Interim report 1st half 2023/2024
October 1, 2023 -
March 31, 2024
thyssenkrupp interim report 1st half 2023 / 2024
thyssenkrupp in figures
thyssenkrupp in figures
Group | ||||||||||
1st half | 1st half | |||||||||
ended | ended | |||||||||
March 31, | March 31, | |||||||||
2023 | 2024 | Change | in % | |||||||
Order intake | million € | 19,365 | 16,549 | (2,815) | (15) | |||||
Sales | million € | 19,125 | 17,245 | (1,880) | (10) | |||||
EBITDA | million € | 951 | 531 | (420) | (44) | |||||
EBIT2) | million € | 136 | (156) | (293) | -- | |||||
EBIT margin | % | 0.7 | (0.9) | (1.6) | -- | |||||
Adjusted EBIT1),2) | million € | 373 | 268 | (105) | (28) | |||||
Adjusted EBIT margin | % | 1.9 | 1.6 | (0.4) | (20) | |||||
Income/(loss) before tax | million € | 32 | (239) | (270) | -- | |||||
Net income/(loss) or earnings after tax | million € | (105) | (377) | (272) | -- | |||||
attributable to thyssenkrupp AG's shareholders | million € | (147) | (392) | (244) | -- | |||||
Earnings per share (EPS) | € | (0.24) | (0.63) | (0.39) | -- | |||||
Operating cash flows | million € | 69 | (311) | (380) | -- | |||||
Cash flow for investments | million € | (643) | (397) | 245 | 38 | |||||
Cash flow from divestments | million € | 23 | 27 | 4 | 16 | |||||
Free cash flow3) | million € | (551) | (682) | (131) | (24) | |||||
Free cash flow before M&A3) | million € | (581) | (728) | (146) | (25) | |||||
Net financial assets (March 31) | million € | 2,895 | 3,467 | 572 | 20 | |||||
Total equity (March 31) | million € | 13,997 | 11,604 | (2,393) | (17) | |||||
Gearing (March 31) | % | -4) | -4) | - | - | |||||
Employees (March 31) | 98,224 | 100,202 | 1,978 | 2 | ||||||
- See preliminary remarks.
- See reconciliation in segment reporting (Note 08).
- See reconciliation in the analysis of the statement of cash flows.
- Due to the strongly positive total equity and the reported net financial assets, the gearing key ratio is negative and the significance of the gearing key ratio is thus of no relevance.
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thyssenkrupp interim report 1st half 2023 / 2024
thyssenkrupp in figures
Group | ||||||||||
2nd quarter | 2nd quarter | |||||||||
ended | ended | |||||||||
March 31, | March 31, | |||||||||
2023 | 2024 | Change | in % | |||||||
Order intake | million € | 10,188 | 8,576 | (1,612) | (16) | |||||
Sales | million € | 10,107 | 9,064 | (1,043) | (10) | |||||
EBITDA | million € | 466 | 293 | (173) | (37) | |||||
EBIT2) | million € | (110) | 28 | 138 | ++ | |||||
EBIT margin | % | (1.1) | 0.3 | 1.4 | ++ | |||||
Adjusted EBIT1),2) | million € | 205 | 184 | (21) | (10) | |||||
Adjusted EBIT margin | % | 2.0 | 2.0 | 0.0 | 0 | |||||
Income/(loss) before tax | million € | (135) | (7) | 129 | 95 | |||||
Net income/(loss) or earnings after tax | million € | (203) | (72) | 130 | 64 | |||||
attributable to thyssenkrupp AG's shareholders | million € | (223) | (78) | 145 | 65 | |||||
Earnings per share (EPS) | € | (0.36) | (0.13) | 0.23 | 65 | |||||
Operating cash flows | million € | 206 | 113 | (93) | (45) | |||||
Cash flow for investments | million € | (415) | (290) | 125 | 30 | |||||
Cash flow from divestments | million € | 8 | (6) | (14) | -- | |||||
Free cash flow3) | million € | (201) | (183) | 18 | 9 | |||||
Free cash flow before M&A3) | million € | (216) | (197) | 20 | 9 | |||||
Net financial assets (March 31) | million € | 2,895 | 3,467 | 572 | 20 | |||||
Total equity (March 31) | million € | 13,997 | 11,604 | (2,393) | (17) | |||||
Gearing (March 31) | % | -4) | -4) | - | - | |||||
Employees (March 31) | 98,224 | 100,202 | 1,978 | 2 | ||||||
- See preliminary remarks.
