PresentationThyssenKruppGroup December2009€¦ · FY 2008/09: Sales €40.6 bn•EBT €!2.36#...
Transcript of PresentationThyssenKruppGroup December2009€¦ · FY 2008/09: Sales €40.6 bn•EBT €!2.36#...
PresentationThyssenKruppGroup
December2009
0
PresentationThyssenKruppGroup
December2009
1
SteelEurope
SteelAmericas
StainlessGlobal
MaterialsServices
ElevatorTechnology
Plant�Technology
ComponentsTechnology
MarineSystems
Reorganization
� Strategically�centralized�and�operationally�decentralized
� Greater�internal�and�external�transparency
Elevator
Sales €5.3bn
EBT €558m
Steel
Umsatz €14.4bn
EBT €1,540m
Technologies
Sales €10.6bn
EBT €(868)m
Materials Technologies
ThyssenKrupp�AG(from October 1,2009)
Stainless
Umsatz €7.4bn
EBT €126m
Services
Sales €11.9bn
EBT €(271)m
(Inter-segment sales not consolidated)
FY�2008/09:�Sales�€40.6�bn • EBT�€!2.36#�bn • TKVA�€!3.42#�bn • Employees�187,495
ThyssenKrupp�AG
ThyssenKrupp�Business�Services
ThyssenKrupp�GroupNew�organizational structure
Steel
Sales €9.9bn
EBT €(486)m
Stainless
Sales €4.5bn
EBT €(946)m
PresentationThyssenKruppGroup
December2009
2
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.”
PresentationThyssenKruppGroup
December2009
3
Highlights�FY�2008/09
� Acceleration�of�management�measures�in
Efficiency�– Projects�– Portfolio
� Major�cost�reduction�initiated:
� Reduction�of�structural�overcapacities�across�all�segments
� Restructuring�and�impairment�charges�of�€1,387�m�booked
� Three�consecutive�quarters�with�positive�free�cash�flow�
� Net�debt�€2.06�bn
� Return�to�profitability�in�FY�2009/10
� Dividend�proposal�of�€0.30�per�share
PresentationThyssenKruppGroup
December2009
4
� Financial�Achievements�and�Group�Performance
� Measures:�Efficiency�Improvement�and�Portfolio�Optimization�
� Segment�Performance
� Outlook�for�Group�and�Business�Areas
Agenda
PresentationThyssenKruppGroup
December2009
5
Restoring�Basis�for�Future�Value�Creation
Reducing�Complexity�and�Risk
Efficiency
Strengthening�Liquidity�and�Balance�Sheet
Focus�on�Accelerated�Realization�of�Liquidity�and�Value�Potentials
Projects Portfolio
� TK�PLuS:
� €1.8�bn mgmt�gains
� €3.6�bn NWC�release
� < €4.3�bn Capex
� NeO:
� effective�October�1st
� Restructuring�&�Impairments:
� €1.4�bn
Debt�Financing
� €3.7�bnin�2008/09
Equity�Financing
� Adjustment�of�Industrial�Concepts:
� CSA� Steel�USA� Stainless�USA
� cash-driven� market-oriented� maximum�flexibility
� CSA�/�Vale
� Industrial�Services
� TKIN
� Safway
� Xervon stopped
� Marine�Systems
� exit�white�area
� reduction�utilizationrisk�gray�area
� €1.4�bnCSA�/�Vale
PresentationThyssenKruppGroup
December2009
6
EBT�before�major�nonrecurring�items million�€
FY:��inventory writedownsand�windfall losses€1,154�m
thereof 1€m2:
Q1 Q2 Q3 Q4
Steel 0 33 47 210
Stainl. 264 151 !9# 23
Techn. 6 32 22 35
Elevator 1 0 0 6
Services 67 137 118 11
Earnings�Before�Taxes�
EBT�as�reported� million�€
2008/09
Q1 Q2 FY
2007/08
Q1 Q2 FY
2008/09
Q1 Q2 Q3
2007/08
Q1 Q2 Q3
646
742
3,128
240!455#
!1,377#
333 !283#
!452#
715
784
1,073
!772#
Q3
Q3
909
!332#
Q4
FY
917
Q4
831
Q4
!2,364#
FY
!734#
Q4
3,489
PresentationThyssenKruppGroup
December2009
7
Segment�Overview�– Quarterly�EBT
million�€ Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Steel 353 396 389 402 1,540 251 56 !348# 14452 14862
Stainless !45# 38 93 40 126 !249# !373# !204# 11202 19462
Technologies 179 186 201 175 741 164 !105# !187# 17402 18682
Elevator 119 90 92 133 434 156 146 163 93 558
Services 132 135 248 235 750 30 !78# !123# 11002 12712
Corporate !84# !97# !110# !126# 14172 !108# !103# !87# 1462 13442
Consolidation !8# !6# !4# !28# 1462 !4# 2 14 1192 172
Group 646 742 909 831 3,128 240 14552 17722 11,3772 12,3642
!87# 1332 13312!126# 14172 !108# !103#
2008/09
13322
162
17492
1572
592
17342
12442
1452
1972
42 96 48 144before�major�nonrec.�items
Group�before�major�nonrec.�items
715
!42#
before�major�nonrec.�items
before�major�nonrec.�items 132
before�major�nonrec.�items !84#
179 179 710
123
333
139 460
917 3,489 14522
!111#
2007/08
before�major�nonrec.�items 419 462 534 470 1,885
before�major�nonrec.�items 119 90 112
197
784 1,073
135 248
155
!97# !110#
!183#
!153#
!95#
163158 148
12832
335 86
164 !29#
!242# !309#
1172 11762235 750 30 !78#
before�major�nonrec.�items !8# !3# !4# 14 1192 172!28# 1432 !4# 2
PresentationThyssenKruppGroup
December2009
8
Q1 Q2 Q3 Q4 FY
• Steel: - project costs: !76# !22# !19# !97# !214#
- restructuring: !8# !3# !146# !80# !237#
- impairments: !5# !24# !29#
• Stainless: - project costs: !7# !4# !3# !5# !19#
- restructuring: !60# !60#
- impairments: !60# !48# !10# !118#
• Technologies: - restructuring: !37# !75# !319# !431#
- impairments: !16# !30# !324# !370#
- others: !23# 13 !10#
• Elevator: - restructuring: !2# !2# !28# !32#
- impairments: !2# !2#
• Services: - restructuring: !12# !83# !95#
• Corporate: - restructuring !13# !13#
• Group: - project costs: !83# !26# !22# !102# !233#
- restructuring: !10# !42# !233# !583# !868#
- impairments: !81# !78# !360# !519#
- others: !23# 13 !10#
!2,364#
93
!734#
Q1 172
Q2
Q3
320
1,045
Q4
EBTas�reported
Major�nonrecurring items:€1,630�m
EBTbefore majornonrecurring
items
FY�2008/09 million�€ Major�nonrecurring�items�2008/09������������������������������million�€
Reconciliation�of�EBT�before�Major�Nonrecurring�Items
including €1,154�m�
inventory writedowns�
and�windfall losses
PresentationThyssenKruppGroup
December2009
9
Net�Financial�Debt
Free�cash�flow:�13382
Capex*Net�financial
debtSep�2008 Net�financial
debtSep�2009
!2,059#
!4,236#
Gearing21.2%
Operatingcash�flow
3,699
!1,584#
Gearing13.8%
199
Divestments
thereof:• Steel 2,593
thereof:TK�CSA� 1,527NAFTA�Steel 608
• Stainless����������� 342thereof:NAFTA�Stainless 182
