The Board of Management and Supervisory Board of Thyssenkrupp AG discussed the past financial year and answered shareholders' questions at this year's Annual General Meeting. Speaking at the meeting, Prof. Dr. Siegfried Russwurm, Chairman of the Supervisory Board of thyssenkrupp AG, stated: "We are moving forward with the announced restructuring of the Group. The pace of the decisions and measures we initiated was faster than ever last year. Important foundations were laid in all segments to sustainably improve the performance of the businesses. This fiscal year, we will continue to pursue this transformation path with great determination. The economic environment and geopolitical conditions mean we need to make faster and more rigorous progress."
During the meeting, board members shared comprehensive developments for the financial year 2023/2024. Accordingly, in the steel segment, the purchase of a 20% stake by the EP Group was highlighted as an important milestone on the way to achieving an independent solution for the business, while a 50/50 joint venture with the EP Group is currently underway.
At the end of last year, a future-oriented concept was also presented, which foresees a reduction in production capacities from 11.5 million tons per year to 8.7 to 9 million tons per year due to overcapacities in the world market, the officials pointed out; "In addition, the sale of the electrical steel business in India for EUR 440 million was successfully completed. The main focus is still on the transformation towards climate-neutral steel production. As part of this, two blast furnaces in Duisburg will be replaced by a direct reduction plant under construction by 2030. The maritime sector has received new large orders. The division of this business unit is intended to make the most of its growth potential. In the Automotive segment, negotiations are ongoing regarding the sale of the Springs and Stabilizers business unit. In addition, the powertrain activities at the Bremen site will be phased out by 2026. The Automotive Body Solutions business unit in Germany is also being restructured to improve competitiveness and profitability."
“A new growth target in Southern Europe, Middle East, North America and Asia”
Highlighting the long-term extension of a long-standing partnership with one of the world's leading aircraft manufacturers in the field of comprehensive supply chain services, the board members emphasized: "New service centers were also opened in the USA and Mexico to continue the growth trend in North America. The new Decarbon Technologies segment, established last year, has won important new customer projects, particularly for CO2 capture technologies and hydrogen production in the cement industry. In addition, the businesses are more strongly oriented towards future-oriented products and services. In plant engineering in particular, the focus at Polysius and Uhde is on transforming their business models into modular and standardized products as well as expanding the profitable service business. In the future, new growth is targeted, especially in Southern Europe, the Middle East, North America and Asia."
Sales decreased by 7%
thyssenkrupp performed well in the business year 2023/2024 in a challenging market environment. Sales and adjusted EBIT targets were achieved, after forecasts were changed in July 2024 due to much weaker demand. Sales decreased by 7% to EUR 35 billion, adjusted EBIT was EUR 567 million and free cash flow before M&A was positive at EUR 110 million. The equity ratio was 35%, while net financial assets increased to 4.4 billion euros. Based on this, the Management Board and Supervisory Board of thyssenkrupp AG proposed a dividend of 15 euro cents per share for the business year 2023/2024.
“We are leading all our businesses towards decarbonization”
Miguel López, CEO of thyssenkrupp AG, noted that 2025 will be a year of decisions for thyssenkrupp in many respects: "We are improving our performance, bringing our businesses up to the level of the competition and strictly adhering to our financial targets. With the planned restructuring, steel is taking important steps towards an independent solution. The spin-off of the maritime business is also taking concrete shape. We are steering all our businesses towards decarbonization to ensure long-term success. As soon as green markets gain full momentum, we will be ready."
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