Targets
Financial targets
Although market conditions remain challenging, our financial targets still apply. Our clear aim is for all businesses to make further significant progress in improving their operating performance and make a sustained positive value and cash flow contribution to thyssenkrupp. Above all, by implementing APEX, the holistic performance program that we rolled out at the end of the reporting year, our goal is for the businesses to quickly and sustainably achieve the medium-term financial targets announced at the Capital Market Day in December 2021, which have now been adjusted to reflect the new structure, and to make optimal use of market opportunities.
In the medium term, the group’s adjusted EBIT margin should rise to between 4% and 6%. We are also working hard to achieve a significantly positive free cash flow before M&A. Similarly, reliable payment of a dividend continues to have the highest priority for us.
The medium-term targets for the individual businesses and for Corporate Headquarters, taking into account the realignment of the portfolio effective October 1, 2023, are as follows:
Automotive Technology1 – sales of over €7.5 billion a year, adjusted EBIT margin of 7-8%, and a cash conversion rate of at least 0.5
Decarbon Technologies – sales of over €5.0 billion a year, adjusted EBIT margin of over 5%, and a cash conversion rate of more than 0.6
Materials Services – increase shipment volumes to over 6 million tons, adjusted EBIT margin of
2-3%, a cash conversion rate of approximately 0.8 on a multi-year average and ROCE of over 9%
Steel Europe – increase shipment volumes to around 11 million tons, adjusted EBIT margin of
6-7%, cash conversion rate of over 0.4 and adjusted EBITDA per ton of around €100 over the steel cycle
Marine Systems – annual sales growth of around 7%, adjusted EBIT margin of 6-7%, cash conversion rate of approximately 1.0
Corporate Headquarters – further reduction in administrative expenses
Further information on our segments and the respective measures to achieve the targets can be found in the “Segment review” in the report on the economic position.
More information on our key performance indicators can be found in “Management of the group” in this section of the report; details on the forecast for the current fiscal year are provided in the “forecast report.”
1) Without Automation Engineering and Springs & Stabilizers
Source: Annual Report 2022/2023, p. 36
Overview about Indirect Financial Targets
thyssenkrupp | 30.09.2022 | 30.09.2023 | Change | More information | |
Annual energy efficiency gains of 85 GWh in 2022 / 2023 and 205 GWh in 2023 / 2024 | GWh | 255 | 340 | 33% | Climate, energy & environment |
Annual reduction of emission intensity by 1 t CO2 per million € sales to 34.5 t CO2 per million € sales in 2024 / 2025 | t CO2 per million € sales | 28.9 | 31.2 | 8% | |
Sustainable adjusted R&D intensity of around 3.0% | % | 2.4 | 2.8 | +0.4%-pts. | Technology and innovations |
Increase the proportion of women in management positions by at least 1% per year to 17% by 2025 / 2026 | % | 13.1 | 14.6 | +1,5%-pts. | Employees |
Reduce the accident frequency rate by at least 0.1 per year to 2.2 by 2023 / 2024 | accidents per million hours worked | 2.3 | 2.4 | 4% | Employees |
At least 60 supplier sustainability audits each year | # | 108 | 104 | -4% | Responsible Procurement |
Increase in the employee Net Promoter Score by 0.3 points per year to a value > 0 by 2025 / 2026 | # | - | (4) | - |