• Technologies 812• Elevator 136• Services 209
513
Others
Development�of�net�financial�debt in�FY�2008/09 million�€
Dividend�payment**
**�incl.�minorities�of�€47�m
!650#
*�Capex for�property,�plant�&�equipment�+�financial�&�intangible�assets
PresentationThyssenKruppGroup
December2009
10
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
PresentationThyssenKruppGroup
December2009
11
Solid�Financial�Situation�– No�Short-Term�Refinancing�Needs
2009/10 2010/11 2011/12 2012/13 2013/14 after2013/14
Available�committed�credit�facilities
Cash�and�cash�equivalents
444963
377
1,567
2,515
4,239
1,738
5,545*
*�incl.�securities�of�€170�million
9,784
Total:�7,604
Liquidity�analysis�and�maturity�profile�of�gross�financial�debt�as�of�September�30,�2009 million�€
PresentationThyssenKruppGroup
December2009
12
� Financial�Achievements�and�Group�Performance
� Measures:�Efficiency�Improvement�and�Portfolio�Optimization
� Segment�Performance
� Outlook�for�Group�and�Business�Areas
Agenda
PresentationThyssenKruppGroup
December2009
13
Efficiency�Improvement�– Restructuring�Measures
Q4 FY�2008/09
233
78
ImpairmentsRestructuring�charges
311
Steel,�mainly:
•MetalForming
• Color/Construction
Stainless,�mainly:
• Nirosta
• AST(Italy)
Technologies,�mainly:
• Forging Group
•Waupaca
•MarineSystems
Elevator,�mainly:
• Escalators
Hamburg
Services,�mainly:
•MaterialServices
International
(Europeansite
consolidation)
868
519
1,387
2480
104 1060
70319
324
64328
83 13
Corporate2
30
360 583
million €
4281
123
10
Q3Q2Q1
PresentationThyssenKruppGroup
December2009
14
Efficiency�Improvement�– Management�Gains
Steel
Stainless
Techno-logies
Services
CorporateRealized�management�gains�by�segment�����������������������������������������������������
Corporate
~�€1.8�bn
� Based on�existing
restructuring
measures/
initiatives
� Excluding effects
from portfolio
optimization
Realized�management�gains�billion�€
Sustainable�targeted�management�gains������������������billion�€
~�1.8
~�1.0
~�0.8
FY�2008/09
1.5�– 2.0
FY�2010/11E
sustainable
36%
12%
33%
15%
4%
PresentationThyssenKruppGroup
December2009
15
Strategic�rationaleSales�volumeMeasure
� Exit�from�civil�shipbuilding�and�significant�reduction�of�utilization�����risk�at�naval�shipbuilding
SIAG�Schaaf !Emden#
Abu�Dhabi�Mar�!Hamburg#
� Best�owner
Focus�on�core�activities�in�����
Materials�Services
€330�m
$715�m
Sale�of�TK�Industrieservice
Sale�of�TK�Safway
Sale�of�TK�Xervon
� Tightening�of�relationship�with�ValeSale�of�CSA�stake�to�Vale
Portfolio�Optimization�Overview
signed
signed
signed
MoU
stopped
Value�crystallization�������Complexity�and�risk�reduction�������Cash�generation
Further�divestments�as�soon�as�M&A�market�recovers
~�€500�m
closed
PresentationThyssenKruppGroup
December2009
16
� Financial�Achievements�and�Group�Performance
� Measures:�Efficiency�Improvement�and�Portfolio�Optimization
� Segment�Performance
� Outlook�for�Group�and�Business�Areas
Agenda
PresentationThyssenKruppGroup
December2009
17
335
Steel�
FY�2008/09�Highlights
Comments�Q4�2008/09
� Improving�orders,�shipments�and�capacity�utilization
� Lower�average�revenues�per�ton
� €210�m�inventory�writedowns/windfall�losses
� €201�m�major�nonrecurring�items�in�Q4�!project�costs,�restructuring�and�impairment�charges#
EBT�in�€m
Q1 Q2 Q3� Q4 Q1
2007/08 2008/09
Order�intake�in�€m
3,188 3,986 3,765 3,260 2,036
Q2
1,651
Q3
2,321
Q4
2,406
Current�trading�conditions
Q2
86
Q1
84
5630
251
Q3
13482
165
11832
Q4
12442
480
162
EBT�reportedMajor�nonrecurring itemsEBT�before major nonrecurring items
14452
201
14862
FY
� Further�stabilization�of�volumes�and�capacity�utilization
� Price�increases�for�shorter-term�business�implemented
� Restart�of�blast�furnace�9�on�November�1,�2009
� European�inventories�at�low�levels
PresentationThyssenKruppGroup
December2009
18
875 912 914
277 241 291
932 845 915 929
307284
281 245
812540
252
111
709416
147
88
Q2Q2
Steel:�Output,�Shipments�and�Revenues�per�Metric�Ton
1,152
Fiscal�year
2004/05 2005/06
1,153
Q1
2007/08
1,239
319 334
757
349
827822
Fiscal�year
2004/05 2005/06
Cold-rolledHot-rolled
1,0761,161 1,171
338 388 337395
767872
913
777
Q1
2007/08
1,115
141160
133114
125
100
155
116136129
111133
118118138
124
150
123115134
2007/08
Q1
2005/06
Q2 Q3 Q4Q1
2004/05
Q2 Q3 Q4 Q1
2006/07
Q2 Q3 Q4 Q1
1,1291,260
Q2
Q2
Q3
1,196
Q3
1,308
Q3
1,174
Q4
1,104
Q4
Q4
2006/07
1,205
Q1
2008/09
1,064
2006/07 Q1
855
2008/09
2008/09
Q1
651
251
604
Q2
720
179
541
Q2
HKM�share
504
Q3
748
Q3
Q3
165
583
Crude�steel�output�1incl.�share�in�HKM2 1,000�t/month Shipments:�Hot-rolled�and�cold-rolled�products 1,000�t/month
Average�revenues�per�ton,�indexed Q1�2004/2005�=�100
855
Q4 Q4
901
218
683
Q4
PresentationThyssenKruppGroup
December2009
19
0
1
2
3
4
5
6
7
8
9
J'05
J'06
J'07
J'08
J'09
1.5
2.0
2.5
3.0
3.5
4.0
4.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
J'05
J'06
J'07
J'08
J'09
1
2
3
4
5
6
7
InventoriesChina
Inventories�and�Months�of�Supply�- Europe
Inventories�and�Months�of�Supply�- USA
Steel:�Inventories�and�Months�of�Supply
Source(s):TKS,EASSC,MAR,MSCI,UBS,MySteel
Europe:EuropeanSSC:Inventories at
month end/flat carbon steel w/oquarto
InventoriesGm�tH
MOSGmonthsH
USA:October MSCIinventories,carbon flat rolled
InventoriesGm�stH
MOSGmonthsH
China:flat steelinventoryin23majorcities
(HR,CRandPlate)
InventoriesGm�tH
0
1
2
3
4
5
6
7
8
A�07
J�07
O�07
J�08
A�08
J�08
O�08
J�09
A�09
J�09
O�09
J�10
PresentationThyssenKruppGroup
December2009
20
NAFTAEurope
Steel�USA
CSA
Duisburg
BA�Steel�EuropeBA�Steel�Americas
SoP Hot�Strip�Mill Q2�2010
Split�Ramp-UpSoP Blast�Furnace #1:� Q2�2010SoP Blast�Furnace #2:� Q4�2011
SoP Converter /�Continuous Caster mid 2010
