Cover photo:

A distinctive feature of KUKA's laser robot is an innovative, quick and precise bonding process that enables materials to be very reliably joined in applications such as railway car and mechanized vehicle construction. Here KUKA utilizes its applications and automation technology engineering leadership by making its carmaking experience and expertise available to other sectors and industries.

C O N T E N T S

1 Management report

2 Overview
4 KUKA equity
6 General conditions
6 Earnings, financial and assets situation
8 Employees
9 Divisions
14 R&D, Capital expenditures
15 Risk management
15 Outlook
17 Interim financial statements

K U K A G R O U P, K E Y F I G U R E S

	9 Months	9 Months	Change
€ million	2009	2008
Orders received	673.8	1028.6	-34.5%
Order backlog (09/30)	564.9	656.2	-13.9%
Sales revenues	655.4	924.0	-29.1%
Gross profit	126.9	203.0	-37.5%
in % of sales revenues	19.4%	22.0%	-
Operating result (EBIT)	-28.0	52.0	-
in % of sales revenues	-4.3%	5.6%	-
Net result	-38.3	30.5	-
Earnings per share in €	-1.52	1.17	-
Capital expenditure	16.0	22.6	-29.2%
Equity ratio in %	22.7%	24.2%	-
Net debts	-87.5	-97.9	-
Employees (09/30)	5,909	6,129	-3.6%

€ million	3rd Quarter 2009	3rd Quarter 2008	Change
Orders received	206.9	292.1	-29.2%
Order backlog (09/30)	564.9	656.2	-13.9%
Sales revenues	217.7	343.1	-36.5%
Gross profit	37.4	71.2	-47.5%
in % of sales revenues	17.2%	20.8%	-
Operating result (EBIT)	-5.1	20.0	-
in % of sales revenues	-2.3%	5.8%	-
Net result	-2.3	11.8	-
Earnings per share in €	-0.1	0.46	-
Capital expenditure	4.9	7.4	-33.8%
Employees (09/30)	5,909	6,129	-3.6%

G R O U P I N T E R I M R E P O R T

KUKA Aktiengesellschaft to September 30, 2009

O V E R V I E W

Orders received decline stabilizes in the nine months 2009 (down 35 percent compared to last year)
Order backlog remains high at EUR 565 million
Operating result (EBIT) at EUR -28 million; EUR -10.6 million after adjusting for one-time charges of EUR 17.4 million
Guidance for 2009 adjusted

KUKA Group's order situation did not change substantially in the third quarter of 2009 in view of the economic crisis. Orders received in the first three quarters of 2009 were reported at EUR 673.8 million, down sharply from last year's EUR 1,028.6 million. This 34.5 percent drop in the first nine months is only slightly better than the halfyear figure of –36.6 percent. The Robotics division generated new orders in the amount of EUR 227.1 million, down 39.5 percent from the prior year's EUR 375.2 million. This was primarily due to the slump in demand from the automotive sector, which was particularly hard hit with a decline of 54.4 percent. The Systems division was also faced with declines, particularly in Europe (excluding Germany) and in North America. In total, the division reported orders received of EUR 468.8 million for the first nine months of 2009. This represents a drop of 31.6 percent compared to the prior year's comparable period. KUKA thus performed significantly better than the companies belonging to the German Engineering Federation (VDMA), whose orders received in the first nine months were 44 percent below last year's numbers.

The Group received orders totaling EUR 206.9 million during the third quarter of 2009, 29.2 percent less than the EUR 292.1 million generated during last year's comparable quarter. In total, the Robotics division's orders received were down 46.3 percent to EUR 70.5 million. Although July and August continued to be very weak, the business started to pick up again in September. The Systems division's orders received were only down 14.6 percent to EUR 146.3 million thanks to a major order from Russia.

Sales revenues for the first three quarters of 2009 came in at EUR 655.4 million, 29.1 percent below the comparable prior year's EUR 924.0 million. Robotics' sales revenues were down 29.2 percent to EUR 244.0 million and Systems' slid 29.4 percent to EUR 434.4 million. KUKA Group's book to bill ratio came in at 1.03.

Group sales revenues of EUR 217.7 million in the third quarter of 2009 were 36.5 percent less than the EUR 343.1 million generated the year prior. The year over year declines at the two divisions were comparable, with Robotics down 37.8 percent and Systems dropping 35.5 percent.

Order backlog as of September 30, 2009 was EUR 564.9 million, only 13.6 million or 2.4 percent less than the EUR 578.5 million posted at the period end of the first half year. However, the lower orders received produced a drop of EUR 91.3 million or 13.9 percent when compared to the prior year's period-end number of EUR 656.2 million. While Robotics' order backlog plunged 40.7 percent, the Systems division's decline of 7.0 percent was considerably less because of the longer orders-on-hand pipeline and the major orders received in the second and third quarters of 2009. The Group's business activity is currently notionally secured for 5.2 months versus 5.9 months as of September 30, 2008. The Systems division's activity is notionally secured for 6.9 months

Significantly lower revenues, lower capacity utilization and one-time charges, including special accruals for the restructuring of foreign subsidiaries, primarily in the second quarter of 2009, weighed on the Group's operating result (EBIT). After generating an EBIT of EUR 52.0 million and an EBIT margin of 5.6 percent in the first three quarters of last year, this year the operating result and EBIT margin were negative at EUR -28.0 million and –4.3 percent respectively. Of this total, EUR -6.5 million were attributable to the Robotics division, compared to EUR 30.0 million a year prior. The current results reflect an EBIT margin of –2.7 percent. The Systems division posted a result of EUR –15.1 million compared to EUR 31.8 million a year earlier, which reflects an EBIT margin of –3.5 percent. Special one-time charges totaled at Group level EUR 17.4 million.

KUKA Group reported an EBIT of EUR -5.1 million and an EBIT margin of –2.3 percent for the third quarter of 2009. In the third quarter of 2008, the Group generated an EBIT of EUR 20 million and an EBIT margin of 5.8 percent. The negative result was primarily generated by the Robotics division, which was down EUR 4.5 million, while Systems reported a slightly positive result of EUR 0.3 million for the quarter just ended.

