,560
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Shipments�Stainless*:�Hot-rolled�and�cold-rolled�productsCrude�steel�output* 1,000�t/quarter
Stainless�Global:�Output,�Shipments�and�Average�Transaction�Price
Q1
Fiscal�year
2005/06
2008/09
Q2
*�including�carbon,�forging,�Ni-Alloys
Q3 Q4 Q1
Fiscal�year
2005/06
2008/09
2006/07 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
177
9892
134
2007/08
Q1
2005/06
Q2 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
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Materials�Services
Q2�2009/10�Highlights
Comments�Q2�3qoq4
Q1 Q2 Q3� Q4 Q1
2008/09
Order�intake�in�€m
Current�trading�conditions
2009/10
EBT�in�€m
2009/102008/09
30
112
39143128431064Q1
Q2 Q3�Q4
Q13194
31
EBT�adjustedEBT
60
Q2
Q2
� Gradual�improvement�of�volumes�and�prices�throughout�all�product�groups
� Metals�Services�with�significant�earnings�turnaround
� Cost�control�and�implementation�of�restructuring�-e.g.�optimization�of�branch�network.
� Profit�upside�from�price�hikes�in�steel,�stainless�steel,�NF�metals�and�raw�materials
� Inventory�levels�remain�low
� Customers�still�acting�cautiously;�only�modest�“pre-buying”
4,016
2,719 2,4692,881 2,681
3,059
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Elevator�Technology
Q2�2009/10�Highlights
Comments�Q2�3qoq4
Q1 Q2 Q3� Q4 Q1
2008/09
Order�intake�in�€m
Current�trading�conditions
2009/102008/09
Q1 Q2 Q3� Q4 Q1
149159 155
96
166
EBT�in�€m
2009/10
124
EBT�adjustedEBT
Q2
153
Q2
� New�Installations�bottoming�out
� Demand�recovery�in�USA
� Growth�in�New�Installations�in�Asia,�especially�in�China
� Growth�potential�from�Services�and�Modernization
� High�profit�and�margin�levels
� Profit�contribution�across�all�operating�units
� Americas�with�strong�profits�
� Efficiency�improvement�measures�paying�off
1,5621,189 1,186 1,101 1,230 1,215
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Strategic�Direction�of�Elevator�Technology
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%12.5%
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
50
10
6
2
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Plant�Technology
Q2�2009/10�Highlights
Comments�Q2�3qoq4
Q1 Q2 Q3� Q4 Q1
2008/09
Order�intake�in�€m
Current�trading�conditions
2009/102008/09
Q1 Q2 Q3�
Q4
Q1
7499 95
324
65
EBT�in�€m
2009/10
79 66
37
EBT�adjustedEBT
Q2
73
Q2
� Normalization�of�order�intake�after�very�strong�Q1�which�was�positively�impacted�by�some�bulk�orders
� Further�gratifying�order�situation�in�Minerals�&�Mining industry
� Delay�of�few�large�projects�for�cement plants
� EBT�margin�at�7.7%�very�positive�again�and�above�adjusted�FY�level�2008/09�-6.3%.
� Increasing�project�activities�observed�in�all�operating�units
� Stable�order�backlog�of�€6.7�bn -1.6�x�sales.�endorsing�sales�and�earnings�development
� Business�still�impacted�by�delayed�investment�decisions,�partly�due�to�tight�credit�markets
1,751
517807
463
1,324824
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Components�Technology
Q2�2009/10�Highlights
Comments�Q2�3qoq4
Q1 Q2 Q3� Q4 Q1
2008/09
Order�intake�in�€m
Current�trading�conditions
2009/102008/09
Q1
Q2Q3�
Q4
Q1
53 43
EBT�in�€m
2009/10
33634
3474 31014
3214 3764 31044
� Increasing�demand�from�automotive�industry�and�restructuring�measures�delivering�positive�results
� All�5�operating�units�in�automotive�supply�industry�with�positive�earnings�contribution
� Further�restructuring�measures�initiated�
-chassis�components.
� Further�increase�in�order�intake�from�rings�and�large-diameter�bearings,�continuing�significant�profit�contribution
� Relatively�robust�European�automotive�markets�
despite�expiration�of�government�programs,�
robust�development�expected�for�USA�and�China
� First�positive�signs�of�recovery�in�construction�machinery due�to�low�inventory�levels�at�customers
EBT�adjustedEBT
Q2
63
Q2
1,2901,016 899 972
1,1691,337
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Heavy�CommercialVehicles
Earth-movingEquipment
Automotive Infrastructure�and�Energy
Presta�Camshafts
Presta�Steering
Bilstein-Gruppe
Forging�Group
Waupaca
Presta�Camshafts
Presta�Steering
Bilstein-Gruppe
Forging�Group
Waupaca
Forging�Group
Waupaca
Berco
Rothe�Erde
Rothe�Erde
Wind�EnergyEquipment
Plant�Technology�&�Components�Technology:Relevant�industries�behind�the�trough?
Passenger�Cars/�Light�Comm.�Veh.
Cement,Minerals,�Mining
Plant�Engineering
Chemical�Plants
System�Engineering
Time
Volume
Polysius
Fördertechnik
Uhde
Time
Volume
Plant�Technology Components�Technology
Time
Volume
Mar.2010
Time
Volume
Mar.2010
Time
Volume
Mar.2010
Time
Volume
Mar.2010Mar.2010 Mar.2010
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~100
Marine�Systems
Q2�2009/10�Highlights
Comments�Q2�3qoq4
Q1 Q2
Q3�
Q4
Q1
2008/09
Order�intake�in�€m
1,856
19333394
38404
Current�trading�conditions
2009/10
110
2008/09
Q1
Q2Q3�
Q4
Q1
333104
EBT�in�€m
2009/10
33434
31174 31274
~1,000~500
Impact�of�cancellations�container ships,mega yachts,submarinesGreece#
3474 3314 3454 354
EBT�adjustedEBT
Q2
374
8
Q2
139
� New�target�structure�-exit�from�civil�shipbuilding.�
close�to�completion
� Higher�earnings�in�Components/Service�business
� Negative�earnings�of�Hellenic�Shipyards�-HSY.�adjusted�as�
“special�items” due�to�non-going-concern�assumption
� Large�submarine�material�packages�order�for�
Turkey�signed�in�FY�2008/09,�effective�order�
intake�expected�within�FY�2009/10
� Losses�expected�in�surface�vessel�construction,�
caused�by�underutilization�until�closing�of�deals�
with�Abu�Dhabi�MAR
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80%
SIAG
50%ThyssenKrupp-Engineering.