Temporary De-Coupling of�Ramp-Up of�CSA�and�Steel�USA
Q12010
1
2mid2010
3Q22011
Temporary slab supply ex�Duisburgto�support ramp-up at�Steel�USA
Temporary slab supply ex�CSA�to�Europe�
CSA�taking over slab supply of�Steel�USA
1
2
3
PresentationThyssenKruppGroup
December2009
21
Sales�by�Industry�FY�2008/09 in�%
36
4
1715
9
11
8
Quarterly
Half-year
Annual�&>1�year
Spot
6311
15
11
Premium�Flat�Carbon�Steel�Multiple�Niche�Strategy
Others Automotive�industry�1incl.�suppliers2Construction
Packaging
Trade
Mechanical�Engineering
Steel�and�steel-related�processing
Sales�by�Maturity�FY�2008/09 in�% Price�index Index�!Q3�1997�=�100#
60
80
100
120
140
160
180
200
220
240
260
Alldataincl.Q32009
Sources:CRUandowncalculationsbasedonCRU,TKS
CRU
ThyssenKruppSteel
Price�index flat carbon steel ThyssenKrupp�Steel�
Price�index flat carbon steel,�global�market 1CRU2
98 00 02 04 06 08 09
PresentationThyssenKruppGroup
December2009
22
Industrial�Cost�Curve�2012Hot-Rolling�Capacities,�NAFTA USD/t;mt/yr
Ø cash�costHRC�NAFTA
Transatlantic�Strategy�Based�on�Optimum�Cost-Quality�Position
USD/t
hot-rollingcapacities Um�t/yrV0 10 20 30 40 9050 60 70 80
cash�cost HRCTK�BA�SteelAmericas
Costcompetitiveness
Margin opportunity!
Premium�quality &technology�leadership
Ø pricesNAFTA
Ø pricesTK�BA�SteelAmericas
� ThyssenKrupp�Business�AreaSteel�Americas�with
� strong�cost and�
� quality position
� Even�based on�conservativeassumptions:
� slow market recovery and�ramp-up
� current raw material�and�steel prices
� Significant margin and�valueopportunity for the Group
PresentationThyssenKruppGroup
December2009
23
FY�2008/09�Highlights
Stainless
Comments�Q4�2008/09
EBT�in�€m
12492
Q1 Q2 Q3� Q4 Q1
2007/08 2008/09
Order�intake�in�€m
2,150 2,001 1,732 1,577 966
1242213732 13092
Q2
819
64
12042 11532
Q3
1,2077
51
11202 1452
75
Q4
1,155
EBT�reportedMajor�nonrecurring itemsEBT�before major nonrecurring items
Q2Q1 Q3 Q4
19462 17492
197
FY
Current�trading�conditions
� Stable�development�of�order�intake�and�increase�in�shipments�
� Steady�increase�in�base�prices�and�alloy�surcharges
� €75�m�major�nonrecurring�items�in�Q4�!project�costs,�restructuring�and�impairment�charges#
� Slower�demand�development
� Inventories�to�remain�at�a�moderate�level
� Imports�from�Asia�still�at�a�relatively�low�level
PresentationThyssenKruppGroup
December2009
24
Shipments*:�Hot-rolled�and�cold-rolled�products 1,000�t/monthCrude�steel�output* 1,000�t/month
105
2018
33
91117
132
45
Stainless:�Output,�Shipments�and�Revenues�per�Metric�Ton
Q1Fiscal�year
2005/062007/08
231
Q2
*�including�carbon,�forging,�Ni-Alloys
Q3 Q4
208 42
147 142
28
Q1
Fiscal�year
2005/062007/08
2006/07 Q2
Hot-rolled,�including�slabsCold-rolled,�including�precision�strip
189170
Q3
137158 141 134
20
3437
24
Q1
2008/09
Q4
157
9877 70
123
161
82100
171
8294
123
177
9892
134
94
118
161
122
89
2007/08
Q1
2005/06
Q2 Q3 Q4Q1
2004/05
Q2 Q3 Q4 Q1
2006/07
Q2 Q3 Q4 Q1
223
Q2
192
Q2
226
Q3
178
Q3
175158
Q4
210
2006/07
2008/09
Q1 Q2 Q3
125109
149
Q1
2008/09
Q2 Q3
155
105
175
Average�transaction�price�per�ton,�indexed Q1�2004/2005�=�100
*�not�consolidated
Q4
197177
Q4
Q4
PresentationThyssenKruppGroup
December2009
25
Stainless:�Market�Situation
Source:MSCIOctober2009;hot- andcold-rolledmaterialallshapes
Stock�level:�INDEX�Jan�2005�=�100Stock�Reach:�Calendar Days
Average�Stock�Reach
0
20
40
60
80
100
120
140
160
Jan-05 Jul Jan-06 Jul Jan-07 Jul Jan-08 Jul Jan-09 July
Stock�Level
Stock�Reach
Source:EHVNovember2009
Germany�1cold-rolled products2 USA�1hot- and�cold-rolled products all�shapes2
Stock�level:�INDEX�Jan�2005�=�100Stock�Reach:�Calendar Days
Average�Stock�Reach
0
20
40
60
80
100
120
140
160
Jan-05 Jul Jan-06 Jul Jan-07 Jul Jan-08 Jul Jan-09 July
Stock�Level
Stock�Reach
Sep Sep
PresentationThyssenKruppGroup
December2009
26
Stainless:�Restructuring�Market�Volatility�Requires�Flexible�Cost�Base
European�cold-rolling production of�TK�Stainless 1quarter2 U000tV
0
100
200
300
400
2006 2007 2008 2009
Flexibilization of�labor utilization
Flexibilization of�cost
100%�capacity utilization
80%�capacity utilization
Technicalcapacity
80%
60%
100%Flexibilization
Labor�costs� Labortimeaccounts
� external service
provider
-20%
Worst�Case:� short-time
working
<60%
80%
employment*1FTE####
*�Full-time equivalent !FTE#
CY
PresentationThyssenKruppGroup
December2009
27
Technologies
FY�2008/09�Highlights
Comments�Q4�2008/09
EBT�in�€m
164
Q1 Q2 Q3� Q4 Q1
2007/08 2008/09
Order�intake�in�€m
3,212 3,108 3,397 3,773 4,897
11052 1292
Q2
1,723
7617402 1972
643
Q3
1,367
Impact�of�major�cancellations�at�Marine�Systems�!container�ships,�mega�yachts,�submarines�Greece#
~100 ~500
11872 1952
92
Q4
593
� EBT�strongly�affected�by�restructuring�!€319�m#�and�impairment�charges�!€324�m#
� Restructuring�measures�&�capacity�adjustments�at>100�locations;�closures�initiated�at�11�production�sites
� Ongoing�solid�performance�at�Plant�Technology,�naval�shipbuilding�and�wind�energy�business
Q2Q1 Q3 Q4
EBT�reportedMajor�nonrecurring itemsEBT�before major nonrecurring items
18682 1572
811
FY
Current�trading�conditions
~1,000
� Plant�Technology�with�ongoing�positive�earnings,�project�pipeline�filled�!mainly�cement�and�mining�equipment#
� First�positive�signs�in�automotive�business,�but�mainly�driven�by�government�programs
� Marine�Systems�with�improvement�in�earnings�as�soon�as�implementation�of�new�industrial�concept�is�completed
PresentationThyssenKruppGroup
December2009
28
Heavy�CommercialVehicles
Earth-movingEquipment
Automotive Infrastructure�and�Energy
Time
Volume
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:All�relevant�industries�affected�with�different�recovery�scenarios
Passenger�Cars/�Light�Comm.�Veh.
