thyssenkrupp AG — Annual Report 2013

Dec 5, 2013

Developing the future.

ThyssenKruppinfigures

The Group in figures

		Group Total incl. Steel Americas and Stainless Global				Continuing Operations after reclassification of Steel Americas 1
		2011/2012	2012/2013	Change	Change in %	2011/2012	2012/2013	Change	Change in %
Orderintake	million€	48,742	39,774	8,968!	18!	43,842	38,636	5,206!	12!
Netsalestotal	million€	47,045	39,782	7,263!	15!	41,536	38,559	2,977!	7!
EBITDA	million€	1,544	1,222	322!	21!	1,723	1,163	560!	33!
EBIT	million€	4,370!	538!	3,832	88	3,743!	595!	3,148	84
EBITmargin	%	9.3!	1.4!	7.9	—	9.0!	1.5!	7.5	—
AdjustedEBIT	million€	318	531	213	67	399	599	200	50
AdjustedEBITmargin	%	0.7	1.3	0.6	—	1.0	1.6	0.6	—
EBT	million€	5,067!	1,590!	3,477	69	4,414!	1,648!	2,766	63
Netincome/loss!/Income/loss! netoftax!	million€	5,042!	1,536!	3,506	70	4,335!	1,589!	2,746	63
attributabletoThyssenKrupp AG'sshareholders1!	million€	4,241!	1,396!	2,845	67	3,541!	1,450!	2,091	59
Basicearningspershare1!	€	8.24!	2.71!	5.53	67	6.88!	2.82!	4.06	59
Operatingcashflows	million€	386!	786	1,172	++	290!	981	1,271	++
Cashflowsfromdisposals	million€	854	1,221	367	43	852	1,221	369	43
Cashflowsforinvestments	million€	2,204!	1,411!	793	36	1,800!	1,313!	487	27
Freecashflow	million€	1,736!	596	2,332	++	1,238!	889	2,127	++
EmployeesSeptember30!		167,961	156,856	11,105!	7!	156,115	156,856	741	0
Germany		64,380	58,164	6,216!	10!	58,447	58,164	283!	0
Abroad		103,581	98,692	4,889!	5!	97,668	98,692	1,024	1
Distribution	million€	—	—2!	—	—
Dividendpershare	€	—	—2!	—	—
ROCE	%	20.3!	3.7!	16.6	—
ThyssenKruppValueAdded	million€	6,197!	1,852!	4,345	70
NetfinancialdebtSeptember30!	million€	5,800	5,038	762!	13!
TotalequitySeptember30!	million€	4,526	2,511	2,015!	45!
Gearing	%	128.1	200.6	72.5	—

1!Prior-yearfigureshavebeenadjusted.

2!proposaltotheAnnualGeneralMeeting

AtSeptember30,2011,theStainlessGlobalbusinessareamettheconditionsforclassificationasadiscontinuedoperation inaccordancewithIFRS.ItscombinationwiththeFinnishcompanyOutokumpuwassuccessfullycompletedonDecember 28,2012.ThyssenKruppnowholdsa29.9%financialinterestinOutokumpuwhichisaccountedforbytheequitymethod andwhoseincomeeffectsarenotincludedinEBITduetoitsnon-operatingnature.AtJanuary01,2013thebusinessareas PlantTechnologyandMarineSystemswerecombinedintothenewbusinessareaIndustrialSolutions.TheSteelAmericas business area, having been classified as a discontinued operation in accordancewithIFRS at September 30, 2012,was reclassifiedasacontinuingoperationatSeptember30,2013;theprior-yearfigureshavebeenadjustedaccordingly.Within SteelAmericas,ThyssenKruppSteelUSAis reportedasadisposalgroup.FollowingthedepartureoftheStainlessGlobal businessareaattheendofthe1stquarter2012/2013,theGroupnowconsistsexclusivelyofcontinuingoperations;they comprisesixbusinessareasandCorporate.

Contents

I

C2 ThyssenKrupp?in?figures

II Berthold?Beitz?1913?-?2013

IV Letter?to?shareholders

To?our?? shareholders

02 ExecutiveBoard

04 SupervisoryBoard

06 ReportbytheSupervisory Board

13 Corporategovernancereport

26 ThyssenKruppstock Combined?management?report

30 Profileandstrategy

38 Groupreview

47 Expecteddevelopments

49 Businessareareview

57 Resultsofoperationsand financialposition

62 Annualfinancialstatementsof ThyssenKruppAG

67 Subsequentevents

68 Compliance

71 Macroandsectorenvironment

76 Opportunitiesandrisks

89 Non-financialperformance indicators

96 Legalinformation

Consolidated? financial?statements

101 Consolidatedstatementof financialposition

102 Consolidatedstatementof income

103 Consolidatedstatementof comprehensiveincome

104 Consolidatedstatementof changesinequity

105 Consolidatedstatementofcash flows

106 Notestotheconsolidated financialstatements

191 Independentauditors'report

193 Responsibilitystatement

Additional? information

195 Multi-yearoverview

197 Otherdirectorshipsheldby ExecutiveBoardmembers

198 Otherdirectorshipsheldby SupervisoryBoardmembers

200 Glossary

201 Index

202 Listofabbreviations

203 Indexoftablesandgraphics

204 Contactand2013/2014dates

OurfiscalyearbeginsonOctober01and endsonSeptember30ofthefollowing year.

Thisannualreportwaspublishedon November29,2013.

Prof. Dr. h.c. mult. Berthold Beitz Honorary Chairman of the Supervisory Board

With deep sorrow and sadness we bid farewell to Prof. Dr. h.c. mult. Berthold Beitz, the Honorary Chairman of our Company's Supervisory Board who died on July 30, 2013 at the age of 99.

Berthold Beitz was one of the last great figures of the 20th century. In 1953 he became the chief personal executive of Alfried Krupp von Bohlen und Halbach, the last sole proprietor of the firm of Krupp. He went on to shape the enterprise over almost six decades. In the spirit of Alfried Krupp von Bohlen und Halbach he always attached great importance to preserving the unity and independence of the company. To the end, the good of the firm was his overriding concern. He personally oversaw and supported momentous changes in the Group, and played an instrumental role in shaping the corporate culture and social relations at ThyssenKrupp. For him, social partnership was of great importance, the welfare of the employees was particularly close to his heart.

Inside and outside the Group his advice was sought to the last. We too consulted him frequently.

But in addition to his success as a leading business figure, he showed outstanding commitment to public service and society. Together with his wife Else he set an impressive example of courage and humanity during World War II by saving the lives of hundreds of persecuted Jews, risking his own life in the process. He played a key role in the post-war reconstruction of Germany. Berthold Beitz was highly regarded and esteemed in Germany and abroad. The large number of awards and honors he received are an impressive testimony to the authenticity of his actions. He was a role model for many people.

We will always remember Berthold Beitz and honor his memory.

Supervisory Board, Executive Board, employees and Group Works Council

Lettertoshareholders

Dr.-Ing. Heinrich Hiesinger Chairman of the Executive Board

ThyssenKrupp,yourCompany,isinthemiddleofitsbiggestrestructuringsincethemergerin1999.Thereportingyearwas notaneasyoneforus.Inparticular,theoperatinglossesandimpairmentchargesatSteelAmericas,theshareholdingin Outokumpuaswellascomplianceissues representsignificant risksfor usandimpactedourfinancesenormouslyinthe pastfiscalyear.We,theExecutiveBoard,knowthatthereisstillalottodo.Butwealsoknowwherewearegoingandhave a clear plan for the strategic development of the Group. We are rebuilding ThyssenKrupp into a stronger, competitive company–andwehavealreadyachievedmeasurablesuccess:

• We have made good progress on our pathto becoming a diversified industrial group. Our capital goods and service businessesnowaccountformorethan70percentofoursales,oursteelmakingbusinesseslessthan30percent.
• Ourefficiencyprogram"impact2015"deliveredsavingsof€600millioninthepastfiscalyear,exceedingourambitious targetby20percent.
• Butthe most important proofthat our StrategicWay Forward isworking can be seen in ourfree cashflow,which at around€600millioninfiscal2012/2013waspositiveagainforthefirsttimeinsixyears.Thatrepresentsaroughly€2.3 billionimprovementontheprioryear.
• Thankstothis,we reducedournetfinancialdebtfrom€5.8billionto€5.0billionatSeptember30,2013,around€1.5 billionlowerthanatitshighestlevelinMarch2012.
• Notwithstandingalloursavingsefforts,wealsohaveoureyeonthefuture:Inthepastfiscalyearalonewemadecapital investments of €1.4 billion, and spending on research and development increased once again by a substantial 10 percent.

