thyssenkrupp Industrial Solutions August, 2016

Transcription

1 Industrial Solutions August, 2016

2 Industrial Solutions engineering powerhouse within Unit Process Technologies Resource Technologies Marine Systems System Engineering Mining Submarines Automotive Fertilizers Polymers Market Electrolysis Gasification Cement Naval Surface Vessels Aerospace Coking Plants Oil & Gas Sales 1) [ mn] ~1,500 ~2,200 ~1,700 ~900 Order intake: 4,871 m sales: 6,256 m employees: 19,388 1) Sales: FY 2014/15 2 August 2016 Industrial Solutions

3 Long-term growth perspective vs current difficult trading cond. at chemicals [ mn] 2012/ / / /16E Perspective Order backlog 14,641 13,974 12,307 Order intake 5,283 5,732 4,871 Order intake depending on application of big ticket items Sales 5,641 6,271 6,256 EBIT adj EBIT margin adj. [%] BCF Sales slightly below prior year level, margin at lower end of 6-7% target range (continued difficult trading conditions chemical plants) Lower order intake; aging backlog; growth in businesses with lower prepayments 3 August 2016 Industrial Solutions

4 Attractive growth perspectives in a currently challenging trading environment Primary target market [bn ; ] Process Technologies 1 Oil price uncertainty? Resource Technologies Mining capex downturn? +3.2% +1.7% Min Cem Current trading environment: volatility in commodity prices System Engineering Marine Systems vs. tighter competition local supply/demand imbalances 5.0% 4.3% geopolitical uncertainties PTM Primary target market 1. Not included: Oil & gas, third party Note: Primary target figures based on 2014/15 studies 4 August 2016 Industrial Solutions

5 Leading towards a customer centric network Collaboration & Leadership Business Unit Vertical market and customer focus Regions Customer proximity Leadership and collaboration Performance orientation Engineering network Efficient project implementation & delivery Business types Products & Machines Standard & single machine business Systems Process oriented integration of machines Engineering, Procurement, Construction (EPC) Expansion of worldwide EPC hubs Service Leveraging our installed base Innovative service products Lifecycle management 5 August 2016 Industrial Solutions

6 Program planets for changing culture and improving performance people leading a network of engineering technology and solutions Network of excellence Dedicated performance program for each BU Region Fertilizer Electrolysis & Polymers Cement Mining Industrial Specialties Service System Engineering Marine Systems Improving accountability and responsibility Greater customer and market focus Most efficient utilization management (adjust to varying business mix) 6 August 2016 Industrial Solutions

7 Managing business mix to balance growth and profitability targets EPC Engineering, Procurement, Construction Revamps System Integration Engineering & Procurement packages System solutions by combination of products & machines Maintenance Modernization Product & Machines Standard & single machine business Service Center Spare parts Design Build Maintain Product Lifecycle 7 August 2016 Industrial Solutions

8 Targeting growth while maintaining benchmark profitability Perform Grow Efficiency & operational performance Streamline organization Engineering network Best-cost-countries EBIT margin Customer & Markets Marketing & Sales Design-to-market Low cost fertilizer Standard & Single machines Regions Differentiation & Competitiveness Excellence initiatives Procurement Supply Chain Commercial Excellence Growth Sales Service Technology & Innovation Big Data based solutions RedOx Flow IP (patents, licences) Target: > 8 bn sales 6-7% EBIT margin 8 August 2016 Industrial Solutions

9 Award of Order/Contract Comprehensive and efficient risk management process Proven track record to deliver large projects on time and in budget Bid/no-bid Bid price (schematic) factor for risks: technical, commercial, legal & compliance Project management Bid preparation expected costs Scheduling Speak-up culture Bid calculation Bid submission & negotiation Cost controlling Reporting Monthly risk reviews Bid phase Execution phase Bid/no-bid decision Bid submission Contract signing Effective date of contract Provisional accept. certif. Factory accept. certif. Close project 9 August 2016 Industrial Solutions