Cement,Minerals,�Mining
Plant�Engineering
Chemical�Plants
Volume
Time
System�Engineering
Time
Volume
Polysius
Fördertechnik
Uhde
Time
Volume
Plant�Technology:Sales�€4,450�m;�EBT�€236�m�1#
Components�Technology:�Sales�€4,603�m;�EBT�€!458#�m�2#
1)incl.restructuringcharges€(39)m
andimpairments€(7)m
2) incl.restructuringcharges€(165)m,
impairments€(156)mandothers€2m
Volume
Time
Volume
Time
PresentationThyssenKruppGroup
December2009
29
80%
SIAG
50%ThyssenKrupp!Engineering#
20%�ThyssenKrupp
80%Abu�Dhabi�MAR
20%ThyssenKrupp
50%Abu�Dhabi�MAR
Mega Yachts
(B+V
Shipyards)
Service
(B+V
Repair)
Components
(B+V
Industries)
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:�Planned�Target�StructureExit�From�Civil�Shipbuilding;�Focus�on�Naval�Engineering�and�Submarines
SIAG
• Related charges:�Restructuring €227�m�!Q4:�163#;�Impairments €207�m�!Q4:�174#• Targeted workforce reduction of�60% to�~�3,500�!from ~8,300�as�of�Sep.�30,�2008#
PresentationThyssenKruppGroup
December2009
30
Elevator�
FY�2008/09�Highlights
Comments�Q4�2008/09
EBT�in�€m
156
Q1 Q2 Q3� Q4 Q1
2007/08 2008/09
Order�intake�in�€m
1,466 1,464 1,324 1,281 1,562
2158 146 148
Q2
1,189
2
163
Q3
1,186
93
123
30
Q4
1,101
� Stable�development�of�order�intake�and�sales�despite�further�weakening�of�new�installation�business�
� EBT�impacted�by�restructuring�charges�!€28�m#
� Strong�service�activities
Q2Q1 Q3 Q4
EBT�reportedMajor�nonrecurring itemsEBT�before major nonrecurring items
558
592
34
FY
Current�trading�conditions
� New�installation�business�still�at�a�lower�level
� Ongoing�stable�service�activities
� Further�efficiency�improvement�measures
PresentationThyssenKruppGroup
December2009
31
New�Infrastructure�Orders�!I#Metro�Lines�and�Airports
Mod Baku,�Azerbaijan 6 escalators
NI Rome,�Italy 41 elevators88 escalators
NI� Cairo,�Egypt 13 elevators64� escalators
NI Chongqing,�China 87 escalators
NI Sao�Paulo,�Brazil 65 escalators
Mod Madrid,�Spain 181 escalators
NI Doha,�Qatar�����������������������������87 passengerboarding�bridges
NI =�New�installation Mod =�Modernization
Madrid
Rome,�Line�C
Sao�Paulo,�Linha Verde
Chongqing,�Line�3
Doha Egypt
FY�2008/09
PresentationThyssenKruppGroup
December2009
32
NI Madinaty/Al�Rehab 584 elevatorsCairo,�Egypt
NI PalaisQuartier 48 elevatorsFrankfurt,�Germany� !incl.�1�TWIN#�
28�escalators
NI Deutsche�Börse 15 elevatorsEschborn,�Germany
NI University�of�Kentucky 24 elevatorsLexington,�USA
NI Latifa Tower 19 elevatorsDubai,�UAE���������������������������������� !incl.�2�TWINs#
NI Seo-Myeon Residential 55 elevatorsBusan,�South�Korea 13 escalators
New Infrastructure Orders�!II#Buildings
PalaisQuartier,�Frankfurt,�Germany
NI =�New�installation
FY�2008/09
PresentationThyssenKruppGroup
December2009
33
Services
Comments�Q4�2008/09
EBT�in�€m
30
Q1 Q2 Q3� Q4 Q1
2007/08 2008/09
Order�intake�in�€m
3,951 4,322 4,677 4,503 3,746
1782
Q2
2,514
11232
Q3
2,256
11112
12
Q4
2,650
11002 1172
83
� Stabilization�of�volumes�and�prices�at�a�low�level
� EBT�affected�by�restructuring�charges�!€83�m#
� Sale�of�TKIN�to�Wisag in�October�2009
FY�2008/09�Highlights
EBT�reportedMajor�nonrecurring itemsEBT�before major nonrecurring items
Q2Q1 Q3 Q4
12712 11762
95
FY
Current�trading�conditions
� Stabilization�of�volumes�and�prices�
� Inventory�reduction�at�customers�mainly�completed
� Customers�placing�orders�in�smaller�volumes�but�more�frequently
PresentationThyssenKruppGroup
December2009
34
10,000
20,000
30,000
40,000
O N D J F M A M J J A SO N D J F M A M J J A S
07/08 08/09 09/10
N D J F M A M J J A SOOOO
18,520
31,217
3,000
3,500
4,000
4,500
07/08
O NNNN D J F M A M J J A S
08/09 09/10
O N D J F M A M J J A SO N D J F M A M J J A S
3,248
4,338
2,000
2,5002,305
Stainless�cold-rolled�sheetsincl.�alloy�surcharge
Delta12,697
Delta2,033
Nickel����������������������������������������������US$/t�!monthly average#
1,000
400
500
700
800
900
600
300
200
07/08 08/09 09/10
O N D J F M A M J J A S N D J F M A M J J A SO N D J F M A M J J A S OOOO
940
800
855
420
90
385
420
455
Sections /�broad flanged beamCold rolled sheetsGalvanized sheets
Quarto�plates !R37-2#
300
400
500
600
700
800
07/08 09/1008/09
730
O N D J F M A M J J A SO N D J F M A M J J A S
200
100
OOOO N D J F M A M J J A S
125
420
25
Freight�rate�China�ARA
Coke,�FOB�China
Coke,�Freight rate�China������������������������������������US$/t
Rolled Steel� €/t Stainless Steel��������������������������������������������������������€/t
Services:�Price�Developments
PresentationThyssenKruppGroup
December2009
35
� Financial�Achievements�and�Group�Performance
� Measures:�Efficiency�Improvement�and�Portfolio�Optimization
� Segment�Performance
� Outlook�for�Group�and�Business�Areas
Agenda
PresentationThyssenKruppGroup
December2009
36
Outlook�FY�2009/10�– Group�
Low�three-digit�million�€ positive,incl.projectcosts,startuplosses,depreciationandinterestexpensesof
Americasprojects1mid-range�three-digit�million�€2Adjusted EBT
Sales Moderate�stabilization
Significant�improvement�in�earnings,�despite�negative�impact�of�Americas�projects:����������������
Adjusted EBITHigh�three-digit�million�€ positive,incl.projectcosts,startuplossesanddepreciation
ofAmericasprojects
PresentationThyssenKruppGroup
December2009
37
Reconciliation�of�EBT�2008/09
Elevator�Technology�!ET#
Plant�Technology�!PT#
Marine�Systems�!MS#
Components�Technology�!CT#