Many people outside the Company failed to appreciate this progress in the past year, because the headlines were dominatedbytheaforementioned riskissues.ForemostamongthemwasSteelAmericas:Themajorfinancialmishapsin thisbusiness areacontinuetoweighheavily ontheGroup.Theyarealsothemain reasonwhywe reporteda netloss of around1.5billioneuros.

WearenowpleasedtohavefoundasustainablesolutionforSteelAmericas:TherollingandcoatingplantintheUSAwillbe soldtoaconsortiumofArcelorMittalandNipponSteel&SumitomoMetalCorporation,andwehavealsoconcludedavaluepreservingslabsupplycontractforThyssenKruppCSAinBrazil.WesignedapurchasecontracttothiseffectonNovember 29. Thetransaction issubjecttothe approval ofthecompetent regulatory authorities intheUSA anda number of other countries.Wearenowconcentratingonthethingswecaninfluenceourselves,i.e.operatingimprovementstoourplantin Brazil.WemanagedtoroughlyhalveSteelAmericas'operatinglossesinthepastfiscalyear.Thishasalreadysubstantially improvedourfigures,andweareconfidentthatwecancontinuethistrendinthecomingyears.

AsecondriskareaisthecurrentsituationatOutokumpu.Thisispartlyduetotheunfavorablemarketandpricesituationin theEuropeanstainlesssteelbusiness.Inaddition,theconditionssetbytheEUCommissionofdivestingtheASTstainless steelplantinItalyandanumberofEuropeanservicecentersandsalessubsidiariesarealmostimpossibletofulfillinthe currentclimatewithoutlosingvalue.

Against this background, Outokumpu is restructuring its financial liabilities. In this connection we are transferring our financialreceivablecreatedaspartoftheInoxumtransactiontoOutokumpu.Inexchange,OutokumpuwilltransferVDMand the companies covered by the EU Commission's divestment condition to us. ThyssenKrupp AG signed a corresponding agreement onNovember29,2013.Withthisexchange,weare buildinga bridge:OutokumpuwillbeabletofulfilltheEU Commission'sconditionsinawaythatpreservesvalue.Atthesametimewearetakingourresponsibilitytotheemployees seriously by creating the conditions for a sustainable refinancing of Outokumpu and thus improving the company's prospects.Inconnectionwiththetransaction,wewillalsofullydivestour29.9%shareholdinginOutokumpuandterminate allotherfinanciallinks.

Thetransactionissubjecttotheapprovalofthecompetent regulatoryauthoritiesandtothecooperationandapprovalof shareholders,banksandcreditorsfortheoverallplanforasustainablerefinancingofOutokumpu.Wewillinitiallydevelop thecompaniesVDMandASTfurtherandtakethetimeweneedtofindagoodsolution.

Wehavealsomadesignificantprogressintheareaofcomplianceand,followingfinesanddamagesclaims,arenowonthe righttrack.Thisisalsoconfirmedbythereportonthevoluntaryspecialaudit,whichfoundtheCompliancefunctiontobe professionally organizedandappropriatelystaffed.We pursuecomplianceviolationsvigorously.Ourmottointhisis'zero tolerance'.

Thesethreeareas–SteelAmericas,Outokumpuandcompliance–haveweighedheavilyonourcapitalstructureandour finances.Inallthreeareaswehaveidentifiedrisks,evaluatedthemandreducedthemstepbystep.Despitedealingwithall theseproblemsfromthepast,wehavealsobeenworkingtosecureourfuture.Herewemadesubstantialprogressinthe reportingyear:

MajorprogressonourStrategicWayForward

WehavebeensystematicallyimplementingourStrategicWayForwardsinceMay2011.Continuousportfoliooptimization, changestoourcorporateculture,leadershipandstructures,andastrongerperformanceorientationarethepillarsofour holisticprogram.

Efficiencyprogramtodeliver€2.3billionearningseffectby2015

TomaketheGroupmoreefficientstructurally,wehavelaunchedvariousperformanceinitiativeswhicharealreadyhavingan impactonouroperatingearnings.Theaimofthe"impact2015"efficiencyprogramwastoachieveapositiveEBITeffect fromsustainablecost-cuttingmeasuresof€2billionbytheendofthe2014/2015fiscalyear.Ourtargetfor2012/2013was €500million.Wemanagedtoexceedthisambitioustargetby€100million,or20percent.Followingthere-inclusionofthe Braziliansteelmill,wehavenowraisedouroveralltargetto€2.3billion.

NewGroupstructurepromotesculturechangeandperformanceorientation

Part ofthe efficiency program involves optimizing our leadership and business structures andthe associatedtasks and processes.Wehavegivenourselvesamodernandsustainablestructurethatsupportsourculturechangeandperformance orientation. Our aim is to align our understanding of leadership and our corporate culture more strongly towards cooperation and integration. Thefirst stepwasto streamlinethe duties and structure ofthe Executive Board. The entire Group leadership andtheassociated processes betweencorporatefunctions, businessareasandthenew,moreefficient regional organization are being optimized. Atthe sametimewe have almost halvedthe number of business area board members from 32 to 18 and reduced the number of corporate functions from 26 to 17. More than 70 percent of the management positions below board level have been newly filled. Corporate headquarters and the business area managementsstartedworkinginthenewstructureinOctober2013.Therestoftheorganizationwillbeadaptedtothenew modelstepbystep.

Operatingtargetsachieved

Theefficiency,earningsandcashflowtargetswesetatthestartofthe2012/2013fiscalyearforthecontinuingoperations excludingSteelAmericasweremetinfullandinsomecasesexceeded.Thatisclearevidence oftheeffect ourstrategic developmentmeasuresarehaving.AtthesametimewesignificantlyreducedthelossesatSteelAmericas.

Intheprior-yearstructure,adjustedEBITataround€1.1billionandfreecashflowbeforedisposalsataround€260million werehigherthanourguidanceforthefiscalyear.Afterthere-inclusionofSteelAmericas,adjustedEBITwas€599million. FreecashflowforthefullGroupimprovedyear-on-yearbyaround€2.3billiontoroughly€600million–aturningpointafter sixyearsofnegativecashflow.

However,therewereonceagainsignificantimpactsontheGroup'sbalancesheetinthepastfiscalyear.Thenetlosscame to€1.5billion.ThemainreasonsweretheoperatinglossesandimpairmentchargesatSteelAmericas,expensesfromour shareholding in Outokumpu, a fine and provisions for compliance violations, and restructuring measures as part of our StrategicWayForward.Asa result, ourequity ratio decreasedsharplyinthe pastfiscalyearandthe ratio ofnetdebtto equityincreasedtemporarily.However,theGroup'sliquidityissecured.Atotalof€7.3billionprovidesasolidfinancialbasis fromwhichtosuccessfullycontinuethetransformationofourCompanyintoavalue-creatingdiversifiedindustrialgroup.

Outlookfor2013/2014:AdjustedEBITtoincreasesignificantlyto€1billion

Ourclearobjectiveistobecomeaprofitableandstableindustrialgroup:Wewanttobebestinclassintermsofgrowth, earning powerandcapitalefficiency inanintegrated groupwhosecombinedforcesmakeusstrong.Westill havealong waytogo,butIamconvincedthatwewillmakegoodprogressinfiscal2013/2014,furtherimproveouroperatingearning powerandfreecashflow,andreduceournetfinancialdebt.

