Financial Overview

(in million EUR)

	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012	Rate of change (%)	Factors
Overall
Sales	39,782	47,045	(15.4)	1)
EBIT	(538)	(4,370)	-	-
Steel Europe
Sales	9,620	10,922	(11.9)	2)
EBIT	62	188	(67.0)	-
Components Technology
Sales	5,712	7,011	(18.5)	3)
EBIT	173	681	(74.6)	-
Steel Americas
Sales	1,867	2,014	(7.3)	4)
EBIT	(1,180)	(4,747)	-	-

Factors
1) Overall
-The Company's sales decreased by 15.4 percent from the previous fiscal year to EUR 39.8 billion. Much of this was due to the discontinuation of the Company's Stainless Global segment, as well as declines in the components and materials segments. 

2) Steel Europe
-Sales in the Steel Europe segment dropped 11.9 percent to EUR 9,620 million primarily because of lower steel prices. Market weakness in Europe combined with a supply surplus drove steel prices lower.

3) Components Technology
-Discontinued businesses, specifically the sale of US foundry group Waupaca, was the primary reason why sales in the Components Technology segment fell 18.5 percent to EUR 5,712 million. Though car markets improved in US and China, low orders from the US truck market as well as the European vehicle market offset those gains.

4) Steel Americas
-Sales in the Steel Americas segment declined by 7.3 percent to EUR 1,867 million due to lower selling prices, despite the fact that order volumes were higher.

Restructuring

Sales agreement and contract with NSSMC and ArcelorMittal
-The Company announced that Nippon Steel & Sumitomo Metal Corporation (NSSMC) and ArcelorMittal SA of Luxembourg reached a basic agreement to acquire ThyssenKrupp Steel USA, LLC (TKUS) in Alabama, U.S.A. TKUS is an automotive steel sheet production subsidiary of the Company. The transaction is valued at approximately USD 1.55 billion (JPY 200 billion). In addition to the sale of TKUS, the agreement also provides the Company with a slab contract, stating that NSSMC and ArcelorMittal will purchase 2 million metric tons of slabs from ThyssenKrupp CSA in Brazil through 2019. Due to the agreement, the Company reclassified its Steel Americas business area as a continuing operation.

Closure of Steel Europe Neuwied plant
-The Company's Steel Europe segment announced the closure of the Neuwied plant in Germany as part of its optimization program due to an ongoing decline in demand, particularly for electrogalvanized sheets. The Neuwied has 320 employees and specializes in producing electrogalvanized sheets. The measures, which were implemented at the beginning of the current fiscal year, provide workers from Neuwied a choice to transfer to the ThyssenKrupp Rasselstein plant in Andernach. Production at the Neuwied sheet plant was discontinued gradually. Following the closure of one galvanizing line (FBA 11), a second line (EBA 6) was closed on September 30, 2013, with the cold rolling mill closing before the end of 2013. (From a press release on August 20, 2013)

Divestiture of tailored blanks plant
-The Company announced that the sale of ThyssenKrupp Tailored Blanks to Wuhan Iron and Steel Corporation (WISCO)/China has been completed. The agreement to sell the company, which produces tailored steel blanks for the automotive industry, was signed in September 2012. ThyssenKrupp Tailored Blanks has a 40 percent global market share in this segment. ThyssenKrupp Tailored Blanks has approximately 930 employees at 16 plants in Germany, Sweden, Italy, Turkey, the USA, Mexico and China. Its annual sales last year reached EUR 740 million. (From a press release on July 31, 2013)

Announcement of optimization program to divest business units
-The Company announced an optimization program, which plans to achieve savings of approximately EUR 500 million by the FY ending September 2015. The program also plans to have the Company's Steel Europe segment make an important contribution towards improving the performance of the Group as a whole. The Company is looking into the closure, relocation or sale of specific business units and facilities as follows:

• Coil coating line 1 in Duisburg-Beeckerwerth
• One of the two electrolytic coating lines at the Dortmund plant
• Cold-rolling and coating plant in Neuwied
• Grain-oriented electrical steel products of ThyssenKrupp Electrical Steel
• Hot-dip galvanizing line of ThyssenKrupp Galmed in Spain

Under the optimization program, the Steel Europe workforce would be reduced by over 2,000 employees to less than 25,600 employees. (From a press release on February 8, 2013)

Merger with Finnish company Outokumpu
-The Company announced that it completed the merger of its stainless steel business Inoxum with the Finnish company Outokumpu. This transaction leaves the Company with a 29.9 percent stake in the new company. (From a press release on December 28, 2012)

R&D Expenditure

(in million EUR)

	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012	FY ended Sep. 30, 2011
Total	647	644	551

R&D Structure

-The Company has more than 3,000 employees working in research and development around the world.

Product development

Hot-stamped blank with varying strength
-The Company has developed a new hot-stamped blank with defined zones of differing strength, 1900 MPa and 1500 MPa, in a single component by use of its tailored tempering process. The Company has engineered this technology by utilizing a forming simulation system to calculate mechanical properties of blanks. Adopting the tailored tempering process to manufacture automotive components such as the B-pillars, front frames, and roof frames, contributes to a reduction in vehicle weight, while maintaining the blank's strength. In addition, fewer junction areas reduce the number of components. The Company intends to increase sales activities for the new blank, targeting European models of Japanese automakers focusing on developing lightweight, fuel-efficient vehicles. (From an article in the Nikkan Jidosha Shimbun on Jun 14, 2013)

Capital Expenditures

(in million EUR)

	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012	FY ended Sep. 30, 2011
Overall	1,411	2,204	2,771
-Steel Europe	408	505	431
-Components Technology	389	420	361
-Steel Americas	170	515	1,369

Investment Inside Germany

-The Company started operation of ThyssenKrupp Valvetrain GmbH, a new production plant for cylinder-head covers, in Ilsenburg in Saxony-Anhalt/Germany. Approximately EUR 50 million was invested in the facility, with EUR 10 million coming from the state of Saxony-Anhalt under an investment support program. The plant has the capacity to produce around a million cylinder-head covers a year. The opening of the new plant created approximately 180 new jobs. (From a press release on August 28, 2013)

-The Company begun building a new production facility for assembled camshafts at its Chemnitz plant in Germany. The new facility is being built at Presta Camshafts' Chemnitz production plant adjacent to the currently existing production buildings. Construction work was scheduled to complete by the end of 2013. The Company's Chemnitz plant has been producing camshafts since 2007. While the focus was initially on the production of assembled camshafts for car engines, the site, with a workforce of 200 employees, has grown into a center of excellence for the manufacture of assembled truck camshafts. (From a press release on July 26, 2013)

-The Company is concentrating its activities in carbon fiber reinforced plastics at Kesselsdorf, Germany. The Company has inaugurated Tech Center Carbon Composites and a production facility called ThyssenKrupp Carbon Components GmbH. While the Tech Center's task is to support carbon composite projects throughout the Group, ThyssenKrupp Carbon Components will focus on the development and production of vehicle components such as lightweight carbon wheels. (From a press release on June 14, 2013)

Investment Outside Germany

<China>
-The Company announced that it is opening a new truck crankshaft factory, ThyssenKrupp Engine Components Co. Ltd., in Nanjing, Jiangsu Province, China. The new plant, built at a cost of roughly USD 190 million, will employ approximately 650 people and produce up to 345,000 crankshafts a year. (From a press release on April 18, 2013)