INTERIM REPORT 2012/2013€¦ · Interim Management Report 1st half 2012/2013 Strategic development...

INTERIM REPORT 2012/2013

THYSSENKRUPP AG 1ST HALF

OCTOBER 01, 2012 – MARCH 31, 2013

ThyssenKrupp in brief

ThyssenKrupp has more than 150,000 employees in around 80 countries working with passion and expertise to develop

solutions forsustainable progress. Their skills and commitment are the basis of our success. In fiscal year 2011/2012

ThyssenKrupp generated sales of €40 billion.

For us, innovations and technical progress are key factors in managing global growth and using finite resources in asustainable

way. With our engineering expertise in the areas of “Material”, “Mechanical” and “Plant”, we enable our customers to gain an

edge in the global market and manufacture innovative products in a cost- and resource-efficient way.

THYSSENKRUPP STOCK MASTER DATA

ISIN (International Stock Identification Number) DE 000 750 0001 Stock exchange Frankfurt (Prime Standard), Düsseldorf Symbols Frankfurt, Düsseldorf stock exchange TKA Reuters (Xetra trading) TKAG.DE Bloomberg (Xetra trading) TKA GY

C O N T E N T S

1 s t H A L F O C T O B E R 0 1 , 2 0 1 2 – M A R CH 3 1 , 2 0 13

I N T E R I M M A N A G E M E N T R E P O R T 02 THYSSENKRUPP IN FIGURES 03 STRATEGIC DEVELOPMENT OF THE GROUP 05 GROUP REVIEW 09 EXPECTED DEVELOPMENTS 11 BUSINESS AREA REVIEW 18 FINANCIAL POSITION 20 SUBSEQUENT EVENTS 21 THYSSENKRUPP STOCK 21 RATING 22 INNOVATIONS 22 EMPLOYEES 23 COMPLIANCE 24 MACRO AND SECTOR ENVIRONMENT 26 OPPORTUNITIES AND RISKS

C O N D E N S E D I N T E R I M F I N A N C I A L S T A T E M E N T S 29 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 CONSOLIDATED STATEMENT OF INCOME 31 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 32 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 33 CONSOLIDATED STATEMENT OF CASH FLOWS 34 SELECTED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 45 REVIEW REPORT OF THE HALF-YEAR FINANCIAL REPORT 46 RESPONSIBILITY STATEMENT

F U R T H E R I N F O R M A T I O N 47 REPORT BY THE SUPERVISORY BOARD AUDIT COMMITTEE 48 CONTACT AND 2013/2014 DATES

This interim report was published on May 15, 2013.

Interim Management Report 1st half 2012/2013 ThyssenKrupp in figures 02

ThyssenKrupp in figures GROUP CONTINUING OPERATIONS

1st half

2011/2012 1st half

2012/2013 Change Change

in % 2nd quarter 2011/2012

2nd quarter 2012/2013 Change

Change in %

Order intake million € 20,764 19,318 (1,446) (7) 11,087 9,676 (1,411) (13)

Net sales total million € 19,791 17,939 (1,852) (9) 10,195 9,102 (1,093) (11)

EBITDA million € 1,247 698 (549) (44) 571 240 (331) (58)

EBIT million € 561 215 (346) (62) 305 (4) (309) --

EBIT margin % 2.8 1.2 (1.6) — 3.0 0.0 (3.0) —

Adjusted EBIT million € 733 470 (263) (36) 361 241 (120) (33)

Adjusted EBIT margin % 3.7 2.6 (1.1) — 3.5 2.6 (0.9) —

EBT million € 251 (110) (361) -- 149 (176) (325) --

Income/(loss) (net of tax) million € (84) (44) 40 48 (138) (77) 61 44

attributable to ThyssenKrupp AG's shareholders million € (123) (60) 63 51 (164) (89) 75 46

Basic earnings per share € (0.24) (0.12) 0.12 50 (0.32) (0.18) 0.14 44

Operating cash flow million € (1,132) 243 1,375 ++ 195 165 (30) (15)

Free cash flow million € (1,393) 705 2,098 ++ (63) (31) 32 51

Employees (March 31) 154,751 151,405 (3,346) (2) 154,751 151,405 (3,346) (2) FULL GROUP

1st half

2011/2012 1st half

2012/2013 Change Change


2nd quarter 2012/2013 Change

Change in %

Order intake million € 24,268 21,315 (2,953) (12) 13,008 10,113 (2,895) (22)

Net sales total million € 23,293 19,952 (3,341) (14) 12,155 9,540 (2,615) (22)

EBITDA million € 836 671 (165) (20) 424 226 (198) (47)

EBIT million € (585) (496) 89 15 (228) (700) (472) --

EBIT margin % (2.5) (2.5) 0.0 — (1.9) (7.3) (5.4) —

Adjusted EBIT million € 177 301 124 70 152 227 75 49

Adjusted EBIT margin % 0.8 1.5 0.7 — 1.3 2.4 1.1 —

EBT million € (915) (836) 79 9 (401) (876) (475) --

Net income/(loss) million € (1,067) (822) 245 23 (587) (852) (265) (45)

attributable to ThyssenKrupp AG's shareholders million € (1,047) (621) 426 41 (587) (656) (69) (12)

Basic earnings per share € (2.03) (1.21) 0.82 40 (1.14) (1.28) (0.14) (12)

Operating cash flow million € (1,719) 22 1,741 ++ 96 162 66 69

Free cash flow million € (2,475) 286 2,761 ++ (421) (75) 346 82

Net financial debt (March 31) million € 6,480 5,298 (1,182) (18) 6,480 5,298 (1,182) (18)

Total equity (March 31) million € 8,872 3,575 (5,297) (60) 8,872 3,575 (5,297) (60)

Employees (March 31) 170,780 155,473 (15,307) (9) 170,780 155,473 (15,307) (9) BUSINESS AREAS

Order intake (million €)

Sales (million €)

EBIT (million €)

Adjusted EBIT (million €) Employees

1st half

2011/2012 1st half

2012/2013 1st half

2011/2012 1st half

2012/2013 1st half

2011/2012 1st half

2012/2013 1st half

2011/2012 1st half

2012/2013 March 31,

2012 Sept. 30,

2012 March 31,

2013

Components Technology 3,636 2,684 3,633 2,705 297 108 231 105 31,304 28,011 27,698

Elevator Technology 3,007 3,249 2,670 2,920 231 304 274 315 46,605 47,561 48,150

Industrial Solutions 2,758 3,597 2,511 2,734 184 339 357 320 17,687 18,111 18,427

Materials Services 6,774 5,753 6,553 5,738 114 (121) 130 98 28,123 27,595 26,230

Steel Europe 5,695 5,023 5,416 4,765 123 19 132 39 28,137 27,761 27,773

Corporate 72 98 72 98 (218) (251) (221) (217) 2,895 3,084 3,127

Consolidation (1,178) (1,086) (1,064) (1,021) (170) (183) (170) (190)

Continuing operations 20,764 19,318 19,791 17,939 561 215 733 470 154,751 152,123 151,405

Order intake (million €)

Sales (million €)

EBIT (million €)

Adjusted EBIT (million €)

2nd quarter 2011/2012








Components Technology 1,858 1,360 1,880 1,360 128 65 128 63

Elevator Technology 1,541 1,633 1,322 1,388 118 133 132 146

Industrial Solutions 1,665 1,595 1,202 1,428 175 198 193 180

Materials Services 3,573 2,988 3,408 2,923 74 (157) 90 58

Steel Europe 2,990 2,620 2,886 2,512 21 (10) 30 9

Corporate 39 43 37 43 (119) (139) (120) (120)

Consolidation (579) (563) (540) (552) (92) (94) (92) (95)

Continuing operations 11,087 9,676 10,195 9,102 305 (4) 361 241

As part of its strategic development program ThyssenKrupp is divesting its steelmaking and processing plants in Brazil and the USA. At September 30,

2012 the Steel Americas business area met the requirements for classification as a discontinued operation under IFRS. This had been the case for

Stainless Global since September 30, 2011; the combination of the stainless business with the Finnish company Outokumpu was successfully

completed on December 28, 2012. ThyssenKrupp now holds a 29.9% financial interest in Outokumpu which is accounted for by the equity method and

whose income effects are not included in EBIT due to its non-operating nature. At January 01, 2013 the business areas Plant Technology and Marine

Systems were combined into the new business area Industrial Solutions; since then the continuing operations comprise five business areas and

Corporate.

Interim Management Report 1st half 2012/2013 Strategic development of the Group 03

Strategic development of the Group

Global trends are leading to growing worldwide demand for consumer and capital goods, infrastructure, raw materials and

energy. However, this growing demand is set against the finite nature of natural resources. The consequences of climate

change and environmental legislation worldwide also require “better” solutions. So the world needs not just “more” but above

all “better”: more efficient use of resources, greener production processes, and more sustainable infrastructure and

consumer and capital goods. As a diversified industrial group ThyssenKrupp is firmly focused on these markets of the future

and can meet demands for both “more” and “better” in many areas. In partnership with our customers we use our leading

engineering expertise to develop technological solutions and sustainable processes and products for greater resource

efficiency.

To align the Group with these global trends we launched our strategic development program in May 2011. The pillars of this

holistic program are continuous portfolio optimization, changes in our corporate culture, leadership and structure, and a

stronger performance orientation. This will strengthen our financial base and give us freedom to strategically expand our

business activities. In the 1st half 2012/2013 we reached important milestones in the implementation of the strategic

development program:

Portfolio further optimized After the successful combination of Inoxum, the former Stainless Global business area, with the Finnish stainless steel

manufacturer Outokumpu in the 1st quarter of the current fiscal year we are now engaged in intensive negotiations on the

sale of the two Steel Americas plants. These negotiations include shareholder partner Vale, the Brazilian development bank

BNDES and Brazilian government agencies. We remain focused on signing a deal promptly. The proceeds from the sale will

significantly reduce our net financial debt.

Despite the current financial constraints we made selective growth investments in the reporting period. For example the

Elevator Technology business area strengthened its operations in the USA and Europe through various business acquisitions.

The Industrial Solutions business area expanded its presence in the naval shipbuilding sector in Australia, New Zealand and

Southeast Asia with the acquisition of an Australian engineering firm.

In addition we invested particularly in organic growth. In the Components Technology business area we expanded our

presence in Germany and above all in the growth regions Brazil, China, India and the NAFTA region. The latest example is the

investment in a new truck crankshaft factory in the Chinese metropolis of Nanjing. The factory was inaugurated in April 2013.

Efficiency gains and growth opportunities at Industrial Solutions As part of a proactive strategic focus on markets and customers the two former business areas Plant Technology and Marine

Systems were combined into the new business area Industrial Solutions on January 01, 2013. Leadership structures are

being streamlined and complexity within the Group further reduced. The capabilities of the new business area range from

patented processes and technologies and turnkey plants for the chemical and refinery industries to equipment for the cement

industry and innovative solutions for the mining and processing of raw materials. In addition Industrial Solutions is active in

naval shipbuilding and supplies production systems for the auto industry. The business area has great growth opportunities;

its leading engineering expertise in project business as well as in processes and technologies enables it to meet requirements

for “more” and “better”, both in the industrialized countries and in the growth regions.

Interim Management Report 1st half 2012/2013 Strategic development of the Group 04

Corporate program “impact 2015” on track The name impact describes the various initiatives we are pursuing to drive the strategic development of the Group. Under the

“impact 2015” program the goal is to improve performance and achieve a cumulative EBIT effect of €2 billion from

performance measures in the three fiscal years up to and including 2014/2015. We aim to achieve €500 million in the current

fiscal year and another €750 million in each of the two following years. As far as the current fiscal year is concerned we are

well on course to achieve the forecast €500 million. “impact 2015” covers all areas of the business . One example is the

purchasing program “synergize+”, aimed at achieving a sustainable reduction in material costs. The Steel Europe business

area with its program “Best in Class – reloaded” aims to make a major contribution to the savings targets of “impact 2015”

with a €500 million EBIT savings by fiscal year 2014/2015. The program is a first step in improving the Group’s European

steel operations in a difficult competitive climate and achieving the earnings, cash flow, value added and competitive profile

demanded of all areas of the Group under the strategic development program. In this connection it is intended to sell the

grain-oriented electrical steel business with plants in Gelsenkirchen, Germany, and Isbergues, France, as well as the electrical

steel operation in Nashik, India, with altogether around 1,800 employees as part of a best owner solution.

ACT creating optimum Group leadership structure with competitive costs Under the Group initiative ACT (“Achieve Change @ ThyssenKrupp”) ThyssenKrupp is optimizing its leadership and business

structure and associated processes. The aim is to change our understanding of leadership and our corporate culture in terms

of greater openness, transparency and integration, and to improve performance and efficiency throughout the Group. The

functions and structure of the Executive Board have been streamlined, and the corporate functions and corporate service

units have been reduced in number from 26 to 17 and reorganized. The processes between corporate functions, business

areas and new regional units are being standardized. In a detailed analysis of current function costs, savings and optimization

opportunities totaling around €250 million have been identified in connection with the new structures and processes in the

Group. Overall the number of employees in administrative functions in the Group worldwide is to be reduced by around 3,000

from its current level of around 15,000. In the coming months the Group will be adapted step by step to the new structure. We

plan to operate in the new structure from October 2013. Most of the effects should be realized within the next three years. In

addition, the Group’s structure will be routinely reviewed in the future as part of the annual strategy process in order to

ensure it is continuously enhanced and adapted in line with changing conditions.

Reorganization of Supervisory Board supports realignment of the Group On March 08, 2013 Dr. Gerhard Cromme stepped down as Supervisory Board Chairman of ThyssenKrupp AG and from his

seat on the Supervisory Board effective March 31, 2013. The decision facilitates a fresh start for the Supervisory Board as

well and supports the necessary changes to the Group’s leadership system and culture. In a special meeting on March 19,

2013 the Supervisory Board elected Prof. Dr. Ulrich Lehner as new Chairman of the Supervisory Board effective April 01,

2013. Prof. Lehner will reorganize the Supervisory Board in parallel with the realignment of the Group and make corporate

governance and compliance key topics of the Supervisory Board’s work in the future. Effective April 19, 2013 Dr. Kersten v.

Schenck also left the Supervisory Board. The shareholder representatives on the Supervisory Board of ThyssenKrupp AG

accepted a proposal by the nomination committee and recommended Carsten Spohr and Dr. Lothar Steinebach as new

Supervisory Board members. Both were delegated to the Supervisory Board of ThyssenKrupp AG by the Alfried Krupp von

Bohlen und Halbach Foundation effective April 19, 2013; they are not members of the board of trustees of the Alfried Krupp

von Bohlen und Halbach Foundation.

Interim Management Report 1st half 2012/2013 Group review 05

Group review

Operational and strategic milestones achieved ThyssenKrupp met its operational and strategic targets in the 2nd quarter (January 01 – March 31, 2013) and overall in the

1st half 2012/2013 (October 01, 2012 – March 31, 2013):

Adjusted EBIT from continuing operations came to €470 million in the 1st half. The 2nd quarter contributed €241 million to

this, coming in at the top end of our guidance of around €200 million and slightly higher quarter-on-quarter. All business

areas made positive contributions. The share of the capital goods operations in the 1st half was €740 million, significantly

higher than the €137 million contributed by the materials operations. Adjusted EBIT of Corporate came to €(217) million and

consolidation to €(190) million.

Free cash flow from continuing operations in the 1st half was €705 million. This represents a year-on-year improvement of

around €2.1 billion and reflects our efforts to optimize the structure of our cash flow profile. In the 2nd quarter free cash flow

was almost breakeven at €(31) million despite the interest payments typically concentrated in this quarter, and before

divestments was better quarter-on-quarter and better than our guidance.

On this basis the net financial debt of the full Group, while increasing slightly by €0.1 billion in the 2nd fiscal quarter,

decreased in total in the 1st half 2012/2013 from €5.8 billion to €5.3 billion; in the prior year we recorded an increase of

around €2.9 billion.

