Interim Report 11/12 · Interim Report 9 months 2011/2012 Strategic development of the Group 03 ......

Interim Report 11/12ThyssenKrupp AG

9 monthsOctober 01, 2011 – June 30, 2012

Developing the future.

ThyssenKrupp in brief

Our employees in around 80 countries work with passion and expertise to develop solutions for sustainable progress.

Their skills and commitment are the basis of our success.

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

sustainable 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.

The basis for this is responsible corporate governance geared towards long-term value growth. In an ever-changing

business environment we are continuously evolving our company to enable us to meet the global challenges of the

future with innovative solutions.

Stammdaten der ThyssenKrupp Aktie

ISIN (International Stock Identification Number) DE 000 750 0001

Börsenplätze Frankfurt (Prime Standard), Düsseldorf

Kürzel

Börsen Frankfurt, Düsseldorf TKA

Reuters (Xetra-Handel) TKAG.DE

Bloomberg (Xetra-Handel) TKA GY

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

01 Interim Report 9 months 2011/2012 Contents

Contents

ThyssenKrupp in figures 02

1

Interim management report Strategic development of the Group 03

Group review 05

Business area review 12

ThyssenKrupp stock 21

Innovations 22

Employees 23

Financial position 24

Subsequent events 27

Expected developments and

associated opportunities and risks 27

2

Condensed interim financial statements Consolidated statement of financial position 31

Consolidated statement of income 32

Consolidated statement of comprehensive income 33

Consolidated statement of changes in equity 34

Consolidated statement of cash flows 35

Selected notes to the consolidated financial statements 36

3

Review report 45

4

Further information Report by the Supervisory Board Audit Committee 46

Contact 47

2012/2013 dates 47

This interim report was published on August 10, 2012.

02 Interim Report 9 months 2011/2012 ThyssenKrupp in figures

ThyssenKrupp in figures Group continuing operations

9 months

2010/2011* 9 months

2011/2012* Change Change

in % 3rd quarter

2010/2011* 3rd quarter


in %

Order intake million € 34,309 31,905 (2,404) (7) 12,984 10,231 (2,753) (21)

Sales million € 32,206 31,219 (987) (3) 11,506 10,710 (796) (7)

EBITDA million € 2,363 1,562 (801) (34) 944 659 (285) (30)

EBIT million € 1,245 339 (906) (73) 549 296 (253) (46)

EBIT margin % 3.9 1.1 (2.8) — 4.8 2.8 (2.0) —

Adjusted EBIT million € 1,266 339 (927) (73) 570 122 (448) (79)

Adjusted EBIT margin % 3.9 1.1 (2.8) — 5.0 1.1 (3.9) —

EBT million € 852 (133) (985) -- 419 141 (278) (66)

Adjusted EBT million € 873 (133) (1,006) -- 440 (33) (473) --

Income/(loss) (net of tax) (attributable to ThyssenKrupp AG's shareholders) million € 576 (220) (796) -- 205 238 33 16

Basic earnings per share € 1.24 (0.43) (1.67) -- 0.44 0.46 0.02 5

Operating cash flow million € (396) (526) (130) (33) 843 902 59 7

Free cash flow million € (2,032) (988) 1,044 51 387 1,013 626 162

Employees (June 30) 171,086 155,588 (15,498) (9) 171,086 155,588 (15,498) (9)

Group including Stainless Global (discontinued operation)

9 months

2010/2011* 9 months


in % 3rd quarter



in %

Order intake million € 38,228 35,630 (2,598) (7) 14,120 11,362 (2,758) (20)

Sales million € 36,487 35,409 (1,078) (3) 12,851 12,116 (735) (6)

EBITDA million € 2,560 1,409 (1,151) (45) 983 573 (410) (42)

EBIT million € 1,315 (434) (1,749) -- 545 151 (394) (72)

EBIT margin % 3.6 (1.2) (4.8) — 4.2 1.2 (3.0) —

Adjusted EBIT million € 1,336 278 (1,058) (79) 566 101 (465) (82)

Adjusted EBIT margin % 3.7 0.8 (2.9) — 4.4 0.8 (3.6) —

EBT million € 904 (927) (1,831) -- 407 (12) (419) --

Adjusted EBT million € 925 (215) (1,140) -- 428 (62) (490) --

Net income/(loss) (attributable to ThyssenKrupp AG's shareholders) million € 626 (938) (1,564) -- 212 109 (103) (49)

Basic earnings per share € 1.35 (1.82) (3.17) -- 0.46 0.21 (0.25) (54)

Operating cash flow million € (805) (848) (43) (5) 709 871 162 23

Free cash flow million € (2,608) (1,586) 1,022 39 198 889 691 349

Net financial debt (June 30) million € 6,249 5,800 (449) (7) 6,249 5,800 (449) (7)

Total equity (June 30) million € 10,840 9,088 (1,752) (16) 10,840 9,088 (1,752) (16)

Employees (June 30) 182,425 167,394 (15,031) (8) 182,425 167,394 (15,031) (8)

Business Areas

Order intake (million €)

Sales (million €)

EBIT (million €)

Adjusted EBIT (million €) Employees

9 months

2010/2011* 9 months

2011/2012* 9 months

2010/2011* 9 months

2011/2012* 9 months

2010/2011* 9 months

2011/2012* 9 months

2010/2011* 9 months

2011/2012* June 30,

2011 Sept. 30,

2011 June 30,

2012

Steel Europe 9,656 8,206 9,763 8,316 880 170 880 184 33,702 28,843 28,104

Steel Americas 856 1,628 775 1,587 (887) (781) (887) (778) 3,995 4,060 4,236

Materials Services 11,150 10,009 10,995 9,922 397 72 397 222 35,440 36,568 27,945

Elevator Technology 3,984 4,582 3,864 4,099 469 365 469 421 45,603 46,243 46,656

Plant Technology 3,009 2,637 2,809 2,953 377 379 377 380 13,194 13,478 14,105

Components Technology 5,208 5,464 5,147 5,485 382 756 382 365 31,049 31,270 27,775

Marine Systems 2,730 1,409 1,202 880 192 (32) 192 140 5,398 5,295 3,781

Corporate 96 106 96 106 (319) (324) (298) (328) 2,705 2,803 2,986

Consolidation (2,380) (2,136) (2,445) (2,129) (246) (266) (246) (267) 0 0 0

Continuing operations 34,309 31,905 32,206 31,219 1,245 339 1,266 339 171,086 168,560 155,588

Order intake (million €)

Sales (million €)

EBIT (million €)

Adjusted EBIT (million €)

3rd quarter








2011/2012*

Steel Europe 3,006 2,511 3,518 2,900 322 47 322 52

Steel Americas 504 413 429 543 (190) (263) (190) (262)

Materials Services 3,973 3,235 3,980 3,369 149 (42) 149 92

Elevator Technology 1,320 1,575 1,298 1,429 151 134 151 147

Plant Technology 1,097 832 943 1,027 131 140 131 140

Components Technology 1,811 1,828 1,779 1,852 141 459 141 134

Marine Systems 2,155 456 479 294 62 23 62 23

Corporate 32 34 32 34 (120) (106) (99) (107)

Consolidation (914) (653) (952) (738) (97) (96) (97) (97)

Continuing operations 12,984 10,231 11,506 10,710 549 296 570 122

* period ended June 30

As part of its strategic development program ThyssenKrupp is divesting its stainless steel and high-performance alloy business.

As of September 30, 2011 the Stainless Global business area is therefore classified as a discontinued operation in accordance

with IFRS. The continuing operations of the Group comprise the remaining seven business areas and Corporate.

Interim Report 9 months 2011/2012 Strategic development of the Group 03

Strategic development of the Group

Important progress achieved with strategic development program

ThyssenKrupp wants to position itself as a diversified industrial group in attractive growth markets and close to its

customers worldwide. For this, the Executive Board decided on an integrated strategic development program to move

ThyssenKrupp forward competitively and sustainably. Global trends such as demographic change, urbanization,

globalization, climate change, and resource efficiency form the basis for developing new business opportunities. The

strategy, which includes portfolio optimization, change management processes and performance enhancement

measures, moved forward successfully in all three areas in the first 9 months of fiscal 2011/2012, achieving substantial

progress:

– Sale agreements have already been signed or closed for 90% of the sales volume up for disposal under the portfolio

optimization measures. One important measure was the sale of the US iron foundry Waupaca – after the necessary

approvals were obtained – to KPS Capital Partners. We achieved a significant disposal gain and cash inflow and thus

generated value.

– In addition to the launch of a Groupwide mission statement, the change management processes also include

strengthening the regional organization to better utilize our opportunities on future growth markets. Pilot projects

have been launched in North America, India, Japan and Turkey.

– Measures under our corporate program impact are making a particular contribution to enhancing our performance

and are expected to deliver a positive EBIT effect in excess of €300 million by the end of fiscal 2011/2012.

Continuous benchmarking is one method used to maintain our focus on performance. The standardization of our IT

infrastructure and harmonization of reporting processes are helping create the increased transparency essential for

the efficient management of the Group. As an additional impact measure, the new synergize+ program was launched

in April 2012, aimed at achieving cost benefits in purchasing.

Review of strategic options for Steel Americas

The economic parameters for the Steel Americas business area have changed significantly since the strategy for an

integrated network with the slab plant in Rio de Janeiro and the processing plant in Mobile, Alabama was developed.

Strategic options in all directions are therefore being examined for both plants in parallel with further technical and

commercial optimization. This may involve a partnership or a sale to a best owner whose strategy can better utilize the

outstanding quality and fundamental competitiveness of the individual plants. The banks Goldman Sachs and Morgan

Stanley were mandated to support the examination of the strategic options on June 27, 2012. The strategic review is

being carried out with an open mind. Both plants will hold leading positions on their respective markets in terms of

technology and conversion costs.

Portfolio further optimized

We continued to drive forward the strategic portfolio optimization in the first 9 months of fiscal 2011/2012:

– The agreement to combine the Finnish stainless steel producer Outokumpu and Inoxum, the stainless steel arm of

ThyssenKrupp, was signed on January 31, 2012. The conclusion of the transaction is subject to approval by the

competent regulatory authorities. The EU Commission has now completed Phase I of the antitrust investigation and,

as expected, moved on to an in-depth Phase II on May 21, 2012. We are confident that the transaction will be

completed by the end of 2012. Until the closing, Inoxum and Outokumpu will continue to operate as independent

competitors.

– The sale of the Xervon group from the Materials Services business area to the industrial service provider REMONDIS

was completed on November 30, 2011.

04 Interim Report 9 months 2011/2012 Strategic development of the Group

– Components Technology sold the Brazilian Automotive Systems operations to a subsidiary of the automotive supplier

Magna on December 06, 2011.

– UK-based Star Capital Partners acquired the civil shipbuilding operations of the Marine Systems business area on

January 31, 2012. The restructuring of our shipyards is now largely completed.

– In the Components Technology business area, we completed the integration of the chassis operations of the Bilstein

group and Presta Steering into ThyssenKrupp Chassis as planned in spring 2012, creating a major chassis full-

service provider with a global footprint and sales of around €3 billion.

– The sale of the US iron foundry Waupaca from Components Technology to New York-based private equity company

KPS Capital Partners was completed on June 29, 2012. With three plants in Waupaca and one in Marinette,

Wisconsin, as well as facilities in Tell City, Indiana, and Etowah, Tennessee, the company is the largest independent

iron foundry in the world. It employs 3,500 people in all three states and had sales of nearly US$1.5 billion in the last

fiscal year.

– The disposal processes for the springs and stabilizers business at Components Technology and ThyssenKrupp

Tailored Blanks at Steel Europe are being continued intensively.

In addition, targeted acquisitions were made to support the expansion of the Technologies businesses:

– To improve its presence on the Asian coke plant market, the Plant Technology business area acquired the Tokyo-

based Otto Corporation on October 05, 2011.

– Plant Technology also acquired London-based Energy & Power Global on July 02, 2012, an engineering consultancy

serving clients worldwide in the oil, gas and energy industries. The acquisition strengthens ThyssenKrupp’s

international plant engineering activities.

– The Elevator Technology business area strengthened its market position in the first 9 months of the fiscal year with

acquisitions in North America and the purchase of equity interests in the Asian growth market.

impact on track

The success of numerous measures and initiatives reflects the mobilizing effect and high level of acceptance achieved

by the corporate program impact throughout the Group. Through performance measures under the program, we are on

track to achieve a positive EBIT effect of €300 million by the end of fiscal 2011/2012. Launched in 2011, the program

comprises four initiatives: Customers & Markets, Performance & Portfolio, Innovation & Technology, and

People & Development. That means impact is the sum of many activities and measures aimed at increasing the

productivity, customer focus and innovativeness of the Company. The program is now established in all business areas.

As part of the impact initiative Performance & Portfolio, the new program synergize+ was launched in April 2012 to

improve the performance of the Group’s purchasing and supply management activities. It will sustainably reduce the

cost of bought-in products and services.

05

Interim Report 9 months 2011/2012 Group review

Group review

EBIT in capital goods business remains high – materials business impacted by economy – overall positive

earnings – net financial debt reduced

Due to the general economic weakness in the first 9 months of 2011/2012 (October 01, 2011 – June 30, 2012), order

intake from ThyssenKrupp’s continuing operations at €31.9 billion and sales at €31.2 billion fell short of the comparable

prior-year figures. In our materials business, low volumes and prices resulted in weaker orders and sales. In the capital

goods business, by contrast, order intake – taking into account a major order at Marine Systems in the prior-year period

– and sales were very stable. Orders for elevators and escalators rose to new record levels. Including the discontinued

operation Stainless Global, which operates under the name Inoxum, order intake in the first 9 months of 2011/2012

came to €35.6 billion, and sales to €35.4 billion.

