ZB Finanzen. ThyssenKrupp

Transcription

1 ZB Finanzen 0

2 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Agenda Group Financials Segment Highlights Steel, Stainless: Ramp-Up Concepts in NAFTA and Brazil Technologies, Elevator: Performance of Capital Goods Businesses Summary

3 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Group Overview & Reorganization AG Inter-segmentsalesnotconsolidated FY 2007/08: Sales 53,426 m EBT 3,128 m TKVA 1,916 m Employees 199,374 Steel Stainless Technologies Elevator Services Sales 14.4 bn EBT 1,540 m Sales 7.4 bn EBT 126 m Sales 12.4 bn EBT 741 m Sales 4.9 bn EBT 434 m Sales 17.3 bn EBT 750 m Reorganization Strategically centralized and operationally decentralized Sustainable cost savings of ~ 0.5 billion per year Greater internal and external transparency AG effectiveas of October 1st, 2009 Steel Europe Steel Americas Stainless Global Materials Services Elevator Technology Plant Technology Components Technology Marine Systems Materials Technologies Business Services

4 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Achievements: Efficiency Projects Portfolio Efficiency Cost savings NWC release FCF generation Net debt reduction Restructuring/Impairments > 750 m management gains ytd 1,523 m across all segments in Q3 490 m in Q3 565 m decrease in Q3 440 m charges ytd Projects Capex reduction Financing Projects Americas < 1 bn spent in Q3 3 bn bonds issuance ytd Market-/cash-oriented ramp-up Portfolio Value crystallization Cash Equity MoU with Vale, increase of stake in TK CSA to 26.87% from 10% for 965 m ~ 900 m at TK level Capital infusion into TK CSA

5 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Group Overview Q3 2008/09 Summary Difficult economic environment prevailing First signs of stabilization towards the end of Q3 Limited visibility on real demand Insufficient prices and volumes at materials-related businesses; inventory writedowns and windfall losses mainly at Services Mixed picture at Technologies; continuing good performance at Elevator

6 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Group Financials Order Intake and Sales Order intake million Sales million 2008/09 7,926* 2008/09 9,299 7,642* 28,455* 9,859 30,680 12,887 Q1 Q2 Q3 9M * including cancellations container shipsand mega yachts Q2: ~ 100 m, Q3: ~ 500 m 11,522 Q1 Q2 Q3 9M 2007/08 14, /08 14,181 14,084 41,535 13,199 39,650 13,270 Q1 Q2 Q3 9M 12,270 Q1 Q2 Q3 9M

7 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Group Financials EBT EBT as reported million EBT before major nonrecurring items million 2008/ M: inventory writedowns and windfall losses ~ 970 m thereof m : 2008/ Q1 Q2 Q M Q1 Q2 Q3 9M 2007/ Q1 Q2 Q3 Stainless Services Others /08 1, , , Q1 Q2 Q3 9M Q1 Q2 Q3 9M

8 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Segment Overview Quarterly EBT 2007/ /09 million Q3 9 months Q2 Q3 9 months Steel 389 1, before major nonrecurring items 534 1, Stainless before major nonrecurring items Technologies before major nonrecurring items Elevator before major nonrecurring items Services before major nonrecurring items Corporate Consolidation before major nonrecurring items Group 909 2, Group before major nonrecurring items 1,073 2,

9 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Efficiency Improvement Restructuring and Impairments Efforts for future cost savings gaining momentum restructuring payback period 12 to 24 months million Impairments Restructuring >840 >400 across all segments Target: Sustainable cost reduction of > 1 bn from FY 2010/11 by: - Initiatives* - Restructuring Q1 Q2 Q3 Q4E 2008/09E * Reorganization NeO, TK PLuS

10 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Effective Measures to Reduce Capex Implemented Capital expenditures program billion 4.3 <1.4 <4.5 Maintenance capex and major investment projects /08 Q1 Q2 Q3 Q4 2008/09E 2009/10E 2008/ / / /09E

11 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Solid Financial Situation No Short-Term Refinancing Needs Liquidity analysis and maturity profile of gross financial debt million 8,835 > 755 Total: 8,357 6,639 3,600 Available committed credit facilities 2,819 4,644 Cash and cash equivalents 3,820* 5,235* ,765 March 31, 2009 June 30, 2009 Q4 2008/ / / / /13 after 2012/13 6 % 3 % 11 % 3 % 21 % 56 % * incl. securities of 132 m Q2 and 141 m Q3 9 %

