Charts on Q4 FY 2019/20 Facts & Figures
Ticker: TKA (Share) TKAMY (ADR)
November 2020
FY 19/20 with important achievements
Balance Sheet
fixed
Target Portfolio
defined
Restructuring
progressing
Performance
enhancing
Transformation of balance sheet >€5 bn Net Cash and >€10 bn Equity at fiscal year-end
- De-riskingand regaining of strength allow for further restructuring, portfolio development and business evolution
Group of Companies concept to support turnaround and true performance culture
- M&A for best-owner solutions progressing
Focus on efficiency and costs, headcount reduction ~5,700 in FY 19/20
- Acceleration going forward with increased target as next step to a total of ~11,000 FTEs1
Value levers for structural improvements in FY 20/21 and beyond in implementation
ESG - Work towards climate neutrality with strong concepts "tkH2Steel" and H2 electrolysis
- Already includes 3,600 FTEs from defined initiatives in FY 19/20
- | thyssenkrupp AG l November 2020
FY 19/20: stringent implementation of initiatives to reduce costs and push efficiency
Restru. Corp. HQ | FTE reduction | |||||||||||||||||||||
(down to ~400 FTEs) | ||||||||||||||||||||||
Steel Strategy | target increased as | |||||||||||||||||||||
Restru. SY | Restru. Cement | |||||||||||||||||||||
20-30 | Site closure SP | Restru. SY enlarged | next step to a total of | |||||||||||||||||||
(~550 FTEs) | (~3,000 FTEs) | (~490 FTEs) | (~460 FTEs) | (∑ ~1,300 FTEs) | ~11,000 FTEs | |||||||||||||||||
Nov | Mar | Apr | May | Jul | Aug | Sep | Oct | Nov | ||||||||||||||
2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2020 | 2020 | 2020 |
Target portfolio Elevator sale "tkH2Steel" | Step-up |
defined | transparency |
termination of | |
disproportionate | |
y/e NWC measures | |
of up to ~€3 bn |
M&A progress | De-risking B/S |
• SE: non-binding | by asset and |
offer from | goodwill |
Liberty Steel | impairments of |
• PT: revised | ~€3 bn |
offers received; | |
due diligence | |
almost completed | |
• AST: M&A | |
initiated |
3 | thyssenkrupp AG l November 2020
Restructuring with a clear plan and progressing
Acceleration going forward with target increased as next step to a total of ~11,000 FTEs
FTEs
[#]
Germany
Rest of world
Restructuring R1 expenses1/
R2 cash-out[€ mn]
Sustainable
savings
[€ mn]
~1,600 | |||||||
~2,000 | |||||||
~11,000 | ~3,600 FTEs | ~70% | |||||
reduced | |||||||
~6,000 | |||||||
~30% | |||||||
Old target | New target | FY 19/20 | Until |
FY 22/23
~600
~200
low to mid | mid to high | ||
3-digit €mn | 3-digit €mn | ||
high | 732 | ||
2-digit €mn | |||
19/20 | 20/21E | until 22/23E |
- Until end of FY 19/20 already >50% of 6,000 achieved (~3,600 FTEs)
- In total, ~5,700 headcounts within FY 19/20
- In FY 19/20 >60% of required total expenses already incurred
- FY 20/21 with yoy higher cash-outfor restru.
- Total sustainable cost benefit from restructuring in mid-high 3-digit€mn range
- Including 3,600 from defined initiatives as well as fluctuation and additional FTE reduction
- | thyssenkrupp AG l November 2020
FY financials impacted by pandemic-driven demand collapse
[Continuing operations in € mn]
FY 18/19 | FY 19/20 | ||
Act | Act | yoy | |
Sales | 34,036 | 28,899 | (15%) |
thereof Steel Europe | 9,065 | 7,269 | (20%) |
EBIT adj. | (110) | (1,633) | -- |
thereof Steel Europe | 31 | (946) | -- |
FCF bef. M&A | (1,756) | (5,515) | -- |
thereof BCF Steel Europe | 11 | (1,508) | -- |
- SE excl. HP and shifted to MT; MT as new segment as of October 01, 2020; new special item guideline considered
- | thyssenkrupp AG l November 2020
- Impact by pandemic, sequential recovery in almost all businesses in Q4
- SE and MT with highest negative contribution
- Pro forma1: €(820) mn at SE and €(593) mn at MT
- Negative one-timer
- up to €3 bn from termination of y/e NWC measures
- ~€0.4 bn from cartel fine at SE
- Pro forma1: €(1.5) bn at SE and €(1.1) bn at MT
Balance Sheet fixed by gain and proceeds from Elevator sale
B/S de-risking and regaining of financial strength enable more restructuring and business development
Equity [€ bn]
Net
Financial
Position
[€ bn]
Equity ratio | Equity ratio |
~6% | ~28% |
(1.5) |
- Provision restructuring ~€600 mn
- Impairments ~€3 bn
15.0 | 10.2 | Net income | 9.6 | |||
2.2 | (5.5) | [€ bn] | ||||
FY | Net loss | ET Sale | OCI, | FY | ||
18/19 | Cont. Ops | Others | 19/20 | |||
• Cartel fine at SE ~€0.4 bn | (0.9) | |||||
• Termination of y/e NWC | 5.1 | |||||
up to~€3 bn | mainly IFRS 16 | (0.3) | ||||
FY 18/19 | FY 19/20 | |||||
(3.7) | 15.2 | |||||
(5.5) | |||
FY 18/19 | FCF | ET Sale1 | FY 19/20 |
bef. M&A | |||
Net Debt | Others | ||
Cont. Ops. | Net Cash | ||
- Additional €0.2 bn cash-in from tax refund expected in early FY 20/21
- | thyssenkrupp AG l November 2020
Order intake significantly up after pandemic induced shutdown in Q3, but still below prior year
[€ mn]
2018/19 | 2019/20 | ||||
Q4 | Q3 | Q4 | qoq | ||
Automotive Technology (AT) 2,3 | 1,354 | 815 | 1,260 | 55% | |
Industrial Components (IC) 2,3 | 631 | 432 | 517 | 20% | |
Elevator Technology (ET) | 2,035 | 1,898 | 627 | (67%) | |
Plant Technology (PT) 2,3 | 614 | 360 | 285 | (21%) | |
Marine Systems (MS) | 1,807 | 123 | 1,869 | ++ | |
Materials Services (MX) | 3,340 | 2,242 | 2,741 | 22% | |
Steel Europe (SE) | 1,814 | 943 | 2,008 | ++ | |
Corporate Headquarters (HQ) 2,3 | 3 | 2 | 1 | (46%) | |
Reconciliation 3,4 | (295) | (121) | (313) | ||
Full Group | 11,303 | 6,693 | 8,996 | 34% | |
Disc. elevator operations 5 | 2,034 | 1,900 | 627 | (67%) | |
Group continuing operations | 9,270 | 4,793 | 8,369 | 75% |
2018/19 | 2019/20 | ||
FY | FY | yoy | yoy (ex FX)1 |
5,251 | 4,610 | (12%) | (12%) |
2,636 | 2,095 | (21%) | (19%) |
8,171 | 6,739 | (18%) | 0% |
2,844 | 1,670 | (41%) | (40%) |
2,192 | 2,227 | 2% | 21% |
13,868 | 11,386 | (18%) | (18%) |
8,784 | 7,325 | (17%) | (17%) |
5 | 4 | (21%) | (21%) |
(1,758) | (1,165) | ||
41,994 | 34,891 | (17%) | (12%) |
8,169 | 6,741 | (17%) | - |
33,825 | 28,150 | (17%) | (15%) |
Q4 vs. Q3
AT: Recovery by >50% qoq in almost all businesses driven by restart of auto production and additionally supported by state stimulus packages and other incentives
IC: Strong demand recovery qoq at Forged Technologies (crankshafts for heavy duty engines, undercarriages) and stable order situation at bearings (wind energy)
PT: Down yoy due to medium-sized chemical and mining orders in prior year; market for new orders still challenging due to pandemic, however first green shoots in project activity; increasing customer interest for electrolysis plants for hydrogen and robust service business
MS: Positive due to contract for 4 frigates for
Brazilian navy, which came into effect
MX: Higher volumes due to higher demand from main market segments and product groups
SE: Significant higher volumes across all industries (auto >100% qoq); even higher volumes yoy
1. Adjusted for FX and portfolio effects l 2. Organizational structure based on "newtk" until 30.09.2020 | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported at Corporate are now combined in consolidation line as "Reconciliation" |
- Incl. Elevator Technology and individual units from Corporate Headquarters
- | thyssenkrupp AG l November 2020
Sales
[€ mn]
2018/19 | 2019/20 | ||||
Q4 | Q3 | Q4 | qoq | ||
Automotive Technology (AT) 2,3 | 1,453 | 842 | 1,226 | 46% | |
Industrial Components (IC) 2,3 | 639 | 452 | 530 | 17% | |
Elevator Technology (ET) | 2,125 | 1,947 | 694 | (64%) | |
Plant Technology (PT) 2,3 | 935 | 644 | 761 | 18% | |
Marine Systems (MS) | 496 | 385 | 561 | 46% | |
Materials Services (MX) | 3,291 | 2,245 | 2,620 | 17% | |
Steel Europe (SE) | 2,237 | 1,455 | 1,810 | 24% | |
Corporate Headquarters (HQ) 2,3 | 3 | 1 | 7 | ++ | |
Reconciliation 3,4 | (336) | (261) | (256) | ||
Full Group | 10,843 | 7,710 | 7,951 | 3% | |
Disc. elevator operations 5 | 2,126 | 1,946 | 693 | (64%) | |
Group continuing operations | 8,717 | 5,765 | 7,258 | 26% |
2018/19 | 2019/20 | ||
FY | FY | yoy | yoy (ex FX)1 |
5,407 | 4,702 | (13%) | (13%) |
2,522 | 2,099 | (17%) | (16%) |
7,960 | 6,546 | (18%) | 1% |
2,943 | 2,897 | (2%) | 0% |
1,800 | 1,750 | (3%) | (3%) |
13,881 | 11,300 | (19%) | (18%) |
9,065 | 7,269 | (20%) | (20%) |
5 | 9 | ++ | ++ |
(1,586) | (1,130) | ||
41,996 | 35,443 | (16%) | (12%) |
7,960 | 6,544 | (18%) | - |
34,036 | 28,899 | (15%) | (15%) |
Q4 vs. Q3
AT: Sales mirror order intake; strong recovery by >50% in almost all businesses
IC: Strong recovery at heavy duty engine components and undercarriages and increase at bearings for wind energy (especially Germany and China)
PT: Improvement qoq at chemicals, mining and service; yoy however down since sales ramp-up of large chemical orders and robust service business can only partially compensate pandemic decline
MS: Better progress as planned and over prior year quarter on the execution of contracts due to subcontractors in submarine business
MX: Higher volumes due to higher demand in Europe and North America
SE: Better product mix with sig. higher auto demand, but still below prior year
1. Adjusted for FX and portfolio effects l 2. Organizational structure based on "newtk" until 30.09.2020 | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported at Corporate are now combined in consolidation line as "Reconciliation" |
- Incl. Elevator Technology and individual units from Corporate Headquarters
- | thyssenkrupp AG l November 2020
Q4 EBIT adj. with sequential recovery, particularly at Auto and Materials businesses
[€ mn]
Q4 vs. Q3
2018/19 | 2019/20 | 1 | 2018/19 | 2019/20 | 1 | |||||||||
Q4 | Q3 | Q4 | qoq | FY | FY | yoy | ||||||||
Automotive Technology (AT) | 2,3 | (39) | (129) | (104) | 19% | (22) | (260) | -- | ||||||
Springs & Stabilizers | 3 | (64) | (17) | (12) | 28% | (122) | (78) | 36% | ||||||
System Engineering | 3 | (28) | (25) | (65) | -- | (25) | (113) | -- | ||||||
