Financial Overview

(in million euros)

	FY ended Sep. 30, 2012	FY ended Sep. 30, 2011	Rate of change (%)	Factors
Overall
Sales	47,045	49,092	(4.2)	1)
EBIT	(4,370)	(988)	-
Steel Europe
Sales	10,922	12,814	(14.8)	2)
EBIT	188	1,133	(83.4)	-
Components Technology
Sales	7,011	6,908	1.5	3)
EBIT	681	543	25.4	-

Factors
1) Overall
-The Group's sales decreased by 4.2% to 47.0 billion euro for the year ended Sep. 30, 2012 due to the sales decreased in Steel Europe and Materials Services areas.

-The Group's posted EBIT loss of 4,370 million euro due to the impairment charges at Steel Americas and the high losses of the discontinued operations.

2) Steel Europe
-The sales decreased by 14.8% to 10,922 million euro for the year ended Sep. 30, 2012. Sales to customers in automotive industry fell short of the prior-year due to lower volumes, and lower prices had to be accepted in line with raw material prices.

3) Components Technology
-The sales increased by 1.5% to 7,011 million euro for the year ended Sep. 30, 2012. This increase was due to global growth with components for cars and trucks. Added to this, positive exchange-rate effects mainly from the US dollar and Swiss franc.

Contracts

-ThyssenKrupp MgF Magnesium Flachprodukte GmbH, a subsidiary of ThyssenKrupp Steel Europe AG, announced that it supplies its magnesium sheet for a magnesium rear seat backrest for the BMW "3-series", which was presented by BMW M GmbH at the TeMaKplus workshop. The rear seat backrest is a 60/40 split folding design. Weighing only 5.45 kilograms, the magnesium backrest is over 50 percent lighter than a conventional steel backrest weighing around 11.5 kilograms. ThyssenKrupp's magnesium sheet used for it was supplied in thicknesses of 1.5 mm and 2 mm. TeMaKplus is an alliance of twelve partners from the business and research spheres and is funded by the Federal Ministry for Education and Research. The aim is to establish magnesium as a lightweight material suitable for diverse uses in industrial production. (From a press release on July 11, 2012)

Divestitures

-The Company has signed an agreement with Wuhan Iron and Steel Corporation (WISCO) of China for the sale of for its subsidiary ThyssenKrupp Tailored Blanks. Headquartered in Duisburg/Germany, the ThyssenKrupp Tailored Blanks group has been producing tailored blanks for the auto industry since 1985 and is a supplier in this segment with a roughly 40 percent global market share. The Group has 13 plants in Germany, Sweden, Italy, Turkey, the U.S., Mexico and China. It employs around 950 people and last year produced some 58 million parts for automotive OEMs. Sales in the 2010/2011 fiscal year were approximately 700 million euros. It is a further step in the optimization of the portfolio, which the Group announced in May 2011 in connection with its strategic development program. The Company is proceeding fully according to plan, and sale agreements have already been signed or closed for around 95% of the business activities up for disposal. (From a press release on September 28, 2012)

-The Company announced that its sale of the North American foundry ThyssenKrupp Waupaca to New York-based private equity company KPS Capital Partners LP has now been closed. ThyssenKrupp AG signed the stock purchase agreement with KPS on May 14, 2012. (From a press release on July 2, 2012)

-ZF Friedrichshafen AG announced that it has signed a purchasing contract with ThyssenKrupp Automotive Systems GmbH (TKAS) about its cabin suspension business unit in Werdohl location, North Rhine-Westphalia, Germany. TKAS generates a sales figure of about 15 million euros at its Werdohl location with currently 41 permanent employees. The economic transition of this business area is planned for the first quarter of 2012. The TKAS cabin suspension business area adds to the product portfolio of ZF's Commercial Vehicle Technology Division and will be integrated in the existing CV Chassis Modules Business Unit. To this end, the newly acquired product segment will be transferred to ZF's Dielingen location (Northern North Rhine-Westphalia) until the end of 2012. The business unit's production locations are in Dielingen, Ermua (Spain), Izmir (Turkey), Gainesville (Florida, USA), Sorocaba (Brazil), and Shanghai (China). (From a press release on January 26, 2012)

-Magna International Inc. announced that its Cosma International operating unit has closed a transaction with ThyssenKrupp Automotive Systems GmbH to acquire ThyssenKrupp Automotive Systems Industrial do Brasil Ltda. (TKASB) of Brazil. TKASB produces and assembles chassis structural components and modules, and had sales of approximately 250 million USD for its fiscal year ended September 30, 2011. TKASB employs approximately 770 employees at the four plants, located in Sao Bernardo do Campo, Ibirite, Camacari and Sao Jose dos Pinhais in Brazil. Current production customers include Ford, Fiat, Renault-Nissan, Honda and PSA. Magna currently has nine manufacturing facilities and two R&D facilities in South America. (From a press release on December 6, 2011)

New Company

-The Company and Outokumpu, a Finland-based stainless steel manufacturer, announced the combination of Outokumpu with Inoxum, the stainless steel unit of the Company, to create a new company. The total consideration values Inoxum at approximately 2.7 billion euros. Under the agreement, the Company will obtain a 29.9 percent stake in the new company for its transfer of Inoxum. The combined entity will operate under the name of Outokumpu, which will continue to be headquartered in Espoo, Finland. The transaction is expected to be completed by the end of 2012. Outokumpu plans to reduce the melting capacity via the closure of the melt shop at the German production site in Krefeld. All German production sites of Inoxum will be preserved at least until 2015. (From a press release on January 31, 2012)