The outlookforthe 2013/2014fiscalyeartargetsfurther clearearnings improvements in a generallysubduedeconomic environment.Based onthestrength of our capital goods businesses and performance improvementsfrom our efficiency program, our expectations from the current perspective after the re-inclusion of Steel Americas and excluding earnings effectsfromVDMandASTareasfollows:

• Groupsaleswillgrowslightlyyear-on-yearinthemid-single-digitpercentagerange,
• adjustedEBITwillincreasesignificantlyfrom599millioneurostoaround1billioneuros,
• lossesatSteelAmericaswilldeclinefurther,andallotherbusinessareaswillgeneratepositiveearningscontributions
• costreductionsof850millioneurosfromour"impact2015"efficiencyprogram,
• aclearimprovementtowardsbreak-evenearnings,
• afurtherreductioninnetfinancialdebt,drivenbytheexpectedcashinflowsfromthesaleoftheUSplant,othersmaller portfoliomeasuresandoperatingactivities.

Dividendpaymentnotfinanciallyjustifiable

TheExecutiveBoardalwaysstrivestopayshareholdersanappropriatedividendbasedontheGroup'sresultsfortheyear. Alongsidetheformalabilitytodistributeadividend,aconditionforthisisthatadividendpaymentisfinanciallyjustifiable fortheGroup.

Despite measurable operating improvements, we were not able to meet this condition in the past fiscal year. The aforementionedimpairmentcharges,provisionsand restructuringmeasuresonceagain resultedinahighnetlossforthe year. For this reason the Executive Board and Supervisory Board will once again be proposing to the Annual General Meetingthatnodividendbepaidoutthisyear.

We, the Executive Board, attach great priority to achieving the earning power that will make it possible to distribute a dependabledividendtoourshareholders.Allouremployeesareworkinghardtoensurewecanreturntopayingattractive dividendsasquicklyaspossible.

Iknowthatweareaskingalotofyou,ourshareholders.OurCompany'stransformationprocesswilltakesometime.The importantthingisthatwehaveacleargoalandaremovingforwardfirmlyandresolutelyonourpath.

Changes require courage, persistence andtrust. You can havetrustthatwe,the Executive Board, arefully aware of our responsibilityfortheCompany,itsshareholdersanditsemployees–evenifradicalchangesareunavoidableandtherewill alwaysbeindividualsetbacks.

The progress we made in the past year confirms that with our Strategic Way Forward we are on the right track to a successfulfuture.Wehavemorethan150,000employeesaroundtheworldworkingwithgreatcommitmentandexpertise toachievethis.intheenditwillpayoffforourCompany,forouremployeesandforyou,ourshareholders.

Wethankyouforyourtrustandhopeyouwillcontinuetogiveusyoursupport.

Yours,

Dr.-Ing.HeinrichHiesinger ChairmanoftheExecutiveBoard

Essen,November2013

Toourshareholders

02		13
ExecutiveBoard		Corporategovernancereport
		Corporategovernanceoverview	13
04		Corporategovernancedeclaration	18
SupervisoryBoard		Compensationreport	18
SupervisoryBoard	04
SupervisoryBoardCommittees	05	26
06		ThyssenKruppstock

ReportbytheSupervisoryBoard

01

Executive Board

GuidoKerkhoff OliverBurkhard

Dr.-Ing.HeinrichHiesinger Chairman

Dr.-Ing.HeinrichHiesinger

Chairman, born 1960, member of the Executive Board sinceOctober 01, 2010, Chairman sinceJanuary 21, 2011, appointed untilSeptember 30, 2015, responsible for the Corporate Functions Communications, Compliance, Internal Auditing, Legal, Strategy, Markets&Development and Technology, Innovation&Sustainability. Responsible for the regions Asia-Pacific, China, India and Middle East/North Africa 7MENA8.TheCEOsofthe businessareas report directlytotheCEOof ThyssenKrupp AG.

OliverBurkhard

born1972,memberoftheExecutiveBoardsinceFebruary01,2013,CHROsinceApril 01,2013, appointeduntilJanuary31,2016, responsiblefortheCorporateFunctions Human Resources Strategy, People Development&Executive Management, plus Regional Services Germany and Corporate Services. Responsible for the regions Germany,WesternEuropeandSub-SaharanAfrica.TheCHROsofthebusinessareas reportdirectlytotheCHROofThyssenKruppAG

GuidoKerkhoff

born1967,memberoftheExecutiveBoardsinceApril01,2011,appointeduntilMarch 31, 2016, responsible for the Corporate Functions Controlling, Accounting&Risk, Corporate Finance, Investor Relations, Information Technology Management, Mergers& Acquisitions, Procurement&Supply Management and Taxes&Customs plus Global Shared Services. Responsibleforthe regions Brazil, North America/USA, SouthAmericaandCentralandEasternEurope.TheCFOsofthebusinessareasreport directlytotheCFOofThyssenKruppAG

In fiscal 2012/2013, the following persons stood down from the Executive Board: Dr.OlafBerlien,Dr.JürgenClaassenandEdwinEichlerattheclose ofDecember31, 2012andRalphLabonteatthecloseofMarch31,2013.

SupervisoryBoard

Prof.Dr.h.c.mult.BertholdBeitz,Essen

diedonJuly30,2013 HonoraryChairman,ChairmanoftheBoardofTrusteesofthe AlfriedKruppvonBohlenundHalbachFoundation

Prof.Dr.GünterVogelsang,Düsseldorf untilSeptember30,2013 HonoraryChairman

Dr.GerhardCromme,Essen

untilMarch31,2013 Chairman formerChairmanoftheExecutiveBoardofThyssenKruppAG

Prof.Dr.UlrichLehner,Düsseldorf

ChairmansinceApril01,2013 MemberoftheShareholders'Committeeof HenkelAG&Co.KGaA

BertinEichler,Frankfurt/Main

ViceChairman MemberoftheExecutiveCommitteeoftheIGMetalltradeunion

MartinDreher,Heilbronn

Retailclerk,ChairmanoftheWorksCouncilof ThyssenKruppSystemEngineeringGmbH-Heilbronnand ChairmanoftheWorksCouncilUnionThyssenKrupp IndustrialSolutions

MarkusGrolms,Frankfurt/Main

IGMetalltradeunionsecretary

SusanneHerberger,Dresden

Engineer-FH–informationtechnology,Chairwomanofthe GeneralWorksCouncilofThyssenKruppAufzügeGmbH, ChairwomanoftheWorksCouncilUnionThyssenKruppElevator TechnologyandDeputyChairwomanoftheGroupWorksCouncil

BerndKalwa,Krefeld

untilDecember28,2012 Latheoperator,ChairmanoftheGeneralWorksCouncilof ThyssenKruppNirostaGmbHandChairmanoftheWorksCouncil UnionThyssenKruppInoxum

Prof.Dr.Hans-PeterKeitel,Essen VicePresidentoftheFederationofGermanyIndustries -BundesverbandderDeutschenIndustriee.V.

Ernst-AugustKiel,Blumenthal

Fitter,ChairmanoftheWorksCouncilofThyssenKruppMarine Systems-Kiel,ChairmanoftheGeneralWorksCouncilof ThyssenKruppMarineSystemsandDeputyChairmanofthe WorksCouncilUnionThyssenKruppIndustrialSolutions

SabineMaaßen,Dinslaken

LegalcounseltoIGMetall

Dr.RalfNentwig,Essen

sinceJanuary01,2013 MemberoftheExecutiveCommitteeoftheAlfriedKruppvon BohlenundHalbachFoundation

RenéObermann,Bonn

sinceNovember01,2013 ChiefExecutiveofDeutscheTelekomAG

Prof.Dr.BernhardPellens,Bochum ProfessorofBusinessStudiesandInternationalAccounting, RuhrUniversityBochum

PeterRemmler,Wolfsburg

Wholesaleandexporttrader,ChairmanoftheWorksCouncilof ThyssenKruppSchulteGmbH-BraunschweigandChairmanof theWorksCouncilUnionThyssenKruppMaterialsServices

Dr.Kerstenv.Schenck,BadHomburg untilApril19,2013 Attorneyandnotarypublic

CarolaGräfinv.Schmettow,Düsseldorf MemberoftheManagementBoardofHSBCTrinkaus& BurkhardtAG

WilhelmSegerath,Duisburg Automotivebodymaker,ChairmanoftheGroupWorks CouncilofThyssenKruppAG

CarstenSpohr,Munich

sinceApril19,2013 MemberoftheManagementBoardofDeutscheLufthansaAG andCEOLufthansaGermanAirlines

PeerSteinbrück,Bonn

untilDecember31,2012 MemberoftheGermanParliament,FederalMinisterretd.

