thyssenkrupp elevator technology elevating value! · 2020. 5. 20. · world elevator market €45...

ThyssenKrupp Capital Market Day | Elevator Technology Andreas Schierenbeck | London | 2013-12-06

0 Developing the future.

ThyssenKrupp Elevator Technology Elevating Value! ThyssenKrupp Capital Market Day Andreas Schierenbeck December 6th, 2013



-20

-10

0

10

20

30

* From FY2009/10 onwards EBIT adjusted

Sales in € m

ThyssenKrupp Elevator: sustainable value driver & cash provider

0

2.000

4.000

6.000

8.000

12/13 08/09 04/05 00/01

Construction market (% change)

Automotive production (% change) GDP (% change)

Trend Line

6

2

0

-2

-6 12/13 08/09 04/05 00/01 12/13 08/09 04/05 00/01

-2

0

2

4

6

12/13 08/09 04/05 00/01

EBIT* in € m

800

600

400

0

04/05 00/01 12/13 08/09

Trend Line

FCF in € m

0

800

400

12/13 08/09 04/05 00/01

Trend Line



Tallest building in the USA One World Trade Center

73 elevators and 11 escalators

Fastest elevators in North America (9 m/s)

Building height: 541 meters; 104 floors




63 km railway line and 36 city train stations

1.5 million passengers daily

New tunnel between Europe and Asia Marmaray Istanbul



Largest underground terminus in the world West Kowloon Terminus Hong Kong


380,000 m² area

99,000 passengers daily




235,000 m² area

450 shops and restaurants

Largest shopping mall in Abu Dhabi Yas Mall Abu Dhabi



ThyssenKrupp Elevator Technology

1

2 Performance Targets

Business Model



FY 12/13

Financial targets also in 2012/13 fully achieved

FY 11/12

[m€]

EBIT adj. 587 675

EBIT margin adj. 10.3% 11%

FCF 164 596

CE average 2,427 2,353

TKVA 193 423

Order Intake 6,149 6,520

ROCE 16.0% 26.0%

Sales 5,705 6,155 Above market growth EBIT improvement Margin increase

Higher value contribution

More cash provided

Reduction of CE

Record Order Intake

Higher capital efficiency

Δ 11/12-12/13

+15%

+6%

+8%

+263%

+0.7bps



We are committed to our goals from CMD 2011

EBIT margin

Sales

Target level

Profitability! Growth!

15% EBIT margin | €1 bn EBIT



A leading position in a stable growing Industry

€39 bn €52 bn

~5% p.a.

2010/11 2012/13 2015/16

Elevator Technology

~49,000 Employees worldwide

~150 Client Countries

~70 Countries

20 Manufacturing Sites

World Elevator Market

€45 bn

13%

market data based on internal estimation/ public domain/statistical calculation



Built from scratch in only 40 years

74/75 12/13 79/80 84/85 89/90 94/95 99/00 04/05

€0.2 bn

CAGR +10%

German Central European Euro-American Global Western European

Sales €6.2 bn

2002/03

1988/89

1998/99

2001/02

South America

2002/03 DONGYANG

ELEVATOR CO., LTD.

2010/11

http://www.google.de/imgres?imgurl=http://www.amti-inc.com/images/logo/New - MAN Logo_100_1c_pos (Sep 2008).gif&imgrefurl=http://www.amti-inc.com/&usg=__zdru1jsJXIX3s3p3rikKvyJ7Og4=&h=1318&w=2373&sz=266&hl=de&start=1&um=1&itbs=1&tbnid=CxoUEqawVmLu2M:&tbnh=83&tbnw=150&prev=/images?q=logo+man&um=1&hl=de&sa=X&tbs=isch:1,isz:l



Increasingly balanced regional footprint

100%

AP

EMEA*

Americas

12/13

22

40

38

10/11

17

46

37

08/09

11

43

46

06/07

10

47

43

Sales in %

Target

* Including Rest of World



Balanced business split

Service

New Installation

Conversion Rate

~80%

Manufacturing

Maintenance Modernization

Installation

~50%

~50%

Sales 2012/13



Regional market drivers

New Installation Service

Balanced



ThyssenKrupp Elevator Technology

1

2 Performance Targets

Business Model



Profitability and Growth

EBIT margin

Sales

Target level

Profitability! Growth!