Adjusted EBIT from continuing operations decreased to €339 million from €1,266 million a year earlier. With the

exception of Steel Americas, all business areas reported positive adjusted EBIT. In the materials business, however, the

€778 million loss at Steel Americas could not be offset by the other business areas Steel Europe and Materials Services.

Adjusted EBIT from the materials businesses amounted to €(372) million. Our capital goods businesses achieved

adjusted EBIT of €1,306 million, with the biggest contribution coming from Elevator Technology. Corporate costs and

consolidation items amounted to €(595) million. Including Stainless Global, the Group’s adjusted EBIT fell from

€1,336 million to €278 million.

We made clear progress towards our goal of reducing net financial debt. Including Stainless Global, net financial debt

was €5,800 million at June 30, 2012, down both year-on-year (June 30, 2011: €6,249 million) and quarter-on-quarter

(March 31, 2012: €6,480 million). The quarter-on-quarter decrease was the result of reductions in inventories and the

disposal of the US foundry Waupaca. Taking into account cash and cash equivalents and committed credit lines totaling

€7,283 million as well as a balanced maturity structure, ThyssenKrupp is solidly financed.

The highlights for the first 9 months 2011/2012:

– Order intake from continuing operations decreased year-on-year by 7% to €31.9 billion. Significant growth in the

elevator business and components business was not quite enough to offset the declines in the materials business.

Order intake in the 3rd quarter 2011/2012 fell by 12% quarter-on-quarter. The prior-year order intake included a €2

billion order at Marine Systems

– Sales from continuing operations were 3% lower than a year earlier at €31.2 billion. Sales from the capital goods

operations increased. 3rd-quarter sales rose by 1% quarter-on-quarter.

– Adjusted EBIT from continuing operations came to €339 million, compared with €1,266 million a year earlier. At

€122 million, the 3rd quarter figure was on a comparable level with the 2nd quarter, although Steel Americas posted

a clear loss. With the exception of Steel Americas, all business areas delivered positive contributions both in the 3rd

quarter and in the first 9 months.

– EBIT from continuing operations was €339 million, down from €1,245 million in the prior-year period. EBIT margin

declined from 3.9% to 1.1%.

– Earnings per share from continuing operations decreased from €1.24 to €(0.43).

06

Interim Report 9 months 2011/2012 Group review

Economic environment still weak

The global economy is showing signs of persistent weakness. After falling to 3.3% last year, global GDP growth is likely

to have slowed further in the 1st half of 2012, mainly affecting the industrialized countries.

The economic performance of the euro zone was particularly disappointing. GDP stagnated in the 1st quarter 2012. The

countries of southern Europe hit particularly hard by the debt crisis reported negative growth rates. By contrast, the

Germany economy was unexpectedly positive. Thanks to high exports, economic output increased by 0.5% quarter-on-

quarter. According to current estimates, Germany’s GDP showed only slight growth in the 2nd quarter 2012, while the

euro zone economy as a whole contracted slightly.

In the USA, GDP in the 1st quarter 2012 grew by 0.5% quarter-on-quarter on the back of higher industrial output and

stronger consumer spending; 2nd-quarter growth was 0.4%. Following sharp falls in growth in the prior year, the

Japanese economy recovered perceptibly; GDP grew by 1.2% in the 1st quarter 2012 and probably again in the 2nd

quarter.

In the emerging countries, the previously mainly high growth rates slowed appreciably at the start of the year. Weaker

export demand and lower housing investment dampened the pace of expansion in China, with quarter-on-quarter

growth in the 1st and 2nd quarters slowing to 1.6% and 1.8% respectively. In Brazil, declining exports and stagnating

industrial output resulted in low economic growth of 0.2% in the 1st quarter 2012.

07 Interim Report 9 months 2011/2012 Group review

Situation in the sectors mixed

Flat carbon steel – The weak economy also impacted the international steel markets. Global crude steel output

increased by only 1% to 767 million tons in the 1st half 2012. The slower growth was mainly due to the lower pace of

expansion in China compared with previous years; China’s crude steel output rose just 2% to 357 million tons.

Production in the USA expanded strongly by 8% to 46 million tons. By contrast, weaker steel demand led to production

cutbacks in many other regions. The EU steel industry recorded a 5% decline to 89 million tons. Production in Germany

was roughly 22 million tons in the 1st half 2012, a drop of 6% from the very high prior-year volume.

Demand on the European flat carbon steel market remained subdued. While moderate restocking resulted in a brief

recovery in demand in the 1st quarter 2012, the weaker economy had an increasing impact on key customer industries

in the months that followed. Distributors and end customers continued to place orders very carefully. Steel prices on the

European spot markets, which rose strongly in the first three months of the year, came under pressure again in the 2nd

quarter. Low steel prices and the weakening of the euro lessened import pressure. As a result, the European flat carbon

steel producers suffered only comparatively moderate volume losses and were able to regain share in the declining EU

market. The US flat carbon steel market recorded higher demand from key steel-using sectors, in particular the

automotive and energy industries. However, high shipments by domestic producers and increasing imports led to

oversupply, triggering a higher price drop than in Europe.

Automotive – The international automotive markets showed strong regional differences. In the USA, sales of cars and

light trucks rose year-on-year by 15% to 7.2 million vehicles in the 1st half 2012 on the back of high replacement

demand. The Japanese market also recovered strongly from the consequences of the natural disaster. The Chinese

vehicle market likewise recorded high levels of new registrations. Sales rose by 20% to 7.2 million cars and light trucks

in the 1st half 2012. By contrast, the Brazilian automotive market declined slightly.

In the European Union, new car registrations fell by 7% year-on-year to 6.6 million vehicles in the 1st half 2012. As a

result of the debt crisis, sales fell particularly sharply in southern Europe. In Germany, new car registrations rose by 1%

year-on-year to 1.63 million. Exports slipped by 1% to 2.16 million units, and car production also dropped by 1% to

2.84 million units. The heavy truck market recently showed strong signs of slowing.

Machinery – The high prior-year growth rates on the machinery markets slowed, although China and the USA are

expected to report further production increases in the 1st half 2012.

German machinery manufacturers increased their output in the 1st half 2012, but only thanks to high orders in hand.

New orders in the same period fell by 7%. Demand for elevators and escalators was also lower year-on-year. New

business in the German plant engineering industry in the first few months of 2012 fell to its lowest level since mid 2009.

Construction – The construction industry in the industrialized countries remained generally weak in the 1st half 2012.

Although the US real estate market stabilized recently at a low level, there were further declines in the countries of

southern Europe. Construction growth was higher in emerging countries such as China and India.

The German construction sector remained very robust. Orders rose appreciably in the year to date, particularly for

housing construction, which profited from low interest rates and the uncertainties emanating from the financial markets.


Orders and sales impacted by the economy

In a continuing difficult economic environment, both orders and sales at ThyssenKrupp fell short of the prior-year

figures.

ThyssenKrupp continuing operations in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %

Order intake million € 34,309 31,905 (7) 12,984 10,231 (21)

Sales million € 32,206 31,219 (3) 11,506 10,710 (7)

EBITDA million € 2,363 1,562 (34) 944 659 (30)

EBIT million € 1,245 339 (73) 549 296 (46)

EBIT margin % 3.9 1.1 — 4.8 2.8 —

Adjusted EBIT million € 1,266 339 (73) 570 122 (79)

Adjusted EBIT margin % 3.9 1.1 — 5.0 1.1 —

EBT million € 852 (133) -- 419 141 (66)

Adjusted EBT million € 873 (133) -- 440 (33) --

Income/(loss) (net of taxes) (attributable to ThyssenKrupp AG's shareholders) million € 576 (220) -- 205 238 16

Basic earnings per share € 1.24 (0.43) -- 0.44 0.46 5

Operating cash flow million € (396) (526) (33) 843 902 7

Free cash flow million € (2,032) (988) 51 387 1,013 162

Employees (June 30) 171,086 155,588 (9) 171,086 155,588 (9)

The continuing operations achieved order intake of €31.9 billion in the first 9 months 2011/2012, 7% down from a year

earlier. Sales decreased by 3% year-on-year to €31.2 billion. In particular the materials business showed a weaker

performance, with low volumes and prices resulting in declining orders and sales. In the capital goods business, by

contrast, order intake – taking into account a major order at Marine Systems in the prior-year period – and sales were

very stable. In the 3rd quarter 2011/2012, orders were 12% lower quarter-on-quarter, and sales 1% higher. Here again,

the capital goods businesses performed significantly better.

Including Stainless Global, the Group’s order intake fell slightly by 7% to €35.6 billion in the first 9 months 2011/2012,

and sales by 3% to €35.4 billion.

Adjusted EBIT positive

Adjusted EBIT from continuing operations decreased to €339 million from €1,266 million a year earlier. With the

exception of Steel Americas, all business areas reported positive adjusted EBIT. In the materials business, however, the

€778 million loss at Steel Americas could not be offset by the other business areas Steel Europe and Materials Services.

Adjusted EBIT from the materials businesses amounted to €(372) million. Our capital goods businesses achieved

adjusted EBIT of €1,306 million, with the biggest contribution coming from Elevator Technology. Corporate costs and

consolidation items amounted to €(595) million.

Adjusted EBIT margin from continuing operations decreased from 3.9% to 1.1%.


Including Stainless Global, the Group’s adjusted EBIT slipped from €1,336 million to €278 million; adjusted EBIT margin

fell from 3.7% to 0.8%.

EBIT from continuing operations affected by special items

EBIT from continuing operations in the reporting period came to €339 million; positive and negative special items offset

each other. In the 3rd quarter, net positive special items contributed €174 million to EBIT from continuing operations.

They included disposal gains at Components Technology from the deconsolidation of the US foundry Waupaca. This

was partly offset by special items of €133 million in connection with the so-called rail cartel at Materials Services. There

were also charges for restructuring costs, in particular at Elevator Technology.

Special items from continuing operations in million €

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %

EBIT 1,245 339 (73) 549 296 (46)

+/- Disposal losses/gains 21 (404) -- 21 (355) --

+ Restructuring expense 0 43 — 0 3 —

+ Impairment 0 191 — 0 0 —

+ Other non-operating expense 0 198 — 0 178 —

- Other non-operating income 0 (28) — 0 0 —

Adjusted EBIT 1,266 339 (73) 570 122 (79)

Taking into account negative EBIT of €(769) million from Stainless Global, the Group’s EBIT including discontinued

operations was €(434) million. The reasons for this were €110 million special items at Stainless Global, mainly due to

restructuring and impairment of the Nirosta melt shop, and €574 million fair value adjustments in connection with the

carve-out of Stainless Global. Group EBIT margin including discontinued operations was (1.2)%.


Analysis of the statement of income

At €31,219 million, net sales from continuing operations in the first 9 months of fiscal year 2011/2012 were

€987 million or 3% lower than in the corresponding prior-year period. The cost of sales from continuing operations

decreased by only €60 million altogether; a mainly sales-related reduction in material expense was partly offset by a

rise in fixed manufacturing costs. Gross profit from continuing operations decreased to €3,947 million, while gross

margin dropped from 15% to 13%.

Research and development cost from continuing operations was 7% higher than in the corresponding prior-year period.

Selling expenses from continuing operations increased by €72 million, mainly due to higher expenses for sales-related

freight and insurance charges. General and administrative expenses from continuing operations decreased by

€44 million, mainly due to lower personnel expense.

The €15 million rise in other income from continuing operations was mainly the result of insurance recoveries. The

€277 million increase in other expenses from continuing operations was caused particularly by goodwill impairment

charges in connection with the sale of the civil operations of Blohm + Voss and expenses in connection with the rail

cartel proceedings.

Other gains and losses attributable to continuing operations were €324 million higher than a year earlier. Gains on the

disposal of the US foundry Waupaca, the Xervon group and the Brazilian Automotive Systems activities were recognized

in the reporting period; these were partly offset by negative exchange rate effects from non-income taxes.

The €48 million increase in financing income was caused mainly by exchange rate effects in connection with finance

transactions, partly offset by reduced interest income from financial receivables. The €94 million rise in financing

expense from continuing operations mainly reflected exchange rate effects in connection with finance transactions and

increased interest expense for financial debt.

The tax expense from continuing operations of €126 million resulted in an effective tax charge of (94.7)% in the first 9

months 2011/2012, mainly due to valuation allowances for deferred income tax assets.

After taking into account income taxes, the loss from continuing operations came to €259 million, a deterioration of

€812 million from the prior-year period.

Including the €721 million after-tax loss from discontinued operations attributable to Stainless Global, there was a net

loss of €980 million in the reporting period, compared with net income of €604 million in the prior year.

A net loss of €42 million was attributable to non-controlling interest in the reporting period, compared with a net loss of

€22 million in the corresponding prior-year period. The €20 million increase related mainly to companies in the

Components Technology business area hit by declining demand in the wind energy and infrastructure sectors in China.

Earnings per share based on the net income/loss attributable to the shareholders of ThyssenKrupp AG decreased year-

on-year by €3.17 to €(1.82). Earnings per share from continuing operations declined by €1.67 to €(0.43).


Net financial debt and capital expenditure

We have made clear progress with our goal of reducing net financial debt. Net financial debt, including Stainless Global,

was €5,800 million at June 30, 2012 and was therefore lower both year-on-year (June 30, 2011: €6,249 million) and

quarter-on-quarter (March 31, 2012: €6,480 million). The decrease from the prior quarter resulted from the reduction of

inventories and the disposal of the US foundry Waupaca. Taking into account cash, cash equivalents and committed

credit lines totaling €7,283 million and our balanced maturity structure, ThyssenKrupp is solidly financed.

