Financial Overview

(in million EUR)

	FY ended Sep. 30, 2014	FY ended Sep. 30, 2013	Rate of change (%)	Factors
Overall
Sales	41,304	39,782	3.8	1)
EBIT	1,151	(552)	-	-
Steel Europe
Sales	8,857	9,620	(7.9)	2)
EBIT	192	62	209.7	-
Components Technology
Sales	6,172	5,712	8.1	3)
EBIT	235	168	39.9	-
Steel Americas
Sales	2,060	1,867	10.3	4)
EBIT	72	(1,180)	-	-

Factors
1) Overall
-In the FY ended September 30, 2014, the Company's sales increased by 3.8% to EUR 41,304 million. Sales increased in all of the Company's business areas except for Steel Europe, with strong growth and demand occurring in the Company's capital goods operations. 

2) Steel Europe
-The Company's Steel Europe business area experienced a decline in sales of 7.9% in the FY ended September 30, 2014 to EUR 8,857 million. Reasons for the decline in sales include lower average net selling prices of steel in the European market, as well as the Company's prior disposal of its tailored blanks business.

3) Components Technology
-Sales in the Company's Components Technology segment increased 8.1% in the FY ended September 30, 2014 to EUR 6,172 million. Recovery in the western European, Chinese, and NAFTA automotive markets helped sales, while weakness in India and Brazil partially offset those gains. Similarly, increased demand in China for industrial components was hampered by weak demand for construction equipment components in western Europe.

4) Steel Americas
-During the FY ended September 30, 2014, the Steel Americas segment increased its sales by 10.3% over the previous year to EUR 2,060 million. Increased production and shipments contributed to the increase in sales.

Acquisitions

-The Company announced that the transfer of VDM and AST from Outokumpu, a group of companies producing stainless steel and high-performance alloys, has completed. Outokumpu will transfer 100% of the shares of VDM, a high-performance alloy company, and AST, a stainless steel plant in Italy, to the Company. Additionally, the Company will also gain control of smaller stainless steel service centers. As part of the transaction, the Company divested its 29.9% shareholding and terminated all further financial links with Outokumpu. (From a press release on February 28, 2014)

Restructuring

Sales agreement and contract with NSSMC and ArcelorMittal
-The Company announced that it had completed the divestiture of its steel processing plant, ThyssenKrupp Steel USA, LLC, to a consortium consisting of Nippon Steel & Sumitomo Metal Corporation (NSSMC) and ArcelorMittal SA. The consortium purchased the plant for USD 1.55 billion, each having invested 50% in the acquisition. In addition, the Company and the consortium agreed upon a long-term slab supply contract which will provide a sustainable solution for the ThyssenKrupp CSA steel mill in Brazil. The consortium will purchase 2 million tons of slabs annually from ThyssenKrupp CSA up to 2019. This will secure a minimum utilization level of 40% for ThyssenKrupp CSA for several years.

R&D Expenditure

(in million EUR)

	FY ended Sep. 30, 2014	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012
Total	708	647	644

R&D Structure

-The Company has approximately 3,000 employees working in research and development at over 100 development centers in the world.

Product development

Incar plus automotive development project
-The Company presented the results of its InCar plus research project, a project designed to find new solutions for energy efficiency, electromobility, and weight reduction in automotive manufacturing. 40 new components and solutions were developed for the automotive industry under InCar plus, with components offering weight savings of up to 50% and cost savings of up to 20%. Additionally, InCar plus solutions enable reduced CO2 emissions of up to 8 grams per kilometer. Solutions that were designed for InCar plus include a new steel composite material, a redesigned rotor for use in electric motors, and use of carbon fiber components such as shock absorber tubes and steering column parts.

Capital Expenditures

(in million EUR)

	FY ended Sep. 30, 2014	FY ended Sep. 30, 2013	FY ended Sep. 30, 2012
Overall	1,141	1,411	2,204
-Steel Europe	404	408	505
-Components Technology	356	389	420
-Steel Americas	89	170	515

Investment in Germany

-The Company's Steel Europe segment announced that it has started to revamp one of the continuous casters in its facility in Duisburg-Beeckerwerth, Germany. By modernizing continuous caster 1, the Company hopes to improve slab quality and widen its product range. The modernization will cost approximately EUR 90 million and be completed in less than eight weeks. Continuous caster 1 in Duisburg-Beeckerwerth has a production capacity of approximately 2.3 million tons per year and primarily produces slabs for special steels for the automotive industry. (From a press release on July 22, 2014)

-The Company announced that its Steel Europe segment will modernize its second converter and the associated waste-heat boiler system at the steelmaking plant in Duisburg-Bruckhausen, Germany. Approximately EUR 21 million was invested in the modernization process, which is scheduled to complete at the end of July. The first of the two converters was replaced last year, at a cost of approximately EUR 20 million. Combined, the two converters produce five million tons of liquid steel per year. (From a press release on July 7, 2014)

-The Company announced that blast furnace 2, located in Duisburg-Schwelgern, Germany, will be cooled down to allow modernization work to begin in the middle of June 2014. Blast furnace 2 operations are expected to resume at the end of September 2014. Including work done on dismantling, maintenance and repair, the Company's Steel Europe segment will spend more than EUR 200 million on the project. (From a press release on May 16, 2014)

Investment outside Germany

<China>
-The Company opened a new automotive components factory in Shanghai, China. The Company invested approximately EUR 100 million in the 35,000-square-meter site, which will provide steering and damper systems for the Chinese market. The plant has several production lines dedicated towards manufacturing steering components and electronic steering systems. An additional production line for passive damper systems is currently being ramped up and will go into full production in the coming months, while a line for forged steering components will be added in the next fiscal year. The new facility will have an annual production capacity of approximately 750,000 electric steering systems and 1.8 million damper systems. Approximately 300 new jobs will be created by the new facility. (From a press release on July 2, 2014)

-The Company opened a new automotive supply plant in Chengdu, China. EUR 20 million was invested in the new plant, which produces springs and stabilizers for the Chinese market and created approximately 200 jobs. The plant is a joint venture between the Company and Fawer Automotive Parts Ltd, with the Company owning 60% and Fawer Automotive Parts owning the remaining 40%. The plant has an annual production capacity of 3 million springs and 1.5 million stabilizers. Operations at the 14,000-square-meter plant began in October 2013. (From a press release on December 11, 2013)

<Brazil>
-The Company began construction of a new automotive component plant in Pocos de Caldas, Brazil. The new facility will manufacture cylinder-head modules. Approximately EUR 40 million will be invested in the construction of the plant, which is expected to be completed by the end of 2014. Operations are scheduled to begin in early 2015. The new plant is expected to produce over one million modules a year, and create 170 new jobs. (From a press release on February 18, 2014)