Taking into account the current negotiations in connection with the disposal process for Steel Americas we have come to a

new assessment of fair value less costs to sell at March 31, 2013. This has resulted in a further impairment loss of €683

million on property, plant and equipment. This book loss was the main reason for the net loss of €(822) million for the full

Group in the 1st half (net loss attributable to shareholders of ThyssenKrupp AG: €(621) million), for the decline in the equity

ratio to 9.5% and for the temporary increase in the gearing ratio (net debt to equity) to 148.2 %. With cash, cash equivalents

and committed undrawn credit lines totaling €8.0 billion at March 31, 2013 and with our balanced maturity structure,

ThyssenKrupp is solidly financed. The cash inflow from the sale of Steel Americas will significantly reduce our temporarily

increased gearing again; in addition the sale will substantially improve the earnings, cash flow, value-added and competitive

profile of the Group.

Growth in elevator and project business in a difficult climate ThyssenKrupp held up generally well in a continuing difficult macroeconomic climate in the 1st half 2012/2013; key pillars

were the solid performances of Elevator Technology and Industrial Solutions.

Order intake from continuing operations in the 1st half came to €19.3 billion, down 7% year-on-year. However there were

significant increases in the elevator business, which achieved new record order levels in each of the first two quarters, and in

particular in project business: Industrial Solutions increased its order intake by 30%. Based on this strong ordering activity,

orders in hand at Elevator Technology and Industrial Solutions rose to a record level of altogether €20.2 billion. New orders in

the components and materials businesses in the 2nd quarter were higher quarter-on-quarter following the typical seasonal

pattern but down year-on-year due to lower demand and disposals. Low volumes and above all lower prices weighed on the

steel business in Europe and global materials trading.


Sales from continuing operations decreased year-on-year by 9% to €17.9 billion. The effects of disposals and declines in the

components and materials businesses were partly offset by higher sales in the elevator and project businesses.

Including the discontinued operations Steel Americas and Stainless Global (sold December 28, 2012) the Group’s order

intake in the 1st half 2012/2013 dropped by 12% to €21.3 billion, while Group sales fell by 14% to €20.0 billion.

Adjusted EBIT of €470 million on course to meet full-year target In a difficult economic climate adjusted EBIT from continuing operations in the 1st half 2012/2013 decreased year-on-year

from €733 million to €470 million, but is on course to meet the full-year target of around €1 billion. Of the half-year figure, the

2nd quarter contributed €241 million, which was at the top end of our guidance of around €200 million and up slightly from

the prior quarter. All business areas ended the 1st half with a positive contribution; this is also true of Steel Europe, which

delivered positive adjusted EBIT in both quarters in an industry at the bottom of its cycle. Industrial Solutions made the

biggest earnings contribution.

In the more cyclical materials operations the earnings decline was mainly due to the weaker trend in prices. In the capital

goods operations profits at Industrial Solutions were down slightly temporarily, while at Components Technology they were

lower year-on-year due to disposals and lower demand. Elevator Technology increased its earnings year-on-year in both

quarters. Overall the capital goods operations delivered €740 million of adjusted EBIT, much higher than the €137 million

contributed by the materials operations. Adjusted EBIT of Corporate came to €(217) million and consolidation to €(190)

million. Adjusted EBIT margin from continuing operations in the reporting half decreased year-on-year from 3.7% to 2.6%.

Including the discontinued operations, adjusted EBIT increased from €177 million to €301 million. The main reasons for this

were the absence of losses at Stainless Global after conclusion of the sale and lower losses at Steel Americas; adjusted EBIT

margin increased from 0.8% to 1.5%.


Earnings impacted by special items In the 1st half 2012/2013 EBIT from continuing operations was impacted by net special items of €255 million. In connection

with the so-called rail cartel additional provisions totaling €207 million were recognized for identifiable risks from expected

fines and claims for damages. Further provisions were recognized for restructurings in particular at Elevator Technology,

Materials Services and Steel Europe. In addition there were severance payments to former Executive Board members at

Corporate. This was partly offset by non-operating income recorded mainly in the 2nd quarter at the shipbuilding operations

of Industrial Solutions.

ADJUSTED EBIT IN MILLION €

1st half

2011/2012 1st half

2012/2013 Change



Change in %

EBIT 561 215 (62) 305 (4) --

+/- Disposal losses/gains (51) (3) 94 1 2 100

+ Restructuring expense 40 45 13 8 32 300

+ Impairment 191 4 (98) 36 5 (86)

+ Other non-operating expense 20 234 ++ 11 228 ++

- Other non-operating income (28) (25) 11 0 (22) —

Adjusted EBIT 733 470 (36) 361 241 (33)

After special items, EBIT from continuing operations totaled €215 million. The prior-year figure was €561 million and was

impacted by special items of €172 million mainly in connection with the sale of the civil shipbuilding operations.

Including the discontinued operations the Group’s EBIT improved year-on-year from €(585) million to €(496) million but

remained clearly negative. The main reason for this were net negative special items of €543 million attributable to the

discontinued operations. These include €683 million negative effects from the fair value adjustment at Steel Americas and

€140 million positive special items at Stainless Global, mainly due to the provisional disposal gain.

Loss from continuing operations (net of tax) improved from €(84) million to €(44) million; the figure attributable to

shareholders of ThyssenKrupp AG improved from €(123) million to €(60) million. Earnings per share from continuing

operations came to €(0.12). The net loss of the full Group was impacted particularly by the fair value adjustment at Steel

Americas but improved from €(1,067) million in the prior year to €(822) million. The net loss attributable to shareholders of

ThyssenKrupp AG improved year-on-year from €(1,047) million to €(621) million; earnings per share came to €(1.21).

Net financial debt and cash flow We made progress with our goal of improving our cash flow profile and reducing net financial debt. The free cash flow of the

full Group increased year-on-year by €2.8 billion to €286 million. With free cash flow from continuing operations almost

breakeven before positive disposal effects in the first two quarters, cash outflow from discontinued operations was

significantly outweighed by cash inflow from the successful closing of the stainless steel transaction. The full Group’s net

financial debt at March 31, 2013 came to €5,298 million, down both from a year earlier (€6,480 million) and from September

30, 2012 (€5,800 million). Taking into account cash, cash equivalents and committed undrawn credit lines totaling €8.0

billion and our balanced maturity structure, ThyssenKrupp is solidly financed. At March 31, 2013 the gearing ratio,

temporarily increased as a result of the fair value adjustment, was 148.2%.


The net financial debt of the full Group is calculated as the difference between the cash and cash equivalents shown in the

statement of financial position plus other current financial assets, and non-current and current financial debt; the

corresponding assets intended for sale of the disposal groups and discontinued operations are also taken into account.

Bond successfully issued On February 18, 2013 ThyssenKrupp AG issued a €1.25 billion 5 ½-year bond under its €10 billion debt issuance program.

The bond was very well received by the capital market, with an order book in excess of €4 billion. In view of the good

response, the bond was increased by €0.35 billion to a total of €1.6 billion on March 05, 2013. It pays a coupon of 4.0% p.a.

at an issue price of 99.681% / 100.625%. The issue was timed to benefit from the advantageous market climate and

achieved a historically favorable coupon for a ThyssenKrupp bond. In addition it extended the maturity profile of our financial

debt and strengthened the capital market share of our financing mix. The minimum denomination of €1,000 allows retail

investors to purchase the bond on the market.

Capital expenditures In the 1st half 2012/2013 ThyssenKrupp invested a total of €719 million, €336 million less than a year earlier. €297 million of

the decline was attributable to the discontinued operations and resulted from the absence of capital spending at Stainless

Global after the disposal and from a sharp fall in capital spending at Steel Americas.

We invested €521 million in the continuing operations in the first 6 months of the current fiscal year, which was slightly less

than the prior-year figure of €560 million and well within our guidance for the full-year budget of €1.4 billion maximum. More

than half the capital spending in our continuing operations went on the capital goods businesses and here particularly on

Components Technology. The majority of the budget for our components business relates to the growth regions BIC and

NAFTA; the latest example is the investment in a new truck crankshaft factory in the Chinese metropolis of Nanjing.

Interim Management Report 1st half 2012/2013 Expected developments 09

Expected developments

Fiscal year 2012/2013 Since September 30, 2012 the Steel Americas business area has been treated as a discontinued operation – like the

Stainless Global business area before it. The following forecast therefore applies to the Group’s continuing operations; Steel

Americas is no longer included. We remain focused on signing a deal for Steel Americas promptly. The sale of Stainless

Global was closed on December 28, 2012.

Sales and earnings – From the present perspective the Group’s business performance in the 2012/2013 fiscal year will be

characterized to a very large extent by the continued absence of a global economic recovery, with an unsolved debt crisis in

particular in the euro zone and slower growth in the emerging economies.

Based on the assumption of stagnation for the most part in the core markets of our more cyclical materials and components

businesses, where in the current economic climate visibility does not extend much beyond a quarter, our expectations for

sales and adjusted EBIT compared with the prior year are currently as follows:

We expect the Group’s sales in the 2nd half to come in higher than in the 1st half, but full-year sales will be down year-on-

year (sales 2011/2012: €40.1 billion). We also expect there to be no major dislocations on the raw materials markets.

Sales lost due to portfolio measures, in particular at Steel Europe and Components Technology, will not be fully offset by

organic growth in the capital goods businesses; sales in the elevator and project businesses are already secured well into

the future by existing high order backlogs.

Assuming that the slower activity on the materials markets in the 1st half compared with the prior year continues but does

not progressively worsen, adjusted EBIT from the Group’s continuing operations should be around €1 billion (adjusted

EBIT 2011/2012: €1.4 billion).

In the capital goods operations (adjusted EBIT 2011/2012: €1.7 billion) earnings contributions from the Industrial

Solutions business area should remain largely steady. In the elevator business we expect to see an improvement in

margins and earnings. The components business will be impacted by portfolio adjustments, lower operating levels in

existing plants, startup costs of new facilities in China and India, and increasing competition for slewing bearings for wind

turbines.

Adjusted EBIT from the generally more cyclical materials activities (adjusted EBIT 2011/2012: €0.6 billion) is expected to

be lower year-on-year but clearly positive.

Our goal in the 2012/2013 fiscal year is to improve cash generation on a sustainable basis and reduce our net financial debt.

Despite the problems on the European financial markets, the associated difficult conditions, and the temporary increase in

gearing, our financing and liquidity in fiscal 2012/2013 will remain on a solid basis and able to cushion fluctuations resulting

from specific short-term macroeconomic issues. After the high capital expenditures in prior years for the major projects in

Brazil and the USA and following completion of the stainless steel transaction, we expect the full Group’s capital spending to

be well below the prior-year level.

Discontinued operations – If the discontinued operation Steel Americas were to remain in the Group for the full 2012/2013

fiscal year, we would expect negative adjusted EBIT for this operation in the low to mid three-digit million euro range. This

figure does not include depreciation expenses as these are no longer required with the classification of Steel Americas as a

discontinued operation.

Interim Management Report 1st half 2012/2013 Expected developments 10

Fiscal year 2013/2014 In the 2013/2014 fiscal year we will continue to work on the structural improvement of the Group and rigorously implement

our integrated strategic development plan to make the Group competitive and sustainable. This may include among other

things targeted growth stimulus and further portfolio optimization. Provided the economic effects of the debt crisis do not

extend into our 2013/2014 fiscal year, we expect our sales to increase with general growth in the economy. Rising sales and

structural improvements should have a correspondingly positive impact on earnings. In 2013/2014 we additionally expect

significant improvements on the earnings side as a result of the corporate programs initiated, in particular “impact 2015”,

and the continuous stimulus to efficiency provided by benchmarking. Since we additionally assume that the portfolio

measures described will be implemented, we expect an improvement in the equity and financing situation in 2013/2014.

Interim Management Report 1st half 2012/2013 Business area review 11

Business area review

Components Technology

COMPONENTS TECHNOLOGY IN FIGURES

1st half

2011/2012 1st half

2012/2013 Change



Change in %

Order intake million € 3,636 2,684 (26) 1,858 1,360 (27)

Sales million € 3,633 2,705 (26) 1,880 1,360 (28)

EBIT million € 297 108 (64) 128 65 (49)

EBIT margin % 8.2 4.0 — 6.8 4.8 —

Adjusted EBIT million € 231 105 (55) 128 63 (51)

Adjusted EBIT margin % 6.4 3.9 — 6.8 4.6 —

Employees (March 31) 31,304 27,698 (12) 31,304 27,698 (12)

The Components Technology business area supplies a range of high-tech components for general engineering, construction

equipment and wind turbines. In the auto sector our activities are focused on crankshafts, camshafts, steering systems,

dampers, springs, stabilizers and the assembly of axle modules.

Order intake and sales down due to disposals and lower demand As in the 1st quarter, the disposals of the previous fiscal year resulted in a structurally lower volume of business at

Components Technology in the 2nd quarter 2012/2013 and therefore in the 1st fiscal half. Order intake in the 2nd quarter

decreased year-on-year by 27% to €1.4 billion but increased slightly quarter-on-quarter. Excluding the prior-year disposals,

order intake fell by 10% as a result of lower demand. There was no turnaround in the trend in western Europe. Demand for car

and truck components remained weak. However there were positive developments on the car markets in the USA, Brazil, China

and Russia; we will increase our presence in Brazil and China through plants currently in the ramp-up phase. The market for

heavy trucks, especially in Europe, the USA and China, remained in steep decline, but there was a slight recovery in demand in

Brazil. The uncertain investment climate resulted in project deferrals in the construction and wind energy sectors, especially in

western Europe, leading to lower orders for components. In China, demand for components remained weak due to delays in

connecting existing wind turbines to the grid.

Following the trend in orders, sales also came to €1.4 billion in the 2nd quarter. This represented a 28% decrease year-on-

year, mainly due to the disposals; excluding the impact of disposals, sales fell by 11%.

EBIT in 2nd quarter up from 1st quarter but down year-on-year At €108 million in the 1st half and €65 million in the 2nd quarter, EBIT at Components Technology was down from the high

prior-year figures. Key factors were the absence of the operating profits of the US foundry group Waupaca, the slowdown in

the western European market for car and heavy truck components, and continuing weak demand in the wind energy and

infrastructure sectors. In addition the earnings figure includes startup costs of new plants and products. At ThyssenKrupp

Federn & Stabilisatoren an extensive restructuring program was launched whose initial effects could already be seen in the

2nd quarter. Adjusted EBIT of €63 million for the 2nd quarter was down year-on-year but up quarter-on-quarter.


In Berco's undercarriage components business a restructuring program with extensive personnel measures is being

introduced to improve profitability and sustainability. The new management team will develop rationalization measures with

the active involvement of the trade unions concerned. The restructuring will form the basis to grow the company successfully,

safeguard jobs over the long term and support disposal to a best owner.

Elevator Technology

ELEVATOR TECHNOLOGY IN FIGURES

1st half

2011/2012 1st half

2012/2013 Change



Change in %

Orders in hand (March 31) million € 3,518 3,766 7 3,518 3,766 7

Order intake million € 3,007 3,249 8 1,541 1,633 6

Sales million € 2,670 2,920 9 1,322 1,388 5

EBIT million € 231 304 32 118 133 13

EBIT margin % 8.7 10.4 — 8.9 9.6 —

Adjusted EBIT million € 274 315 15 132 146 11


Employees (March 31) 46,605 48,150 3 46,605 48,150 3

The Elevator Technology business area supplies passenger and freight elevators, escalators and moving walks, passenger

boarding bridges, stair and platform lifts as well as service for the entire product range. Over 900 locations worldwide form a

tight-knit sales and service network that keeps us close to customers.

Significant growth in orders and sales Elevator Technology continued its positive performance in the 1st half 2012/2013 and reported significant growth in orders

and sales in the first two quarters of the current fiscal year.

Order intake continued to show a very positive trend, particularly on the Chinese market for new installations. Appreciable

growth was also achieved on the North and South American markets. The level of business in Europe was steady overall.

Order intake was 8% higher year-on-year at €3.2 billion and reached new record highs in each of the two first quarters. Sales

were likewise driven by positive new installations business on the Asian markets. Some notable sales increases were also

reported in North and South America. Overall volumes in both the new installations and the service and modernization

businesses grew continuously. In the 1st half of the fiscal year Elevator Technology increased its sales by 9% to €2.9 billion.

In the 2nd quarter, too, sales were higher year-on-year but, typically for this time of year, down from the previous quarter

among other things due to the Chinese New Year holiday.