Internal�reallocationof�interest�andadmin.�expenses
EBTas�reported�after�internalreallocation*
Steel�Europe�!SE#
Steel�Americas�!AM#
Materials�Services�!MX#
Stainless�Global�!SL#
Corporate�/�Consolidation
EBTas�reported
before�internal�reallocation
558
224
!562#
!497#
!241#
!216#
!319#
!946#
!365#
!12#
!12#
!8#
!39#
!44#
0
!24#
!20#
159
570
236
!554#
!458#
!197#
!216#
!295#
!926#
!524#
!159#
*comparablebasisforreportinginFY2009/10(preliminarynumbers)
EBTbef.�mjr nr�itemsand�before�internal�
reallocation
592
270
!116#
!178#
16
!2#
!215#
!749#
!352#
PresentationThyssenKruppGroup
December2009
38
Outlook�FY�2009/10�– Business�Areas�!I#
€9,570�m
€0�m
€4,486�m
€12,815�m
Sales*
€!197#�m
€!216#�m
€!926#�m
€!295#�m
EBT�as�reported*
Improvement�in�volumes�and�capacity�utilization�with�average�revenues�per�ton�below�prior-year�level
Negative�EBT�contribution�!mid-range�three-digit�million�€#�due�to�project�costs�and�startup�losses�for�the�steelmaking�and�processing�plants�in�Brazil�and�the�USA
Stabilization�of�volumes�with�improved�base�prices
Stabilization�of�volumes�and�revenues
Outlook�FY�2009/10FY�2008/09
*comparablebasisforreportinginFY2009/10(preliminarynumbers)
Steel�Europe�!SE#
Steel�Americas�!AM#
Materials�Services�!MX#
Stainless�Global�!SL#
PresentationThyssenKruppGroup
December2009
39
Outlook�FY�2009/10�– Business�Areas�!II#
Continued�high�earnings�contributions�thanks�to�strong�order�backlog�and�stable�modernization�and�maintenance�business
Good�revenues�and�earnings�expected�from�project�business�due�to�order�backlog�with�good�earnings�quality
Continued�difficult�environment�for�automotive�and�construction�machinery�supplies,�positive�earnings�contribution�from�slewing�bearings�for�the�wind�energy�sector
Improved�earnings�quality�through�initiated�consolidation�of�shipyard�sites
€5,308�m
€4,450�m
€4,603�m
€1,594�m
€570�m
€236�m
€!458#�m
€!554#�m
Outlook�FY�2009/10FY�2008/09
Sales* EBT�as�reported*
*comparablebasisforreportinginFY2009/10(preliminarynumbers)
ElevatorTechnology�
!ET#
PlantTechnology�
!PT#
MarineSystems�!MS#
ComponentsTechnology�
!CT#
PresentationThyssenKruppGroup
December2009
40
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
� Reduction�of�riskthrough�realized�asset�impairments
� New�industrial�conceptat�Marine�Systems
� Execution�of�restructuring�measures�and�realization�of�sustainable�cost�savings:�€1.5�- €2.0�bntargeted�in�FY�2010/11
� Growth�investments�of~�€2.5�bn in�FY�2009/10
� Startup�of�Steel�&�Stainless�Americas�with�high�degree�of�flexibility
� Constant�review�of�portfolio
� Increased�external�transparency�and�benchmarking
� Continuous�optimization�of�cost�base
� Focus�on�FCF�generation
FY�2009/10 FY�2010/11�et�seq.FY�2008/09
PresentationThyssenKruppGroup
December2009
41
� January�21,�2010 Annual�General�Meeting,�Bochum/Germany
� February�12,�2010 Interim�Report�1st�quarter�2009/10�!Oct�to�Dec#
Conference�Call�with�analysts�and�investors
� May�12,�2010 Interim�Report�1st�half�2009/10�!Oct�to�Mar#
Conference�Call�with�analysts�and�investors
� August�13,�2010 Interim�Report�9�months�2009/10�!Oct�to�Jun#
Conference�Call�with�analysts�and�investors
� November�30,�2010 Analysts’ and�Investors’ Conference
Annual�Press�Conference
Financial�Calendar�– 2009/2010
PresentationThyssenKruppGroup
December2009
42
How�to�Contact�ThyssenKrupp�AG�Investor�Relations
Institutional�Investors�and Analysts:
� Phone:�+49�211�824-36464�
� Fax:�+49�211�824-36467
� E-mail:�[email protected]
� Internet:�www.thyssenkrupp.com
To�be�added�to�the�IR�mailing�list,�send�us�a�brief�e-mail�with�your�
details!
PresentationThyssenKruppGroup
December2009
43
� Appendix
Agenda
PresentationThyssenKruppGroup
December2009
44
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Order�intake €m 13,270 14,084 14,181 13,670 55,205 12,887 7,642 7,926 7,515 35,970
Sales €m 12,270 13,199 14,181 13,776 53,426 11,522 9,859 9,299 9,883 40,563
EBITDA €m 1,083 1,197 1,366 1,330 4,976 764 142 !180# !534#����� 192
EBIT� €m 748 849 1,019 956 3,572 407 !276# !597# !1,197# 11,6632
EBT €m 646 742 909 831 3,128 240 !455# !772# !1,377# 12,3642
Net�income €m 435 502 613 726 2,276 163 !362# !630# !1,044# 11,8732
Earnings�per�share € 0.85 1.00 1.21 1.53 4.59 0.36 ����!0.71# !1.38# !2.28# 14.012
TK�Value�Added €m 353 438 600 525 1,916 !39# !734# !1,030# !1,616# 13,4192
ROCE % 16.1 16.9 18.2 18.3 18.3 7.8 1.2 !3.0# !8.1# 18.12
Capital�Employed €m 18,581 18,955 19,211 19,478 19,478 21,025 21,270 20,975 20,662 20,662
Goodwill €m 3,791 3,755 3,779 3,858 3,858 3,846 3,942 3,927 3,902 3,902
2007/08 2008/09
Group�Overview�!I#
ROCE�based on�3,�6,�9�and�12�months
PresentationThyssenKruppGroup
December2009
45
Group�Overview�!II#
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Capital�expenditures* €m 889 1,014 975 1,349 4,227 1,105 1,090 898 1,143 4,236
Depreciation/amort. €m 335 349 346 374 1,404 357 418 417 663 1,854
Operating�cash�flow €m !170# 1,003 676 2,170 3,679 !860# 1,483 1,331 1,745 3,699
+�Cash�flow�from�divestm. €m 40 80 107 102 329 106 26 57 10 199
-�Cash�flow�from�investm. €m 889 1,014 975 1,349 4,227 1,105 1,090 898 1,143 4,236
Free�cash�flow €m !1,018# 68 !192# 923 12192 !1,859# 419 490 612 13382
Cash�and�cash�
equivalents������������������������������!incl.�short-term�securities#
€m 2,612 2,130 2,882 2,832 2,832 3,439 3,820 5,235 5,545 5,545
