Group 1 - Thyssenkrupp's marine systems business is experiencing growth due to a favorable defense outlook, contributing to its value perspective [2] - The strong balance sheet of Thyssenkrupp enhances the residual value of the company, making it an attractive investment opportunity [2] - The Value Lab focuses on long-only value investment ideas, targeting a portfolio yield of approximately 4% and has seen success over the past five years [1] Group 2 - The Valkyrie Trading Society consists of analysts who share high conviction investment ideas that are expected to yield non-correlated and outsized returns in the current economic environment [3]

Group 1 - Thyssenkrupp is exploring the sale of its materials trading division, which could be valued at up to €2 billion [1]

Core Viewpoint - Thyssenkrupp is considering several exit options for its raw materials trading division, with a potential valuation of up to €2 billion (approximately $2.2 billion) if an agreement is reached, as part of its strategy to streamline operations [1] Group 1 - Thyssenkrupp is exploring various options to divest its raw materials trading department [1] - The estimated valuation for the raw materials trading division could reach €2 billion ($2.2 billion) [1] - The company is seeking to simplify its operations [1]

Group 1 - Many foreign executives are visiting China to participate in high-level forums, highlighting new observations about China's development and opportunities [1] - The executives express that China's openness and innovation continue to release significant attraction for global investment [1] Group 2 - DeepSeek's energy efficiency is praised, with its energy consumption being only one-tenth of similar products, marking a revolutionary technological advancement [3] - The increasing application of AI necessitates planning for reduced energy consumption in search processes, emphasizing the importance of energy efficiency [3] Group 3 - The efficiency of Chinese partners in project execution is noted, with examples of projects being completed ahead of schedule and within budget, which is unusual in the industry [6] - The use of prefabricated components by Chinese partners provides new perspectives and learning opportunities for multinational companies [6] Group 4 - Multinational companies view China as an innovation testing ground and are eager to collaborate with Chinese firms to explore global markets [9] - Thyssenkrupp is collaborating with Chinese electric vehicle companies, recognizing China as a leader in the EV sector and seizing market opportunities [9] - Vale is exploring new paradigms for green steel production with Chinese partners, moving from being a commodity supplier to a collaborative partner [9] - The focus of this year's forum is on global cooperation, emphasizing the need for collaboration to address fundamental issues [9]

Core Insights - ThyssenKrupp Marine Systems anticipates its attainable market in defense-related sectors, including electronics, drones, surface vessels, and submarines, to double or triple by the end of the decade [2][4] - The German parliament's approval of a significant fiscal package, which alters long-standing debt policies, is expected to facilitate increased defense spending [2][3] - The proposed changes to the defense budget indicate a shift towards unlimited spending on defense, with potential funding exceeding 500 billion euros, marking a historic change since 1945 [3][4] Company Developments - ThyssenKrupp Marine Systems, the naval division of ThyssenKrupp, is focused on manufacturing naval vessels and submarines, with plans to adapt to the growing demand for unmanned sea drones as an extension of current platforms [5][6] - The company has acquired a new shipyard in Wismar, Germany, to produce vessels for Germany, Norway, and Israel, complementing its existing facilities in Kiel and Brazil [6] - ThyssenKrupp Marine Systems is pursuing partnerships for expansion, including a joint venture with India's Mazagon Dock Shipbuilders to design and engineer six submarines for the Indian Navy, which will be built in India [7]

Group 1 - The article expresses a beneficial long position in the shares of TYEKF, indicating a positive outlook on the company's stock performance [1] - The author emphasizes the importance of conducting due diligence and research before making any investment decisions, highlighting the risks associated with short-term trading and options trading [2] - The article clarifies that past performance is not indicative of future results, and no specific investment recommendations are provided [3]

Group 1 - The article expresses a beneficial long position in the shares of TKAMY, indicating a positive outlook on the company's stock performance [1] - The author emphasizes the importance of conducting due diligence and research prior to any investment, highlighting the risks associated with short-term trading and options trading [2] - The article clarifies that past performance is not indicative of future results, and no specific investment recommendations are provided [3]