Dr.LotharSteinebach,Leverkusen sinceApril19,2013 FormermemberoftheManagementBoardofHenkel AG&Co.KGaA

ChristianStreiff,Paris VicePresidentofSAFRANS.A.

JürgenR.Thumann,Düsseldorf ChairmanoftheAdvisoryBoardoftheHeitkamp&Thumann Group

FritzWeber,Schöndorf sinceJanuary15,2013 Machinesetter,ChairmanoftheGeneralWorksCouncilof ThyssenKruppBilsteinGmbHandChairmanoftheWorksCouncil UnionThyssenKruppComponentsTechnology

Prof.Dr.BeatriceWederdiMauro,Frankfurt/Main untilOctober31,2013 ProfessorofEconomics,EconomicPolicy&International Macroeconomics,JohannesGutenbergUniversityofMainz

KlausWiercimok,Düsseldorf Attorney,HeadofLegalMaterialsServices

SupervisoryBoardCommittees

ExecutiveCommittee Prof.Dr.UlrichLehner-Chair BertinEichler WilhelmSegerath JürgenR.Thumann

MediationCommitteeunderArt.27par.3 CodeterminationAct Prof.Dr.UlrichLehner-Chair BertinEichler WilhelmSegerath JürgenR.Thumann

PersonnelCommittee

Prof.Dr.UlrichLehner-Chair BertinEichler WilhelmSegerath JürgenR.Thumann

AuditCommittee

Prof.Dr.BernhardPellens-Chair Prof.Dr.UlrichLehner BertinEichler SusanneHerberger Dr.RalfNentwig WilhelmSegerath

Strategy,FinanceandInvestmentCommittee

Prof.Dr.UlrichLehner-Chair BertinEichler MarkusGrolms SusanneHerberger Prof.Dr.Hans-PeterKeitel PeterRemmler CarstenSpohr Dr.LotharSteinebach

NominationCommittee

Prof.Dr.UlrichLehner-Chair Prof.Dr.Hans-PeterKeitel Prof.Dr.BernhardPellens JürgenR.Thumann

Asat:November29,2013

ReportbytheSupervisoryBoard

Prof.Dr.UlrichLehner ChairmanoftheSupervisoryBoard

Cooperation between Supervisory Board and Executive Board

Infiscal year 2012/2013the Supervisory Board again regularly advisedthe Executive Board onthemanagement ofthe Companyandcontinuouslysuperviseditsconductofbusiness.Wesatisfiedourselvesthatbusinesscompliedwithalllegal and regulatory requirements at all times. The Executive Board fulfilled its duty to inform and furnished us with regular writtenandverbalreportscontainingup-to-dateandcomprehensiveinformationonallincidentsandmeasuresofrelevance to the Company. This also included information on budget variances. In the committees and in full Supervisory Board meetings, the members of the Supervisory Board always had ample opportunity to critically examine the reports and resolutionproposalssubmittedbytheExecutiveBoardandcontributesuggestions.Inparticular,wediscussedintensively andexaminedtheplausibilityofalltransactionsofimportancetotheCompanyonthebasisofwrittenandverbalreportsby theExecutiveBoard.OnnumerousoccasionstheSupervisoryBoarddealtatlengthwiththerisksituationoftheCompany, theliquidityplanningandtheequitysituation.ThankstoananalysisofthevaluepotentialoftheGroup'sbusinessesand theopportunitiesandrisksofstrategicsteps,criticaloperatingissueswerepresentedtotheSupervisoryBoardinaclear anddifferentiatedway.WhererequiredbylawandtheArticlesofAssociation,theSupervisoryBoardprovideditsapproval ofindividualbusinesstransactions.

Intheperiodsbetweenmeetings,theSupervisoryBoardChairmanandtheChairmanoftheAuditCommitteeengagedina close and regularexchange ofviews and informationwiththe ExecutiveBoard andwere informed aboutmajor developments.TheSupervisoryBoardChairmanandAuditCommitteeChairmanreportedonimportantfindingsimmediatelyinthe followingSupervisoryBoardorCommitteemeeting.

BeforetheSupervisoryBoardmeetingstheshareholderandtheemployeerepresentativeseachheldseparatemeetingsto discussthe items onthe agendas. Therewere no indications of conflicts of interest of Executive Board and Supervisory Board members, which must be disclosed to the Supervisory Board immediately and reported to the Annual General Meeting.

Supervisory Board meetings

SevenSupervisoryBoardmeetings–four regular andthreeextraordinary–were held inthe reportingyear. Theaverage attendanceratewas95.7%.OneSupervisoryBoardmembertookpartinfewerthanhalfthemeetings.

OnNovember 20, 2012 anextraordinarymeeting oftheSupervisoryBoardwas convenedto reviewtheefficiency ofthe SupervisoryBoard'sworkandtheboard'sdecision-makinginconnectionwiththesteelmillprojectsinBrazilandtheUSA.A detailedreportontheresultsandmeasuresintroducedwasprovidedinthelastAnnualReport.

ThefirstregularmeetinginthereportingyearonNovember21,2012focusedonthecurrentsituationandstrategicoutlook for ThyssenKrupp's capital goods businesses. In this connection the combination of the Plant Technology and Marine SystemsbusinessareasintothenewIndustrialSolutionsbusinessareawasresolved.Further,thecorporateandinvestment planningforthe2012/2013fiscalyearwasadopted.Inconnectionwiththecompliance reportwedealtindepthwiththe subjectofExecutiveBoardandpresstrips,andinresponsetorepeatedcomplianceinfringementsintheGroupwepasseda resolutionemphasizingthatthemanagementhasacorporateresponsibilityforcomplianceextendingbeyondtheindividual andorganizationaldutiesofanExecutiveBoardmember.Theaimofthiswastoexpressunequivocallythatpersonnelaction can betaken inthe event of serious or repeated compliance infringements inthe area of responsibility of an Executive Board member. Also in this meeting the members of the Supervisory Board agreed to Ralph Labonte's request for the cancellationofhisappointmentasmemberoftheExecutiveBoardofThyssenKruppAGprematurelyatMarch31,2013for health reasons. At the same time we followed the recommendation of the Personnel Committee and appointed Oliver BurkhardasmemberoftheExecutiveBoardforaninitialthree-yearperiodfromFebruary01,2013andasLaborDirectorof ThyssenKruppAGfromApril01,2013.FinallytheSupervisoryBoardmembersdiscussedindetailtheresultsoftheannual efficiency review relating to the organizational procedures for Supervisory Board meetings and adopted measures to increaseefficiency,e.g.regardingthedegreeofdetailandscopeofthedocumentstobemadeavailable.

InafurtherextraordinarymeetingonDecember10,2012theSupervisoryBoardmembersfollowedtherecommendationof thePersonnelCommitteeand prematurelyterminatedtheappointments oftheExecutiveBoardmembersDr.OlafBerlien, Dr.JürgenClaassenandEdwinEichler.WiththisstepwetookaccountoftheExecutiveBoard'soverallresponsibilityforthe managementofbusinessandtheleadershipcultureoftheCompany.Afurtheritemontheagendadealtwiththeparentcompany and consolidated financial statements for the year ended September30, 2012 and in particular the further impairment charges in the Steel Americas business area. At the recommendation of the Audit Committee and after discussionwiththe auditors,we approvedthe consolidated and parent-companyfinancialstatementsforthe 2011/2012 fiscal year. Further we discussed and adopted the agenda for the Annual General Meeting on January18,2013 and resolvedmeasurestoguaranteetheconfidentialityofSupervisoryBoarddocuments.

ImmediatelybeforetheAnnualGeneralMeetingonJanuary18,2013theSupervisoryBoardmembersconvenedforafull meeting, inwhichthe Executive Boardfirst reported in detail onthe situation ofthe Group. Themeetingfocused onthe findingsoftheexpertreportbythelawfirmHengelerMuellerexaminingthepossibilityofliability-relevantbreachesofduty byformerandcurrentExecutiveBoardmembersinconnectionwiththesteelmillprojectsinBrazilandtheUSA,anupdated version ofwhichthe Supervisory Board had requested in itsmeeting onNovember20, 2012. This reviewfoundthatthe SupervisoryBoardhadnolegalobligationtoassertclaimsfordamagesagainstcurrentorformermembersoftheExecutive Board. In particular the authors of the report emphasized that there was not the slightest evidence that the damages incurredbyThyssenKruppweretheresultofdishonestybytheExecutiveBoardmembersorinfringementsofthelaworthe ArticlesofAssociation.ThecontentofthereportwasalsodiscussedattheensuingAnnualGeneralMeeting.