Industrial Components (IC) | 2,3 | 61 | 26 | 16 | (39%) | 230 | 138 | (40%) | ||||||
Elevator Technology (ET) | 266 | 211 | 80 | (62%) | 907 | 693 | (24%) | |||||||
Plant Technology (PT) | 2,3 | (30) | (97) | (100) | (3%) | (145) | (235) | (62%) | ||||||
Marine Systems (MS) | 1 | 4 | 12 | ++ | 1 | 18 | ++ | |||||||
Materials Services (MX) | (12) | (100) | (48) | 52% | 107 | (110) | -- | |||||||
Materials Production | (2) | (31) | (39) | (23%) | 4 | (78) | -- | |||||||
Steel Europe (SE) | (45) | (334) | (240) | 28% | 31 | (946) | -- | |||||||
Heavy Plate | 3 | (23) | (27) | (28) | (4%) | (63) | (115) | (83%) | ||||||
Corporate Headquarters (HQ) | 2,3 | (76) | (40) | (41) | (3%) | (252) | (210) | 17% | ||||||
Reconciliation | 3,4 | (6) | 43 | 12 | (56) | 53 | ||||||||
AT: Gradual improvement at almost all businesses due to better utilization and cost reduction vs. -veone-timer of low 3-digit
IC: Sig. increase by components for heavy duty engines following sales recovery vs. robust but temporarily slightly lower earnings at bearings
PT: Rather stable qoq; yoy down since pandemic effects offset higher earnings from chemical plants, G&A cost reductions and robust service
MS: Measures for performance improvement continue to gain traction
MX: Market recovery in main product groups; sig. higher warehousing shipments (+28%)
Full Group | 119 | (415) | (414) | 0% | 802 | (860) | -- | |
Disc. elevator operations | 5 | 271 | 263 | 97 | 912 | 773 | ||
SE: Sig. higher shipments (~30%), better product mix and improved utilization
Group continuing operations | (152) | (679) | (511) | 25% | (110) | (1,633) | -- |
HQ: Stable qoq, but with sig. improvement yoy mainly due to lower G&A costs
- Figures incl. effects of IFRS 16 l 2. Organizational structure based on "newtk" until 30.09.2020 | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported at Corporate are now combined in consolidation line as
"Reconciliation" | 5. Incl. Elevator Technology and individual units from Corporate Headquarters
- | thyssenkrupp AG l November 2020
Overview - Business cash flow (BCF) and Free cash flow before M&A
[€ mn]
2018/19 | 2019/201 | ||||
Q4 | Q3 | Q4 | qoq | ||
BCF | Automotive Technology (AT) 2,3 | 126 | (215) | (141) | 34% |
Springs & Stabilizers 3 | (32) | (46) | (43) | 8% | |
System Engineering 3 | 29 | (65) | 2 | ++ | |
BCF | Industrial Components (IC) 2,3 | 113 | 8 | (45) | -- |
BCF | Elevator Technology (ET) | 269 | 387 | 145 | (63%) |
BCF | Plant Technology (PT) 2,3 | (111) | (163) | (248) | (52%) |
BCF | Marine Systems (MS) | (129) | (139) | (51) | 63% |
BCF | Materials Services (MX) | 689 | (143) | (580) | -- |
BCF | Steel Europe (SE) | 687 | (268) | (180) | 33% |
Heavy Plate 3 | (5) | (2) | (9) | -- | |
BCF | Corporate Headquarters (HQ) 2,3 | (113) | (69) | (61) | 12% |
BCF | Reconciliation 3,4 | (34) | (79) | (152) | (91%) |
BCF | Full Group | 1,497 | (682) | (1,314) | (93%) |
Interest payments | (50) | (32) | (32) | 0% | |
Tax payments | (42) | (57) | (33) | 42% | |
FCF b. M&A Full Group | 1,406 | (770) | (1,380) | (79%) | |
FCF b. M&A Disc. elevator operations 5 | 173 | 467 | 123 | (74%) | |
FCF b. M&A Group continuing operations | 1,233 | (1,238) | (1,503) | (21%) |
2018/19 | 2019/201 | |
FY | FY | yoy |
(396) | (776) | (96%) |
(170) | (174) | (2%) |
(33) | (170) | -- |
232 | (76) | -- |
781 | 721 | (8%) |
(253) | (411) | (63%) |
(333) | (203) | 39% |
41 | (1,351) | -- |
(72) | (1,574) | -- |
(81) | (64) | 21% |
(352) | (243) | 31% |
(308) | (419) | (36%) |
(660) | (4,333) | -- |
(212) | (227) | (7%) |
(268) | (275) | (3%) |
(1,140) | (4,835) | -- |
615 | 680 | 10% |
(1,756) | (5,515) | -- |
Q4 vs. Q3
AT: Higher earnings and NWC-release (inventories)
IC: Lower earnings, NWC-built up due to increased business activity at Forged Technologies (mainly receivables) and higher investments
PT: Mainly lower prepayments;
lower earnings and pandemic-induced lower prepayments yoy
MS: Determined by milestone payment profile and order intake related down payment, respectively
MX: Mainly due to normalization of NWC (incl. Factoring)
SE: Higher earnings additionally supported by stringent cash control and NWC-measures (mainly inventories and payables)
- Figures incl. effects of IFRS 16 l 2. Organizational structure based on "newtk" until 30.09.2020 | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported at Corporate are now combined in consolidation line as
"Reconciliation" | 5. Incl. Elevator Technology and individual units from Corporate Headquarters
- | thyssenkrupp AG l November 2020
Special items - continued focus on restructuring
Full Group [€ mn]
2018/19 | 2019/20 | ||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | ||
Disposal effect | |||||||||||
AT | Impairment | (1) | (2) | (2) | (85) | (90) | (5) | (81) | (7) | (577) | (670) |
Restructuring | (6) | (6) | (94) | 5 | (14) | (87) | (190) | ||||
Others | (3) | (7) | 8 | (6) | (7) | (5) | 8 | (39) | (36) | ||
Disposal effect | |||||||||||
IC | Impairment | (3) | (2) | (1) | (46) | (100) | (147) | ||||
Restructuring | (1) | (4) | (9) | (14) | (1) | (1) | (3) | (16) | (21) | ||
Others | (1) | (10) | (2) | (13) | |||||||
Disposal effect | 1 | 1 | 15,149 | 15,149 | |||||||
ET | Impairment | (4) | (5) | (4) | (4) | ||||||
Restructuring | (3) | (22) | (13) | (19) | (56) | (7) | (6) | (4) | (10) | (28) | |
Others | (3) | (7) | (4) | (42) | (54) | (9) | (15) | (3) | (27) | ||
Disposal effect | 2 | 2 | |||||||||
PT | Impairment | (1) | (1) | (1) | (2) | ||||||
Restructuring | (2) | (1) | (2) | (7) | (13) | (1) | (6) | (5) | (16) | (28) | |
Others | (5) | 5 | (8) | (1) | (8) | ||||||
Disposal effect | |||||||||||
MS | Impairment | ||||||||||
Restructuring | (1) | (1) | (4) | (1) | (5) | ||||||
Others | |||||||||||
Disposal effect | (1) | (1) | (1) | (1) | |||||||
MX | Impairment | (1) | (4) | (5) | (2) | (492) | (494) | ||||
Restructuring | (3) | (2) | (5) | (15) | (24) | (2) | (15) | (9) | (89) | (115) | |
Others | 2 | (4) | (9) | (12) | 2 | 1 | (1) | (16) | (15) | ||
Disposal effect | (4) | (20) | (3) | (1) | (28) | ||||||
SE | Impairment | (1) | (1) | (1,558) | (1,558) | ||||||
Restructuring | (1) | (1) | (1) | (3) | (1) | (124) | (10) | (17) | (152) | ||
Others | 1 | (134) | 12 | (122) | |||||||
HQ | Disposal effect | (10) | (25) | 6 | (9) | (39) | (22) | (83) | (7) | 1 | (111) |
Impairment | (3) | (3) | (1) | (1) | |||||||
Corp. | |||||||||||
Restructuring | (1) | (1) | (1) | (11) | (14) | (16) | (12) | (2) | (1) | (30) | |
Others | (1) | 16 | (4) | 1 | 14 | 1 | (1) | (2) | (2) | ||
Consolidation/Others | (2) | (3) | (4) | (13) | (21) | (4) | (4) | (2) | (170) | (180) | |
Group | (36) | (204) | (42) | (242) | (524) | (166) | (382) | (73) | 11,956 | 11,334 |
Comments on Q4
- Impairment fixed and current assets (increased WACC, lower sales and earnings expectations, also pandemic-related)
- Restructuring at SY and SP and on segment level
- Impairment of fixed assets, technical equipment and buildings
- Restructuring mainly in Europe
- Restructuring in Europe/Africa and Americas
- Preparation of the carve-out
- Counter effect by deconsolidation gain
- Restructuring throughout the businesses
- Impairments on financial assets and warehouse locations
-
Restructuring mainly in Germany, Great Britain, France and
USA - Impairments at fixed assets (lower sales and earnings expectations, also pandemic-related)
- Restructuring for steel strategy 20-30
- Project expenses and income in connection with the Elevator transaction and separation from tkAG
- Restructuring at tkAG
- Mainly impairment on buildings at the thyssenkrupp Quarter
11 | thyssenkrupp AG l November 2020
Special items - new segment structure and new special items guideline
Continuing Operations [€ mn]
2019/20 | |||||
Q1 | Q2 | Q3 | Q4 | ||
MX | Disposal effect | 1 | 5 | ||
Impairment | (2) | (377) | |||
Restructuring | (1) | (9) | (3) | (71) | |
Disposal effect | |||||
IC | Impairment | (1) | (46) | (100) | |
Restructuring | (1) | (1) | (3) | (16) | |
AT | Disposal effect | (2) | |||
Impairment | (1) | (78) | (6) | (565) | |
Restructuring | (37) | 6 | 9 | (35) | |
SE | Disposal effect | (3) | (3) | (1) | (10) |
Impairment | (1,507) | ||||
Restructuring | (1) | (124) | (8) | (17) | |
MS | Disposal effect | ||||
Impairment | |||||
Restructuring | (4) | (1) | |||
MT | Disposal effect | 10 | |||
Impairment | (4) | (3) | (2) | (179) | |
Restructuring | (58) | (5) | (27) | (56) | |
Corp. HQ | Disposal effect | (22) | (83) | 5 | 4 |
Impairment | (1) | ||||
Restructuring | (16) | (12) | (2) | (1) | |
Consolidation/Others | (4) | 1 | (1) | (142) | |
Cont. Ops. | (137) | (361) | (40) | (3,069) |
FY
6
(379)
(85)
(147)
(21)
(2)
(650)
(56)
(16)
(1,507)
(150)
(5)
11
(188)
(146)
(97)
(1)
(30)
(146)
(3,607)
- Stricter interpretation of special items guideline leading to less adjustments and therefore to better transparency and credibility both internally and externally
- Revision affects restructuring measures and other non-operating gains and losses:
- Only restructuring measures according to IFRS will be adjusted going forward
- Other non-operating gains and losses will not be adjusted going forward
12 | thyssenkrupp AG l November 2020
Outlook 20/21: Step-up in operational performance, strongest contribution from value levers
New reporting structure as of October 01, 2020 [€ bn]
- Increase in low to mid single-digit %-range, however, depending on customer demand recovery, particularly auto
Sales
• GDP assumptions 2021: Germany +3.9%, USA +3.5%, China +7.1%; before potential impact of 2nd wave of pandemic
(1.6) | mid 3-digit | |||
-ve | ||||
EBIT | ||||
adj. | • | SE "low 3-digit-ve" | ||
• | MT "low-mid3-digit-ve" | |||
FY | Market | Value | Lower | FYE |
19/20 | levers | D/A | 20/21 | |
Continued qoq improvement in Q1 expected
Value levers of segments for structural improvements in FY 20/21 and beyond, e.g.