- See reconciliation in segment reporting (Note 08).
- See reconciliation in the analysis of the statement of cash flows.
- Due to the strongly positive total equity and the reported net financial assets, the gearing key ratio is negative and the significance of the gearing key ratio is thus of no relevance.
THYSSENKRUPP STOCK / ADR MASTER DATA AND KEY FIGURES
ISIN | Number of shares (total) | shares | 622,531,741 | |||||
Shares (Frankfurt, Düsseldorf stock exchanges) | DE 000 750 0001 | Closing price end March 2024 | € | 4.97 | ||||
ADR (over-the-counter-trading) | US88629Q2075 | Stock exchange value end March 2024 | million € | 3,094 | ||||
Symbols | ||||||||
Shares | TKA | |||||||
ADR | TKAMY | |||||||
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thyssenkrupp interim report 1st half 2023 / 2024
Contents
Contents
02 | thyssenkrupp in figures | 28 | Condensed interim financial statements |
05 | thyssenkrupp stock | 29 | thyssenkrupp group - statement of financial |
position | |||
06 | Interim management report | 31 | thyssenkrupp group - statement of income |
06 | Preliminary remarks | 32 | thyssenkrupp group - statement of |
07 | Strategy | comprehensive income | |
08 | Report on the economic position | 34 | thyssenkrupp group - selected notes to the |
09 | Summary | financial statements | |
10 | Macro and sector environment | 36 | thyssenkrupp group - statement of cash flows |
13 | Segment reporting | 38 | thyssenkrupp group - selected notes to the |
18 | Results of operations and financial position | financial statements | |
22 | Compliance | 57 | Review report |
23 | Employees | 58 | Responsibility statement |
23 | Changes on the Executive Board | ||
24 | Technology and innovations | 59 | Additional information |
25 | Events after the reporting date | 59 | Contact and 2024 / 2025 financial calendar |
- Forecast, opportunity and risk report
- 2023 / 2024 forecast
- Opportunities and risks
Our fiscal year begins on October 1 and ends on
September 30 of the following year.
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thyssenkrupp interim report 1st half 2023 / 2024
thyssenkrupp stock
thyssenkrupp stock
PERFORMANCE OF THYSSENKRUPP STOCK RELATIVE TO DAX AND MDAX
indexed, 1st half ended March 31, 2024
125
100
75
50
10 | 11 | 12 | 01 | 02 | 03 | ||||||
2023 | 2024 | thyssenkrupp | DAX | MDAX | |||||||
Stock price performance 1st half 2023 / 2024
- Stock price €4.97, drop of about 30% in the 1st half
- Highest price October 1, 2023: €7.19; lowest price February 23, 2024: €4.40
- Contributory factors: expectations in connection with the spin-off of Steel Europe and corresponding valuation, plus macroeconomic issues such as inflation and the development of interest rates, which typically affect early cycle stocks such as thyssenkrupp somewhat more strongly than the overall market and indices
Capital market
- Regular coverage by 11 financial analysts
- Investment recommendations: 30% positive, 60% neutral, 10% negative
Shareholders
- Biggest single shareholder Alfried Krupp von Bohlen und Halbach Foundation with 20.93% of the capital stock
- Remaining capital stock held by a broad free float
- thyssenkrupp does not hold any treasury shares
Annual General Meeting
- February 2, 2024: first in-person meeting since the Covid pandemic
- Dividend of €0.15 approved; paid out on February 7, 2024
Investor Relations
- Active marketing of the equity story to investors and financial analysts
- Focus was on two conferences, in New York and Frankfurt, as well as roadshows in various financial centers, e.g., Zurich and Milan
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thyssenkrupp interim report 1st half 2023 / 2024
Interim management report | Preliminary remarks
Interim management report
Preliminary remarks
This report follows the internal management model applied by thyssenkrupp in fiscal year 2023 / 2024.
