THYSSENKRUPP INDUSTRIAL SOLUTIONS Resource Technologies: Innovative Customer Solutions Ramsis Shehata CEO Business Unit Resource Technologies Capital Market Day I
ThyssenKrupp Industrial Solutions Resource Technologies Industrial Solutions Order intake: 5,732 m Sales: 6,271 m Employees: 18,546 Unit Process Technologies Resource Technologies Marine Systems System Engineering Chemicals Mining Submarines Automotive Market Fertilizers Cement Naval Surface Vessels Aerospace Sales (m ) Employees ~1,600 ~5,500 ~2,200 ~5,900 ~1,800 ~3,300 ~800 ~3,700 Order intake, sales and employees as of FY 2013/14 and Sep 30, 2014 2
Resource Technologies with a Unique and Differentiating Business Model Global footprint that enables us to offer customized products and solutions to the market Steady stream of customer-oriented innovations that increase efficiency and reduce costs Growing and enhanced service approach to utilize our technological competence in the after-sales market 3
Combined Resources to Better Support the Mining and Cement Business TK Fördertechnik Resource Technologies TK Polysius Mining Project Highlights Cement Project Highlights Oil Sands Plant, Canada Coal Stockyard, South Africa Cement Plant, Mexico Cement Plant, Algeria Contract Value: > 600 m Contract Value: > 75 m Contract Value: > 150 m Contract Value: > 300 m example Conveying System, Chile Contract Value: > 150 m Cement Plant, Indonesia Contract Value: > 400 m Higher cross-business flexibility 4
Broad Portfolio of Innovative and Efficient Mining Solutions to Serve Market Needs Shovel / Bucket-wheel Excavator Trucks Primary Crushing Transport Secondary Crushing Screening Tertiary Crushing Grinding Flotation / Primary Separation Filtration Storage of concentrate Ship loading TKIS Mining Product Spectrum Covering a broad spectrum of raw materials, e.g.: Coal, oil sands, iron ore, copper, bauxite, nickel, gold, diamonds, phosphate, sulfur, limestone 5
Strong Competitive Position in a Challenging Mining Market Environment Competitors Accessible Market Size and Development [bn ] 24% ~8-8% ~7 CAGR 1% ~7 ~7 ~8 Others 54% 7% 7% 8% Source: own estimates 2012 2013 2015 2017 2019 Source: own estimates Customers Regional Markets Source: own estimates 6
Mining Markets with Diverse Developments Slow-down in oil sands CAPEX, however, increasing service business Restructuring towards more efficient coal mining Clear trend towards optimizing existing iron ore operations Increasing copper CAPEX in Chile and Peru Coal production driven by increasing energy demand Low CAPEX but high OPEX driving service demand in iron ore mines 7
Resource Technologies Contributing to Growth of Industrial Solutions Sales Industrial Solutions > 8 bn Product Innovation 6.3 bn Service Business 2.2 bn Resource Technologies 2013/14 Target 8
Innovative Solution to Increase Efficiency in Oil Sands Processing Oil Sands Value Chain Product Innovation Surge Shovel Trucks Crusher Conveyor Conveyor bin Conventional Surge Bin & Slurry Preparation Plant Slurry preparation plant Flotation plant Refining Oil Integrated Surge Bin & Slurry Preparation Plant Crusher Conveyor Surge Bin Slurry Preparation Plant Conveyor Better resource access through smaller plant size Increased production by higher reliability Reduced operating costs Reduced energy consumption and CO 2 emissions 9
Continuously Developing New Technologies in Cement Industry Product Innovation Cement Value Chain Raw material preparation Clinker production Cement production Cement QUADROPOL RD The first roller-driven vertical roller mill worldwide PREPOL SC Combustion chamber for large-sized substitute fuels in cement production Higher availability with new drive system Energy savings up to 50% lower CO 2 emissions Significant lower water demand in comparison to other vertical roller mill systems Reduced energy demand and CO 2 emissions Reduction of operating expenses (OPEX) through alternative fuels Environmental award winner 2014 10
Service as Substantial Growth Factor in Mining and Cement Service Business Strong Local Presence Expansion of Service Portfolio Service Center Network Complex workshop services for clients in the mining industry Platform for local service business Establishment of long-term customer relationships Integrated Asset Management (IAM) Covering all operations and maintenance (O&M) activities Reducing total cost of ownership by increased reliability and performance Performance-based contracts 11
Resource Technologies with a Unique and Differentiating Business Model Sales 2.1 bn 2.2 bn Global Footprint Steady stream of customer-oriented innovation Growing and enhanced service approach 2012/13 2013/14 Target Delivering consistent top line growth with a sustainable EBIT margin 12
Disclaimer ThyssenKrupp AG The information set forth and included in this presentation is not provided in connection with an offer or solicitation for thepurchase 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 subjectto 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. 13