- Expansion of service offerings o New (higher margin) products
- Steel, components for e-mobility
- Alkaline water electrolysis
-
Portfolio streamlining, footprint opt. o Personnel productivity
o Process efficiencies o Project execution
o Product quality improvements o Procurement gains
FCF | • ~€(1.5) bn -ve (vs. prior year €(5.5) bn -ve) |
bef. M&A | mainly by: operational improvements; omission of one-timer (e.g. termination y/e NWC measures; cartel fine SE) |
13 | thyssenkrupp AG l November 2020
Outlook 20/21: step-up in operational performance, strongest contribution from value levers
Continued qoq improvement in Q1 expected [€ mn]
19/201 20/21E | Outlook FY 20/21E | ||
MX | (85) | Sig. improvement back to positive due to structural improvements, absence of negative one-time effects and sig. | |
increase in volumes (from low level, but not expected to return to pre-crisis levels) | |||
IC | |||
139 | Slightly up, supported by recovery in the market for forgings and continued robust demand for bearings | ||
AT | (166) | Recovery back to positive resulting mainly from rising contribution from the new plants and projects, continuing | |
efficiency measures and lower D/A | |||
SE | (820) | Sig. improvement, but still negative in low 3-digit m€ range reflecting structural improvements from Strategy 20-30, | |
lower D/A and sig. volume recovery (from low level, but not expected to return to pre-crisis levels) | |||
MS | 20 | Slightly up, supported by performance measures and improvements in project execution | |
MT | (593) | Significant improvement to a loss in low to mid 3-digit m€ range; substantial progress across all businesses | |
HQ/ | |||
(221) | Improvement vs. prior-year level | ||
Cons./Others | (57) | ||
EBIT adj. | (1,782) | Sig. improvement, but still a loss in the mid 3-digit m€ range due to clear structural progress in all businesses, | |
however dependent on the market development | |||
Net income (5,541) | Sig. net loss >€(1) bn, despite clear operating improvements and the absence of impairments from the prior year |
Sig. improvement, but still negative ~€(1.5) bn, supported by operating improvements in all segments, absence of
FCF b. M&A (5,515)charges from normalization of NWC, absence of cartel fine at SE, with continuing restructuring expenses (low to mid 3-digit m€ range) and depending on cash inflows from OI and payment profile of projects at MS and PT (MT)
- 2019/20 figures adjusted for Portfolio changes and new special items guideline
- | thyssenkrupp AG l November 2020
Q4 19/201 Q1 20/21E
(51)
17
(112)
(203)
12
(211)
(46)
(31)
(624)
(3,532)
(1,503)
Materials Services: yoy increase back to profitability by growth from market recovery and business
transformation plus effective management initiatives
EBIT adj. [€ mn]
low to mid 2-digit +ve
Bottom-line
(31) | Top-line | |||
(110) | ||||
79 | ||||
FY | Shift to | FY 19/20 | Upside by | FYE |
value levers, | ||||
19/20 | Multi Tracks | pro-forma1 | 20/21 | |
markets2 |
Sales initiatives for growth in products and services
- Regional focus particularly on North America and Eastern Europe in addition to increase of shipments by market recovery
- Ramp-upof growth strategy "Materials-as-a-Service"for new revenue streams with opportunity for margin upside
Holistic approach to push efficiency
- Complexity reduction by portfolio streamlining with best- owner-approach
- Drive cost efficiency along the value chain (incl. G&A) by regionally tailored measures
- Optimization of footprint and logistics concept
- Operational excellence on shopfloor and in transportation
- Purchasing excellence
Forward topics
- Targeted small-scale M&A activities in attractive North American market
- €(85) mn incl. one-time charges due to stricter special items guideline l 2. Net of adverse effects
- | thyssenkrupp AG l November 2020
Industrial Components: foster market leading positions supported by stringent cost control
and robust market growth
EBIT adj. [€ mn]
Market growth and increase in market share
slightly
up
Bottom-
line
Top-line
- Market expectations 2021 yoy
-
wind energy:
longer-termgrowth with continued high level in 2021 despite pull- forward effects in 2020 in China from expiring subsidies - auto production:
significant recovery, however below pre-pandemic levels - construction machinery:overall stable, China slightly up
-
wind energy:
- Better product mix and additional new products and services
− Bearings:extending existing lines in LCC/BCC and continuous | |||
product development together with global customers | |||
− Forged Technologies:new service line (2nd brand strategy) for | |||
138 | undercarriages components and start of prototype production for | ||
front axles | |||
Efficiency gains by continuous and consequent cost control | |||
• Improvement of personnel productivity and reduction of | |||
personnel cost, e.g. restructuring | |||
FY | Upside by | FYE | • Production cost optimization by reduction of specific input factors |
value levers, | 20/21 | ||
19/201 | • Improving operational excellence, e.g. de-bottlenecking or | ||
markets2 | |||
optimizing process cycles | |||
• Sustainable savings in purchasing, e.g. multiple sourcing |
- €139 mn incl. one-time charges due to stricter special items guideline l 2. Net of adverse effects
- | thyssenkrupp AG l November 2020
Automotive Technology: strict cost control and efficiency measures turn around earnings back to profitability
EBIT adj. [€ mn]
Market recovery
Incl. lower D/A
by ~€60 mn
SP: +89 | |
SY (BTS,PTS): | (116) |
+55 | |
(260) | |
144 |
mid to high 2-digit m€
Bottom-
line
Top-line
- Auto production 2021E higher yoy, mainly Europe and NAFTA3, however below pre-pandemiclevels and with still high uncertainty in market environment
- Further ramp-upof new projects and plants mainly at Steering
Efficiency gains by continuous and consequent cost control
• Improving personnel productivity, e.g. restructuring |
− Reduction of ~800 FTE in 20/21E mainly at Damper |
and SY Body |
− Annual savings in low 2-digit mn € range |
• Operational Excellence |
FY | Shift to | FY 19/20 | Omission | Upside by | FYE |
value levers, | 20/21 | ||||
19/20 | Multi Tracks | pro-forma1 | one-offs | ||
markets2 | |||||
- €(166) mn incl. one-time charges due to stricter special items guideline l 2. Net of adverse effects | 3. Source: IHS light vehicle model production
- | thyssenkrupp AG l November 2020
− Optimization of production, reduction of operational |
costs linked with improvement of quality as well as |
optimized R&D structure |
− Strategic Supplier Management / Procurement |
Marine Systems: diligent calculation, strict cost control and efficiency measures turn around earnings
EBIT adjusted in million €
Slightly |
up |
Bottom |
line |
Top line |
18 |
FY | Upside by | FYE |
value levers, | ||
19/201 | 20/21 | |
markets2 | ||
1. €20 mn incl. structural changes going forward l 2. Net of adverse effects
18 | thyssenkrupp AG l November 2020
Organic growth from order backlog and project funnel
- Tamandaré project (frigates for Brazil)
- Finalize contractual negotiations submarines Norway/Germany
Performance measures and consequent cost control
- Performance push naval electronic systems (e.g. restructuring location Wedel)
- Performance push Service
- Additional push from commercial project execution
- Procurement Excellence
- Optimization of project execution via integrated project teams
- Structural changes along the value chain
Forward topics
- Advancing existing products
- Modernization Kiel shipyard
Steel Europe: significant improvement by volume recovery and acceleration of strategy SE 20-30
EBIT adj. [€ mn]
low
3-digit-ve
Market recovery
• Increase in shipments by up to ~+10%, |
mainly recovery in Auto and Industry |
− Ramp-up of "focus products" as main driver |
(~+20% yoy, mainly Auto) |
• Better utilization leads to significantly improved cost base in |
up-/downstream operations and raw materials consumption |
• High level of I/O prices a potential push for steel prices |
(946)
(832)
Bottom-
line
Top line | Incl. lower D/A | |
by ~€140 mn | ||
Restructuring and further efficiency from SE 20-30
• Bundling of functions and new organizational set-up |
− Further reduction of >200 FTEs, mainly in administration; |
~550 FTEs already reduced in FY 19/20; |
savings of mid 2-digit €mn |
115
FY | Shift to | Act | Upside by | FYE |
19/20 | value levers, | |||
19/20 | Multi Tracks | 20/21 | ||
pro-forma1 | markets2 | |||