Due to the economic crisis and the resulting decline in capital spending by its customers, KUKA Group launched a cost-cutting program totaling more than EUR 70 million for 2009. Savings of EUR 40 million are targeted for material and equipment costs and EUR 30 million for personnel costs. As a result of this cost reduction program, the company was able to save about EUR 45 million as of September 30, 2009, compared to EUR 23 million at the half-year mark of 2009. The cost-cutting program is being selectively enhanced in order to make cost structures more flexible and the product portfolio more competitive.

C H A N G E S I N T H E S U P E R V I S O R Y B O A R D A N D E X E C U T I V E B O A R D

On September 3, 2009, Dr. Rolf Bartke, Chairman of the Supervisory Board and three other Supervisory Board investor representatives submitted their resignations, effective September 18, 2009. In addition, the contracts of the two Executive Board members Dr. Horst Kayser (CEO) and Dr. Matthias J. Rapp were terminated effective September 30, 2009 by mutual agreement.

On September 21, 2009, the newly formed Supervisory Board met for the first time and nominated Dr. Till Reuter as chairman. Prof. Dirk Abel, PhD, Prof. Uwe Loos, PhD, Dr. Uwe Ganzer and Guy Wyser-Pratte assumed the four vacant positions on the Supervisory Board. Prof. Dirk Abel, PhD, Director of the Control Engineering department at Rheinisch-Westfälischen Technischen Hochschule (RWTH Aachen University) will bring to the table his expertise in the field of automation and supports KUKA penetration in new growth industries. Prof. Uwe Loos, Ph.D., former head of production at Porsche AG and CEO of FAG Kugelfischer AG was appointed to the Supervisory Board for his knowledge of the automotive sector. Dr. Uwe Ganzer was named head of the audit committee. He has been the sole executive manager of Varta AG since 2003 and at the same time he is responsible for finance. Mr. Guy Wyser-Pratte was appointed to the fourth vacant seat at his own proposal. With a stake of nearly 10 percent, Mr. Wyser-Pratte is KUKA AG's second-largest shareholder.

On September 29, 2009, the Supervisory Board asked Dr. Reuter to take over as interim CEO of the company effective October 1, 2009. Dr. Reuter will take a leave of absence from his position on the Supervisory Board during this time. Mr. Bernd Minning, CEO of Grenzebach Maschinenbau GmbH, will assume the position of Supervisory Board chairman in the interim. Mr. Stefan Schulak, former CFO of KUKA Roboter GmbH, was appointed as the Group's new CFO effective October 1, 2009.

K U K A E Q U I T Y

S T O C K M A R K E T S O N T H E R I S E

As a result of the moderate development of the recession in Germany and the other major industrial nations, national and international stock markets have been trending higher since March following their steep declines at the beginning of the year. This trend accelerated at the start of the third quarter of 2009, driven by expectations of an imminent economic recovery. The MDAX, Germany's Index of mid-cap listed companies, rose sharply in the quarter just ended. In total, the MDAX, which closed at 7,359 at the end of September 2009, was up about 30 percent from 5,756 at the start of the year and about 75 percent higher than the March low for the year of 4,163.

K U K A S H A R E P R I C E T R E N D I N G S I D E W A Y S

KUKA's share price moved only sideways during the quarter just ended, as was the case during the first and second quarters of 2009. The negative impact of the economy on the company's main customer sector, the automotive industry, was the main driver of the share price performance over the course of the year. Since the beginning of the year, KUKA shares are down about 17 percent. In the third quarter of 2009, the share price declined from EUR 10.93 on July 1, 2009 to EUR 10.50 on September 30, 2009. On September 3, KUKA shares were downgraded and are now listed on the SDAX, the index for smaller listed companies. According to Deutsche Börse, this was due to the lower market capitalization of KUKA shares because of the lower number of free float shares.

G E N E R A L C O N D I T I O N S

Following the severest economic recession in Germany's history during the winter months of 2008/09, signs of a slowly recovering economy multiplied during the summer. Monthly industrial orders received are starting to rise again, driven by exports. Overall, gross domestic product during the third quarter may expand by 0.9 percent compared to the prior quarter according to the Handelsblatt-Barclays indicator. Leading German economic research institutes thus raised their forecasts for economic growth in Germany for the current year from –6.2 percent to –5 percent in their newest reports. At the same time, the corresponding numbers for year over year gross domestic product growth in 2010 were raised from the current 0.5 percent to 1.2 percent.

In the automotive industry, government sponsored scrapping programs in all major markets dampened the economy-driven slump in demand. According to reports by the German automotive industry association VDA, Germany continued to lead, with new car registrations rising 26 percent in the first nine months of 2009, the same level as at the end of the first half of 2009. This occurred in spite of the expiry of the environmental subsidy. On the other hand, the Western European market (including Germany) posted a further, although less severe, decline of five percent in sales during the same period. At the end of the first half year, sales were down 11 percent. The drop in demand in the United States eased to –28 percent in the first nine months of 2009 compared to –35 percent at the half-year mark. Sales of the Jeep Wrangler remained stable during the same period, with the year over year change for the first nine months reported at near zero. In general, new car registrations in all major markets are already higher than the comparable prior year's numbers since August. According to VDA, automotive industry sales have thus bottomed out.

The orders received slide in the mechanical and plant engineering sector also ended in the third quarter of 2009. For September, the German Engineering Federation (VDMA) reported year-over-year order declines of 33 percent, less than in prior months for the first time. However, overall the order slump for the first nine months of 2009 still came in at –44 percent. The Federation is expecting orders received to stabilize at a low level in the fourth quarter due to the low numbers in the prior year's comparable quarter.

The robotic and automation sector's performance was somewhat worse than other VDMA sectors in the first nine months of 2009, declining by 49 percent. But the sector's performance was significantly better than that of its international competitors. Japanese robot manufacturers reported a sales decline (number of units) of 62 percent after the first eight months. (Source: JARA, Japan Robotic Industry Association). Overall, KUKA Group's orders received level continued to beat the industry numbers.

E A R N I N G S , F I N A N C I A L A N D A S S E T S S I T U A T I O N

In the first three quarters of 2009, KUKA Group was able to generate sales revenues of EUR 655.4 million. This represents a decline of 29.1 percent or EUR 268.6 million compared to the EUR 924.0 million generated during last year's same period. Third-quarter 2009 sales revenues of EUR 217.7 million were a significant 36.5 percent or EUR 125.4 million lower than the prior year's numbers, but slightly better than the previous quarter's EUR 210.7 million.