20%�ThyssenKrupp
80%Abu�Dhabi�MAR
20%ThyssenKrupp
50%Abu�Dhabi�MAR
Mega Yachts�B+V
Shipyards#
NavalSubmarines
NavalSurface
Mega Yachts Container
Kockums HSY
100%ThyssenKrupp
-Engineering�&�Construction.
Submarines
Container
Blohm�+�Voss�Shipyards &�Services-BVSS.
Blohm�+�Voss�Nordseewerke-BVN.
Howaldtswerke Deutsche�Werft-HDW.�
HamburgHamburg�Kiel Emden
Marine�Systems:�Target�StructureExit�from�civil�shipbuilding;�focus�on�naval�engineering�and�submarines
SIAG
Service�B+VRepair#
Components�B+V
Industries#
100%Abu�Dhabi�
MAR
Abu�Dhabi�MAR�to�acquire�civil�shipbuilding�assets�of�former�HDW�Gaarden
Targeted workforce reduction of�60%�to�~�3,500�3from ~�8,300�as�of�Sep�30,�20084
Closed��Mar‘10# Signed��Apr‘10#
Signed��Apr‘10#
Framework�Agrm’tSigned��Mar‘10#
Developing the future.
PresentationThyssenKruppJuly2010
26
� Group�Performance and�Financials
� Business�Area�Performance
� Group�Outlook
Agenda
Developing the future.
PresentationThyssenKruppJuly2010
27
Outlook�FY�2009/10�– Return�to�Profitability
Low�three-digit�million�€ positive,incl.projectcosts,startuplosses,depreciationandinterestexpensesofAmericasprojects3mid-range�three-digit�million�€4
EBT�adjusted
Sales Moderate�stabilization
Significant�improvement�in�earnings,�despite�negative�impact�of�Americas�projects:����������������
EBIT�adjustedHigh�three-digit�million�€ positive,incl.projectcosts,startuplossesanddepreciationofAmericasprojects
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PresentationThyssenKruppJuly2010
28
Expectations�H2�2009/10�– Business�Areas
Steel�Europe
Significant�raw�materialprice�increases !
Steel�Americas
Start-up�losses�from�Americas�projects !
Stainless�Global
Stabilization�of�volumes,improving�prices
Materials�Services
Upside�from�volumes�and�prices
Elevator�Technology
Strength�in�modernization�and�services�business
Plant�Technology
Good�earnings�visibility
Components Technology
Relatively�robust�European�automotive�markets�despiteexpiration�of�government�programs
!
Marine�Systems
Increasing�underutilization�until�closing�of�M&A�transactions !
Developing the future.
PresentationThyssenKruppJuly2010
29
The Way�Forward�to�Sustainable Value Creation
LiquidityProfitability
EBT�>�0
Value 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�
� Startup�of�Steel�&�Stainless�Americas�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
Developing the future.
PresentationThyssenKruppJuly2010
30
Financial�Calendar�– FY�2009/10�and�FY�2010/11
� August Interim�Report�3rd�Quarter�2009/10Conference�Call�with�analysts�and�investors�-13th.ConferencesCommerzbank “Capital�Goods�Conference”,�Frankfurt�-26th.
� September ConferencesCredit�Suisse�“Capital�Goods�and�Aerospace�Conference”,�London�-15th.UBS�“Best�of�Germany�Conference”,�New�York�-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�311th4
� May Interim�Report�2nd�Quarter�2010/11�313th4
Phone:�+49�201�844-536464�
E-mail:�[email protected]
Internet:�www.thyssenkrupp.com
New�Contact�Details�as�of�June�21,�2010:
ThyssenKrupp�AG
ThyssenKrupp�Allee 1
45143�Essen�- Germany
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PresentationThyssenKruppJuly2010
31
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 -538830Head�of�Investor�Relations Senior�IR�Manager
Stefanie�Bensch -536480 Christian�Schulte -536966Assistant Senior�IR�Manager
Iris�aus der Wieschen -536367 Sabine�Berger -536420Team�assistant IR�Manager
Ute�Kaatz -536466 Klaudia Kelch -538371Event�Manager IR�Manager
Tim�Lange -536309IR�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.
PresentationThyssenKruppJuly2010
32
Appendix
Developing the future.
PresentationThyssenKruppJuly2010
33
� Premiumflatcarbonsteels
� Large-scale,multiplenicheapproach
� Long-termcustomerrelations
� Technologyleadershipinproductsandprocesses
� Premiumflatcarbonsteels
� CSA:slabmillinBrazil,5mtcapacity,SoP Q3CY2010
� SteelUSA:processingplant�hot/coldrollingandcoating#,midCY2010
� Stainlesssteelflatproducts&high-performancematerials
� OperationsinGermany,Italy,Mexico,China
� StainlesssteelplantprojectinUSA
� Globalmaterials distribution�carbon&stainlesssteel,pipes&tubes,nonferrousmetals,aluminum,plastics#
� Technical andinfrastructureservices for production &manufacturing sectors
� Elevators
� Escalators&movingwalks
� Passengerboardingbridges
� Stairlifts,homeelevator
� Maintenance,Repair&Modernization
� Specialtyandlarge-scaleplantconstruction,e.g.:
� Petrochemicalcomplexes
� Cementplants
� Systemsforopen-pitmining&materialshandling
� Components for theautomotive industry�e.g.crankshafts,axlemodules,steering systems#
� Large-diameter bearings &rings�e.g.for windenergy#
� Undercarriages for trackedearthmoving machinery
Focusonnaval shipbuilding:
� Engineering&Constructionofnon-nuclear submarines
� EngineeringofNavalSurface Vessels�fregates &corvettes#
Steel�Europe Steel�Americas Stainless�Global Materials�Services
ElevatorTechnology
Plant�Technology
ComponentsTechnology
MarineSystems
FY�2008/09:�Sales�€40.6�bn • EBT�€-2.36.�bn • TKVA�€-3.42.�bn • Employees�187,495
ThyssenKrupp*
ThyssenKrupp�Group:�New�Organizational Structure
*TheThyssenKruppGroupconsistsofmorethan800legallyindependentcompanies,organized,existingandoperatingunderthelaws of70countries,ultimatelyledbyThyssenKruppAG.