• Further efficiency gains of ~€50 mn |
Forward topics:
-
Work towards climate neutrality with strong concepts
"tkH2Steel"
- €(820) mn incl. one-time charges due to stricter special items guideline l 2. Net of adverse effects
- | thyssenkrupp AG l November 2020
Group of Companies - target portfolio defined for turnaround and true performance culture
Reporting structure as of October 01, 2020
Former BA Structure
Automotive | Industrial | Elevator | Plant | Marine | Materials | Steel |
Technology | Components | Technology | Technology | Systems | Services | Europe |
AT | PT | |||||||||||||||||
Bearings | ||||||||||||||||||
MX | ||||||||||||||||||
Springs & Stabilizers | ET | Cement Technologies | MS | SE | ||||||||||||||
Powertrain Solutions | Forged | Chemical & Process | AST | |||||||||||||||
Technologies | ||||||||||||||||||
Technologies | ||||||||||||||||||
Battery Solutions | Mining Technologies | Infrastructure | Heavy Plate | |||||||||||||||
Group of Companies
Industrial | Automotive | Steel | Marine | ||
Materials Services | Components | Technology | Europe | Systems | Multi Tracks1 |
Bearings | |||
MX | AT | SE | MS |
Forged
Technologies
AST | SP | CEM | ||
SY PTS | SY BTS | CC | ||
CPT | HP | tkE stake | ||
MIN | Infrastructure | |||
Stand alone | Dual Track | tk not best sole owner | ||||
Evolve on their own | Evolve on their own or | Sell, Partnership, Close | ||||
Sales2 | by industry consolidation | |||||
€9.9 bn | €2.1 bn | €4.1 bn | €7.0 bn | €1.8 bn | €5.5 bn | |
EBIT adj.2,3 | €(85) mn | €139 mn | €(166) mn | €(820) mn | €20 mn | €(593) mn |
1. HP: Heavy plate (SE); Infrastructure: Technical Services excl. Mill Services & Systems (MX); SP: Springs & Stabilizers (AT); BTS: OU Battery Solutions (SY); PTS: OU Powertrain Solutions (SY); AST: Acciai Speciali Terni, stainless steel production and stainless
distribution (MX); CPT: Chemical Plants, MIN: Mining, CEM: Cement (PT), CC: Carbon Components l 2. Prof-forma based on FY 2019/20 l 3. Adjustments according to stricter guideline special items as of October 01, 2020 | Shift to Multi Track |
20 | thyssenkrupp AG l November 2020 | |
Key financials | |
Full Group | |
[€ mn] | |
2018/19 | 2019/201) | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Order intake | 10,111 | 10,360 | 10,219 | 11,303 | 41,994 | 9,660 | 9,542 | 6,693 | 8,996 | 34,891 |
Sales | 9,736 | 10,638 | 10,779 | 10,843 | 41,996 | 9,674 | 10,108 | 7,710 | 7,951 | 35,443 |
EBITDA | 465 | 321 | 483 | 256 | 1,525 | 237 | (6) | (176) | 14,669 | 14,725 |
EBITDA adjusted | 500 | 526 | 519 | 413 | 1,958 | 398 | 258 | (111) | (98) | 447 |
EBIT | 181 | 32 | 183 | (124) | 272 | (115) | (462) | (488) | 11,541 | 10,475 |
EBIT adjusted | 217 | 240 | 226 | 119 | 802 | 50 | (80) | (415) | (414) | (860) |
EBT | 99 | (55) | 80 | (207) | (83) | (206) | (537) | (574) | 11,429 | 10,112 |
Net income/(loss) | 68 | (161) | (77) | (89) | (260) | (364) | (946) | (668) | 11,570 | 9,592 |
attrib. to tk AG stockh. | 60 | (173) | (94) | (97) | (304) | (372) | (948) | (678) | 11,583 | 9,585 |
Earnings per share2) (€) | 0.10 | (0.28) | (0.15) | (0.16) | (0.49) | (0.60) | (1.52) | (1.09) | 18.61 | 15.40 |
Operating cash flow | (2,245) | 319 | 218 | 1,781 | 72 | (2,144) | 132 | (489) | (825) | (3,326) |
Cash flow from divestm. | 25 | 27 | 8 | 49 | 108 | 18 | 11 | 21 | 14,716 | 14,766 |
Cash flow from investm. | (257) | (323) | (375) | (489) | (1,443) | (327) | (359) | (292) | (1,374) | (2,352) |
Free cash flow | (2,477) | 22 | (149) | 1,341 | (1,263) | (2,453) | (215) | (760) | 12,516 | 9,088 |
FCF before M&A | (2,477) | 23 | (92) | 1,406 | (1,140) | (2,476) | (209) | (770) | (1,380) | (4,835) |
TK Value Added | (1,068) | 9,073 | ||||||||
Ø Capital Employed | 16,058 | 16,623 | 16,815 | 16,749 | 16,749 | 17,851 | 18,220 | 18,266 | 17,526 | 17,526 |
Cash and cash equivalents | ||||||||||
(incl. short-term securities) | 2,303 | 2,947 | 2,845 | 3,712 | 3,712 | 2,087 | 2,525 | 2,591 | 11,555 | 11,555 |
Net financial debt | 4,684 | 4,834 | 5,101 | 3,703 | 3,703 | 7,138 | 7,549 | 8,461 | (5,053) | (5,053) |
Equity | 3,274 | 2,882 | 2,494 | 2,220 | 2,220 | 1,934 | 1,174 | (9) | 10,174 | 10,174 |
Employees | 161,496 | 161,153 | 161,740 | 162,372 | 162,372 | 161,538 | 160,090 | 155,446 | 103,598 | 103,598 |
- Figures incl. effects of IFRS 16 | 2. Attributable to tk AG's stockholders
- | thyssenkrupp AG l November 2020
NFD includes €1 bn IFRS 16 effect
Key financials
[€ mn]
Continuing operations
2018/19 | 2019/201) | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Order intake | 7,968 | 8,366 | 8,221 | 9,270 | 33,825 | 7,429 | 7,559 | 4,793 | 8,369 | 28,150 |
Sales | 7,813 | 8,768 | 8,738 | 8,717 | 34,036 | 7,629 | 8,247 | 5,765 | 7,258 | 28,899 |
EBITDA | 245 | 129 | 239 | 39 | 652 | 9 | (136) | (417) | (534) | (1,079) |
EBITDA adjusted | 296 | 327 | 281 | 141 | 1,046 | 129 | 40 | (374) | (195) | (400) |
EBIT | (18) | (137) | (39) | (318) | (511) | (302) | (561) | (729) | (3,663) | (5,255) |
EBIT adjusted | 13 | 41 | (13) | (152) | (110) | (177) | (266) | (679) | (511) | (1,633) |
EBT | (96) | (224) | (125) | (410) | (855) | (382) | (630) | (810) | (3,771) | (5,593) |
Net income/(loss) | (64) | (272) | (213) | (562) | (1,110) | (442) | (688) | (879) | (3,532) | (5,541) |
attrib. to tk AG stockh. | (72) | (283) | (229) | (569) | (1,153) | (449) | (691) | (819) | (3,588) | (5,547) |
Earnings per share2) (€) | (0.11) | (0.46) | (0.37) | (0.91) | (1.85) | (0.72) | (1.11) | (1.33) | (5.75) | (8.91) |
Operating cash flow | (2,255) | 72 | (53) | 1,572 | (664) | (2,109) | (58) | (1,004) | (1,053) | (4,224) |
Cash flow from divestm. | 23 | 26 | 7 | 45 | 101 | 18 | 6 | 21 | 14,738 | 14,783 |
Cash flow from investm. | (233) | (286) | (289) | (402) | (1,210) | (295) | (318) | (241) | (1,334) | (2,188) |
Free cash flow | (2,465) | (188) | (335) | 1,215 | (1,773) | (2,385) | (371) | (1,224) | 12,351 | 8,371 |
FCF before M&A | (2,465) | (188) | (335) | 1,233 | (1,756) | (2,405) | (369) | (1,238) | (1,503) | (5,515) |
Employees | 108,211 | 108,235 | 108,727 | 109,288 | 109,288 | 108,700 | 107,523 | 104,356 | 103,598 | 103,598 |
- Figures incl. effects of IFRS 16 | 2. Attributable to tk AG's stockholders
- | thyssenkrupp AG l November 2020
Sales by region FY 2019/20
[Continuing Operations, %]
Automotive | Industrial | Plant | Marine | Materials | Steel | thyssenkrupp | |
Technology | Components | Technology | Systems | Services | Europe | Cont. Ops. | |
Worldwide (€mn) | 4,702 | 2,099 | 2,896 | 1,750 | 11,300 | 7,269 | 28,899 |
DACHLI1 | 29.6 | 19.1 | 7.4 | 18.4 | 36.8 | 54.6 | 33.3 |
Germany | 28.3 | 17.0 | 7.1 | 18.4 | 34.1 | 52.2 | 31.2 |
Central/ Eastern Europe | 6.0 | 1.9 | 16.9 | 0.0 | 12.3 | 7.5 | 9.3 |
Western Europe | 16.2 | 19.0 | 4.0 | 7.0 | 22.7 | 21.1 | 18.7 |
North America | 22.1 | 20.7 | 7.2 | 0.4 | 21.2 | 7.6 | 15.7 |
USA | 17.7 | 17.8 | 3.9 | 0.4 | 17.5 | 4.9 | 12.5 |
South America | 1.9 | 5.4 | 6.8 | 0.6 | 0.3 | 1.4 | 1.9 |
Asia/Pacific | 0.9 | 3.2 | 20.7 | 21.3 | 3.3 | 0.8 | 5.2 |
CIS | 0.3 | 0.8 | 5.7 | 0.0 | 0.3 | 0.8 | 1.0 |
Greater China | 21.4 | 27.8 | 6.6 | 0.0 | 0.9 | 1.9 | 7.0 |
China | 21.4 | 27.6 | 5.0 | 0.0 | 0.6 | 1.9 | 6.7 |
India | 0.2 | 1.4 | 8.6 | 2.1 | 0.5 | 0.6 | 1.5 |
Middle East & Africa | 1.4 | 0.8 | 16.0 | 50.1 | 1.6 | 3.7 | 6.5 |
1. D = Germany, A = Austria, CH = Switzerland, LI = Liechtenstein l 2. Incl. Marine Systems
23 | thyssenkrupp AG l November 2020
Sales by customer group FY 2019/20
[Continuing Operations, %]
Automotive | Industrial | Plant | Marine | Materials | Steel | thyssenkrupp | |
Technology | Components | Technology | Systems | Services | Europe | Cont. Ops. | |
Overall (€mn) | 4,702 | 2,099 | 2,896 | 1,750 | 11,300 | 7,269 | 28,899 |
Automotive | 93.2 | 30.1 | 0.0 | 0.0 | 14.0 | 28.0 | 29.7 |
Steel and related processing | 0.1 | 1.5 | 0.8 | 0.0 | 19.2 | 20.5 | 12.0 |
Trading | 4.9 | 3.5 | 0.6 | 0.3 | 16.6 | 24.0 | 11.1 |
Construction | 0.0 | 0.7 | 0.0 | 0.0 | 5.8 | 0.3 | 2.4 |
Engineering | 0.6 | 60.3 | 49.5 | 0.7 | 9.2 | 3.5 | 13.7 |
Public sector | 0.0 | 0.2 | 0.0 | 96.4 | 0.4 | 0.0 | 6.0 |
Energy andutilities | 0.0 | 1.0 | 0.0 | 0.0 | 1.2 | 2.8 | 1.3 |
Packaging | 0.0 | 0.1 | 0.1 | 0.0 | 0.8 | 16.5 | 4.5 |
Other customer groups | 1.2 | 2.6 | 49.0 | 2.7 | 32.9 | 4.3 | 19.4 |
1. D = Germany, A = Austria, CH = Switzerland, LI = Liechtenstein l 2. Incl. Marine Systems
24 | thyssenkrupp AG l November 2020
AT
Automotive Technology1
[€ mn]
