thyssenkrupp corporate presentation 1 the fifth annual cert ceo roundtable presentation held by gary...

ThyssenKrupp

Corporate Presentation 1

The Fifth Annual CERT CEO Roundtable

Presentation held byGary Elliott, CEO ThyssenKrupp Elevator AGand Member of the Executive Board ThyssenKrupp AG

Berlin, October 18, 2005

ThyssenKrupp


StainlessSteel

Group sales: €39.3 bn • EBT: €1,580 m • Employees: 184,000all figures 2003/2004 (consolidated)

ThyssenKrupp AG

• Steelmaking • Processing Industry

• Processing Auto

Sales:

€8.3 bnEBT:

€588 mEmployees: 31,000

Steel

Services

• Materials Services Europe

• Materials Services North America

• Industrial Services

• Special Products

Sales:

€11.9 bnEBT:

€271 mEmployees: 33,000

Services

Automotive

• Body & Chassis (North America)

• Body & Chassis(Europe/Asia Pacific/Latin America)

• Powertrain (Global)

Sales:

€7.3 bnEBT:

€288 mEmployees:

43,000

Technologies

•Plant Technology

•Marine Systems

•Mechanical Engineering

•Transrapid

Sales:

€5.1 bnEBT:

€67 mEmployees:

28,000

Capital Goods

ThyssenKrupp Group

• 4 regional business units

• Escalators/Passenger Boarding Bridges

• Accessibility

Sales:

€3.6 bnEBT:

€370 mEmployees:

32,000

Elevator

Sales:

€5.0 bnEBT:

€385 mEmployees:

12,000

ThyssenKrupp


Escalators/

Passenger

BoardingBridges

Central/ Eastern/ Northern Europe

Southern Europe/Africa/

Middle East

Asia/ Pacific

Americas Accessi-

bility

ThyssenKrupp Elevator AG

Strategic Advisory Committee G. Elliott, Dr. J. F. Panek, Dr. H. Pfleger,

J. del Pozo, H. Müller, B. Pletch, R. Sotomayor, P. Walker

Ramón Sotomay

or

Helmut Müller

Javierdel Pozo

Peter WalkerBarry PletchChristian Fröhlich

Gary Elliott, Dr. Joachim F. Panek , Dr. Helmut Pfleger

Organization and Key Figures Segment structure

ThyssenKrupp


* Key figure 2003/2004

Order intake €4.1 billion

Sales €3.7 billion

EBITDA €446 million*

Income* €370 million*

Workforce 33,000

Elevatorsegment

Central/Eastern/Northern Europe

Southern Europe/Africa/Middle East

Americas

Asia/Pacific

Escalators/Passenger Boarding Bridges

Accessibility

Organization und Key Figures

ThyssenKrupp


Products and ServicesFull range from a single source

Traction elevators- with/without gears- with/without machine

room- with/without shaft pit- two cabs in one shaft

(TWIN)

Hydraulic elevators

Freight elevators

Escalators forall applications

Suspended escalators(London UnderwritingCentre, London)

Moving walks forall applications

Escalators/moving walksElevators

ThyssenKrupp


Products and ServicesFull range from a single source

Passenger boarding bridges for all applications

Innovative glass-encased boarding bridges

Options: air conditioning, power, supplies to aircraft etc.

Stairway lifts for all households

Platform lifts in buildings for wheelchairs

Elevators for private residential buildings

Special elevators for disabled persons

Passenger boarding bridgesAccessibility

ThyssenKrupp


10

2

4

7

9

10

13

18

27

World Market for Elevators and EscalatorsMarket shares of overall market for elevators and escalators (query 2004)

(in %)

Otis

Schindler

ThyssenKrupp

Mitsubishi

Kone

Hitachi

Toshiba

Fujitec

Others

Volume: €30 bn

ThyssenKrupp


Business Model Value added circle in the elevator business

Technology

Attendance along the lifecycle

Attractive margins by technologybased customer relationship

Classical serviceImage improvement

Research Development

Production Sale Installation Modern- ization

Maint. / Repairs Removal

Technology for long-term customer relationshipExperience for technical innovations

=

+

ThyssenKrupp


North America

Total 24,100

Europe

Total 122,100

Asia / Pacific

Total 143,400

World Market for Elevators and EscalatorsEstimated number of new installed elevators (query 2004)

