Open House Day Shanghai ThyssenKrupp Elevator Technology Andreas Schierenbeck October 15 th, 2014 0 Developing the future.
Elevator Technology: Financial key figures m FY 9M 9M 9M FY 12/13 12/13 13/14 12/13-13/14 13/14e Order Intake 6,520 4,945 5,074 +3% Sales 6,155 4,482 4,634 +3% EBIT adj. 675 487 531 +9% EBIT% adj. 11.0% 10.9% 11.5% +0.6%p 0.5-0.7%p BCF 652 534 440-18% 1 Developing the future.
Focus on performance EBIT in m Quarter 1 Quarter 2 Quarter 3 Quarter 4 10.5% 11.0% 11.3% 10.0% 10.5% 11.0% 10.3% 11.0% 12.0% 10.3% 11.3% +0.5-0.7%p 142 169 175 132 146 162 148 172 193 165 188 11/12 12/13 13/14 11/12 12/13 13/14 11/12 12/13 13/14 11/12 12/13 13/14e Continuous improvement of profitability 2 Developing the future.
Five initiatives to reach performance and growth target 1 bn 5 Initiatives 587 675 1 Manufacturing New Installation 15% 2 Service Modernization 10.3% 11.0% +0.5-0.7%p 3 Portfolio Restructuring 4 Growth Emerging Markets 5 Mergers & Acquisitions FY 11/12 FY 12/13 FY 13/14e Target 3 Developing the future.
Our strategy EBIT margin 15% EBIT margin 1 bn EBIT Target level Profitability! 1 Manufacturing NI 21 Manufacturing Service Modernization NI 3 Portfolio Restructuring 24 5 Growth Emerging Markets M&A Growth! Sales 4 Developing the future.
World elevator market ~5% p.a. 46 bn 39 bn 59 bn 24% 2011 2013 2019 China elevator market Market volume: ~ 11.1 bn CAGR 12/13-18/19: ~6% >50% of global new installation market 5 Developing the future.
Regional market drivers Service New Installation Balanced 6 Developing the future.
Today s new installation is tomorrow s service Market volume ~ 11.1 bn ~ 1.2 bn ~ 1.6 bn ~ 1.7 bn ~ 1.9 bn ~ 6 bn Service NI China NI India Russia Balanced Brazil US Service Spain 7 Developing the future.
How sustainable is Chinese construction market growth? Diverse views on Chinese Market Different Cases for Market Development BULL CASE BEAR CASE Chinese elevator demand model suggests decline towards 400,000 (20% below 2013) units unless Inventory of unfinished projects will be orderly unwound however we believe Chinese E&E demand is at unsustainable levels Bull Case CAGR: +12% TKE Base Case CAGR: +6% With expected higher elevator penetration rates, we estimate elevator demand will increase c15% each year. Bear Case CAGR: -10% We believe the fundamentals of the Chinese new equipment market will deteriorate. 2008 2010 2012 2014 2016e 2018e 8 Developing the future.
Elevator Technology in China Elevator Technology China Footprint 10,000+ Employees 7 Regions 3 Factories 200+ Locations Second largest contributor to order intake 9 Developing the future.
China growth well on track Order Intake China in m Locations in China 1 bn CAGR +31% ~140 10/11 ~200 12/13 05/06 07/08 09/10 12/13 New office every 2 weeks 10 Developing the future.
Increasingly balanced regional footprint Sales in % 100% Americas 43 46 37 38 Target EMEA* 47 43 46 40 AP 10 11 17 22 06/07 08/09 10/11 12/13 * Including Rest of World 11 Developing the future.
Clear targets for business in China Growth Performance Improve market position Top 3 No margin dilution for BA -1% Increase market coverage >250 locations MFG footprint (new facilities) >5% y-o-y Active multi-brand strategy Flexible capacity set-up Increase service business (in RMB) >20% y-o-y Increase conversion rate >60% Manage profitable growth 12 Developing the future.
Open House Day Shanghai ThyssenKrupp Elevator Technology 13 Developing the future.
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. 14 Developing the future.