ThyssenKrupp invested a total of €1,481 million in the first 9 months 2011/2012, 24% less than a year earlier.

€1,421 million was spent on property, plant and equipment and intangible assets, and €60 million on the acquisition of

businesses, shareholdings and other financial assets. Excluding the major projects in Brazil and the USA, capital

expenditures came to €1,089 million, compared with €757 million in the prior year.

Current issuer ratings

ThyssenKrupp has been rated by Moody's and Standard & Poor's since 2001 and by Fitch since 2003. In the 3rd

quarter of the current fiscal year Standard & Poor's lowered our long-term rating from BB+ to BB. At Standard & Poor's

our rating continues to be below investment grade. At Moody's and Fitch, however, our rating remains investment

grade.

Long-term

rating Short-term

rating Outlook

Standard & Poor's BB B Negative

Moody's Baa3 Prime-3 Negative

Fitch BBB- F3 Negative

12 Interim Report 9 months 2011/2012 Business area review

Business area review

Steel Europe Steel Europe in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %


Sales million € 9,763 8,316 (15) 3,518 2,900 (18)

EBIT million € 880 170 (81) 322 47 (85)

EBIT margin % 9.0 2.0 — 9.2 1.6 —

Adjusted EBIT million € 880 184 (79) 322 52 (84)


Employees (June 30) 33,702 28,104 (17) 33,702 28,104 (17)

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

Order intake at Steel Europe in the first 9 months 2011/2012 was down 15% year-on-year at €8.2 billion. This was

partly the result of a 9% decrease in order volumes; orders in the 3rd quarter in particular were significantly lower. The

decline also reflects the disposal of the Metal Forming business, which was still included in the prior-year figures.

Sales fell by 15% to €8.3 billion. Apart from the disposal of Metal Forming, this was mainly due to a demand-related 9%

drop in shipments to 9.1 million tons. Average selling prices improved slightly, against the market trend. The decline in

sales came from major customer sectors such as cold-rollers. However, our shipments to the tube industry increased.

Sales of electrical steel decreased for volume and price reasons.

Production cutbacks

Crude steel production including supplies from Hüttenwerke Krupp Mannesmann decreased by 13% to 8.9 million tons

in the reporting period. The downstream rolling and coating operations were likewise operating below capacity. On

account of the continued market weakness, blast furnace 9 which is currently shut down will not be restarted in the

current fiscal year. With order intake at Steel Europe remaining weak, short-time working is being introduced at five

locations from August 2012.

EBIT down sharply

Earnings before interest and taxes (EBIT) decreased by € 710 million to €170 million in the reporting period. EBIT

margin slipped from 9.0% to 2.0%. The decline in earnings was mainly the result of weak volumes.


Steel Americas Steel Americas in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %

Order intake million € 856 1,628 90 504 413 (18)

Sales million € 775 1,587 105 429 543 27

EBIT million € (887) (781) 12 (190) (263) (38)

EBIT margin % — — — — — —

Adjusted EBIT million € (887) (778) 12 (190) (262) (38)

Adjusted EBIT margin % — — — — — —

Employees (June 30) 3,995 4,236 6 3,995 4,236 6

With its steelmaking and processing plants in Brazil and the USA the Steel Americas business area is tapping into the

North American market for premium flat steel products. Strategic options for the business area are currently being

examined with an open mind (see page 3).

Market position strengthened

In a difficult business environment, Steel Americas made progress in developing its customer and product mix in the

first 9 months 2011/2012. We won more new customers in the pipe, agricultural and construction machinery sectors,

and particularly in the automotive and tube industries applied to all major customers for certification for numerous

products, already receiving first approvals. In the first 9 months 2011/2012 order intake (€1.6 billion) and sales (€1.6

billion) showed clear year-on-year improvements. We sold over 2.0 million tons of flat steel altogether on the North

American market.

Difficult market environment and ramp-up weigh on EBIT

In the first 9 months 2011/2012 Steel Americas posted a loss of €781 million, €106 million lower than a year earlier.

The main reason for the negative EBIT was the difficult business environment on the North American market with an

unsatisfactory price level above all in service center business, which is particularly important for the startup. Steel

prices were also impacted by the decline in the price of scrap, though this recently showed signs of stabilization.

Earnings were also weighed down by considerable costs from high consumption of reducing agents due to the not yet

efficient utilization of the blast furnaces and unscheduled shutdowns.

Further progress with production startup - coke oven battery C operating to plan

The integrated iron and steel mill near Rio de Janeiro produced around 2.5 million tons of slabs for supply to the US

processing plant and Steel Europe in the reporting period. With coke oven battery C, the Brazilian site’s final central unit

was successfully commissioned. As a result, the technical ramp-up can be completed by the end of the current fiscal

year, after which the optimization phase can begin. The startup of the final hot-dip galvanizing line in the USA will

depend on market demand.

Valuation risks

With the decision by the Executive Board of ThyssenKrupp AG in May 2012 to review strategic options in all directions

for the Steel Americas business area, a so-called “triggering event” pursuant to IAS 36 occurred in the 3rd quarter of

the fiscal year, making it necessary to carry out an impairment test on the business area’s carrying amounts. As of June

30, 2012 the carrying amounts to be tested amounted to €7,866 million, of which €6,871 million relates to property,

plant and equipment.

Fair values less costs to sell are currently being calculated in accordance with the possible strategic options. Our current

best estimate allows the conclusion that as things stand at present the carrying amounts of the Steel Americas business

area could be essentially covered by the fair value less costs to sell. On this basis no valuation adjustments resulting

from an impairment test under IAS 36 were made in connection with the Steel Americas business area in these interim

financial statements. It cannot be ruled out that in the further course of the process, for example in the event of a sale,

the carrying amounts of the business area might not be fully recoverable.


Materials Services Materials Services in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %


Sales million € 10,995 9,922 (10) 3,980 3,369 (15)

EBIT million € 397 72 (82) 149 (42) --

EBIT margin % 3.6 0.7 — 3.7 (1.2) —



Employees (June 30) 35,440 27,945 (21) 35,440 27,945 (21)

With 500 locations in 40 countries the Materials Services business area specializes in materials distribution including

technical services.

Weak demand, increased price and margin pressure

Materials Services achieved sales of €9.9 billion in the first 9 months 2011/2012, down 10% from the corresponding

prior-year period. Excluding the Xervon group divested in the 1st quarter, the decrease amounted to 6%.

The weakness of the market caused a drop in demand for metals. Except for the North America business, all sectors

and regions were affected. For example warehouse sales of metals in Eastern Europe were lower year-on-year. Rolled

steel and tubes sales were particularly impacted by the weak demand situation. The decline in prices and margins

registered since the middle of last year continued unabated. In addition to warehouse business this also affected the

international direct-to-customer and project business, especially in Europe. Plastics sales mirrored the weak

performance of metals. This was true not only of the Southern European market but also of Germany and most Western

European countries. Our materials and logistics operations for the aerospace sector continued to perform positively with

a significant increase in sales.

Sales of metallurgical raw materials were impacted above all by production cutbacks in the steel industry. The decline in

demand for coke was particularly severe; prices here fell even more steeply than for materials. Our steel mill services

also felt the effects of reduced capacity utilization in the steel industry.


EBIT massively impacted by special items

Materials Services’ EBIT dropped from €397 million to €72 million in the first 9 months. A key reason for this was the

€103 million fine imposed by the Cartel Office in the 3rd quarter and provisions of €30 million in connection with the rail

cartel proceedings. In addition, high price pressure and intense competition in the materials business as well as

massive sales losses in raw materials distribution had a negative impact. Adjusted EBIT came to €222 million; adjusted

EBIT margin fell from 3.6% to 2.2%.

Elevator Technology Elevator Technology in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %

Order intake million € 3,984 4,582 15 1,320 1,575 19

Sales million € 3,864 4,099 6 1,298 1,429 10

EBIT million € 469 365 (22) 151 134 (11)

EBIT margin % 12.1 8.9 — 11.6 9.4 —



Employees (June 30) 45,603 46,656 2 45,603 46,656 2

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.

Orders at record high, strong improvement in sales

Elevator Technology continued its successful business performance in the first 9 months 2011/2012. Orders reached a

new all-time high, and sales showed a strong improvement.

Order intake increased by 15% year-on-year to €4.6 billion, driven by both the new installations business and the

service and modernization activities. Above all on the Chinese and US markets, Elevator Technology significantly

expanded its business volume, in particular with new installations. The level of business in Europe was stable overall.

Elevator Technology’s sales were 6% higher at €4.1 billion. Service business continued to expand, while the

modernization and new installations business also showed pleasing growth. Declining sales in Southern Europe were

more than offset by very positive business in the Asia-Pacific region and the USA.


Adjusted EBIT €421 million

Elevator Technology achieved EBIT of €365 million in the reporting period, compared with €469 million a year earlier.

Adjusted for special items – mainly restructuring costs – earnings came to €421 million. Adjusted EBIT margin was

10.3%. Earnings and margin performance were impacted by continued difficult market conditions in Southern Europe

and a higher share of new installations. 3rd-quarter EBIT improved quarter-on-quarter by €16 million.

Growth and investment program adopted

To safeguard Elevator Technology’s competitiveness moving forward, an extensive growth and investment program for

the Neuhausen location was adopted in the 3rd quarter. In addition to the modernization of the production sites and

optimization of processes, a new technology and customer center is to be built.

Plant Technology Plant Technology in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %

Order intake million € 3,009 2,637 (12) 1,097 832 (24)

Sales million € 2,809 2,953 5 943 1,027 9

EBIT million € 377 379 1 131 140 7

EBIT margin % 13.4 12.8 — 13.9 13.6 —

Adjusted EBIT million € 377 380 1 131 140 7


Employees (June 30) 13,194 14,105 7 13,194 14,105 7

The Plant Technology business area is a leading provider of specialized engineering and construction services with

strong innovative capabilities. The product portfolio includes chemical plants and refineries, equipment for the cement

industry, innovative solutions for the mining and extraction of raw materials, and production systems for the auto

industry. The business area’s equipment and processes open up new possibilities for environmental protection and

sustainability.

Continued strong orders and sales

The business area held up well in a tight market. New orders worth €2.6 billion were won in the first 9 months. However,

owing to the deferral of projects in North Africa, the tight situation on the financial markets and difficulties with project

financing, Plant Technology was unable to match the high level of the prior year. Demand remained pleasingly strong for

production systems for the automotive industry and products for the minerals and mining sector. Among other things

for example the mining business won supply and service contracts in Kazakhstan.


In the first 9 months 2011/2012, Plant Technology’s sales were 5% higher than a year earlier at €3.0 billion.

The high order backlog of €6.3 billion at June 30, 2012 continues to secure a good workload.

Earnings again at high level

The business area achieved EBIT of €379 million in the first 9 months 2011/2012, equaling the high level of the

previous year. EBIT margin at 12.8% was only slightly lower year-on-year.

Plant Technology strengthened by acquisition

At July 02, 2012 Plant Technology acquired London-based Energy & Power Global. Energy & Power is an engineering

consultancy with clients worldwide in the oil, gas and energy industries. The acquisition is part of the strategic

development program adopted in May 2011 and is a further step in the systematic expansion of the technology

business. It will strengthen ThyssenKrupp’s engineering capabilities in the global oil and gas business.

Components Technology Components Technology in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %

Order intake million € 5,208 5,464 5 1,811 1,828 1

Sales million € 5,147 5,485 7 1,779 1,852 4

EBIT million € 382 756 98 141 459 226

EBIT margin % 7.4 13.8 — 7.9 24.8 —



Employees (June 30) 31,049 27,775 (11) 31,049 27,775 (11)

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 higher

Components Technology continued its successful performance in the first 9 months 2011/2012. Despite the sale of the

chassis component manufacturer ThyssenKrupp Automotive Systems Industrial do Brasil, order intake increased year-

on-year by 5% to €5.5 billion. Both the auto and truck component business and the construction equipment component

business achieved growth. The wind energy business slowed due to the lack of grid connections and technical

challenges in the offshore area. The US automotive business continued to show a very positive market performance.

However, in Brazil demand for cars and trucks has been weaker since the beginning of the year. Despite falling vehicle

sales in Europe overall, the business area profited from the growth of major customers and brisk demand in the mid-size

and premium segments.


In line with the positive trend in orders, sales increased year-on-year by 7% to €5.5 billion.

Further rise in EBIT, portfolio optimized

Components Technology’s EBIT in the first 9 months was significantly higher at €756 million. This figure includes

positive special items relating to the sale of ThyssenKrupp Automotive Systems Industrial do Brasil and the US foundry

Waupaca. Both disposals are part of the strategic development of ThyssenKrupp into a diversified industrial group.

Adjusted EBIT was down from the prior year at €365 million. The main reasons were weaker demand in the wind energy

and infrastructure sectors in China and startup costs for new products and plants. Adjusted EBIT margin was 6.7%.

Marine Systems Marine Systems in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %

Order intake million € 2,730 1,409 (48) 2,155 456 (79)

Sales million € 1,202 880 (27) 479 294 (39)

EBIT million € 192 (32) -- 62 23 (63)

EBIT margin % 16.0 (3.6) — 12.9 7.8 —



Employees (June 30) 5,398 3,781 (30) 5,398 3,781 (30)

After successful strategic reorganization, the Marine Systems business area is focused exclusively on naval

shipbuilding. The business area’s core activities include the development, construction and refit of submarines and

naval surface vessels as well as extensive associated services.