Developing the future.
PresentationThyssenKruppJuly2010
34
Group�Overview�-I.
ROCE�based on�3,�6,�9�and�12�months
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m 12,887 7,642 7,926 7,515 35,970 9,328 10,373
Sales €m 11,522 9,859 9,299 9,883 40,563 9,351 10,107
EBITDA €m 764 142 -180. -534. 192 808 700
EBIT� €m 407 -276. -597. -1,197. 31,6634 478 353
EBIT�adjusted €m 416 -112. -289. -390. 33754 402 368
EBT €m 240 -455. -772. -1,377. 32,3644 313 191
EBT�adjusted €m 249 -291. -464. -570. 31,0764 237 206
Net�income €m 163 -362. -630. -1,044. 31,8734 195 234
Earnings�per�share € 0.36 -0.71. -1.38. -2.28. 34.014 0.35 0.45
TK�Value�Added €m -39. -734. -1,030. -1,616. 33,4194 70 -67.
ROCE % 7.8 1.2 -3.0. -8.1. 38.14 10.0 8.5
Ø�Capital�Employed €m 21,025 21,270 20,975 20,662 20,662 19,193 19,483
Goodwill €m 3,846 3,942 3,927 3,902 3,902 3,830 3,920
2008/09 2009/10
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PresentationThyssenKruppJuly2010
35
Group�Overview�-II.
*�incl.�financial�investments
Q1 Q2 Q3 Q4 FY Q1 Q2
Capital�expenditures* €m 1,105 931 898 1,143 4,077 777 738
Depreciation/amort. €m 357 418 417 663 1,854 331 346
Operating�cash�flow €m -860. 1,483 1,331 1,745 3,699 -308. 184
�����Cash�flow�from�divestments €m 106 26 57 10 199 488 17
�����Cash�flow�from�investments €m -1,105. -931. -898. -1,143. 34,0774 -777. -738.
Free�cash�flow €m -1,859. 578 490 612 31794 -597. -537.
Cash�and�cash�
equivalents������������������������������-incl.�short-term�securities.
€m 3,439 3,820 5,235 5,545 5,545 5,073 4,614
Net�financial�debt €m 3,514 3,687 3,122 2,059 2,059 2,130 2,652
Employees� 197,175 192,521 188,501 187,495 187,495 174,763 172,576
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
36
~�1.8
~1.0
~0.8
1.5�– 2.0
~�1.3
Efficiency�Improvement�– Targeted�Sustainable�Cost�Savings
Targeted�sustainable�cost�savings�������������billion�€
�Based on�existingrestructuringmeasures/initiatives
�Excluding effectsfrom portfoliooptimization
FY�2008/09 FY�2010/11E
sustainable
Q2�2009/10
Realized�management�gains�billion�€
Developing the future.
PresentationThyssenKruppJuly2010
37
Development�of�operating�cash�flow�in�H1 million�€
Operating�Cash�Flow
Operatingcash�flow
677
D/A
Netincome
Deferred�taxes
429
31184
31654
31244
Change�in
accruedpensions
31284Others
Inventories
33284
Trade�accounts�receivable
35864
Trade�accounts�payable
116 33114
Other�provisions�
290
Other�assets/liabilities*
*�not�related�to�investing�or�financing�activities
1.
1.� Other�assets/liabilities�&�operating�cash�flow�in�Q1�restated�by €170mto�€-242.m�&�€-308.m�related�to�disposal�of�TKIN�and�Safway
1.
Developing the future.
PresentationThyssenKruppJuly2010
38
Net�Financial�Debt
Free�cash�flow:�31,1344
Capex*
Net�financialdebt
Sep�2009 Net�financialdebt
Mar�2010
32,6524
31,5154
Gearing25.5%
Operatingcash�flow
31244
32,0594
Gearing21.2%
505
Divestments
thereof:• Steel�Europe�������� 107
• Steel�Americas 902
thereof:TK�CSA� 425
NAFTA�Steel 477
• Stainless�Global 155����������
thereof:NAFTA�Stainless 104
• Materials�Services 110
• Elevator�Technology� 23
• Plant�Technology 11
• Components�Technology 115
• Marine�Systems 3
Others
Development�of�net�financial�debt in�H1 million�€
*�Capex for�property,�plant�&�equipment�+�financial�&�intangible�assets
680
Dividend
31394
1.� Divestments�&�operating�cash�flow�in�Q1�restated�by�€170mto�€488m�&�€-308.m�related�to�disposal�of�TKIN�and�Safway
1.
1.
Developing the future.
PresentationThyssenKruppJuly2010
39
Solid�Financial�Situation�– No�Short-Term�Refinancing�Needs
2nd�half2009/10
2010/11 2011/12 2012/13 2013/14 after2013/14
Available�committed�credit�facilities
Cash�and�cash�equivalents
451983
244
1,469
2,406
4,818
1,7134,614*
*�incl.�securities�of�€6�million
9,432
Total:�7,266
Liquidity�analysis�and�maturity�profile�of�gross�financial�debt�as�of�March�31,�2010 million�€
Developing the future.
PresentationThyssenKruppJuly2010
40
Pension�Obligations:�TK�with�Mature�Pension�Schemes
� Numberofplanparticipantssteadilydecreasing
� >70%ofobligationsowedtoretiredemployees,average age>75years
� Decliningpensionobligationsovertime�short-termvariationpossible,mainlyduetochangeindiscountrate#
� Decliningcash-outfrompensionbenefitpayments�2008/09:€578m;2010/11e:€555m#
Expected�Normalized*�Development�of�Accrued�Pension�and�Similar�Obligations��in€ m#
� “Patient” long-termdebt,noimmediateredemptioninonego
� Interestcostindependentofratings,covenantsetc.
� MainlyfundedbyTK’s operatingassets
� Vitalpartofcompensationsystem
Accrued pensionliability
Accruedpostretirement oblig.other than pensions
Other accruedpension-relatedobligations
6,193
1,137
362
7,692
Accrued�Pension�and�Similar�Obligations�Mar31,2010;in€ m#
7,537
08/09 09/10 10/11 11/12 12/13 13/14 …
- 100-200�p.a.
