ThyssenKrupp Technologies Strategic Focus – Leading … · Strategic Objectives ... Plan 07/08...

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ThyssenKrupp Technologies

TK Technologies – London, May 2008

ThyssenKrupp TechnologiesStrategic Focus – Leading-edge Technology – Value Driver

LondonMay 2008

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• Overview

• Value Driver

• Portfolio

• Potential for ThyssenKrupp Technologies

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Sales €51.7 bn • EBT €3,330 m • TKVA €2,108 m • Employees 191,350

ThyssenKrupp AG

Services

• Materials Services International

• Materials Services North America

• Industrial Services• Special Products

Sales €16.7 bnEBT €704 mTKVA €487 m Employees 43,012

•PlantTechnology

•Marine Systems

•Mechanical Components

•Automotive Solutions

•Transrapid

• 4 regional business units

• Escalators/Passenger Boarding Bridges

• Accessibility

Sales €11.5 bnEBT €544 mTKVA €348 mEmployees 54,762

Elevator

Sales €4.7 bnEBT* €(113) mTKVA* €(226) mEmployees 39,501

StainlessSteel

Sales €13.2 bnEBT €1,662 mTKVA €1,138 mEmployees 39,559

Sales €8.7 bnEBT €777 mTKVA €507 mEmployees 12,182

ThyssenKrupp Group FY 2006/07

Inter-segment sales not consolidated * incl. EU fine

• Corporate• Steelmaking• Industry• Auto• Processing

• Nirosta• Acciai Speciali

Terni• Mexinox• Shanghai Krupp

Stainless• Stainless Int.• VDM

Technologies

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ThyssenKrupp Technologies Segment

PlantTechnology

MarineSystems

Sales: €2.0 bnEmployees: 8,800


Mechanical Components


AutomotiveSolutions


ThyssenKrupp TechnologiesSales: € 11.5 bn Employees: 54,762

Sales 2006/07; Employees: 30. Sep. 2007; rounded

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Strategic Objectives

Sustainable value driver and cash provider

Market leadership with top 1-3 positions

Technology leadership and development of innovative products

with high customer value

Expansion of service business and continuous efficiency improvement

International presence in relevant growth markets

Focus on customers through decentralized company management

Highly qualified and committed workforce

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215 34

8 530

2528

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ThyssenKrupp Technologies: Key Figures 05/06 - 09/10

EBT (€ m)

05/06 06/07

Order intake (€ bn) Sales (€ bn)

09/10Target

05/06 09/10Target

410 54

4 750

05/06 09/10Target

05/06 09/10Target

TKVA (€ m) / ROCE %

- ROCE %

06/07

06/0706/07

1314

15

11 1214

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2nd Quarter Results ThyssenKrupp Technologies (€ m)

Sales

5,5965,851

+ 5 %

H1 06/07 H1 07/08

EBT

Q2 06/07 Q3 06/07 Q4 06/07 Q1 07/08

+ 72 %

108

155133

179

186

Q2 07/08

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48 %35 %

17 % 5 %

39 %

Salescoverage= 87 %

Salescoverage= 87 %

13 %

>12 >12

>12 >12

08/09Plan

07/08Forecast

10/11Plan

09/10Plan

11/12Plan

>12

6 %

Sales in € bn

High Visibility: 87% of this year’s business already in hand

Sales cover from orders in hand (March 31, 2008)Order intake

Sales realized to March 2008

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• Overview

• Value Driver

• Portfolio


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ThyssenKrupp Technologies: Integration of the Automotive Segment

ThyssenKrupp Automotive

ThyssenKrupp Automotive

ThyssenKruppTechnologies

ThyssenKruppTechnologies



Thyssen Industrie

Thyssen Industrie

Krupp Hoesch Industries

Krupp Hoesch Industries

Krupp Engineering

Krupp Engineering


PlantTechnology

AutomotiveSolutions

MarineSystems


Portfoliooptimization



23 Portfolio activities



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Active Portfolio Management to support our Strategy

Note: Acquisitions and disinvestments accumulated, sales figures rounded

Portfolio changes 2006/07 Portfolio changes since October 2007

(+) Uhde Mexico(-) Budd

(-) Fundicoes

(-) FlachbaugruppeKassel

(-) Germanischer Lloyd

(-) Stahlbau Berlin

(+) EADS Naval

(+) A-C Equipment

(-) Aventec

(-) BilsteinWagenheber

(-) Umformtechnik (Reallocation)