Gross sales margin (gross margin) fell from 22.0 percent last year to 19.4 percent for the first three quarters of 2009. The absolute number reported was EUR 76.1 million. This can be broken down into EUR 59.1 million attributable to the reduced sales volume and EUR 17.0 million due to lower margins. The Robotic division's gross margin was down 3.2 percent, while the Systems division reported a drop of 2.4 percent.

KUKA Group's gross margin continued to decline in the third quarter of 2009. At 17.2 percent, it was sharply lower than the 20.8 percent posted for the third quarter of 2008. The cost-cutting measures already taken in conjunction with the cost reduction program are counteracting a greater decline in gross margin.

Due to the difficult market environment and one-time charges including accruals for restructuring in the second quarter of 2009, KUKA Group fell short of the prior year's excellent result for the first nine months by a considerable margin. Both divisions contributed to the Group's negative EBIT of EUR -28.0 million. The Robotics division's operating earnings fell from EUR 30.0 million in 2008 to EUR -6.5 million for the current year. During the same period, the Systems division's earnings fell from EUR 31.8 million in the year prior to EUR -15.1 million for the first nine months of the current year, mainly due to the accruals for restructuring.

EBIT was again negative in the third quarter of 2009, ending at EUR -5.1 million. However, the Systems division managed to report a positive EBIT of EUR 0.3 million, driven mainly by the cost-cutting program. Robotics generated an EBIT of EUR -4.5 million, mainly because of the substantially lower sales revenues from the automotive business.

Net interest expense in the first nine months of 2009 improved by EUR 1.3 million, going from EUR -4.8 million in the first nine months of 2008 to EUR -3.5 million. It includes mainly the interest expenses for the convertible bond in the amount of EUR 3.8 million, interest on allocations to pension accruals of EUR 3.0 million and other interest income, primarily in connection with the finance lease associated with the KTPO pay-on-production contract in the United States. Interest income from this finance leasing was not yet included during the first quarter of 2008.

Earnings before taxes (EBT) in the first nine months of 2009 totaled EUR -31.5 million, compared to EUR 47.2 million in the first nine months of 2008. Tax expense was EUR 6.8 million, down from EUR 16.7 million the year prior. Aside from the negative earnings before taxes, the result was negatively impacted in large part due to the forfeiture of tax loss carryforwards when one of the major shareholders exceeded the legally stipulated shareholding threshold of 25 percent.

Earnings after taxes during the reporting period were EUR -38.3 million compared to last year's EUR 30.5 million. In the quarter just ended, earnings after taxes were reported at EUR -2.3 million compared to EUR 11.8 million at the end of Q3 2008.

As of September 30, 2009 KUKA Group's balance sheet total were EUR 123.8 million or 14.3 percent lower than at the end of 2008. Construction contracts were delivered to customers on schedule, which caused a reduction of EUR 48.2 million as of the September 30, 2009 to EUR 118.9 million from December 31, 2008's EUR 167.1 million. The net difference in receivables and liabilities from construction contracts as of September 30 was EUR 81.9 million, compared to EUR 112.5 million as of December 31, 2008. Trade receivables were also lower by EUR 36.9 million, declining from EUR 164.4 million on December 31, 2008 to EUR 127.5 million. On the liability side, trade payables were down EUR 73.4 million, and other current liabilities declined by EUR 22.9 million, particularly in the personnel area.

The equity ratio fell to 22.7 percent as of September 30, 2009, from 24.7 percent on December 31, 2008. In total, KUKA Group's equity in the first nine months of 2009 was down EUR 45.5 million to EUR 168.0 million. In addition to the income-neutral reduction of equity as a result of actuarial losses related to pension accruals and currency exchange effects, this was primarily the result of the negative result during the period.

The Group's net debt, which is calculated by subtracting current and non-current financial liabilities from liquid assets, was EUR 87.5 million as of September 30, 2009, a reduction of EUR 6.9 million from the prior quarter's EUR 94.4 million. As of December 31, 2008, net debt was EUR 53.6 million. The difference is mainly attributable to the EUR 73.4 million decline in trade payables, which went from EUR 149.1 million on December 31, 2008 to EUR 75.7 million as of September 30, 2009. The Group's net debt has stabilized despite declining orders received in a difficult market environment.

KUKA Group's free cash flow for the third quarter of 2009 was positive for the first time at EUR 7 million in the current year. As a result, the negative free cash flow in the first nine months of 2009 improved from EUR -40.6 million to EUR -33.6 million.

E M P L O Y E E S

The KUKA Group had 5,909 employees as of September 30, 2009, expressed as full time staff, which reflects a decline of 220 persons from the prior year's 6,129 workers. There was a significant personnel reduction in the manufacturing area, where 159 workers were cut from the payroll.

As a result of capacity adjustments and the reassignment of shared service employees to KUKA AG, the Robotics division had 187 fewer employees than the year prior. The Systems division cut 100 staff members from the payroll, mostly in the United States. Due to the newly created Shared Service Center for the IT, purchasing, human resources and legal departments, the number of KUKA AG employees rose by 67.

The number of contract workers was down 50 percent from 1,125 persons last year to 567 as of September 30, 2009.

In September 2009, KUKA hired 37 new apprentices, increasing the total in this category to 192 persons.

D E V E L O P M E N T S I N T H E D I V I S I O N S

R O B O T I C S , K E Y F I G U R E S

	9 Months	9 Months	Change
€ million	2009	2008
Orders received	227.1	375.2	-39.5%
Order backlog (09/30)	82.6	139.2	-40.7%
Sales revenues	244.0	344.8	-29.2%
Gross profit	75.3	117.5	-35.9%
in % of sales revenues	30.9%	34.1%	-
Operating result (EBIT)	-6.5	30.0	-
in % of sales revenues	-2.7%	8.7%	-
Employees (09/30)	2,055	2,242	-8.3%

€ million	3rd Quarter 2009	3rd Quarter 2008	Change
Orders received	70.5	131.2	-46.3%
Order backlog (09/30)	82.6	139.2	-40.7%
Sales revenues	75.0	120.5	-37.8%
Gross profit	19.4	40.8	-52.5%
in % of sales revenues	25.9%	33.9%	-
Operating result (EBIT)	-4.5	10.7	-
in % of sales revenues	-6.0%	8.9%	-
Employees (09/30)	2,055	2,242	-8.3%

R O B O T I C S 9 M O N T H S

The difficult market situation led to a 39.5 percent decline in the Robotics division's orders received for the first nine months of 2009. They came in at EUR 227.1 million compared to EUR 375.2 million for the first nine months of 2008. This was mainly due to the general economic crisis, which hit the automotive sector particularly hard. Orders in this area were down 54.4 percent compared year over year. Even the general industry and service businesses were down sharply from the prior year's numbers, falling 32.2 percent and 25.5 percent respectively.