FollowingthedecisionbyDr.GerhardCrommetostepdownfromtheSupervisoryBoardofThyssenKruppAGatthecloseof March31,2013,anextraordinarySupervisoryBoardmeetingwasheldonMarch19,2013.Ashissuccessor,Prof.Dr.Ulrich LehnerwasunanimouslyappointedChairmanoftheSupervisoryBoardeffectiveApril01,2013.

IntheSupervisoryBoardmeetingonMay15,2013theExecutiveBoardfirstreportedonthecurrentstateoftheGroupand thestatusofthenegotiationsonthesaleofthesteelplantsinBrazilandtheUSA.Wefocusedourattentioninparticularon the corporate program ACTA"Achieve Change@ThyssenKrupp"D, with the help of which new structures and workflow processes are being defined and implemented in theCompany. Its aim isto changethe Group's leadership culture and increasetheeffectiveness,efficiencyandperformanceofThyssenKrupp.InthisconnectiontheExecutiveBoardinformedus aboutmeasurestoreducestaffinadministrativeareas,whichwediscussedatlength.Finallywedealtonceagainwiththe confidentialityofSupervisoryBoarddocuments,waysofincreasingtheefficiencyofourmonitoringandadvisingwork,and theExecutiveBoardandpresstrips.

OurmeetingonSeptember03,2013focusedagainontheoperatingsituationoftheGroupandcurrentdevelopmentsinthe negotiationsonthesaleoftheSteelAmericasbusinessarea.Afurthertopicconcernedpossiblemeasurestostrengthen equity. In connection with the Elevator Technology business area's strategic development program, we approved the acquisition of EggertAufzügeGmbH and EggertLift-TechnikGmbH,whichwillenablethecompanytofurtherexpand its position inGermany. As in previous years, anothertopic ofthis year's Septembermeetingwerecurrent developments in corporate governance, in particularthe amendmentstotheGermanCorporateGovernanceCode adopted bytheGovernmentCommissiononMay13,2013.OnthisbasisweandtheExecutiveBoardissuedanupdatedDeclarationofConformity atOctober01,2013.

OntherecommendationoftheStrategy,FinanceandInvestmentCommitteeandafterdetaileddiscussion,weapprovedthe saleoftheThyssenKruppSteelUSArollingandcoatingplantinAlabamatoaconsortiumofArcelorMittalandNipponSteel &SumitomoMetalCorporationinanextraordinarymeetingonNovember29,2013.Alsointhismeetingweapprovedthe conclusionofanagreementwithOutokumpuOyjtotransfer100%ofthesharesofVDMandASTaswellasothersmaller activities in the stainless steel service center sector to ThyssenKrupp in return for the financial receivable created in connectionwiththeInoxumtransaction.

Report on the work of the committees

The primarytask ofthe Supervisory Board's six committees isto prepare decisions andtopicsfor discussion atthefull meetings.Decision-makingpowerscanbedelegatedtothecommitteeswherethisislegallypermissible.Thechairmenof the committees provided the Supervisory Board with regular detailed reports on the work of the committees. With the exceptionoftheAuditCommittee,allcommitteeswerechairedbytheSupervisoryBoardChairman.Thecompositionsofthe committeesareshownonpage5oftheAnnualReport.

TheExecutive
CommitteeAPraesidiumDmeteighttimesinthereportingyear.InadditiontopreparingthefullSupervisory Boardmeetings,themainsubjectsofdeliberationwerethefinancialpositionandearningsperformanceoftheGroup,the strategic development of the individual business areas, the progress of the disposal process for the Steel Americas businessarea,andtheGroupwideprojectstooptimizeeffectiveness,efficiencyandperformance.Inadditionweprepared the Supervisory Board efficiency review, discussed compliance issues in detail, and deliberated on safeguarding the confidentialityofSupervisoryBoarddocuments.Aschairmanofthecommittee,Iwasalsoinclosecontactwiththeother membersoftheExecutiveCommitteeoutsidemeetingstoagreeonspecialprojects.

The Personnel
Committee held nine meetings in the 2012/2013 fiscal year to prepare the personnel decisions of the SupervisoryBoard.Whererequired,resolutionswerepassedorrecommendationsforresolutionsmadetotheSupervisory Board.InadditiontodiscussingthenewcompositionoftheExecutiveBoardofThyssenKruppAG,themeetingsfocusedin particularonthecompensationsystemandproposalsforestablishingtheperformancebonusandadditionalbonusforthe members ofthe Executive Board. Details of Executive Board compensation are presented inthe compensation report on pages18–22.ThePersonnelCommitteealsogaveitsapprovalfortheacceptanceofdirectorshipsatexternalcompanies, establishmentsandinstitutionsbymembersoftheExecutiveBoard.

OnceagaininthereportingyearitwasnotnecessarytoconvenetheMediation
Committeeformedinaccordancewith§27 par.3GermanCodeterminationActAMitbestGD.

TheAudit
Committeemetsixtimesinthe2012/2013fiscalyear.AlongsideExecutiveBoardmembers,themeetingswere alsoattended by representatives oftheauditorsKPMGAGWirtschaftsprüfungsgesellschaft,Berlin, andrepresentatives of the newfinancialstatement auditors, PricewaterhouseCoopersAktiengesellschaftWirtschaftsprüfungsgesellschaft, Essen, followingthetenderprocessfortheauditcontract,electionbythe2013AnnualGeneralMeetingandsubsequentengagementbytheAuditCommittee.TheauditorsdeclaredtotheAuditCommitteethatnocircumstancesexistwhichcouldleadto theassumptionofprejudiceontheirpart.TheAuditCommitteeobtainedtherequiredauditors'statementofindependence, reviewedtheirqualification,concludedthefeeagreement,andselectedtheauditfocus.

In the reporting year the committee's work focused on examining the 2012/2013 parent-company and consolidated financial statements and interim reports, and preparing the Supervisory Board resolution on these items. The Audit Committeemonitoredtheaccountingprocess,theeffectivenessoftheinternalcontrolsystem,theriskmanagementsystem andtheinternalauditingsystem.ItalsodealtwiththelegaldisputesandcomplianceintheGroup.Wealsoreceivedregular reportsfromtheExecutiveBoardonthedaprohproject.Aimedatharmonizingdataandprocesses,theprojectisdesigned tohelpharnesspreviouslyunusedsynergiesacrosstheGroupandsignificantlyincreasetheGroup'sefficiencybycreatinga commonIT landscape and consolidating processes.We also discussedthe additionalservices provided bythefinancialstatement auditors alongside the audit of the financial statements, and dealt with the internal audit results, the audit processes and audit planning. The Audit Committee adopted a new audit policy, which among other things defines the permissiblenon-auditservices,theapplicationprocessesandtheapprovalframeworkfortheengagementofthefinancialstatementauditors.

InanadditionalmeetinginSeptember2013thecommitteememberswereinformedindetailaboutinsurancemanagement atThyssenKrupp.Thefocuswasonmeasurestohelpnotonlyidentifyandassessriskstypicalforourbusinessmodels,but abovealltomanagetheseriskssoastosystematicallyreducethepotentialforriskandlimitthepremiumsforrisktransfer requirements throughout the Group. Other subjects discussed were the enhancement of the risk management system, contract management in the Industrial Solutions business area, and the interplay between the compliance system and internalauditing.