10 Internationalization is key for being competitive in EPC business Example project in Middle East Project execution plan Our competitive setup Germany Basic Engineering Engineering coordination Process & machinery knowhow Production of proprietary equipment Europe / Turkey Sourcing equipment Leading German engineering & technology Global competence centers for engineering, procurement, construction Spain Detail Engineering Rest of World Sourcing equipment Middle East Manufacturing, sourcing steel structure & plates Local supply Support construction management China Sourcing equipment Civil contractors 1) Manufacturing, sourcing steel structure & plates Vietnam Part of Detail Engineering India Engineering and equipment for conveyor, chutes, pipes Part of Detail Engineering Support construction supervision Competitive cost structure & pricing Global procurement and supplier management Local construction management knowhow Customer relations / customer retention secured by quality, reliability, competence and trust 1) infrastructure, foundation work, buildung, etc. 10 August 2016 Industrial Solutions

11 Expansion of service as a sustainable source of high margins business Strategy & Competences Spare Parts Supply & Management Service Center Revamp Asset Management Training, Consulting Grow service share of sales to >20% 11 August 2016 Industrial Solutions

12 Examples Approach Business Industrial Solutions: four business types within our engineering powerhouse Products, machines, IP & licenses System integration Engineering, Procurement & Construction Service Satisfying customer needs with single products Bringing together components into one functioning system Offering design, procurement, construction, to commissioning and handover of the project to the end-user Delivering value on top of products sold Businesses in charge of portfolio and strategy & regional business development / sales to promote products and machines Businesses and Regions jointly define combination of products based on local requirements Collaboration of businesses and Regions to offer EPC solutions (EPCm, EPCs, ) to our customers directly Products, systems & plants: Leveraging our installed base HPP - High pressure pasteurization Kubria Cone Crusher Conveyor belt system with spreader HDW Class 214 SAFCO IV Fertiliser Plant, 3,300 mtpd Ammonia Cap. Offerings include among others: spare parts operations & maintenance 12 August 2016 Industrial Solutions

13 Strong management commitment to growth and performance > 8 bn 6.3 bn Sales Grow Perform 6-7% EBIT margin 6-7% 2014/15 Target Engineering powerhouse: EPC - System Integration - Standard & Single Machines - Service 13 August 2016 Industrial Solutions

14 Process Technologies: offering critical proprietary technologies Raw materials Conversion technologies Precursors & intermediates Customer products End markets Proprietary technology along e.g. Chemical value chain Natural gas Gas reforming Syngas Fertilizers Agriculture Crude Oil Oil refining Olefins & aromatics Organic chemicals & polymers Packaging textiles Biomass Biotechnology Organic Acids Biopolymers Automotive life sciences Coal Gasification Coke plant technologies Syngas Coke, coke oven gas Electric power Fuel Steel Energy Automotive construction Minerals (salt) Electrolysis Chlorine, caustic soda Inorganic & Organic chemicals Chemical processing 14 August 2016 Industrial Solutions

15 World s largest fertilizer complex in Saudi Arabia Production capacity 3,300 t/day ammonia Annual production Cultivated area 4.3 m ha 15 August 2016 Industrial Solutions

16 Process Technologies market perspective: growth in global consumption and wealth drive demand for chemicals Global accessible market size [ bn] Market segments ~ % CAGR ~7.9 Fertilizers Polymers Coking Plants Electrolysis Gasification Oil & Gas Regional developments Market trends Trend towards large scale plants and EPC North America Europe? CIS Shale gas drives additional momentum along petrochemical value chain (i.e. fertilizers, polymers) Middle and South America Middle East and Africa Asia-Pacific Lower oil price leads to market shifts and opportunities Source: own estimates 16 August 2016 Industrial Solutions

17 Resource Technologies: well diversified in cement plants and mining equipment Covering entire cement production chain Comprehensive mining chain coverage Raw material preparation Clinker production Cement manufacturing 17 August 2016 Industrial Solutions

18 Lump-sum turn-key cement plant in Namibia Production capacity 2,100 t/day cement Raw material processing Clinker production Cement manufacturing Annual production Freeway 222 km 2x2 lanes 18 August 2016 Industrial Solutions