Cumulative sales revenues for the first nine months of 2009 totaled EUR 244.0 million. Last year's total after nine months was EUR 344.8 million. This represents a decline of 29.2 percent. While automotive revenues were down a significant 45.5 percent in comparison to last year as a result of the weak capital spending by this sector, contributions from the general industry and service businesses partially offset the slump in the automotive business. The results posted for these sectors were down 17.1 percent and 18.3 percent respectively.

The Robotics division's order backlog as of September 30, 2009 was also down, declining EUR 56.6 million or 40.7 percent from a year earlier. Orders on hand currently secure business activity for 2.0 months, also down, from 3.7 months as of September 30, 2008.

The Robotics division reported a cumulative operating result (EBIT) of EUR -6.5 million for the first nine months of 2009, down sharply from the prior year's EUR 30.0 million. Cost-cutting measures, which were initiated to improve the result, have already started to bear fruit.

The Robotics division had 2,055 employees as of September 30, 2009. This is 187 persons or 8.3 percent less than the 2,242 employees on September 30, 2008. Most of the cuts were made to the manufacturing workforce. The number of contract workers was also down significantly year over year. At last year's period end, 379 persons were employed on a contract basis, primarily in manufacturing. In conjunction with the capacity adjustment measures, this number was cut by 283 or 74.7 percent.

R O B O T I C S T H I R D Q U A R T E R

The Robotics division's third-quarter 2009 orders received came in at EUR 70.5 million. This represents a decline of 46.3 percent or EUR 60.7 million compared to the EUR 131.2 million generated during the same period last year. The prior quarter's orders were down 47.7 percent year over year. Still, the division was able to win various orders at VW: KUKA robots will soon be used to manufacture the VW Lupo in Bratislava. Robotics also received fairly large orders for VW's subsidiaries in China and Brazil. Renault will also soon be using KUKA robots in Morocco and for commercial vehicle production. Fairly large general industry orders were received from LPKF Laser & Electronic to manufacture mobile radios in Asia, and from Aethra, a Brazilian automation specialist.

Sales revenues of EUR 75.0 million in the third quarter of 2009 were 37.8 percent below last year's EUR 120.5 million. Here too, the biggest drop was experienced by the automotive segment, which was down 48.6 percent.

The third-quarter 2009 operating result (EBIT) of EUR -4.5 million was primarily driven by the significantly lower sales revenues from automotive.

O R D E R S R E C E I V E D B Y S E G M E N T : R O B O T I C S

	9 Months	9 Months	Change
€ million	2009	2008
Automotive	66.6	146.0	-54.4%
General Industry	104.6	154.2	-32.2%
Service	55.9	75.0	-25.5%
Total Robotics	227.1	375.2	-39.5%

	3rd Quarter	3rd Quarter	Change
€ million	2009	2008
Automotive	19.7	59.6	-66.9%
General Industry	34.2	46.4	-26.3%
Service	16.6	25.2	-34.1%
Total Robotics	70.5	131.2	-46.3%

Almost half the Robotics division's orders received of EUR 104.6 million for the first nine months of 2009 came from general industry. The exact number was 46.1 percent. Last year, general industry's share was still 41.1 percent. This increase is partially due to the general economic crisis, which had a particularly strong impact on the automotive sector. Nevertheless, general industry's many different sectors also benefited from the significant flexibility of robotics applications. Despite a year over year decline of 25.5 percent, the service business unit's share of the division's orders received rose from 20.0 percent in 2008 to 24.6 percent in 2009.

The orders received situation in July and August continued to be weak in the third quarter of 2009. Since September, the business has started to pick up again. Overall, automotive and service orders were down a higher than average 66.9 percent and 34.1 percent respectively. General industry's decline of 26.3 percent compared to the prior year's comparable quarter was still relatively respectable.

S Y S T E M S , K E Y F I G U R E S

	9 Months	9 Months	Change
€ million	2009	2008
Orders received	468.8	685.4	-31.6%
Order backlog (09/30)	489.5	526.5	-7.0%
Sales revenues	434.4	615.5	-29.4%
Gross profit	48.5	83.8	-42.1%
in % of sales revenues	11.2%	13.6%	-
Operating result (EBIT)	-15.1	31.8	-
in % of sales revenues	-3.5%	5.2%	-
Employees (09/30)	3,651	3,751	-2.7%

€ million	3rd Quarter 2009	3rd Quarter 2008	Change

Orders received	146.3	171.4	-14.6%
Order backlog (09/30)	489.5	526.5	-7.0%
Sales revenues	151.6	234.9	-35.5%
Gross profit	17.9	29.6	-39.5%
in % of sales revenues	11.8%	12.6%	-
Operating result (EBIT)	0.3	12.5	-
in % of sales revenues	0.2%	5.3%	-
Employees (09/30)	3,651	3,751	-2.7%

S Y S T E M S 9 M O N T H S

The Systems division's orders received of EUR 468.8 million for the first nine months of 2009 were unable to match the high level of EUR 685.4 million generated during the first nine months of 2008. This decline of 31.6 percent was primarily attributable to Europe (excluding Germany) and North America.

Sales revenues in the first nine months came in at EUR 434.4 million, a drop of 29.4 percent from last year's EUR 615.5 million.

As of September 30, 2009, the division's order backlog was only down 7.0 percent thanks to major orders received in the second and third quarters. Orders on hand as of September 30, 2009 were reported at EUR 489.5 million, compared to EUR 526.5 million on September 30, 2008. Business activity continued to be notionally secured for 6.9 months, the same as on September 30, 2008.

The negative operating profit (EBIT) of EUR -15.1 million was driven by declining sales revenues and lower capacity utilization than during the first nine months of the prior year. Last year's operating profit after nine months was EUR 31.8 million. Extraordinary accruals of about EUR 13 million posted during the second quarter of 2009 for restructuring foreign subsidiaries weighed on this result. As already stated in the 2009 half-year interim report, the Systems division's business in France is being reorganized and the Tours and Montigny near Paris locations are being closed (see also press release dated July 20, 2009: KUKA reorganizes business in France).