TheStrategy,
Finance
and
Investment
Committee heldtwomeetingsinthe2012/2013fiscalyear.Discussionsfocusedon thestrategicdevelopmentofThyssenKrupp'sbusinessmodel.Thiswasmainlyagainstthebackgroundofdevelopmentsin thedisposalprocessforthesteelplantsinBrazilandtheUSAandtheresultingimpactontheGroup'sfinancialsituation. Further,thecommitteemembers discussedtheGroup'scorporate and investment planningforthe reporting year,taking intoaccounttheGroup'scurrentratingsandfinancialsituation,andpreparedcorrespondingSupervisoryBoardresolutions. InanextraordinarymeetingonNovember29,2013theStrategy,FinanceandInvestmentCommitteediscussedthesaleof the ThyssenKrupp Steel USA rolling and coating plant in Alabama to a consortium of ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation, and recommended the Supervisory Board to approve the sale. Also in this meeting we discussedtheconclusionofanagreementwithOutokumpuOyjtotransfer100%ofthesharesofVDMandASTaswellas other smaller activities inthe stainless steel service center sectorto ThyssenKrupp in returnforthefinancial receivable createdinconnectionwiththeInoxumtransaction.WerecommendedtheSupervisoryBoardtoapprovethetransfer.

ThemembersoftheNomination
Committee convenedforthreemeetingsinthepastfiscalyear.Discussionsfocusedon theselectionofsuccessorsforDr.GerhardCromme,Dr.Kerstenv.Schenck,andProf.Dr.BeatriceWederdiMauroonthe Supervisory Board. The Alfried Krupp von Bohlen und Halbach Foundation accepted the proposal of the Nomination Committee and the shareholder representatives on the Supervisory Board and delegated Carsten Spohr and Dr.Lothar SteinebachtotheSupervisoryBoardofThyssenKruppAG.RenéObermannwasproposedassuccessortoProf.Dr.Beatrice WederdiMauro.ThecandidateswereselectedbytheNominationCommitteeonthebasisoftheirskillsandexperience,the recommendations ofthe German Corporate Governance Code, andthetargets set bythe Supervisory Boardfor its own composition.

Discussion of the voluntary special audit

TheSupervisoryBoardprovidedpositivesupportforthevoluntaryspecialauditinitiatedbytheExecutiveBoard,andmade a detailed examination of the special audit report and discussed it with the Executive Board in the Supervisory Board meetingonNovember20,2013.

ThyssenKruppenteredunchartedcorporategovernanceterritorywiththevoluntaryspecialaudit,whichwasagreedinJuly 2013byThyssenKruppwithDeutscheSchutzvereinigungfürWertpapierbesitze.V.andtheshareholderChristianStrenger, aftertheirmotionsfor aspecial auditwere rejected bythe AnnualGeneralMeeting inJanuary 2013.Withthe voluntary specialauditThyssenKrupp'saimistocreatesustainablevaluefortheGroupandtheshareholders.Notjustonebuttwo special auditors were therefore appointed to conduct a forward-looking focus audit to assess the appropriateness of structuresandprocesseswhichhavebeenorwillbechangedonaccountofexperiencewithpastsignificantincidentsinthe area of antitrust law and corruption, such asthe appropriateness ofthe basic structure ofthe improved internal control systemforpreventingcomplianceinfringementsinthefutureandtheappropriatenessoftheinvestmentcontrolprocessfor futurelargeinvestmentprojects.

TheSupervisoryBoardaskedtheExecutiveBoardtolookintothe recommendationsofthespecial auditorsand–where necessaryorexpedient–implementthemintheongoingcorporateprojectACT.Individualrecommendationsonoptimizing the reporting requirementsfortheExecutiveBoardweretakenupbytheSupervisoryBoarditselfandincorporatedinthe plannedupdatingoftherulesofprocedurefortheSupervisoryBoardanditsCommittees.

Corporate governance and Declaration of Conformity

In the year under review the Supervisory Board members continued to deal intensively with the German Corporate GovernanceCode.InthemeetingonSeptember03,2013theSupervisoryBoarddiscussedthisyear'samendments.The Executive Board and Supervisory Board issued an updated Declaration of Conformity in accordance with §161 of the German StockCorporationAct AAktGD atOctober01,2013,which is permanently available ontheCompany'swebsite.In additiontheExecutiveBoard–alsoonbehalfoftheSupervisoryBoard–reportsoncorporategovernanceatThyssenKrupp inthecorporategovernancereportonpages13–25.

Audit of the parent-company and consolidated financial statements

ElectedbytheAnnualGeneralMeetingonJanuary18,2013toauditthefinancialstatementsforthe2012/2013fiscalyear, PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft audited the parent-company financial statementsforthefiscalyearOctober01,2012toSeptember30,2013preparedbytheExecutiveBoardinaccordancewith HGB AGerman GAAPD rules, andthe management report on ThyssenKruppAG, which is combined withthe management report ontheGroup. The auditors issued an unqualified audit opinion.In accordancewith §315aHGB,theconsolidated financial statements of ThyssenKrupp AG for the fiscal year from October01,2012 to September30,2013, and the managementreportontheGroup,whichiscombinedwiththemanagementreportonthecompany,werepreparedonthe basisofInternationalFinancialReportingStandardsAIFRSDasapplicableintheEuropeanUnion.Theconsolidatedfinancial statementsandthecombinedmanagementreportwerealsogivenanunqualifiedauditopinion.Theauditorsalsoconfirmed thattheExecutiveBoardhasinstalledanappropriate reportingandmonitoringsystemwhichissuitableinitsdesignand handlingtoidentifyatanearlystagedevelopmentswhichcouldplacethecontinuedexistenceoftheCompanyatrisk.

The Audit Committee andthe auditors had selectedthefollowingfocusthemeforthe reporting year: "Management and control of currency and raw material price change risks". The financial-statement documents and audit reports were discussed in detail in the meetings of the Audit Committee on November 15, 2013 and November 29, 2013 and the Supervisory Board on November 20, 2013 and November 29, 2013. In these meetings the Audit Committee and the SupervisoryBoardalsodiscussedtheeffectsonthefinancial reportingofthesaleoftheThyssenKruppSteelUSA rolling andcoatingplantinAlabamaaswellasthetransferofVDMandASTfromOutokumputoThyssenKruppinreturnforthe financialreceivablecreatedinconnectionwiththeInoxumtransaction.Theauditorsreportedonthemainfindingsoftheir audit.Theyalsooutlinedtheirfindingsontheinternalcontroland riskmanagementsystemsin relationtotheaccounting processandwereavailabletoanswerquestionsandprovideadditionalinformation.TheChairmanoftheAuditCommittee reportedindepthatthefullSupervisoryBoardmeetingontheAuditCommittee'sexaminationoftheparent-companyand consolidated financial statements. Following our own examination and discussion of the parent-company financial statements,theconsolidatedfinancialstatements,andthecombinedmanagementreport,inlinewiththerecommendation bythe Audit Committee,the Supervisory Board acceptedthe result ofthe audit and approvedthe parent-company and consolidatedfinancialstatements.InviewoftheGroup'simprovedbutnotyetadequateearningpowerandinparticularits financialpressures,wesupporttheExecutiveBoard'sopinionthat–despitetheformalavailabilityofdistributableprofits– adividendpaymentforthepastfiscalyearisnotfinanciallyjustifiable.TogetherwiththeExecutiveBoardwewilltherefore proposetotheAnnualGeneralMeetingthatThyssenKruppAG'snetincomebeallocatedtootherretainedearningssoasto strengthenequity.

Personnel changes on the Supervisory Board and Executive Board

In fiscal 2012/2013 there were five personnel changes on the Supervisory Board of ThyssenKruppAG, four on the shareholderrepresentatives'sideandoneontheemployeerepresentatives'side.Oncompletionofthecombinationofthe stainlesssteelbusinesswiththeFinnishcompanyOutokumpu,employeerepresentativeBerndKalwastooddownfromthe Supervisory Board on December28,2012. Fritz Weber, Chairman ofthe General Works Council of ThyssenKrupp Bilstein GmbH,wascourt-appointedashissuccessoreffectiveJanuary15,2013.PeerSteinbrückstooddownfromtheSupervisory Board attheclose ofDecember31,2012.Hewassucceeded by Dr.RalfNentwig,whowas delegatedto ourCompany's Supervisory Board by the Alfried Krupp von Bohlen und Halbach Foundation at January01,2013. Dr. Gerhard Cromme stood downfromtheSupervisoryBoardatthecloseofMarch31,2013,afteroverelevenyears'serviceasmemberand chairman ofthe board. Dr.Kersten v.Schenck stepped downfromthe Supervisory Board atthe close ofApril19, 2013. Toreplacethem,theAlfriedKruppvonBohlenundHalbachFoundationdelegatedCarstenSpohrandDr.LotharSteinebach totheSupervisoryBoard,inlinewithaproposalbytheNominationCommitteeandtheshareholderrepresentativesonthe Supervisory Board. Prof. Dr. Beatrice Weder die Maruo also stepped down from the Supervisory Board at the close of October31,2013. René Obermann was court-appointed as her successor effective November01,2013. Prof.Dr.Ulrich LehnerwasappointedChairmanoftheSupervisoryBoardeffectiveApril01,2013.ThemembersoftheSupervisoryBoard expressed their thanks to Mr. Kalwa, Mr. Steinbrück, Dr.Cromme, Dr.v.Schenck, and Prof. Dr. Weder di Mauro for their supportovermanyyears.