Latin America

Total 10,400

Middle East / Africa

Total 9,500

Total

Elevators app. 300,000

ThyssenKrupp


References Germany

Commerzbank Tower, Frankfurt

Europe’s tallest office building

Building height: over 300 m (incl. superstructure)

56 floors

30 ThyssenKrupp elevators

Maximum rise: 200 m

Maximum elevator speed: 6 m/s

Architect: Sir Norman Foster & Partner

ThyssenKrupp


References Germany

Europe’s fastest elevator

Building height: 101 m

23 floors

Elevator rise: 90.1 m

Maximum elevator speed: 8.5 m/s

Travel time: 20 seconds

Architect: Kollhoff und Timmermann

DaimlerChrysler (“Kollhoff Building”), Potsdamer Platz, Berlin

ThyssenKrupp


References China

Next highest building of the world

Building height: 492 m

101 floors

42 elevators

Thereof 4 double-deck elevators

Speed double-deck elevators: 10 m/s

Completion in 2007

Shanghai World Financial Center

ThyssenKrupp


Two independent cabins in one shaft

Saves building space, reduces waiting time, increases traffic handling

Permits buildings with more than 100 floors

Products und Services R&D project TWIN: Multiple use of elevator shafts

Destination Selection Control

CounterbalancesCabs on top of each other

ThyssenKrupp


BMW Group Headquarter, Munich

Oceanic Center, Valencia

ReferencesTWIN

Federation Tower, Moscow

4 TWIN-Systeme 11 TWIN-Systems1 TWIN-System

ThyssenKrupp


100 Mio US$ for the installation of elevators, escalators and moving walks

368 elevators - 162 escalators – 128 moving walks

50 Mio US$ for the installation of 123 passenger boarding bridges

25 of them for the new Airbus A380

ReferencesUnited Arabic Emirates

Dubai International Airport

ThyssenKrupp


80 Mio CA$ for the installation of elevators, escalators, moving walks

and passenger boarding bridges

135 elevators - 25 escalators – 4 moving walks – 95 passenger boarding bridges

ReferencesToronto, Canada

Pearson International Airport , Toronto

ThyssenKrupp


ReferencesElevator World - Project of the Year

2004 Glass-walled elevator in a Nickel Mine Shaft, Science Center Dynamic Earth in Sudbury, Ontario, Canada

ThyssenKrupp


References Service contracts in famous buildings around the world

Empire State Building New York, USA

Marriott Putrajaya Hotel Kuala Lumpur, Malaysia

Sydney Opera House Sydney, Australia

Canary Wharf London, Great Britain

ThyssenKrupp


Organization und Key Figures Main production sites

EuropeNorth and Latin America

Asia / Pacific

Elevators AccessibilityEscalators Passenger Boarding Bridges

The segment has over 800 branches and locations in more than 60 countries.

ThyssenKrupp


Organization und Key Figures Main production sites North America


ThyssenKrupp


Organization und Key Figures Main production sites Europe


ThyssenKrupp


Winston-Salem, NC:Advanced Turbine Components, Inc. (P)

Twinsburg, OH:PSL of America Inc. (P)

Aurora, OH:Rotek Incorporated (P)

Danville, IL: (P)ThyssenKrupp Gerlach CompanySystrand Presta Engine Systems LLC

Reno, NV: (P)Precision Rolled Products Inc.

Englewood, CO: ThyssenKrupp Robins Inc. (P)

Selma, NC:ThyssenKrupp Precision Forge Inc. (P)

Bannockburn, IL:ThyssenKrupp Nirosta NA Inc.

The Woodlands, TX:Uhde Corp.of America (P)

Kingsville, MO: (P)ThyssenKrupp Stahl Company

Poway, CA:ThyssenKrupp Bilstein of America Inc. (P)

Hopkinsville, Ky:ThyssenKrupp Hopkinsville LLC (P)

Fort Worth, TX:ThyssenKrupp Airport Systems Inc. (P)

ThyssenKrupp: 51 companies in the USA (153 locations, total 25,236 employees, thereof 9,000 Elevator)

Waupaca, WI: ThyssenKrupp Waupaca Inc (P)

Fostoria,OH:ThyssenKrupp Atlas Inc. (P)

Atlanta, GA:Polysius Corp. (P)Krupp Hoesch Steel Products Inc.