2018/192) | 2019/203) | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Order intake | 1,283 | 1,306 | 1,308 | 1,354 | 5,251 | 1,353 | 1,182 | 815 | 1,260 | 4,610 |
Sales | 1,231 | 1,358 | 1,365 | 1,453 | 5,407 | 1,367 | 1,267 | 842 | 1,226 | 4,702 |
EBITDA | 67 | 61 | 65 | 16 | 210 | (2) | 17 | (62) | (164) | (210) |
EBITDA adjusted | 70 | 68 | 57 | 29 | 224 | 94 | 27 | (56) | (25) | 40 |
EBIT | 9 | 0 | 2 | (136) | (126) | (78) | (130) | (142) | (807) | (1,157) |
EBIT adjusted | 13 | 9 | (5) | (39) | (22) | 21 | (49) | (129) | (104) | (260) |
EBIT adj. margin (%) | 1.0 | 0.7 | (0.3) | (2.7) | (0.4) | 1.6 | (3.9) | (15.3) | (8.5) | (5.5) |
tk Value Added | (381) | (1,421) | ||||||||
Ø Capital Employed | 2,784 | 2,909 | 2,988 | 3,006 | 3,006 | 3,081 | 3,132 | 3,172 | 3,110 | 3,110 |
BCF | (313) | (134) | (75) | 126 | (396) | (251) | (169) | (215) | (141) | (776) |
CF from divestm. | 1 | 0 | 1 | 0 | 2 | 0 | 1 | 4 | 2 | 7 |
CF for investm. | (100) | (98) | (93) | (105) | (396) | (100) | (75) | (65) | (132) | (372) |
Employees | 24,712 | 24,984 | 25,513 | 25,834 | 25,834 | 25,891 | 25,572 | 24,793 | 24,763 | 24,763 |
Current trading conditions
- Order intake in Q4 at €1,260 mn (+55% qoq; -7% yoy, ex F/X -4%); sales in Q4 at €1,226 mn (+46% qoq; -16% yoy, ex F/X -13%)
- Order and sales recovery by ~50% qoq in almost all business driven by restart of auto production and additionally supported by state stimulus packages and other incentives; support from ramp-up of new plants and projects mainly at Steering
- EBIT adj. in Q4 at €(104) mn 19% up qoq, but significantly below prior year
- Demand recovery leading to strong qoq operating improvement vs. one-time effects in low 3-digit €mn range not adjusted as special items (revaluation of orders for automotive production lines, allocations to order-related provisions and impairment losses on current assets)
- Springs & Stabilizers and System Engineering still negative; restructuring continues (SP: closure Olpe, realignment Hagen, SY: operational realignment by splitting into two
independent companies for body and battery/powertrain with subsequent restructuring)
- Organizational structure based on "newtk" until 30.09.2020: Former Components Technology renamed Automotive Technology, now incl. System Engineering (previously part of former Industrial Solutions) | 2. Fig. on a pro-forma basis | 3. Fig. incl. effects of IFRS 16
- | thyssenkrupp AG l November 2020
IC
Industrial Components1
[€ mn]
2018/192) | 2019/203) | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Order intake | 643 | 702 | 661 | 631 | 2,636 | 558 | 589 | 432 | 517 | 2,095 |
Order backlog | 938 | 1,014 | 1,010 | 1,005 | 1,005 | 1,013 | 1,011 | 980 | 946 | 946 |
Sales | 573 | 650 | 660 | 639 | 2,522 | 544 | 573 | 452 | 530 | 2,099 |
EBITDA | 72 | 86 | 84 | 83 | 325 | 72 | 81 | 50 | 24 | 228 |
EBITDA adjusted | 73 | 87 | 99 | 94 | 353 | 73 | 82 | 53 | 45 | 253 |
EBIT | 42 | 56 | 52 | 51 | 201 | 43 | 5 | 23 | (100) | (29) |
EBIT adjusted | 43 | 57 | 69 | 61 | 230 | 44 | 52 | 26 | 16 | 138 |
EBIT adj. margin (%) | 7.5 | 8.7 | 10.5 | 9.6 | 9.1 | 8.1 | 9.0 | 5.8 | 3.1 | 6.6 |
tk Value Added | 82 | (157) | ||||||||
Ø Capital Employed | 1,364 | 1,380 | 1,393 | 1,391 | 1,391 | 1,502 | 1,516 | 1,514 | 1,504 | 1,504 |
BCF | 46 | 26 | 46 | 113 | 232 | (50) | 11 | 8 | (45) | (76) |
CF from divestm. | 5 | 1 | 1 | 5 | 12 | 0 | 0 | (0) | 1 | 1 |
CF for investm. | (12) | (18) | (26) | (46) | (103) | (28) | (25) | (34) | (88) | (176) |
Employees | 14,493 | 14,350 | 14,120 | 13,773 | 13,773 | 13,528 | 13,318 | 12,517 | 12,500 | 12,500 |
Current trading conditions
- Order intake in Q4 at €517 mn (+20% qoq; -18% yoy, ex F/X -14%); sales in Q4 at €530 mn (+17% qoq; -17% yoy, ex F/X -13%)
- Bearings: good development overall esp. wind energy China and exploration, slight decrease in components for cranes, pandemic-induced decline at aerospace and auto components
- Forged Technologies: sig. up qoq due to demand recovery; yoy however down due to pandemic-driven demand decline as well as ongoing cyclical downturn; cars/trucks with sig. decline in cyclical Class 8 truck market (esp. USA); undercarriages with continued cyclical demand decline, partially compensated by broader product portfolio and exploitation of new markets and business segments
EBIT adj. in Q4 at €16 mn below prior quarter (-39%) and prior year (-74%)
- Bearings: overall with positive volume and structural effects, however temporarily slightly lower
- Forged Technologies: earnings and margin improvement following sales recovery
1. Organizational structure based on "newtk" until 30.09.2020: Incl. Bearings and Forged Technologies (previously part of former Components Technology) | 2. Figures on a pro-forma basis | 3. Figures incl. effects of IFRS 16
26 | thyssenkrupp AG l November 2020
PT
Plant Technology1
[€ mn]
2) | 3) | |||||||||
2018/19 | 2019/20 | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Order intake | 668 | 513 | 1,048 | 614 | 2,844 | 568 | 457 | 360 | 285 | 1,670 |
Order backlog | 5,021 | 4,881 | 5,189 | 4,847 | 4,847 | 4,615 | 4,252 | 3,971 | 3,424 | 3,424 |
Sales | 615 | 669 | 725 | 935 | 2,943 | 755 | 737 | 644 | 761 | 2,897 |
EBITDA | (29) | (17) | (50) | (31) | (127) | (8) | (16) | (91) | (102) | (217) |
EBITDA adjusted | (22) | (21) | (43) | (23) | (109) | (7) | (10) | (86) | (86) | (190) |
EBIT | (37) | (26) | (63) | (38) | (164) | (19) | (27) | (102) | (117) | (265) |
EBIT adjusted | (30) | (30) | (55) | (30) | (145) | (18) | (21) | (97) | (100) | (235) |
EBIT adj. margin (%) | (4.9) | (4.4) | (7.5) | (3.3) | (4.9) | (2.3) | (2.8) | (15.0) | (13.1) | (8.1) |
tk Value Added | (152) | (253) | ||||||||
Ø Capital Employed | (64) | (86) | (139) | (152) | (152) | (191) | (201) | (180) | (141) | (141) |
BCF | (31) | 0 | (111) | (111) | (253) | 123 | (124) | (163) | (248) | (411) |
CF from divestm. | 1 | 0 | 5 | 21 | 28 | 14 | 1 | (0) | 1 | 15 |
CF for investm. | (8) | (9) | (9) | (9) | (35) | (8) | (9) | (4) | (16) | (36) |
Employees | 11,113 | 11,107 | 11,423 | 11,419 | 11,419 | 11,300 | 11,218 | 10,919 | 10,753 | 10,753 |
Current trading conditions
- Order intake in Q4 at €285 mn (-54% yoy, ex F/X -52%); down yoy due to medium-sized chemical and mining orders in prior year; market for new orders still challenging due to pandemic, however first green shoots in project activity; robust service business
- Chemicals: increasing customer interest for electrolysis plants and equipment
- Cement: overall positive development, upgrade for existing cement line in Q4
- Mining: pandemic-induced slower customer activity overall; however medium-sized order for port handling equipment in Q4
- Sales in Q4 at €761 mn (-19% yoy, ex F/X -16%);ramp-up of large chemical orders and robust service business partially compensate still ongoing pandemic decline
- EBIT adj. in Q4 at €(100) mn below prior year and negative as higher chemical earnings, G&A cost reductions and robust service couldn't compensate pandemic effects (mainly underutilization, additional construction site costs and lower project billing overall)
1. Organizational structure based on "newtk" until 30.09.2020: Former Industrial Solutions renamed Plant Technology (now excl. System Engineering, now part of Automotive Technology) | 2. Figures on a pro-forma basis | 3. Figures incl. effects of IFRS 16
27 | thyssenkrupp AG l November 2020
MS
Marine Systems
[€ mn]
2018/19 | 2019/201) | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Order intake | 107 | 133 | 145 | 1,807 | 2,192 | 103 | 132 | 123 | 1,869 | 2,227 |
Order backlog | 5,300 | 4,944 | 4,571 | 5,887 | 5,887 | 5,610 | 5,313 | 5,045 | 6,029 | 6,029 |
Sales | 298 | 497 | 510 | 496 | 1,800 | 381 | 423 | 385 | 561 | 1,750 |
EBITDA | 12 | 12 | 12 | 16 | 52 | 13 | 13 | 18 | 28 | 72 |
EBITDA adjusted | 12 | 12 | 13 | 16 | 53 | 13 | 16 | 19 | 28 | 77 |
EBIT | 0 | (0) | (1) | 1 | 0 | (0) | (2) | 3 | 11 | 13 |
EBIT adjusted | 0 | (0) | (0) | 1 | 1 | (0) | 2 | 4 | 12 | 18 |
EBIT adj. margin (%) | 0.0 | (0.0) | (0.0) | 0.0 | 0.0 | 0.0 | 0.5 | 1.0 | 2.1 | 1.0 |
tk Value Added | (74) | (89) | ||||||||
Ø Capital Employed | 710 | 799 | 883 | 927 | 927 | 1,196 | 1,206 | 1,225 | 1,266 | 1,266 |
BCF | (148) | (131) | 76 | (129) | (333) | (49) | 37 | (139) | (51) | (203) |
CF from divestm. | 1 | 0 | (0) | 0 | 1 | 0 | 0 | 0 | (0) | 0 |
CF for investm. | (8) | (9) | (13) | (28) | (59) | (13) | (19) | (12) | (30) | (73) |
Employees | 5,868 | 5,859 | 5,870 | 6,013 | 6,013 | 6,104 | 6,133 | 6,161 | 6,321 | 6,321 |
Current trading conditions