With deep sadness and sorrow we said goodbye to Prof.Dr.h.c.mult. Berthold Beitz; the Honorary Chairman of our Company's Supervisory Board died on July30, 2013 at the age of 99. His unique personality as well as his business achievements and commitment to society were highly valued by us all. We will honor the memory of Berthold Beitz. Prof.Dr.Günter Vogelsang, the second Honorary Chairman of the Supervisory Board, stepped down from office for age reasons at September30,2013. ThyssenKrupp is deeply indebtedto Prof.Dr.Vogelsang. TogetherwithProf.Dr.Beitz he playedamajorroleinthesuccessofthemergerofThyssenundKruppin1999.Weexpressedourgratitudeandappreciationtohimforhissuccessfulworkovermanyyears.

AtthecloseofDecember31,2012Dr.OlafBerlien,Dr.JürgenClaassenandEdwinEichlersteppeddownfromtheExecutive Board.RalphLabontealsoleft prematurelyforhealth reasonsatMarch31,2013.Hewassucceeded byOliverBurkhard, who was appointed bythe Supervisory Board as member ofthe Executive Boardfrom February01,2013 and as Labor DirectorfromApril01,2013.TheSupervisoryBoardthankedthedepartingExecutiveBoardmembersfortheirmanyyears ofgoodwork.

The Supervisory Board thanks the Executive Board members, all employees of the Group worldwide and the employee representativesofallGroupcompaniesfortheirworkinthe2012/2013fiscalyear.

TheSupervisoryBoard

Prof.Dr.UlrichLehner Chairman

Essen,November29,2013

Corporategovernancereport

Inthissectionandinthecorporategovernancedeclarationinaccordancewith§289aGermanCommercialCodeHGBthe Executive Board – also on behalf of the Supervisory Board – reports on corporate governance at ThyssenKrupp in accordance with section 3.10 of the German Corporate Governance Code. This section also includes the compensation report.

Corporategovernanceoverview

ImplementationoftheGermanCorporateGovernanceCode

In the reporting year the Executive Board and Supervisory Board of ThyssenKruppAG again dealt intensively with the requirements of the German Corporate Governance Code, and especially the amendments adopted by the Government Commission on May13,2013. At October01,2013 the two boards issued a Declaration of Conformity pursuant to §161subsection1StockCorporationActAktG.

ThyssenKruppAGcomplieswithallrecommendationsoftheGovernmentCommissionontheGermanCorporateGovernance CodeasamendedonMay13,2013,publishedbytheFederalMinistryofJusticeintheofficialsectionoftheFederalGazette "Bundesanzeiger", and will continue to comply with these recommendations with one exception: Under the amended recommendation in section 5.4.6 paragraph 2 sentence 2 of the Code, if supervisory board members are promised performance-relatedcompensationitshould be orientedtowardsustainablegrowth oftheenterprise.Inaccordancewith Art.14 paragraph1 of the Articles of Association of ThyssenKruppAG, the members of the Supervisory Board of ThyssenKrupp AG receive both fixed and performance-based compensation. The performance-based compensation comprisescompensation relatingtothelong-term performanceoftheCompanyaswellasabonus based ontheannual dividend.DependingonthedecisionoftheAnnualGeneralMeetingonthedispositionofunappropriatednetincomeandthe development of the different assessment bases for the variable compensation elements, the short-term variable compensation may be higher than the long-term variable compensation. This would then not comply with the recommendation in section5.4.6 paragraph2 sentence2 of the Code. The composition of the compensation for Supervisory Board members as set out in the Articles of Association was resolved by the Annual General Meeting on January19,2007andcompliedwiththeGermanCorporateGovernanceCodeuntiltheamendmentsofMay15,2012.The Supervisory Board and Executive Board of ThyssenKruppAG have resolved to propose a change to Supervisory Board compensation and its adaptation in line with the Code recommendation to the Annual General Meeting on January17,2014. Insofar as the Annual General Meeting approves this proposal, ThyssenKruppAG will comply with all recommendationsoftheCodeasamendedonMay13,2013followingentryoftheresolutionoftheAnnualGeneralMeeting intheCommercialRegister.

Furthermore,since issuing its last declaration of conformity atOctober01,2012 ThyssenKruppAG hascompliedwith all recommendationsoftheCodeasamendedonMay15,2012andsinceitspublicationintheFederalGazetteasamendedon May13,2013withtheexceptionoftheaforesaiddeviationfromsection5.4.6paragraph2sentence2oftheCodeandthe followingexception:TheCodeasamendedonMay13,2013includedthenew recommendationthatthecompensationof managementboardmembersbecappedbothintotalandwithregardtoitsvariablecomponentssection4.2.3paragraph2 sentence6oftheCode.TheservicecontractsforthesittingExecutiveBoardmembersalreadyprovidedforcompensation caps,butthesedidnotmeettherequirementsofthenewCoderecommendationinfull.Amendmentagreementsincluding compensationcapscomplyingfullywithsection4.2.3paragraph2sentence6oftheCodewereconcludedwiththesitting ExecutiveBoardmembersinSeptember2013.Sincethen ThyssenKruppAGhascompliedwiththe new recommendation undersection4.2.3paragraph2sentence6oftheCodeasamendedonMay13,2013.

Webelievethatthesearewelljustifieddeviationsfromthe recommendationsoftheCodeasintendedbytheGovernment CommissionanddescribedintheForewordtotheCode.

ThyssenKruppAGcontinuestocomplywithallsuggestionsoftheGermanCorporateGovernanceCode.Alldeclarationsof conformityissuedtodatearepermanentlyavailableonourwebsite.

TheCodeisalsoimplementedatourlistedsubsidiaryEisen-undHüttenwerkeAG,takingintoaccounttheparticularitiesof itsmembershipoftheGroup.Individualdeviationsarepresentedandexplainedinthecompany'sdeclarationofconformity ofOctober01,2013.

Threelinesofdefensemodelasframeworkfortheinternaloversightsystem

An integrated governance, risk management and compliance model provides the basis for professional and efficient management and control in the Group. As a framework for this internal oversight system, ThyssenKrupp uses the internationallyestablishedthreelinesofdefensemodeladaptedtotheGroup'sspecificorganizationalstructure.Themodel showsatwhichlevellinethevariousresponsibilitiesforriskmanagementliewithintheGroup.Atthesametimeitserves todefineresponsibilitieswithinthecorporategovernancemodel.

Supervisory Board/ Audit Committee		External Auditing
Executive Board/ Business Area Boards
1st line of defense	2nd line of defense	3rd line of defense
Management controls	Financial controls	Internal Auditing
Internal controls	Compliance
	Risk management
	Quality management
	Security
Functions that own and manage risks	Functions that oversee risks	Functions that provide independent assurance

Thefirstlineofdefenseinvolvespreventing riskswherevertheycanoccur,andwherethisisnotpossibleidentifyingand managingtherisks.Tocreateafail-safesystemforthis,highlyautomatedinternalcontrolsareimplementedinthebusiness processes. As there are cases where this is not fully feasible, further control measures have to be performed by the managementtoensuretheeffectivenessofthecontrolsystem.

Thesecond line of defense,whichincludesfunctionssuchasGroupwide riskmanagementandcompliance, providesthe framework for the internal control system, the risk management system, and the compliance management system, for example via policies and standard operating procedures. At the same time these functions oversee the Group's risk landscapefromtheviewpointoftheGroupasawhole.Closeintegrationoftheinternalcontrolsystem, riskmanagement systemandcompliancemanagementsystemmaximizestheefficiencyofriskpreventionandmanagement.