Earnings and margins higher year-on-year In the 1st half 2012/2013 Elevator Technology achieved EBIT of €304 million. Adjusted EBIT came to €315 million and was

higher year-on-year in the first half and each of the two first quarters. This was mainly the result of the growth in sales and

positive effects from the restructuring measures initiated in the last fiscal year among other things in Spain and at Access

Solutions in the USA. Under an extensive performance program focused on the areas production, service, growth markets,

product and regional portfolios, and M&A, we are working intensively on continuously improving earnings and margins: In the 1st

half adjusted EBIT margin rose to 10.8% from 10.3% a year earlier.


Industrial Solutions

INDUSTRIAL SOLUTIONS IN FIGURES

1st half

2011/2012 1st half

2012/2013 Change



Change in %

Orders in hand (March 31) million € 13,366 16,440 23 13,366 16,440 23

Order intake million € 2,758 3,597 30 1,665 1,595 (4)

thereof Marine Systems* million € 957 227 (76) 731 45 (94)

Sales million € 2,511 2,734 9 1,202 1,428 19

thereof Marine Systems* million € 586 703 20 220 400 82

EBIT million € 184 339 84 175 198 13

EBIT margin % 7.3 12.4 — 14.6 13.9 —



Employees (March 31) 17,687 18,427 4 17,687 18,427 4

* including other shareholdings and consolidation

Effective January 01, 2013 the former Plant Technology and Marine Systems business areas were combined into the new

Industrial Solutions business area. Industrial Solutions comprises the operating units Process Technologies (Uhde), Resource

Technologies (Polysius/Fördertechnik), Marine Systems (HDW/Blohm+Voss Naval) and System Engineering. The product

portfolio encompasses chemical plants and refineries (Process Technologies), equipment for the cement industry and

innovative solutions for the mining and extraction of raw materials (Resource Technologies), naval shipbuilding (Marine

Systems), and production systems for the auto industry (System Engineering). A range of services rounds out the portfolio.

Outstanding engineering expertise for patented processes and mechanical applications, global project management, system

integration, reliable procurement and supplier management, and a service offering meeting the highest standards form the

basis for lasting customer satisfaction.

Steep rise in order intake, order backlog at record level The markets of Industrial Solutions performed positively overall in the 1st half 2012/2013. The excellent growth in order

intake reflects the high standing of our engineering, which enables our customers to differentiate themselves by

manufacturing innovative products in a cost and resource efficient way.

Order intake was significantly higher year-on-year at €3.6 billion in total. Chemical plant construction at Process Technologies

played a key role in this. Due to low gas prices in North America, demand for fertilizer plants remains high; this will continue

to open up opportunities for further chemical plant projects in North America over the long term. In the Resource

Technologies area we benefited from strong infrastructure demand in Southeast Asia: We won a €190 million follow-up order

to expand a cement plant in Indonesia, where double-digit growth is forecast for the cement market in 2013. System

Engineering received an order for a manufacturing line for the aerospace industry – an activity we will be further expanding.

Order intake in naval shipbuilding was down from the high prior-year figure, which contained a major order. Nevertheless, the

markets of Marine Systems continue to perform positively; there are a number of promising projects worldwide, including

some in the Asia/Pacific region. To strengthen its market position in the Southeast Asian region including Australia and New

Zealand, Marine Systems acquired the Australian engineering firm Australian Marine Technologies.

The exceptionally high order backlog of €16.4 billion at March 31, 2013 continues to secure a good workload, provides

planning certainty and contributes to the prospects for growth.

In the 1st half 2012/2013 Industrial Solutions' sales were 9% higher than a year earlier at €2.7 billion, confirming the stable

upward trend.


1st half EBIT significantly higher; adjusted EBIT down from high prior-year level EBIT amounted to €339 million in the 1st half 2012/2013, and €197 million in the 2nd quarter. This was significantly higher

than a year earlier, when EBIT was impacted by special items of €173 million.

At €320 million, adjusted EBIT in the 1st half 2012/2013 was down from the prior-year figure, which profited above all from

the reversal of project-related risk provisions in shipbuilding. Adjusted EBIT in the 2nd quarter came to €180 million. At

11.7%, adjusted EBIT margin exceeded the minimum target of 10%.

Materials Services

MATERIALS SERVICES IN FIGURES

1st half

2011/2012 1st half

2012/2013 Change



Change in %


Sales million € 6,553 5,738 (12) 3,408 2,923 (14)

EBIT million € 114 (121) -- 74 (157) --

EBIT margin % 1.7 (2.1) — 2.2 (5.4) —



Employees (March 31) 28,123 26,230 (7) 28,123 26,230 (7)

With 500 locations in more than 30 countries, the Materials Services business area specializes in materials distribution

including technical services.

Holding up well – thanks to broad positioning and extensive program of measures Materials Services' broad portfolio of products and services, international positioning and efficient IT, warehousing and

logistics systems paid dividends again in the 1st half 2012/2013. In an early response to the increasingly difficult market

conditions, an extensive program of measures was initiated at the end of the last fiscal year relating to inventory

management, logistics, administration, and employees. As a result, the business area's performance remained relatively

good, also in comparison with many competitors.

Order intake was down 15% at just under €5.8 billion. Sales were 12% lower at €5.7 billion, with warehouse sales of metals

slipping 3.5% to 2.6 million tons. These figures reflect the continued economic slowdown in virtually all regions and sectors

with the exception of our materials activities in North America. Despite the typical seasonal quarter-on-quarter growth in

order intake and sales in the 2nd quarter, the general spring upturn was absent – due partly to the unusually long winter.

However, we continued the successful expansion of our materials and service activities for the aerospace industry and in this

connection launched new activities in India and Tunisia.

Demand for metallurgical raw materials remained weak as a result of numerous production cutbacks and stoppages in the

steel industry. Due to the deferral of some special projects by customers in Brazil, operating levels and sales of our steel mill

services decreased year-on-year in the 1st half. Here, too, we responded at an early stage with personnel measures.


For the "Railway/Construction" operations, with combined annual sales of around €400 million and roughly 800 employees,

we have initiated a sale process in view of limited growth prospects on the German market and increased cost pressure.

2nd quarter adjusted EBIT higher quarter-on-quarter but lower year-on-year In a difficult business environment, earnings in the 1st half 2012/2013 were down from a year earlier. Nevertheless, through

the intensification and early initiation of performance programs, Materials Services made a clear positive contribution to the

Group's earnings, with adjusted EBIT of €98 million. After special items of €219 million, mainly additional provisions for

recognizable risks from anticipated fines and claims in connection with the rail cartel, and for restructurings, EBIT in the first

half came to €(121) million. Analogously with order intake and sales, adjusted EBIT increased quarter-on-quarter to €58

million and EBIT margin to 2.0% in the 2nd quarter; however both figures were down from the year before.

Steel Europe

STEEL EUROPE IN FIGURES

1st half

2011/2012 1st half

2012/2013 Change



Change in %


Sales million € 5,416 4,765 (12) 2,886 2,512 (13)

EBIT million € 123 19 (85) 21 (10) --

EBIT margin % 2.3 0.4 — 0.7 (0.4) —



Employees (March 31) 28,137 27,773 (1) 28,137 27,773 (1)

The Steel Europe business area brings together the Group’s flat carbon steel activities, mainly in the European market.

Premium flat products are supplied to customers in the auto industry and other steel-using sectors. The range also includes

products for attractive specialist markets such as the packaging industry.

Orders and sales lower on account of selling prices In a persistently difficult market environment order intake, sales and shipments showed typical 2nd quarter growth quarter-

on-quarter, but were lower year-on-year on account of disposals and particularly selling prices. Overall 1st half order intake

at Steel Europe was down 12% at €5.0 billion. Excluding the construction elements business which was still contained in the

year-earlier figure, orders received were 11% lower. With order volumes level year-on-year, the reduction was due to the

lower prices at which these orders were booked. The negative trend in European spot market prices over long stretches of the

2012 calendar year affected our deals with customers with a time lag.

Sales were likewise 12% lower at around €4.8 billion; adjusted for portfolio effects the reduction was 11%. Shipments slipped

5%, but excluding disposals were roughly equal with the year before. The decrease in sales was therefore the result of lower

average selling prices, which affected all businesses. Sales to automotive manufacturers and their suppliers fell short of the

prior-year level for volume and price reasons. Business with other industrial customers and steel service centers profited in

part from an upturn in volumes, not least as a result of the inventory cycle. Shipments to the packaging, iron, sheet metal,

metal processing and tubes industries were higher than a year earlier. However, in the electrical steel area prices and

volumes remained under substantial pressure, with grain-oriented material particularly affected.


Production cutbacks continue Crude steel production at 5.6 million tons was 4% lower year-on-year. While the output of the Group's own mills was equal

with the previous year, supplies from Hüttenwerke Krupp Mannesmann decreased by 15%. Lower operating levels also

remained necessary in the downstream rolling and coating operations, though short-time working at ThyssenKrupp Steel

Europe AG ceased at the end of January 2013. However, in electrical steel production two locations announced short-time

working in the course of the 2nd fiscal quarter.

EBIT down sharply but still positive In the 1st half 2012/2013 adjusted EBIT fell by €93 million to €39 million but remained positive in both quarters in an

industry at the bottom of its cycle. The main reason for the slide in earnings was the inadequate price situation. EBIT

amounted to €19 million. The special items of €20 million include initial provisions in connection with the "Best in Class –

reloaded" program. Against the background of the inadequate earnings situation, we are working intensively on the detailed

planning and implementation of the measures. These include the planned sale under a best-owner solution of the grain-

oriented electrical steel operation with plants in Gelsenkirchen/Germany, Isbergues/France, and the electrical steel operations

in Nashik/India.

Corporate at ThyssenKrupp AG Corporate comprises the Group's head office and the shared services activities. The Group is managed centrally by

ThyssenKrupp AG as corporate headquarters. To achieve greater global integration, ThyssenKrupp is currently overhauling

the way the Group is organized, moving towards a three-dimensional management structure (matrix organization) made up of

operating businesses, functions and regions. As part of this new management model, regional headquarters are being set up

in India, Brazil, China and Japan. The regional headquarters in North America has been fully operational since the beginning

of the fiscal year.

The shared services activities comprise Business Services (finance and human resources), IT and Real Estate including non-

operating real estate. Sales of services by Corporate companies to Group companies and external customers in the 1st half

came to €98 million, €26 million more than in the same period the year before.

EBIT slipped €33 million year-on-year to €(251) million. The deterioration was mainly the result of higher administrative

costs, including consulting expenses for major projects such as the introduction of standardized data acquisition systems and

the efficiency and restructuring program ACT. Adjusted EBIT came to €(217) million, compared with €(221) million a year

earlier.


Steel Americas (discontinued operation)

STEEL AMERICAS IN FIGURES

1st half

2011/2012 1st half

2012/2013 Change



Change in %

Order intake* million € 1,215 1,069 (12) 632 509 (19)

Sales* million € 1,044 989 (5) 546 501 (8)

EBIT million € (518) (782) (51) (230) (695) --

EBIT margin % — — — — — —

Adjusted EBIT million € (516) (99) 81 (228) (12) 95

Adjusted EBIT margin % — — — — — —

Employees (March 31) 4,258 4,068 (4) 4,258 4,068 (4)

* including internal orders/sales within the Group

With its steelmaking and processing plants in Brazil and the USA Steel Americas is tapping into the North American market

for premium flat steel products. As part of the strategic development program, ThyssenKrupp is to dispose of these plants. At

September 30, 2012 Steel Americas met the requirements for classification as a discontinued operation under IFRS.

Difficult business environment on North American market In the 1st half 2012/2013 order intake came to €1.1 billion, down 12% from the year before. In a difficult business

environment sales at €1.0 billion were down by 5% as a result of lower prices, while production and shipments remained

largely steady. The steel mill in Brazil produced around 1.7 million tons of slabs which it supplied to the US processing plant,

Steel Europe, and customers in Brazil and North America. Altogether Steel Americas sold 1.3 million tons of flat steel to North

American customers. 0.2 million tons of slabs were sold on the Brazilian and North American markets, and 0.3 million tons of

slabs were supplied to Steel Europe.

Steel Americas made further progress with customer certification: The certification processes were rigorously expedited in the

automotive industry and completed in the pipe & tube sector.

EBIT impacted by special items, adjusted EBIT significantly improved In the 1st half EBIT came to €(782) million, but was impacted by special items of €683 million as a result of the new fair value

estimate. Adjusted EBIT improved from €(516) million in the prior year to €(99) million. The significant improvement resulted

from progress made on the operational side – in particular with cost optimization, lower reducing agent consumption, and an

increased focus on customer segments with stronger margin potential in North America. Further factors were a successful

drive to develop new customers at the Brazilian steel mill and in this connection a positive, non-period tax effect in the 2nd

quarter. Also, classification as a discontinued operation resulted in the absence of depreciation expenses for non-current

assets, which in the 1st half 2012/2013 would have come to €205 million; these were reported in the earnings of the prior-

year period in the amount of €174 million. However, the difficult business environment on the North American market meant

that earnings remained negative, mainly as a result of unsatisfactory price levels in service center business, which is

particularly important for the startup. Inefficient utilization of capacities also weighed on earnings.

Stainless Global (discontinued operation) The merger of the Stainless Global business area with the Finnish company Outokumpu was completed on December 28,

2012. In the 1st quarter 2012/2013 up to its exit from the Group, Stainless Global achieved order intake of €1.3 billion (1st

quarter 2011/2012: €1.4 billion), sales of €1.4 billion (1st quarter 2011/2012: €1.4 billion) and EBIT of €72 million (1st

quarter 2011/2012: €(321) million).

Following the disposal of Stainless Global, the Group holds a 29.9% financial interest in Outokumpu, which is accounted for in

accordance with the equity method. The shareholding is strategically and operationally unrelated to the continuing operations

and is therefore reported under Corporate; by definition its equity income is not attributable to financial income with an

operating character and is therefore not included in EBIT.

Interim Management Report 1st half 2012/2013 Results of operations and financial position 18

Results of operations and financial position

Analysis of the statement of income At €17,939 million, net sales from continuing operations in the 1st half 2012/2013 were €1,852 million or 9% lower than in

the corresponding prior-year period. Cost of sales from continuing operations decreased at a slightly higher rate by €1,621

million or 10%. The reduction was mainly due to a sales-related decline in material expense. Gross profit from continuing

operations decreased by €231 million to €2,772 million, while gross profit margin remained unchanged at 15%.

The main contributors to the €26 million rise in research and development cost from continuing operations were the Elevator

Technology and Steel Europe business areas.

Selling expenses from continuing operations decreased by €12 million, mainly due to lower expenses for sales-related freight

and insurance charges. General and administrative expenses from continuing operations decreased by €17 million, mainly

due to lower restructuring expenses.

The €26 million rise in other income was mainly the result of higher insurance recoveries as well as subsequent income in

connection with an old order in the Industrial Solutions business area.

Other expenses from continuing operations increased by €138 million. Higher allocations to provisions, in particular for

recognizable risks from claims for damages and fines anticipated in connection with the rail cartel, were partly offset by the

absence of goodwill impairment charges recognized in the prior-year period in connection with the sale of the civil operations

of Blohm + Voss.

Other gains and losses attributable to continuing operations were €40 million lower than a year earlier. This was mainly due

to the absence of the gains on the disposal of the Xervon group and the Brazilian Automotive Systems operations recognized

in the 1st half 2011/2012.

The €58 million reduction in financing income from continuing operations was caused mainly by lower exchange rate gains in

connection with finance transactions. The €92 million decrease in financing expense from continuing operations mainly

reflected exchange rate losses in connection with finance transactions and lower interest expense for accrued pension and

similar obligations.

The loss from continuing operations (before taxes) of €110 million resulted in a tax benefit from continuing operations of €66

million in the reporting period. A year earlier the effective tax charge was impacted by once-only effects from the disposal of

the civilian shipbuilding operations.

After taking into account income taxes, the loss from continuing operations came to €44 million.

