Corporate Presentation
The Fifth Annual CERT CEO Roundtable
Presentation held by
Gary Elliott, CEO ThyssenKrupp Elevator AG
and Member of the Executive Board ThyssenKrupp AG
Berlin, October 18, 2005
ThyssenKrupp
1
Corporate Presentation
ThyssenKrupp Group
ThyssenKrupp AG
Group sales: €39.3 bn • EBT: €1,580 m • Employees: 184,000
all figures 2003/2004 (consolidated)
Steel
Stainless
Sales:
€8.3 bn Sales:
€5.0 bn
EBT:
€588 m EBT:
€385 m
Employees:
Employees:12,000
31,000
• Steelmaking
• Processing
Industry
• Processing
Auto
Steel
ThyssenKrupp
Automotive
Technologies
Elevator
Services
Sales:
€7.3 bn
EBT:
€288 m
Employees:43,00
0
• Body & Chassis
(North America)
• Body & Chassis
(Europe/
Asia Pacific/
Latin America)
• Powertrain
(Global)
Sales:
€5.1 bn
EBT:
€67 m
Employees:28,00
0
• Plant
Technology
• Marine
Systems
• Mechanical
Engineering
Sales:
€3.6 bn
EBT:
€370 m
Employees:
32,000
• 4 regional
business units
• Escalators/
Passenger
Boarding
Bridges
• Accessibility
Sales: €11.9 bn
EBT:
€271 m
Employees:
33,000
• Materials
Services Europe
• Materials
Services
North America
• Industrial
Services
• Special Products
• Transrapid
Capital Goods
Services
2
Corporate Presentation
Organization and Key Figures
Segment structure
ThyssenKrupp Elevator AG
Gary Elliott, Dr. Joachim F. Panek , Dr. Helmut Pfleger
Strategic Advisory Committee
G. Elliott, Dr. J. F. Panek, Dr. H. Pfleger,
J. del Pozo, H. Müller, B. Pletch, R. Sotomayor, P. Walker
Central/
Eastern/
Northern
Europe
Southern
Europe/
Africa/
Middle East
Americas
Asia/
Pacific
Helmut Müller
Javier
del Pozo
Barry Pletch
Peter Walker
ThyssenKrupp
Escalators
/
Passenge
r
Boarding
Bridges
Accessibility
Ramón
Sotomayor
Christian
Fröhlich
3
Corporate Presentation
Organization und Key Figures
Elevator
segment
Central/Eastern/Northern Europe
Southern Europe/Africa/Middle
East
Americas
Asia/Pacific
Escalators/Passenger Boarding
Bridges
Accessibility
Order intake
€4.1 billion
Sales
€3.7 billion
EBITDA
€446 million*
Income*
€370 million*
Workforce
33,000
* Key figure 2003/2004
ThyssenKrupp
4
Corporate Presentation
5
Products and Services
Full range from a single source
Escalators/moving walks
Elevators
Traction elevators
- with/without gears
- with/without machine room
- with/without shaft pit
- two cabs in one shaft
(TWIN)

Escalators for
all applications

Suspended escalators
(London Underwriting
Centre, London)

Hydraulic elevators


Freight elevators
Moving walks for
all applications

ThyssenKrupp
Corporate Presentation
6
Products and Services
Full range from a single source
Accessibility

Stairway lifts for all households
Passenger boarding bridges

Passenger boarding bridges for all
applications

Innovative glass-encased boarding bridges

Options: air conditioning, power,
supplies to aircraft etc.

Platform lifts in buildings for
wheelchairs
Elevators for private residential
buildings

Special elevators for disabled persons
ThyssenKrupp
Corporate Presentation
World Market for Elevators and Escalators
Market shares of overall market for elevators and escalators (query
2004)
Volume: €30 bn
27
Otis
18
Schindler
ThyssenKrupp
13
Mitsubishi
10
Kone
9
Hitachi
7
Toshiba
Fujitec
Others
4
2
10
(in %)
ThyssenKrupp
7
Corporate Presentation
8
Business Model
Value added circle in the elevator business
Technology
+
Attendance along the lifecycle
Technology for long-term customer relationship
Research Development Production
Sale
Experience for technical innovations
Installation
Maint. /
Repairs
Image improvement
Removal
Classical service
=
Attractive margins by technology
based customer relationship
ThyssenKrupp
Modernization
Corporate Presentation
World Market for Elevators and Escalators
Estimated number of new installed elevators (query 2004)
Europe
Total
122,10
0
North America
Total
24,100
Asia / Pacific
Total
Middle East / Africa
Total
9,500
Latin America
Total
10,400
Total
Elevators app. 300,000
ThyssenKrupp
143,400
9
Corporate Presentation
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
10
Corporate Presentation
References
Germany
DaimlerChrysler (“Kollhoff Building”), Potsdamer Platz, Berlin
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
ThyssenKrupp
11
Corporate Presentation
References
China
Shanghai World Financial Center
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
ThyssenKrupp
12
Corporate Presentation
Products und Services
R&D project TWIN: Multiple use of elevator shafts