*Assumption:unchangeddiscountrate
Developing the future.
PresentationThyssenKruppJuly2010
41
Long�term- Short�term- Outlookrating rating
Standard�&�Poor’s BB+ B stable
Moody’s Baa3 Prime-3 negative
Fitch BBB- F3 negative
Restoring�/�maintaining�investment�grade�status
with�all�three�rating�agencies�is�key!
ThyssenKrupp�Rating
Developing the future.
PresentationThyssenKruppJuly2010
42
Steel�Europe:�Overview
ROCE�based on�3,�6,�9�and�12�months
Steel�Europe
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m 1,866 1,479 2,223 2,324 7,892 2,500 2,999
Sales €m 2,848 2,326 2,151 2,245 9,570 2,281 2,667
EBITDA €m 518 277 -147. -161. 487 275 327
EBIT €m 362 128 -296. -328. 31344 126 179
EBIT�adjusted €m 371 131 -156. -262. 84 126 179
EBT €m 345 109 -312. -339. 31974 104 163
EBT�adjusted €m 354 112 -172. -273. 21 104 163
TK�Value�Added €m 231 -13. -431. -449. 36624 14 62
ROCE % 24.9 16.3 4.3 -2.3. 32.34 10.1 12.0
Ø�Capital�Employed €m 5,816 6,023 6,039 5,864 5,864 4,989 5,089
OCF €m -790. 279 576 588 653 -123. 235
�����CF�from�divestments €m 1 14 -9. 180 184 3 -1.
�����CF�for�investments €m -102. -125. -103. -106. 34364 -39. -68.
FCF €m -893. 168 465 661 401 -159. 166
38,048 37,380 36,607 36,416 36,416 35,582 34,872Employees��
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
43
0.0
0.5
1.0
1.5
2.0
2.5
3.0
J'0
5
J'0
6
J'0
7
J'0
8
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9
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0
1
2
3
4
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9
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9
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0
A�1
0
InventoriesChina
Inventories�and�Months�of�Supply�- Europe
Inventories�and�Months�of�Supply�- USA
Steel:�Inventories�and�Months�of�Supply
Source�s#:TKS,EASSC,CreditSuisse,MSCI,UBS,MySteel
Europe:EuropeanSSC:Inventories atmonth end/flat carbon steel w/oquarto
InventoriesMm�tN
MOSMmonthsN
USA:AprilMSCIinventories,carbon flat-rolled
InventoriesMm�stN
MOSMmonthsN
China:flat steelinventoryin23majorcities�HR,CRandPlate#
InventoriesMm�tN
Developing the future.
PresentationThyssenKruppJuly2010
44
� Sustained�economies�of�scale�in�the��metallurgical�process
� Excellent�plant�configuration�with�highest�technology�standards
� Optimum�specialization�and�logistics�of�downstream�operations
� Short�distances�to�key�customers
Unique�Steel�Site�Configuration�in�Europe:�17�m�tpy Capacity�in�one�City
21 %41 %
38 %
59 %
18 %
23 %
250�km
500�km
>�500�km
Sales�volume
Customers
Duisburg
Multiple
Niches
Large
Scale
Developing the future.
PresentationThyssenKruppJuly2010
45
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%ofsales
6
8
12
33
11
45
15
6
TailoredBlanks Construction
Elements
ElectricalSteel
Medium-wide�Strip
Hot�Strip
Tinplate
Coated�Products3HDG,�EG,�Color4
Cold�Strip
Heavy�Plate
Multiple
Niches
Large
ScaleRevenues/t €/t
*# excl.MetalForming
2004 200820062005 20092007
BA�Steel�Europe*.
majorEuropean
competitors
Developing the future.
PresentationThyssenKruppJuly2010
46
Construction
Sales�by�Maturity�FY�2008/09 in�%
Sales�by�Industry�FY�2008/09 in�%
33
4
2216
9
11
5
Quarterly
Half-yearAnnual�&>1�year
Spot
6510
15
10
Long�Term�Customer�Relations�Establish�Lower�Volatility
Others Automotive�industry�3incl.�suppliers4
Packaging
Trade
Mechanical�Engineering
Steel�and�steel-related�processing
Price�index hot�rolled Index�-Q3�1997�=�100.
60
80
100
120
140
160
180
200
220
240
260
Alldataincl.Q12010Sources:CRUandowncalculationsbasedonCRU,TKSE
CRU
ThyssenKruppSteel�Europe
ThyssenKrupp�Steel�Europe�3external sales4�
German�market 3CRU4
98 00 02 04 06 08 10
Developing the future.
PresentationThyssenKruppJuly2010
47
Steel�Americas:�Overview
ROCE�based on�3,�6,�9�and�12�months
Steel�Americas
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m 0 0 0 0 0 0 23
Sales €m 0 0 0 0 0 0 23
EBITDA €m -40. 0 10 -43. 3734 38 8
EBIT €m -42. 0 9 -44. 3774 37 7
EBIT�adjusted €m -42. 0 9 -44. 3774 37 7
EBT €m -76. -22. -19. -99. 32164 -4. -32.
EBT�adjusted €m -76. -22. -19. -99. 32164 -4. -32.
TK�Value�Added €m -102. -73. -73. -141. 33894 -80. -125.
ROCE % -6.2. -2.8. -1.4. -2.2. 32.24 2.8 1.6
Ø�Capital�Employed €m 2,698 2,960 3,184 3,475 3,475 5,219 5,527
OCF €m -39. -55. 15 69 3104 -171. -93.
�����CF�from�divestments €m 0 0 19 -1. 19 2 1
�����CF�for�investments €m -610. -435. -483. -608. 32,1354 -455. -448.
FCF €m -649. -490. -448. -540. 32,1264 -624. -539.
1,263 1,529 1,590 1,659 1,659 1,794 2,256Employees��
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
48
Steel�Americas�– ThyssenKrupp�CSA
Melt shop Blast�furnaces Power�plantSinter�plant
GasometerGasometer
Developing the future.
PresentationThyssenKruppJuly2010
49
Steel�Americas�– ThyssenKrupp�Steel�USA
Hot-rolling mill
Developing the future.