The after-tax loss from discontinued operations decreased by €205 million to €778 million. This is mainly due to the absence

of the €515 million impairment charge for Stainless Global recognized in the prior-year period and the preliminary gain of

€146 million on the disposal of the stainless steel business to Outokumpu provisionally recognized in the reporting period

pending completion of the purchase price allocation in connection with the 29.9% share in Outokumpu. This was partly offset

by €447 million higher after-tax losses at Steel Americas as a result of the valuation adjustments made in the 2nd quarter

2012/2013.

Including the after-tax loss from discontinued operations, a net loss of €822 million was posted in the reporting period,

compared with a net loss of €1,067 million a year earlier.

Losses per share based on the net loss attributable to the shareholders of ThyssenKrupp AG decreased significantly year-on-

year by €0.82 to €1.21. Losses per share from continuing operations came to €0.12, down €0.12 from a year earlier.

Interim Management Report 1st half 2012/2013 Results of operations and financial position 19

Analysis of the statement of cash flows The amounts taken into account in the statement of cash flows correspond to the item "Cash and cash equivalents" as

reported in the statement of financial position and also include the cash and cash equivalents relating to the disposal groups

including the discontinued operations until the time of their actual sale. For the reporting period and the corresponding prior-

year period the discontinued operations comprise the activities of Steel Americas and Stainless Global.

In the 1st half 2012/2013 there was a net cash inflow from operating activities of €22 million, compared with a substantial

net cash outflow of €1,719 million the year before. Cash inflow from continuing operations amounted to €243 million, an

improvement of €1,375 million from the year before. This was mainly due to a considerable improvement in funds tied up in

inventories and trade accounts receivable and payable by altogether €1,186 million. In the discontinued operations, operating

cash flow improved by €366 million to €(221) million, due in particular to improved net earnings before depreciation and

deferred taxes.

Investing activities resulted in a net cash inflow of €264 million, compared with a cash outflow of €756 million a year earlier.

In the continuing operations there was a cash inflow of €462 million, compared with a cash outflow of €261 million in the

prior-year period. The main reason for the €723 million improvement was the disposal of the stainless steel business to

Outokumpu, which after taking into account the divested cash and cash equivalents resulted in proceeds of €916 million; this

was partly offset by the absence of the proceeds from the sale of the Xervon group and the Brazilian Automotive Systems

operations recognized in the year-earlier period. In the discontinued operations the cash outflow from investing activities was

€297 million lower, above all due to reduced capital expenditure for property, plant and equipment at Steel Americas.

Free cash flow, i.e. the sum of operating cash flows and cash flows from investing activities, in the continuing operations

improved significantly year-on-year by €2,098 million to €705 million. This was mainly the result of higher cash inflow from

operating activities and the disposal of the stainless steel business. In the discontinued operations negative free cash flow

was reduced substantially to €(419) million thanks to reduced cash outflows from operating activities and investing activities.

Overall, free cash flow thus came to €286 million.

Cash inflow from financing activities in the continuing operations was €1,283 million higher at €1,731 million. Of this change,

€600 million resulted from lower cash outflows in connection with the financing of discontinued operations. The increase also

reflects a €165 million rise in financial borrowings and €252 million reduction in profit distributions mainly as a result of the

absence of dividend payments by ThyssenKrupp AG in the reporting period. There was also a cash inflow from other

financing activities of €88 million, compared with a cash outflow of €169 million the year before. This €257 million change

was mainly due to significantly reduced repayments of liabilities to associated companies and lower transfers to the factoring

company of payments received from customers for already sold receivables. Cash inflow from financing activities of

discontinued operations decreased by €585 million; this mostly reflected the €410 million reduction in funds allocated to

Steel Americas under the Group financing system. Overall cash inflow from financing activities increased by €698 million to

€2,084 million.

Analysis of the statement of financial position Compared with September 30, 2012 total assets decreased by a total of €481 million to €37,803 million. This includes a

currency translation-related increase of €135 million, mainly due to movements in the US dollar exchange rate.

Non-current assets increased by €1,881 million. This sharp rise related mainly to two transactions resulting from the

combination of Stainless Global and the Finnish stainless steel producer Outokumpu implemented at the end of 2012. In this

connection ThyssenKrupp has a financial receivable outstanding against Outokumpu; this was the main reason for a €1,214

million increase in other non-current financial assets. In addition, ThyssenKrupp has a 29.9% share in the new company; this

resulted in particular in €466 million higher investments accounted for according to the equity method. Deferred tax assets

were €222 million higher, largely as a result of the increase in tax-deductible losses in Germany and abroad.

Current assets decreased by a significant €2,362 million. Currency translation effects caused a €124 million increase.

Interim Management Report 1st half 2012/2013 Results of operations and financial position / Subsequent events 20

Inventories stood at €6,434 million on March 31, 2013, negligibly higher than on September 30, 2012. Trade accounts

receivable were €158 million lower at €4,968 million. In particular this reflected reduced receivables in connection with long-

term construction contracts in the Industrial Solutions business area. The €157 million rise in current financial assets mainly

reflected advance payments for the procurement of inventories and other advance payments.

Of the steep €2,465 million increase in cash and cash equivalents, €705 million resulted from the positive free cash flow in

the reporting period – mainly due to a €1,000 million cash inflow from Outokumpu in connection with the disposal of the

stainless steel business at the end of December 2012 – and €2,108 million from an increase in net borrowings. This was

partly offset by cash outflows of €431 million in connection with the financing of discontinued operations.

Assets held for sale decreased by €4,902 million to €4,565 million. Of this sharp reduction, €4,383 million related to the

completed disposal of Stainless Global to Outokumpu. In addition, there was a decrease of altogether €537 million at Steel

Americas as a result of the valuation adjustments carried out in the 2nd quarter 2012/2013.

Total equity at March 31, 2013 was €3,575 million, down €951 million from September 30, 2012. The main factors were the

net loss of €822 million in the reporting period and the net actuarial losses from pensions and similar obligations (€90 million

after taxes) recognized in other comprehensive income. The equity ratio fell from 11.8% to 9.5%.

Non-current liabilities increased by a net €3,076 million. This was mainly due to a €2,816 million increase in non-current

financial debt, mostly as a result of the placement of a bond with a total volume of €1,600 million in the 2nd quarter

2012/2013 and €1,173 million higher liabilities to financial institutions. The €39 million rise in accrued pension and similar

obligations resulted mainly from the updated interest rates used for the revaluation of pension and healthcare obligations at

March 31, 2013, and allocations recognized in income; this was offset above all by outpayments. Other non-current

provisions at the end of the period take into account possible effects from requirements under merger control law in

connection with the disposal of the stainless steel business to Outokumpu.

Current liabilities decreased overall by €2,606 million. Current provisions for employee benefits decreased by €58 million,

mainly due to utilization. The €191 million increase in other current provisions related in particular to recognizable risks from

claims for damages and anticipated fines in connection with the rail cartel. Current financial debt was €694 million lower,

mainly due to the repayment of a bond in February 2013.

Trade accounts payable were €99 million lower, mainly due to reductions in the Materials Services business area. Other

current financial liabilities decreased by €40 million, mainly due to lower interest amounts payable. The €521 million rise in

other current non-financial liabilities was mostly caused by higher advance payments and obligations for subsequent

production costs.

Liabilities associated with assets held for sale decreased by €2,381 million to €1,533 million, primarily due to the

aforementioned disposal of Stainless Global to Outokumpu in December 2012 (€2,323 million). In addition, reductions of €46

million in the Steel Americas business area were the result of continuing business operation.

Subsequent events

Subsequent events between the end of the 1st half reporting period (March 31, 2013) and the date of authorization for

issuance (May 10, 2013) are presented in Note 14 to the interim financial statements.

Interim Management Report 1st half 2012/2013 ThyssenKrupp stock / Rating 21

ThyssenKrupp stock

The value potential of our integrated strategic development program is currently an important factor in decisions to invest in

ThyssenKrupp’s stock. The progress achieved in implementing our Strategic Way Forward therefore had a major impact on

the stock’s performance; for much of the reporting period it outperformed the DAX and DJ STOXX indices. In particular after

the announcement of the personnel changes on the Executive Board and Supervisory Board and the completion of the sale of

the stainless steel business, the capital market responded positively to the signs of rapid cultural transformation and the

changes in the portfolio which will play an important role in significantly improving our future earning power.

However, towards the end of the 2nd quarter investors’ attention was drawn more strongly to potential balance sheet risks

arising from the implementation of necessary structural measures under our strategic development program. In addition,

compliance risks which cannot yet be reliably assessed weighed on the stock’s performance.

On March 28, 2013 at the end of the reporting period ThyssenKrupp’s share price stood at €15.87, 4% lower than on

September 30, 2012. In the same period the DAX and DJ STOXX indices gained 8% and over 10% respectively.

Rating

We have been rated by Moody’s and Standard & Poor’s since 2001 and by Fitch since 2003. In January 2013 Moody’s

lowered ThyssenKrupp’s rating from Baa3 to Ba1. At Standard & Poor’s and Moody’s our rating is therefore below investment

grade. However, Fitch confirmed our investment grade rating in December 2012 with a negative outlook. A negative outlook

means that the rating agency monitors the rating more closely and then reviews it, normally within a period of 12-18 months.

As a result of the downgrading of our rating the Group’s contractually fixed financing costs, mainly in connection with the

2009/2014 bond, will increase by a low two-digit million euro amount from June 2013.

Long-term rating

Short-term rating Outlook

Standard & Poor's BB B negative Moody's Ba1 Not Prime negative Fitch BBB- F3 negative

Interim Management Report 1st half 2012/2013 Innovations / Employees 22

Innovations

The innovative powers of our engineers are mainly focused on developing new products and services. But improving existing

products and processes is also of great importance for securing and expanding our market positions. The two examples

below show how product and process innovations deliver increased value for our customers.

Production of high-quality slewing bearings Slewing bearings from ThyssenKrupp have been used in wind turbines around the world for many years. The high quality of

these bearings is essential for smooth operation, especially in offshore installations. Our engineers have come up with a

technical innovation that improves the quality of these bearings and extends their service life. Previously, an unhardened

zone in the bearing raceway which occurs for technical reasons during the surface hardening process was treated by hand;

this job has now been automated and is performed by robots.

Improving the energy efficiency of escalators Escalator drive systems are generally designed to handle full passenger loads, and in these situations they display almost optimum

efficiency. But in real life, traffic loads vary. For example, subway escalators transport people intermittently, and department store

escalators often carry just one passenger. So it makes sense to tailor drive concepts to requirements. Our escalator experts have

developed a smart frequency converter to improve efficiency in partial-load operation when there are only a few people on the

escalator. Drive power is adjusted in line with passenger numbers, significantly reducing overall power consumption and even

permitting energy recovery in downward operation. On customer request, intermittent operation can be optimized with a start and

stop function.

Employees

On March 31, 2013 ThyssenKrupp employed 151,405 people in its continuing operations, 3,346 or 2.2% fewer than a year

earlier. As a result of restructuring measures and disposals in connection with the strategic portfolio optimization, employee

numbers decreased particularly in the Components Technology, Materials Services and Steel Europe business areas. By

contrast, the headcount increased in the Elevator Technology and Industrial Solutions business areas, where new employees

were recruited above all in Asia as well as in North, Central and South America. At the end of March 2013, Elevator

Technology employed 1,655 more people in these regions than a year earlier.

Compared with September 30, 2012, the number of employees in the continuing operations decreased by 718 or 0.5%. In

Germany the headcount fell by 538 or 0.9% to 57,909; its share in the total workforce was 38.3%. At the end of March 2013,

20.1% of all employees were based in Europe outside Germany, 12.5% in North and Central America, 12.3% in South

America, 16.0% in the Asia/Pacific region – especially China and India – and 0.8% in Africa.

Including Steel Americas, ThyssenKrupp employed 155,473 people worldwide on March 31, 2013, a year-on-year decrease

of 15,307 or 9.0%. Compared with September 30, 2012, the headcount was lower by 12,488 or 7.4%.

Interim Management Report 1st half 2012/2013 Compliance 23

Compliance

In the reporting period we continued to rigorously apply our compliance program – with the three pillars “inform”, “identify”

and “report and act” – throughout the Company, focusing mainly on prevention. Measures in the “identify” pillar were

dominated by the ongoing official investigation into the so-called rail cartel as well as the ongoing antitrust investigation into

ThyssenKrupp Steel Europe AG; more information on economic risks from this investigation is provided in the section

“Opportunities and risks”. In response to these renewed antitrust allegations, in March 2013 the Executive Board of

ThyssenKrupp AG decided to further intensify the Group’s compliance efforts. Based on the existing compliance program on

anti-corruption policy and competition law, the following three measures are being implemented under the direction of the

Chief Compliance Officer:

In parallel with our internal investigations into the steel antitrust case, our compliance work is being widened with external

support from the law firm Noerr and other external partners. This is the Executive Board’s response to the fact that despite

significant and intensive compliance measures a number of serious compliance violations have been uncovered in the

Group in recent times.

As a further supporting measure and in keeping with the cultural change initiated by the Executive Board, a temporary

amnesty program has been introduced for certain employees which will run until June 15, 2013. The aim of the amnesty

program is to receive reliable information from within the Group’s own ranks to allow compliance cases from the past to

be cleared up. For employees who disclose compliance matters voluntarily, truthfully and fully and who cooperate with the

company in investigating them, the company promises that it will not unilaterally terminate their employment or

assert/enforce damage claims, even if they themselves have committed violations of the compliance program or the

underlying laws in the past. The amnesty program represents a clear cut-off point for the Group and all employees; any

compliance violations discovered after the program ends will be dealt with rigorously and credibly in line with the Group’s

policy of zero tolerance.

Furthermore, the compliance program will be extended to include the function of an ombudsman. Dr. Dietrich Max, a

lawyer from the law firm Taylor Wessing, Düsseldorf, took on the role of compliance ombudsman for ThyssenKrupp on

April 15, 2013. In addition to supervisors, compliance officers and the whistleblower hotline, employees wishing to report

possible compliance violations can now also contact the ombudsman on behalf of ThyssenKrupp.

These measures will improve ThyssenKrupp’s compliance program on anti-corruption policy and competition law. Internal

and external examinations have verified that the program complies with legal requirements. In November 2011 it was

certified by KPMG as appropriately implemented and effective in accordance with the IDW PS 980 standard of the German

Institute of Public Auditors (IDW).

In the investigation into the so-called rail cartel launched by the Federal Cartel Office in May 2011, the first part of the

investigation – relating to rails for German rail operator Deutsche Bahn – was concluded in early July 2012 with a mutually

agreed settlement. ThyssenKrupp paid a fine of €103 million to the Federal Cartel Office. Investigations are still ongoing in

two other areas – turnouts and the so-called private market, i.e. business activities with transport operators and industrial

enterprises. In addition to the risk of further fines, ThyssenKrupp also faces claims for damages from customers. For this

reason ThyssenKrupp has set aside provisions to cover the risk of expected further fines and damages claims. More

information is provided in Note 6 to the interim financial statements.

Interim Management Report 1st half 2012/2013 Macro and sector environment 24

Macro and sector environment

General economic environment remains weak The economic environment remains extremely weak. Global economic growth slowed further in 2012. The pace of growth

slipped particularly in the final quarter, and according to current estimates the 1st quarter 2013 will show little improvement.

Global GDP is expected to expand by 3.1% in 2013, virtually unchanged from the prior year (3.0%). There continue to be

significant differences in growth between the industrialized and the emerging countries.

The industrialized nations recorded GDP growth of only 1.4% in 2012; this is expected to decline further to 1.2% in 2013.

High sovereign debt, the need for fiscal consolidation, and cautious business spending are hampering growth in particular in

the euro zone. Overall economic output fell in the 4th quarter 2012 and at the beginning of 2013. After a 0.6% decrease in

2012, GDP in the euro zone is expected to decline by a further 0.4% in 2013. The recessionary trend is particularly strong in

the southern member states. The German economy is expected to achieve moderate growth after slowing in the winter half-

year. Following 0.7% expansion in 2012, Germany’s GDP is forecast to increase by 1.0% in 2013, mainly due to continued

high consumer spending.