Net�financial�debt €m 859 1,988 2,127 1,584 1,584 3,514 3,687 3,122 2,059 2,059
Employees� 193,137 195,828 198,033 199,374 199,374 197,175 192,521 188,501 187,495 187,495
2007/08 2008/09
*�incl.�financial�investments
PresentationThyssenKruppGroup
December2009
46
55.2%
7,671
177
8,327
4,235
2,833
34.0% 2.2%
Balance�Sheet�Structure
Equity
Net�financialposition
18.42%
Sep�2006Sep�2005Sep�2004Sep�2003
8,927
!747#*
7,944
10,447
!223#*
Sep�2008
12.12%
Sep�2007
11,489
1,584
13.8%
25.4% 26.7% 22.1% 24.5% 27.4% 27.6% Equity�ratio
Gearing
*�Net�financial�receivablesSep�2009
21.2%
23.4%
9,696
2,059
Net�financial�position,�equity�and�ratios million�€
PresentationThyssenKruppGroup
December2009
47
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Order�intake €m 3,188 3,986 3,765 3,260 14,199 2,036 1,651 2,321 2,406 8,414
Sales €m 3,214 3,639 3,902 3,603 14,358 2,925 2,405 2,272 2,343 9,945
EBITDA €m 561 599 587 599 2,346 475 255 !144# !196# 390
EBIT� €m 392 434 426 448 1,700 309 103 !295# !367# 12502
EBT €m 353 396 389 402 1,540 251 56 !348# !445# 14862
TK�Value�Added €m 236 263 246 262 1,007 107 !121# !522# !593# 11,1292
ROCE % 22.6 22.8 22.2 22.1 22.1 13.7 8.7 1.6 !2.6# 12.62
Capital�Employed €m 6,928 7,265 7,509 7,697 7,697 8,999 9,460 9,671 9,763 9,763
OCF €m !330# 352 555 908 1,485 !779# 223 586 617 647
+�CF�from�divestm. €m !3# 25 !31# 89 80 !1# 20 !7# 10 40
−�CF�for�investm. €m 632 577 533 878 2,620 714 563 572 726 2,593
FCF €m !965# !200# !9# 119 11,0552 !1,494# !320# 7 !99# 11,9062
39,922 40,636 40,733 41,311 41,311 40,753 40,071 39,321 39,156 39,156Employees��
2008/09�����������������������������������2007/08
Steel:�Segment�Overview
Steel
ROCE�based on�3,�6,�9�and�12�months
PresentationThyssenKruppGroup
December2009
48
TK�CSA:�One�of�the�Most�Cost-Efficient�Slab�Plants�in�the�World
Industrial�Cost�Curve�2012Slab�Capacities,�Brazil
Industrial�Cost�Curve�2012Global�Slab�Capacities
slab capacities Um�t/yrV
cashcost
UUSD/tV
Sources:�WSD;�VDEh Plantfacts;�Global�Insight;�MBR;�Metal�Expert;�SBB;�McKinsey;�own analysis
vertically integrated steel plants !ore and�/�or coal#
ThyssenKruppCSA
0 10 20 30 40 50 1,0000 500
slab capacities Um�t/yrV
cashcost
UUSD/tV
TKCSA
PresentationThyssenKruppGroup
December2009
49
Endof�projectphase
0
1
2
3
4
5
CSA:�Split�Ramp-Up Maximizes Flexible�Response�to�Market�Changes
TK�CSA:
Split
Ramp-Up
Um�tVslab production
run-rate
Line�#1
Line�#2
2010 2011 2012
Ramp-Up
by Key
Facilities
BF#1
BF#2
Converter/Cont.�Caster
HSMTKS�USA
#1
#2
Q1Q4Q3 Q2Q2 Q1Q4Q3Q2Q1
ReadyStart
Ready Start
Ready StartStart
ReadyStart
Ready StartStart
potential�market-oriented upside
PresentationThyssenKruppGroup
December2009
50
Competitive�Advantage�– Example:�Technology�of�Hot�Strip�Mill
Head-to-Head�Comparison�of�US�Hot�Strip�Mills
#�Stands
WidthJinchK
ThicknessJinchK
676460
0.50
1
0.685
0.625
ThyssenKrupp�Steel�USA
0.375
74
7777
6666
6666
6666
5555
6666
6666
e.g.,�superior defect
free surface and�
more consistent
mechanical properties
e.g.,�large�diameter
pipe requirements
e.g.,�coiled plate
market entry
Best�in�Class
PresentationThyssenKruppGroup
December2009
51
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Order�intake €m 2,150 2,001 1,732 1,577 7,460 966 819 1,207 1,155 4,147
Sales €m 1,838 1,955 1,933 1,694 7,420 1,173 988 1,030 1,295 4,486
EBITDA €m 8 98 154 103 363 !189# !251# !98# !62# 16002
EBIT� €m !23# 60 115 62 214 !228# !351# !185# !100# 18642
EBT €m !45# 38 93 40 126 !249# !373# !204# !120# 19462
TK�Value�Added €m !107# !23# 31 !20# 11192 !310# !428# !254# !164# 11,1562
ROCE % !2.4# 2.0 5.4 5.8 5.8 !25.1# !32.7# !30.2# !26.7# 126.72
Capital�Employed €m 3,732 3,728 3,715 3,698 3,698 3,636 3,542 3,376 3,240 3,240
OCF €m !169# 243 119 365 558 !325# 256 119 178 228
+�CF�from�divestm. €m 3 2 0 20 25 2 2 5 !3# 6
−�CF�for�investm. €m 47 168 60 113 388 92 46 79 125 342
FCF €m !213# 77 59 272 195 !415# 212 45 51 11072
12,075 12,042 12,037 12,212 12,212 12,167 12,079 11,869 11,755 11,755Employees��
2008/09������������������������������������2007/08
Stainless:�Segment�Overview
Stainless
ROCE�based on�3,�6,�9�and�12�months
PresentationThyssenKruppGroup
December2009
52
Stainless�Steel�Sales�by�Customer�Group 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
1074
11
7
White�Goods8
Distribution
Oil/�Gas
Aerospace/Turbines
Electronics
Chemical/Energy
Automotive
basedonnetsales,FY2008/09
8 6
22
2018
26
PresentationThyssenKruppGroup
December2009
53
16.9
36.4
20.219.918.919.317.122.520.2
36.1
51.9
41.9
21.5
2005
2006
2007
2008
Jan�09
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Asia Americas Others
Stainless:�Price�Development and�Import�Situation
0
2,000
4,000
6,000
8,000
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
China
USA
Europe
Source:Eurofer November2009,TKSLVV-BDG
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
June
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,304,2mmsheet
Source:CRUNovember2009,Metalprices(NICKEL)November2009
EUR/t US$/t
Base�Price�EU*
Alloy Surcharge EU
Nickel
*AISI304(1.4301)CRFlat,2mm
Source:CRUNovember2009(EU+USA),TKL-SKSNovember2009(WuxiMarketpricesCHINA)
Price�development:�recovery�gaining�sustainability Cold-rolled imports from third countries U000t/MonthV
Regional�price development*
Oct
Oct
PresentationThyssenKruppGroup
December2009
54
Cash- and�Market-Oriented�Adjustments�with�Maximum�Flexibility!