Financial Data and Key Metrics Changes - The company achieved adjusted guidance on sales, EBIT, and free cash flow, with a positive free cash flow of EUR110 million for the second consecutive year [10][11] - Sales for the fiscal year were 7% below the prior year, totaling EUR2.5 billion less, while EBIT adjusted was EUR567 million, above the guidance of EUR500 million [16][22] - Net income was negatively impacted, reaching EUR1.4 billion, reflecting EUR1.6 billion in special effects, including EUR1 billion in impairments at Steel Europe [17][18] - The balance sheet remains strong with a net cash position of EUR4.4 billion, slightly up from the previous year [20] Business Line Data and Key Metrics Changes - **Automotive Technology**: Sales were down 7% in Q4 and below the prior year for the full fiscal year, but the segment showed resilient performance with a return on sales (ROS) of 3.3% [23] - **Decarbon Technologies**: Experienced a 12% growth in sales for the fiscal year, driven by a strong order book, but bottom-line performance was affected by special effects [27] - **Materials Services**: Sales were down 11% overall, but the segment maintained stable EBIT and cash conversion above 2 times [30][31] - **Steel Europe**: Sales were down 13% year-over-year, with a significant impact on profits due to underutilization and market conditions [33][34] - **Marine Systems**: Sales increased significantly, with EBIT strong at 5.9% ROS, benefiting from increased defense spending [36] Market Data and Key Metrics Changes - The automotive market remains soft, impacting demand across various segments, particularly for Steel Europe [13][23] - Geopolitical uncertainties and macroeconomic conditions continue to affect overall market performance [12][13] Company Strategy and Development Direction - The company aims to transform into a world-class technology group, focusing on green transformation and leveraging existing technologies to reduce CO2 emissions [5][6] - Strategic priorities include portfolio management, performance improvement, and green transformation, with ambitious targets set for the current financial year [8] - The company is pursuing a spin-off for Marine Systems while exploring partnerships to enhance competitiveness [57][59] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging geopolitical and economic environment but remains optimistic about the green transformation opportunities [4][5] - The outlook for the current fiscal year includes a sales growth guidance of 0% to 3% and EBIT adjusted guidance of EUR600 million to EUR1 billion [42][43] - The company anticipates restructuring payments impacting free cash flow, projecting a range of minus EUR400 million to minus EUR200 million before M&A [44][45] Other Important Information - The company invested around EUR690 million in research and development in the past financial year [6] - The APEX performance management program has been crucial in achieving financial stability, with EUR1.2 billion in EBIT improvement attributed to it [48][66] Q&A Session Summary Question: APEX's impact on financials - The company confirmed that without APEX, it would have reported a loss at the EBIT line this year [66][67] Question: Marine disposal and government involvement - Management expressed confidence in the German government's intention to consolidate the industry and take a stake in the company, despite recent political changes [68][69] Question: Steel business plan timing and metrics - The Steel business plan is expected in the coming months, with management focusing on creating an attractive plan requiring limited funding [76][77] Question: Key questions delaying the Steel business plan - Management clarified that they are not stuck on specific questions but are working to finalize the business plan with a new team [84][85] Question: Optimism in Steel despite market pressures - The anticipated performance improvement in Steel is primarily efficiency-driven rather than volume-driven, focusing on cost measures [86][87] Question: Marine Systems strategic partnership discussions - The company is currently focused on a spin-off for Marine Systems and is open to potential partnerships if they arise [89][90]

Group 1 - Thyssenkrupp reported a 1-billion-euro ($1.06 billion) impairment in its steel division, indicating challenges in volume expectations and structural issues in the sector [1] - The company experienced a net loss of 1.5 billion euros for the fiscal year ending September 30, primarily due to asset impairments of approximately 1.2 billion euros, with 1 billion euros attributed to the Steel Europe division [2] - CEO Miguel Lopez stated that the current fiscal year will be critical for decision-making, particularly for Steel Europe and Marine Systems [2] Group 2 - The company aims to enhance the performance of all its businesses while capitalizing on opportunities from the green transformation [3]

Investment Thesis - Thyssenkrupp is a German holding company with significant industrial holdings, primarily in the European Steel and Materials divisions, which produce and trade steel and steel products [1] - The company has faced a decline in share value, with a 50% drop since April of the previous year, and a market cap reduction from EUR 30 billion to approximately EUR 2 billion [1][2] Financial Performance - Thyssenkrupp reported a net loss of EUR -33 million in Q3, compared to a net profit of EUR 107 million in the previous year, marking the fourth consecutive quarter of losses [4] - Free cash flow (FCF) was negative at EUR -203 million, down from a positive EUR 608 million in the previous year [4] - Sales decreased by 9% year-over-year in Q1, totaling EUR 9 billion, and by 6% in the first three quarters, totaling EUR 26 billion [4][5] - The company anticipates a revenue decrease of 6-8% for the full fiscal year, with adjusted EBIT forecasted to exceed EUR 500 million [5] Business Segments - The steel division is under significant pressure, with ongoing discussions about its future and the need for substantial investment in green transformation, which the company currently lacks [2][6] - Other business segments, including Automotive, Decarbon Technologies, Material Services, and Marine Systems, are not performing well, with only two segments showing positive FCF in the last quarter [2] Strategic Challenges - Thyssenkrupp has struggled with the strategic direction of the company, with questions about its identity as more than a holding company of loosely related businesses [2][8] - The steel division's divestment has faced challenges, including internal disputes and tensions with labor unions, complicating the path forward [6][7] - The company has significant pension obligations amounting to EUR 5.6 billion, which exceed its property, plants, and equipment value of EUR 4.85 billion [2][8] Market Outlook - The current market cap of EUR 2 billion is viewed as undervalued, but the numerous unresolved issues and strategic uncertainties suggest a lack of compelling investment opportunities at this time [8]