As a consequence of the thyssenkrupp group's new segment structure, which was resolved in the 4th quarter of fiscal year 2022 / 2023 and introduced effective October 1, 2023, there have been the following reporting changes compared with the prior year:
- The former Multi Tracks segment was dissolved as of October 1, 2023.
- Since October 1, 2023, the bearings business Rothe Erde (reported separately as the Bearings segment as of September 30, 2023), Uhde, Polysius and thyssenkrupp nucera (all three reported in the Multi Tracks segment until September 30, 2023) have been bundled in the new Decarbon Technologies segment. In addition, the new Decarbon Technologies segment contains thyssenkrupp Immobilien Verwaltungs GmbH, which was previously assigned to the Steel Europe segment.
- Since October 1, 2023, the Automation Engineering and Springs & Stabilizers businesses (assigned to the former Multi Tracks segment until September 30, 2023) have been part of the Automotive Technology segment. The same applies to the Forged Technologies business (reported as a separate segment as of September 30, 2023).
- Since October 1, 2023, the investment in TK Elevator held by thyssenkrupp since the sale of the Elevator Technology business at the end of July 2020 has been assigned to "reconciliation" in the segment reporting (included in the former Multi Tracks segment in the 2022 / 2023 fiscal year).
- thyssenkrupp Transrapid GmbH, which was previously part of the Marine Systems segment, has also been assigned to "reconciliation" in the segment reporting since October 1, 2023.
Corresponding adjustments have been made for these changes in the recognition and presentation of the data for the prior year.
For further details of the investment in TK Elevator, see also Note 08 (Segment reporting) and Note 07 (Financial instruments).
In fiscal year 2022 / 2023, a divestment process was initiated for the activities of thyssenkrupp Industries India, which is part of the Decarbon Technologies segment. These activities met the criteria set forth in IFRS 5 for recognition as a disposal group for the first time in the 1st quarter of 2023 / 2024. Therefore, the assets and liabilities relating to these activities had to be presented separately for the first time in the statement of financial position as of December 31, 2023. They are also presented separately as of March 31, 2024.
The business performance is presented by segment.
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thyssenkrupp interim report 1st half 2023 / 2024
Interim management report | Strategy
Strategy
- Continuation of the transformation to a sustainable and high-performing company with lean management structures and a clearly defined portfolio focused on profitable growth
- Three areas of action - portfolio, performance and green transformation - form the framework
- Extensive information on thyssenkrupp's strategy in the 2022 / 2023 Annual Report
- Further information in the sections "Segment reporting," "Technology and innovations" and in Note 14 to the interim financial statements (Subsequent events)
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thyssenkrupp interim report 1st half 2023 / 2024
Interim management report | Report on the economic position
Report on the economic position
Order intake | Sales | EBIT1) | Adjusted EBIT1),2) | |||||||||||||||||
million € | million € | million € | million € | Employees | ||||||||||||||||
1st half | 1st half | 1st half | 1st half | 1st half | 1st half | 1st half | 1st half | |||||||||||||
ended | ended | ended | ended | ended | ended | ended | ended | |||||||||||||
March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | |||||||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | |||||||||||
Automotive Technology2) | 4,078 | 3,744 | 3,894 | 3,785 | 137 | 79 | 154 | 97 | 31,288 | 32,025 | ||||||||||
Decarbon Technologies2) | 2,021 | 1,340 | 1,704 | 1,830 | 64 | (28) | 68 | (2) | 14,981 | 14,768 | ||||||||||
Materials Services | 7,250 | 6,150 | 7,143 | 6,023 | 114 | (9) | 105 | 95 | 16,234 | 16,150 | ||||||||||
Steel Europe2) | 6,725 | 5,312 | 6,260 | 5,310 | (143) | (132) | 76 | 137 | 26,109 | 27,057 | ||||||||||
Marine Systems2) | 263 | 669 | 1,004 | 965 | 31 | 44 | 34 | 42 | 7,386 | 7,880 | ||||||||||
Corporate Headquarters | 5 | 5 | 4 | 4 | (83) | (103) | (84) | (96) | 611 | 640 | ||||||||||
Reconciliation2) | (978) | (671) | (884) | (671) | 15 | (8) | 21 | (6) | 1,615 | 1,682 | ||||||||||
Group | 19,365 | 16,549 | 19,125 | 17,245 | 136 | (156) | 373 | 268 | 98,224 | 100,202 | ||||||||||
- See reconciliation in segment reporting (Note 08).
