2005-2006 Financial Statements and Management Report

FINANCIAL STATEMENTS AND MANAGEMENT REPORT Business management – goals and strategy
Combination of Automotive and Technologies
The Technologies segment is now also a market partner for high-quality vehicle components and systems
following the combination of our automotive business with the Technologies segment effective October
01, 2006. This integration focuses our automotive activities on core businesses with sustainable earnings
potential and concentrates our innovation and marketing capabilities. As part of the planned realignment,
our body and chassis activities in North America with around €1 billion sales and 3,500 employees
were sold on October 16, 2006. The sale is to be closed by the end of 2006. In other regions we remain
on expansion track. In China we have prepared the acquisition of the activities of the crankshaft manufacturer
Tianrun, and further moves will follow on this auto market of the future. Following the integration
of Automotive into Technologies, the ThyssenKrupp Group will in the future comprise the five segments
Steel, Stainless, Technologies, Elevator and Services.
Elevator business remains dynamic
In addition to expanding existing activities, our Elevator segment’s strategy is focused on further strategic
acquisitions, both in the highly industrialized countries and in the young growth regions of the
world. Elevator now has a presence on the Italian market and has expanded its position in Spain and
India. Service and production activities are contributing equally to the growth in existing business. An
increasingly dense network of branches close to our customers safeguards our market presence. In
addition, a global service strategy is designed to secure the high standards of our service activities at
all locations worldwide: The strategy sets high standards for the work of our service technicians worldwide
and guarantees the quality of services.
Services: Focus on expansion
Our Services segment aims to continue its growth on the market for materials and industrial services.
Acquisitions will support the expansion of existing business. The expansion strategy focuses on the
nafta region, Eastern Europe and also South America and Asia. For example, the acquisition of an
interest in the industrial services business of RIP reflects our expectations in South America. RIP is
market leader in its sector and is represented at all key industrial locations in Brazil. In the materials
area, the segment is vigorously pursuing its Eastern Europe strategy. In Asia it is increasingly setting
up joint ventures with local partners.
New ThyssenKrupp Quarter in Essen
To achieve our growth targets efficiently, we aim to optimize decision-making routes and administrative
costs in the Group. For this, ThyssenKrupp plans to concentrate its main head office functions at the
two locations of Duisburg and Essen over the next few years. The Steel and Stainless segment holding
companies are already based in Duisburg. The six office buildings currently used in Bochum, Düsseldorf
and Essen have around 150,000 m 2 of net floor area. Centralization in the new quarter in Essen
will reduce the area requirement by around a third. The Group holding company, the holding companies
of the three other segments and some operating units will be located there. Design and planning work
is currently under way for the new quarter for around 2,000 employees. The move of ThyssenKrupp ag
from Düsseldorf to Essen is scheduled for year-end 2008. Further sections of the quarter will be completed
by 2010.
SERVICES AIMS TO EXPAND IN THE
NAFTA REGION, SOUTH AMERICA,
EASTERN EUROPE AND ASIA.
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