12 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, MoU with Vale S.A. on TK CSA Vale increases stake in TK CSA from 10% to 26.87% TK: 73.13% Capital increase at TK CSA by 965 m Operating business activity and industrial leadership solely with Closing expected by September 2009 Crystallization of TK CSA value ~ 5.6 bn Strengthening of TK balance sheet - Equity through capital infusion - Net debt reduction through ~ 900 m cash inflow

13 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Group Outlook 2008/09 EBT before major nonrecurring items EBT as reported Restructuring and impairments Capex High three-digit million negative including: substantial inventory writedowns and windfall losses Impacted by: Significant restructuring and impairment charges to achieve major cost savings in the future Project costs for the new steel plants > 840 m > 400 m expected in Q4 < 4.5 bn NWC release ~ 2.5 bn Net debt < 3.5 bn excluding any effects from CSA/Vale transaction

14 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Agenda Group Financials Segment Highlights Steel, Stainless: Ramp-Up Concepts in NAFTA and Brazil Technologies, Elevator: Performance of Capital Goods Businesses Summary

15 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Steel: Split Ramp-Up Maximizes Flexible Response to Market Changes TK CSA: Split Ramp-Up m t slab production run-rate potential marketoriented upside Line #1 Line #2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Ramp-Up by Key Facilities BF#1 BF#2 Converter/ #1 Cont. Caster #2 HSM TKS USA Ready Start Ready Ready Start ReadyStart Ready Start Start Start Start End of project phase

16 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Steel: Transatlantic Strategy Based on Optimum Cost-Quality Position Industrial Cost Curve 2012 Hot-Rolling Capacities, NAFTA USD/t Premium quality & technology leadership Margin opportunity! Cost competitiveness USD/t; m t/yr Øprices TK BA Steel Americas Øprices NAFTA Øcash cost HRC NAFTA cash cost HRC TK BA Steel Americas hot-rolling capacities m t/yr Business Area Steel Americas with strong cost and quality position Even based on conservative assumptions: slow market recovery and ramp-up current raw material and steel prices Significant margin and value opportunity for the Group

17 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Stainless: Cash- and Market-Oriented Adjustments with Maximum Flexibility! Ramp-Up Curve of Cold-Rolled Shipments and Melt Shop ,000 t/ quarter Plan Feb 09 Melt shop capacity: ~ 900,000 t/year Cold-rolled capacity: ~ 350,000 t/year New Base Case Sep 09 1,000 t/quarter Cash- and market-oriented Ramp-up of Stainless USA SoP1 st CRM in calendar Q installation of equipment well advanced >50% of shipments via TK internal SSC tapping into the 60 + segment Plan Feb 09 market-oriented upside New Base Case Sep 09 market-oriented upside Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009/ / / / /14 SoP Meltshop calendar Q further postponement by 2 yrs Maximum built-in flexibility continuous monitoring of market recovery flexible acceleration of ramp-up possible at any time

18 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Stainless: USA Plant with Attractive Cost Position Industrial Cost Curve USA Stainless Cold Rolled cash cost USD/t Stainless USA USD/t; 1,000 t/yr Industrial rationale unchanged Stainless USA with strong cost and quality position integrated, single-site and purely $-based production synergies with Steel USA and existing SSC network progressive penetration of NAFTA market based on established strong market position Even based on conservative assumptions and cautious ramp-up ,000 1,500 2,000 cold-rolling capacities m t/yr Source: McKinsey; JFK; Metal Bulletin Significant margin and value opportunity for the Group

19 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Services: Overview Services Value oriented services in materials procurement and production processes for industrial clients Materials Services International Materials Services North America Industrial Services Special Products For Sale Sales 8.5 bn Employees 11,889 Sales 1.8 bn Employees 3,048 Sales 2.1 bn Employees 30,181 Sales 4.9 bn Employees 1,178 Leading positions in Germany, Europe and North America Main Competitors No. 1 in Germany Top 2-5 in Europe No. 1 in the world for scaffolding services No. 1 in Germany No. 1-2 in Europe Top 1-10 in the world Klöckner&Co., Vink Holding, Carl Spaeter, Schmolz&Bickenbach Ryerson Tull, Reliance Steel Bilfinger Berger Industrial Services, Harsco, DIW, ISS Bauer AG, Glencore, Salzgitter Handel As of 2007/08