(-) BVI Wehrtechnik

(-) Intecsa Uhde

(-) Chemgineering

(+) DRECON

(-) Rolling Stock

(+) Forteq

(-) Präzisions-schmiede

(-) Kecskemet (Drauz Nothelfer)

(-) Nobiskrug

(-) Ravensburg(Drauz Nothelfer) (+) Shedden Uhde

Divestments: Acquisitions:Divestments:Acquisitions:

7 Portfolio changes> Sales € 0.5 bn

16 Portfolio changes> Sales € 2.5 bn

(-) Lasertechnik(Drauz Nothelfer)

MS

AS

AS

AS

MC

MC

PT

PT

PT

MS

MC

PT

PT

AS

AS

MS

AS

MC

MS

MS

AS

AS

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• Overview

• Value Driver

• Portfolio


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Mega-trend: Raw MaterialsMining and refining of raw materials Chemical intermediates and end products

Fertilizer Electrolysis

Coking Plant Biotechnology

Gas Technology Refinery Technology

Polymers Polyester

Oil sand

GoldGold

Black CoalBlack CoalDiamondsDiamonds

Limestone

CopperCopper

Brown CoalBrown Coal

Bauxite

Iron OreIron Ore

PhosphateSulfurSulfur

NickelNickel

Note: Strip miningwithout shovel- truck

About 30 % of the world’s raw materials are mined, processed and

handled with systems by ThyssenKrupp

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Worldwide reserves of

approx. 650 bn barrels,

thereof >80% in Canada (Alberta)

These oil reserves are bigger than

those of Saudi Arabia

With Canada’s deposits,

today’s world demand for oil could

be met for the next 55 years

With rising oil prices,

mining has now become profitable

as breakeven lies around

US $ 20/barrel

Mega-trend: Raw Materials Plant Technology and Oil Sand Mining“Canadian Natural Resources”

Oil sand deposits in Canada

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Mega-trend: FoodRed alert: Food emergency Growing demand for fertilizers

Growing demand for fertilizer plants

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Mega-trend: Energy and Environmental Protection

Potential for Technologies - Project CO2-NTRA

Bioethanol/biodiesel

Wind energy

Hydrogen / fuel cell

Global warming due to CO2 emissions

Oil sand / oil shale

Polyester (lactic acid)

Refinery technology

Coal gasification

Lightweight components

CO2 disposal

Global energy requirements

1900

420,000

280,000

140,000

1940 1960 1980 2000 2020 2040 20601920

TWh

Fossil energy resources are not sufficient to meet the energy needs of the growing world population.

Fossilfuels

Fossilfuels

Reducedconsumption

Reducedconsumption

Renewableenergies

Renewableenergies

New formsof energy

New formsof energy

Rising energy requirements

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EnviNOx – Reduction of Greenhouse Gas

The greenhouse effect of N0x is 300 times worse than CO2

More than 5% of the greenhouse effect is a result of nitrous oxide emissions

300 plants worldwide emit about 400,000 t

Environmental FactsEnvinNOx Plant

Environmental Benefits

EnviNOx eliminates 98% of N2O emissions

Saving potential: 120 m t CO2 per year

Pollution of 30 million cars per year

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Cement Industry causes 7.5 % of Worldwide CO2 Emissions

The POLYSIUS “Refit Package” significantly reduces emissions

Performance

Heatrequirement

NOx

CO2

SO2

-95 %

-80%

-20%-10%

25%

The Solution:

Example: Spanish customer

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Fertilizer No. 1 World

(Ammonia & Urea) (30 % Market share)

Electrolysis No. 1 World

(Chlorine + Sodium hydroxide ) (45 % Market share)

Polymers No. 2 World

(PVC, HDPE*, PET) (20 % Market share)

Coke plant technologies No. 1 World

(coke oven batteries) (40 % Market share)

* BASELL-process

Uhde achieved excellent Market Positions with leading Edge Technology

Market position Uhde

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Worldwide Engineering Network enables technological LeadershipThe only limit to growth: Shortage of highly skilled engineers

More than 200 patents and utility models registered in 06/07

On average,more than 100

patents and utilitymodels are

registered each year

ø

Years 1992 -2006

Figures in brackets = no. of employees at Sep. 30, 2007, rounded; Other R&D centers <100 employees

R&DBasic

EngineeringDetail

EngineeringProject Mgmt.