As of the end of September 2009, the Systems division had 3,651 employees compared to 3,751 as of last year's period end. The number of persons cut from the payroll was thus 100 or 2.7 percent. Adjustments occurred primarily in manufacturing and administration, were 51 and 40 persons were let go respectively. The number of contract workers was down by 270 persons from 735 on September 30, 2008. This year's final total was 465, down about one-third.

S Y S T E M S T H I R D Q U A R T E R

While total orders received in the first half of fiscal 2009 dropped 37.3 percent year over year, the decline was only 14.6 percent in the third quarter of 2009. As already announced, KUKA Systems' Industrial Solutions business unit achieved a breakthrough in the Russian market and received a major order from the rail car manufacturer TVSZ. KUKA Systems' automotive orders included several projects for assembly and testing equipment as well as press tool manufacturing. The division received orders from well known customers such as VW, BMW, Daimler, Renault and ZF.

The Systems division's sales revenues in the third quarter came in at EUR 151.6 million, which compares to the prior year's EUR 234.9 million.

Despite the difficult market situation, the Systems division was able to generate a slightly positive EBIT (operating result) of EUR 0.3 million. This is primarily attributable to the cost-cutting measures that were implemented.

O R D E R S R E C E I V E D B Y R E G I O N : S Y S T E M S

	9 Months	9 Months	Change
€ million	2009	2008
Germany	147.9	126.9	16.5%
Europe (without Germany)	102.2	221.1	-53.8%
USA	157.2	257.6	-39.0%
Asia and other regions	61.5	79.8	-22.9%
Total orders received	468.8	685.4	-31.6%

	3rd Quarter	3rd Quarter	Change
€ million	2009	2008
Germany	29.0	46.7	-37.9%
Europe (without Germany)	53.6	71.0	-24.5%
USA	38.7	40.8	-5.1%
Asia and other regions	25.0	12.9	93.8%
Total orders received	146.3	171.4	-14.6%

Due to the nature of the project business, orders received by region are subject to major fluctuations. In fact, in the first three months of the year, orders received from all regions other than Germany were below last year's level. This situation continued in the third quarter of 2009, with the exception of Asia.

R E S E A R C H A N D D E V E L O P M E N T , C A P I T A L E X P E N D I T U R E S

KUKA Group spent EUR 27.5 million on R&D in the first three quarters of the year, which is EUR 4.6 million or 20.1 percent more than the EUR 22.9 million invested during the prior year's comparable timeframe. This corresponds to 4.2 percent of sales, versus 2.5 percent last year. This increase is due to the Group's lower sales revenues, as well as the completion of important development projects.

Over 90 percent of the EUR 26.0 million spent on R&D were for the Robotics, corresponding to 10.7 percent of the division's sales revenues. The remaining expenses are attributable to the Systems division, where the R&D budget is always considerably lower as a result of the high volume of customer–specific development activities.

KUKA Robotics presented two new robots specially designed for arc welding applications at Germany's "Schweissen & Schneiden" (welding and cutting) exhibition. The hollow shaft design enables the user's cycle times to be improved by up to 10 percent. The robots can be used in the construction of commercial vehicles, as well as the rail, marine and agricultural machinery manufacturing sectors.

In September, KUKA Roboter and its business partner DLR (German Aerospace Center) presented the latest findings related to using the light weight robot (LBR) at the interface between humans and robots to interested parties from industry and R&D. New application concepts such as "a worker's third hand" or applying the lightweight 14 kg robot for simple assembly tasks in industry gave delegates an insight into how these robots could be used in future.

Capital spending by the Group in the first nine months of 2009 totaled EUR 16.0 million. This decline of EUR 6.6 million or 29.2 percent from the prior year's EUR 22.6 million is the result of the Group-wide cost-cutting program.

R I S K M A N A G E M E N T

KUKA Group is exposed to market risks. These include in particular the effects of the international financial market crisis, which have worsened the general economic crisis and the access especially to external capital. There is also the issue of dependency on major customers in the automotive sector, particularly in the case of the American subsidiaries.

As from the 2nd quarter 2009, the company has violated covenants of the Syndicated Senior Facilities Agreement, which could result in the lines of credit being terminated. KUKA AG's existence could be threatened by non-recognition of the waiver requests (requests regarding waiver of cancellation of the Syndicated Senior Facilities Agreement by the banks). KUKA is currently in the midst of a waiver process, i.e. a process for the banks to waive their right to termination of credit lines. Credit lines are therefore still available to finance ongoing business.

The company management is holding in-depth discussions with the financing banks aimed at clearing up this matter. In addition to the measures already implemented, further activities to adjust the costs and financing structure are required. The Executive Board assumes that it will be able to carry through these activities successfully. On this basis, the Executive Board expects that it will be able to conclude negotiations with the lending banks in the next few months and to secure long-term financing for the Group.

With respect to other risks, please refer to the detailed risk report in the 2008 annual report (page 61), the statements of which remain essentially unchanged.

O U T L O O K

For the 2009 financial year as a whole, KUKA is now expecting to achieve an operating result (EBIT) of EUR -10 million to EUR -15 million before the extraordinary restructuring expenses. Given the restructuring costs, KUKA is currently expecting that expenses for the whole of 2009 will total at least EUR 25 million, of which EUR 17.4 million are already included in the first nine months of 2009. The ongoing cost reduction program is continuing to make progress as planned, but the operating loss in the first nine months (EBIT of EUR -10.6 million) will not be made up in the remaining three months of the financial year.

It is expected that free cash flow for the 2009 financial year as a whole will be in the order of EUR -40 million to EUR -50 million. This is largely due to the considerable drop in trade payables in the current financial year (decrease of EUR 73.4 million as of September 30, 2009, from a very high trade payables level of EUR 149.1 million as of December 31, 2008).

Performance in the fourth quarter is still subject to considerable risk. Depending on possible further decisions regarding adjustments to the Group's cost structure, restructuring expenses in particular could increase considerably.