PresentationThyssenKruppJuly2010
50
Stainless�Global:�Overview
ROCE�based on�3,�6,�9�and�12�months
Stainless�Global
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m 967 818 1,207 1,155 4,147 943 1,560
Sales €m 1,173 988 1,030 1,295 4,486 1,210 1,461
EBITDA €m -189. -251. -98. -62. 36004 -3. -61.
EBIT €m -228. -351. -185. -100. 38644 -41. -102.
EBIT�adjusted €m -228. -291. -139. -55. 37134 -41. -102.
EBT €m -243. -367. -202. -114. 39264 -59. -117.
EBT�adjusted €m -243. -307. -156. -69. 37754 -59. -117.
TK�Value�Added €m -310. -428. -254. -164. 31,1564 -104. -166.
ROCE % -25.1. -32.7. -30.2. -26.7. 326.74 -5.9. -10.2.
Ø�Capital�Employed €m 3,636 3,542 3,376 3,240 3,240 2,804 2,815
OCF €m -319. 262 122 183 248 -100. 88
�����CF�from�divestments €m 2 3 4 -2. 7 0 1
�����CF�for�investments €m -92. -47. -79. -125. 33434 -68. -87.
FCF €m -409. 218 47 56 3884 -168. 3
12,167 12,079 11,869 11,755 11,755 11,597 11,235Employees��
2008/09 2009/10
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PresentationThyssenKruppJuly2010
51
Stainless�Global:�Price�Development and�Import�Situation
25.3
42.344.644.5
25.4
41.539.338.8
22.219.9
36.0
51.9
41.9
21.5
2005
2006
2007
2008
2009
Jul
Aug
Sep
Oct
Nov
Dec
Jan�1
0
Feb
Mar
Asia Americas Others
Price�development:�recovery�gaining�sustainability Cold-rolled imports from third countries Q000t/MonthR
Regional�price development*
0
2,000
4,000
6,000
8,000
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 May-10
China
USA
Europe
*AISI304�1.4301#CRFlat,2mmSource:CRUJun2010�EU+USA#,SL-SKSMay2010�WuxiMarketpricesCHINA#
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Jan-06
Jul Jan-07
Jul Jan-08
Jul Jan-09
Jul Jan-10
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
*�Base PriceGermany,Traders/SSC,304,2mmsheetSource:CRUJune2010,Metalprices�NICKEL#June2010
EUR/t US$/t
Base�Price�EU*
Alloy�Surcharge�EU
Nickel
Source:Eurofer May2010,SL-NRVV-BDG
May
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52
Stainless:�Inventories and�Stock�Reach
0
20
40
60
80
100
120
140
160
Jan-06 Jul Jan-07 Jul Jan-08 Jul Jan-09 Jul Apr-10
Stock�Level
Stock�Reach
0
20
40
60
80
100
120
140
160
Jan-06 Jul Jan-07 Jul Jan-08 Jul Jan-09 Jul Apr-10
Stock�Level
Stock�Reach
Germany�3cold-rolled products4 USA�3hot- and�cold-rolled products all�shapes4
Source:MSCIMay2010
Stock�level:�INDEX�Jan�2005�=�100Stock�Reach:�Calendar Days
Average�Stock�Reach
Stock�level:�INDEX�Jan�2005�=�100Stock�Reach:�Calendar Days
Average�Stock�Reach
Source:EHVMay2010
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PresentationThyssenKruppJuly2010
53
Stainless�Steel�Contract�Structure
0% 10% 20% 30% 40% 50%
Short�Term�Contracts�<0.5�year�
Medium�Term�Contracts�0.5�– 1�year�
Long�Term�Contracts�>�1�year� 30%
30%
40%
basedonThyssenKruppNirostaShipments2008/09
Nickel�Alloy�Sales�by�Customer�Group
Increasing Non-Volatile Customer BasesSales�structure within ThyssenKrupp�Stainless
basedonshipments,FY2008/09
Others
SSC/Trading
Tubes
Automotive
Household�Applications
Metal�Processing
53
107411
7
White�Goods8
Distribution
Oil/�Gas
Aerospace/Turbines
Electronics
Chemical/Energy
Automotive
basedonnetsales,FY2008/09
8 6
22
2018
26
Stainless�Steel�Sales�by�Customer�Group
Developing the future.
PresentationThyssenKruppJuly2010
54
Materials�Services:�Overview
ROCE�based on�3,�6,�9�and�12�months
Materials�Services
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m 4,016 2,719 2,469 2,881 12,085 2,681 3,059
Sales €m 3,995 3,109 2,751 2,960 12,815 2,760 2,881
EBITDA €m 100 -46. -64. -28. 3384 168 103
EBIT €m 54 -88. -106. -71. 32114 129 70
EBIT�adjusted €m 54 -88. -106. 1 31394 48 70
EBT €m 30 -106. -128. -91. 32954 112 60
EBT�adjusted €m 30 -106. -128. -19. 32234 31 60
TK�Value�Added €m -37. -178. -189. -142. 35464 64 7
ROCE % 5.0 -1.6. -4.5. -5.3. 35.34 16.7 13.2
Ø�Capital�Employed €m 4,290 4,257 4,133 3,943 3,943 3,081 3,006
OCF €m -202. 197 390 569 953 -82. -102.
�����CF�from�divestments €m 38 10 11 3 62 308 3
�����CF�for�investments €m -70. -59. -50. -100. 32794 -90. -20.
FCF €m -234. 147 352 470 735 136 -118.
46,367 45,674 44,744 44,316 44,316 31,972 31,482Employees��
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
55
Elevator�Technology:�Overview
ROCE�based on�3,�6,�9�and�12�months
Elevator�Technology
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m 1,562 1,189 1,186 1,101 5,038 1,230 1,215
Sales €m 1,343 1,293 1,328 1,344 5,308 1,226 1,221
EBITDA €m 174 165 183 118 640 171 168
EBIT� €m 157 149 168 96 570 154 151
EBIT�adjusted €m 157 149 168 124 598 154 151
EBT €m 159 149 166 96 570 155 153
EBT�adjusted €m 159 149 166 124 598 155 153
TK�Value�Added €m 125 116 137 68 446 127 123
ROCE % 38.3 37.4 39.6 36.7 36.7 45.0 44.7
Ø�Capital�Employed €m 1,646 1,639 1,596 1,554 1,554 1,371 1,364
OCF €m 75 289 170 220 754 87 238
�����CF�from�divestments €m 10 4 2 3 19 3 -1.