Canada

Brazil

USA

Chile

Argentine

South Africa (220)

Thailand

Australia(110)

Russia (320)

Singapore

Europe (4,230)

Saudi ArabiaChina

Mexico(340)

India (2,370)

More than half of all engineers at

ThyssenKrupp work for Technologies

4 %

1 %

16 %

5 %

20 %

54 %TKT

TKS

TKL

TKE

TKX

Corp.

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Mega-trend: BRIC and Asia/Pacific

Emerging markets Asia

Engineering Engineering

GrowingmobilityGrowingmobility

India+6 to 7 % p.a.*

China+8 to 9 % p.a.*

Asia (rest)ca. +5 % p.a.*

* Forecast GDP 2006 to 2010

6,000

9,000

B

R

I

C

42

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+80 %

20072000 20072000

EmployeesActive units (plants)

+50%

Russia+5 to 6% p.a.*

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Growth of Wind Energy in BRIC Countries

Figures in Giga Watt per year new study

ThyssenKrupp components are essential for wind turbines

5 bearings for every wind turbine

0

10

20

30

40

50

60

1999

2001

2003

2005

2007

2009

2011

2013

2015

Installed Capacity for Wind Energy

Study BTM 2006 Study BTM 2007 Actual

Bearings in Wind Energy Plants

BTM = Birger T. Madsen, Consult Danish Energy Agency

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Mega-trend: Middle EastThe Arabic World is Moving towards Urban Cities

Dubai to become the No.1 logistic hub

Top 3 Financial centre after London & NY

Total = $ 955 bn CAPEX 2006

(under construction/planned)

Currently over $500 bn planned

construction projects in MENA as “key

driver” of demand growth for cement

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Currently over $500 bn Planned Construction Projects in MENAKey driver of demand growth for cement

= Investment volume in bn $

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152

20

15

52

2152

4

164

3

5

27

11 3

11 12 275

56 3 2

UAE with another $200B of planned

construction projects

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• Overview

• Value Driver

• Portfolio


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ThyssenKrupp Technologies: “Value Driver and Cash Provider”

1. Securing high returns

3. Creating value

2. Generating profits

TK Technologies’ Goals Key figures 06/07

5. Providing cash

4. Providing sufficient funds

ROCE 25%

TKVA € 348 m

EBT € 544 m

OCF € 627 m

Net financial funds> € 2 bn

Goals 09/10

ROCE 28%

TKVA € 530 m

EBT € 750 m

OCF close to € 1 bn

Net financial funds> € 2 bn

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ThyssenKrupp Technologies: Strategic Potential - Outlook EBT development in million Euros

06/07 09/10Target

Long-termStrategy

410

750

€ 1 bn

340

456

Today

Potential

New Level

Roadmap ThyssenKrupp Technologies

05/06

544

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ThyssenKrupp Technologies: Strategic Position

Four strategic business unitsOngoing optimization of portfolioConcentration on powerful business unitsWorld market leadership with TOP 1-3 positions

Strategic focus Mega-trend: Raw materials (mining and processing)Mega-trend: Food (fertilizer plants)Mega-trend: Energy/Environment (renewable and fossil)Mega-trend: Security (surface vessel and submarine)Mega-trend: Asia / Pacific (engineering and components)Mega-trend: Middle East (infrastructure and industry)

Growth and profitability: “Value Driver - Cash Provider”EBT-goal € 750 mTKVA-goal € 530 mROCE 28 %

ThyssenKrupp: Leading-edge TechnologyInnovations and technological competenceTechnology leadershipSophisticated high-tech products

Plant Technology

Marine Systems


TOP 1-2

Automotive Solutions

TOP 1

TOP 1

TOP 1-3

Transrapid


PlantTechnology

MarineSystems


AutomotiveSolutions

Targets 2009/10

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Leading-edgeTechnology

ThyssenKrupp Technologies Strategic Focus – Leading … · Strategic Objectives ... Plan 07/08...

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