The US economy cooled in the final quarter of 2012, weighed down in particular by the uncertainties surrounding fiscal con-

solidation. Rising consumer and business spending is expected to contribute to growth of 1.9% in 2013, following a 2.2%

increase in the prior year. In Japan, impetus from the rebuilding process after the natural disaster is slowing, so lower GDP

growth of 1.0% is forecast after 2.0% expansion in 2012.

In the emerging countries, the hitherto mainly high pace of expansion has slowed somewhat recently. GDP growth in these

countries fell to 5.0% overall in 2012, in part due to the flat economy in Europe. Thanks to improved economic activity in

some countries of Latin America and Asia, growth will accelerate slightly to 5.2% in 2013. Stimulus will come from China and

India, where growth will quicken again – in China from 7.8% last year to 8.0% this, and in India from 5.0% to 6.0%.

Interim Management Report 1st half 2012/2013 Macro and sector environment 25

Situation in the sectors mixed Automotive – The automotive sector remains on an upward trajectory, especially in North America and China. In the USA,

year-on-year sales of cars and light trucks rose by 10% to 3.6 million in the 4th quarter 2012, and by 6% to 3.7 million

vehicles in the 1st quarter 2013. In China, demand for cars climbed by 16% to 4.1 million units in the final quarter of 2012,

and by 11% to 4.3 million vehicles in the 1st quarter 2013. By contrast, new registrations in the European Union were down

10% year-on-year to 2.7 billion cars in the final quarter of 2012, and sales in the 1st quarter 2013 fell 10% to 3.0 million

vehicles. Sales figures decreased particularly sharply in the southern EU countries. The German auto market has also been in

decline since mid-2012. In the 1st quarter 2013 alone, new registrations decreased year-on-year by 13% to 674,000 cars. As

exports declined by 9% in the same period, automotive output fell by 11%.

Following a 7% increase in global auto production to 79.0 million cars and light trucks in 2012, more vehicles are once again

forecast to roll off the production lines in 2013; we expect growth of just under 2% to 80.4 million units. The regional picture

remains very mixed. Output in China is expected to increase by 9%. In the USA, the strong prior-year growth will slow to just

under 6%. Brazilian auto production will pick up pace and grow by over 4%. Following catch-up effects last year, Japanese

car output will fall again by 4%. The vehicle market in Western Europe will weaken further. With demand subdued, output will

be 2% down from the already very low prior-year volume. Automobile production in Germany is also forecast to slip by

around 2%.

SITUATION ON IMPORTANT SALES MARKETS

2012 2013* Vehicle production, million cars and light trucks

World 79.0 80.4

Westeuropa/Türkei 13.7 13.4

Germany 5.6 5.5

USA 10.1 10.7

Japan 9.4 9.0

China 17.3 18.9

Brazil 3.1 3.3

Machinery production, real, in % versus prior year

Germany 0.9 0.0

USA 7.1 6.0

Japan (9.4) 2.0

China 11.4 12.0

Construction output, real, in % versus prior year

Germany (1.3) 1.0

USA 1.1 3.2

China 8.8 10.3

India 7.4 6.7

Demand for finishes steel, million tons

World 1,413 1,454

Germany 38 38

USA 97 99

China 646 669

* Forecast

Machinery – The machinery industry also shows a mixed regional picture. China continues to achieve double-digit growth

rates of 11% in 2012 and a forecast 12% in 2013. The US machinery sector is benefiting from higher business spending and

the positive effects of low gas prices. Accordingly, US machinery output increased by 7% last year and will expand by a

further 6% in 2013. Following a sharp decline in 2012, the Japanese machinery sector is expected to return to moderate

growth this year. By contrast, machinery output in many EU countries will continue to decline in 2013.

German machinery manufacturers increased their output by just under 1% in 2012, but only thanks to a high order backlog

from the prior year. Although orders in the 4th quarter 2012 were slightly higher year-on-year, they failed to improve further

in the first three months of 2013 – while foreign orders remained at the year-earlier level, domestic orders decreased.

Elevators and escalators fared better than the machinery sector as a whole; demand from foreign customers in particular rose

strongly. Orders in Germany’s plant construction sector declined appreciably in 2012, and there is not expected to be any

broad recovery in demand in 2013. With the economic situation hampering capital spending in many countries, we expect

production in Germany’s export-oriented machinery sector to remain unchanged in 2013.

Interim Management Report 1st half 2012/2013 Macro and sector environment / Opportunities and risks 26

Construction – The situation in the construction sector varies sharply from region to region. In the euro zone, construction

output slipped by more than 4% in 2012 as a result of the overall economic situation. There were particularly strong declines

in the southern European countries. Construction activity in the euro zone is expected to slow by a further 2% in 2013. The

German construction sector performed comparatively better. Boosted by good demand for housing construction, which

benefited from favorable financing conditions, building output was down by only 1% in 2012. With prospects for commercial

and public-sector building orders also improving, German construction activity is expected to achieve slight growth of 1% in

2013.

There were positive developments in the construction sector in the USA and in the emerging countries. In the USA, the worst

of the real estate crisis is now over and housing construction and property prices are picking up again. Following a lengthy

recession, construction output increased by 1% in 2012, with 3% growth forecast for 2013. Building activity remains strong

in India and China. In India, construction output will expand by around 7% p.a. in 2012 and 2013. China is expected to report

growth of 10% this year following a 9% improvement in 2012.

Flat carbon steel – Demand on the European flat carbon steel market recovered in the final quarter of 2012. Steel processors

and distributors started cautiously replenishing their stocks. This was done to plug specific gaps in supply, but there were no

signs of a stronger restocking trend. At the same time prices on the spot market recovered, primarily due to a significant rise

in iron ore prices. This moderate upward trend continued in the first few months of 2013, although orders received by

European steel producers were still significantly lower year-on-year. Shipments to the EU market also fell short of the prior-

year volumes. Towards the end of the 1st quarter 2013, volumes and prices came under pressure again. The US flat carbon

steel market was weaker than expected, with lower year-on-year demand in the 1st quarter 2013. As a result of continued

high supply and aggressive pricing, steel prices in the USA – which had also risen previously – started to slip again from

February 2013.

With the global economy recovering only slowly, the prospects for the finished steel market remain subdued overall. For the

EU market, we forecast that steel demand in 2013 will at best stabilize at the prior-year level of around 140 million tons.

Demand in Germany could improve slightly. In the USA, steel market growth will slow to just under 3%. Global demand for

finished steel will rise by around 3% in 2013 to 1.45 billion tons. As previously, this will mainly be driven by the emerging

countries of Asia and Latin America. However, demand growth in those countries – as already the case in 2012 – will

continue to be far lower than in earlier years. This goes in particular for China, where growth of 3.5% is forecast for 2013.

Opportunities and risks

Opportunities The global markets present ThyssenKrupp as a diversified industrial group with good opportunities to successfully market its

innovative and resource-friendly products and processes, and in particular to achieve growth with our elevator and project

businesses in the emerging countries. By systematically pursuing our corporate program impact we are aiming to improve

productivity on a sustainable basis and contribute to value enhancement in all areas of the Group. The strategic, operating

and performance-related opportunities presented in detail on pages 98-100 of our 2011/2012 Annual Report remain valid.

Interim Management Report 1st half 2012/2013 Opportunities and risks 27

Risks We see economic risks for ThyssenKrupp if the global economy does not continue to recover and the pace of growth also

slows in the emerging economies. We monitor and continuously assess economic developments – including the unsolved

debt crises in particular in the euro zone – to understand the consequences for our worldwide market prospects and enable

us to respond quickly to new developments. We use our risk management system to ensure that there are no risks that could

threaten the Group’s ability to continue as a going concern.

ThyssenKrupp manages its liquidity and credit risks proactively. The Group’s financing and liquidity remain on a secure foun-

dation in fiscal 2012/2013. At March 31, 2013 the Group had €8.0 billion in cash, cash equivalents and undrawn committed

credit lines.

Credit risks (default risks) arise from the fact that the Group is exposed to possible default by a contractual party in relation to

financial instruments, e.g. money investments. In times of crisis default risks take on additional significance; we manage

them with particular care as part of our business policy. Financial instruments used for financing are traded with specified risk

limits only with counterparties who have very good credit standing and/or who are members of a deposit guarantee scheme.

Further financial risks such as currency, interest rate and commodity price risks are reduced by the use of derivative financial

instruments. Restrictive principles regarding the choice of counterparties also apply to the use of these financial instruments.

In addition to the economic uncertainties, the market environment for the European steel industry is becoming increasingly

difficult, in particular as a result of significantly lower consumption, high raw material and energy prices, CO2 allowance

trading, and Russia’s accession to the WTO. The “Best in Class – reloaded” integrated optimization program has been

launched to counter the volume and price risks with the goal of improving the position of the Group’s European steel

operations in a difficult market environment and achieving a return to the earnings, cash flow, value added and competitive

profile required of all Group businesses under the strategic development program.

With regard to the sale process for the Steel Americas business area (discontinued operation) we remain focused on signing

a deal promptly. Until the disposal of Steel Americas is completed, the Group continues to take into account risks in particular

on the sales and procurement markets, from exchange rate fluctuations, and in connection with the ramp-up and operation of

facilities and production stages.

ThyssenKrupp’s position as a diversified industrial group with leading engineering competencies reduces sales risks from

dependency on individual markets and sectors. In addition, we complement our good and long-standing relationships with

our existing customers with the active strategic development of customers and markets, in particular in the fast-growing

emerging economies.

Following the disposal of Stainless Global, ThyssenKrupp remains exposed to risks from its 29.9% shareholding in

Outokumpu and the vendor loans granted in the transaction. In addition to the usual stainless steel market risks and

fluctuating raw material prices, these are mainly risks associated with the existing overcapacities in Europe as well as import

and price pressure from Asia.

Political events, especially in the world’s crisis regions, can result in country-specific risks for our activities. We monitor and

assess current developments continuously so that if required we can respond quickly to any deterioration in conditions.

New laws and other changes in the legal framework at national or international level could entail risks for our business

activities if they lead to higher costs or other disadvantages for ThyssenKrupp compared with our competitors. We support

the related discussion process and reduce the corresponding risks through close working contacts with the relevant

institutions.

Acting on an anonymous tip-off, the German Cartel Office is investigating ThyssenKrupp Steel Europe AG and other

companies based on an initial suspicion of price fixing for specific steel supplies to the German automotive industry and its

suppliers in a period dating back to 1998. ThyssenKrupp has launched its own investigation into the allegations with the

support of external lawyers which also includes findings from the amnesty program. More information on the amnesty

Interim Management Report 1st half 2012/2013 Opportunities and risks 28

program is provided in the “Compliance” section. Our internal investigation and the investigations by the Federal Cartel Office

are still ongoing. Significant risks for the Group’s asset, financial and earnings situation cannot be ruled out at present.

Beyond this, the detailed information contained in the risk report on pages 100-112 of our 2011/2012 Annual Report is still

valid.

We report on pending lawsuits, claims for damages and other risks in Note 6.

Condensed Interim Financial Statements 1st half 2012/2013 Consolidated statement of financial position 29

ThyssenKrupp AG Consolidated statement of financial position

ASSETS MILLION €

Note Sept. 30, 2012 March 31, 2013

Intangible assets 4,291 4,283

Property, plant and equipment 6,053 5,991

Investment property 283 277

Investments accounted for using the equity method 647 1,113

Other financial assets 85 1,299

Other non-financial assets 219 274

Deferred tax assets 1,479 1,701

Total non-current assets 13,057 14,938

Inventories, net 6,367 6,434

Trade accounts receivable 5,126 4,968

Other financial assets 289 316

Other non-financial assets 1,656 1,813

Current income tax assets 101 83

Cash and cash equivalents 2,221 4,686

Assets held for sale 02 9,467 4,565

Total current assets 25,227 22,865

Total assets 38,284 37,803

EQUITY AND LIABILITIES MILLION €

Note Sept. 30, 2012 March 31, 2013

Capital stock 1,317 1,317

Additional paid in capital 4,684 4,684

Retained earnings (2,912) (3,645)

Cumulative other comprehensive income 470 482

thereof relating to disposal groups/discontinued operations (Sept. 30, 2012: 190; March 31, 2013: 200)

Equity attributable to ThyssenKrupp AG's stockholders 3,559 2,838

Non-controlling interest 967 737

Total equity 4,526 3,575

Accrued pension and similar obligations 04 7,708 7,747

Provisions for other employee benefits 235 243

Other provisions 557 749

Deferred tax liabilities 32 59

Financial debt 5,256 8,072

Other financial liabilities 1 2

Other non-financial liabilities 8 1

Total non-current liabilities 13,797 16,873

Provisions for employee benefits 276 218

Other provisions 1,032 1,223

Current income tax liablilities 349 303

Financial debt 1,929 1,235

Trade accounts payable 3,514 3,415

Other financial liabilities 848 808

Other non-financial liabilities 8,099 8,620

Liabilities associated with assets held for sale 02 3,914 1,533

Total current liabilities 19,961 17,355

Total liabilities 33,758 34,228

Total equity and liabilities 38,284 37,803

See accompanying selected notes.

Condensed Interim Financial Statements 1st half 2012/2013 Consolidated statement of income 30

ThyssenKrupp AG Consolidated statement of income MILLION €, EARNINGS PER SHARE IN €

Note

1st half ended

March 31, 2012*

1st half ended

March 31, 2013

2nd quarter ended

March 31, 2012*

2nd quarter ended

March 31, 2013

Net sales 09 19,791 17,939 10,195 9,102

Cost of sales 10 (16,788) (15,167) (8,679) (7,716)

Gross profit 3,003 2,772 1,516 1,386

Research and development cost (97) (123) (51) (67)

Selling expenses (1,325) (1,313) (674) (667)

General and administrative expenses (984) (967) (492) (485)

Other income 81 107 36 62

Other expenses (162) (300) (28) (273)

Other gains/(losses) 59 19 (2) 18

Income/(loss) from operations 575 195 305 (26)

Income/(expense) from companies accounted for using the equity method 11 12 (3) 5 (14)

Finance income 265 207 (28) 108

Finance expenses (601) (509) (133) (244)

Financial income/(expense), net (324) (305) (156) (150)

Income/(loss) before income taxes 251 (110) 149 (176)

Income tax (expense)/income (335) 66 (287) 99

Loss from continuing operations (net of tax) (84) (44) (138) (77)

Discontinued operations (net of tax) 02 (983) (778) (449) (775)

Net loss (1,067) (822) (587) (852)

Attributable to:

ThyssenKrupp AG's stockholders (1,047) (621) (587) (656)

Non-controlling interest (20) (201) 0 (196)

Net loss (1,067) (822) (587) (852)

Basic and diluted earnings per share 12

Loss from continuing operations (attributable to ThyssenKrupp AG's stockholders) (0.24) (0.12) (0.32) (0.18)

Net loss (attributable to ThyssenKrupp AG's stockholders) (2.03) (1.21) (1.14) (1.28)

See accompanying selected notes. * Prior year figures have been adjusted (see in particular Note 2).