Waukesha,WI:Berco of America Inc.Safway Services Inc. (P)Safway Formworks SystemsNew Berlin,WI:Defontaine of America

Auburn Hills, MI:J.A.Krause Inc.Nothelfer Gilman Inc. (P)

Maumee, OH:ThyssenKrupp Logistics Inc.(P)

New York/Jersey City/New Jersey:ThyssenKrupp AST USA Inc., White Plains, NYThyssenKrupp VDM USA Inc., Florham Park, NJ (P)New York Elevator & Electrical Corp., NYComputerized Elevator Control Corp., Moonachie, NJ (P)Mainco Elevator & Electr. Corp., Long Island City , NYMainco Elevator (N.J.) Corp., Edison, NJ

Whittier, CA: ThyssenKrupp Elevator Corp. (P)

Eastpointe, MI;ThyssenKrupp Materials Inc.

Colliervielle, TN:ThyssenKrupp Elevator Manufact. Inc.(P)

Puyallup, WA: (P)Olympic Tracks Inc.

Troy, MI: Thyssen Krupp USA Inc.ThyssenKrupp Budd Company (P)ThyssenKrupp Budd Systems LLC (P)ThyssenKrupp Automotive Sales & Tech. Cent.Transit America Inc.

Detroit:Milford Fabricating Comp. (P)ThyssenKrupp Materials NA Inc.ThyssenKrupp Steel North America Inc.TWB Company (P)

Grand View, MI: ThyssenKrupp Access Corp. (P)

Brownsville, TX:Mexinox USA Inc.

Terre Haute, IN:ThyssenKrupp Presta Steer Terre Haute LLC

Ladson, SC:TK Presta SteerTec USA (P)

Bridgeville, PA:Uhde Corp. of America

Springfield, TN:ThyssenKrupp Fabco Inc. (P)

Wilmington, DW:TK Aero Turbine Inc.

ThyssenKrupp


7,1167,021

7,9278,330

8,4206,684

3000

5000

7000

9000

11000

98/99 99/00 00/01 01/02 02/03 03/04

in million €

ThyssenKrupp: sales with customers in the USA

1999 -2004 growth + 1%

p.a.

ThyssenKrupp


ThyssenKrupp: sales with customers in the USAtotal 7.1 billion € in FY 2003/04

in million €

Technologies 599Elevator 1,162

Services 1,714

Automotive 2,825

Steel 815

16 %8 %

40%

24 %

12 %

ThyssenKrupp


ThyssenKrupp: locations in Canada (4,040 employees)

XX Mississauga:•Elevator Componets Inc. (P), 28 MA•TK Materials CA Ltd., 46 MA•TK Steel Services Sales Office•Global Steel Services Canada NL•Copper and Brass Sales Canada, NL

Markham:ThyssenKrupp VDM Canada Ltd., 4 MA

Calgary:Krupp Canada Inc., 45 MA

Toronto:•TK Northern Elevator Ltd., Scarborough (P), 248 MA•ThyssenKrupp Elevator Canada Ltd. (P), 1.014 MA

Dresden:ThyssenKrupp Fabco (Werk)

Montreal:Ascenseurs Nova Inc. (MBT), 28 MA

London, Ontario:TK Budd Systems Canada Ltd., 4 MA

Windsor:ThyssenKrupp Fabco Corp. (P), 797 MATecumseh:Cross Hueller Canada Ltd., 6 MA

Edmonton:Copper and Brass Sales Canada

Ridgetown:ThyssenKrupp Fabco (Werk)

Kitchener:ThyssenKrupp Budd Canada Inc. (P), 1.642 MA

Saskatchewan:Safway Scaffold Services Inc., 179 MA

Burnaby, B.C.:Safway Scaffold Services Inc., Burnaby Branch

Mt. Pearl, NewfoundlandSafway Scaffold Services Inc., St. Johns Branch

Saint John, New Brunswick:Safway Scaffold Services Inc., Saint John Branch

Whitecourt, Alberta:Safway Scaffold Services Inc., Whitecourt Branch

Surrey, B.C.:Copper and Brass Sales Canada

Prince George, B.C.:Safway Scaffold Services Inc., Prince George Branch

Richmond:•Global Steel Services NA•TK Steel Services Sales Office

ThyssenKrupp


696

599

687723

768

598

400

600

800

1000

1999 2000 2001 2002 2003 2004

1999- 2004 growth + 3% p.a.