Q4 Order Intake: positive due to contract for 4 frigates for Brazilian navy, which came into effect
Q4 Sales: Better progress as planned and over prior quarter on the execution of contracts due to subcontractors in submarine business Q4 EBIT adj. better qoq and yoy, as measures for performance improvement gain traction
Q4 BCF determined by milestone payment profile and order intake related down payment, respectively
1. Figures incl. effects of IFRS 16
28 | thyssenkrupp AG l November 2020
MX
Materials Services
[€ mn]
2018/19 | 2019/201) | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Order intake | 3,370 | 3,821 | 3,336 | 3,340 | 13,868 | 3,078 | 3,325 | 2,242 | 2,741 | 11,386 |
thereof Materials Production | 401 | 489 | 401 | 431 | 1,721 | 427 | 545 | 225 | 495 | 1,691 |
Sales | 3,388 | 3,696 | 3,505 | 3,291 | 13,881 | 3,046 | 3,389 | 2,245 | 2,620 | 11,300 |
thereof Materials Production | 390 | 463 | 453 | 430 | 1,736 | 389 | 461 | 337 | 348 | 1,535 |
EBITDA | 49 | 79 | 63 | (11) | 180 | 54 | 58 | (66) | (169) | (123) |
EBITDA adjusted | 50 | 81 | 72 | 17 | 220 | 55 | 72 | (55) | (2) | 69 |
thereof Materials Production | 16 | 6 | 12 | 8 | 42 | 7 | 5 | (21) | (28) | (38) |
EBIT | 22 | 51 | 34 | (41) | 66 | 11 | 14 | (111) | (646) | (733) |
EBIT adjusted | 22 | 53 | 43 | (12) | 107 | 11 | 28 | (100) | (48) | (110) |
thereof Materials Production | 7 | (4) | 3 | (2) | 4 | (3) | (5) | (31) | (39) | (78) |
EBIT adj. margin (%) | 0.7 | 1.4 | 1.2 | (0.4) | 0.8 | 0.4 | 0.8 | (4.5) | (1.8) | (1.0) |
thereof Materials Production | 1.8 | (0.8) | 0.6 | (0.4) | 0.2 | (0.8) | (1.2) | (9.3) | (11.1) | (5.1) |
tk Value Added | (244) | (1,045) | ||||||||
Ø Capital Employed | 3,782 | 3,898 | 3,914 | 3,866 | 3,866 | 4,035 | 4,179 | 4,183 | 3,901 | 3,901 |
BCF | (879) | 417 | (186) | 689 | 41 | (907) | 280 | (143) | (580) | (1,351) |
thereof Materials Production | (134) | 18 | (22) | 144 | 6 | (224) | (22) | (13) | (222) | (481) |
CF from divestm. | 1 | 17 | 1 | 13 | 33 | 5 | 4 | 1 | 11 | 21 |
CF for investm. | (18) | (36) | (30) | (51) | (135) | (23) | (34) | (33) | (74) | (164) |
Employees | 20,378 | 20,302 | 20,242 | 20,340 | 20,340 | 20,238 | 20,023 | 19,239 | 18,817 | 18,817 |
Current trading conditions
Sales in Q4 significantly up qoq: Improved market environment; Significant higher volumes in warehousing, distribution and auto-related service centers mainly due to higher demand in Europe and North America; Price recovery at carbon steel in September (however still on low level)
EBIT adj. in Q4 improved qoq but still negative: Earnings recovery especially at auto-related service centers; Covid-19 countermeasures e.g. G&A cost reductions cannot compensate underutilization; AST with negative earnings contribution due to unfavourable price situation for stainless steel (especially low basic price level); BCF in Q4 significantly negative mainly due to the normalization of net working capital
1. Figures incl. effects of IFRS 16
29 | thyssenkrupp AG l November 2020
SE
Steel Europe
[€ mn]
2018/19 | 2019/201) | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Order intake | 2,341 | 2,451 | 2,177 | 1,814 | 8,784 | 2,115 | 2,259 | 943 | 2,008 | 7,325 |
Sales | 2,131 | 2,350 | 2,347 | 2,237 | 9,065 | 1,851 | 2,154 | 1,455 | 1,810 | 7,269 |
EBITDA | 147 | (6) | 121 | 58 | 321 | (48) | (218) | (228) | (142) | (635) |
EBITDA adjusted | 152 | 149 | 113 | 61 | 475 | (46) | (94) | (218) | (122) | (480) |
EBIT | 34 | (118) | 9 | (48) | (123) | (166) | (332) | (344) | (1,815) | (2,656) |
EBIT adjusted | 38 | 37 | 1 | (45) | 31 | (164) | (208) | (334) | (240) | (946) |
EBIT adj. margin (%) | 1.8 | 1.6 | 0.0 | (2.0) | 0.3 | (8.9) | (9.6) | (22.9) | (13.3) | (13.0) |
tk Value Added | (586) | (3,111) | ||||||||
Ø Capital Employed | 5,307 | 5,498 | 5,532 | 5,447 | 5,447 | 5,396 | 5,546 | 5,549 | 5,352 | 5,352 |
BCF | (832) | (52) | 124 | 687 | (72) | (1,045) | (81) | (268) | (180) | (1,574) |
CF from divestm. | 11 | 0 | (0) | 1 | 12 | (2) | (1) | (1) | (9) | (14) |
CF for investm. | (94) | (117) | (110) | (161) | (482) | (121) | (141) | (90) | (146) | (498) |
Employees | 27,613 | 27,882 | 27,934 | 28,278 | 28,278 | 28,093 | 27,869 | 27,559 | 27,434 | 27,434 |
Current trading conditions
- EU carbon flat steel market with further economic slowdown, mainly driven by:
- extremely challenging market environment due to corona pandemic, continuing structural overcapacities, risks from trade imbalances, increased iron ore prices with falling revenues
- increasing geopolitical and foreign trade tensions and uncertainties
- still noticeably high imports (in particular Turkey, Russia, South Korea) and safeguard measures so far had not a major limiting effect
- Shipments sig. increased in Q4 QoQ (2.3 mt vs. prior quarter 1.8 mt), driven by rebound of demand in almost all industries, in particular Auto; shipments below Q4 prior year (2.6 mt)
- Sales in Q4 up QoQ due to sig. higher shipments with better product mix (auto demand), but still below prior year due to lower sales price levels yoy
- EBIT adj. in Q4 sig. up QoQ due to sig. higher shipments with better product mix and improved utilization, but still impacted by corona pandemic; still below Q4 prior year due to temporary inefficient cost base, which is already addressed with our Strategy 20/30
1. Figures incl. effects of IFRS 16
30 | thyssenkrupp AG l November 2020
Volume KPI's of Materials Businesses
2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | ||||||||||||
FY | FY | FY | FY | FY | FY | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | ||||
Total shipments | kt | 10,868 | 10,669 | 13,615 | 13,421 | 12,605 | 10,966 | 11,096 | 2,376 | 2,672 | 2,388 | 2,413 | 9,849 | 2,254 | 2,410 | 1,977 | 2,083 | 8,725 | ||
MX Warehousing shipments1 | kt | 5,470 | 5,300 | 5,592 | 5,532 | 5,518 | 5,686 | 5,944 | 1,338 | 1,568 | 1,442 | 1,436 | 5,784 | 1,263 | 1,519 | 1,033 | 1,323 | 5,139 | ||
Shipments AST2 | kt | - | - | 537 | 747 | 848 | 853 | 888 | 192 | 229 | 222 | 202 | 844 | 180 | 230 | 176 | 184 | 770 | ||
Crude Steel | kt | 11,860 | 11,646 | 12,249 | 12,392 | 12,021 | 12,060 | 11,839 | 2,821 | 2,902 | 2,750 | 2,813 | 11,286 | 2,840 | 2,752 | 2,044 | 2,223 | 9,859 | ||
Steel Europe AG | kt | 8,408 | 8,487 | 8,936 | 9,276 | 9,336 | 9,440 | 9,171 | 2,170 | 2,246 | 2,110 | 2,149 | 8,675 | 2,167 | 2,037 | 1,559 | 1,806 | 7,568 | ||
HKM | kt | 3,452 | 3,160 | 3,313 | 3,116 | 2,686 | 2,620 | 2,668 | 651 | 655 | 640 | 665 | 2,611 | 674 | 716 | 485 | 417 | 2,291 | ||
SE | Shipments | kt | 12,009 | 11,519 | 11,393 | 11,725 | 11,174 | 11,433 | 11,302 | 2,397 | 2,699 | 2,720 | 2,636 | 10,452 | 2,242 | 2,797 | 1,808 | 2,335 | 9,182 | |
Cold-rolled | kt | 7,906 | 7,437 | 7,137 | 7,182 | 7,048 | 7,169 | 6,995 | 1,543 | 1,718 | 1,664 | 1,648 | 6,572 | 1,479 | 1,766 | 1,163 | 1,555 | 5,964 | ||
Hot-rolled | kt | 4,103 | 4,082 | 4,256 | 4,543 | 4,126 | 4,265 | 4,307 | 854 | 981 | 1,057 | 989 | 3,880 | 759 | 1,016 | 637 | 765 | 3,177 | ||
Average Steel revenues per ton3 | 139 | 127 | 119 | 114 | 107 | 122 | 132 | 139 | 137 | 134 | 132 | 135 | 131 | 122 | 123 | 123 | 125 | |||
USD/EUR | Aver. | 1.30 | 1.31 | 1.36 | 1.15 | 1.11 | 1.10 | 1.19 | 1.14 | 1.14 | 1.12 | 1.11 | 1.13 | 1.11 | 1.10 | 1.10 | 1.17 | 1.12 | ||
USD/EUR | Clos. | 1.29 | 1.35 | 1.26 | 1.12 | 1.12 | 1.18 | 1.16 | 1.15 | 1.12 | 1.14 | 1.09 | 1.09 | 1.12 | 1.10 | 1.12 | 1.17 | 1.17 |
- Excl. AST/VDM shipments | 2. Included at MX since March '14 | 3. Indexed: Q1 2004/05 = 100
- | thyssenkrupp AG l November 2020
HQ
Corporate Headquarters
[€ mn]
2018/19 | 1) | |||||||||
2019/20 | ||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
EBITDA | (69) | (60) | (52) | (90) | (271) | (99) | (154) | (45) | (39) | (336) |
EBITDA adjusted | (57) | (51) | (53) | (71) | (232) | (61) | (58) | (36) | (38) | (193) |
EBIT | (74) | (64) | (59) | (95) | (293) | (103) | (159) | (49) | (42) | (354) |
EBIT adjusted | (63) | (55) | (57) | (76) | (252) | (66) | (63) | (40) | (41) | (210) |
BCF | (73) | (99) | (67) | (113) | (352) | (50) | (62) | (69) | (61) | (243) |
Employees | 1,187 | 1,119 | 1,092 | 1,057 | 1,057 | 1,041 | 969 | 835 | 809 | 809 |
thereof GER / tk AG | 833 | 774 | 758 | 743 | 743 | 730 | 679 | 560 | 547 | 547 |
thereof Regions | 354 | 345 | 334 | 314 | 314 | 311 | 290 | 275 | 262 | 262 |
- As of FY 2019/20 the administrative units of Corporate and the regions are shown as Corporate Headquarters. The Service Units and Special Units will be shown in Reconciliation line.