20 Technologies: Global Player and Leading World Market Positions 19 Plant Technology Top 1-3 Marine Systems Top 1 Mechanical Components Top 1 Automotive Solutions Top 1-3 Sales by region: Globally diversified Strong international presence: 273 locations Asia 15 South America/ Rest of world 16 % NAFTA 19 Rest of Europe 3 Germany 25 Rest of EU 22 NAFTA 45 South America 16 Germany 72 Europe 72 Africa 7 Asia/ Pacific 61 FY 2007/08

21 Credit Suisse 2009 Capital Goods and Aerospace and Defence Conference, September 10, Strong Order Backlog and High Sales Coverage by Orders on Hand Order backlog million Sales coverage % 15,324 16,144 15,743 Automotive Solutions Mechanical Components Marine Systems Sales covered from orders on hand June 30, 2009 Expected sales 2006/ /08 June 30, 2009 Order backlog 1.4x sales Plant Technology Strongest order backlog in Plant Technology ~2x sales and Marine Systems ~4x sales, mainly naval shipbuilding Sales coverage 50% 2009/10 Plan 20% 2010/11 Plan

22 Technologies: Sales and EBT by Business Units 21 Sales Split % EBT Split & Trend % 12.4 bn 8.1 bn 741 m EBT trend Automotive Solutions Automotive Solutions Mechanical Components Mechanical Components Marine Systems Marine Systems Plant Technology Plant Technology 2007/08 9M 2008/ / /09

23 Technologies: Business Unit Plant Technology 22 Plant Technology Marine Systems Mechanical Components Automotive Solutions Full range of services in specialty, large-scale plant construction and equipment Uhde Polysius Fördertechnik Chemical, refining and other industrial plants Plants & equipment for cement and minerals industry Solutions for mining, materials handling and mineral processing Electrolysis Fertilizers Cement plants Mining equipment Polymers Grinding plants Crusher plants

24 Plant Technology: Excellent Market Positions Selected Examples 23 Fertilizer Ammonia & Urea Electrolysis Chlorine, Sodium hydroxide Polymers PVC, HDPE, PET Uhde No. 1 Uhde No. 1 Uhde No. 2 Coke plant technologies Coke oven batteries Cement production Mining & Material Handling Uhde No. 1 Polysius No. 3 Fördertechnik No. 1

25 Uhde: Focus on Plastics 24 Over proportionate growth for plastics in growth regions expected Per-capitaconsumption of plastics in kg Consumption of plastics in million t pa North America Western Europe Japan Africa/Middle East Source: Plastic Europe Deutschland, WG Statistics and Market Research 2005 Eastern Europe Asia Latin America Worldwide 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 Salt Caustic soda Chlorine Ethylene Propylene Ethylene dichloride Propylene oxide Toluene p-xylene Vinyl chloride (VCM) Polyvinyl chloride Polyethylene LLD, LD, HD Polypropylene Polyester PET, PBT Uhde developing technologies for plastics of tomorrow, based on renewable raw materials Benzene o-xylene m-xylene Polyamide (Nylon) Polylactic acid

26 Technologies: Business Unit Marine Systems 25 Plant Technology Marine Systems Mechanical Components Automotive Solutions Market and technology leadership in fregates, corvettes, submarines and mega-yachts Naval Shipbuilding Mega Yachts Repair, Conversion, Modernization & Components Submarines Frigates Corvettes

27 Naval Shipbuilding: Leading Market Positions & Technologies 26 Market share Marine Systems Technology Leadership ~ 40 ~ 60 Fuel cell technology o Air-independent propulsion system o Submerged time 4-5 x greater than with common battery operation Naval surface vessels Market size: ~ 3bn Track Record Non-nuclear submarines Market size: ~ 1.5bn In the past 50 years -more than 240 naval vessels frigates, corvettes, special vessels built for 20 countries - more than 180 submarines built for 17 countries Latest large orders FY 2008/09 : Submarine material packages for South Korea, Italy and Turkey total volume ~ 3.8bn Modern Propulsion MEKO design concept Stealth o Gas turbines and water jets for powerful propulsion o Acceleration to > 30 knots o Crash stop 3 ship lenghts o Configuration and Mission Modularity o Fast exchange of mission capabilities o Almost impossible to locate o Additional reflectors needed for normal maritime traffic