Stable upward trend in order intake and sales

The market environment in naval shipbuilding is characterized by the need to protect international sea routes and

sovereign territory. This led to demand for frigates and submarines in countries outside Europe. Marine Systems’ order

intake amounted to €1.4 billion in the reporting period; the higher prior-year figure included a major order worth around

€2.0 billion. In the reporting period a further contract of comparable size was negotiated; there are good prospects of

this being received in the 4th quarter.


In the first 9 months 2011/2012 Marine Systems achieved sales of €880 million. When comparing this with the prior-

year figure of €1,202 million it should be noted that the civil shipbuilding activities are no longer included from February

2012 and that sales in the prior year were significantly influenced by one-time effects from the contractual agreement

with Greece regarding the restructuring of the submarine contracts.

In the course of the first 9 months 2011/2012 orders in hand increased further, reaching €7.0 billion on June 30, 2012.

Adjusted earnings at good level

Marine Systems’ EBIT came to €(32) million, down from €192 million a year earlier. Earnings in the reporting period

were impacted by special items of €172 million, relating to impairment charges in particular on goodwill in connection

with the sale of the civil shipbuilding operations. Adjusted EBIT remained at a good level of €140 million, and adjusted

EBIT margin was 15.9%, compared with 16.0% the year before.

Corporate at ThyssenKrupp AG Corporate comprises the Group’s head office including management of the business areas. It also includes the business

services activities in the areas of finance, communications, IT and human resources, as well as non-operating real

estate and inactive companies. Sales of services by Corporate companies to Group companies in the reporting period

came to €106 million, up from €96 million a year earlier.

EBIT amounted to €(324) million, almost level with the €(319) million reported in the prior-year period. Adjusted EBIT

came to €(328) million, compared with €(298) million in the first 9 months of the prior fiscal year.

Stainless Global (discontinued operation) Stainless Global in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %

Order intake* million € 4,633 4,281 (8) 1,360 1,291 (5)

Sales* million € 5,047 4,812 (5) 1,586 1,606 1

EBIT million € 66 (769) -- 0 (145) —

EBIT margin % 1.3 (16.0) — 0.0 (9.0) —

Adjusted EBIT million € 66 (58) -- 0 (21) —

Adjusted EBIT margin % 1.3 (1.2) — 0.0 (1.3) —

Employees (June 30) 11,339 11,806 4 11,339 11,806 4

* including internal orders/sales within the Group

The discontinued operation Stainless Global produces premium stainless steel flat products and high-performance materials such as nickel alloys, titanium and zirconium.


Order intake and sales lower

Business at Stainless Global was weighed down by declining prices for important raw materials like nickel. Due to the

lower raw material prices, alloy surcharges slipped and the value of new orders fell by 8% to €4.3 billion although

volumes increased by 5% to 1.6 million tons. 1.8 million tons of stainless steel flat products and 32,000 tons of high-

performance materials were produced. Prices for high-performance materials are many times higher than those for

stainless products.

Total shipments were 4% higher year-on-year at 1.6 million tons. Despite this, sales decreased by 5% to €4.8 billion

due to the generally lower price level and reduced alloy surcharges.

EBIT down from prior year

Following further fair value adjustments of €59 million in connection with the carve-out of Stainless Global, EBIT

decreased from €66 million in the first 9 months of the prior year to €(769) million. EBIT margin dropped from 1.3% to

(16.0)%. In addition, the generally weaker earnings situation was impacted by the continuing difficult market

environment for stainless flat products and the associated price pressure. The reduced nickel price and restructuring

provisions of €63 million in connection with the planned relocation of the Düsseldorf-Benrath site and the closure of the

Krefeld steel plant also had a negative effect. The earnings figure also includes losses of €136 million at the new

stainless mill being started up in the USA; this includes depreciation of €24 million which is not part of earnings from

discontinued operations. The high-performance alloys business profited from the continued stable market situation for

nickel alloys. Furthermore, with the classification as a discontinued operation, non-current assets are no longer

depreciated. In the first 9 months of 2011/2012 this resulted in the absence of depreciation expenses of €143 million.

However, impairment charges of €47 million were recorded, mainly for the Krefeld site.

Stainless steel mill in the USA on schedule

At the US site in Calvert construction work and the ramp-up of already commissioned equipment is continuing as

planned. The ramp-up of the hot-rolled annealing and pickling line in the cold-rolling mill is almost complete.

Construction work on the 1 million ton per year capacity melt shop is also proceeding on schedule; the start of

production is scheduled for December 2012. Until the melt shop is ramped up the location will continue to be supplied

with hot band and slabs from the European mills.

ThyssenKrupp including Stainless Global

ThyssenKrupp including Stainless Global in figures

9 months ended

June 30, 2011

9 months ended

June 30, 2012

Change in %

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Change in %

Order intake* million € 38,228 35,630 (7) 14,120 11,362 (20)

Sales* million € 36,487 35,409 (3) 12,851 12,116 (6)

EBITDA million € 2,560 1,409 (45) 983 573 (42)

EBIT million € 1,315 (434) -- 545 151 (72)

EBIT margin % 3.6 (1.2) — 4.2 1.2 —

Adjusted EBIT million € 1,336 278 (79) 566 101 (82)


EBT million € 904 (927) -- 407 (12) --

Adjusted EBT million € 925 (215) -- 428 (62) --

Net income/(loss) (attributable to ThyssenKrupp AG's shareholders) million € 626 (938) -- 212 109 (49)

Basic earnings per share € 1.35 (1.82) -- 0.46 0.21 (54)

Operating cash flow million € (805) (848) (5) 709 871 23

Free cash flow million € (2,608) (1,586) 39 198 889 349

Employees (June 30) 182,425 167,394 (8) 182,425 167,394 (8)

* including internal orders/sales within the Group

Including Stainless Global, the Group’s order intake was 7% down from the prior year at €35.6 billion and sales were 3%

lower at €35.4 billion. The Group’s EBIT came to €(434) million, compared with €1,315 million a year earlier. EBIT

margin decreased from 3.6% to (1.2)%.

21 Interim Report 9 months 2011/2012 ThyssenKrupp stock

ThyssenKrupp stock

The debt crisis in Europe and the associated uncertain macroeconomic expectations were key factors affecting the

performance of the stock markets in the reporting period.

Viewed on the stock exchange as an early cyclical, ThyssenKrupp’s stock profited in the 1st quarter 2011/2012 from

signs of a resolution of the debt crisis and associated hopes of an economic recovery, but its performance in the 2nd

and 3rd quarters was severely impacted by growing economic uncertainty. In addition, there was no substantial

improvement in the earnings situation at Steel Americas. These factors completely overshadowed the considerable

progress made by ThyssenKrupp in implementing its strategic development program, which international investors view

very positively.

Subsequently the stock decoupled from the DAX and DJ STOXX: After a high of €22.86 on February 09, 2012, it stood

at €12.84 on June 29, 2012, down around 30% from September 30, 2011. In the same period the DAX and DJ STOXX

indices gained 16% and 14% respectively.

2012 employee stock program

In spring 2012 around 71,000 employees at the Group’s German companies were again given the opportunity to buy

ThyssenKrupp shares on special terms. Participation in the program reached 60%, a new record. One in two employees

also participated in the previous programs between 2001 and 2011.

In total, approximately 634,000 shares were issued to employees this time. With a price of €17.21 per share each

employee was able to purchase fifteen shares. The offer was based on the so-called 50/50 model: employees buy

ThyssenKrupp shares worth up to €270 and receive a 50% allowance – i.e. up to €135 – from their employer. The 50%

employer allowance is exempt from taxes and social security under German law (§ 3 No. 39 Income Tax Law, EStG).

Besides the program in Germany there are also employee stock programs in France, Spain and the UK, adapted in each

case to local conditions.

22 Interim Report 9 months 2011/2012 Innovations

Innovations

New TechCenter Carbon Composites strengthens materials competence

To strengthen the Group’s materials competence in intelligent lightweight construction, ThyssenKrupp opened the

TechCenter Carbon Composites in Dresden in the 3rd quarter 2011/2012. The new development center will expand the

Group’s competencies in carbon composites and interconnect and support Groupwide projects in all business areas.

Carbon composites open up new and promising fields of application – for example through multi-material design in

combination with innovative steel solutions. Over the next three years the Group will build capacities and test facilities

for this in Dresden to look into the design, simulation and manufacture of carbon composite parts. The new materials

will have applications in lightweight automobile construction and general industry. With its high-strength steels and

sandwich composites ThyssenKrupp has been supplying key contributions for resource-friendly mobility for many years.

Premium electrical steels for solar sports car

Together with Bochum University, ThyssenKrupp engineers are developing a new type of motor for a solar-powered

sports car. The use of premium electrical steels is intended to increase efficiency so the vehicle requires as little energy

as possible. Soft-magnetic electrical steels from the Steel Europe business area are already used in the drive motors of

many hybrid and electric vehicles. The partnership with the university is an ideal platform to study the interplay between

power electronics and electrical steel as a motor material and evaluate the various factors affecting the overall

performance of the vehicle. For the first time drive motors with electrical steel cores are to be fitted to all four wheels. A

team of students will unveil the sports car in May 2013, and the acid test will come in October 2013 when it will race in

the World Solar Challenge in Australia: 3,000 kilometers from north to south across the continent, powered only by the

sun’s rays.

23 Interim Report 9 months 2011/2012 Employees

Employees

ThyssenKrupp employed 155,588 people in its continuing operations on June 30, 2012, 15,498 or 9.1% fewer than a

year earlier. The decline was due to restructuring measures and in particular to disposals in connection with the

strategic portfolio optimization and affected the business areas Steel Europe, Materials Services, Components

Technology and Marine Systems. Steel Americas, Elevator Technology and Plant Technology recruited new employees.

Compared with September 30, 2011 the number of employees decreased by 12,972 or 7.7%. The workforce in

Germany decreased by 5,394 or 8.5% to 57,817; its share in the total workforce was 37%.

The workforce in the rest of the world totaled 97,771 at the end of June 2012, 7,578 or 7.2% fewer than on

September 30, 2011. 21% of all employees were based in Europe outside Germany, 13% in the NAFTA region, 14% in

South America, 14% in Asia – mainly in China and India – and 1% in the rest of the world.

Including Stainless Global, ThyssenKrupp had 167,394 employees worldwide at the end of June 2012, 15.031 or 8.2%

fewer than a year earlier. Compared with September 30, 2011 the workforce decreased by 12,656 or 7.0%.

Against the background of continuing weak orders the Steel Europe business area introduced short-time working from

August 2012. It will initially affect five sites. In previous weeks the lower capacity utilization rates of the plants had

initially been offset using instruments such as flexible working-time accounts, leave accounts and repair shifts. The

possibility of carrying out skill-upgrading programs during the period of short-time working is being examined together

with the works councils.

24 Interim Report 9 months 2011/2012 Financial position

Financial position

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. For the reporting period and the corresponding prior-year period the

discontinued operations comprise the activities of Stainless Global.

In the first 9 months 2011/2012 there was a net cash outflow from operating activities of €848 million, compared with

€805 million in the prior year. Cash outflow from continuing operations increased by €130 million to €526 million. A

major reason for this was the €783 million decrease in net income before impairment losses/reversals and before

deferred taxes; in addition there was a €419 million higher reversal of gains on disposals of non-current assets, mainly

relating to gains from the disposal of previously consolidated companies in the reporting period. This was partly offset

by an €859 million decrease in funds tied up in operating assets and liabilities as well as proceeds of €168 million in the

3rd quarter 2011/2012 due to a change to the insolvency protection of partial retirement obligations. In the

discontinued operations, operating cash flow improved by €87 million to €(322) million.

Cash outflow from investing activities decreased year-on-year by €1,065 million to €738 million. The continuing

operations reported a €1,174 million decrease. The main reasons for this were €613 million lower capital expenditure

for property, plant and equipment and €675 million higher proceeds from the disposal of previously consolidated

companies – mainly the Xervon group, the Brazilian Automotive Systems activities and the US foundry Waupaca. In the

discontinued operations cash outflow from investing activities increased by €109 million, mainly due to higher capital

expenditure for property, plant and equipment.

Free cash flow, i.e. the sum of operating cash flows and cash flows from investing activities, was negative in both the

continuing operations and the discontinued operations; however, the continuing operations recorded a significant

improvement of €1,044 million from the prior year. Overall, free cash flow in the reporting period was €(1,586) million.

Cash inflow from financing activities in the continuing operations came to €498 million, €265 million higher than in the

prior year. This increase resulted mainly from two offsetting effects. On the one hand net borrowings were €777 million

higher, while on the other there was a cash outflow from other financing activities of €162 million, compared with a

€253 million cash inflow in the prior year. The cash outflow of €415 million resulting from the change was mainly due to

the reduction in liabilities to associated companies and the transfer to the factoring company of payments received from

customers in respect of already sold receivables in the reporting period. Cash inflow from financing activities also

decreased year-on-year due to higher dividend payments. In addition there were lower proceeds from non-controlling

interest to equity; in the prior year proceeds from Vale S.A. to the equity of ThyssenKrupp Companhia Siderúrgica do

Atlántico Ltda. were recognized here. In the discontinued operations there was a cash inflow from financing activities of

€566 million, virtually unchanged from the prior-year period; both in the reporting period and in the corresponding

prior-year period the financing activities of the discontinued operations mainly related to the integration of Stainless

Global into the Group financing system. Overall, cash inflow from financing activities increased by €261 million to

€1,064 million.