- Corporate HQ with significant improvement yoy, mainly attributable to measures aimed at reducing administrative costs, particularly staff costs in the corporate functions, as well as lower IT costs.
- Conformation of targeted headcount reduction for tk AG of down to ~400 FTE:
- ~200 FTE decided to join a transfer company or left directly in FY 2019/20
- ~130 FTE transferred to Service and Special units and will be reported in Reconciliation line from Oct 1, 2020 on
1. Figures incl. effects of IFRS 16
32 | thyssenkrupp AG l November 2020
Business Area Overview - Quarterly Order Intake
[€ mn]
2018/19 | 2019/20 | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Automotive Technology1)2) | 1,283 | 1,306 | 1,308 | 1,354 | 5,251 | 1,353 | 1,182 | 815 | 1,260 | 4,610 |
Industrial Components1)2) | 643 | 702 | 661 | 631 | 2,636 | 558 | 589 | 432 | 517 | 2,095 |
Elevator Technology | 2,143 | 1,995 | 1,999 | 2,035 | 8,171 | 2,232 | 1,982 | 1,898 | 627 | 6,739 |
Plant Technology1)2) | 668 | 513 | 1,048 | 614 | 2,844 | 568 | 457 | 360 | 285 | 1,670 |
Marine Systems | 107 | 133 | 145 | 1,807 | 2,192 | 103 | 132 | 123 | 1,869 | 2,227 |
Materials Services | 3,370 | 3,821 | 3,336 | 3,340 | 13,868 | 3,078 | 3,325 | 2,242 | 2,741 | 11,386 |
Steel Europe | 2,341 | 2,451 | 2,177 | 1,814 | 8,784 | 2,115 | 2,259 | 943 | 2,008 | 7,325 |
Corporate Headquarters1)2) | (0) | 1 | 1 | 3 | 5 | 1 | (0) | 2 | 1 | 4 |
Reconciliation2)3) | (443) | (562) | (457) | (295) | (1,758) | (348) | (384) | (121) | (313) | (1,165) |
Full Group | 10,111 | 10,360 | 10,219 | 11,303 | 41,994 | 9,660 | 9,542 | 6,693 | 8,996 | 34,891 |
Disc. elevator operations4) | 2,143 | 1,994 | 1,999 | 2,034 | 8,169 | 2,232 | 1,983 | 1,900 | 627 | 6,741 |
Group continuing operations | 7,968 | 8,366 | 8,221 | 9,270 | 33,825 | 7,429 | 7,559 | 4,793 | 8,369 | 28,150 |
- Organizational structure based on "newtk" until 30.09.2020 | 2. FY 2018/19 figures on a pro-forma basis | 3. Service and Special Units previously reported under Corporate are now combined in consolidation line as "Reconciliation" |
- Incl. Elevator Technology and individual units from Corporate Headquarters
33 | thyssenkrupp AG l November 2020
Business Area Overview - Quarterly Sales
[€ mn]
2018/19 | 2019/20 | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Automotive Technology1)2) | 1,231 | 1,358 | 1,365 | 1,453 | 5,407 | 1,367 | 1,267 | 842 | 1,226 | 4,702 |
Industrial Components1)2) | 573 | 650 | 660 | 639 | 2,522 | 544 | 573 | 452 | 530 | 2,099 |
Elevator Technology | 1,923 | 1,869 | 2,042 | 2,125 | 7,960 | 2,045 | 1,860 | 1,947 | 694 | 6,546 |
Plant Technology1)2) | 615 | 669 | 725 | 935 | 2,943 | 755 | 737 | 644 | 761 | 2,897 |
Marine Systems | 298 | 497 | 510 | 496 | 1,800 | 381 | 423 | 385 | 561 | 1,750 |
Materials Services | 3,388 | 3,696 | 3,505 | 3,291 | 13,881 | 3,046 | 3,389 | 2,245 | 2,620 | 11,300 |
Steel Europe | 2,131 | 2,350 | 2,347 | 2,237 | 9,065 | 1,851 | 2,154 | 1,455 | 1,810 | 7,269 |
Corporate Headquarters1)2) | (0) | 1 | 1 | 3 | 5 | 1 | 1 | 1 | 7 | 9 |
Reconciliation2)3) | (424) | (452) | (374) | (336) | (1,586) | (316) | (297) | (261) | (256) | (1,130) |
Full Group | 9,736 | 10,638 | 10,779 | 10,843 | 41,996 | 9,674 | 10,108 | 7,710 | 7,951 | 35,443 |
Disc. elevator operations4) | 1,923 | 1,870 | 2,041 | 2,126 | 7,960 | 2,044 | 1,861 | 1,946 | 693 | 6,544 |
Group continuing operations | 7,813 | 8,768 | 8,738 | 8,717 | 34,036 | 7,629 | 8,247 | 5,765 | 7,258 | 28,899 |
- Organizational structure based on "newtk" until 30.09.2020 | 2. FY 2018/19 figures on a pro-forma basis | 3. Service and Special Units previously reported under Corporate are now combined in consolidation line as "Reconciliation" |
- Incl. Elevator Technology and individual units from Corporate Headquarters
34 | thyssenkrupp AG l November 2020
Business Area Overview - Quarterly EBIT and Margin
[€ mn]
2018/19 | 2019/201) | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Automotive Technology2)3) | 9 | (0) | 2 | (136) | (126) | (78) | (130) | (142) | (807) | (1,157) |
% | 0.7 | (0.0) | 0.1 | (9.4) | (2.3) | (5.7) | (10.2) | (16.9) | (65.8) | (24.6) |
Industrial Components2)3) | 42 | 56 | 52 | 51 | 201 | 43 | 5 | 23 | (100) | (29) |
% | 7.3 | 8.6 | 7.9 | 8.0 | 8.0 | 7.8 | 0.8 | 5.2 | (18.8) | (1.4) |
Elevator Technology | 199 | 169 | 222 | 202 | 791 | 207 | 168 | 192 | 15,216 | 15,784 |
% | 10.3 | 9.0 | 10.9 | 9.5 | 9.9 | 10.1 | 9.0 | 9.9 | ++ | ++ |
Plant Technology2)3) | (37) | (26) | (63) | (38) | (164) | (19) | (27) | (102) | (117) | (265) |
% | (6.1) | (3.9) | (8.7) | (4.0) | (5.6) | (2.5) | (3.6) | (15.8) | (15.4) | (9.1) |
Marine Systems | 0 | (0) | (1) | 1 | 0 | (0) | (2) | 3 | 11 | 13 |
% | 0.0 | (0.0) | (0.1) | 0.1 | 0.0 | 0.0 | (0.4) | 0.8 | 2.0 | 0.7 |
Materials Services | 22 | 51 | 34 | (41) | 66 | 11 | 14 | (111) | (646) | (733) |
% | 0.6 | 1.4 | 1.0 | (1.2) | 0.5 | 0.3 | 0.4 | (5.0) | (24.7) | (6.5) |
Steel Europe | 34 | (118) | 9 | (48) | (123) | (166) | (332) | (344) | (1,815) | (2,656) |
% | 1.6 | (5.0) | 0.4 | (2.2) | (1.4) | (8.9) | (15.4) | (23.6) | ++ | (36.5) |
Corporate Headquarters2)3) | (74) | (64) | (59) | (95) | (293) | (103) | (159) | (49) | (42) | (354) |
Reconciliation3)4) | (12) | (36) | (13) | (19) | (80) | (10) | 0 | 41 | (159) | (128) |
Full Group | 181 | 32 | 183 | (124) | 272 | (115) | (462) | (488) | 11,541 | 10,475 |
% | 1.9 | 0.3 | 1.7 | (1.1) | 0.6 | (1.2) | (4.6) | (6.3) | ++ | 29.6 |
Disc. elevator operations5) | 199 | 169 | 221 | 195 | 783 | 187 | 98 | 241 | 15,204 | 15,730 |
Group continuing operations | (18) | (137) | (39) | (318) | (511) | (302) | (561) | (729) | (3,663) | (5,255) |
% | (0.2) | (1.6) | (0.4) | (3.7) | (1.5) | (4.0) | (6.8) | (12.7) | (50.5) | (18.2) |
1. Figures incl. effects of IFRS 16 | 2. Organizational structure based on "newtk" until 30.09.2020 | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported under Corporate are now combined in consolidation line as "Reconciliation" | 5. Incl. Elevator Technology and individual units from Corporate Headquarters
35 | thyssenkrupp AG l November 2020
Business Area Overview - Quarterly EBIT adj. and Margin
[€ mn]
2018/19 | 2019/201) | |||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
Automotive Technology2)3) | 13 | 9 | (5) | (39) | (22) | 21 | (49) | (129) | (104) | (260) |
% | 1.0 | 0.7 | (0.3) | (2.7) | (0.4) | 1.6 | (3.9) | (15.3) | (8.5) | (5.5) |
Industrial Components2)3) | 43 | 57 | 69 | 61 | 230 | 44 | 52 | 26 | 16 | 138 |
% | 7.5 | 8.7 | 10.5 | 9.6 | 9.1 | 8.1 | 9.0 | 5.8 | 3.1 | 6.6 |
Elevator Technology | 204 | 198 | 239 | 266 | 907 | 228 | 174 | 211 | 80 | 693 |
% | 10.6 | 10.6 | 11.7 | 12.5 | 11.4 | 11.1 | 9.4 | 10.8 | 11.5 | 10.6 |
Plant Technology2)3) | (30) | (30) | (55) | (30) | (145) | (18) | (21) | (97) | (100) | (235) |
% | (4.9) | (4.4) | (7.5) | (3.3) | (4.9) | (2.3) | (2.8) | (15.0) | (13.1) | (8.1) |
Marine Systems | 0 | 0 | 0 | 1 | 1 | (0) | 2 | 4 | 12 | 18 |
% | 0.0 | (0.0) | (0.0) | 0.2 | 0.0 | 0.0 | 0.5 | 1.0 | 2.1 | 1.0 |
Materials Services | 22 | 53 | 43 | (12) | 107 | 11 | 28 | (100) | (48) | (110) |
% | 0.7 | 1.4 | 1.2 | (0.4) | 0.8 | 0.4 | 0.8 | (4.5) | (1.8) | (1.0) |
Steel Europe | 38 | 37 | 1 | (45) | 31 | (164) | (208) | (334) | (240) | (946) |
% | 1.8 | 1.6 | 0.0 | (2.0) | 0.3 | (8.9) | (9.6) | (22.9) | (13.3) | (13.0) |
Corporate Headquarters2)3) | (63) | (55) | (57) | (76) | (252) | (66) | (63) | (40) | (41) | (210) |
Reconciliation3)4) | (11) | (29) | (10) | (6) | (56) | (6) | 4 | 43 | 12 | 53 |
Full Group | 217 | 240 | 226 | 119 | 802 | 50 | (80) | (415) | (414) | (860) |
% | 2.2 | 2.3 | 2.1 | 1.1 | 1.9 | 0.5 | (0.8) | (5.4) | (5.2) | (2.4) |
Disc. elevator operations5) | 204 | 198 | 238 | 271 | 912 | 227 | 186 | 263 | 97 | 773 |
Group continuing operations | 13 | 41 | (13) | (152) | (110) | (177) | (266) | (679) | (511) | (1,633) |
% | 0.2 | 0.5 | (0.1) | (1.7) | (0.3) | (2.3) | (3.2) | (11.8) | (7.0) | (5.7) |
1. Figures incl. effects of IFRS 16 | 2. Organizational structure based on "newtk" until 30.09.2020 | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported under Corporate are now combined in consolidation line as "Reconciliation" | 5. Incl. Elevator Technology and individual units from Corporate Headquarters
36 | thyssenkrupp AG l November 2020
Business Area Overview - Quarterly Business Cash Flow (BCF) and Free Cash Flow before M&A
[€ mn]
2018/19 | 2019/201) | ||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | ||
BCF | Automotive Technology2)3) | (313) | (134) | (75) | 126 | (396) | (251) | (169) | (215) | (141) | (776) |
BCF | Industrial Components2)3) | 46 | 26 | 46 | 113 | 232 | (50) | 11 | 8 | (45) | (76) |
BCF | Elevator Technology | 45 | 218 | 249 | 269 | 781 | 15 | 173 | 387 | 145 | 721 |
BCF | Plant Technology2)3) | (31) | 0 | (111) | (111) | (253) | 123 | (124) | (163) | (248) | (411) |
BCF | Marine Systems | (148) | (131) | 76 | (129) | (333) | (49) | 37 | (139) | (51) | (203) |
BCF | Materials Services | (879) | 417 | (186) | 689 | 41 | (907) | 280 | (143) | (580) | (1,351) |
BCF | Steel Europe | (832) | (52) | 124 | 687 | (72) | (1,045) | (81) | (268) | (180) | (1,574) |
BCF | Corporate Headquarters2)3) | (73) | (99) | (67) | (113) | (352) | (50) | (62) | (69) | (61) | (243) |