28 Technologies: Business Unit Mechanical Components 27 Plant Technology Marine Systems Mechanical Components Automotive Solutions Slewing bearings and seamless rolled rings Seamless rolled rings Rothe Erde Largediameter slewing bearings Berco Components and systems for earth-moving and special crawler-tracked machines Track for earthmoving machines Presta Camshafts Forging Group, Waupaca Components for the Automotive industry Crankshafts Assembled camshafts Casting components

29 Rothe Erde: Expansion Strategy 28 Market outlook forwind energy annual growth in GW according to BTM-Study 2009 North America Europe Asia thereof China GW GW GW GW BTM = Birger T. Madsen, Consult Danish Energy Agency Rothe Erde production capacities and expansion strategy North America Europe Asia thereof China Existing production capacities Capacity expansion

30 Technologies: Business Unit Automotive Solutions 29 Plant Technology Marine Systems Mechanical Components Automotive Solutions Presta Steering Bilstein Group System Engineering Steering shafts, steering columns and steering gears Steering column Steering shafts Steering gears Damper & suspension components, axle system solutions Axle systems Dampers& suspensions Assembly, body construction and testing systems Assembly systems Testing solutions Body-in-white

31 Technologies: New Structure 30 Organizational Structure until Sep. 30, 2009: Reporting level 5 segment Steel Stainless Technologies Elevator Services Plant Technology Marine Systems Mechanical Components Automotive Solutions -Uhde -Polysius - Fördertechnik - Rothe Erde -Berco - Presta Camshafts - Forging Group -Waupaca - Presta Steering - Bilstein Group - System Engineering Organizational Structure from Oct. 01, 2009: Reporting level 8 business areas Steel Europe Steel Americas Stainless Global Materials Services Elevator Technology Plant Technology Components Technology Marine Systems -Uhde -Polysius - Fördertechnik -System Engineering - Rothe Erde -Berco - Presta Camshafts - Forging Group -Waupaca - Presta Steering - Bilstein Group

32 Elevator: Sales and EBT by Business Units 31 Sales Split % EBT as reported 4.9 bn 4.0 bn > 500 m Accessibility Escalators/PBB m Asia/Pacific Americas Southern Europe/Africa/ Middle East Central/Eastern/ Northern Europe /08 9M 2008/ / /09 Inter-operating group sales not consolidated

33 Elevator: New Important Orders 9M 2008/09 Buildings 32 PalaisQuartier, Frankfurt, Germany NI PalaisQuartier 48 elevators Frankfurt, Germany incl. 1 TWIN 28 escalators NI Deutsche Börse 15 elevators Eschborn, Germany NI University of Kentucky 24 elevators Lexington, USA NI Latifa Towers 19 elevators Dubai, UAE incl. 2 TWINs NI Seo-Myeon Residential 55 elevators Busan, South Korea 13 escalators NI = New installation

34 Elevator: New Important Orders 9M 2008/09 Metro Lines and Airports 33 NI Rome, Italy 41 elevators 88 escalators Rome, Line C Chongqing, Line 3 NI Cairo, Egypt 13 elevators 64 escalators NI Chongqing, China 87 escalators Sao Paulo, Linha Verde Madrid NI Sao Paulo, Brazil 65 escalators Mod Madrid, Spain 181 escalators Doha Egypt NI Doha, Qatar 87 passenger boarding bridges NI = New installation Mod = Modernization

35 Agenda 34 Group Financials Segment Highlights Steel, Stainless: Ramp-Up Concepts in NAFTA and Brazil Technologies, Elevator: Performance of Capital Goods Businesses Summary

36 Major Transformation Based on Cost Optimization and Growth 35 Efficiency Progress reflected in specified guidance for: net debt: < 3.5 bn at end of FY 2008/09 restructuring and impairments: > 840 m in FY 2008/09 net working capital release: ~ 2.5 bn New reporting structure will provide greater external transparency, especially for Technologies Group fixed cost base will be reduced by > 1 bn sustainable savings within next 15 months Projects Americas projects provide: additional improvement of cost position additional flexible leverage to market developments Portfolio Further progress in portfolio optimization upcoming early next fiscal year

37 Financial Calendar 2009/ October 22, 2009 to November 26, 2009 November 27, 2009 January 21, 2010 February 12, 2010 May 12, 2010 August 13, 2010 Quiet Period Analysts and Investors Conference, Essen/Germany Annual Press Conference, Essen/Germany Annual General Meeting, Bochum/Germany Interim Report 1st quarter 2009/10 Oct to Dec Conference Call with analysts and investors Interim Report 1st half 2009/10 Oct to Mar Conference Call with analysts and investors Interim Report 9 months 2009/10 Oct to Jun Conference Call with analysts and investors