Condensed Interim Financial Statements 1st half 2012/2013 Consolidated statement of comprehensive income 31

ThyssenKrupp AG Consolidated statement of comprehensive income MILLION €

1st half ended

March 31, 2012

1st half ended

March 31, 2013

2nd quarter ended

March 31, 2012

2nd quarter ended

March 31, 2013

Net loss (1,067) (822) (587) (852)

Items of other comprehensive income that will not be reclassified to profit or loss in future periods:

Actuarial gains/(losses) from pensions and similar obligations

Change in actuarial gains/(losses), net (434) (129) (64) 16

Tax effect 130 39 19 (5)

Net actuarial gains/(losses) from pensions and similar obligations (304) (90) (45) 11

Gains/(losses) resulting from asset ceiling

Change in gains/(losses), net (4) (8) (12) (6)

Tax effect 1 2 3 2

Net gains/(losses) resulting from asset ceiling (3) (6) (9) (4)

Share of unrealized gains/(losses) of investments accounted for using the equity-method (2) (20) 1 (14)

Subtotal of items of other comprehensive income that will not be reclassified to profit or loss in future periods: (309) (116) (53) (7)

Items of other comprehensive income that will be reclassified to profit or loss in future periods:

Foreign currency translation adjustment

Change in unrealized gains/(losses), net 157 18 (177) 200

Net realized (gains)/losses (8) 15 (1) 0

Net unrealized gains/(losses) 149 33 (178) 200

Unrealized gains/(losses) from available-for-sale financial assets

Change in unrealized gains/(losses), net 1 0 1 0

Net realized (gains)/losses 0 0 0 0

Tax effect 0 0 0 0

Net unrealized gains/(losses) 1 0 1 0

Unrealized (losses)/gains on derivative financial instruments

Change in unrealized gains/(losses), net 23 (14) (53) 7

Net realized (gains)/losses (3) 2 2 (2)

Tax effect (5) 4 14 (1)

Net unrealized gains/(losses) 15 (8) (37) 4

Share of unrealized gains/(losses) of investments accounted for using the equity-method 1 5 (12) 12

Subtotal of items of other comprehensive income that will be reclassified to profit or loss in future periods: 166 30 (226) 216

Other comprehensive income (143) (86) (279) 209

Total comprehensive income (1,210) (908) (866) (643)

Attributable to:

ThyssenKrupp AG's stockholders (1,208) (725) (824) (488)

Non-controlling interest (2) (183) (42) (155)

Total comprehensive income attributable to ThyssenKrupp AG's stockholders refers to:

Continuing operations (342) (166) (325) 31

Discontinued operations (866) (559) (499) (519)


Condensed Interim Financial Statements 1st half 2012/2013 Consolidated statement of changes in equity 32

ThyssenKrupp Consolidated statement of changes in equity MILLION € (EXCEPT NUMBER OF SHARES)

Number of shares

outstanding

Equity attributable to ThyssenKrupp AG's stockholders

Non-controlling

interest Total

equity

Cumulative other comprehensive income

Capital stock

Additional paid

in capital Retained earnings

Foreign currency

translation adjustment

Available-for-sale financial

assets

Derivative financial

instruments

Share of investments

accounted for using the

equity method Total

Balance as of Sept. 30, 2011 514,489,044 1,317 4,684 2,833 170 2 (22) 28 9,012 1,370 10,382

Net loss (1,047) (1,047) (20) (1,067)

Other comprehensive income (309) 133 1 13 1 (161) 18 (143)

Total comprehensive income (1,356) 133 1 13 1 (1,208) (2) (1,210)

Profit attributable to non-controlling interest 0 (48) (48)

Dividend payment (232) (232) 0 (232)

Other changes (10) (10) (10) (20)

Balance as of March 31, 2012 514,489,044 1,317 4,684 1,235 303 3 (9) 29 7,562 1,310 8,872

Balance as of Sept. 30, 2012 514,489,044 1,317 4,684 (2,912) 463 7 (32) 32 3,559 967 4,526

Net loss (621) (621) (201) (822)

Other comprehensive income (116) 21 0 (14) 5 (104) 18 (86)

Total comprehensive income (737) 21 0 (14) 5 (725) (183) (908)

Profit attributable to non-controlling interest 0 (28) (28)

Other changes 4 4 (19) (15)

Balance as of March 31, 2013 514,489,044 1,317 4,684 (3,645) 484 7 (46) 37 2,838 737 3,575


Condensed Interim Financial Statements 1st half 2012/2013 Consolidated statement of cash flows 33

ThyssenKrupp Consolidated statement of cash flows MILLION €

1st half ended

March 31, 2012*

1st half ended

March 31, 2013

2nd quarter ended

March 31, 2012*

2nd quarter ended

March 31, 2013

Net loss (1,067) (822) (587) (852)

Adjustments to reconcile net loss to operating cash flows:

Discontinued operations (net of tax) 983 778 449 775

Deferred income taxes, net 29 (283) 116 (197)

Depreciation, amortization and impairment of non-current assets 693 489 269 247

Reversals of impairment losses of non-current assets (1) (1) 0 (1)

(Income)/loss from companies accounted for using the equity method, net of dividends received (11) 2 (5) 14

(Gain)/loss on disposal of non-current assets, net (62) (19) 0 (17)

Changes in assets and liabilities, net of effects of acquisitions and divestitures and other non-cash changes:

- inventories (331) (93) 278 160

- trade accounts receivable (409) 166 (526) (325)

- accrued pension and similar obligations (140) (120) (59) (42)

- other provisions (170) 328 (39) 209

- trade accounts payable (461) (88) 86 126

- other assets/liabilities not related to investing or financing activities (185) (94) 213 68

Operating cash flows - continuing operations (1,132) 243 195 165

Operating cash flows - discontinued operations (587) (221) (99) (3)

Operating cash flows - total (1,719) 22 96 162

Purchase of investments accounted for using the equity method and non-current financial assets (18) (1) (8) (1)

Expenditures for acquisitions of consolidated companies net of cash acquired (39) (6) 0 (5)

Capital expenditures for property, plant and equipment (inclusive of advance payments) and investment property (431) (467) (215) (220)

Capital expenditures for intangible assets (inclusive of advance payments) (72) (47) (23) (19)

Proceeds from disposals of investments accounted for using the equity method and non-current financial assets 1 1 1 0

Proceeds from disposals of previously consolidated companies net of cash acquired 263 929 (27) 10

Proceeds from disposals of property, plant and equipment and investment property 28 52 14 39

Proceeds from disposals of intangible assets 7 1 0 0

Cash flows from investing activities - continuing operations (261) 462 (258) (196)

Cash flows from investing activities - discontinued operations (495) (198) (259) (41)

Cash flows from investing activities - total (756) 264 (517) (237)

Proceeds from issuance of bonds 1,250 1,600 1,250 1,600

Repayment of bonds 0 (1,000) 0 (1,000)

Proceeds from liabilities to financial institutions 1,738 1,880 853 195

Repayments of liabilities to financial institutions (1,050) (530) (805) (151)

Proceeds from/(repayments on) notes payable and other loans 4 162 (147) (113)

Increase/(decrease) in bills of exchange 1 (4) (2) 0

Decrease in current securities 0 1 0 0

Payment of ThyssenKrupp AG dividend (232) 0 (232) 0

Profit attributable to non-controlling interest (48) (28) (28) (15)

Expenditures for acquisitions of shares of already consolidated companies (15) (7) 0 (7)

Financing of discontinued operations (1,031) (431) (293) (81)

Other financing activities (169) 88 99 14

Cash flows from financing activities - continuing operations 448 1,731 695 442

Cash flows from financing activities - discontinued operations 938 353 292 43

Cash flows from financing activities - total 1,386 2,084 987 485

Net increase/(decrease) in cash and cash equivalents - total (1,089) 2,370 566 410

Effect of exchange rate changes on cash and cash equivalents - total 46 16 (15) 53

Cash and cash equivalents at beginning of reporting period - total 3,568 2,347 1,974 4,270

Cash and cash equivalents at end of reporting period - total 2,525 4,733 2,525 4,733

[thereof cash and cash equivalents within disposal groups] [-] [-] [-] [-]

[thereof cash and cash equivalents within discontinued operations] [28] [47] [28] [47]

Additional information regarding cash flows of continuing operations from interest, dividends and income taxes which are included in operating cash flows:

Interest received 78 55 40 26

Interest paid (256) (305) (215) (266)

Dividends received 4 3 2 1

Income taxes paid (134) (157) (86) (55)

See Note 13 of accompanying selected notes. * Prior year figures have been adjusted (see in particular Note 2).

Condensed Interim Financial Statements 1st half 2012/2013 Selected notes 34

ThyssenKrupp AG

Selected notes

Corporate information ThyssenKrupp Aktiengesellschaft (“ThyssenKrupp AG” or “Company”) is a

publicly traded corporation domiciled in Duisburg and Essen in Germany.

The condensed interim consolidated financial statements of ThyssenKrupp

AG and subsidiaries, collectively the “Group”, for the period from October

01, 2012 to March 31, 2013, were authorized for issue in accordance with

a resolution of the Executive Board on May 10, 2013.

Basis of presentation The accompanying Group’s condensed interim consolidated financial

statements have been prepared in accordance with section 37w of the

German Securities Trading Act (WpHG) and International Financial

Reporting Standards (IFRS) and its interpretations adopted by the

International Accounting Standards Board (IASB) for interim financial

information effective within the European Union. Accordingly, these

financial statements do not include all of the information and footnotes

required by IFRS for complete financial statements for year-end reporting

purposes.

The accompanying Group’s condensed interim consolidated financial

statements have been reviewed. In the opinion of Management, the

interim financial statements include all adjustments of a normal and

recurring nature considered necessary for a fair presentation of results for

interim periods. Results of the period ended March 31, 2013, are not

necessarily indicative for future results.

The preparation of condensed interim financial statements in conformity

with IAS 34 Interim Financial Reporting requires Management to make

judgements, estimates and assumptions that affect the application of

policies and reported amounts of assets and liabilities, income and

expenses. Actual results may differ from these estimates.

The accounting principles and practices as applied in the condensed

interim consolidated financial statements correspond to those pertaining

to the most recent annual consolidated financial statements. A detailed

description of the accounting policies is published in the notes to the

consolidated financial statements of our annual report 2011/2012.

Recently adopted accounting standards In fiscal year 2012/2013, ThyssenKrupp adopted the following

amendments:

In June 2011 the IASB issued amendments to IAS 1 “Presentation of

Financial Statements” under the title “Presentation of Items of Other

Comprehensive Income”. The amendments require a classification of

items presented in other comprehensive income into items that might

subsequently be reclassified to the income statement and items that will

not. The amendments to IAS 1 are compulsory for fiscal years beginning

on or after July 01, 2012. The adoption of the amendments did not have a

material impact on the Group’s consolidated financial statements.

Recently issued accounting standards In fiscal year 2012/2013, the following amendments to already existing

standards have been issued which must still be endorsed by the EU before

they can be adopted:

In October 2012 the IASB issued “Investment Entities” as amendments to

IFRS 10, IFRS 12 and IAS 27 regarding the accounting of investment

entities. The amendments define investment entities and provide an

exception to the general consolidation requirements of subsidiaries in

IFRS 10; instead of consolidating those subsidiaries are measured at fair

value through profit or loss. In addition the amendments set out disclosure

requirements for investment entities. The amendments are effective for

fiscal years beginning on or after January 01, 2014, while earlier

application is permitted. Currently, Management does not expect the

amendments – if endorsed by the EU in the current version – to have any

relevance for the Group’s consolidated financial statements.

01 Acquisitions and disposals After the disposal of the Stainless Global business area had been initiated

as part of the program for the further strategic development as of

September 30, 2011, the transaction was completed with the combination

with the Finnish company Outokumpu on December 28, 2012. This

disposal as well as other smaller disposals that are, on an individual basis,

immaterial affected in total, based on the values as of the respective

disposal date, the Group’s consolidated financial statements as presented

below:


MILLION €

1st half ended

March 31, 2013

Goodwill 2

Other intangible assets 27

Property, plant and equipment 1,813

Investment property 12

Investments accounted for using the equity method 19

Other financial assets 2

Other non-financial assets 25

Deferred tax assets 87

Inventories 1,801

Trade accounts receivable 555

Other current financial assets 59

Other current non-financial assets 89

Current income tax assets 17

Cash and cash equivalents 85

Total assets disposed of 4,593

Accrued pension and similar obligations 351

Provisions for other non-current employee benefits 25

Other non-current provisions 106

Deferred tax liabilities 87

Non-current financial debt 39

Other non-current non-financial liabilities 1

Provisions for current employee benefits 3

Other current provisions 63

Current income tax liablilities 3

Current financial debt 137

Trade accounts payable 1,221

Other current financial liabilities 2,345

Other current non-financial liabilities 128

Total liabilities disposed of 4,509

Net assets disposed of 84

Cumulative other comprehensive income 9

Non-controlling interest (11)

Gain/(loss) resulting from the disposals 151

Selling prices 233

thereof: received in cash and cash equivalents 9

In addition in the 1st half year ended March 31, 2013, the Group acquired

smaller companies that are, on an individual basis, immaterial. Based on

the values as of the acquisition date, these acquisitions affected in total

the Group’s consolidated financial statements as presented below:

MILLION €

1st half ended

March 31, 2013

Goodwill 17


Investments accounted for using the equity method (5)

Inventories 2




Total assets acquired 40




Trade accounts payable 2

Other current financial liabilities 2


Total liabilities assumed 14

Net assets acquired 26

Non-controlling interest 0

Purchase prices 26

thereof: paid in cash and cash equivalents 22

02 Discontinued operations and disposal groups

As part of the portfolio optimization and of the decision about the concept

for the further strategic development in May 2011, in fiscal year

2010/2011 as well as in fiscal year 2011/2012 the disposal of the Berco

group of the Components Technology business area and the disposal of

the Tailored Blanks group of the Steel Europe business area have been

initiated. Both disposals did not meet the requirements of IFRS 5 for a

presentation as a discontinued operation and were not completed as of

the balance sheet date. Therefore, revenues and expenses were continued

to be presented as income from continuing operations until the date of the

disposal.

The disposal of the entire Steel Americas business area initiated in

September 2012, met the criteria for a presentation as a discontinued

operation for the first time as of September 30, 2012, for the Stainless

Global business area the criteria have already been met since September

30, 2011 and ended December 28, 2012 with the combination with the

Finnish company Outokumpu. Therefore, for the reporting period all

revenues and expenses of the Steel Americas business area until March

31, 2013 and all revenues and expenses of the Stainless Global business

area until December 28, 2012 as well as income and expense incurred

after the disposal but directly related to the disposal of Stainless Global

will be presented in the consolidated statement of income in the line item

“discontinued operations (net of tax)”. The prior year presentation in which

the Stainless Global business area has already been presented as a

discontinued operation has been adjusted accordingly for the Steel

Americas business area.

For entities for which the disposal has not been completed as of the

balance sheet date of the respective reporting period, the assets and

liabilities of the disposal group and of the discontinued operation have

been disclosed separately in the consolidated balance sheet of the

reporting period in the line items “assets held for sale” and “liabilities

associated with assets held for sale”.

In September 2012 the disposal of the Berco group has been initiated in

the Components Technology business area. Berco is a leading global

supplier of undercarriages, based mainly on forged components, for the

construction machinery sector and offers a broad range of parts and

services for both OEMs and the aftermarket. Its products are used in

machinery from large mining equipment to mini excavators. In the context

of the initiated disposal an impairment loss of €4 million on intangible

assets and of €131 million on property, plant and equipment was

recognized in cost of sales in the 4th quarter of 2011/2012 resulting from

the write-down of the assets to fair value less costs to sell. At the same

time a deferred tax asset of €1 million was recognized. The assets and

liabilities of the disposal group as of March 31, 2013 are presented in the

following table:


MILLION € / DISPOSAL GROUP BERCO GROUP

March 31, 2013


Property, plant and equipment 32


Inventories 209




Assets held for sale 335




Current income tax liabilities 1




Liabilities associated with assets held for sale 165

In addition in September 2012 the disposal of the ThyssenKrupp Tailored

Blanks group has been initiated in the Steel Europe business area.

Tailored Blanks is supplier of body systems to the auto industry which

produces tailored steel blanks. The sale is subject to approval by the

supervisory bodies and the responsible regulatory authorities. The assets

and liabilities of the disposal group as of March 31, 2013 are presented in

the following table:

MILLION € / DISPOSAL GROUP TAILORED BLANKS GROUP

March 31, 2013

Goodwill 6


Property, plant and equipment 104



Inventories 59





Assets held for sale 321










Liabilities associated with assets held for sale 99

Discontinued operations: Steel Americas and Stainless Global business areas In September 2012, the Supervisory Board noted with assent the

Executive Board’s intention to open a bidding process for the Steel

Americas business area. We remain on signing a deal promptly.

The €3,645 million impairment which became necessary as of September

30, 2012 due to the intention to sell. The impairment was based on the

expected fair value less costs to sell. Non-binding offers had been

received for each plant separately and both together. The valuation also

included internal calculations, made in part with support from auditors and

management consultants, which took into account all knowledge available

to ThyssenKrupp from the ongoing sale process and overall represented a

best possible estimate.

Taking into account the current negotiations, as of March 31, 2013 there

is a new assessment of the fair value less costs to sell. This resulted in a

further impairment loss of €683 million which was allocated to property,

plant and equipment and in this context caused an adjustment of deferred

tax assets of €86 million. The expense is recognized in income/(loss) of

discontinued operations of the 1st half year ended March 31, 2013 and

the 2nd quarter ended March 31, 2013, respectively.