ThyssenKrupp: sales with customers in Canada

in million €

ThyssenKrupp


in million €

ThyssenKrupp: sales with customers in Canadatotal 696 million € in FY 2003/04

Technologies 79

Elevator 148

Services 152

Automotive 216

Steel 101

11 %21 %

22 %

14 %

31 %

ThyssenKrupp


Puebla•TK Tailored Blanks S.A., Cuautlancingo – 1 MA•TK Automotive Systems Mexico S.A. – 92 MA•TK Metalúrgica de Mexico S.A. – 441 MA•TK Metalúrgica de Servicios S.A.•TK Presta de Mexico S.A. – 117 MA•LAGERMEX S.A. , Cuautlacingo– 210 MA•Sidcomex S.A., Cuautlancingo

Tijuana•TK Budd de Tijuana S. de R.L.•TK Budd Servicios S. de R.L.•Mexinox Trading, NdL La Meza Tijuana

San Luis Potosi•TK Mexinox S.A. – 1.123 MA•Mexinox Trading S.A.•Fischer Mexicana S.A. – 199 MA (MBT)•ThyssenKrupp Sasa S.A. – 462 MA•Servicios Corporativos del Potosi S.A.

MonterreyMexinox Trading, Ndl.

QueretaroJ.A. Krause Mexico S.A.

ThyssenKrupp: locations in Mexiko (3,111 employees)

Valle de México•TK Materials Mexico S.A. – 55 MA•Mexinox Trading, Ndl., Tlalnepantla•TK VDM de México S.A., Naucalp. de Juarez – 3 MA•Krupp Presta Servicios de Mexico •Waupaca Foundry de Mexico S.de R.L.•TK Elevadores S.A. – 128 MA•Polysius de Mexico S.A. – 2 MA•Krupp Servicios S.A. – 47 MA•Uhde Jacobs Méxcico S.A. – 207 MA•Uhde Mexico S.A. – 2 MA

Mazatlán/SinaloaMexinox Trading, Ndl.

Torreón/CoahuilaMexinox Trading, Ndl.

Cd. de JuarezMexinox Trading, Ndl.

Silao (Guajanuato)•Aventec S.A. (MBT)•Aventec Mexicana S.A. (MBT)•Aventec Ramos Arizpe S.A. (MBT)

GuadalajaraMexinox Trading, Ndl.

Hermosillo•TK Budd de Hermosillo – 22 MA•TK Budd Chassis Servicios

ThyssenKrupp


630

499482

461

422366

200

300

400

500

600

700

98/99 99/00 00/01 01/02 02/03 03/04

1999– 2004 growth + 26% p.a.

ThyssenKrupp: sales with customers in Mexico

in million €

ThyssenKrupp


in million €

ThyssenKrupp: sales with customers in Mexikototal 630 million € in FY 2003/04

Technologies 100

Elevator 8

Services 22

Automotive 158

Steel 341 54 %

25 %

16 %

3 %

1 %

ThyssenKrupp


NAFTA has been advantageous to all of the countries involved

Merchandise trade between the United States and Canada has grown by over 120%

U.S. trade with Mexico has nearly tripled from $81.5 billion in 1993 to $235.5 billion in 2003

U.S. trade with NAFTA partners grew from $629 billion in 2003 to $712 billion in 2004

Average growth rate of U.S. trade with NAFTA partners from 1990 to 2004 is 8,3%

Ratio of U.S. trade with NAFTA partners to total U.S. trade was 31.1% in 2004

Trucks carried over $453 billion worth of goods in trade with Canada and Mexico in 2004, up 12% from 2003

Rail transborder freight climbed to $108 billion in 2004, up 13% from 2003

Motor vehicles and parts were the leading commodity groups moved by surface modes with Canada and Mexico amounting to 21% of all surface freight shipments

ThyssenKrupp


Did NAFTA help Canada? Yes!