38 How to Contact AG Investor Relations 37 Institutional Investors and Analysts: Phone: Fax: To be added to the IR mailing list, send us a brief with your details! Internet:

39 Group Overview I / / /09 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake m 54,605 13,270 14,084 14,181 13,670 55,205 12,887 7,642 7,926 Sales m 51,723 12,270 13,199 14,181 13,776 53,426 11,522 9,859 9,299 EBITDA m 5,254 1,083 1,197 1,366 1,330 4, EBIT m 3, , , EBT m 3, , Net income m 2, , Earnings per share TK Value Added m 2, , ,030 ROCE % Capital Employed m 18,000 18,581 18,955 19,211 19,478 19,478 21,025 21,270 20,975 Goodwill m 3,795 3,791 3,755 3,779 3,858 3,858 3,846 3,942 3,927 ROCE based on 3, 6, 9 and 12 months

40 Reconciliation of EBT Effects by Major Nonrecurring Items 39 9 months 2008/09 million Major nonrecurring items 2008/09 million EBT as reported 987 Major nonrecurring items Q2 Q Q3 320 including 970 m inventory writedowns and windfall losses EBT before major nonrecurring items 402 Project costs thereof: TK CSA, Brazil Steel/Stainless Alabama Steel: - restructuring - restructuring SSC - impairment SSC - restructuring Metal Forming Stainless: asset impairment Technologies: -restructuring/disp. -asset impairment Elevator: restructuring Services: restructuring Q1 Q Q M

41 Major Nonrecurring Items 40 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Project costs: thereof: TK CSA NAFTA Steel/Stainless Steel: Restructuring Restructuring SSC Impairment SSC Restr./disposal Metal Forming Impairment Metal Forming Stainless: Asset impairment Technologies: Restructuring/disposals Restructuring Drauz Nothelfer Asset Impairment Elevator: Restructuring EU fine Services: Restructuring 2006/ / /09 Corporate: Disposal gain real estate Group

42 Group Overview II / / /09 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Capital expenditures* m 2, , ,349 4,227 1,105 1, Depreciation/amort. m 1, , Operating cash flow m 2, , ,170 3, ,483 1,331 + Cash flow from divestments m Cash flow from investments m 2, , ,349 4,227 1,105 1, Free cash flow m 104 1, , Cash and cash equivalents incl. short-term securities m 3,861 2,612 2,130 2,882 2,832 2,832 3,439 3,820 5,235 Total debt excl. pensions m 20,488 19,641 21,139 23,423 23,603 23,603 24,076 24,150 24,668 Net financial debt m ,988 2,127 1,584 1,584 3,514 3,687 3,122 Employees 191, , , , , , , , ,501 * incl. financial investments

43 Balance Sheet Structure Net financial position, equity and ratios million % 26.7% 22.1% 24.5% 27.4% 27.6% 22.7% Equity ratio 55.2% 34.0% 2.2% 8.4 % 2.1 % 13.8% 33.1% Gearing 11,489 7,671 8,327 7,944 8,927 10,447 9,434 Equity 4,235 2,833 3, * 223 * 1,584 Net financial position Sep 2003 Sep 2004 Sep 2005 Sep 2006 Sep 2007 Sep 2008 June 2009 * Net financial receivables

44 Group Financials Net Income Operating Cash Flow Development of operating cash flow in Q3 2008/09 million Net income Change in accrued pensions D/A Deferred Taxes 148 Others 15 Technologies Stainless Steel 568 1,331 Services 419 Elevator Corporate/ 55 Cons. 121 Net working capital change: 1,523 Operating cash flow

45 Group Financials Net Financial Debt Development of net financial debt in Q3 2008/09 3,687 million 3, Gearing 36.2% 1,331 Free cash flow: Divestments 898 thereof: Steel 572 thereof: TK CSA 274 NAFTA Steel 188 Stainless 79 thereof: NAFTA Stainless 51 Technologies 149 Elevator 18 Services Gearing 33.1% Capex Others Net financial debt June 2009 Net financial debt Mar 2009 Operating cash flow

46 Group Financials Net Income Operating Cash Flow Development of operating cash flow in 9M 2008/09 Elevator million 45 1,954 D/A 1, Net income Change in accrued pensions 63 Deferred Taxes 385 Others 12 Steel 497 Technologies Stainless Services 435 Elevator Corporate/ 196 Cons. 986 Operating cash flow Net working capital change: 1,900