�����CF�for�investments €m -33. -37. -17. -48. 31354 -15. -8.
FCF €m 52 256 155 175 638 75 229
43,599 43,306 42,761 42,698 42,698 42,926 42,787Employees��
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
56
Fundamental�Trends�for�Demand�in�the�Elevator�Industry
Urbanization Aging�Safety/
Energy�efficiencyPopulationGrowth
More�people�demand�for�safe�transportation�within�a�building
1 2 3 4
1950 1980 2010 20501950 1980 2010 2050 1950 1980 2010 2050
Source:UnitedNations
People People People�60+
2.5�bn 9.1�bn 0.7�bn 6.3�bn 0.2�bn 2.0�bn SNEL�Regulation�*
*Safety NormofExisting Lifts
Developing the future.
PresentationThyssenKruppJuly2010
57
Infrastructure Projects�Provide Growth�Opportunities
BJ
CSWH
CQCD
QDJN
SY
DL
HF
XMKM
HN
ZS�Plant
NB
GY
NC
Urumqi
ZS�Escalator�Plant
SH�SJ�Plant
HRB
TJ
YT
GZDG
FZ
ZS�SZ�
SH
NN
HZ
NJ SZX’A
ZZ
HQ�-SH
Projects�in�China Projects�in�India
Guwahati
Jamshedp
ur
Bhubaneswar
Patn
a
Luckno
w
Chandigar
h
Jaipu
r
Madhya
Pradesh Chhatisga
rh
Ranch
i
Goa
Hyderabad
Madura
i
Coimbatore Pondicherr
y
Gujrat
Mangalo
reMysore
Hubli
Cochi
n
Calicut
Trivandrum
Gurgao
n
AirportsRailwayStations
SubwaySystems
Number ofprojects ~100 >100 ~100
AirportsRailwayStations
SubwaySystems
Number ofprojects ~100 >400 ~200
Developing the future.
PresentationThyssenKruppJuly2010
58
Plant�Technology:�Overview
Plant�Technology
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m 1,751 517 807 463 3,538 1,324 824
Sales €m 1,078 1,187 1,101 1,084 4,450 954 940
EBITDA €m 81 66 58 1 206 90 67
EBIT €m 72 57 49 -15. 163 82 59
EBIT�adjusted €m 72 62 50 24 208 82 59
EBT €m 99 74 65 -2. 236 95 73
EBT�adjusted €m 99 79 66 37 281 95 73
Ø�Capital�Employed €m -1,054. -1,048. -1,035. -1,034. 31,0344 -1,132. -1,177.
OCF €m 74 80 -52. 152 254 114 161
�����CF�from�divestments €m 1 0 0 0 1 0 0
�����CF�for�investments €m -20. -15. -8. -18. 3614 -5. -6.
FCF €m 55 65 -60. 135 195 109 155
13,416 13,186 13,062 13,043 13,043 12,977 12,934Employees��
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
59
Plant�Technology:�Technology�Portfolio�Offering Growth�Potential
OU
Polysius
Förder-technik
Uhde
Technologies Market�Positions
Gas&OilRefining
Biotechnology
Gasification
Coke PlantTechnologies
Electrolysis
HandlingProcessingHandlingMining
Mining�and�MaterialsHandlingEquipment:� No.1
Cementplants: No.3
Conversion Technologies Customer Products
Fertilizers,Org.Chemicals &Polymers
Biopolymers
ElectricPower;Fuel
Steel
Inorganic &Organic Chemicals
Raw materialpreparation Clinker production Cement manufacturing
Fertilizers:� No.1Polymers:� No.2
Coke Plant�Tech.:� No.1
Electrolysis:� No.1
Developing the future.
PresentationThyssenKruppJuly2010
60
0
50
100
150
200
250
300
350
400
Coal Copper Gold Iron�Ore�Spot
0
200
400
600
800
1,000
1,200
1,400Caustic�Soda PVC Ethylene
0
100
200
300
400
500
600
700
800
900Ammonia Urea
0
20
40
60
80
100
120
140
160
2003 2004 2007 2008 2009E 2010E 2011E 2012E 2015E
Plant�Technology:�Recovery�of�Relevant�End�Products�&�Markets
Chemical�plant�engineering:�Petrochemical�plants�Pricedevelopmentselectedpetrochemicalproducts �€/t#
Chemical�plant�engineering:�Fertilizer�plants�Pricedevelopmentselectedfertilizerprecursors �US$/t#
Minerals�and�mining�equipment:Pricedevelopmentselectedrawmaterials�indexed;Jan2006=100#
Capital�expenditure�for�global�mining�������������������US$bn,realterms#
Source:McKinseyBasicMaterialsInstitute,SIMminingcapex model,April2009
Sources:CMAIChlor-AlkaliMarketReport,EuropeanChemicalNews Source:Fertilizer Week
2007 2008 2009 2007 2008 2009
2007 2008 20092006Sources:IMF,Kitco
20102010
2010
Developing the future.
PresentationThyssenKruppJuly2010
61
Components�Technology:�Overview
ROCE�based on�3,�6,�9�and�12�months;�calculation with the higher of�average equity and�average capital employed
Components�Technology
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m 1,290 1,016 899 972 4,177 1,169 1,337
Sales €m 1,299 1,100 1,063 1,141 4,603 1,237 1,344
EBITDA €m 137 37 -6. -133. 35 124 143
EBIT� €m 66 -33. -85. -344. 33964 57 73
EBIT�adjusted €m 66 -7. -60. -85. 3864 57 73
EBT� €m 53 -47. -101. -363. 34584 43 63
EBT�adjusted €m 53 -21. -76. -104. 31484 43 63
TK�Value�Added €m -1. -105. -155. -406. 36674 -1. 13
ROCE % 8.9 2.1 -2.6. -13.7. 313.74 8.9 9.9
Ø�Capital�Employed €m 2,996 3,086 3,089 3,011 3,011 2,584 2,614
OCF €m -70. 48 176 228 382 70 80
�����CF�from�divestments €m 10 33 15 225 283 2 9
�����CF�for�investments €m -141. -155. -125. -119. 35404 -64. -51.