I N T E R I M R E P O R T ( C O N D E N S E D )

G R O U P C O N S O L I D A T E D I N C O M E S T A T E M E N T ( C O N D E N S E D )

	9 Months	9 Months
€ million	2009	2008
Sales revenues	655.4	924.0
Cost of sales	-528.5	-721.0
Gross profit	126.9	203.0
Selling expenses	-59.0	-63.8
Research and development expenses	-27.5	-22.9
General and administrative expenses	-55.4	-62.3
Other operating income	13.2	16.2
Other operating expenses	-26.2	-18.2
Earnings from operating activities (EBIT)	-28.0	52.0
Net interest income/expense	-3.5	-4.8
Earnings before tax	-31.5	47.2
Taxes on income	-6.8	-16.7
Net result	-38.3	30.5
thereof minority interests in profits	-0.1	0.0
thereof shareholders of KUKA AG	-38.2	30.5

Earnings per share (in € after minority interests; diluted/undiluted)	-1.5	1.17

	3rd Quarter	3rd Quarter
€ million	2009	2008
Sales revenues	217.7	343.1
Cost of sales	-180.3	-271.9
Gross profit	37.4	71.2
Selling expenses	-18.9	-22.1
Research and development expenses	-7.5	-7.1
General and administrative expenses	-17.2	-21.6
Other operating income	5.7	10.3
Other operating expenses	-4.6	-10.7
Earnings from operating activities (EBIT)	-5.1	20.0
Net interest income/expense	-0.8	-1.9
Earnings before tax	-5.9	18.1
Taxes on income	3.6	-6.3
Net result	-2.3	11.8
thereof minority interests in profits	0.0	0.0
thereof shareholders of KUKA AG	-2.3	11.8

Earnings per share (in € after minority interests; diluted/undiluted)	-0.10	0.46

C O N S O L I D A T E D B A L A N C E S H E E T

A S S E T S

€ million	09/30/2009	12/31/2008
Non-Current assets
Fixed assets
Intangible assets	74.9	74.2
Tangible assets	89.2	93.0
Financial investments	1.0	0.4
	165.1	167.6
Long-term finance lease receivables	75.4	82.0
Long term tax receivables	10.2	11.6
Other long-term receivables and other assets	8.9	10.2
Deferred taxes	21.7	26.6
	281.3	298.0
Current assets
Inventories	135.8	151.5
Receivables and other assets
Trade receivables	127.5	164.4
Receivables from construction contracts	118.9	167.1
Receivables from affiliated companies	0.0	0.4
Current finance lease receivables	3.3	3.3
Income tax receivables	7.1	22.8
Other assets, prepaid expenses and deferred charges	23.9	16.7
	280.7	374.7

Cash and cash equivalents	43.9	41.3
	460.4	567.5

	741.7	865.5

E Q U I T Y A N D L I A B I L I T I E S

€ million	09/30/2009	12/31/2008
Equity	168.0	213.5

Non-current liabilities, provisions and accruals
Non-current financial liabilities	63.2	61.3
Other non-current liabilities	10.8	13.1
Pensions and similiar obligations	72.8	68.5
Deferred taxes	13.5	13.1
	160.3	156.0
Current liabilities
Current financial liabilities	68.2	33.6
Trade payables	75.7	149.1
Advances received	42.0	36.7
Liabilities from construction contracts	37.0	54.6
Accounts payable to affiliated companies	0.3	0.2
Other current liabilities and deferred income	80.1	103.0
Provision for taxes	7.6	11.3
Other provisions	102.5	107.5
	413.4	496.0
	741.7	865.5

C A S H F L O W S T A T E M E N T

	9 Months	9 Months
€ million	2009	2008
Net result	-38.3	30.5
Depreciation/amortization on fixed assets	18.3	18.7
Other non-payment-related expenses/income	5.8	10.4
Cash Earnings	-14.2	59.6
Result on the disposal of assets	-0.4	-0.9
Changes in
provisions	-9.3	-48.4
inventories	15.7	-34.8
receivables and deferred charges	97.5	-81.3
liabilities and deferred income	-107.0	-7.3
Cash flow from operating activities	-17.7	-113.1
Payments from disposals of fixed assets	1.0	2.0
Payments for capital expenditure on tangible and intangible assets	-16.0	-22.6
Payments for investments in financial assets	-0.9	0.0
Payments for the acquisition of a finance lease receivable	0.0	-77.1
Cash flow from investing activities	-15.9	-97.7
Free cash flow	-33.6	-210.8
Payments for the acquisition of treasury shares	0.0	-27.9
Payments of dividend	0.0	-26.1
Changes in financial liabilities	36.3	70.7
Cash flow from financing activities	36.3	16.7
Payment-related change in cash and cash equivalents	2.7	-194.1
Exchange-rate-related and other changes in cash and cash equivalents	-0.1	3.4
Change in cash and cash equivalents	2.6	-190.7
Cash and cash equivalents at the beginning of the period (01/01)	41.3	223.2
Cash and cash equivalents at the end of the period (09/30)	43.9	32.5

S T A T E M E N T O F C O M P R E H E N S I V E I N C O M E

	9 Months	9 Months
€ millions	2009	2008
Earnings after taxes	-38.3	30.5
Changes in market valuation/ hedges	0.0	-0.1
Translation adjustments	-3.1	1.3
Changes of actuarial gains and losses	-6.2	6.6
Deferred taxes on changes of acturial gains and losses	1.9	-1.2
Other comprehensive income	-7.4	6.6

Comprehensive income	-45.7	37.1
of which: attributable to minority interests	-0.1	0.1
of which: attributable to shareholders of KUKA AG	-45.6	37.0

	3rd Quarter	3rd Quarter
€ millions	2009	2008
Earnings after taxes	-2.3	11.8
Changes in market valuation/ hedges	0.0	0.3
Translation adjustments	-3.0	4.5
Changes of actuarial gains and losses	-2.8	0.0
Deferred taxes on changes of acturial gains and losses	1.2	0.0
Other comprehensive income	-4.6	4.8

Comprehensive income	-6.9	16.6
of which: attributable to minority interests	0.0	0.1
of which: attributable to shareholders of KUKA AG	-6.9	16.5