Analysis of the statement of financial position

Compared with September 30, 2011, total assets increased by €315 million to €43,918 million. This includes a

currency translation-related increase of €1,296 million, mainly due to movements in the US dollar exchange rate.

Non-current assets increased by a total of €705 million; exchange rate effects alone resulted in an increase of €735

million. The €188 million rise in intangible assets was mainly due to exchange rate effects and higher goodwill in

connection with acquisitions in the Elevator Technology and Plant Technology business areas. The €300 million net

increase in property, plant and equipment was mainly due to €530 million currency translation effects; this was partly

offset by the deconsolidation of the US foundry Waupaca. Deferred tax assets increased by €213 million; in addition to

currency translation effects this was mainly caused by the increase in tax-deductible losses in Germany and abroad.

Current assets decreased overall by €390 million. Excluding exchange rate effects, which led to an increase of €560

million, there was a decrease of €950 million.

Inventories stood at €8,187 million on June 30, 2012, up €82 million from September 30, 2011. This increase was

mainly due to currency translation effects.

Trade accounts receivable increased by €623 million. In addition to exchange rate effects, which caused an increase of

€124 million, the ramp-up of the new steel plants and higher percentage completion rates on long-term construction

contracts were the main reasons for the increase.

The €177 million decrease in other current financial assets was mainly due to the recognition of derivatives. Other

current non-financial assets increased by €373 million, due in particular to higher refund entitlements in connection with

taxes not based on income as well as increased advance payments for the procurement of inventories.

The €170 million decrease in cash and cash equivalents was mainly attributable to the high negative free cash flow

from continuing operations of €(988) million in the reporting period; this was partly offset by the issue of a new €1,250

million bond in February 2012.

Assets held for sale decreased by €1,158 million to €4,603 million – mainly due to the sale of the civil operations of

Blohm + Voss (€620 million) in the Marine Systems business area in the 2nd quarter 2011/2012 and the disposals of

the Xervon group in the Materials Services business area (€451 million) and the Chinese operations of the Metal

Forming group in the Steel Europe business area (€65 million) in November 2011. In addition there was a net reduction

of €22 million at Stainless Global, where increases as a result of continuing operation were partly offset by impairment

charges of €574 million based on the agreement with Outokumpu.

Total equity at June 30, 2012 was €9,088 million, down €1,294 million from September 30, 2011. The main factors in

this were the net loss of €980 million, dividend payments of €284 million and the net actuarial losses from pensions

and similar obligations (€500 million after taxes) recognized in other comprehensive income. This was partly offset by

unrealized gains from foreign currency translation (€470 million) recognized in other comprehensive income.


Non-current liabilities increased by a net €344 million. This included a €556 million increase in accrued pension and

similar obligations, which as well as exchange rate effects included a €757 million rise due to the updated interest rates

used for the revaluation of pension and healthcare obligations at June 30, 2012; this was partly offset by the disposal

of the US foundry Waupaca and plan changes. The €202 million decrease in deferred tax liabilities was mainly due to

additional possibilities for offsetting against higher deferred tax assets. In addition, non-current financial debt decreased

by a net €103 million. An increase in bonds from the above-mentioned bond issue in February 2012 was partly offset

by €190 million lower liabilities to financial institutions. Further reductions resulted mainly from reclassifications to

current financial debt, including €1,002 million in connection with a bond redeemable in February 2013 and €249

million for notes payable due in April 2013.

Current liabilities increased overall by €1,265 million; exchange rate effects accounted for €376 million of this.

The €227 million decrease in other current provisions was mainly due to the implementation of restructuring measures,

provisions for selling, litigation and financing risks, and provisions in connection with CO2 emissions allowances. Current

financial debt increased by €2,122 million; this included €872 million higher liabilities to financial institutions and

€1,251 million for the above-mentioned reclassifications of a bond and notes payable.

Trade accounts payable decreased by €506 million; all continuing operations contributed to this. In the Components

Technology business area the sale of the US foundry Waupaca was the main reason for the decline.

Other current financial liabilities decreased by €332 million, mainly due to the reduction of liabilities to associated

companies and the accounting for derivatives. The €994 million increase in other current non-financial liabilities mainly

reflected higher advance payments as well as exchange rate effects.

Liabilities associated with assets held for sale decreased by €724 million to €2,500 million, primarily due to the above-

mentioned disposals of the Xervon group (€397 million) and the civil operations of Blohm + Voss (€325 million).

27 Interim Report 9 months 2011/2012 Subsequent events / Expected developments

Subsequent events

There were no reportable events.

Expected developments and associated opportunities and risks

Global economic growth remaining weak

Global economic growth will remain extremely weak over the rest of the year. The main causes of this are the continuing

debt crisis in some industrialized countries and slower rates of growth in the emerging economies. After 3.3% last year,

global economic growth is expected to drop below 3% in 2012, with the emerging countries expanding overall by 5.2%

and the industrialized countries by only 1.4%. For 2013 we expect somewhat stronger economic momentum.

High sovereign debt, public spending constraints and cautious business spending will result in a 0.6% decline in GDP in

the euro zone in 2012. The southern European countries in particular are in a recession. In Germany, economic growth

of 0.5% is expected in view of the good labor market situation and rising consumer spending.

In the USA, economic growth could increase to over 2% in 2012. Positive impetus is coming mainly from consumer and

business spending. In Japan, the catch-up process after the natural disaster last year will lead to an expansion of 2.4%.

In many emerging countries, the previously high growth rates have slowed appreciably. Nevertheless the BRIC nations

will remain a pillar of the global economy in 2012. GDP growth of 7.8% is expected for China and 6.6% for India. Russia

and particularly Brazil will likely record lower growth rates.

Sector activity mixed

Flat carbon steel – Against the background of the overall economic situation the short- to medium-term prospects for

the steel markets have darkened further. Global finished steel demand is expected to grow by only 3% this year.

Demand on the European market looks likely to fall by around 5%. A significant improvement in demand after the

summer break is hardly to be expected. Steel demand in Germany will probably decline by around 4%. The US steel

market is expected to stagnate in the further course of the year with an uncertain price trend. Steel demand will increase

further in most of the emerging countries; we continue to expect a rise of around 4% for the Chinese market.

Automotive – The global auto market will continue to grow in 2012. Worldwide production of cars and light trucks is

expected to increase by around 6% year-on-year to 78.3 million units. In the USA, production could rise by a further

12%, and in Japan catch-up demand will result in an estimated increase of 15%. In China, growth will fall to 9%.

Western European auto production will probably decline by 6% in 2012. In Germany the production level will remain

stable but because of statistical changes a decline of 4% will be reported.

28 Interim Report 9 months 2011/2012 Expected developments

Machinery – The machinery sector will not maintain its very high 2011 growth rates in 2012, with capital spending in

several countries subdued. Growth could slow to 6% in the USA and 12% in China. Production in Japan is expected to

rise by 2%. In Germany, production is forecast to stabilize at the high level of 2011.

Construction – Construction activity will continue to show regional differences in 2012. In Western Europe little more

than stagnation is expected, while the prospects for some Central and Eastern European countries are brighter. The US

construction industry could improve slightly. Construction activity in India and China will remain relatively strong with

growth rates of 6% and 9% respectively.

Situation on important sales markets

2011 2012*

Demand for finished steel, million tons

World 1,373 1,422

Germany 40.7 40.8

USA 89 94

China 624 649

Vehicle production, million cars and light trucks

World 73.8 78.3

Western Europe/Turkey 15.1 14.2

Germany** 6.1 5.8

USA 8.5 9.5

Japan 7.9 9.1

China** 16.0 17.5

Brazil** 3.1 3.1

Machinery production, real, in % versus prior year

Germany 12.1 0.0

USA 9.5 6.0

Japan 10.5 2.0

China 17.2 12.0

Construction output, real, in % versus prior year

Germany 13.4 1.7

USA 1.1 5.1

China 14.6 7.8

* Forecast ** different statistical basis for 2012: excl. CKD (complete knock-down kits)

Expected results of operations (continuing operations)

The consequences of the sovereign debt crisis have weakened our core markets in fiscal year 2011/2012; continuing

economic uncertainties cannot be ruled out.

Based on the stability of our less cyclical capital goods operations as well as the positive earnings contributions of Steel

Europe and Materials Services, we continue to expect to achieve adjusted EBIT in the mid three-digit million euro range

at Group level for fiscal year 2011/2012.

Our expectations for the 4th quarter versus the 3rd quarter of the current fiscal year are as follows:

– In the materials operations, we expect earnings at Steel Europe and Materials Services to remain steady with

volumes and prices influenced by continuing intense competition. At Steel Americas, the further operational ramp-up

should bring improvements; however, the price pressure due to the market entry and the general market situation will

have a significant offsetting effect.

– In the capital goods operations, earnings contributions at Plant Technology should remain largely steady at a high

level. At Elevator Technology, further earnings effects due to the weakening of the markets in Southern Europe

cannot be ruled out. In the Components Technology business, the absence of Waupaca’s earnings contributions and

lower capacity utilization rates mainly for slewing bearings for wind turbines will result in lower earnings. Earnings

contributions at Marine Systems will remain steady.


For fiscal year 2012/2013:

– Assuming that the sovereign debt crisis will continue to weigh down on economic activity but that the global

economy will not enter a recession, we expect sales to continue at the level achieved in fiscal 2011/2012.

– Improvements in earnings should result from structural changes during the further implementation of our strategic

development program. This may include measures to achieve sustainable cost reductions or optimize the portfolio.

– The deconsolidation of Steel Americas would contribute considerably to improving earnings.

Opportunities through growth in emerging countries

ThyssenKrupp can generate an edge in the global market with its innovative and resource-friendly products and

processes. Particularly in the emerging countries we therefore see considerable growth opportunities given an

improvement in the economic environment. In addition, through our corporate program impact we are implementing

value-enhancing measures and increasing productivity on a sustainable basis in all areas of the Group.

Risks in the economic environment

The current economic environment and particularly the debt crisis in the euro zone and the uncertainties on the financial

markets pose risks for a large part of our activities. Through systematic risk management we continuously monitor and

evaluate our market prospects. This allows us to respond swiftly to current developments and contain our risks. There

are no risks that could threaten the Group’s ability to continue as a going concern.

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

foundation in fiscal 2011/2012. At June 30, 2012 the Group had €7.3 billion in cash, cash equivalents and 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.

Our steel activities continue to operate in a difficult market environment, which involves risks for sales volumes and

prices. Fluctuating raw material prices and rising energy prices represent further uncertainties for the business areas

Steel Europe and Steel Americas. To secure our competitiveness we respond as far as possible with adjusted selling

prices and alternative procurement sources. Close cooperation of all experts in the steel area is also helping increase

and improve production at the new plants of Steel Americas.


However, the changed assessment of the strategic situation of the Steel Americas business area has made it necessary

to review its carrying amounts. Fair values less costs to sell are currently being calculated in accordance with the

possible strategic options. Our current best estimate allows the conclusion that as things stand at present the carrying

amounts of the Steel Americas business area could be essentially covered by the fair value less costs to sell. On this

basis no valuation adjustments resulting from an impairment test under IAS 36 were made in connection with the Steel

Americas business area in these interim financial statements. It cannot be ruled out that in the further course of the

process, for example in the event of a sale, the carrying amounts of the business area might not be fully recoverable.

The diversified business activities of ThyssenKrupp and our good and long-standing relationships with our global

customers contribute to reducing our dependence on individual sales markets and sectors. Further expansion of our

presence in fast-growing emerging economies will strengthen this effect.

We continuously monitor political developments in crisis regions and evaluate the effects on our current and planned

business activities. If needed, we can respond swiftly to deteriorating conditions and so minimize our country-specific

risks.

Changes to the legal framework at national or European 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.

Beyond this, the detailed information contained in the risk report on pages 108-119 of our 2010/2011 Annual Report is

still valid.

We report on pending lawsuits, claims for damages and other risks in Note 8.

31 Condensed Interim Financial Report 9 months 2011/2012 Consolidated statement of financial position

ThyssenKrupp AG Consolidated statement of financial position

Assets million €

Note Sept. 30,

2011 June 30,

2012

Intangible assets 4,166 4,354

Property, plant and equipment 03 12,649 12,949

Investment property 301 291

Investments accounted for using the equity method 593 618

Other financial assets 71 93

Other non-financial assets 453 420

Deferred tax assets 940 1,153

Total non-current assets 19,173 19,878

Inventories, net 8,105 8,187

Trade accounts receivable* 5,138 5,761

Other financial assets* 499 322

Other non-financial assets 1,563 1,936

Current income tax assets 134 171

Cash and cash equivalents 3,230 3,060

Assets held for sale 02 5,761 4,603

Total current assets 24,430 24,040

Total assets 43,603 43,918

Equity and Liabilities million €

Note Sept. 30,

2011 June 30,

2012

Capital stock 1,317 1,317

Additional paid in capital 4,684 4,684

Retained earnings 2,833 1,157

Cumulative other comprehensive income 178 589

thereof relating to disposal groups/discontinued operations (Sept. 30, 2011: (19); June 30, 2012: (2))

Equity attributable to ThyssenKrupp AG's stockholders 9,012 7,747

Non-controlling interest 1,370 1,341

Total equity 04 10,382 9,088

Accrued pension and similar obligations 06 6,940 7,496

Provisions for other employee benefits* 197 204

Other provisions* 451 537

Deferred tax liabilities 324 122

Financial debt 6,494 6,391

Other financial liabilities 1 1

Other non-financial liabilities 7 7

Total non-current liabilities 14,414 14,758

Provisions for employee benefits* 300 253

Other provisions* 1,200 973

Current income tax liablilities 409 394

Financial debt 178 2,300

Trade accounts payable* 4,926 4,420

Other financial liabilities* 1,238 906

Other non-financial liabilities 7,332 8,326

Liabilities associated with assets held for sale 02 3,224 2,500

Total current liabilities 18,807 20,072

Total liabilities 33,221 34,830

Total equity and liabilities 43,603 43,918

See accompanying selected notes. * Prior year figure adjusted.

