thyssenkrupp Equity Story Components Technology December 2016

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Rosalyn Wilkinson
7 years ago
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1 thyssenkrupp Equity Story Components Technology December 2016

2 thyssenkrupp a diversified industrial group Sales 39.6 bn; EBIT adj. 1.5 bn Components Technology (CT) 6.8 bn 335 mn Elevator Technology (ET) 7.5 bn 860 mn Industrial Solutions (IS) 5.7 bn 355 mn Materials Services (MX) 11.9 bn 128 mn Steel Europe (SE) 7.6 bn 315 mn Steel Americas (AM) 1.5 bn (33) mn Financial figures FY 15/16 2 December 2016 thyssenkrupp Equity Story Components Technology

3 Mission critical components for leading automotive and industry customers Sales 6.8 bn Chassis ~60% of sales Powertrain Industry ~20% of sales ~20% of sales Steering Damper Camshafts Bearings Automotive Systems Springs & Stabilizers Forging & Machining Undercarriages More than 1 million parts/systems per day 3 December 2016 thyssenkrupp Equity Story Components Technology

4 Key business regions expansion into best cost countries Sales 6.8 bn by customer location [%] Sales per Region [incl. Exports] Employees per Region +24% +12% 5.5 8% 10% 18% 6.8 3% 17% 27% 27,561 17% 9% 12% 30,751 10% 19% 16% 62% 52% 62% 55% 2007/ / / /16 Others South America Asia NAFTA Europe 4 December 2016 thyssenkrupp Equity Story Components Technology

5 Steady growth and margin improvement [ mn] 13/14 14/15 15/16 16/17E Sales 6,172 6,753 6,807 Demand growth in automotive and wind industry vs. challenging markets for trucks and construction EBIT adj EBIT adj. margin [%] Operational improvements and growth BCF Investments in growth and innovation Upside powered by program as part of 5 December 2016 thyssenkrupp Equity Story Components Technology

Positive mid-term outlook in all major markets towards 2020 Light vehicles 1 Heavy duty 2 Construction equipment Wind

611 580 +5% 62 54 +33% +3% 15 16e 18e 20e 15 16e 18e 20e 15 16e 18e 20e 15 16e 18e 20e Steady growth towards 100mn

Light vehicles < 6 ton, only CBU (completely built up) units 2.

Forecast (Q3/2016) CE: Off-Highway Research (08/2016) WP: MAKE Consulting (Q3/2016) 6 December 2016 thyssenkrupp

6 Positive mid-term outlook in all major markets towards 2020 Light vehicles 1 Heavy duty 2 Construction equipment Wind power Production in mn units Production in mn units Sold units in Connected capacity in GW % % % % +3% 15 16e 18e 20e 15 16e 18e 20e 15 16e 18e 20e 15 16e 18e 20e Steady growth towards 100mn cars Opportunities from technology shifts % CAGR Decline in 2016 esp. NA class 8 Mid-term rebound 1. Light vehicles < 6 ton, only CBU (completely built up) units 2. Heavy duty vehicles > 6 ton Sources: LV: IHS LV Global Production Forecast (09/2016) HV: IHS HV Global Production Forecast (Q3/2016) CE: Off-Highway Research (08/2016) WP: MAKE Consulting (Q3/2016) 6 December 2016 thyssenkrupp Equity Story Components Technology Slow recovery after bottoming out Projections towards 700k units Sustainable level of 60GW to Regulatory effects Growing turbine sizes % Offshore wind CAGR

7 Light vehicles: China remains future growth driver Light vehicle (LV) production forecast [mn units] Europe NAFTA China +3.5% % % e 18e 20e 15 16e 18e 20e 15 16e 18e 20e Continued growth esp. in Eastern Europe Stronger Pickups/SUV demand, soft LV demand New normal growth between 3-5% p.a. Source: IHS global LV forecast (09/2016), only CBU (completely built up) units 7 December 2016 thyssenkrupp Equity Story Components Technology

8 Growth Performance Strategic Way Components Technology Benchmark profitability target supported by performance and growth plan Plant network Procurement Operational excellence (OPX) 4.3% 4.6% 4.9% Performance Growth EBIT adj. margin 6-8% + Customers Markets 13/14 14/15 15/16 Target Innovations 8 December 2016 thyssenkrupp Equity Story Components Technology

Procurement capturing synergies and optimizing processes Examples: procurement

auctions Value chain engineering Global benchmarking initiative >20 deep-dive

9 Procurement capturing synergies and optimizing processes Examples: procurement initiatives World class procurement e.auctions Value chain engineering Global benchmarking initiative >20 deep-dive assessments >1,100 measures executed State-of-the-art tools and clear 2020 strategy > 1 bn PVO by e.auctions; further increase planned Dedicated, advanced auction models >40% saving on single items Roll out of Design-to-Cost Standard-tool (apriori) Cross-functional approach 9 December 2016 thyssenkrupp Equity Story Components Technology

OPX next level operational performance initiatives to continue track record Examples: OPX initiatives

tracking Best practice sharing 700 OPX experts trained >600 measures ongoing Optimized

reduction of manual logistics operations Oven, process, heat recovery Close tracking and mgmt.

10 OPX next level operational performance initiatives to continue track record Examples: OPX initiatives OPX management system Speed factory Energy savings Annual plant benchmarking Close KPI/measure tracking Best practice sharing 700 OPX experts trained >600 measures ongoing Optimized intra-logistics Automated ground vehicles (AGVs) and Human-Machine Interfaces (HMI) 50% - 60% reduction of manual logistics operations Oven, process, heat recovery Close tracking and mgmt. Continued savings increase 14/15: 30 GWh ( 3.5 mn) 15/16: 40 GWh ( 5.0 mn) 10 December 2016 thyssenkrupp Equity Story Components Technology

11 Strong and balanced customer portfolio enhanced in recent years Example LV: Solid market positions with established OEMs and new players Established premium and mass market OEMs NEW Electric vehicle OEMs NEW Chinese OEMs Well established partner of leading automotive OEMs Supplier for key EV players Serve top Chinese OEMs 11 December 2016 thyssenkrupp Equity Story Components Technology

12 Steady growth by our innovation pipeline for tomorrow s mobility Examples: innovation projects Steer-bywire Automated driving Joint R&D platform Active damping Carbon fiber reinforced plastic components Single-wheel Steering / Torque Vectoring Trusted development partner for leading OEMs and new entrants 12 December 2016 thyssenkrupp Equity Story Components Technology

13 Unique skill-set to capitalize on further opportunities Material competence Process know-how Mechatronic capabilities Material science Vast range of materials Process engineering (low-/high-volume) Automation / standardization Just-in-sequence Software Electrics / Electronics Digitization expertise Performance Processes Growth Products 13 December 2016 thyssenkrupp Equity Story Components Technology

14 Committed to realize the value upside from tk s Strategic Way Forward Best-in-class engineering and processes Growth prospects from steady stream of innovations + 4.3% 4.6% 4.9% Growth Performance EBIT adj. margin 6-8% Expanding global production network 13/14 14/15 15/16 Target Strong customer portfolio with long-term contracts 14 December 2016 thyssenkrupp Equity Story Components Technology

15 Disclaimer thyssenkrupp 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. 15 December 2016 thyssenkrupp Equity Story Components Technology

Third quarter results FY2015. August 17, 2015

Third quarter results FY2015. August 17, 2015 Third quarter results FY2015 August 17, 2015 Disclaimer Stabilus S.A. (the Company, later Stabilus ) has prepared this presentation solely for your information. It should not be treated as giving investment