Since 1989, Canada – U.S. trade has nearly tripled from $235.2 billion to $677.8 billion

Canada now exports more manufacturing production to the U.S. than it consumes domestically

Merchandise exports to the U.S. expanded by 250% since 1989 to reach $345.4 billion

Canada and the U.S enjoy the world’s largest bilateral trade relationship: nearly $2.0 billion in goods and services cross the border each and every day

ThyssenKrupp


Comparison NAFTA - EU

No. of countriesPopulationTotal GDPPer capita GDPCurrenciesAverage growth p.a.1999-2004Total exports thereof intraregional

Direct investments

NAFTA EU3

430 million€10,787 billion

€25,060US$, CAN$, Mex. Peso

2.9%€1,067 billion

1995: 46%2003: 56%

CAN USA 1994: $4.6 billion

2004: $31 billionUSA CAN 1994: $6

billion2004: $22 billion

25455 million

€9,791 billion€22,620

Euro +13 others

2.1%€2,513 billion

1995: 67% (64% intra-EU 15)

2003: 67% (62% intra-EU 15)

GER NMS-8* 1994: €1.4 billion

2000: €4.4 billion 2004: €1.2 billion

*= New member states excl. Cyprus, Malta

Exports and direct investments within NAFTA have increased strongly since its inception (1994).

Most direct investments in Eastern Europe were made in advance of accession.

All figures 2004 unless otherwise stated

ThyssenKrupp


Problems in the EU for Goods Trading and Direct Investment

As the new member states adopted all EU rules and regulations under the terms of their accession, the same framework conditions apply for the movement of goods throughout the Union.

Minor practical obstacles still exist, e.g. due to• continuing exchange rate fluctuations with and between non-euro countries • transport infrastructure bottlenecks (road, rail, ports, airports)

Currently further restrictions on• services• freedom of movement for workers from Eastern Europe

Causes of different conditions for foreign direct investment:• divide in extent and quality of infrastructure (transport, telecommunications, energy)• major differences in labor costs• major differences in tax systems and rates

ThyssenKrupp


International labor costsHourly labor costs in manufacturing in 2004 in €

PLSK

CZEHUN

PGR

ECAN

D (East)IJ

USAIRLUK

FLAS

NLFIN

BCHND

DK

Hourly wage

Non-wage labor costs

28.1427.60

27.3125.31

25.0124.88

23.7423.32

21.5021.33

20.7419.89

18.7918.76

17.9517.24

17.1516.8216.59

10.427.21

4.534.49

3.293.61

International Comparison of Labor Costs

ThyssenKrupp


German taxation highest in EuropeNominal taxation of stock corporations in Europe 2005

German stock corporations subject to highest nominal and effective taxes in Europe

Reduction in tax rates regardless of legal form and harmonization of assessment basis within EU needed

Sources: BMF, Ernst & Young, KPMG, BDI

Zypern

30,4%

31,5%

33%

35%33,8% 21% 33% 32%

39,5%

25% 10%

16%

19%

26%

19%

15%

15%

0%

28%28%30%30%

12,5%

26%

25%

25%

ThyssenKrupp


NAFTA/EU – Advantages and Disadvantages

NAFTA

+ less languages barriers

+ more expenditures in R&D(in particular USA)

- no seeking for political integration(pure free trade agreement)

- no free movement of labor

EU

+ multi-cultural diversity

+ free movement of labor

- perceived bureaucracy (regulations for everything)

- long decision processes

ThyssenKrupp


Key Messages

1. Enlargement of free trade reduces protectionism

2. Protectionism ruins initiatives

3. Manufacturing in high labor countries can be competitive

ThyssenKrupp


Import Duties are Protectionism(e.g. India, Mexico)

No industrial research and manufacturing initiative

investment in machine tools

efficiency gains

employee motivation

R&D expenditures

ThyssenKrupp


The World today is becoming flatter

High labor cost countries can be competitive – markets are still local

Reduce direct & indirect labor costs

supply chain management

efficient IT systems

optimize workflow

invest in machine tools

quality branding

thyssenkrupp corporate presentation 1 the fifth annual cert ceo roundtable presentation held by gary...

Documents

bn slide

bn ebt

ceo thyssenkrupp elevator

elevator sales

wheelchairs elevators

escalators query

stainless steel group

helmut pfleger organization