Two independent cabins in one shaft

Saves building space, reduces waiting time, increases traffic handling

Permits buildings with more than 100 floors
Destination Selection Control
ThyssenKrupp
Cabs on top of each other
Counterbalances
13
Corporate Presentation
References
TWIN
BMW Group
Headquarter, Munich
Oceanic Center,
Valencia
Federation Tower,
Moscow
4 TWIN-Systeme
1 TWIN-System
11 TWIN-Systems
ThyssenKrupp
14
Corporate Presentation
References
United Arabic Emirates
Dubai International Airport
 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
ThyssenKrupp
15
Corporate Presentation
References
Toronto, Canada
Pearson International Airport , Toronto
 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
ThyssenKrupp
16
Corporate Presentation
References
Elevator World - Project of the
Year
2004  Glass-walled elevator in a Nickel Mine Shaft,
Science Center Dynamic Earth in Sudbury, Ontario,
Canada
ThyssenKrupp
17
Corporate Presentation
18
References
Service contracts in famous buildings around the world
 Marriott Putrajaya Hotel
Kuala Lumpur,
Malaysia
 Canary Wharf
London, Great Britain
 Empire State Building
New York, USA
 Sydney Opera House
Sydney, Australia
ThyssenKrupp
Corporate Presentation
Organization und Key Figures
Main production sites
The segment has over 800 branches and locations in more than 60 countries.
North and Latin America
Elevators
Escalators
ThyssenKrupp
Europe
Passenger Boarding Bridges
Asia / Pacific
Accessibility
19
Corporate Presentation
Organization und Key Figures
Main production sites North America
Elevators
Escalators
ThyssenKrupp
Passenger Boarding Bridges
Accessibility
20
Corporate Presentation
Organization und Key Figures
Main production sites Europe
Elevators
Escalators
ThyssenKrupp
Passenger Boarding Bridges
Accessibility
21
Corporate Presentation
22
ThyssenKrupp: 51 companies in the USA
(153 locations, total 25,236 employees, thereof 9,000 Elevator)
Detroit:
Milford Fabricating Comp. (P)
ThyssenKrupp Materials NA Inc.
ThyssenKrupp Steel North America
Inc.
TWB Company (P)
Bannockburn, IL:
ThyssenKrupp Nirosta NA Inc.
Puyallup, WA: (P)
Olympic Tracks Inc.
Danville, IL: (P)
ThyssenKrupp Gerlach Company
Systrand Presta Engine Systems
LLC
Waupaca, WI:
ThyssenKrupp Waupaca Inc
(P)
Auburn Hills,
MI:
J.A.Krause Inc.
Nothelfer
Gilman Inc. (P)
Kingsville, MO: (P)
ThyssenKrupp Stahl Company
Troy, MI:
Thyssen Krupp USA Inc.
ThyssenKrupp Budd Company (P)
ThyssenKrupp Budd Systems LLC (P)
ThyssenKrupp Automotive Sales & Tech.
Cent.
Transit America Inc.
Eastpointe, MI;
ThyssenKrupp Materials Inc.
Waukesha,WI:
Berco of America Inc.
Safway Services Inc. (P)
Safway Formworks
Systems
New Berlin,WI:
Defontaine of America
Maumee, OH:
ThyssenKrupp Logistics Inc.(P)
Grand View, MI:
ThyssenKrupp Access Corp.
(P)
Fostoria,OH:
ThyssenKrupp Atlas Inc.
(P)
Twinsburg, OH:
PSL of America Inc. (P)
Aurora, OH:
Rotek Incorporated
(P)
New York/Jersey City/New Jersey:
ThyssenKrupp AST USA Inc., White Plains, NY
ThyssenKrupp VDM USA Inc., Florham Park, NJ (P)
New York Elevator & Electrical Corp., NY
Computerized Elevator Control Corp., Moonachie,
Bridgeville, PA:
Uhde Corp. of America NJ (P)
Mainco Elevator & Electr. Corp., Long Island City ,
NY
Mainco Elevator (N.J.) Corp., Edison, NJ
Wilmington, DW:
TK Aero Turbine Inc.
Englewood, CO:
ThyssenKrupp Robins Inc.
(P)
Reno, NV: (P)
Precision Rolled Products
Inc.
Whittier, CA:
ThyssenKrupp Elevator Corp. (P)
Terre Haute, IN:
ThyssenKrupp Presta Steer Terre Haute LLC
Selma, NC:
ThyssenKrupp Precision Forge Inc. (P)
Poway, CA:
ThyssenKrupp Bilstein of America Inc.
(P)
Winston-Salem, NC:
Advanced Turbine Components, Inc.
(P)
Fort Worth, TX:
ThyssenKrupp Airport Systems Inc. (P)
Springfield, TN:
ThyssenKrupp Fabco Inc.
(P)
Brownsville, TX:
Mexinox USA Inc.
ThyssenKrupp
Hopkinsville, Ky:
Colliervielle, TN:
ThyssenKrupp Elevator Manufact. Inc.(P) ThyssenKrupp Hopkinsville LLC (P)
The Woodlands, TX:
Uhde Corp.of America
(P)
Atlanta, GA:
Polysius Corp. (P)
Krupp Hoesch Steel Products Inc.
Ladson, SC:
TK Presta SteerTec USA
(P)
Corporate Presentation
ThyssenKrupp: sales with customers in the USA
11000
1999 -2004 growth + 1% p.a.
9000
8,330
7,927
8,420
7000
7,021
6,684
7,116
5000
3000
98/99
99/00
00/01
01/02
02/03
03/04
in million €
ThyssenKrupp
23
Corporate Presentation
ThyssenKrupp: sales with customers in the USA
total 7.1 billion € in FY 2003/04
16 %
Elevator 1,162
8%
Technologies 599
24 %
Services 1,714
40%
Automotive 2,825
12 %
Steel 815
in million €
ThyssenKrupp
24
Corporate Presentation
25
ThyssenKrupp: locations in Canada (4,040 employees)
Whitecourt, Alberta:
Safway Scaffold Services
Inc., Whitecourt Branch
Edmonton:
Copper and Brass
Sales Canada
Saskatchewan:
Safway Scaffold Services
Inc., 179 MA
Montreal:
Ascenseurs Nova Inc.
(MBT), 28 MA
Prince George, B.C.:
Safway Scaffold Services Inc.,
Prince George Branch
Burnaby, B.C.:
Safway Scaffold Services
Inc., Burnaby Branch
X
London, Ontario:
TK Budd Systems Canada Ltd., 4 MA
Kitchener:
ThyssenKrupp Budd Canada Inc.
(P), 1.642 MA
Calgary:
Krupp Canada Inc., 45 MA
Ridgetown:
ThyssenKrupp Fabco (Werk)
ThyssenKrupp
Saint John, New Brunswick:
Safway Scaffold Services Inc.,
Saint John Branch
Mt. Pearl, Newfoundland
Safway Scaffold Services
Inc., St. Johns Branch
Surrey, B.C.:
Copper and Brass Sales
Canada
Richmond:
•Global Steel Services NA
•TK Steel Services Sales
Office
Markham:
ThyssenKrupp VDM Canada
Ltd.,
4 MA
Toronto:
•TK Northern Elevator Ltd., Scarborough (P), 248
MA
•ThyssenKrupp Elevator Canada Ltd. (P), 1.014 MA
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
Dresden:
ThyssenKrupp Fabco
(Werk)
Windsor:
ThyssenKrupp Fabco Corp. (P), 797 MA
Tecumseh:
Cross Hueller Canada Ltd., 6 MA
Corporate Presentation
ThyssenKrupp: sales with customers in Canada
1000
1999- 2004 growth + 3% p.a.
800
768
723
687
598
696
599
600
400
1999
ThyssenKrupp
2000
2001
2002
2003
2004
in million €
26
Corporate Presentation
ThyssenKrupp: sales with customers in Canada
total 696 million € in FY 2003/04
Technologies 79
21 %
Elevator
148
11 %
22 %
Services 152
31 %
Automotive 216
Steel 101
ThyssenKrupp
14 %
in million €
27
Corporate Presentation
28
ThyssenKrupp: locations in Mexiko (3,111 employees)
Cd. de Juarez
Mexinox Trading, Ndl.
Tijuana
•TK Budd de Tijuana S. de R.L.
•TK Budd Servicios S. de R.L.
•Mexinox Trading, NdL La Meza Tijuana
Torreón/Coahuila
Mexinox Trading, Ndl.
Valle de México
•TK Materials Mexico S.A. – 55 MA
•Mexinox Trading, Ndl., Tlalnepantla
•TK VDM de México S.A., Naucalp. de Juarez – 3
•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
Hermosillo
•TK Budd de Hermosillo – 22 MA
•TK Budd Chassis Servicios
Mazatlán/Sinaloa
Mexinox Trading, Ndl.
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.
Guadalajara
Mexinox Trading, Ndl.
Silao (Guajanuato)
•Aventec S.A. (MBT)