- See preliminary remarks.
Order intake | Sales | EBIT1) | Adjusted EBIT1),2) | |||||||||||||
million € | million € | million € | million € | |||||||||||||
2nd quarter | 2nd quarter | 2nd quarter | 2nd quarter | 2nd quarter | 2nd quarter | 2nd quarter | 2nd quarter | |||||||||
ended | ended | ended | ended | ended | ended | ended | ended | |||||||||
March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | |||||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | |||||||||
Automotive Technology2) | 2,031 | 1,890 | 2,009 | 1,922 | 106 | 38 | 108 | 49 | ||||||||
Decarbon Technologies2) | 1,000 | 695 | 856 | 931 | 46 | (3) | 49 | 15 | ||||||||
Materials Services | 3,901 | 3,293 | 3,897 | 3,164 | 91 | 4 | 85 | 69 | ||||||||
Steel Europe2) | 3,691 | 2,916 | 3,315 | 2,864 | (329) | 11 | (14) | 68 | ||||||||
Marine Systems2) | 135 | 140 | 497 | 532 | 14 | 26 | 14 | 25 | ||||||||
Corporate Headquarters | 3 | 3 | 2 | 2 | (38) | (42) | (41) | (40) | ||||||||
Reconciliation2) | (574) | (362) | (470) | (349) | (1) | (6) | 4 | (3) | ||||||||
Group | 10,188 | 8,576 | 10,107 | 9,064 | (110) | 28 | 205 | 184 | ||||||||
- See reconciliation in segment reporting (Note 08).
- See preliminary remarks.
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thyssenkrupp interim report 1st half 2023 / 2024
Interim management report | Report on the economic position
Summary
In the first six months, adjusted EBIT and FCF before M&A were in line with the expectations for the full year, partly supported by the development in the 2nd quarter
- Performance of the group in the 1st half compared with the prior year
- Order intake and sales lower than in the prior year in both the 1st half and the 2nd quarter, mainly due to price- and demand-induced declines at Materials Services and Steel Europe
- Adjusted EBIT in both the 1st half and the 2nd quarter below the prior-year level, which benefited
from one-time effects, especially at Automotive Technology; driven principally by decreases at Automotive Technology, Decarbon Technologies and Materials Services; earnings increases at Steel Europe and Marine Systems, especially in the 2nd quarter
- Net income negative and below the prior year, mainly due to the aforementioned trends and negative special items such as the measurement of CO2 forward contracts; 2nd quarter also negative but higher than in the prior-year period
- FCF before M&A below the prior year and negative due to increase in net working capital; improvement in the 2nd quarter
- "APEX" performance program, which bundles the group's established and new transformation and performance measures: implementation on schedule with continuous ramp-up of the earnings effects.