32 Condensed Interim Financial Report 9 months 2011/2012 Consolidated statement of income

ThyssenKrupp AG

Consolidated statement of income million €, earnings per share in €

Note

9 months ended

June 30, 2011*

9 months ended

June 30, 2012

3rd quarter ended

June 30, 2011*

3rd quarter ended

June 30, 2012

Net sales 10 32,206 31,219 11,506 10,710

Cost of sales 11 (27,332) (27,272) (9,697) (9,345)

Gross profit 4,874 3,947 1,809 1,365

Research and development cost (120) (128) (39) (48)

Selling expenses (2,006) (2,078) (692) (693)

General and administrative expenses (1,649) (1,605) (533) (528)

Other income 157 172 46 70

Other expenses (104) (381) (53) (180)

Other gains/(losses) 23 347 (10) 310

Income/(loss) from operations 1,175 274 528 296

Income/(expense) from companies accounted for using the equity method 64 26 19 14

Finance income 663 711 220 333

Finance expenses (1,050) (1,144) (348) (502)

Financial income/(expense), net (323) (407) (109) (155)

Income/(loss) before income taxes 852 (133) 419 141

Income tax (expense)/income (299) (126) (156) 76

Income/(loss) from continuing operations 553 (259) 263 217

Discontinued operations (net of tax) 51 (721) 7 (130)

Net income/(loss) 604 (980) 270 87

Attributable to:

ThyssenKrupp AG's stockholders 626 (938) 212 109

Non-controlling interest (22) (42) 58 (22)

Net income/(loss) 604 (980) 270 87

Basic and diluted earnings per share 12

Income from continuing operations (attributable to ThyssenKrupp AG's stockholders) 1.24 (0.43) 0.44 0.46

Net income/(loss) (attributable to ThyssenKrupp AG's stockholders) 1.35 (1.82) 0.46 0.21

See accompanying selected notes. * Prior year figure adjusted.

33 Condensed Interim Financial Report 9 months 2011/2012 Consolidated statement of comprehensive income

ThyssenKrupp AG

Consolidated statement of comprehensive income million €

9 months ended

June 30, 2011

9 months ended

June 30, 2012

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Net income/(loss) 604 (980) 270 87

Foreign currency translation adjustment

Change in unrealized gains/(losses), net (317) 459 (119) 302

Net realized (gains)/losses 0 11 0 19

Net unrealized gains/(losses) (317) 470 (119) 321

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

Change in unrealized gains/(losses), net (3) 0 0 (1)

Net realized (gains)/losses 0 0 0 0

Tax effect 1 0 0 0

Net unrealized gains/(losses) (2) 0 0 (1)

Actuarial gains/(losses) from pensions and similar obligations

Change in actuarial gains/(losses), net 781 (715) (14) (281)

Tax effect (256) 215 5 85

Net actuarial gains/(losses) from pensions and similar obligations 525 (500) (9) (196)

Gains/(losses) resulting from asset ceiling

Change in gains/(losses), net (41) 8 (15) 12

Tax effect 13 (2) 4 (3)

Net gains/(losses) resulting from asset ceiling (28) 6 (11) 9

Unrealized (losses)/gains on derivative financial instruments

Change in unrealized gains/(losses), net (100) 34 (38) (33)

Net realized (gains)/losses (80) (43) (5) 4

Tax effect 59 2 14 7

Net unrealized gains/(losses) (121) (7) (29) (22)

Share of unrealized gains/(losses) of investments accounted for using the equity-method (23) 12 1 13

Other comprehensive income 34 (19) (167) 124

Total comprehensive income 638 (999) 103 211

Attributable to:

ThyssenKrupp AG's stockholders 759 (1,023) 72 185

Non-controlling interest (121) 24 31 26

See accompanying selected notes.

34 Condensed Interim Financial Report 9 months 2011/2012 Consolidated statement of changes in equity

ThyssenKrupp

Consolidated statement of changes in equity

million € (except number of shares)

Equity attributable to ThyssenKrupp AG's stockholders

Cumulative other comprehensive income

Number of shares

outstanding 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

Treasury stock Total

Non-controlling

interest Total

equity

Balance as of Sept. 30, 2010 464,394,337 1,317 4,684 3,703 127 5 50 10 (1,396) 8,500 1,888 10,388

Net income 626 626 (22) 604 Other comprehensive income 486 (246) (2) (93) (12) 133 (99) 34 Total comprehensive income 1,112 (246) (2) (93) (12) 759 (121) 638

Profit attributable to non-controlling interest 0 (34) (34)

Dividend payment (209) (209) 0 (209)

Treasury stock sold 609,865 (1) 19 18 0 18

Tax effects on income and expense directly recognized in equity 2 (2) 0 0 0

Other changes 3 3 36 39

Balance as of June 30, 2011 465,004,202 1,317 4,684 4,610 (119) 3 (43) (2) (1,379) 9,071 1,769 10,840

Balance as of Sept. 30, 2011 514,489,044 1,317 4,684 2,833 170 2 (22) 28 0 9,012 1,370 10,382

Net loss (938) (938) (42) (980) Other comprehensive income (496) 402 0 (5) 14 (85) 66 (19) Total comprehensive income (1,434) 402 0 (5) 14 (1,023) 24 (999)

Profit attributable to non-controlling interest 0 (52) (52)

Dividend payment (232) (232) 0 (232)

Other changes (10) (10) (1) (11)

Balance as of June 30, 2012 514,489,044 1,317 4,684 1,157 572 2 (27) 42 0 7,747 1,341 9,088

See accompanying selected notes.

35 Condensed Interim Financial Report 9 months 2011/2012 Consolidated statement of cash flows

ThyssenKrupp

Consolidated statement of cash flows

million €

9 months ended

June 30, 2011

9 months ended

June 30, 2012

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Net income/(loss) 604 (980) 270 87

Adjustments to reconcile net income/(loss) to operating cash flows:

Discontinued operations (net of tax) (51) 721 (7) 130

Deferred income taxes, net (69) (148) 12 (177)

Depreciation, amortization and impairment of non-current assets 1,150 1,257 407 375

Reversals of impairment losses of non-current assets (2) (1) 0 0

(Income)/loss from companies accounted for using the equity method, net of dividends received (59) (25) (18) (14)

(Gain)/loss on disposal of non-current assets, net 0 (419) 19 (359)

Changes in assets and liabilities, net of effects of acquisitions and divestitures and other non-cash changes:

- inventories (1,890) 8 (506) 227

- trade accounts receivable (592) (716) (13) (218)

- accrued pension and similar obligations (200) (21) (68) 119

- other provisions (158) (204) (24) (32)

- trade accounts payable 103 (470) 9 (5)

- other assets/liabilities not related to investing or financing activities 768 472 762 769

Operating cash flows - continuing operations (396) (526) 843 902

Operating cash flows - discontinued operations (409) (322) (134) (31)

Operating cash flows - total (805) (848) 709 871

Purchase of investments accounted for using the equity method and non-current financial assets (26) (12) (4) 6

Expenditures for acquisitions of consolidated companies net of cash acquired (45) (41) (1) (2)

Capital expenditures for property, plant and equipment (inclusive of advance payments) and investment property (1,662) (1,049) (437) (306)

Capital expenditures for intangible assets (inclusive of advance payments) (49) (95) (21) (23)

Proceeds from disposals of investments accounted for using the equity method and non-current financial assets 16 6 4 5

Proceeds from disposals of previously consolidated companies net of cash acquired 13 688 (4) 425

Proceeds from disposals of property, plant and equipment and investment property 111 32 4 4

Proceeds from disposals of intangible assets 6 9 3 2

Cash flows from investing activities - continuing operations (1,636) (462) (456) 111

Cash flows from investing activities - discontinued operations (167) (276) (55) (93)

Cash flows from investing activities - total (1,803) (738) (511) 18

Proceeds from issuance of bonds 0 1,250 0 0

Repayment of bonds (750) 0 0 0

Proceeds from liabilities to financial institutions 1,926 2,383 252 536

Repayments of liabilities to financial institutions (711) (2,178) (533) (991)

Proceeds from/(repayments on) notes payable and other loans 314 94 (169) 102

Increase/(decrease) in bills of exchange (6) 2 (2) 1

Decrease in current securities 1 0 0 0

Proceeds from non-controlling interest to equity 34 0 2 0

Proceeds from treasury shares sold 7 0 6 0

Payment of ThyssenKrupp AG dividend (209) (232) 0 0

Profit attributable to non-controlling interest (34) (52) (14) (4)

Expenditures for acquisitions of shares of already consolidated companies (1) (17) (1) (2)

Financing of discontinued operations (591) (590) (190) (89)

Other financing activities 253 (162) 104 (5)

Cash flows from financing activities - continuing operations 233 498 (545) (452)

Cash flows from financing activities - discontinued operations 570 566 189 130

Cash flows from financing activities - total 803 1,064 (356) (322)

Net increase/(decrease) in cash and cash equivalents - total (1,805) (522) (158) 567

Effect of exchange rate changes on cash and cash equivalents - total 3 49 13 3

Cash and cash equivalents at beginning of reporting period - total 3,673 3,568 2,016 2,525

Cash and cash equivalents at end of reporting period - total 1,871 3,095 1,871 3,095

[thereof cash and cash equivalents within disposal groups] [232] [-] [232] [-]

[thereof cash and cash equivalents within discontinued operations] [-] [35] [-] [35]

Additional information regarding cash flows of continuing operations from interest, dividends and income taxes which are included in operating cash flows:

Interest received 139 113 37 32

Interest paid (487) (456) (155) (159)

Dividends received 14 36 8 32

Income taxes paid (246) (300) (85) (98)

See note 13.

Condensed Interim Financial Report 9 months 2011/2012 Selected notes 36

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, 2011 to June 30, 2012, were authorized for

issue in accordance with a resolution of the Executive Board on

August 07, 2012.

Basis of presentation

The accompanying Group’s condensed interim consolidated financial

statements have been prepared in accordance with section 37x para. 3

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 June 30, 2012, 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

2010/2011.

Recently adopted accounting standards

In fiscal year 2011/2012, ThyssenKrupp adopted the following

standards, interpretations and amendments:

In November 2009 the IASB issued a revised version of IAS 24

“Related Party Disclosures”. The revised standard simplifies the

disclosure requirements for government-related entities and clarifies

the definition of a related party. The application of the amended

standard is compulsory for fiscal years beginning on or after January

01, 2011, while earlier application is permitted. The adoption of the

amended standard did not have a material impact on the Group’s

consolidated financial statements.

In November 2009 the IASB issued an amendment to IFRIC 14, which

is itself an interpretation of IAS 19 “Employee Benefits”, titled

“Prepayments of a Minimum Funding Requirement”. The amendment

applies in the limited circumstances when an entity is subject to

minimum funding requirements and makes an early payment of

contributions to cover those requirements. The amendment permits

such an entity to treat the benefit of such an early payment as an

asset. The application of the amended interpretation is compulsory for

fiscal years beginning on or after January 01, 2011, while earlier

application is permitted for 2009 year-end financial statements. The

adoption of the interpretation did not have a material impact on the

Group’s consolidated financial statements.

In May 2010 the IASB issued the third omnibus standard

“Improvements to IFRSs” as part of its annual improvement process

project. This standard slightly adjusts six standards and one

interpretation. Unless otherwise specified, the amendments are

effective for fiscal years beginning on or after January 01, 2011, while

earlier application is permitted. The adoption of the amended

standards and interpretation did not have a material impact on the

Group’s consolidated financial statements.

In October 2010 the IASB issued amendments to IFRS 7 “Financial

Instruments: Disclosures”. The amendments will allow users of

financial statements to improve the understanding of transfer

transactions of financial assets. The application of the amendments is

compulsory for fiscal years beginning on or after July 01, 2011, while

earlier application is permitted. In the year of adoption comparative

disclosure is not required. Currently, Management does not expect the

adoption of the amendments in the notes as of September 30, 2012 to

have a material impact on the presentation.

Recently issued accounting standards

In fiscal year 2011/2012, 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 2011 the IASB issued the IFRIC interpretation 20 “Stripping

Costs in the Production Phase of a Surface Mine”. The interpretation

regulates the accounting for stripping costs in the production phase of

a surface mine. The interpretation clarifies under which conditions an

asset must be recognized for the relating stripping measures and how

initial and subsequent measurement of this asset has to be

determined. The interpretation is compulsory for fiscal years beginning

on or after January 01, 2013; earlier application is permitted.

Currently, Management does not expect the adoption of the

interpretation – if endorsed by the EU in the current version – to have

an impact on the Group’s consolidated financial statements.

In December 2011 the IASB issued an amendment to IAS 32

“Financial Instruments: Presentation” which clarifies the requirements

for offsetting financial assets and financial liabilities to eliminate

existing inconsistencies in current practice. The amendment is

compulsory for fiscal years beginning on or after January 01, 2014

and shall be applied retrospectively; earlier application is permitted.