Ramp-Up�Curve�of�Cold-Rolled�Shipments�and�Melt�Shop 1,000t/quarter � Cash- and�market-oriented�Ramp-up�of�Stainless�USA
� SoP 1st�CRM�in�calendar�Q4�2010
� installation�of�equipment�well�advanced
� >50%�of�shipments�via�TK�internal�SSC
� tapping�into�the�60”+�segment
� SoP Meltshop calendar�Q1�2014
� further�postponement�by�2�yrs
� Maximum�built-in�flexibility
� continuous�monitoring�of�market�recovery
� flexible�acceleration�of�ramp-up�possible�at�any�time
0
20
40
60
80
100
120
140
160
180
200
220
240
260
2009/10 2010/11 2011/12 2012/13 2013/14
Cold-rolled�capacity:�~�350,000�t/year
Melt�shop�capacity:�~�900,000�t/year
PlanFeb ‘09
PlanFeb ‘09 New�Base�CaseSep ‘09
New�Base�CaseSep ‘09
market-oriented upside
market-oriented upside
1,000�t/quarter
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
PresentationThyssenKruppGroup
December2009
55
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Order�intake €m 3,212 3,108 3,397 3,773 13,490 4,897 1,723 1,367 593 8,580
Sales €m 2,822 3,029 3,357 3,204 12,412 2,921 2,656 2,483 2,580 10,640
EBITDA €m 256 261 272 257 1,046 245 5 !55# !333# 11382
EBIT� €m 170 178 188 142 678 154 !99# !173# !718# 18362
EBT €m 179 186 201 175 741 164 !105# !187# !740# 18682
TK�Value�Added €m 127 135 145 95 502 100 !158# !229# !764# 11,0512
ROCE % 28.9 29.6 29.8 27.6 27.6 22.5 5.0 !4.6# !31.1# 131.12
Capital�Employed €m 1,915 1,914 1,904 1,960 1,960 2,399 2,507 2,504 2,397 2,397
OCF €m 22 326 117 201 666 !113# 267 49 165 368
+�CF�from�divestm. €m 46 118 36 51 251 18 43 36 !43#������� 53
−�CF�for�investm. €m 160 171 153 278 762 173 361 149 130 812
FCF €m !91# 272 0 !26# 155 !268# !52# !64# !7# 13922
55,567 53,637 54,334 54,043 54,043 53,167 50,978 49,349 49,056 49,056Employees��
2008/092007/08
Technologies:�Segment�Overview
Technologies
ROCE�based on�3,�6,�9�and�12�months
PresentationThyssenKruppGroup
December2009
56
Fertilizer�(Ammonia&Urea)
Plant�Technology:�Excellent Market�Positions !Selected Examples#
Uhde
Electrolysis�(Chlorine,Sodiumhydroxide)
No.�1Uhde No.�1 Uhde
Polymers�(PVC,HDPE,PET)
No.�2
Coke�plant�technologies(Cokeovenbatteries)
Polysius
Cement�production
No.�3Uhde No.�1 Fördertechnik
Mining�and
Material�Handling�
No.�1
PresentationThyssenKruppGroup
December2009
57
Uhde:�Focus�on�Plastics�
Above�average�growth�for�plastics�in�growth�regions�expected
� Expected�growth�rate�of�per-capita�consumption:�~�5%�p.a.�until�2015
� Over�80%�of�plastics�are�PVC,�polypropylen,�polyethylen and�polyester�which�are�part�of�Uhde’s technology�portfolio
� Uhde developing�technologies�for�“plastics�of�tomorrow”,�based�on�renewable�raw�materials
Source:�Plastic Europe�Deutschland,�WG�Statistics and�Market�Research�2005�
Vinyl chloride (VCM) Polyvinyl chloride
Polyethylene LLD, LD, HD
Polypropylene
Polyester
PET, PBT
Ethylene dichlorideSalt Chlorine
Toluene
Benzene
p-xylene
o-xylene m-xylene
Caustic soda
Propylene oxide
Polyamide (Nylon)
Polylactic acid
Ethylene
Propylene
18 26 26
4045 10823 950
101
252010
108
2187
32
100124129
3713
North�America Western�Europe Japan Africa/Middle
East
Eastern�Europe Asia Latin�America Worldwide
1980 2004 2010
6049
13 15
96
259
1313
2010
Per-capita consumption of�plastics !in�kg#
Consumption of�plastics !in�million t�pa#
PresentationThyssenKruppGroup
December2009
58
Naval�Shipbuilding:�Leading�Market�Positions�and�Technologies
~�40%
Track�Record
Modern�Propul-sion
� Gas�turbines�and�waterjets�for�powerful�propulsion
� Acceleration�to�>�30�knots� „Crash�stop“ !3�ship�lenghts#
MEKO®
design�concept
� Configuration�andMission�Modularity
� Fast�exchange�of�mission�capabilities
Stealth
� Almost�impossible�to�locate� Additional�reflectorsneeded�for�normalmaritime�traffic
Naval�surface�vesselsMarketsize:~€3bn
~�60%
Non-nuclear�submarinesMarketsize:~€1.5bn
� Inthepast50years
- morethan240�naval�vessels�(frigates,corvettes,specialvessels)builtfor20countries
- morethan 180�submarines builtfor17countries
� Latest�large�orders !FY�2008/09#:
� Submarine�material�packages�for�South�Korea�and�Italy�!total�volume�~�€1.8�bn#
Fuel�cell�techno-logy
� Air-independent�propulsion�system� Submerged�time�4-5�xgreater�than�withcommon�battery�operation
Market�share�ThyssenKrupp�Marine�Systems Technology�Leadership
PresentationThyssenKruppGroup
December2009
59
Rothe�Erde:�Expansion�Strategy
8.9
17.0
0
5
10
15
20
25
2008 2009 2010 2011 2012 2013
9.2
20.2
0
5
10
15
20
25
2008 2009 2010 2011 2012 2013
8.2
15.3
0
5
10
15
20
25
2008 2009 2010 2011 2012 2013
6.210.5
0
5
10
15
20
25
2008 2009 2010 2011 2012 2013
GW GW GW GW
Market�outlook for wind�energy +annual growth�in�GW�according to�BTM-Study 2009-�
BTM�=�Birger T.�Madsen,�Consult�Danish�Energy�Agency
North�America Europe Asia thereof China
Rothe�Erde�production capacities and�expansion strategy
Existingproduction�capacities
Capacity�expansion
North�America Europe Asia thereof China
PresentationThyssenKruppGroup
December2009
60
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Order�intake €m 1,466 1,464 1,324 1,281 5,535 1,562 1,189 1,186 1,101 5,038
Sales €m 1,184 1,164 1,211 1,371 4,930 1,343 1,293 1,328 1,344 5,308
EBITDA €m 134 112 113 150 509 173 164 183 117 637
EBIT� €m 126 94 98 132 450 157 148 167 96 568
EBT €m 119 90 92 133 434 156 146 163 93 558
TK�Value�Added €m 89 60 66 99 314 124 116 136 67 443
ROCE % 27.6 24.7 24.7 26.5 26.5 38.1 37.2 39.4 36.5 36.5
Capital�Employed €m 1,822 1,783 1,718 1,695 1,695 1,646 1,639 1,596 1,554 1,554