47 Group Financials Net Financial Debt Development of net financial debt in 9M 2008/09 million 46 1,584 Gearing 13.8% 1, Divestments 3,093 thereof: Steel 1,849 thereof: TK CSA 1,123 NAFTA Steel 385 Stainless 218 thereof: NAFTA Stainless 75 Technologies 683 Elevator 88 Services 170 3,122 Gearing 33.1% Net financial debt Sep 2008 Operating cash flow 603 Capex 15 Free cash flow: 950 Dividend Others Net financial debt June 2009

48 Steel: Segment Overview 47 Steel 2006/ / /09 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake m 12,718 3,188 3,986 3,765 3,260 14,199 2,036 1,651 2,321 Sales m 13,209 3,214 3,639 3,902 3,603 14,358 2,925 2,405 2,272 EBITDA m 2, , EBIT m 1, , EBT m 1, , TK Value Added m 1, , ROCE % Capital Employed m 6,557 6,928 7,265 7,509 7,697 7,697 8,999 9,460 9,671 OCF m 1, , CF from divestm. m CF for investm. m 1, , FCF m ,055 1, Employees 39,559 39,922 40,636 40,733 41,311 41,311 40,753 40,071 39,321 ROCE based on 3, 6, 9 and 12 months

49 Long Term Customer Relations Reduce Volatility 48 Sales by maturity FY 2007/08 in % Price index Index Q = 100 Quarterly Half-year 20 9 Sales by industry FY 2007/ Spot 7 Others Construction Packaging 6 4 Mechanical Engineering Trade Annual & >1 year Automotive industry incl. suppliers in % Steel and steelrelated processing Steel All data incl. Q Sources: CRU and own calculations based on CRU, TKS CRU Price index flat carbon steel Steel Price index flat carbon steel, global market CRU

50 Premium Product Portfolio Generates Above-Average Revenues 49 Product portfolio FY 2007/08* in % Revenue/t /t 5% 4% 13% Tailored Blanks Construction Elements Steel Service Steel 2 12% Tinplate % Electrical Steel 23% 2% 9% 7% 10% Coated Products Cold Strip Heavy Plate Medium-wide Strip Hot Strip major European competitors * sales of flat products only 1 datain partpreliminary 2 excl. Metal Forming Source: Company reports, own estimates

51 Steel: Output, Shipments and Revenues per Metric Ton 50 Crude steel output TKS incl. share in HKM 1,000 t/month Shipments: Hot-rolled and cold-rolled products 1,000 t/month HKM share 1,152 1,153 1, / /062006/07 Fiscal year 1,239 1,196 1,129 1, Q1 Q2 Q3 Q4 2007/08 1, Q1 Q2 Q3 2008/09 Cold-rolled Hot-rolled 1,161 1,171 1, ,260 1,308 1,115 1, / /062006/07 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Fiscal year 2007/ / Average revenues per ton, indexed Q1 2004/2005 = Q1 Q2 Q3 Q4 2004/05 Q1 Q2 Q3 Q4 2005/06 Q1 Q2 Q3 Q4 2006/07 Q1 Q2 Q3 2007/08 Q4 Q1 Q2 Q3 2008/09

52 Inventories and Months of Supply 51 Inventories and Months of Supply - Europe Inventories and Months of Supply - USA Inventories China 3.0 Inventories m t MOS months Inventories m st MOS months Inventories m t J'05 J'06 J'07 J'08 J'09 J'05 J'06 J'07 J'08 J'09 A 07 J 07 O 07 J 08 A 08 J 08 O 08 J 09 A 09 J 09 Europe: European SSC: Inventories at month end / flat carbon steel w/o quarto Source s : TKS, EASSC, MAR, MSCI, UBS, MySteel USA: June MSCI inventories, carbon flat rolled China: flat steel inventory in 23 major cities HR, CR and Plate

53 After Massive Drop, Order Intake Showing Signs of Stabilization Order Intake German Steel Industry; January 1991 July ,000 t 5,000 4,500 4,000 3,500 July ,000 2,500 2,000 1,500 1, Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Source: WV

