Q2 2023/24
Facts & Figures
Ticker: TKA (Share) TKAMY (ADR) May 2024 | Essen
Content
Group Overview and Financials | 16-21 |
Segment Overview and Financials | 22-47 |
ESG and Green Transformation | 48-61 |
Appendix | 62-79 |
We are committed to realize value for our shareholders
What we build on …
1 | 2 | 3 | 4 |
LEADING TECHNOLOGIES, | STRONG TIES WITH LONG- | PERFORMANCE-ORIENTED | STRONG BALANCE SHEET |
PRODUCTS AND SERVICES | STANDING CUSTOMER BASE | TRANSFORMATION WITH | WITH NET CASH POSITION2 |
EXECUTION TRACK RECORD |
5
COMPETENCIES FOR GREEN TRANSFORMATION
- Strong materials and engineering expertise as well as digital competence
- H2 electrolysis; efficient process technologies (e.g. ammonia)
- Mission critical components for advanced mobility, wind energy
- Strong customer trust on the back of our more than 200 years expertise in engineering and technology
- Well-knownand diverse customers in NA, EU and CHN which stand for >85 % of our sales1
- Full commitment to both performance on benchmark level for each segment and sustainable free cash flow
- Performance program APEX designed to carry us to our mid term-targets and beyond
- Equity ratio of 37.6%;
Net cash of €3.5 bn; total liquidity of €6.2 bn - Dividend payment a clear target
- Enabler and profiteer from energy transition/ decarbonization
- ESG as Executive Board priority and integrated at all businesses
- Clear SBTi-approved concept to reach climate neutrality by 2050
- Premium steel, diverse industrial materials, innovative supply chain services
1. Based on sales FY 22/23 l 2. As of 31.03.2024
3 | thyssenkrupp AG l Investor Relations l May 2024
thyssenkrupp Group structure
FY 22/23: Sales of €37.5 bn, EBIT adj. of €703 mn
ATDT
MX
SEMS
SALES
EBIT
ADJ.
AUTOMOTIVE
TECHNOLOGY
€7.9 bn
€266 mn
One of the leading suppliers (e.g. high-tech components and systems) and engineering partners to the international auto industry
DECARBON
TECHNOLOGIES
€3.4 bn
€29 mn
Leading businesses with key technologies to enable Green Transformation at our customers across industries
MATERIALS
SERVICES
€13.6 bn
€178 mn
One of the world's leading mill-independent materials distributors and service providers with ~250,000 customers
STEEL
EUROPE
€12.4 bn
€319 mn
Largest integrated European steel mill strategically located in the center of Europe with a future leading role in decarbonization of the steel industry
MARINE
SYSTEMS
€1.8 bn
€73 mn
Industry leading Maritime Portfolio
4 | thyssenkrupp AG l Investor Relations l May 2024
Steel Europe: First step towards 50/50 Joint Venture achieved
EP Corporate Group (EPCG) acquires stake of 20% and aims for another 30%
• | Signing of acquisition of 20% stake in tkSE by EPCG |
• | Transaction is: |
− Expected to be closed in FY 23/24 | |
20% | − Subject to the approval of the relevant authorities |
and the Supervisory Board of tkAG
Targeted | |
50% | tkSE |
shareholding | |
structure |
30%• In negotiation (tkAG with EPCG)
- Target: Equal 50/50 Joint Venture
tkAG | EPCG |
Combining materials capabilities of tkSE with the energy expertise of EPCG for the decarbonization of the steel industry
Create a high-performing and
profitable steel company
Reduce costs of decarbonization
to a more competitive level
Ensure economic independence
and business success
5 | thyssenkrupp AG l Investor Relations l May 2024
APEX well on track
Recap: APEX launch in Nov-23 | APEX Q2 status update |
• Solid APEX governance and functional processes set up
− Measures within segments & corporate defined
− Effective cross-segment approach used to define large-scale initiatives (e.g. procurement, digitalization)
• More than 4,600 measures identified with value of ~€1.8 bn (from ~€1.3 bn in Q1)
• Significant momentum achieved while implementation is progressing
APEX is the key enabler to achieve our mid-term targets
6 | thyssenkrupp AG l Investor Relations l May 2024
Each segment with clear commitment to mid-term targets for FYE 24/25
AT (excl. SP/AE1)
Top line
DT
MX
SEMS HQ
thyssenkrupp Group
EBIT adj. %
CCR
Sales
>€7.5 bn
Bottom line
7-8%
≥0.5
Sales
>€5.0 bn
>5.0%
>0.6
Shipments2
>6 mt
2-3%
~0.83
ROCE
>9%
Sales growth
~7%4
6-7% | 6-7% |
>0.4 | ~1.0 |
Adj. EBITDA/t3
~€100
Adjustment of costs, aligned with portfolio development
EBIT adj. %
Increase to a range of 4-6%
FCF bef. M&A
Sig. +ve by progress in performance and transformation
Dividend
Reliable dividend payment
Note: Starting point FY 20/21; depending on actual market challenges (e.g. Covid-19 development, supply chain issues and factor cost increases) and cyclicality in businesses; ROCE = EBIT / Ø Capital Employed; CCR = BCF / EBIT
- M&A process for Spring & Stabilizers and Automation Engineering ongoing | 2. Only Materials Stockholding and Processing; excl. mainly direct-to-customer business | 3. Multi-year average
- CAGR
7 | thyssenkrupp AG l Investor Relations l May 2024
Content
Group Overview and Financials | 16-21 |
Segment Overview and Financials | 22-47 |
ESG and Green Transformation | 48-61 |
Appendix | 62-79 |
Management summary Q2 23/24
Portfolio
• Steel Europe: First step towards 50/50 Joint Venture achieved - EPCG acquires 20%
• Marine Systems: Due diligence phases progressing (KfW, PE) as well as spin-off in elaboration
• Decarbon Technologies: Board set-up completed; closing of transaction of the remaining 55% stake in tk Industries India (POL)
Performance
Green Transformation
- Q2 in line with expectations, full-year guidance confirmed for EBIT adj. and FCF bef. M&A
- APEX well on track with incremental improvements across all businesses
- Steel Europe: Structural realignment to boost competitiveness and profitability in preparation
- Materials Services: Start of fundamental structural transformation of tk Schulte's business model
- Uhde: Development of conceptual design study for reduced-emission fertilizer plant (EnviNOx®)
- Polysius: Start of construction of one of the 1st carbon-neutral cement plants ("pure oxyfuel")
- thyssenkrupp on the CDP "Climate A List" for the 8th time in a row
- No 1 position (MDAX) in a buyside Corporate Governance ranking
9 | thyssenkrupp AG l Investor Relations l May 2024
Performance highlights
Well on track to reach full-year guidance
Sales
Q2 €9.1 bn
-10% YoY
H1 €17.2 bn
-10% YoY
EBIT adj. Margin
€184 mn 2.0%
-10% YoY
€268 mn 1.6%
-28% YoY
FCF bef. M&A
-€197 mn
+€20 mn YoY
-€728 mn
-€146 mn YoY
Margin increase in Q2 - Earnings development of all | Q2 FCF bef. M&A still negative, but improved YoY |
businesses as expected | |
10 | thyssenkrupp AG l Investor Relations l May 2024
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ThyssenKrupp AG published this content on 22 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2024 08:33:15 UTC.