The results of the Steel Americas business area that classifies as a discontinued operation are as follows:

MILLION € / DISCONTINUED OPERATION STEEL AMERICAS

1st half ended

March 31, 2012

1st half ended

March 31, 2013

2nd quarter ended

March 31, 2012

2nd quarter ended

March 31, 2013

Net sales 770 834 443 461


Expenses (1,428) (985) (790) (490)

Ordinary income/(loss) from discontinued operations (before taxes) (524) (109) (239) (19)

Income tax (expense)/income 132 39 73 11

Ordinary income/(loss) from discontinued operations (net of tax) (392) (70) (166) (8)

Gain/(loss) recognized on measurement adjustments of discontinued operations (before taxes) — (683) — (683)

Income tax (expense)/income — (86) — (86)

Gain/(loss) recognized on measurement adjustments of discontinued operations (net of tax) 0 (769) 0 (769)

Discontinued operations (net of tax) (392) (839) (166) (777)

thereof:

ThyssenKrupp AG's stockholders (334) (623) (140) (569)

Non-controlling interest (58) (216) (26) (208)

The assets and liabilities of the discontinued operation Steel Americas

business area as of March 31, 2013 are presented in the following table:

MILLION € / DISCONTINUED OPERATION STEEL AMERICAS

March 31, 2013




Inventories 732






Assets held for sale 3,909








Liabilities associated with assets held for sale 1,269

On initial classification as a discontinued operation, non-current assets

are no longer amortized and depreciated, therefore in the 1st half year

ended March 31, 2013, amortization and depreciation of €221 million

were suspended; thereof €110 million refer to the 2nd quarter ended

March 31, 2013. Included in these amounts are capitalized borrowing

costs of €16 million in the 1st half year ended March 31, 2013 and of €8

million the 2nd quarter ended March 31, 2013, respectively.

As of September 2011 as part of its program for the further strategic

development, the corporate, organizational and contractual conditions for

creating a separate Stainless Global and consequently the conditions for

the first-time presentation as a discontinued operation were established.

In the context with the initiated disposal, as of September 30, 2011 the

measurement of discontinued operations at fair value less costs to sell

based on internal calculations and market observations resulted in an

impairment loss of €510 million. Thereof, €45 million applied to goodwill

and the remaining impairment loss was allocated to property, plant and

equipment. The expense is recognized in income/(loss) of discontinued

operations of the 4th quarter of 2010/2011.

On January 31, 2012, the agreement to combine the Finnish stainless

steel producer Outokumpu and ThyssenKrupp’s stainless steel operations

was signed. The EU Commission approved the combination in November

2012 with certain conditions. Based on the contract with Outokumpu

about the intented sale, in 2011/2012 the measurement resulted in an

additional impairment loss of €400 million that was allocated to property,

plant and equipment. The expense of €400 million in total is recognized in

income/(loss) of discontinued operations of the year ended September 30,

2012. In the 1st half year ended March 31, 2012 an impairment loss of

€515 million has been recognized; thereof €250 million refer to the 2nd

quarter of 2011/2012.

Furthermore, due to the shut-down of the Krefeld melt shop by the end of

2013, an impairment loss of €42 million on property, plant and equipment

was recognized in income/(loss) of discontinued operations of the 2nd

quarter of 2011/2012. In May 2012, Inoxum agreed with the relevant

works council on a social plan in connection with the consolidation

measures regarding the relocation of the Düsseldorf-Benrath facility and

the connected personnel reduction. The social plan includes early

retirement models and compensations for employees leaving Inoxum.

Further, it includes compensations for employees being relocated. The

social plan will apply accordingly to the planned closure of the Krefeld

melt shop in the event the Inoxum transaction is completed. As of

September 30, 2012 the overall costs in connection with that social plan

have been recognized as a restructuring provision of €58 million in the

aggregate for Düsseldorf-Benrath and Krefeld.


On December 28, 2012 the combination of the Stainless Global business

area with the Finnish company Outokumpu was completed. With the

closing of this transaction ThyssenKrupp received €1 billion in cash from

Outokumpu for the contribution of Inoxum. In addition Outokumpu took on

the external net financial debt and pension obligations. ThyssenKrupp

holds a share of 29.9% in Outokumpu and a financial receivable

outstanding against Outokumpu with a current value of around €1.2 billion

and an original maximum term of 9 years. Under the purchase agreement,

this financial receivable can be adjusted by a maximum of €200 million in

the event of negative financial consequences arising for Outokumpu from

conditions imposed under merger control law.

The results of the Stainless Global business area that classified as a

discontinued operation until December 28, 2012 are presented in the

following table. In addition the table includes income and expense

incurred after the disposal but directly related to the disposal of Stainless

Global; these items are shown separately in the column for the 2nd

quarter ended March 31, 2013 and are also included in the cumulative

column for the 1st half year ended March 31, 2013. They mainly comprise

transaction-related interest income and transaction costs.

MILLION € / DISCONTINUED OPERATION STAINLESS GLOBAL

1st half ended

March 31, 2012

1st half ended

March 31, 2013

2nd quarter ended

March 31, 2012

2nd quarter ended

March 31, 2013

Net sales 2,904 1,268 1,597 0


Expenses (3,045) (1,360) (1,667) (1)

Ordinary income/(loss) from discontinued operations (before taxes) (127) (80) (61) 2 Income tax (expense)/income 51 (5) 28 0

Ordinary income/(loss) from discontinued operations (net of tax) (76) (85) (33) 2

Gain/(loss) recognized on measurement adjustments/ disposal of discontinued operations (before taxes) (515) 146 (250) 0 Income tax (expense)/income — — — —

Gain/(loss) recognized on measurement adjustments/ disposal of discontinued operations (net of tax) (515) 146 (250) 0 Discontinued operations (net of tax) (591) 61 (283) 2

thereof: ThyssenKrupp AG's stockholders (589) 62 (282) 2

Non-controlling interest (2) (1) (1) 0

On initial classification as a discontinued operation, non-current assets

are no longer amortized and depreciated, therefore until the disposal as of

December 28, 2012, amortization and depreciation of €52 million were

suspended; in the 1st half year ended March 31, 2012, amortization and

depreciation of €94 million were suspended; thereof €48 million refer to

the 2nd quarter ended March 31, 2012.

The assets and liabilities that are assigned to the discontinued operation

Stainless Global as of December 28, 2012 are presented in the following

table:

MILLION € / DISCONTINUED OPERATION STAINLESS GLOBAL

Dec. 28, 2012



Investment property 12


Other financial assets 2



Inventories 1,798






Assets disposed of 4,576






Other non-current non-financial liabilities 1





Trade accounts payable 1,220

Other current financial liabilities 2,345


Liabilities disposed of 4,500

The 29.9% shareholding in Outokumpu obtained after the disposal of the

Stainless Global business area is accounted for in the consolidated

financial statements according to the equity method. As of December 31,

2012 this shareholding is initially reported with a value of €491 million,

based on the share price at the time of the transaction (€0.79) multiplied

by the number of Outokumpu shares received. As of March 31, 2013, the

adjustment of the carrying amount of the investment resulted in a

reduction of €34 million to €457 million.

The fair value of the shares acquired at the time of the transaction is

currently being determined in connection with the respective purchase

price allocation. Any difference will impact the carrying amount of the

investment.

03 Share-based compensation Management incentive plans In the 2nd quarter ended March 31, 2013, the members of the Executive

Board of ThyssenKrupp AG were granted stock rights of the 3rd

installment of the long-term incentive plan (LTI). At the same time, in the

2nd quarter ended March 31, 2013, the stock rights granted in the 8th and


final installment of the mid-term incentive plan (MTI) expired without any

payment due to the decline of the average ThyssenKrupp EVA over the

three-year performance period compared to the average EVA over the

previous three fiscal year period. In the 1st half year ended March 31,

2013, the Group recorded expenses of €2.2 million from the obligations of

the long-term incentive plan LTI (1st half year ended March 31, 2012:

expense of €1.4 million); thereof expenses of €0 million (1st half year

ended March 31, 2012: income of €0.4 million) is presented in

income/(loss) of discontinued operations. In the 2nd quarter ended March

31, 2013, the LTI resulted in an expense of €5.9 million (2nd quarter

ended March 31, 2012: €11.2 million); thereof an expense of €0 million

(2nd quarter ended March 31, 2012: €0 million) is presented in

income/(loss) of discontinued operations.

In September 2010 the structure of the variable compensation for

members of the Executive Board of ThyssenKrupp AG was modified. 25%

of the performance bonus granted for the respective fiscal year and 55%

of the additional bonus granted depending on the economic situation will

be obligatorily converted into ThyssenKrupp AG stock rights to be paid out

after a three-year lock-up period based on the average ThyssenKrupp

share price in the 4th quarter of the 3rd fiscal year. In the 3rd quarter of

2010/2011 the structure of the variable compensation for additional

executive employees was modified. 20% of the performance bonus

granted for the respective fiscal year will be obligatorily converted into

ThyssenKrupp AG stock rights to be paid out after a three-year lock-up

period based on the average ThyssenKrupp share price in the 4th quarter

of the 3rd fiscal year. This compensation item resulted in expenses of €0.1

million in the 1st half year ended March 31, 2013 (1st half year ended

March 31, 2012: €4.4 million) and in income of €0.3 million in the 2nd

quarter ended March 31, 2013 (2nd quarter ended March 31, 2012:

expense of €4.3 million).

04 Accrued pension and similar obligations Based on updated interest rates and fair value of plan assets, an updated

valuation of accrued pension and health care obligations was performed

as of March 31, 2013, taking into account these effects while other

assumptions remained unchanged.

MILLION €

Sept. 30, 2012 March 31, 2013

Accrued pension liability 6,922 6,690

Accrued postretirement obligations other than pensions 850 827

Other accrued pension-related obligations 314 270 Reclassification due to the presentation as liabilities associated with assets held for sale (378) (40)

Total 7,708 7,747

The Group applied the following weighted average assumptions to

determine pension and postretirement benefit obligations other than

pensions:

IN %

Sept. 30, 2012 March 31, 2013

Germany

Outside Germany Germany

Outside Germany

Discount rate for accrued pension liability 3.60 3.44 3.30 3.53

Discount rate for postretirement obligations other than pensions (only USA) — 3.50 — 3.75

The net periodic postretirement benefit cost for health care obligations is as follows:

MILLION €

1st half ended

March 31, 2012

1st half ended

March 31, 2013

2nd quarter ended

March 31, 2012

2nd quarter ended

March 31, 2013

Germany




Outside Germany

Service cost 38 17 53 18 19 9 26 9

Interest cost 134 45 114 39 67 22 57 19

Expected return on plan assets (6) (50) (6) (52) (3) (25) (3) (25)

Past service cost 0 0 12 0 0 0 12 0

Curtailment and settlement gains 0 0 0 (11) 0 0 0 0

Net periodic pension cost 166 12 173 (6) 83 6 92 3

The above presented net periodic pension cost for defined benefit plans in Germany include cost of €5 million in the 1st half year ended March 31, 2013

(1st half year ended March 31, 2012: €7 million) and of €0 million in the 2nd quarter ended March 31, 2013 (2nd quarter ended March 31, 2012: €4

million) attributable to discontinued operations. The above presented net periodic pension cost for defined benefit plans outside Germany does not

include any cost in the 1st half year ended March 31, 2013 and in the 2nd quarter ended March 31, 2013 attributable to discontinued operations (1st

half year ended March 31, 2012: €1 million and 2nd quarter ended March 31, 2012: €1 million). These costs are presented in income/(loss) from

discontinued operations in the consolidated statement of income.


The net periodic postretirement cost for health care obligations is as follows:

MILLION €

1st half ended

March 31, 2012

1st half ended

March 31, 2013

2nd quarter ended

March 31, 2012

2nd quarter ended

March 31, 2013

USA USA USA USA

Service cost 2 0 1 (1)

Interest cost 22 15 11 8

Expected return on reimbursement rights (2) 0 (1) 0

Past service cost (33) 0 (3) 0

Net periodic postretirement benefit cost/(income) (11) 15 8 7

05 Issuance of a bond In February 2013 ThyssenKrupp issued a 1.25 billion Euro bond

documented under the existing 10 billion Euro Debt Issuance Programme.

The bond has a 5 1/2 year maturity and carries a coupon of 4.0% p.a. at

an issuance price of 99.681%. Due to the very strong performance of the

secondary market the bond was raised by €350 million in March 2013

with an unchanged coupon at an issuance price of 100.625%. With this

transaction ThyssenKrupp AG made use of the good market environment,

extended its maturity profile and strengthened the debt capital market

share in its financing mix.

06 Contingencies including pending lawsuits and claims for damages

Guarantees ThyssenKrupp AG as well as, in individual cases, its subsidiaries have

issued or have had guarantees in favour of business partners or lenders.

The following table shows obligations under guarantees where the

principal debtor is not a consolidated Group company:

MILLION €

Maximum potential

amount of future payments

as of March 31, 2013

Provision as of March 31, 2013

Advance payment bonds 267 1

Performance bonds 121 1

Third party credit guarantee 174 0

Residual value guarantees 61 2

Other guarantees 110 1

Total 733 5

The terms of those guarantees depend on the type of guarantee and may

range from three months to ten years (e.g. rental payment guarantees).

The basis for possible payments under the guarantees is always the non-

performance of the principal debtor under a contractual agreement, e.g.

late delivery, delivery of non-conforming goods under a contract or non-

performance with respect to the warranted quality or default under a loan

agreement.

All guarantees are issued by or issued by instruction of ThyssenKrupp AG

or subsidiaries upon request of the principal debtor obligated by the

underlying contractual relationship and are subject to recourse provisions

in case of default. If such a principal debtor is a company owned fully or

partially by a foreign third party, the third party is generally requested to

provide additional collateral in a corresponding amount.

Commitments and other contingencies Due to the high volatility of iron ore prices, in the Steel Europe and Steel

Americas business areas the existing long-term iron ore and iron ore

pellets supply contracts are measured for the entire contract period at the

iron ore prices applying as of the respective balance sheet date.

Compared to September 30, 2012, the purchasing commitments

increased by €3.7 billion to €19.3 billion due to the higher ore prices.

Pending lawsuits and claims for damages The Group is involved in pending and threatened litigation in connection

with the purchase and sale of certain companies, which may lead to

partial repayment of the purchase price or to the payment of damages. In

addition, damage claims may be payable to contractual partners,

customers, consortium partners and subcontractors under performance

contracts. Some of these claims have proven unfounded, have been

ended by settlement or expired under the statute of limitations. A number

of these proceedings are still pending.

In connection with the rail cartel we and other participants have now been

served with a statement of claim from Deutsche Bahn AG (DB). The claim

is directed against ThyssenKrupp GfT Gleistechnik, ThyssenKrupp

Materials International and further cartel participants. DB is seeking

extensive information and in this connection estimates the total damages

caused by all participants in the cartel at €550 million plus interest of

approx. €300 million.

Zwischenabschluss 1. Halbjahr 2012/2013 Verkürzter Konzern-Anhang 41

In addition to DB further customers have announced their intention to file

claims for compensation. A reliable estimate of the financial

consequences of such claims is not yet possible for ThyssenKrupp.

For recognizable risks from claims for compensation and anticipated fines

in connection with the ongoing investigations of the Federal Cartel Office,

additional provisions in the amount of €207 million were recognized as of

March 31, 2013.

Following an anonymous tip, the Federal Cartel Office is investigating

ThyssenKrupp Steel Europe AG and others on an initial suspicion of price

agreements dating back to 1998 relating to the supply of specific steel

products to German automotive manufacturers and their suppliers.

ThyssenKrupp has initiated its own internal inquiry into the allegations

with the support of external legal advisers which is also taking account of

findings from the amnesty program. The internal inquiry and the

investigations of the Federal Cartel Office are ongoing. At present

significant risks for the Group's net assets, financial position and results of

operations cannot be ruled out.

There have been no significant changes since September 30, 2012 to

other contingencies, including pending litigations.