54 Steel Consumption NAFTA: Visibility on Demand Remains Limited 53 Apparent Consumption NAFTA Flat Carbon Steel* f 10f 11f 12f 13f m t/yr Current downturn in NAFTA exaggerated by extreme de-stocking Visibility on speed of real demand recovery remains limited Optimization of industrial concept cash-driven market-oriented maximum flexibility Adjusted ramp-up of CSA implies Capex of 4.7 bn * Flat Products HRC, PLT, CRC, CTD; excl. TMP Sources: CRU Steel Sheet Quarterly June/July 2009 ; WSD Global Steel Mill Product Matrix March 2009 ; own analysis

55 54 Credit Suisse Capital Goods and Aerospace and Defence Conference, September 10, 2009 Temporary De-Coupling of Ramp-Up of CSA and Steel USA BA Steel Americas BA Steel Europe Europe NAFTA 1 Q Duisburg SoP Hot Strip Mill Q Steel USA 2 mid Q Temporary slab supply ex Duisburg 1 to support ramp-up at Steel USA Split Ramp-Up SoP Blast Furnace #1: Q SoP Blast Furnace #2: Q SoP Converter / Continuous Caster 2 Temporary slab supply ex CSA to Europe CSA mid CSA taking over slab supply of Steel USA

56 TK CSA: One of the Most Cost-Efficient Slab Plants in the World Industrial Cost Curve 2012 Global Slab Capacities 55 USD/t; m t/yr cash cost USD/t Top 10% Thyssen Krupp CSA ,000 slab capacities m t/yr Sources: WSD; VDEh Plantfacts; Global Insight; MBR; Metal Expert; SBB; McKinsey; own analysis

57 Competitive Advantage Example: Technology of Hot Strip Mill 56 Head-to-Head Comparison of US Hot Strip Mills Steel USA 7 # Stands e.g., coiled plate market entry 1 Best in Class 6 e.g., superior defect free surface and more consistent mechanical properties Thickness inch Width inch e.g., large diameter pipe requirements

58 Stainless: Segment Overview 57 Stainless 2006/ / /09 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake m 7,684 2,150 2,001 1,732 1,577 7, ,207 Sales m 8,748 1,838 1,955 1,933 1,694 7,420 1, ,030 EBITDA m 1, EBIT m EBT m TK Value Added m ROCE % Capital Employed m 3,827 3,732 3,728 3,715 3,698 3,698 3,636 3,542 3,376 OCF m CF from divestm. m CF for investm. m FCF m Employees 12,182 12,075 12,042 12,037 12,212 12,212 12,167 12,079 11,869 ROCE based on 3, 6, 9 and 12 months

59 Stainless: Increasing Non-Volatile Customer Bases Sales Structure within Stainless Group 58 Stainless Steel Sales by Customer Group Stainless Steel Contract Structure Household Applications Automotive Metal Processing Others 10 5 White Goods Tubes SSC/Trading Long term contracts >1 year Medium term contracts year Short term contracts <0.5 year based on net sales, FY 2007/08 based on Nirosta Shipments 2007/08 Nickel Alloy Sales by Customer Group Stainless Product Portfolio Electronics Hot rolled Chemical/ Energy Oil/ Gas Automotive Aerospace/ Turbines Cold-rolled/ Precision Strip Nickel Alloys Titanium Forging/Tubes based on net sales, FY 2007/08 Distribution based on net sales, FY 2007/08

60 Stainless: Output, Shipments and Revenues per Metric Ton 59 Crude steel output* 1,000 t/month Shipments*: Hot-rolled and cold-rolled products 1,000t/month * including carbon, forging, Ni-Alloys Hot-rolled, including slabs Cold-rolled, including precision strip * not consolidated / /07 Fiscal year Q1 Q2 Q3 2007/08 Q4 Q1 Q2 2008/09 Q3 2005/ /07 Fiscal year Q1 Q2 Q3 2007/08 Q4 Q1 Q2 Q3 2008/09 Average revenues per ton, indexed Q1 2004/2005 = Q1 Q2 Q3 Q4 2004/05 Q1 Q2 Q3 Q4 2005/06 Q1 Q2 Q3 Q4 2006/07 Q1 Q2 Q3 2007/08 Q4 Q1 Q2 Q3 2008/09

61 Market Situation Cold-Rolled Products Germany USA 60 Stock level: INDEX Jan 2005 = 100 Stock Reach: Calendar Days 160 Stock Level Stock Reach 140 Average Stock Reach Stock level: INDEX Jan 2005 = 100 Stock Reach: Calendar Days 160 Stock Level Stock Reach 140 Average Stock Reach Jan 05 May Sep Jan 06 May Sep Jan 07 May Sep Jan 08 May Sep Jan 09 May 0 Jan 05 May Sep Jan 06 May Sep Jan 07 May Sep Jan 08 May Sep Jan 09 May Source: EHV July 2009 Source: MSCI July 2009; shipments and inventory all shapes

