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]

Financial Data and Key Metrics Changes - The company reported a 6% decline in sales compared to the previous year for Q3, and a 9% decline year-to-date [14][18] - Adjusted EBIT for Q3 was €149 million, which included significant negative one-time effects of approximately €80 million related to Decarbon Technologies [15][18] - Free cash flow was reported at minus €256 million for Q3 and minus €983 million year-to-date, influenced by payment shifts and government funding timing [16][19] - The balance sheet remains solid with a stable equity ratio of 39% and net cash unchanged at €3.2 billion compared to the previous year [17] Business Line Data and Key Metrics Changes - Automotive Technology (AT) experienced a 6% decline in top line compared to the previous year, but bottom line development remained stable to slightly positive [19][20] - Decarbon Technologies (DT) saw a 10% increase in top line on a quarterly basis, driven by most businesses, despite a decline in order intake compared to a strong prior year [21][22] - Materials Services (MX) faced subdued demand, but adjusted EBIT was above the prior year due to positive contributions from international supply chain business [23] - Steel Europe (SE) reported a decline in sales and EBIT adjusted down by €90 million compared to the prior year, impacted by low demand and lower spot market prices [24][25] Market Data and Key Metrics Changes - The company noted muted market dynamics and demand across several industries, particularly in automotive, construction, and machinery [18] - The order intake for Decarbon Technologies has been less than expected due to postponed customer decisions, affecting growth momentum [62] Company Strategy and Development Direction - The company is focusing on green transformation, including the establishment of a new segment, Decarbon Technologies, and the development of a DRI plant at Steel Europe [4][9] - A performance program, APEX, is being implemented across businesses to adapt to market needs and improve performance [5][8] - The company is pursuing standalone solutions for Steel Europe and Marine Systems, with ongoing negotiations for joint ventures and restructuring plans [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market environment and adjusted full-year guidance due to continued declines in sales [8][29] - The CFO emphasized the need for structural profitability improvements and contingency management in response to market conditions [12][13] - The company expects sales to decline by 6% to 8% compared to the previous year, with adjusted EBIT projected to exceed €500 million [29] Other Important Information - The company is actively working on a joint venture with EPCG for Steel Europe, with negotiations for a 50-50 partnership ongoing [6][31] - The due diligence phase for potential private equity partners in Marine Systems is progressing, with preparations for a spin-off as an alternative [7] Q&A Session Summary Question: Concerns about the timing of structural changes - Management expressed confidence in the ongoing process with KfW and the expected positive outcome in the coming months [30][31] Question: Capital structure for Steel and Marine spin-offs - Management indicated a combination of equity, shareholder loans, and external financing for Steel, while Marine is expected to be self-funded [33][34] Question: Key friction points in Steel Europe discussions - Management confirmed that discussions are ongoing and emphasized the importance of the business planning exercise [36][37] Question: Implications of the going concern audit - Management clarified that the audit is not binding and will provide an independent opinion on the sustainability of the business plan [38][39] Question: Details on the €80 million one-off cost at Polysius - Management explained that the amount relates to incorrect cost accounting and emphasized measures taken to strengthen internal controls [58][60] Question: Dependency of HKM transaction on Steel Europe sale - Management confirmed that the HKM sale and the additional 30% stake negotiations are independent processes [61][62]

Financial Data and Key Metrics Changes - The company reported significant challenges due to a volatile macro environment but managed to navigate the situation effectively [4]. Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the available content [4]. Market Data and Key Metrics Changes - The company acknowledged the impact of the macroeconomic environment on its operations but did not provide specific market data or metrics [4]. Company Strategy and Development Direction and Industry Competition - The management emphasized active management of the current challenges and indicated a focus on strategic initiatives to adapt to the changing environment [4]. Management Comments on Operating Environment and Future Outlook - The management recognized the ongoing challenges posed by the macro environment but expressed confidence in the company's ability to manage these issues [4]. Other Important Information - The conference call included a welcome from the Investor Relations team and an introduction to the CEO and CFO, indicating a structured approach to communication with stakeholders [2][3]. Q&A Session Summary Question: What are the key challenges faced by the company? - The management highlighted the volatile macro environment as a primary challenge but did not provide specific details during the call [4].