Currently, Management does not expect the adoption of the

amendment – if endorsed by the EU in the current version – to have a

material impact on the Group’s consolidated financial statements.

In December 2011 the IASB issued an amendment to IFRS 7

“Financial Instruments: Disclosures” which requires disclosures in the

context of certain offsetting arrangements. The obligation for

disclosures has to be applied regardless of whether the offsetting

arrangements result in any actual offsetting of the respective financial

assets and financial liabilities. The new disclosure requirements shall

simplify comparing financial statements prepared in accordance with

IFRS and financial statements prepared in accordance with US GAAP.

The amendment is compulsory for fiscal years beginning on or after

January 01, 2013 and shall be applied retrospectively; earlier

application is permitted. Currently, Management does not expect the

adoption of the amendment – if endorsed by the EU in the current

version – to have a material impact on the Group’s consolidated

financial statements.

In December 2011 the IASB issued amendments to IFRS 9 “Financial

Instruments” and IFRS 7 “Financial Instruments: Disclosures” that

defer the mandatory effective date of IFRS 9 from January 01, 2013 to

January 01, 2015. In addition the amendment provides relief from the

requirement to restate comparative financial statements for the effect

of applying IFRS 9. Instead, additional transition disclosures have been

added to IFRS 7 to help users of the financial statements to understand

the effect that the initial application of IFRS 9 has on the classification

and measurement of financial instruments. Earlier application of IFRS 9

is still permitted. Currently, Management is not able to finally assess

the impact of adoption of IFRS 9 – if endorsed by the EU in the current

version.

In May 2012 the IASB issued the fourth omnibus standard

“Improvements to IFRSs” as part of its annual improvement process

project. This standard slightly adjusts five standards. The amendments

are effective for fiscal years beginning on or after January 01, 2013,

while earlier application is permitted. Currently, Management does not

expect the adoption of the amendment – if endorsed by the EU in the

current version – to have a material impact on the Group’s

consolidated financial statements.

In June 2012 the IASB issued “Consolidated Financial Statements,

Joint Arrangements and Disclosure of Interests in Other Entities:

Transition Guidance” Amendments to IFRS 10, IFRS 11 and IFRS 12.

The amendments clarify the transition guidance and provides transition

reliefs for the before mentioned Standards. Such as IFRS 10, IFRS 11

and IFRS 12, the amendments are effective for fiscal years beginning

on or after January 01, 2013, while earlier application is permitted.

Currently, Management is not able to finally assess the impact of the

adoption of IFRS 10, IFRS 11 and IFRS 12 – if endorsed by the EU in

the current version.

01 Acquisitions and disposals

In August 2011, as part of the portfolio optimization, the Group

initiated the disposal of the ThyssenKrupp Xervon Group in the

Materials Services business area which was consummated in

November 2011. The Xervon Group is one of the world’s leading

providers of technical services for industrial plant construction and

maintenance. This disposal, the disposal of the Chinese activities of

the Metal Forming Group that were initiated in April 2011 and

consummated in November 2011, the disposal of ThyssenKrupp

Automotive Systems Industrial do Brasil Ltda., the disposal of parts of

the Marine Systems business area that were initiated in April 2010 and

consummated end of January 2012, the disposal of Waupaca 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 €

9 months ended

June 30, 2012

Goodwill 19

Other intangible assets 10

Property, plant and equipment 384

Other financial assets 1

Deferred tax assets 7

Inventories 226

Trade accounts receivable 489

Other current financial assets 63

Other current non-financial assets 33

Current income tax assets 1

Cash and cash equivalents 140

Total assets disposed of 1,373

Accrued pension and similar obligations 306

Other non-current provisions 5

Deferred tax liabilities 11

Non-current financial debt 2

Other non-current financial liabilities 3

Other current provisions 54

Current income tax liablilities 8

Current financial debt 32

Trade accounts payable 243

Other current financial liabilities 175

Other current non-financial liabilities 244

Total liabilities disposed of 1,083

Net assets disposed of 290

Cumulative other comprehensive income 3

Non-controlling interest 7

Gain/(loss) resulting from the disposals 409

Selling prices 695

thereof: received in cash and cash equivalents 688

In addition in the first 9 months ended June 30, 2012, 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 €

9 months ended

June 30, 2012

Goodwill 74


Property, plant and equipment 3

Inventories 1





Total assets acquired 125





Trade accounts payable 19


Total liabilities assumed 37

Net assets acquired 88

Non-controlling interest 0

Purchase prices 88

thereof: paid in cash and cash equivalents 80

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 2009/2010 as well as in fiscal year 2010/2011 the disposal of

parts of the Marine Systems business area and the disposal of the

entire Stainless Global business area have been initiated. While the

parts of the Marine Systems business area were disposed of in the 2nd

quarter of 2011/2012, the disposal of the Stainless Global business

area is not consummated as of the balance sheet date.

The disposal of parts of the Marine Systems business area did not

meet the requirements of IFRS 5 for a presentation as a discontinued

operation. Therefore, revenues and expenses were continued to be

presented as income from continuing operations until the date of the

disposal on January 31, 2012. However the initiated disposal of the

entire Stainless Global business area met the criteria for a presentation

as a discontinued operation for the first time as of September 30,

2011. Therefore, all revenues and expenses of this business area of

the reporting period will be presented in the consolidated statement of

income in the line item “discontinued operations (net of tax)”. The prior

year presentation has been adjusted accordingly. 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 April 2010 the disposal of parts of the Marine Systems business

area has been initiated. The transaction comprises the disposal of

Blohm + Voss Shipyards GmbH, operating in shipbuilding in particular

of premium-segment yachts and of Blohm + Voss Repair GmbH and

Blohm + Voss Industries GmbH, both engaged in ship repairing and the

manufacturing of components. Additionally, the construction capacities

for civil ship construction of former HDW Gaarden are part of the

disposal group. In the year ended September 30, 2011, the civil part of

former HDW Gaarden has been disposed of. Due to the termination of

the negotiations with the Abu Dhabi MAR Group on the complete

takeover of the civil shipbuilding activities and a joint venture in naval

surface ship building, as of June 30, 2011, assets held for sale of

€133 million and liabilities associated with assets held for sale of €145

million have been reclassified to the corresponding balance sheet

positions. As of December 31, 2011 as already as of September 30,

2011, the sale of the civil operations of Blohm + Voss was part of the

disposal group which was the yacht building and repair and

components businesses in Hamburg. The valuation at fair value less

costs to sell led to an impairment loss of €125 million on goodwill

which was recognized in other expenses and impairment losses of €6

million on other intangible assets and of €24 million on property, plant

and equipment which were recognized in cost of sales in the

1st quarter of 2011/2012.


Discontinued operation: Stainless Global business area

As part of its program for the further strategic development with the

cornerstones to reduce the Group’s debt, enable sustainable growth,

create value and increase earning power, in May 2011 the Group

decided to focuse the portfolio and to divest businesses for which there

are stronger strategic alternatives.

Therefore as one measure, effective September 30, 2011, 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.

Based on the contract with Outokumpu about the intended sale, as of

December 31, 2011 the measurement resulted in an impairment loss

of €265 million that was allocated to property, plant and equipment.

The updates of the measurement as of March 31, 2012 and as of June

30, 2012 resulted in an additional impairment loss of €250 million and

of €59 million, respectively that were also allocated to property, plant

and equipment. The expense is recognized in income/(loss) of

discontinued operations of the respective quarter of 2011/2012.

The calculation of the share component of 29.9% of the new company

was based on the rate of the Outokumpu share of February 02, 2012,

May 08, 2012 and August 01, 2012 (€0.70), respectively. A change of

the share rate of €0.01 results in a change of the value of

approximately €6 million. Until the final fixing of the value ratios at the

closing of the transaction, significant value fluctuations may occur.

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 is 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 June 30, 2012 the overall costs in connection with

that social plan have been recognized as a restructuring provision of

€63 million in the aggregate for Düsseldorf-Benrath and Krefeld.

The results of the 9 months and of the 3rd quarter of the Stainless

Global business area that classifies as a discontinued operation are as

follows:

million €

9 months ended

June 30, 2011

9 months ended

June 30, 2012

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Net sales 4,496 4,366 1,405 1,462

Other income 21 18 11 4

Expenses (4,465) (4,604) (1,428) (1,559)

Ordinary income/(loss) from discontinued operations (before taxes) 52 (220) (12) (93)

Income tax (expense)/income (1) 73 19 22

Ordinary income/(loss) from discontinued operations (net of tax) 51 (147) 7 (71)

Gain/(loss) recognized on measurement adjustments of discontinued operations (before taxes) — (574) — (59)

Income tax (expense)/income — — — —

Gain/(loss) recognized on measurement adjustments of discontinued operations (net of tax) 0 (574) 0 (59)

Discontinued operations (net of tax) 51 (721) 7 (130)

thereof:

ThyssenKrupp AG's stockholders 50 (718) 7 (129)

Non-controlling interest 1 (3) 0 (1)

On initial classification as a discontinued operation, non-current assets

are no longer amortized and depreciated, therefore in the 9 months

ended June 30, 2012, amortization and depreciation of €143 million

were suspended; thereof €49 million refer to the 3rd quarter ended

June 30, 2012.

40 Condensed Interim Financial Report 9 months 2011/2012 Selected notes

The assets and liabilities of the discontinued operation as of June 30,

2012 are presented in the following table:

million €

June 30,

2012


Property, plant and equipment 1,511

Investment property 12

Investments accounted for using the equity method 17

Other financial assets 2

Other non-financial assets 5

Deferred tax assets 179

Inventories 1,968




Current income tax assets 22


Assets held for sale 4,603


Provisions for other non-current employee benefits 22

Other non-current provisions 136



Other non-current non-financial liabilities 1

Provisions for current employee benefits 4

Other current provisions 54

Current income tax liabilities 12


Trade accounts payable 1,403

Other current financial liabilities 116


Liabilities associated with assets held for sale 2,500

03 Property, plant and equipment

With the decision by the Executive Board of ThyssenKrupp AG in May

2012 to review strategic options in all directions for the Steel Americas

business area, a so-called “triggering event” pursuant to IAS 36

occurred in the 3rd quarter of the fiscal year, making it necessary to

carry out an impairment test on the business area’s carrying amounts.

As of June 30, 2012 the carrying amounts to be tested amounted to

€7,866 million; thereof €6,871 million refer to property, plant and

equipment.

Fair values less costs to sell are currently being calculated in

accordance with the possible strategic options. Our current best

estimate allows the conclusion that as things stand at present the

carrying amounts of the Steel Americas business area could be

essentially covered by the fair value less costs to sell. On this basis no

valuation adjustments resulting from an impairment test under IAS 36

were made in connection with the Steel Americas business area in

these interim financial statements. It cannot be ruled out that in the

further course of the process, for example in the event of a sale, the

carrying amounts of the business area might not be fully recoverable.

04 Total equity

Due to the expiration of the existing and not yet used authorization to

increase the capital stock by up to €500 million (Authorized Capital) on

January 18, 2012, the Executive Board has been authorized again by

the resolution of the Annual General Meeting on January 20, 2012,

with the approval of the Supervisory Board, to increase the capital

stock on one or more occasions on or before January 19, 2017 by up

to €500 million by issuing up to 195,312,500 new no-par bearer

shares in exchange for cash and/or contributions in kind. The

shareholders are in principle entitled to subscription rights; the option

of excluding subscription rights is limited in total to 20% of the capital

stock. Art. 5 para. 5 of the Articles of Association of ThyssenKrupp AG

has been reworded accordingly.

05 Share-based compensation

Management incentive plans

In the 2nd quarter ended March 31, 2012, the members of the

Executive Board of ThyssenKrupp AG were granted stock rights of the

2nd installment of the long-term incentive plan (LTI). Furthermore, in

the 2nd and 3rd quarter stock rights of the LTI were granted to

additional executive employees. At the same time, in the 2nd quarter

ended March 31, 2012, the stock rights granted in the 7th 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 9 months ended June 30, the Group

recorded expenses of € 1.3 million (9 months ended June 30, 2011:

€17.7 million) from the obligations of the mid-term and long-term

incentive plans MTI and LTI; thereof income of €0.5 million (9 months

ended June 30, 2011: expense of €0.7 million) are presented in

income/(loss) of discontinued operations. In the 3rd quarter ended

June 30, 2012, these plans resulted in an income of €0.1 million (3rd

quarter ended June 30, 2011: expense of €11.8 million); thereof

income of €0.1 million (3rd quarter ended June 30, 2011: expense of

€0.5 million) are 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 €2.6 million in the 9 months ended June

30, 2012 (9 months ended June 30, 2011: €5.5 million) and in income

of €1.8 million in the 3rd quarter ended June 30, 2012 (3rd quarter

ended June 30, 2011: expense of €3.5 million).

Employee share purchase program

In the 3rd quarter ended June 30, 2011, the Group offered eligible

members of its domestic workforce the right to purchase up to €270

million in ThyssenKrupp shares at a 50% discount as part of an

employee share purchase program. The program resulted in the Group

recording a compensation expense of €6.0 million (3rd quarter ended

June 30, 2011: €6.1 million).