07 Derivative financial instruments The notional amounts and fair values of the Group’s derivative financial instruments are as follows:

MILLION €

Notional amount

Sept. 30, 2012 Fair value

Sept. 30, 2012 Notional amount March 31, 2013

Fair value March 31, 2013

Derivative financial instruments

Assets

Foreign currency derivatives including embedded derivatives 1,695 35 2,381 80

Interest rate derivatives* 172 5 175 2

Commodity derivatives 221 20 287 12

Total 2,088 60 2,843 94

Liabilities

Foreign currency derivatives including embedded derivatives 5,086 57 1,800 39

Interest rate derivatives* 1,122 70 1,355 74

Commodity derivatives 451 40 303 43

Total 6,659 167 3,458 156

* inclusive of cross currency swaps

08 Related parties As of March 31, 2013 ThyssenKrupp holds a financial receivable

outstanding against Outokumpu with a current value of around €1.2 billion

and an original maximum term of 9 years.

09 Segment reporting At January 01, 2013 the former Plant Technology and Marine Systems

business areas were combined into the new Industrial Solutions business

area. Industrial Solutions is a leading international supplier in special and

large-scale plant construction as well as naval shipbuilding. The figures

for the prior-year periods have been adjusted accordingly.

As a measure of the earning power of the individual segments, the EBIT

key indicator by definition contains only financial income components of

an operating nature. The 29.9% interest in Outokumpu now held by

ThyssenKrupp following the sale of Stainless Global, which is accounted

for using the equity method, is reported under Corporate as a financial

interest due to its non-operating nature and the equity income/(expense)

is not included in EBIT.


Segment information for the 1st half year ended March 31, 2012 and March 31, 2013 as well as for the 2nd quarter ended March 31, 2012 and March

31, 2013 is as follows:

MILLION €

Components Technology

Elevator Technology

Industrial Solutions

Materials Services

Steel Europe Corporate

Steel Americas*

Stainless Global* Consolidation Group

1st half ended March 31, 2012

External sales 3,629 2,670 2,503 6,324 4,461 32 770 2,904 0 23,293

Internal sales within the Group 4 0 8 229 955 40 274 302 (1,812) 0

Total sales 3,633 2,670 2,511 6,553 5,416 72 1,044 3,206 (1,812) 23,293

EBIT 297 231 184 114 123 (218) (518) (624) (174) (585)

Adjusted EBIT 231 274 357 130 132 (221) (516) (36) (174) 177

1st half ended March 31, 2013

External sales 2,699 2,919 2,724 5,572 3,895 41 834 1,268 0 19,952

Internal sales within the Group 6 1 10 166 870 57 155 134 (1,399) 0

Total sales 2,705 2,920 2,734 5,738 4,765 98 989 1,402 (1,399) 19,952

EBIT 108 304 339 (121) 19 (251) (782) 70 (182) (496)

Adjusted EBIT 105 315 320 98 39 (217) (99) (70) (190) 301

2nd quarter ended March 31, 2012

External sales 1,875 1,319 1,197 3,316 2,382 26 443 1,597 0 12,155

Internal sales within the Group 5 3 5 92 504 11 103 171 (894) 0

Total sales 1,880 1,322 1,202 3,408 2,886 37 546 1,768 (894) 12,155

EBIT 128 118 175 74 21 (119) (230) (303) (92) (228)

Adjusted EBIT 128 132 193 90 30 (120) (228) 20 (93) 152

2nd quarter ended March 31, 2013

External sales 1,356 1,387 1,423 2,841 2,058 14 461 0 0 9,540

Internal sales within the Group 4 1 5 82 454 29 40 0 (615) 0

Total sales 1,360 1,388 1,428 2,923 2,512 43 501 0 (615) 9,540

EBIT 65 133 198 (157) (10) (139) (695) (2) (93) (700)

Adjusted EBIT 63 146 180 58 9 (120) (12) (1) (96) 227

* Discontinued operation

Net sales and adjusted EBIT as well as operating EBIT reconcile to EBT from continuing operations as presented in the consolidated statement of

income as following:

MILLION €

1st half ended

March 31, 2012

1st half ended

March 31, 2013

2nd quarter ended

March 31, 2012

2nd quarter ended

March 31, 2013

Sales as presented in segment reporting 23,293 19,952 12,155 9,540

- Sales of Steel Americas (1,044) (989) (546) (501)

- Sales of Stainless Global (3,206) (1,402) (1,768) 0

+ Sales of discontinued operations to Group companies 576 289 274 40

+ Sales of Group companies to discontinued operations 172 89 80 23

Sales as presented in the statement of income 19,791 17,939 10,195 9,102

MILLION €

1st half ended

March 31, 2012

1st half ended

March 31, 2013

2nd quarter ended

March 31, 2012

2nd quarter ended

March 31, 2013

Adjusted EBIT as presented in segment reporting 177 301 152 227

Special items (762) (797) (380) (927)

EBIT as presented in segment reporting (585) (496) (228) (700)

- Depreciation of capitalized borrowing costs eliminated in EBIT (21) (7) (10) (4)

+ Non-operating income/(expense) from companies accounted for using the equity method 0 (38) 0 (38)

+ Finance income 385 244 71 114

- Finance expense (667) (557) (208) (273)

- Items of finance income assigned to EBIT based on economic classification (64) (6) (63) 20

+ Items of finance expense assigned to EBIT based on economic classification 37 24 37 5

EBT - Group (915) (836) (401) (876)

- EBT of Steel Americas 524 792 239 702

- EBT of Stainless Global 642 (66) 311 (2)

EBT from continuing operations as presented in the statement of income 251 (110) 149 (176)


10 Cost of sales Cost of sales for the 1st half year ended March 31, 2013, includes write-

downs of inventories of €21 million which mainly relate to the Steel

Europe, Components Technology and Materials Services business areas.

As of September 30, 2012, write-downs amounted to €49 million. In the

1st half year ended March 31, 2012, cost of sales includes write-downs of

inventories of €35 million which mainly related to the Steel Europe and

Materials Services business areas. In addition, income/(loss) from

discontinued operations includes write-downs of inventories of €41 million

in the 1st half year ended March 31, 2013 (1st half year ended March 31,

2012: €31 million).

11 Income/(expense) from companies accounted for using the equity method

The line item includes pro rata losses of Outokumpu of €38 million.

12 Earnings per share Basic earnings per share is calculated as follows:

1st half ended March 31, 2012 1st half ended March 31, 2013 2nd quarter ended March 31, 2012 2nd quarter ended March 31, 2013

Total amount

in million € Earnings per

share in € Total amount






share in €

Loss from continuing operations (net of tax) (attributable to ThyssenKrupp AG's stockholders) (123) (0.24) (60) (0.12) (164) (0.32) (89) (0.18)

Loss from discontinued operations (net of tax) (attributable to ThyssenKrupp AG's stockholders) (924) (1.79) (561) (1.09) (423) (0.82) (567) (1.10) Net loss (attributable to ThyssenKrupp AG's stockholders) (1,047) (2.03) (621) (1.21) (587) (1.14) (656) (1.28)

Weighted average shares 514,489,044 514,489,044 514,489,044 514,489,044

Relevant number of common shares for the determination of earnings per share Earnings per share have been calculated by dividing net loss attributable

to common stockholders of ThyssenKrupp AG (numerator) by the

weighted average number of common shares outstanding (denominator)

during the period. Shares sold during the period and shares reacquired

during the period have been weighted for the portion of the period that

they were outstanding.

There were no dilutive securities in the periods presented.

13 Additional information to the consolidated statement of cash flows

The liquid funds considered in the consolidated statement of cash flows

correspond to the „Cash and cash equivalents“ line item in the

consolidated statement of financial position taking into account the cash

and cash equivalents attributable to the disposal groups inclusive of

discontinued operations.

Non-cash investing activities In the 1st half year ended March 31, 2013, the acquisition and first-time

consolidation of companies created an increase in non-current assets of

€10 million (1st half year ended March 31, 2012: €65 million). In the 2nd

quarter ended March 31, 2013 these increases amounted to €6 million

(2nd quarter ended March 31, 2012: €3 million).

The non-cash addition of assets under finance leases in the 1st half year

ended March 31, 2013 amounted to €5 million (1st half year ended March

31, 2012: €3 million) and in the 2nd quarter ended March 31, 2013 to €2

million (2nd quarter ended March 31, 2012: €1 million).

In connection with the second construction stage of the “ThyssenKrupp

Quarter” located in Essen, there was a non-cash addition of property,

plant and equipment of €10 million in the 1st half year ended March 31,

2013 (1st half year ended March 31, 2012: 0) and of €5 million in the 2nd

quarter ended March 31, 2013 (2nd quarter ended March 31, 2012: 0).

Non-cash financing activities In the 1st half year ended March 31, 2013, the acquisition and first-time

consolidation of companies did not result in any increase in gross financial

debt (1st half year ended March 31, 2012: €2 million); in the 2nd quarter

ended March 31, 2013 as well as in the 2nd quarter ended March 31,

2012 there wasn’t also any increase.

In connection with the second construction stage of the “ThyssenKrupp

Quarter” located in Essen, there was a non-cash increase of financial debt

of €10 million in the 1st half year ended March 31, 2013 (1st half year

ended March 31, 2012: 0) and of €5 million in the 2nd quarter ended

March 31, 2013 (2nd quarter ended March 31, 2012: 0).


14 Subsequent events On April 17, 2013 the Supervisory Board of ThyssenKrupp Electrical Steel

GmbH approved plans to find a best-owner solution for the electrical steel

operations in Gelsenkirchen, Isbergues in France and Nashik in India and

to carry out corresponding preparatory operational and administrative

measures. The disposal concerns sales of approx. €450 million, non-

current assets of approx. €180 million, and around 1,800 employees. At

the same time approval was given for a reorganization of the electrical

steel activities involving the transfer of the Bochum plant for non-oriented

electrical steel to Steel Europe AG, where it is to be continued.

On May 06, 2013 by resolution of the Materials Services Executive Board

the disposal process for the rail and construction equipment activities was

initiated. This area has sales of approx. €400 million and around 800

employees.

Essen, May 10, 2013

ThyssenKrupp AG

The Executive Board

Hiesinger

Burkhard Kerkhoff

1st half 2012/2013 Review report of the half-year financial report 45

Review report of the half-year financial report

To ThyssenKrupp AG, Duisburg and Essen

We have reviewed the condensed consolidated interim financial

statements - comprising statement of financial position, the statement of

income and statement of comprehensive income, the statement of

changes in equity, the statement of cash flows and selected explanatory

notes – and the interim group management report of ThyssenKrupp AG,

Duisburg and Essen, for the period from October 1, 2012, to March 31,

2013, which are part of the quarterly financial report pursuant to § (Article)

37w WpHG ("Wertpapierhandelsgesetz" German Securities Trading Act).

The preparation of the condensed consolidated interim financial

statements in accordance with the IFRS applicable to interim financial

reporting as adopted by the EU and of the interim group management

report in accordance with the provisions of the German Securities Trading

Act applicable to interim group management reports is the responsibility

of the parent Company’s Board of Managing Directors. Our responsibility

is to issue a review report on the condensed consolidated interim financial

statements and on the interim group management report based on our

review.

We conducted our review of the condensed consolidated interim financial

statements and the interim group management report in accordance with

German generally accepted standards for the review of financial

statements promulgated by the Institut der Wirtschaftsprüfer (Institute of

Public Auditors in Gemany) (IDW) and additional observed the

International Standard on Review Engagements "Review of Interim

Financial Information Performed by the Independent Auditor of the Entity"

(ISRE 2410). Those standards require that we plan and perform the review

so that we can preclude through critical evaluation, with moderate

assurance, that the condensed consolidated interim financial statements

have not been prepared, in material respects, in accordance with the IFRS

applicable to interim financial reporting as adopted by the EU and that the

interim group management report has not been prepared, in material

respects, in accordance with the provisions of the German Securities

Trading Act applicable to interim group management reports. A review is

limited primarily to inquiries of company personnel and analytical

procedures and therefore does not provide the assurance attainable in a

financial statement audit. Since, in accordance with our engagement, we

have not performed a financial statement audit, we cannot issue an audit

opinion.

Based on our review, no matters have come to our attention that cause us

to presume that the condensed consolidated interim financial statements

have not been prepared, in material respects, in accordance with the IFRS

applicable to interim financial reporting as adopted by the EU nor that the

interim group management report has not been prepared, in material

respects, in accordance with the provisions of the German Securities

Trading Act applicable to interim group management reports.

Without qualifying our review report, we draw attention to the disclosures

in "Discontinued operations: Steel Americas and Stainless Global business

areas" in Note 2 of the selected explanatory notes regarding the

measurement of the assets of the Steel Americas business area.

Essen, May 14, 2013

PricewaterhouseCoopers

Aktiengesellschaft

Wirtschaftsprüfungsgesellschaft

Prof. Dr. Norbert Winkeljohann Volker Linke

(German Public Auditor) (German Public Auditor)

1st half 2012/2013 Responsibility statement 46

Responsibility statement

To the best of our knowledge, and in accordance with the applicable

reporting principles for interim reporting, the condensed interim

consolidated financial statements give a true and fair view of the assets,

liabilities, financial position and profit and loss of the Group, and the

Group interim management report includes a fair review of the

development and performance of the business and the position of the

Group, together with a description of the principal opportunities and risks

associated with the expected development of the Group in the remaining

months of the year.

Essen, May 10, 2013

ThyssenKrupp AG

The Executive Board

Hiesinger

Burkhard Kerkhoff

Further information 1st half 2012/2013 Report by the Supervisory Board Audit Committee 47

Report by the Supervisory Board Audit Committee

The interim report for the 1st half of the 2012/2013 fiscal year (October

2012 to March 2013) and the review report by the Group’s financial

statement auditors were presented to the Audit Committee of the Supervi-

sory Board in its meeting on May 14, 2013 and explained by the Executive

Board. The auditors were available to provide additional information. The

Audit Committee approved the interim report.

Essen, May 14, 2013

Chairman of the Audit Committee

Prof. Dr. Bernhard Pellens

Further information 1st half 2012/2013 Contact and 2013/2014 dates 48

Contact and 2013/2014 dates

Contacts Corporate Communications

Telephone +49 201 844-536043

Fax +49 201 844-536041

E-mail [email protected]

Investor Relations E-mail [email protected]

Institutional investors and analysts Telephone +49 201 844-536464

Fax +49 201 8456-531000

Private investors Infoline +49 201 844-538382

Fax +49 201 8456-531000

Address ThyssenKrupp AG

ThyssenKrupp Allee 1, 45143 Essen, Germany

P.O. Box, 45063 Essen

Telephone +49 201 844-0

Fax +49 201 844-536000

E-mail [email protected]

2013/2014 dates

August 14, 2013 Interim report

9 months 2012/2013 (October to June)

Conference call with analysts and investors

November 21, 2013 Annual press conference


January 17, 2014 Annual General Meeting

February 14, 2014 Interim report

1st quarter 2013/2014 (October to December)


May 15, 2014 Interim report

1st half 2013/2014 (October to March)


Forward-looking statements This document contains forward-looking statements that reflect management’s current views with respect to future events. Such statements are subject to risks and uncertainties that are beyond ThyssenKrupp’s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of government regulators. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. ThyssenKrupp does not intend or assume any obligation to update any forward-looking statements to reflect events or circumstances after the date of these materials. Rounding differences and rates of change Percentages and figures in this report may include rounding differ-ences. The signs used to indicate rates of change are based on economic aspects: Improvements are indicated by a plus (+) sign, deteriorations are shown in brackets ( ). Very high positive and negative rates of change (≥1,000% or ≤(100)%) are indicated by ++ and −− respectively.

Variances for technical reasons To meet statutory disclosure obligations, the Company has to submit the interim report to the electronic Federal Gazette (Bundesanzeiger). For technical reasons (e.g. conversion of electronic formats) there may be variances in the accounting documents published in the electronic Bundesanzeiger. This English version of the annual report is a translation of the original German version; in the event of variances, the German version shall take precedence over the English translation. Both language versions of the interim report can be downloaded from the internet at http://www.thyssenkrupp.com. An interactive online version is also available on our website in both languages.

ThyssenKrupp AG ThyssenKrupp Allee 1 45143 Essen, Germany www.thyssenkrupp.com

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