•Aventec Mexicana S.A. (MBT)
•Aventec Ramos Arizpe S.A. (MBT)
ThyssenKrupp
Monterrey
Mexinox Trading, Ndl.
Queretaro
J.A. Krause Mexico S.A.
Puebla
•TK Tailored Blanks S.A., Cuautlancingo – 1 M
•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
Corporate Presentation
ThyssenKrupp: sales with customers in Mexico
700
630
1999– 2004 growth + 26% p.a.
600
500
461
422
400
482
499
366
300
200
98/99
99/00
00/01
01/02
02/03
03/04
in million €
ThyssenKrupp
29
Corporate Presentation
30
ThyssenKrupp: sales with customers in Mexiko
total 630 million € in FY 2003/04
Elevator 8
25 %
Automotive 158
1%
Technologies 100
16 %
Steel 341
54 %
3%
Services 22
in million €
ThyssenKrupp
Corporate Presentation
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
31
Corporate Presentation
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 $2.0 billion in goods and services cross the border each and
every day
ThyssenKrupp
32
Corporate Presentation
33
Comparison NAFTA - EU
EU
NAFTA
No. of countries
Population
Total GDP
Per capita GDP
Currencies
Average growth p.a.
1999-2004
Total exports
thereof intraregional
3
430 million
€10,787 billion
€25,060
US$, CAN$, Mex. Peso
25
455 million
€9,791 billion
€22,620
Euro +13 others
2.9%
2.1%
€1,067 billion
€2,513 billion
1995: 46%
1995: 67% (64% intra-EU 15)
2003: 56%
2003: 67% (62% intra-EU 15)
Direct investments
CAN  USA 1994: $4.6
GER  NMS-8* 1994: €1.4
billion
billion
2004: $31 billion
2000: €4.4 billion
USA  CAN 1994: $6
2004: €1.2 billion
billion
Exports and direct investments within NAFTA have
Most direct investments in Eastern Europe were
2004:
$22
billion
increased strongly since its inception (1994).
made in advance of accession.
ThyssenKrupp
All figures 2004 unless otherwise stated
*= New member states excl. Cyprus, Malta
Corporate Presentation
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
34
Corporate Presentation
International Comparison of Labor Costs
International labor costs
Hourly labor costs in manufacturing in 2004 in €
DK
D
N
CH
B
FIN
NL
S
A
L
F
UK
IRL
USA
J
I
D (East)
CAN
E
GR
P
HUN
CZE
SK
PL
ThyssenKrupp
28.14
27.60
27.31
25.31
25.01
24.88
23.74
23.32
21.50
21.33
20.74
19.89
18.79
18.76
17.95
17.24
17.15
16.82
16.59
7.21
4.53
4.49
3.61
3.29
10.42
Hourly wage
Non-wage labor costs
35
Corporate Presentation
36
German taxation highest in Europe
Nominal taxation of stock corporations in Europe 2005
30%
30%
28%
28%
26%

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
0%
12,5%
15%
15%
31,5%
39,5
%
33%
19%
26%
30,4%
19%
25%
25%
16%
35%
33,8% 21%
33%
32%
25%
10%
Zypern
Sources: BMF, Ernst & Young, KPMG, BDI
ThyssenKrupp
Corporate Presentation
NAFTA/EU – Advantages and Disadvantages
NAFTA
EU
+
+
less languages barriers
+
+
multi-cultural diversity
-
no seeking for political
integration
(pure free trade agreement)
-
perceived bureaucracy
(regulations for everything)
-
long decision processes
-
more expenditures in R&D
(in particular USA)
no free movement of labor
ThyssenKrupp
free movement of labor
37
Corporate Presentation
Key Messages
1. Enlargement of free trade reduces protectionism
2. Protectionism ruins initiatives
3. Manufacturing in high labor countries can be
competitive
ThyssenKrupp
38
Corporate Presentation
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
39
Corporate Presentation
The World today is becoming flatter

ThyssenKrupp
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
40