C H A N G E S T O G R O U P E Q U I T Y

					Revenue reserves
	Number of shares outstanding	Subscribed capital in € millions	Capital reserve in € millions	Treasury stock in € millions	Trans lation gains/ losses in € millions	Market valuation/ hedges in € millions	Actuarial gains and losses in € millions	Annual net income and other revenue reserves in € millions	Equity to shareholders in € millions	Minority interests in € millions	Total in € millions
01/01/2009	25,272,660	69.2	26.5	-27.9	-8.5	0.0	5.9	146.8	212.0	1.5	213.5
Comprehensive income					-3.1		-4.3	-38.2	-45.6	-0.1	-45.7
Dividend of KUKA AG									0.0
Purchase of treasury stocks within the share buyback programme									0.0		0.0
Employees' share programme								0.3	0.3		0.3
Other changes								-0.1	-0.1		-0.1
09/30/2009	25,272,660	69.2	26.5	-27.9	-11.6	0.0	1.6	108.8	166.6	1.4	168.0

					Revenue reserves
	Number of shares outstanding	Subscribed capital in € millions	Capital reserve in € millions	Treasury stock in € millions	Trans lation gains/ losses in € millions	Market valuation/ hedges in € millions	Actuarial gains and losses in € millions	Annual net income and other revenue reserves in € millions	Equity to shareholders in € millions	Minority interests in € millions	Total in € millions
01/01/2008	26,600,000	69.2	26.5	0.0	-8.2	0.0	3.5	141.1	232.1	1.4	233.5
Comprehensive income					1.2	-0.1	5.4	30.5	37.0	0.1	37.1
Dividend of KUKA AG								-26.1	-26.1		-26.1
Purchase of treasury stocks within the share buyback programme	-1,327,340			-27.9					-27.9		-27.9
Employees' share programme									0.0		0.0
Other changes								0.3	0.3		0.3
09/30/2008	25,272,660	69.2	26.5	-27.9	-7.0	-0.1	8.9	145.8	215.4	1.5	216.9

N O T E S O N T H E Q U A R T E R L Y R E P O R T ( C O N D E N S E D )

I F R S / I A S A C C O U N T I N G S T A N D A R D S

KUKA Aktiengesellschaft, headquartered in Augsburg, has prepared its condensed consolidated financial statements for September 30, 2009 according to the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS) of the International Accounting Standards Board (IASB), as well as the interpretations of the Standing Interpretation Committee (SIC) and International Financial Reporting Interpretation Committee (IFRIC), as adopted by the European Union as of the period end. The interim report is prepared in accordance with IAS 34.

All IFRS/IAS standards and interpretations of the IFRIC applicable to the 2009 financial year were taken into account. The accounting and valuation policies correspond in principle to the methods used on December 31, 2008, with the exception of the standards and interpretations that came into force for the first time in the 2009 financial year. The newly applied standards and interpretations are listed under "Changes to accounting and valuation policies".

S C O P E O F C O N S O L I D A T I O N

The Group interim report contains forty-four companies. In addition to KUKA Aktiengesellschaft, it includes six companies registered inside Germany and thirty-seven firms domiciled outside Germany, for which KUKA Aktiengesellschaft either directly or indirectly holds majority voting rights.

In comparison to December 31, 2008, the following scope of consolidation as changed as follows: Liquidations:

D.V. Automation Ltd., Halesowen / Great Britain
KUKA Welding Systems + Robot Ltd., Halesowen / Great Britain
LSW UK Ltd., Harlow / Great Britain

Mergers:

LSW Maschinenfabrik GmbH, Bremen merged with KUKA Systems GmbH, Augsburg Newly founded companies:
Hung Viet International Company Limited, Ho Chi Minh City, Vietnam
KUKA S-BASE s.r.o., Roznov p.R., Czech Republic

The scope of consolidation has thus been reduced by a total of two companies.

A C C O U N T I N G A N D V A L U A T I O N P O L I C I E S

The same valuation methodology and financial principles as those used in the consolidated financial statements for the 2008 business year were applied in preparing these interim financial statements and establishing the comparison figures to the prior year. A description of the principles is published in the notes of the 2008 Group consolidated financial statements. The latter are also available on the Internet at www.KUKA.com.

C H A N G E S T O A C C O U N T I N G A N D V A L U A T I O N P O L I C I E S

In comparison to the 2008 group financial statements, the income statement has been revised to improve transparency. The "Other operating expenses and income", which had still been shown as a summary to the end of the financial year will from now on be separately itemized. The prior year's results were adjusted accordingly.

The following new standards and interpretations have come into effect since the start of the 2009 financial year:

IFRS 8 business segments
Changes to IFRS 2 share-based compensation
IAS 1 presentation of the financial statements (revised)
IAS 23 debt capital (revised)
Changes to IAS 32 financial instruments: presentation and IAS 1 presentation of the financial report
Changes to IAS 39 eligible hedged items
Changes to IFRS (annual revision process 2007) **
Changes to IFRS 7, improved reporting of financial instruments*
Changes to IFRS 1 and IAS 27, acquisition costs related to shares of subsidiaries, jointly managed companies or associated companies
Changes to IAS 39 and IFRS 7, reclassification of financial assets
Changes to IAS 39, reclassification of financial assets: effective date and transition rules
Changes to FRIC 9 and IAS 39, embedded derivatives*
IFRIC 11 IFRS 2 transactions with treasury shares and shares of group companies
IFRIC 13 customer retention programs
IFRIC 15 agreements regarding the construction of properties
IFRIC 16 hedging a net investment in a foreign business operation
* * conditional upon endorsement by the European Union
** ** affects the following standards: IFRS 5, IAS 1, IAS 16, IAS 19, IAS 20, IAS 23, IAS 27, IAS 28, IAS 29, IAS 31, IAS 36, IAS 38, IAS 39, IAS 40 and IAS 41

IFRS 8 - business segments - as well as the revised IAS 1 - presentation of the financial statements - impact the way the financial information is published, but not the method of evaluating assets and debt. The remaining new standards and interpretations are not applicable to or have little impact on KUKA's consolidated statements.

S H A R E - B A S E D C O M P E N S A T I O N

KUKA employees of the German companies were able to acquire KUKA shares as part of an employee share program. Based on a staggered holding period of 1, 3 and 5 years, employees are credited with a bonus share for every ten KUKA shares purchased. In addition to the subscribed shares, employees were granted an additional 50 percent shares as an incentive. KUKA employees acquired a total of 205,136 shares during the financial year.

F I N A N C I N G L E A S E

As presented in the 2008 financial report, a financing lease has existed in conjunction with the car body production for Chrysler's Jeep Wrangler since the first quarter of 2008. The redemption of the financing to take over legal ownership of the buildings and production systems totaled EUR 77.1 million; as a result, the Systems division's capital employed rose.

