16TH ANNUAL GENERAL MEETING THYSSENKRUPP AG

Transcription

1 16TH ANNUAL GENERAL MEETING THYSSENKRUPP AG Remarks by Dr. Heinrich Hiesinger Chief Executive Officer Bochum, Developing the future.

2 Overview of Key Figures for FY 13/14 Group back in profit again for first time in 3 years with net income of ~ 195 million; 210 million after deducting minority interest Adjusted EBIT doubled to ~ 1.3 billion Order intake up 7 percent to 41.4 billion Group sales up 7 percent to 41.3 billion Proposal to pay dividend of 0.11 per share 2 Developing the future.

3 Stock Performance Indexed to December 30, 2013 [%] ThyssenKrupp DAX Jan Mar Jun Positive performance as a result of systematic implementation of Strategic Way Forward & efficiency programs Sept Dec Developing the future.

4 Where We Are Now: Turnaround Not Yet Achieved Stabilization Transformation Sustainable Value Generation Turning point! Developing the future.

5 Focus Today Results Fiscal Year 2013/14 Strategic Way Forward and Diversified Industrial Company Targets of Group and Business Areas Strengthening of Integration 5 Developing the future.

6 Adjusted EBIT of Business Areas in 2013/14 in million Capital Goods Businesses Materials Businesses 1, % 1, % / / / /14 6 Developing the future.

7 Overview of Key Financial Ratios Key indicators FY 2013/14 Performance vs. prior year Comment Free cash flow 799 million Second consecutive year clear positive FCF Free cash flow (before divestments) (254) million Settlement paid to Deutsche Bahn Higher net working capital requirement Net financial debt 3.5 billion Reduced by 40% compared with peak of FY 2011/2012 Refinancing 3.25 billion With bond and credit facility, financing measures at attractive interest rates Equity 3.2 billion Dec. 2013: Capital increased by ~ 880 million Closure of Outokumpu and TK Steel USA Gearing 109% Improved by ~92 percentage points 7 Developing the future.

8 Investments in the Future of our Business Areas Investments in billion Main investments in 2013/ CT: Components Technology ET: Elevator Technology Three new plants in China Expansion camshaft technology (Brazil, NAFTA, Germany, China) Expansion and modernization Smaller acquisitions IS: Industrial Solutions Expansion of regional organization Stronger presence in the USA 1.1 MX: Material Services Site for aviation industry in India Modernization of plants in Mexico 2013/14 Total 2011/ /14 SE: Steel Europe Relining of blast furnace 2 in Duisburg Modernization of several units 8 Developing the future.

9 Examples of New Projects and Major Contracts ET: Elevators in Berlin TV tower replaced CT: Steering systems and dampers for new Mercedes S-, C- and E-class ET: 300 and 130 escalators for Beijing and Shenzen metro IS: Construction of cement plant CT: Springs and stabilizers for VW s biggest model platform IS: Construction of cement plant IS: Construction of fertilizer plant IS: Construction of cement plant CT: Slewing bearings for wind industry IS: Major submarine contract CT: Electric assisted steering for Volvo ET: Hand over of TWIN elevators in Olympic Park Observation Tower 9 Developing the future.

10 Strategic Way Forward Diversified Industrial Company ThyssenKrupp Positioning More & Better Change Management People Success Performance Orientation Customers & Markets Financial Stability Strategic Push 10 Developing the future.

11 Diversified Industrial Company Active portfolio management One integrated Group Capital efficiency Diversified Industrial Company Leading market positions Benchmark performance Profitable growth Leading Engineering Competence 11 Developing the future.

12 Optimization of Business Areas + Optimizing the Company Overall Overall company Realizing the strategic benefits of diversification & integration Corporate leadership, support & initiatives Strong parenting framework realizing strategy, scale & scope benefits Business Areas + CT ET IS MX SE AM Integrated and focused Business Areas Focusing on customers, competitiveness and operations Sharpened strategic objectives, programs and roadmaps 12 Developing the future.

13 Targets for our Business Areas Components Technology Elevator Technology Industrial Solutions Materials Services Steel Europe + Steel Americas Focus Profitability Profitability before growth Growth before profitability Profitability before growth Profitability Targets EBIT margin: 6-8% EBIT margin: 15% EBIT: 1 bn EBIT margin: 6-7% Sales: 8 bn Higher earnings Restructuring of AST and VDM Higher earnings Achieve saving targets of > 500 million Going forward: Minimum target of ~ 2 billion adjusted EBIT 13 Developing the future.

14 Successful Example of Integration: InCar plus Our specific know-how and expertise and our open-minded collaborative project approach Customer-oriented solutions and new products Components Technology Industrial Solutions Steel Europe CT 40 new parts: Lower weight Lower fuel consumption Lower CO 2 emissions 14 Developing the future.

15 Successful Example of Integration: ACCEL and MULTI Experience in moving walks and elevators and expertise in linear motors Transrapid Customer-focused solutions and new products ACCEL Components Technology MULTI Elevator Technology Tech Center Carbon Composites 15 Developing the future.

16 Key Integration Levers Stronger customer orientation Regional organization R&D spending Cost synergies IT infrastructure & process harmonization Prerequisite: Joint employee development and exchange and a corporate culture that promotes the ability to collaborate 16 Developing the future.

17 Outlook for FY 2014/15 Key Indicators FY 2013/14 Outlook FY 2014/15 Comment Sales ~ 41.3 billion Growth in single-digit percentage range impact 2015 ~ 1.0 billion Cost reductions of 850 million Total volume raised to 2.5 billion Adjusted EBIT ~ 1.3 billion Increase to at least 1.5 billion Net income 195 million Clear positive net income Free Cash Flow (before divestments) (254) million Clear progress towards at least break-even FCF 17 Developing the future.

18 Our Way Forward Stabilization Financial stability and restructuring of the company Transformation Clear performance targets and continuous improvement Sustainable Value Generation Integrated company with profitable growth Developing the future.