06 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 June 30, 2012, taking into account these effects while

other assumptions remained unchanged.

million €

Sept. 30,

2011 June 30,

2012

Accrued pension liability 6,007 6,494

Accrued postretirement obligations other than pensions 1,080 998

Other accrued pension-related obligations 210 305

Reclassification due to the presentation as liabilities associated with assets held for sale (357) (301)

Total 6,940 7,496

The Group applied the following weighted average assumptions to

determine pension and postretirement benefit obligations other than

pensions:

in %

Sept. 30, 2011 June 30, 2012

Germany Outside

Germany Germany Outside

Germany

Discount rate for accrued pension liability 5.00 4.41 4.00 3.77

Discount rate for postretirement obligations other than pensions (only USA) — 4.75 — 3.75

The net periodic postretirement benefit cost for health care obligations is as follows:

million €

9 months ended

June 30, 2011

9 months ended

June 30, 2012

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Germany Outside




Germany

Service cost 59 26 56 25 20 8 18 8

Interest cost 187 76 202 69 62 25 68 24

Expected return on plan assets (10) (83) (9) (75) (4) (27) (3) (25)

Past service cost 0 1 0 0 0 1 0 0

Net periodic pension cost 236 20 249 19 78 7 83 7

The above presented net periodic pension cost for defined benefit plans in Germany include cost of €10 million in the 9 months ended June 30,

2012 (9 months ended June 30, 2011: €10 million) and of €3 million in the 3rd quarter ended June 30, 2012 (3rd quarter ended June 30, 2011:

€3 million) attributable to discontinued operations. The above presented net periodic pension cost for defined benefit plans outside Germany

include cost of €1 million in the 9 months ended June 30, 2012 (9 months ended June 30, 2011: €1 million) and of €0.4 million in the 3rd

quarter ended June 30, 2012 (3rd quarter ended June 30, 2011: €0.4 million) attributable to discontinued operations.

The net periodic postretirement cost for health care obligations is as follows:

million €

9 months ended

June 30, 2011

9 months ended

June 30, 2012

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

USA/Canada USA USA/Canada USA

Service cost 5 4 1 2

Interest cost 41 34 13 12

Expected return on reimbursement rights (3) (3) (1) (1)

Past service cost (5) (37) (1) (4)

Net periodic postretirement benefit cost/(income) 38 (2) 12 9


07 Issuance of a bond

In February 2012 ThyssenKrupp AG issued a 1.25 billion Euro bond

documented under the existing 10 billion Euro Debt Issuance

Programme. The bond has a five year maturity and carries a coupon of

4.375% at an issue price of 99.753%.

With this transaction ThyssenKrupp AG makes use of the good market

environment and extends its maturity profile.

08 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

June 30, 2012

Provision as of

June 30, 2012

Advance payment bonds 244 1

Performance bonds 116 1

Third party credit guarantee 43 0

Residual value guarantees 60 1

Other guarantees 34 0

Total 497 3

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, 2011, the purchasing commitments were

reduced by €7.5 billion to €20.9 billion due to the lower ore prices on a

US dollar basis despite of the opposite effect of the weaker Euro.

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.

There have been no significant changes since September 30, 2011 to

other contingencies, including pending litigations.

09 Derivative financial instruments

The notional amounts and fair values of the Group’s derivative financial

instruments are as follows:

million €

Notional amount

Sept. 30, 2011

Fair value Sept. 30,

2011

Notional amount

June 30, 2012

Fair value June 30,

2012

Derivative financial instruments

Assets

Foreign currency derivatives including embedded derivatives 4,429 136 4,422 60

Interest rate derivatives* 299 5 291 8

Commodity derivatives 511 78 328 21

Total 5,239 219 5,041 89

Liabilities

Foreign currency derivatives including embedded derivatives 5,489 275 3,941 167

Interest rate derivatives* 750 35 1,122 100

Commodity derivatives 384 68 322 50

Total 6,623 378 5,385 317

* inclusive of cross currency swaps


10 Segment reporting

Segment information for the 9 months ended June 30, 2011 and June 30, 2012 as well as for the 3rd quarter ended June 30, 2011 and

June 30, 2012 is as follows:

million €

Steel

Europe Steel

Americas Materials Services

Elevator Technology

Plant Technology

Components Technology

Marine Systems Corporate

Stainless Global*

Consoli-dation Group

9 months ended June 30, 2011

External sales 8,108 494 10,366 3,861 2,781 5,136 1,200 45 4,496 0 36,487

Internal sales within the Group 1,655 281 629 3 28 11 2 51 551 (3,211) 0

Total sales 9,763 775 10,995 3,864 2,809 5,147 1,202 96 5,047 (3,211) 36,487

EBIT 880 (887) 397 469 377 382 192 (319) 66 (242) 1,315

9 months ended June 30, 2012

External sales 6,878 1,141 9,584 4,097 2,941 5,476 880 46 4,366 0 35,409

Internal sales within the Group 1,438 446 338 2 12 9 0 60 446 (2,751) 0

Total sales 8,316 1,587 9,922 4,099 2,953 5,485 880 106 4,812 (2,751) 35,409

EBIT 170 (781) 72 365 379 756 (32) (324) (769) (270) (434)

3rd quarter ended June 30, 2011

External sales 2,952 245 3,750 1,296 937 1,775 479 12 1,405 0 12,851

Internal sales within the Group 566 184 230 2 6 4 0 20 181 (1,193) 0

Total sales 3,518 429 3,980 1,298 943 1,779 479 32 1,586 (1,193) 12,851

EBIT 322 (190) 149 151 131 141 62 (120) 0 (101) 545

3rd quarter ended June 30, 2012

External sales 2,417 371 3,260 1,427 1,024 1,847 294 14 1,462 0 12,116

Internal sales within the Group 483 172 109 2 3 5 0 20 144 (938) 0

Total sales 2,900 543 3,369 1,429 1,027 1,852 294 34 1,606 (938) 12,116

EBIT 47 (263) (42) 134 140 459 23 (106) (145) (96) 151

* Discontinued operation Net sales and operating EBIT reconcile to EBT from continuing operations as presented in the consolidated statement of income as following:

million €

9 months ended

June 30, 2011

9 months ended

June 30, 2012

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

Sales as presented in segment reporting 36,487 35,409 12,851 12,116

- Sales of Stainless Global (5,047) (4,812) (1,586) (1,606)

+ Sales of Stainless Global to Group companies 551 446 181 144

+ Sales of Group companies to Stainless Global 215 176 60 56

Sales as presented in the statement of income 32,206 31,219 11,506 10,710

million €

9 months ended

June 30, 2011

9 months ended

June 30, 2012

3rd quarter ended

June 30, 2011

3rd quarter ended

June 30, 2012

EBIT as presented in segment reporting 1,315 (434) 545 151

- Depreciation of capitalized borrowing costs eliminated in EBIT (30) (33) (11) (12)

+ Finance income 676 717 230 332

- Finance expense (1,081) (1,175) (365) (508)

- Items of finance income assigned to EBIT based on economic classification (11) (65) (6) (1)

- Items of finance expense assigned to EBIT based on economic classification 35 63 14 26

EBT - Group 904 (927) 407 (12)

- EBT of Stainless Global (52) 794 12 153

EBT from continuing operations as presented in the statement of income 852 (133) 419 141

11 Cost of sales

Cost of sales for the 9 months ended June 30, 2012, includes

write-downs of inventories of €27 million which mainly relate to the

Materials Services and Components Technology business areas. As

of September 30, 2011, write-downs amounted to €232 million.

In the 9 months ended June 30, 2011, cost of sales includes write-

downs of inventories of €49 million which mainly relate to Steel

Americas. In addition, income/(loss) from discontinued operations

includes write-downs of inventories of €42 million in the 9 months

ended June 30, 2012 (9 months ended June 30, 2011: €27 million).


12 Earnings per share

Basic earnings per share is calculated as follows:

9 months ended June 30, 2011 9 months ended June 30, 2012 3rd quarter ended June 30,

2011 3rd quarter ended June 30,

2012

Total amount

in million € Earnings per

share in € Total amount






share in €

Income/(loss) from continuing operations (net of tax) (attributable to ThyssenKrupp AG's stockholders) 576 1.24 (220) (0.43) 205 0.44 238 0.46

Income/(loss) from discontinued operations (net of tax) (attributable to ThyssenKrupp AG's stockholders) 50 0.11 (718) (1.39) 7 0.02 (129) (0.25)

Net income/(loss) (attributable to ThyssenKrupp AG's stockholders) 626 1.35 (938) (1.82) 212 0.46 109 0.21

Weighted average shares 464,591,599 514,489,044 464,848,610 514,489,044

Relevant number of common shares for the determination of

earnings per share

Earnings per share have been calculated by dividing net income/(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.

In fiscal year 2010/2011 the weighted average number of outstanding

shares was increased by the sale of treasury shares in February 2011

in the context of the Group’s share purchase program, by the sale of

treasury shares in May 2011 in the context of the employee share

purchase and by the sale of treasury shares in the accelerated

bookbuilding process to mainly institutional investors in July 2011.

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 9 months ended June 30, 2012, the acquisition and first-time

consolidation of companies created an increase in non-current assets

of €65 million (9 months ended June 30, 2011: €0 million). In the 3rd

quarter ended June 30, 2012 and June 30, 2011, respectively, there

weren’t any increases.

The non-cash addition of assets under finance leases in the 9 months

ended June 30, 2012 amounted to €9 million (9 months ended June

30, 2011: €19 million) and in the 3rd quarter ended June 30, 2012 to

€6 million (3rd quarter ended June 30, 2011: €4 million).

Non-cash financing activities

In the 9 months ended June 30, 2012, the acquisition and first-time

consolidation of companies resulted in an increase in gross financial

debt of €2 million (9 months ended June 30, 2011: €0 million); in the

3rd quarter ended June 30, 2012 and June 30, 2011, respectively,

there weren’t any increases.

14 Subsequent events

No reportable events occurred.

Essen, August 07, 2012

ThyssenKrupp AG

The Executive Board

Hiesinger

Berlien Claassen Eichler Kerkhoff Labonte

45 9 months 2011/2012 Review report

Review report

To ThyssenKrupp AG, Duisburg and Essen

We have reviewed the condensed interim consolidated financial

statements comprising the statement of financial position, the

statement of income, the statement of comprehensive income, the

statement of changes in equity, the statement of cash flows and

selected notes – and the interim group management report of

ThyssenKrupp AG, Duisburg and Essen, for the period from October 1,

2011 to June 30, 2012 which form part of the quarterly financial report

according to section 37x para. 3 German Securities Trading Act

(Wertpapierhandelsgesetz – WpHG). The preparation of the condensed

interim consolidated financial statements in accordance with those

IFRS applicable to interim financial reporting as adopted by the EU,

and of the interim group management report in accordance with the

requirements of the German Securities Trading Act applicable to

interim group management reports, is the responsibility of the

Company’s management. Our responsibility is to issue a report on the

condensed interim consolidated financial statements and on the

interim group management report based on our review.

We conducted our review of the condensed interim consolidated

financial statements and the interim group management report in

accordance with the German generally accepted standards for the

review of financial statements promulgated by the Institut der

Wirtschaftsprüfer (IDW) and in supplementary compliance with the

International Standard on Review Engagements (ISRE) 2410. Those

standards require that we plan and perform the review so that we can

preclude through critical evaluation, with a certain level of assurance,

that the condensed interim consolidated financial statements have not

been prepared, in material aspects, 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 aspects, in accordance with the regulations of the German

Securities Trading Act applicable to interim group management

reports. A review is limited primarily to inquiries of company

employees and analytical assessments 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 auditor’s report.

Based on our review, no matters have come to our attention that cause

us to believe that the condensed interim consolidated financial

statements have not been prepared, in material respects, in

accordance with the IFRS applicable to interim financial reporting as

adopted by the EU, or that the interim group management report has

not been prepared, in material respects, in accordance with the

regulations of the German Securities Trading Act applicable to interim

group management reports.

Without qualifying this review opinion, we draw attention to the

discussion on pages 13 and 30 in the interim group management

report and on page 40 in the condensed notes regarding the

recoverability of the assets of the Steel Americas business area.

Düsseldorf, August 9, 2012

KPMG AG

Wirtschaftsprüfungsgesellschaft

Klaus Becker Michael Gewehr

(German Public Auditor) (German Public Auditor)

46 Further information 9 months 2011/2012 Report by the Supervisory Board Audit Committee

Report by the Supervisory Board Audit Committee

The interim report for the first 9 months of fiscal year 2011/2012

(October 2011 to June 2012) and the review report by the Group’s

financial statement auditors were presented to the Audit Committee of

the Supervisory Board in its meeting on August 09, 2012 and

explained by the Executive Board and the auditors. The Audit

Committee approved the interim report.

Essen, August 09, 2012

Chairman of the Audit Committee

Prof. Dr. Bernhard Pellens

47 Further information 9 months 2011/2012 Contact and 2012/2013 dates

Contact and 2012/2013 dates

For more information please contact:

Corporate Communications

Telephone +49 201 844-536043

Fax +40 201 844-536041

E-mail [email protected]

Investor Relations


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, Germany

Telephone +49 201 844-0

Fax +49 201 844-536000


2012/2013 dates

November 22, 2012

Annual Press Conference/Annual Report

Conference call with analysts and investors

January 18, 2013

Annual General Meeting

February 12, 2013

Interim report

1st quarter 2012/2013 (October to December)


May 15, 2013

Interim report

1st half 2012/2013 (October to March)


August 14, 2013

Interim report

9 months 2012/2013 (October to June)


Forward-looking statements

This report contains forward-looking statements that reflect manage-ment’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 circum-stances 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 eco-nomic aspects: Improvements are indicated by a plus (+) sign, deterio-rations are shown in brackets ( ). Very high positive and negative rates of change (≥1,000% or ≤(100)%) are indicated by ++ and −− respec-tively.

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 interim 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 AGThyssenKrupp Allee 145143 Essen, Germanywww.thyssenkrupp.com

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