FCF €m -201. -74. 67 332 124 8 38
31,418 29,223 27,963 27,973 27,973 27,997 27,894Employees��
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
62
South�America
• Idling�of�production�lines�for�crankshaft�production�as�of�Dec�2009
North�America
• Closure�of�crankshaft�plant
• Idling�of�plant�for�gray�iron�castings�as�of�Dec�2009
• Closure�of�two�production�plants�for�steering�components�in�Q2�2009/10
Europe
• Closure�of�crankshafts�production�site�as�of�Oct�2009
• Closure�of�two�additional�crankshaft�production�lines�until�mid�2010
• Closure�of�crankshaft�machining�plant�in�process
• Q2�2009/10:�Announcement�closure�of�German�plant�for�chassis�components
� End�of�production�in�10�plants�and�several�production�lines
� Further�restructuring�measures�under�review
Components�Technology:�Restructuring�Measures�Well�on�Track�
Developing the future.
PresentationThyssenKruppJuly2010
63
Components�Technology:Participating�in�pioneering�project�for�offshore�wind�technology
OFFSHORE�WIND�FARM�„ALPHA�VENTUS“ PARTICIPATION�COMPONENTS�TECHNOLOGY
� Germany’sfirstoffshorewindfarm
� 45kmawayfromcoastinwaters30mdeep
� Comprises12windturbinesof5MWclass
� Expectedenergyyieldp.a.:ca.220GWh�=energyconsumptionof~50,000households#
Technical�data�wind�turbine�“Multibrid M5000”
� Rotordiameter:116m
� Totalheightaboveseabed:178m
� Bladetipspeed:90m/s �=300km/h#
� Weightofsteelintripod,tower,nacelle:1,000t
� Single-sourcesupplierfor6“Multibrid M5000” windturbines:
� 6yawbearings
� Each4.0tweight,4.2mdiameter
� 6pitchbearings
� Each4.5tweight,3.6mdiameter
Strong�growth�potential�for�offshore�wind�energy�in�Germany:�Capacity�expected�to�grow�from�12�MW�in�2008�to�30,000�MW�in�2030
Developing the future.
PresentationThyssenKruppJuly2010
64
Marine�Systems:�Overview
Marine�Systems
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m 1,856 193 -339. -840. 870 110 139
Sales €m 546 371 321 356 1,594 254 287
EBITDA €m 42 -90. -93. -178. 33194 -1. 11
EBIT�� €m 32 -115. -123. -337. 35434 -6. -4.
EBIT�adjusted €m 32 -45. -27. -39. 3794 -1. 11
EBT� €m 33 -117. -127. -343. 35544 -10. -7.
EBT�adjusted €m 33 -47. -31. -45. 3904 -5. 8
Ø�Capital�Employed €m 430 449 420 379 379 245 232
OCF €m -168. 169 -50. -179. 32284 -124. 145
�����CF�from�divestments €m 2 8 21 1 32 0 3
�����CF�for�investments €m -12. -165. -19. 0 31964 -1. -2.
FCF €m -179. 12 -47. -178. 33924 -126. 147
8,319 8,305 8,057 7,770 7,770 7,593 6,669Employees��
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
65
Corporate/Consolidation:�Overview
Corporate/Consolidation
Q1 Q2 Q3 Q4 FY Q1 Q2
Order�intake €m -421. -289. -526. -541. 31,7774 -629. -783.
Sales €m -760. -515. -446. -542. 32,2634 -571. -717.
EBITDA €m -59. -16. -23. -48. 31464 -54. -66.
EBIT� €m -66. -23. -28. -54. 31714 -60. -80.
EBT €m -160. -128. -114. -122. 35244 -123. -165.
OCF €m 579 214 -16. -85. 693 21 -568.
2,578 1,839 1,848 1,865 1,865 2,325 2,447Employees�-Corporate.
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
66
Business�Area�Overview�– Quarterly�Order�Intake
million�€ Q1 Q2 Q3 Q4 FY Q1 Q2
Steel�Europe 1,866 1,479 2,223 2,324 7,892 2,500 2,999
Steel�Americas 0 0 0 0 0 0 23
Stainless�Global 967 818 1,207 1,155 4,147 943 1,560
Materials�Services 4,016 2,719 2,469 2,881 12,085 2,681 3,059
Elevator�Technology 1,562 1,189 1,186 1,101 5,038 1,230 1,215
Plant�Technology 1,751 517 807 463 3,538 1,324 824
Components�Technology 1,290 1,016 899 972 4,177 1,169 1,337
Marine�Systems 1,856 193 -339. -840. 870 110 139
Corporate 34 26 22 45 127 31 31
Consolidation -455. -315. -548. -586. 31,9044 -660. -814.
Group 12,887 7,642 7,926 7,515 35,970 9,328 10,373
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
67
Business�Area�Overview�– Quarterly�Sales
million�€ Q1 Q2 Q3 Q4 FY Q1 Q2
Steel�Europe 2,848 2,326 2,151 2,245 9,570 2,281 2,667
Steel�Americas 0 0 0 0 0 0 23
Stainless�Global 1,173 988 1,030 1,295 4,486 1,210 1,461
Materials�Services 3,995 3,109 2,751 2,960 12,815 2,760 2,881
Elevator�Technology 1,343 1,293 1,328 1,344 5,308 1,226 1,221
Plant�Technology 1,078 1,187 1,101 1,084 4,450 954 940
Components�Technology 1,299 1,100 1,063 1,141 4,603 1,237 1,344
Marine�Systems 546 371 321 356 1,594 254 287
Corporate 34 26 22 45 127 31 31
Consolidation -794. -541. -468. -587. 32,3904 -602. -748.
Group 11,522 9,859 9,299 9,883 40,563 9,351 10,107
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
68
Business�Area�Overview�– Quarterly�EBITDA
million�€ Q1 Q2 Q3 Q4 FY Q1 Q2
Steel�Europe 518 277 -147. -161. 487 275 327
Steel�Americas -40. 0 10 -43. 3734 38 8
Stainless�Global -189. -251. -98. -62. 36004 -3. -61.
Materials�Services 100 -46. -64. -28. 3384 168 103
Elevator�Technology 174 165 183 118 640 171 168
Plant�Technology 81 66 58 1 206 90 67
Components�Technology 137 37 -6. -133. 35 124 143
Marine�Systems 42 -90. -93. -178. 33194 -1. 11
Corporate -54. -28. -37. -32. 31514 -52. -55.