Because of the existing agreement to supply car bodies to Chrysler, the acquisition of the production system assets were not included on the balance sheet as an asset acquisition in 2008, but instead categorized as a finance lease in accordance with IFRIC 4/IAS 17 guidelines and booked as a receivable from finance leases. In the future, sales revenues shown on KTPO's balance sheet will thus be reduced by the fictitious leasing rate. The interest component included in the fictitious leasing rate is booked under net interest income/expense, while the repayment component of this payment reduces the receivables as per schedule.

T A X L O S S E S A N D L O S S C A R R Y F O R W A R D S

The tax expense was mainly affected by the forfeiture of tax loss carryforwards as a result of a major shareholder exceeding the legally stipulated share ownership threshold of 25 percent in KUKA Aktiengesellschaft. The negative impact totaled about EUR 10 million.

E A R N I N G S P E R S H A R E

Undiluted earnings per share were calculated by dividing the group's after tax consolidated net earnings adjusted for minority interests by the Group's 25.3 million outstanding shares. The earnings per share are –EUR 1.52 per share.

S H A R E B U Y B A C K P R O G R A M

The share capital totals EUR 69,160,000, and is divided into 26,600,000 individual no-par value shares issued to bearer, the same as on December 31, 2008. Between March 25, 2008 and August 29, 2008, the company bought back its own shares on the open market as authorized at the annual general meeting on May 16, 2007. In accordance with this authorization, KUKA Aktiengesellschaft bought back 1,327,340 KUKA shares valued at EUR 27,898,339.58. As of September 30, 2009, 25,272,660 shares remained outstanding.

27 I A S 1 9 E M P L O Y E E B E N E F I T S

The balance sheet employee benefits account rate of return of 6.25 percent p.a. effective December 31, 2008 was adjusted to 5.25 percent p.a. as of September 30, 2009 in accordance with IAS 19, which resulted in actuarial losses for both German pension obligations and US plan assets. These losses were reported under equity as an income-neutral sum of EUR 4.3 million in consideration of deferred taxes.

R E S T R U C T U R I N G

The company decided upon and announced an extensive restructuring plan for the Systems division and its foreign subsidiaries. In total, accruals of EUR 13 million were formed for the expected restructuring measures.

S Y N D I C A T E D L O A N A G R E E M E N T

KUKA Group concluded a syndicated loan agreement with a consortium of national and international banks in order to ensure adequate liquidity. The agreement is comprised of EUR 190.0 million in working capital guarantees and EUR 115.0 million in cash credit lines. An ABS program totaling up to EUR 25.0 million also exists. Unlimited access to the credit lines is tied to bank covenants. As a result of the difficult market environment, not all covenants could be adhered to since the end of the second quarter. As of the period end, a cash credit line of EUR 60.1 million and working capital guarantees about EUR 119.1 million were being used. Regarding the discussions with the consortium of banks revising the contractual conditions we refer to the risk report.

S E G M E N T R E P O R T I N G

Starting with the 2009 financial year, the IFRS 8 ruling on business segments must be applied. External segment reporting must now be aligned with internal reporting ("management approach"). Segment reports will be strictly based on financial information used by the company's decision makers to internally manage the company, decide on the allocation of resources and assess profitability.

Because of the company's internal organizational and reporting structure, the segment reporting used to date by KUKA has not changed. The key financial indicators are determined for both segments, KUKA Robotics and KUKA Systems. Operating profit (EBIT) is used as the key indicator in regard to managing segment profits. The main elements of the segment reports are contained in the reports on the operating business divisions, Robotics and Systems.

C A S H F L O W

The cash flow statement defines the flow of funds into and out of the KUKA Group in accordance with IAS 7. The amount recognized as cash and cash equivalents comprises bank balances, checks and cash on hand.

C O N T I N G E N T L I A B I L I T I E S A N D O T H E R F I N A N C I A L O B L I G A T I O N S

There has been no material change in other financial obligations and contingent liabilities since December 31, 2008.

R E L A T E D P A R T I E S

Persons or companies that may be influenced by the reporting companies or that may influence the reporting companies are to be disclosed in accordance with IAS 24, provided they have not already been included as part of the scope of consolidation in the financial statements.

Parties related to KUKA Group include mainly members of the Executive and Supervisory boards as well as nonconsolidated companies in which KUKA Aktiengesellschaft directly or indirectly holds more than 20 percent of the voting rights, or companies that directly or indirectly hold more than 20 percent of the voting rights of KUKA Aktiengesellschaft.

Grenzebach Maschinenbau GmbH, Hamlar, Bavaria and RINVEST AG, Pfäffikon, Switzerland jointly own 29.22 percent of KUKA Aktiengesellschaft. As per the voting rights notification dated June 10, 2009, the voting right shares are to be mutually allocated in accordance with article 22, clause 2 of the WpHG (German securities trading act) and therefore represent related parties within the meaning of IAS 24.

According to IAS 24 in connection with IAS 34, the following disclosures are required:

In total, the value of goods and services supplied to Grenzebach Group in the first nine months of fiscal 2009 was EUR 2.4 million. The goods and services received by the group were worth EUR 0.7 million. As of September 30, 2009, receivables totaled EUR 0.4 million. There were no liabilities. The market oriented transfer prices are in accordance with the "dealing at arm's length" principle.

There have been no material changes in dealings with related parties since December 31, 2008.

E V E N T S O F M A J O R I M P O R T A N C E A F T E R T H E E N D O F T H E R E P O R T I N G P E R I O D

There were no events of material significance after the close of the reporting period.

Augsburg, November 3, 2009

The Executive Board

Dr. Reuter Schulak

Note:

The Group interim report contains forward-looking statements based on assumptions and estimates made by the management of KUKA Aktiengesellschaft. Although management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results could deviate significantly from these assumptions and estimates due to a variety of different factors. Some of these factors could, for example, include a change in the overall economic climate, exchange rates and interest rates, as well as changed conditions in the markets themselves. KUKA Aktiengesellschaft makes no guarantees that future developments and actual future results will align with the assumptions and estimates contained in this report, nor does it accept any liability for same.

C O N T A C T

KUKA Aktiengesellschaft Public & Investor Relations PO Box 43 12 69 86072 Augsburg, Germany Phone: +49 821 797 5251 Fax: +49 821 797 5336 E-mail: [email protected] www:kuka.com