BCF | Reconciliation3)4) | (134) | (72) | (68) | (34) | (308) | (146) | (42) | (79) | (152) | (419) |
BCF | Full Group | (2,319) | 173 | (11) | 1,497 | (660) | (2,360) | 23 | (682) | (1,314) | (4,333) |
Interest payments | (61) | (84) | (17) | (50) | (212) | (30) | (134) | (32) | (32) | (227) | |
Tax payments | (97) | (66) | (63) | (42) | (268) | (86) | (98) | (57) | (33) | (275) | |
FCF b. M&A | Full Group | (2,477) | 23 | (92) | 1,406 | (1,140) | (2,476) | (209) | (770) | (1,380) | (4,835) |
FCF b. M&A | Disc. elevator operations5) | (12) | 211 | 243 | 173 | 615 | (71) | 160 | 467 | 123 | 680 |
FCF b. M&A | Group continuing operations | (2,465) | (188) | (335) | 1,233 | (1,756) | (2,405) | (369) | (1,238) | (1,503) | (5,515) |
1. Figures incl. effects of IFRS 16 | 2. Organizational structure based on "newtk" until 30.09.2020 | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported under Corporate are now combined in consolidation line as "Reconciliation" | 5. Incl. Elevator Technology and individual units from Corporate Headquarters
37 | thyssenkrupp AG l November 2020
Increase in Capex mainly due to higher investments at Steel Europe
Continuing Operations
up yoy
€1,440 mn | |
• | |
• | |
2019/20 | 2020/21E |
Higher investments at SE in connection with Steel Strategy 20-30 vs. largely stable investments overall at the other segments
Due in particular to the uncertain environment, investments will be approved on a restrictive basis
tk continuing operations | AT | IC | PT | MS | MX | SE | ||||||
38 | thyssenkrupp AG l November 2020
Liquidity analysis and maturity profile of gross financial debt
as of September 30, 2020 [€ mn]
Available committed | 13,165 |
1,610 | |
credit facilities | |
Cash and | 1 | |||||
cash equivalents | 11,555 | 26% | 18% | 26% | 10% | 2% |
18% | ||||||
1,073 | 1,496 | 1,028 | 1,518 | ||||||||||||
617 | 123 | ||||||||||||||
09/30/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 2024/25 | after |
2024/25
Total: 5,855
(w/o Lease liabilities according to IFRS 16 amounting to 647 € mn)
1. Incl. securities of €8 mn
39 | thyssenkrupp AG l November 2020
Pensions: "patient" long-term financial debt with gradual amortization
[Group, € mn]
Accrued pension and similar obligations | Development at unchanged discount rate (schematic) | ||||||||||||||||||||||||||
8,947 | 8,600 | 8,245 | 8,561 | ||||||||||||||||||||||||
209 | 50 | 57 | 7,654 | 56 | 45 | ||||||||||||||||||||||
638 | 202 | 257 | 242 | ||||||||||||||||||||||||
553 | 463 | ||||||||||||||||||||||||||
54 | 619 | ||||||||||||||||||||||||||
627 | 256 | ||||||||||||||||||||||||||
8,688 | |||||||||||||||||||||||||||
8,391 | 8,274 | ||||||||||||||||||||||||||
8,341 | |||||||||||||||||||||||||||
8,050 | 7,699 | ||||||||||||||||||||||||||
7,788 | 7,700 | 7,811 | |||||||||||||||||||||||||
7,072 | |||||||||||||||||||||||||||
0.70 | 0.90 | 1.60 | 0.90 | 0.70 | |||||||||||||||||||||||
-355 | -387 | ||||||||||||||||||||||||||
Q4 18/19 | Q1 19/20 | Q2 19/20 | Q3 19/20 | Q4 19/20 |
Fluctuations in accrued pensions
- are mainly driven by increases / decreases in discount rates in Germany (>90% of accrued pensions in Germany)
- do not change payouts to pensioners
-
do not trigger funding situation in Germany;
and not necessarily funding changes outside Germany - are recognized directly in equity via OCI
- IFRS requires determination of pension discount rate based on AA- rated corporate bonds
- Pension discount rate significant lower than interest rates of tk corporate bonds
-
>90% of accrued pensions in Germany;
thereof ~60% owed to exist. pensioners (average age ~77 years)
Accrued pension liability Germany | Accrued pension liability outside GER | Accruals related to partial retirement agreements | Other accrued pension-related obligation | German discount rate | |||
Reclassification due to the presentation as liabilities associated with assets held for sale |
40 | thyssenkrupp AG l November 2020
Germany accounts for majority of pension plans
[Group, FY 2019/20; € mn]
Funded status of defined benefit obligation
2,472 | ||||||||||||||
6,924 | 10,580 | |||||||||||||
8,274 | ||||||||||||||
1,350 | ||||||||||||||
Partly | Unfunded | Accrued | Plan assets | Defined | ||||||||||
underfunded | portion | pension | benefit | |||||||||||
portion | liabilities | obligation1 |
-
>95% of the unfunded portion in Germany;
German pension regulations do not require funding of pension obligations with plan assets;
therefore funding is mainly done by tk's operating assets
- Incl. effects from IAS 19 in UK (pension asset and asset ceiling) of €165 mn l 2 Incl. effects from asset ceiling UK of €39 mn
- | thyssenkrupp AG l November 2020
Reconciliation of accrued pension liabilities by region
Germany | Outside Germany | |||||
(203) | ||||||
8,013 | 7,810 | |||||
2,567 | (2,269) | 463 | ||||
126 | ||||||
Defined | Plan | Accrued | Defined | Plan | Other | Accrued |
benefit | assets | pension | benefit | assets | effects2 | pension |
obligation | liabilities | obligation | liabilities |
- Plan assets outside Germany mainly attributable to UK (~37%) and USA (~28%)
- Plan asset classes include national and international stocks, fixed income securities of governments and non-governmental organizations, real estate as well as highly diversified funds
Net periodic payments exceed Service costs (incl. in EBITDA) by >€400 mn (long-term ~€300 mn) and amortize pension liability by of Net periodic payment vs. Net periodic pension cost
[Group, € mn]
Non-cash employees earning | Cash to pensioners | |||
future pension payments | ||||
(528) | ||||
5 | 60 | |||
8,688 | 198 | (396) | ||
(132) | 132 | (210) | ||
8,274 | |||||||||||||||||||
Net periodic pension cost (263) | (71) | ||||||||||||||||||
0.70 | Net periodic payment 606 | 0.70 | |||||||||||||||||
Sep. 30, | Service | Admin | Net | from | from | Annual | Others | Sep. 30, | |||||||||||
2019 | costs1 | costs | interest cost | Group | plan assets | contribution | (mainly | 2020 | |||||||||||
to plan assets | actuarial gains) | ||||||||||||||||||
In financial statements
P&L: personnel costs2 | P&L: | Operating Cash Flow | mainly: | |||
financial line | equity (OCI) | |||||
Cash flow statement: "changes in accrued pension and similar obligations"
1. Incl. past service cost and curtailments l 2. Additional personnel expenses include €163 mn net periodic pension cost for defined contribution plans | German discount rate |
42 | thyssenkrupp AG l November 2020
Re-conciliation of EBIT Q4 2019/20 from Group P&L
[Continuing Operations, € mn]
P&L structure
Net sales | 7,258 |
Cost of sales | (8,995) |
SG&A, R&D | (1,171) |
Other income/expense | (751) |
Other gains/losses | (5) |
= Income from operations | (3,663) |
Income from companies using equity method | (5) |
EBIT definition
Net sales | 7,258 |
Cost of sales | (8,995) |
SG&A, R&D | (1,171) |
Other income/expense | (751) |
Other gains/losses | (5) |
Income from companies using equity method | (5) |
Adjustm. for oper. items in fin. income/expense | 5 |
= EBIT | (3,663) |
Finance income/expense | (103) | Finance income/expense | (103) |
Operating items in fin. income/expense | (5) | ||
= EBT | (3,771) | = EBT | (3,771) |
43 | thyssenkrupp AG l November 2020
Disclaimer thyssenkrupp AG
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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.
Any assumptions, views or opinions (including statements, projections, forecasts or other forward-looking statements) contained in this presentation represent the assumptions, views or opinions of thyssenkrupp as of the date indicated and are subject to change without notice. thyssenkrupp neither intends, nor assumes any obligation, unless required by law, to update or revise these assumptions, views or opinions in light of developments which differ from those anticipated. All information not separately sourced is from internal company data and estimates. Any data relating to past performance contained herein is no indication as to future performance. The information in this presentation is not intended to predict actual results, and no assurances are given with respect thereto.
Throughout this presentation a range of financial and non-financial measures are used to assess our performance, including a number of the financial measures that are not defined under IFRS, which are termed 'Alternative Performance Measures' (APMs). Management uses these measures to monitor the group's financial performance alongside IFRS measures because they help illustrate the underlying financial performance and position of the group. These APMs should be considered in addition to, and not as a substitute for, or as superior to, measures of financial performance, financial position or cash flows reported in accordance with IFRS. APMs are not uniformly defined by all companies, including those in the group's industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies.
44 | thyssenkrupp AG l November 2020
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ThyssenKrupp AG published this content on 19 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 November 2020 11:18:04 UTC