19 Fully mobile crushing system in China Capacity 3,500 t/h rock Annual capacity Overburden 15 m m³ 6x Pyramid of Cheops 19 August 2016 Industrial Solutions

20 Resource Technologies market perspective: solid cement demand and additional opportunities compensate for muted mining investments Global accessible market size [ bn] Market segments Mining Cement ~5.9 +3% CAGR ~6.9 ~5.0 +1% CAGR ~ Mining Cement Regional developments Market trends North America Europe? CIS Slow recovery of mining customer greenfield CAPEX expected (pickup in serious/intense customer inquiries from several regions); ongoing brownfield investments Middle and South America Middle East and Africa Asia-Pacific Demand for cement plants and revamps driven by infrastructure growth in EM, CO 2 discussion, lower energy prices Growing service and maintenance business Source: own estimates 20 August 2016 Industrial Solutions

21 System Engineering: world class customer base Car body technologies Selected customers Assembly systems Testing solutions New businesses 21 August 2016 Industrial Solutions

22 Fully automated engine assembly plant in the US Production capacity 96 engines/h Annual production Equipped cars 325, August 2016 Industrial Solutions

23 System Engineering market perspective: demand for auto plants driven by growing global car production Global accessible market size [ bn] Market segments ~6.7 +5% CAGR ~ Automotive Aerospace Regional developments Market trends OEM investments driven by car model cycles North America Europe? CIS Main growth markets Asia-Pacific and China New project opportunities in aerospace industry and e-mobility Middle and South America Middle East and Africa Asia-Pacific Source: own estimates 23 August 2016 Industrial Solutions

24 Marine Systems: leading competencies in naval system integration Submarines Naval surface vessels Air independent propulsion Increasing range (factor 3.5) Increasing indiscretion rate Increasing effectiveness MEKO modularity Easier to manufacture Easier to service Easier to convert, modernize or upgrade 24 August 2016 Industrial Solutions

25 World s most modern non-nuclear submarine in Germany Complexity Car 23 hrs 2 t Boeing ,000 hrs 254 t Submarine Production time (months) 700,000 hrs 1,650 t Submarine 350,000 parts Boeing ,000 parts Car 3,000 parts 25 August 2016 Industrial Solutions

26 Marine Systems market perspective: naval demand driven by increasing global defense budgets Global accessible market size [ bn] Market segments ~ % CAGR ~ Submarines Naval surface vessels Regional developments Market trends North America Middle and South America Europe Middle East and Africa Asia-Pacific Solid global project pipeline Governmental defense programs driving investments across regions Growing service market with demand for modernization and maintenance Source: own estimates 26 August 2016 Industrial Solutions

27 Strong management commitment to growth and performance > 8 bn 6.3 bn Sales Grow Perform 6-7% EBIT margin 6-7% 2014/15 Target Engineering powerhouse: EPC - System Integration - Standard & Single Machines - Service 27 August 2016 Industrial Solutions

28 Disclaimer AG The information set forth and included in this presentation is not provided in connection with an offer or solicitation for the purchase or sale of a security and is intended for informational purposes only. This presentation contains forward-looking statements that are subject to risks and uncertainties. Statements contained herein that are not statements of historical fact may be deemed to be forward-looking information. When we use words such as plan, believe, expect, anticipate, intend, estimate, may or similar expressions, we are making forward-looking statements. You should not rely on forward-looking statements because they are subject to a number of assumptions concerning future events, and are subject to a number of uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from those indicated. These factors include, but are not limited to, the following: (i) market risks: principally economic price and volume developments, (ii) dependence on performance of major customers and industries, (iii) our level of debt, management of interest rate risk and hedging against commodity price risks; (iv) costs associated with, and regulation relating to, our pension liabilities and healthcare measures, (v) environmental protection and remediation of real estate and associated with rising standards for real estate environmental protection, (vi) volatility of steel prices and dependence on the automotive industry, (vii) availability of raw materials; (viii) inflation, interest rate levels and fluctuations in exchange rates; (ix) general economic, political and business conditions and existing and future governmental regulation; and (x) the effects of competition. Please note that we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. 28 August 2016 Industrial Solutions