Thyssenkrupp : Charts 3. Quartal 2020/2021 (nur in englischer Sprache)

Charts on Q3 FY 2020/21 Facts & Figures

Ticker: TKA (Share) TKAMY (ADR)

August 2021

9M: Group performance reflects financial turnaround by advancing improvements and strong demand

Cost and restructuring measures clearly supporting Group performance1 and will be relentlessly continued

Order intake		+28%
24.6	25.3
[€ bn]
	19.8	8.8
	4.8	+2%
	7.6	8.6
	7.4	7.8

EBIT adj.	+1.7 bn		incl. loss of MT
	€(236) mn ytd
[€ mn]		564
		266		+21%
41		78220
	(693)
	(279)
	(185)
	(1,158)

Sales		+14%
25.3	24.6
[€ bn]
21.6
	5.8	8.7
	+1%
	8.2	8.6
	7.6	7.3
FCF bef. M&A		(235)32
[€ mn]		+515 mn
(1,238)	(750)
	(367)	(953)

			incl. -ve BCF of MT
(2,988)	(2,407)		€(167) mn ytd

(4,012)

+3.1 bn

9M 18/19

9M 19/20

9M 20/21

9M 18/19

9M 19/20

9M 20/21

1. Continued figures 9M 18/19 reported in former organizational structure; as of Oct 01, 2019 new organizational structure

Q1

Q2

Q3

Q1

Q2

Q3

2 | thyssenkrupp AG l August 2021

FY 19/20

FY 20/21

Q3: continued progress in performance, restructuring and portfolio

• EBIT adj. at €266 mn up (QoQ: +€46 mn; YoY: +€959 mn)

Performance

• Extraordinary strong performance of Material Services
• Strong demand also at AT, IC and SE; however, effects from SEMI shortage induced lower customer call-offs and higher costs for raw materials and steel components

and	• Stringent execution of planned headcount reduction: ~6,900 FTEs (>50% of reduction target of >12,000 FTEs1)

Restructuring

• FCF bef. M&A at €(235) mn strongly improved (QoQ: €+515 mn; YoY: +€1,003 mn)

− Higher earnings, mainly by price driven NWC build-up

• • FY still with higher investments (above D/A) for performance and value upside
• Strong balance sheet with Net Cash of €4 bn
• Swift progress in portfolio streamlining at Multi Tracks

Portfolio

• Mining: signing of sale to FLSmidth on July 29, +ve effects on Net Cash, Pensions with closing
• Infrastructure: signing of sale on Aug 5, +ve effects on Net Cash, Pensions with closing
• AST: constructive negotiations with several potential buyers in 2nd Due Diligence phase

• Steel Europe: internal workstream initiated for stand-aloneoptions
• Water electrolysis (UCE): order intake from US (CFI); frequent requests for quotations, project funnel expanding

1. Target until FY 22/23 from defined programs since 01.10.2019

3 | thyssenkrupp AG l August 2021

Strong progress on clear restructuring plan

Target within defined programsof >12,000 FTEs

FTEs	~55%
[#]	~45%		•
>12,000
Germany	~ 6,900 FTEs	~70%	•
Rest of world
reduced
	~30%
Target	achieved	way to go
		until 22/232

~2/3 of current target will already be achieved as of end FY 20/21

Total headcount reduction

incl. add. initiatives: ~7,700 FTEs1

Restructuring

R expenses/	~600		• Almost all provisions made for target until 22/23
R2 cash-out		~200	• FY 20/21 cash-out of low-mid3-digit €mn

[€ mn]

(Cumulative) sustainable savings

[€ mn]

19/20	20/21E	way to go
			until 22/232
		low-mid	high
		3-digit €mn
		3-digit €mn	• Total sustainable cost benefit from restructuring
	high	709
		in high 3-digit €mn range
2-digit €mn	218
19/20	cum. 20/21E	cum. until 22/232

1. Incl. reduction from defined programs since 01.10.2019 (~6,900 FTE) + additional FTE reduction (incl. from fluctuation); w/o reduction of external FTE l 2. Incl. way to go until FY 22/23 (FY 19/20 - FY 22/23)

1. | thyssenkrupp AG l August 2021

MX: significant margin uplift due to price increases - continued improvement on costs

Shipments1 [kt]

+32%

1,025 1,421 1,357

Sales [€ mn]

+70%

1,936 2,888 3,289

EBIT adj. [€ mn; %]

(3.9)% 4.4% 7.1%

+307 mn

232

126

-75

Q3 19/20 Q2 20/21 Q3 20/21

Comments YoY

• Strong recovery from 19/20 COVID-dip, yet volumes below pre-pandemic level
• • QoQ: Material shortage partly limiting shipments
• Higher materials prices especially for carbon and stainless steel and significantly higher shipments
• Favourable price dynamics benefitting margins
• Effective performance and cost management:
• • Productivity gains of 10% ytd
  • Sub proportional growth of costs (+14% vs. volume >+30%)
  • Number of FTE down by ~1,800 vs. end of FY 18/19

Fundamental market trends2

CY 2021E

• Rising demand for carbon and stainless steel (ytd: NA +6%, EU +18%), however still below pre- pandemic level
• Market demand > supply from producers
• Seasonally lower volumes in cal. Q3 QoQ

Real steel demand CY 2021E (	YoY)
		Europe	North
		America
	Carbon Steel	+14.6%	+10.7%
	(~45% of sales)
	Stainless Steel3	+7.1%	+12.8%
	(~15% of sales)
Economic development CY 2021E
	Manufacturing PMI		63.4	60.9

Trends in industrial materials supply

• Return to pre-pandemic level in next fiscal year
• Increasing demand for supply chain and processing services

1. Materials Stockholding and Processing (excl. direct-to-customer and Aerospace business) l 2 Sources: IHS Markit (07/2021) and CRU (Q2/2021) l 3 Based on Stainless Steel Flat 5 | thyssenkrupp AG l August 2021