62 Price Development and Import Situation Price development: recovery gaining sustainability Cold-rolled importsfrom third countries 000t/Month 61 EUR/t Jan 06 May Sep Jan 07 Base Price EU* Alloy Surcharge EU Nickel May Sep Jan 08 * Base Price Germany, Traders/SSC, 304, 2mm sheet Source: CRU August 2009, Metalprices NICKEL August 2009 May Sep Jan 09 May US$/t , , Source: Eurofer July 2009, TKL 36, Asia Americas Others , , Jan 09 Regional price development* Feb Mar 0 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Apr * AISI CR Flat, 2 mm Source: CRU August 2009 EU+USA, TKL-SKS August 2009 Wuxi Market prices CHINA May China USA Europe

63 Stainless: EBT Development 62 EBT Development m EUR ,220 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2000/ / / / / / / / /09 LIFO * devaluation of inventories ** 9M 2008/09 1,035 Average Weighting * 1,000 * * 126 1, ** * 1,050 * Base Price EUR/t *

64 Stainless Consumption NAFTA: Visibility on Demand Remains Limited 63 Apparent Consumption NAFTA Stainless Cold-Rolled Flat = actual = CRU forecast Nov 2008 = CRU forecast May 2009 = CRU forecast Aug ,000 t/yr Positive Scenario Current downturn in NAFTA exaggerated by extreme de-stocking Visibility on speed of real demand recovery remains limited ,730 Optimization of industrial concept ,450 cash-driven market-oriented extreme de-stocking Worst Case Scenario maximum flexibility Source: CRU, TKL

65 Technologies: Segment Overview 64 Technologies 2006/ / /09 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake m 14,844 3,212 3,108 3,397 3,773 13,490 4,897 1,723 1,367 Sales m 11,523 2,822 3,029 3,357 3,204 12,412 2,921 2,656 2,483 EBITDA m , EBIT m EBT m TK Value Added m ROCE % Capital Employed m 2,239 1,915 1,914 1,904 1,960 1,960 2,399 2,507 2,504 OCF m CF from divestm. m CF for investm. m FCF m Employees 54,762 55,567 53,637 54,334 54,043 54,043 53,167 50,978 49,349 ROCE based on 3, 6, 9 and 12 months

66 Elevator: Segment Overview 65 Elevator 2006/ / /09 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake m 5,281 1,466 1,464 1,324 1,281 5,535 1,562 1,189 1,186 Sales m 4,712 1,184 1,164 1,211 1,371 4,930 1,343 1,293 1,328 EBITDA m 491* EBIT m 405* EBT m 367* TK Value Added m 244* ROCE % 21.4* Capital Employed m 1,896* 1,822 1,783 1,718 1,695 1,695 1,646 1,639 1,596 OCF m 247* CF from divestm. m CF for investm. m FCF m Employees 39,501 40,191 40,873 42,108 42,992 42,992 43,599 43,306 42,761 ROCE based on 3, 6, 9 and 12 months * excl. EU fine 480 m

67 Services: Segment Overview 66 Services 2006/ / /09 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake m 16,823 3,951 4,322 4,677 4,503 17,453 3,746 2,514 2,256 Sales m 16,711 3,867 4,232 4,603 4,634 17,336 3,726 2,903 2,539 EBITDA m EBIT m EBT m TK Value Added m ROCE % Capital Employed m 3,330 3,487 3,659 3,768 3,834 3,834 3,931 3,907 3,726 OCF m CF from divestm. m CF for investm. m FCF m Employees 43,012 43,054 46,318 46,506 46,486 46,486 45,173 44,512 43,620 ROCE based on 3, 6, 9 and 12 months

68 Corporate/Consolidation: Overview 67 Corporate/Consolidation 2006/ / /09 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Order intake m 2, , Sales m 3, , EBITDA m 97 EBIT m 134 EBT m OCF m CF from divestm. m CF for investm. m FCF m Employees Corporate 2,334 2,328 2,322 2,315 2,330 2,330 2,316 1,575 1,581

69 Disclaimer AG 68 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 automotiveindustry, 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.