Financial Data and Key Metrics Changes - Sales for Q1 2024 were €8.2 billion, a decrease of 9% compared to the previous year, primarily driven by lower spot market prices in the materials businesses [15][20] - Adjusted EBIT for Q1 was €84 million, in line with expectations, but down from the previous year due to lower spot market prices and a temporary decline in Decarbon Technologies [16][21] - Free cash flow before M&A was negative at €531 million, typical for the season, but the company aims for a positive figure in the low three-digit million euro range by year-end [17][30] - Net cash position decreased by €0.4 billion to €3.8 billion, with pension liabilities increasing to €6.1 billion [19] Business Line Data and Key Metrics Changes - Automotive Technology saw a slight increase in adjusted EBIT to €48 million, benefiting from lower material costs but facing higher personnel expenses [23] - Decarbon Technologies experienced a decline in adjusted EBIT by €36 million year-on-year to €17 million, affected by competition and higher costs [24] - Materials Services recorded an adjusted EBIT of €26 million, up €6 million year-on-year, supported by efficiency measures despite weak market demand [25] - Steel Europe’s adjusted EBIT decreased by €21 million to €69 million, impacted by normalization of spot market prices [26] - Marine Systems maintained stability with adjusted EBIT down €2 million to €17 million, focusing on performance improvements [26] Market Data and Key Metrics Changes - The order backlog for Marine Systems stood at €12.7 billion at the end of Q1, indicating a stable demand outlook [26] - The macro environment remains challenging, affecting sales expectations, particularly in the materials businesses [30] Company Strategy and Development Direction - The company is focused on a transformation journey, simplifying its structure to five segments and creating Decarbon Technologies to leverage green technology opportunities [5][8] - The APEX performance program is underway, aiming to stabilize earnings and improve operational performance across segments [8][21] - The company is committed to a proactive role in green transformation, with contracts signed for projects aimed at decarbonizing emission-intensive industries [9][10] Management Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenging and volatile macro environment but confirmed that Q1 results were in line with expectations [4][14] - The full-year guidance for adjusted EBIT and free cash flow remains unchanged, with expectations for improved performance in subsequent quarters [29][30] - The company aims to pay a reliable dividend, reaffirming its commitment to shareholder returns [32] Other Important Information - The company has decided not to provide quarterly guidance moving forward, focusing instead on full-year guidance [55][56] - The company confirmed it will meet its €1.5 billion debt maturity due in February, ensuring liquidity is not a concern [62] Q&A Session Summary Question: Could the recent write-down in Steel be a prelude to a disposal? - Management clarified that the write-down was a technical adjustment related to WACC calculations and not indicative of an impending disposal [35][38] Question: What is the timeline for discussions regarding the future of the Steel Europe division? - Management stated that discussions are ongoing with no imposed deadline, focusing on building a new business plan [41][42] Question: What are the biggest factors expected to boost profits in the next nine months? - Management indicated that seasonal patterns typically show improvement in EBIT in subsequent quarters, supported by the APEX program [43][44] Question: What is the current status of annual contract negotiations in Steel Europe? - Management confirmed that contracts have been fixed above spot markets, but specific pricing details were not disclosed [57][58] Question: Is there any concern regarding the ability to repay upcoming debt? - Management confirmed that there are no liquidity issues and the €1.5 billion debt due will be repaid [61][62]

Q1 2023/24 Results Conference Call Ticker: TKA (Share) TKAMY (ADR) February 2024 | Essen engineering.tomorrow.together. Management summary Q1 23/24 Portfolio Performance Green Transformation • Simplified group structure incl. set-up of Decarbon Technologies • Sale of remaining 55% of thyssenkrupp Industries India (DT Polysius) signed • Ongoing talks on stand-alone solutions for SE and MS • Q1 numbers in line with expectations • Full-year guidance confirmed for EBIT adj. and FCF bef. M&A • Focus of the Execu ...

thyssenkrupp AG (OTCPK:TYEKF) Q4 2023 Earnings Conference Call November 22, 2023 6:00 AM ET Company Participants Claus Ehrenbeck - Head of IR Miguel López - CFO Klaus Keysberg - CFO Conference Call Participants Jason Fairclough - Bank of America Bastian Synagowitz - Deutsche Bank Christian Obst - Baader Bank Alain Gabriel - Morgan Stanley Moses Ola - JPMorgan Operator Ladies and gentlemen, welcome to the thyssenkrupp Q4 and Full Year 2022-2023 Results. [Operator Instructions] I will now hand you over to Cla ...

thyssenkrupp AG (OTCPK:TYEKF) Q3 2023 Earnings Conference Call August 10, 2023 5:00 AM ET Company Participants Claus Ehrenbeck - Head of Investor Relations Miguel López - Chief Financial Officer Klaus Keysberg - Chief Financial Officer Conference Call Participants Jason Fairclough - Bank of America Bastian Synagowitz - Deutsche Bank Alain Gabriel - Morgan Stanley Christian Obst - Baader Bank Operator Hello, and welcome to the Interim Report Nine Months 2022-2023 Call. [Operator Instructions] Please note, th ...