OCF €m 49 196 131 149 525 72 287 167 217 742
+�CF�from�divestm. €m 2 !1# 1 6 8 9 4 2 3 19
−�CF�for�investm. €m 17 35 49 31 132 33 36 18 47 136
FCF €m 34 160 83 124 401 48 254 151 172 626
40,191 40,873 42,108 42,992 42,992 43,599 43,306 42,761 42,698 42,698Employees��
2008/092007/08
Elevator:�Segment�Overview
Elevator
ROCE�based on�3,�6,�9�and�12�months
PresentationThyssenKruppGroup
December2009
61
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Order�intake €m 3,951 4,322 4,677 4,503 17,453 3,746 2,514 2,256 2,650 11,166
Sales €m 3,867 4,232 4,603 4,634 17,336 3,726 2,903 2,539 2,728 11,896
EBITDA €m 190 195 306 297 988 94 !21# !62# !41# 1302
EBIT� €m 153 156 268 257 834 54 !60# !101# !80# 11872
EBT €m 132 135 248 235 750 30 !78# !123# !100# 12712
TK�Value�Added €m 79 75 183 171 508 !29# !143# !173# !145# 14902
ROCE % 17.5 16.9 20.4 21.7 21.7 5.5 !0.3# !3.8# !5.3# 15.32
Capital�Employed €m 3,487 3,659 3,768 3,834 3,834 3,931 3,907 3,726 3,554 3,554
OCF €m !421# 115 !80# 579 193 !221# 205 326 495 805
+�CF�from�divestm. €m 12 10 29 20 71 38 4 12 7 60
−�CF�for�investm. €m 70 169 55 75 369 68 57 45 41 209
FCF €m !479# !44# !106# 524 11052 !251# 151 293 462 656
43,054 46,318 46,506 46,486 46,486 45,173 44,512 43,620 43,235 43,235Employees��
2008/092007/08
Services:�Segment�Overview
Services
ROCE�based on�3,�6,�9�and�12�months
PresentationThyssenKruppGroup
December2009
62
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Order�intake €m !697# !797# !714# !724# 12,9322 !320# !254# !411# !390# 11,3752
Sales €m !655# !820# !825# !730# 13,0302 !566# !386# !353# !407# 11,7122
EBITDA €m !66# !68# !66# !76# 12762���� !34# !10# !4# !19# 1672
EBIT� €m !70# !73# !76# !85# 13042���� !39# !17# !10# !28# 1942
EBT €m !92# !103# !114# !154# 14632���� !112# !101# !73# !65# 13512
OCF €m 679 !229# !166# !32# 252 506 246 83 73 908
+�CF�from�divestm. €m !19# !75# 73 !82# 11032���� 38 !44# 9 38 22
−�CF�for�investm. €m !36# !107# 126 !27# 1442������ 25 28 34 75 143
FCF €m 696 !197# !219# !87# 193 519 174 58 35 785
2,328 2,322 2,315 2,330 2,330 2,316 1,575 1,581 1,595 1,595Employees�!Corporate#
2007/08 2008/09
Corporate/Consolidation:�Overview
Corporate/Consolidation
PresentationThyssenKruppGroup
December2009
63
Major�Nonrecurring�Items�!I#
Business�Area Q1 Q2 Q3 Q4 FY
Steel:
Project�costs�TK�CSA !57# !17# !8# !88# 11702
Project�costs�NAFTA�Steel !19# !5# !11# !9# 1442
Restructuring�Metal�Forming Steel�Europe !8# !3# !11# !37# 1592
Restructuring�TK�Steel Steel�Europe !126# !1# 11272
Restructuring�Color/Construction Steel�Europe !5# !18# 1232
Other�restructuring !4# !24# 1282
Impairment�Metal�Forming Steel�Europe !6# 162
Impairment�Color/Construction Steel�Europe !3# 132
Other�impairments !5# !15# 1202
Stainless:
Project�costs�NAFTA�Stainless !7# !4# !3# !5# 1192
Restructuring�Nirosta Stainless�Global !46# 1462
Other�restructuring !14# 1142
Impairment�SKS Stainless�Global !60# 1 1592
Impairment�Nirosta Stainless�Global !46# 1462
Other�impairments !2# !11# 1132
Segment
2008/09
PresentationThyssenKruppGroup
December2009
64
Major�Nonrecurring�Items�!II#
Business�Area Q1 Q2 Q3 Q4 FY
Technologies:
Restructuring�System�Engineering Plant�Technology !1# !22# 1232
Restructuring�Transrapid Plant�Technology !5# !10# 1152
Restructuring�Forging�Group Components�Technology !19# !12# !97# 11282
Restructuring�Bilstein Components�Technology !2# !5# !12# 1192
Restructuring�Presta�Steering Components�Technology !2# !1# !10# 1132
Restructuring�Waupaca Components�Technology !3# 132
Restructuring�Marine�Systems Marine�Systems !7# !57# !163# 12272
Other�restructuring !1# !2# 132
Impairment�Transrapid Plant�Technology !7# 172
Impairment�Forging�Group Components�Technology !2# !35# 1372����
Impairment�Bilstein Components�Technology !22# 1222����
Impairment�Presta�Steering Components�Technology !1# !8# !5# 1142����
Impairment�Waupaca Components�Technology !76# 1762����
Impairment�Marine�Systems Marine�Systems !13# !20# !174# 12072��
Other�impairments !2# !5# 172�������
Divestment�Bilstein Components�Technology 2 2��������
Divestment�Nobiskrug Marine�Systems !31# 1 1302����
Other�divestments 8 10 18������
Segment
2008/09
PresentationThyssenKruppGroup
December2009
65
Business�Area Q1 Q2 Q3 Q4 FY
Elevator:
Restructuring�Fahrtreppen�Hamburg Elevator�Technology !26# 1262
Other�Restructuring !2# !2# !2# 162
Impairment�Fahrtreppen�Hamburg Elevator�Technology !2# 122
Services:
Restructuring�Material�Services�International Materials�Services !72# 1722
Other�Restructuring !12# !11# 1232
Corporate:
Other�Restructuring !13# 1132
Group: 1932 11722 13202 11,0452 11,6302
Segment
2008/09
Major�Nonrecurring�Items�!III#
PresentationThyssenKruppGroup
December2009
66
Overview�Business�Areas�– FY�2008/09
Steel�
Europe
Steel�
Americas
Stainless�
Global
Materials�
Services
Elevator�
Technology
Plant�
Technology
Components�
Technology
Marine�
Systems
Order�intake €m 7,892 0 4,147 12,085 5,038 3,538 4,177 870
Sales €m 9,570 0 4,486 12,815 5,308 4,450 4,603 1,594
EBITDA €m 487 !73# !600# !38# 640 206 35 !319#
EBIT� €m !134# !77# !864# !211# 570 163 !396# !543#
EBT €m !197# !216# !926# !295# 570 236 !458# !554#
Capital�Employed €m 5,864 3,475 3,240 3,943 1,554 !1,034# 3,011 379
Employees 36,416 1,659 11,755 44,316 42,698 13,043 27,973 7,770
(preliminarynumbers;earningsadjustedforinternalreallocation)
PresentationThyssenKruppGroup
December2009
67
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.”