Recent Development Outside Germany

<USA>
-The Company has decided to investigate strategic options in all directions, including a partnership or a sale, for the plants of ThyssenKrupp Steel Americas in Brazil and the U.S. The plant in Rio de Janeiro, Brazil produced around 1.7 million tons of high-quality slabs in the first half of the current fiscal year. In the same period, the Mobile plant in Alabama, the U.S. shipped around 1.4 million tons of steel to customers. (From a press release on May 15, 2012)

Business Overview

-ThyssenKrupp Nirosta GmbH announced that it will introduce short-time working from September 2012 due to continuing weak orders. ThyssenKrupp Nirosta supplies stainless steel flat products. This short-time working will affect the Bochum site (Germany), which employs 456 people. The other sites of ThyssenKrupp Nirosta are not affected by short-time working. (From a press release on August 30, 2012)

-ThyssenKrupp Steel Europe AG announced that short-time working is being introduced from August 2012 against the background of continuing weak orders. Short-time working will affect the locations Duisburg-Hamborn, Duisburg-Huttenheim, Bochum, Dortmund and Siegerland. The Finnentrop location is initially excluded from short-time working. As things stand at present the Company expects that short-time working will have to be continued until the end of the year. Currently affected by the temporary adjustment measures are the cold-rolling and coating areas and parts of the hot-rolled processing operations. Some 2,170 out of a total of 17,500 employees are expected to be affected by short-time working. (From a press release on July 26, 2012)

Certificate

-The Company announced that the ThyssenKrupp Stahl-Service-Center's headquarters and branches (Krefeld, Radebeul and Mannheim, Germany) have been awarded the EN ISO 14001 certification for its environmental management system. (From a press release on October 5, 2011)

R&D Expenditure

(in million euros)

	FY ended Sep. 30, 2012	FY ended Sep. 30, 2011	FY ended Sep. 30, 2010
Total	644	551	442

R&D Structure

-More than 3,000 researchers and developers work in global network.

Product development

Electric Power Assisted Steering
-The NSG Group announced that its glass fiber cord (Glass Cord) for engine timing belts is used in the Electric Power Assisted Steering (EPAS) system, which was co-developed by Gates Power Transmission and ThyssenKrupp. The EPAS drive belt uses 0.2mm Glass Cord produced at NGF Europe, one of NSG Group subsidiaries. EPAS is already used in around 2 million vehicles in the European market and its adoption is expected to increase throughout Europe and North America. (From a press release on June 18, 2012)

Material
-ThyssenKrupp VDM, together with the Julich Research Center, has developed Crofer 22 H, a high-performance material for solid oxide fuel cells (SOFC). The new material can be used to produce lightweight fuel cell stacks, e.g. for use in vehicles. It contains between 20 and 24 percent chromium and other alloying elements such as tungsten, niobium, titanium and lanthanum. The new material is characterized by high corrosion resistance at temperatures up to 900 degrees, good electrical conductivity of the oxide layer, and high mechanical strength at operating temperature. In addition to Crofer 22 H, further materials from ThyssenKrupp VDM are used in fuel cells. For example, high-temperature nickel alloys feature in other SOFC parts such as heat exchangers and reformers. (From a press release on December 23, 2011)

Coating
-ThyssenKrupp Steel Europe has developed a new anti-rust finish called GammaProtect that is suitable for hot stamped components. The composition of GammaProtect increases the melting point of the coating to over 870 degrees. And the zinc content is high enough to ensure it retains its cathodic corrosion protection properties. The coating expands the range of applications for hot stamping to include parts in the wet area of the car body particularly at risk from corrosion. (From a press release on November 7, 2011)

Capital Expenditures

(in million euros)

	FY ended Sep. 30, 2012	FY ended Sep. 30, 2011	FY ended Sep. 30, 2010
Overall	2,204	2,771	3,513
Steel Europe	505	431	286
Components Technology	420	361	288

-The decrease in Overall was due to the decrease in Steel Americas and Materials Services.
-The expenditure in Components Technology includes building and expanding new locations in the growth markets of China and India, but also in Europe, the USA and Brazil.

Investment inside Germany

-The ThyssenKrupp Presta Camshafts group announced that work is now underway on the construction of a new facility at Ilsenburg's industrial zone in Germany. It is due to start producing cylinder head covers in the third quarter 2013, creating 100 new jobs. The building has a total floor area of 12,000 square meters, of which roughly 6,000 square meters will be used for production and 3,000 square meters for storage. The new plant is being built on a 34,000 square meters site, with a further 55,000 square meters available for expansion if required. (From a press release on August 31, 2012)

-ThyssenKrupp Steel Europe has comprehensively modernized the facilities at its Bochum site in Germany. Some of the investment went into optimizing the rolling process. The cooling section has been upgraded to a laminar-flow system. The aim is to expand production capacities for high-strength and ultrahigh-strength steels. In total, more than 140 million euros has been invested to strengthen ThyssenKrupp Steel Europe's Bochum mill. (From a press release on May 31, 2012)

-ThyssenKrupp Nirosta announced that it will relocate its Dusseldorf-Benrath cold rolling mill to Krefeld, Germany by the year 2016. This measure is associated with a three-digit million euros investment at the Krefeld site, among other things to modernize equipment. (From a press release on January 10, 2012)

Investment Outside Germany

<China>
-Work started in the reporting year on the construction of an integrated plant for steering systems and dampers in Shanghai which will serve the Chinese market.　(In the year ended Sep. 30, 2012)