- 1st half performance of the segments compared with the prior year:
- Automotive Technology: lower order intake and sales in the construction machinery business and customer- and model-driven declines in parts of the automotive serial business; adjusted EBIT below the prior-year level, which was boosted by one-time effects; lower material and transportation costs and the positive effects of price negotiations and measures to improve efficiency, countered, among other things, by lower volumes and higher personnel expenses (mainly as a result of collective wage agreements) and, in particular, non-conformity costs in the Automation Engineering business
- Decarbon Technologies: comparatively low order intake overall but higher sales, principally due to high order intake in prior periods; adjusted EBIT down year-on-year, affected by individual effects in each of the businesses
- Materials Services: lower sales, mainly as a result of lower prices and sluggish demand. Adjusted EBIT down year-on-year due to market factors despite positive effects of cost-cutting measures Volumes below the prior-year level due to the downward trend in direct-to-customer business and warehousing businesses, especially in Europe
- Steel Europe: lower order intake as a consequence of the weak economic development and associated drop in demand; sales down year-on-year, mainly due to significantly lower steel prices; adjusted EBIT higher than in the previous year despite the weak market environment, thanks to lower raw material and energy prices and lower depreciation and amortization as a result of the significant impairment losses in fiscal year 2022 / 2023
- Marine Systems: significantly higher order intake, mainly due to major extensions of two existing orders for submarines and higher order intake in the marine electronics area; adjusted EBIT higher than in the previous year
- Corporate Headquarters: lower adjusted EBIT, mainly as a result of higher expenses in connection with the APEX performance program and shifts in the timing of internal cross- charging and general and administrative expenses. By contrast, positive effects from the adjustment of provisions for share-based compensation
- Full-yearforecast for the group's adjusted EBIT and FCF before M&A confirmed; reduced for, e.g., sales and net income
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thyssenkrupp interim report 1st half 2023 / 2024
Interim management report | Report on the economic position
- No revision of the medium-term targets, which were confirmed in the Annual Report 2022 / 2023: adjusted EBIT margin of between 4% and 6%, significantly positive FCF before M&A, and resumption of a reliable dividend payment for the company as a whole
Macro and sector environment
Negative trend in Germany halted for the time being - growth still significantly lower than in other industrialized countries
- Global economic development still sluggish, especially in Germany and Europe, due to strong global export dependence; high resilience in some other regions such as Asia and the USA; tentative recovery of the Chinese economy following bottoming out of the crisis in the local real estate sector
- Growth in global economic output projected to slow to 2.7% in 2023; growth expectation for 2024 slightly lower at 2.6%
- Slight recovery of the Germany economy expected with growth of 0.2% in 2024 following contraction of 0.1% in 2023; growth forecast of 0.8% for the European Union in 2024; significantly better outlook for the USA with growth of 2.5% in 2024; subdued momentum in China (4.7% growth); further robust growth of 6.8% forecast for India in 2024
- Risks and uncertainties: continued economic pressure due to possible continuation of the central banks' policy of higher interest rates than in recent years; political uncertainty resulting from the upcoming elections in Europe and the USA; risk of disruption of global logistics flows due to armed conflicts in the Middle East; possibility of further escalation and prolongation of the war in Ukraine; uncertainty about the future development of many other geopolitical trouble spots and trade conflicts; risk of recurrent floods and natural catastrophes, for example, as a result of climate change; ongoing risks resulting from high energy, material and raw material prices, especially in industrialized regions
GROSS DOMESTIC PRODUCT
Real change compared to previous year in % | 20231) | 20241) | ||
European Union | 0.5 | 0.8 | ||
Germany | (0.1) | 0.2 | ||
Eastern Europe and Central Asia | 4.0 | 3.0 | ||
USA | 2.5 | 2.5 | ||
Brazil | 2.9 | 2.1 | ||
Japan | 1.9 | 0.8 | ||
China | 5.2 | 4.7 | ||
India | 7.4 | 6.8 | ||
Middle East & North Africa | 1.2 | 1.9 | ||
World | 2.7 | 2.6 | ||
- Calendar year; Forecast (partly)
Source: S&P Global Market Intelligence, Global Economy (April 2024)
Automotive
- Global volume sales of cars and light trucks up significantly year-on-year in 2023; production also clearly positive and back around the pre-Covid level of 2019 for the first time
- Positive volume sales forecast for 2024, with production expected to be slightly below the prior- year level
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ThyssenKrupp AG published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 05:03:07 UTC.