Manufacturing | New Installation 1

Service | Modernization 2

Five initiatives to reach performance target

Multi-year program


Portfolio | Restructuring 3

Growth Emerging Markets 4

M&A 5



Profitability target initiatives

EBIT margin

Sales

Target level

Profitability! Growth! Portfolio | Restructuring 3

Manufacturing | NI 1 Service | Modernization 2

Manufacturing | NI 1


1

2

3



Manufacturing: investments and targets

Improvement in productivity

Delivery reliability

Lead times/ inventories

Asset turnover

>98% 5%

New facility

New facilities

Multi purpose facility

Modernization

Modernization

Modernization

Investments

Central coordination Elevator production system Standardization

Targets

1

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http://www.google.de/imgres?imgurl=http://www.ipicture.de/4images/data/media/426/flagge_indien.gif&imgrefurl=http://www.ipicture.de/4images/details.php?image_id=1356&h=433&w=650&sz=27&tbnid=ObRZE-HF6oZq5M:&tbnh=77&tbnw=116&prev=/search?q=indien+flagge&tbm=isch&tbo=u&zoom=1&q=indien+flagge&usg=__v0iEgQS4AL4B64A_OYRPbMxZYC0=&sa=X&ei=WtwbUNLuOYbCtAaZx4CoBw&ved=0CCEQ9QEwAg

http://www.google.de/imgres?imgurl=http://www.mhmc.de/assets/images/flagge-deutschland_1_.gif&imgrefurl=http://www.mhmc.de/HTML/kontakt.html&h=333&w=500&sz=2&tbnid=ZECqfpW_eZ4jHM:&tbnh=77&tbnw=116&prev=/search?q=deutschland+flagge&tbm=isch&tbo=u&zoom=1&q=deutschland+flagge&usg=__q6EVttyqOdAZIEwchVK32ZfCIt4=&sa=X&ei=UdkbUOyONIrdsgafm4HoDw&ved=0CCsQ9QEwBA



2016 2013

>1,1m

2011

Growth in service

Start FY

Conversion 3rd Party Price

End FY

Target: service growth ~10% yoy

M&A

Units under Maintenance

$ $

Phase 1 Phase 2

+40,000 p.a.

Service Sales

2

~10%

Expiration



Driving positive customer experience

People are key for success!

Staff training Customer satisfaction

2

Responsive Fast Decisions

Reliable Flexible

Selected facts & figures FY 2012/13

~49,000 employees trained

~3,500 service trainings

~2,300 workshops

Global presence at 11 locations



Europe struggling: prevent underperformance!

~-30%

Margin kept on high level despite sales decline

2007 2009 2013 2011

3

Number of new installed units Performance TKE Spain

10

20

0

30

-75%

k Units

Sales EBIT Margin

08/09 10/11 12/13

€ m



All options available: tough decisions taken!

Construction Spending Houses, Moving Average (3 M.)

500

400

300

200

100

0

95 00 05 10 12

$ m

EBIT Sales € m

Closed

Exit US home elevator manufacturing operations

08/09 09/10 10/11 11/12 12/13

Performance US-activity home elevator Market development home elevator

3

-80%



Growth target initiatives

EBIT margin

Sales

Target level

Profitability!

Growth!

Growth Emerging Markets

4

M&A 5




Emerging markets will drive growth


4

Market Volume 11/12 CAGR 11/12 – 17/18

~11 € bn > 5%

~1,6 € bn > 5%

~1,2 € bn > 10%

~1,6 € bn > 5%

~0,6 € bn > 10%

< 2%

< 1%

~14 € bn

~6 € bn USA

Europe

China

Russia

India

Brazil

Turkey

http://www.nationalflaggen.de/media/flags/flagge-russland.gif



China: Accelerated growth strategy

12/13 09/10 07/08 05/06

Order Intake China in € m

12/13

~200

10/11

~140

Locations in China

€1 bn

CAGR +31%

New office every 2 weeks

4



China: 2nd and 3rd brand main driver of growth

12/13 10/11 08/09

3rd brand

1st brand

2nd brand

Value end

Middle segment

High end

Market segment

3rd brand:

Minority JV

2nd brand: Proven TKE technology

Latest TKE technology

Market segment

Marohn

New Installation units

CAGR +25%

CAGR (10/11-12/13)

~25%

>50%

~10%

4



Russia: Successful product launch in the high end market

Order Intake Russia in € m

€100 m

70 TWINs in Moscow

12/13 10/11 08/09

CAGR +43% TWIN®

4




Top 5 NI-markets FY 2012/13

Brazil Turkey Russia India China

Russia: New elevator for residential applications

~30,000

Residential market Russia

Market volume units

~360,000

~53,000

~21,000

70%


Product launch FY 2013/14

4

~16,000




Mega infrastructure projects

Dedicated approaches to growth

Multi-brand concept 2nd Brand 3rd Brand

4

New elevator for residential market



M&A activities give access to highly profitable service business

Asia-Pacific 2 acquisitions in last 2 Years

EMEA 31 acquisitions in last 2 Years

Americas 5 acquisitions in last 2 Years

5

Annual run-rate: higher double-digit €m



Our strategy

EBIT margin

Sales

Target level

Profitability!

Growth!

Growth Emerging Markets

2

M&A 5

Portfolio | Restructuring 3

Manufacturing | NI 1 Service | Modernization 2

Manufacturing | NI 1


1

2

3 4

5



Our commitment

10.3%

15% EBIT margin & €1 bn EBIT

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.”

thyssenkrupp elevator technology elevating value! · 2020. 5. 20. · world elevator market €45...

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