Consolidation -5. 12 14 -16. 5 -2. -11.
Group 764 142 31804 35344 192 808 700
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
69
Business�Area�Overview�– Quarterly�EBIT
million�€ Q1 Q2 Q3 Q4 FY Q1 Q2
Steel�Europe 362 128 -296. -328. 31344 126 179
adjusted 371 131 -156. -262. 84 126 179
Steel�Americas -42. 0 9 -44. 3774 37 7
adjusted -42. 0 9 -44. 3774 37 7
Stainless�Global -228. -351. -185. -100. 38644 -41. -102.
adjusted -228. -291. -139. -55. 37134 -41. -102.
Materials�Services 54 -88. -106. -71. 32114 129 70
adjusted 54 -88. -106. 1 31394 48 70
Elevator�Technology 157 149 168 96 570 154 151
adjusted 157 149 168 124 598 154 151
Plant�Technology 72 57 49 -15. 163 82 59
adjusted 72 62 50 24 208 82 59
Components�Technology 66 -33. -85. -344. 33964 57 73
adjusted 66 -7. -60. -85. 3864 57 73
Marine�Systems 32 -115. -123. -337. 35434 -6. -4.
adjusted 32 -45. -27. -39. 3794 -1. 11
Corporate -60. -36. -45. -40. 31814 -59. -68.
Consolidation -6. 13 17 -14. 10 -1. -12.
Group 407 32764 35974 31,1974 31,6634 478 353
adjusted 416 31124 32894 33904 33754 402 368
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
70
Business�Area�Overview�– Quarterly�EBT
million�€ Q1 Q2 Q3 Q4 FY Q1 Q2
Steel�Europe 345 109 -312. -339. 31974 104 163
adjusted 354 112 -172. -273. 21 104 163
Steel�Americas -76. -22. -19. -99. 32164 -4. -32.
adjusted -76. -22. -19. -99. 32164 -4. -32.
Stainless�Global -243. -367. -202. -114. 39264 -59. -117.
adjusted -243. -307. -156. -69. 37754 -59. -117.
Materials�Services 30 -106. -128. -91. 32954 112 60
adjusted 30 -106. -128. -19. 32234 31 60
Elevator�Technology 159 149 166 96 570 155 153
adjusted 159 149 166 124 598 155 153
Plant�Technology 99 74 65 -2. 236 95 73
adjusted 99 79 66 37 281 95 73
Components�Technology 53 -47. -101. -363. 34584 43 63
adjusted 53 -21. -76. -104. 31484 43 63
Marine�Systems 33 -117. -127. -343. 35544 -10. -7.
adjusted 33 -47. -31. -45. 3904 -5. 8
Corporate -155. -141. -131. -107. 35344 -121. -154.
Consolidation -5. 13 17 -15. 10 -2. -11.
Group 240 34554 37724 31,3774 32,3644 313 191
adjusted 249 32914 34644 35704 31,0764 237 206
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
71
Business�Area�Overview�– Quarterly�Operating�Cash�Flow
million�€ Q1 Q2 Q3 Q4 FY Q1 Q2
Steel�Europe -790. 279 576 588 653 -123. 235
Steel�Americas -39. -55. 15 69 3104 -171. -93.
Stainless�Global -319. 262 122 183 248 -100. 88
Materials�Services -202. 197 390 569 953 -82. -102.
Elevator�Technology 75 289 170 220 754 87 238
Plant�Technology 74 80 -52. 152 254 114 161
Components�Technology -70. 48 176 228 382 70 80
Marine�Systems -168. 169 -50. -179. 32284 -124. 145
Corp./Cons. 579 214 -16. -85. 693 21 -568.
Group 860 1,483 1,331 1,745 3,699 33084 184
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
72
Q1 Q2 Q3 Q4 FY Q1 Q2
Steel�Europe:
Restructuring�Metal�Forming -9. -3. -10. -38. 3604
Restructuring�TK�Steel -125. -1. 31264
Restructuring�Color/Construction -5. -18. 3234
Impairment�Metal�Forming -6. 364
Impairment�Color/Construction -3. 334
Stainless�Global:
Restructuring�Nirosta -46. 3464
Impairment�SKS -60. 1 3594
Impairment�Nirosta -46. 3464
Materials�Services:
Restructuring�Metals�Germany -57. 3574
Restructuring�Western�Europe -6. 364
Restructuring�Plastics�Services -9. 394
Disposal�Gain�TKIN�and�Safway 81
Elevator�Technology:
Restructuring�Fahrtreppen�Hamburg -25. 3254
Impairment�Fahrtstreppen�Hamburg -3. 334
Business�Area
2008/09 2009/10
Special�Items�-I.
Developing the future.
PresentationThyssenKruppJuly2010
73
Special�Items�-II.
Q1 Q2 Q3 Q4 FY Q1 Q2
Plant�Technology:
Restructuring�System�Engineering -1. -22. 3234
Restructuring�Transrapid -5. -10. 3154
Impairment�Transrapid -7. 374
Components�Technology:
Restructuring�Forging�Group -19. -12. -97. 31284
Restructuring�Bilstein -2. -5. -12. 3194
Restructuring�Presta�Steering -2. -2. -9. 3134
Restructuring�Waupaca -3. 334
Impairment�Forging�Group -2. -35. 3374
Impairment�Bilstein -22. 3224
Impairment�Presta�Steering -1. -8. -5. 3144
Impairment�Waupaca -76. 3764
Divestment�Bilstein 2 2
Marine�Systems:
Restructuring�Marine�Systems -25. -78. -124. 32274
Impairment�Marine�Systems -14. -19. -174. 32074
Divestment�Nobiskrug -31. 1 3304
Hellenic�Shipyards -5. -15.
Business�Area
2008/09 2009/10
Developing the future.
PresentationThyssenKruppJuly2010
74
Source:ThyssenKruppShareholderID03/2010,ThyssenKruppAGMregistrations
Shareholder�Structure – by Region
Germany� 61.26%
-incl.�AKBH-Foundation 25.33%.
Treasury�Shares 9.84%
Rest�of�World 0.80%
Europe 8.70%
UK/Ireland 9.40%
North�America 10.00%