The third line of defense is Corporate Function Internal Auditing, which independently reviews the appropriateness and efficiencyoftheriskmanagementprocessesandsystemsimplementedbythefirsttwolinesofdefense.InternalAuditing reportsdirectlytotheExecutiveBoardChairmanandtheAuditCommittee.InternalAuditingitselfissubjecttoanexternal qualityauditeveryfiveyears.

Themodelissubjecttoexternalsupervision bythefinancial-statementauditorswhotakeintoaccountthe results ofthe reviewsperformedbyInternalAuditingintheirassessment.

Appropriatecontrolandriskmanagementsystem

Corporate governance at ThyssenKrupp involves dealing responsibly with risks. The continuous and systematic managementofbusinessopportunitiesandrisksisfundamentaltoprofessionalgovernance.Ithelpsensurethatrisksare identified,evaluatedandmanagedatanearlystage.TheExecutiveBoardreportsregularlytotheSupervisoryBoardabout thestatusofthemainrisksintheGroup.TheAuditCommitteefocusesonmonitoringtheeffectivenessoftheaccounting processandtheinternalcontrol,riskmanagementandinternalauditingsystem,aswellasmonitoringtheindependenceof thefinancialstatementauditors.ThyssenKruppcontinuouslyenhancestheindividualsystemsandadaptsthemtochanging conditions.Keyfeaturesofourcontrolandriskmanagementsystemcanbefoundinthesection"Opportunitiesandrisks" onpages76–88.

Voluntaryspecialaudit

InJuly2013ThyssenKruppagreedwithDeutscheSchutzvereinigungfürWertpapierbesitze.V.andtheshareholderChristian Strenger,whosemotionsforaspecialauditwere rejectedbytheAnnualGeneralMeetinginJanuary2013,tocarryouta voluntary special audit – withthe aim of creating sustainable valuefor ThyssenKrupp and its shareholders. The special auditlookedintothebasicstructureoftheimprovedinternalcontrolsystemwithregardtoitsappropriatenessinpreventing compliance infringements in the future, the status of implementation of certain recommendations in the compliance managementsystem,aswellastheappropriatenessoftheinvestmentcontrolprocessforfuturelargeinvestmentprojects and the associated reporting to the Supervisory Board. ThyssenKrupp engaged two special auditors, BDO AG Wirtschaftsprüfungsgesellschaft and Prof.Dr. Hans-Joachim Böcking, Professor ofBusiness Administration,Auditing and CorporateGovernanceatGoetheUniversityFrankfurtamMain,toperformthespecialaudit.Theauditorscarriedouttheir audituptothebeginningofNovember2013andpresentedtheirreporttotheExecutiveBoard.Asagreed,thespecialaudit reportwillbemadeavailabletotheshareholdersontheCompany'swebsitefromthedateofconveningthe2014Annual GeneralMeetingofThyssenKruppAG.

Taking into accountthe dynamic change process at ThyssenKrupp,the special auditors conclude intheir reportthatthe systems and processes examined have been intensively enhanced, and the concepts and planned measures are constructive. The auditors confirm that the further development of the compliance-relevant internal control system in particulariswelladvanced,andfindthecompliancefunctiontobeprofessionallyorganizedandappropriatelystaffed.The reportingto the Supervisory Board is considered appropriate. The auditorstherefore endorsethe implementation ofthe existing concepts and have submitted proposals for further improvement, which in part have already been taken into account.

The Executive Board and Supervisory Board have discussed the audit report and in particular addressed the recommendations.

Compliance:Inform,Identify,ReportandAct

Compliance in the sense of Groupwide measures to ensure adherence to statutory requirements and internal company policiesisakeymanagementandoversightdutyatThyssenKrupp.

TheExecutiveBoardofThyssenKruppAGhasunequivocallyexpresseditsrejectionofantitrustviolationsandcorruptionin theThyssenKruppComplianceCommitment.Thecompliancecommitmentclearlystatesthatviolations,particularlyantitrust violationsandcorruption,willnotbetoleratedinanywayzerotolerance.Allinformationconcerningmisconductisfollowed up. To implement the compliance commitment a transparent management culture based on the new Group mission statement is in place and subjectto continuous improvement. Information on the mission statement is available on our websiteatwww.thyssenkrupp.com/en/nachhaltigkeit/unternehmenskultur.html.

Inthepastfiscalyearourcomplianceworkwasmarkedbyaseriesofmajorincidents,towhichtheExecutiveBoardand Supervisory Board reacted by intensifying compliance activities and strengthening the compliance organization. In this connection Supervisory Board Chairman Prof.Dr.Ulrich Lehner also identified compliance as a key area of his work alongsidecorporategovernance.Inresponsetomediareportsaninternalinvestigationintopressandothertripsinvolving individual Executive Board members was conducted at the end of 2012. In February 2013 business premises of ThyssenKruppSteelEuropeinDuisburgweresearchedbytheGermanFederalCartelOfficeonthebasisofsuspectedprice fixinginthedeliveryofcertainsteelproductstotheGermanautomotiveindustryanditssuppliers.InJune2013afinalfine of €88million was imposed on ThyssenKrupp inthe rail cartel case. From Aprilto June 2013the Group carried out an internalamnestyprogram.

InaresolutioninitsmeetingonNovember21,2012theSupervisoryBoardexplicitlyemphasizedandclarifiedonceagain theExecutiveBoard'scorporateresponsibilitywithregardtocompliance.Thebasicunderstandingofcomplianceisthatthe management has a corporate responsibilityfor observingthe law extending beyondthe individual duties of an Executive Boardmember.Theresolutionclearlystatesthatseriousorrepeatedcomplianceinfringementsintheareaofresponsibility ofanExecutiveBoardmembercanhaveconsequencesinvolvingthefull range of personnelmeasures.Accordinglyinits meetingonDecember18,2012theExecutiveBoardestablishedthattheexecutivesintheGrouptogetherbearcorporate responsibilityforcomplianceinourCompany;thebusinessareasimplementedtheresolutionintheirunits.

Our compliance program on corruption and antitrustlaw is built onthethree pillars "inform", "identify," and "report and act".Itisregularlyupdatedinternallyandreviewedexternallyonthebasisoftheapplicablelegalrequirementsaswellasby auditors.TheappropriatenessandeffectivenessofthecompliancesystemwasconfirmedinNovember2011byKPMGAG WirtschaftsprüfungsgesellschaftinconnectionwithcertificationtothenewAuditingStandard980oftheInstituteofPublic Auditors in Germany. The report by KPMG is available for downloading on our website. The compliance program was recentlyoverhauledinconnectionwiththecorporateinitiativeACT.

MoreinformationoncomplianceatThyssenKruppisprovidedinthesection"Compliance"onpages68–70.

SupervisoryBoardtargetsforthecompositionofcorporatebodies

The Supervisory Board must be composed in such a way that overall its members have the knowledge, skills and professional experience needed to perform the tasks involved properly. Supervisory Board proposals for the election of shareholderrepresentatives,forwhichtheNominationCommitteesubmitsrecommendations,takeintoaccountnotonlythe requirementsunderlaw,theArticlesofAssociationandtheGermanCorporateGovernanceCode,butalsothetargetsthe SupervisoryBoardsetsitselfforitscomposition.

InSeptember2010theSupervisoryBoardadoptedconcretetargetsforitscompositioninaccordancewithsection5.4.1of theGermanCorporateGovernanceCode.Thesetargetsareexplainedinthecorporategovernancereportonpage64ofthe 2009/2010annualreport,andincludecriteriasuchassuitablespecialistskills,knowledgeofthecompany,independence, andinternationalbackground.InitsmeetingonSeptember07,2012theSupervisoryBoardconfirmedthesetargetsandin particularaddedanewtargetregardingthenumberofindependentSupervisoryBoardmembers.Theamendmentstothe targetsaredetailedinthecorporategovernancereportonpage20ofthe2011/2012annualreport.Bothannualreportsare availableontheCompany'swebsite.

The Nomination Committee took the adopted targets into account in its proposals for the court appointment of René ObermannandthedelegationofCarstenSpohrandDr.LotharSteinebach.OveralltheSupervisoryBoardhasanumberof memberswith international businessexperienceandotherinternationalconnections.Thetargetmaximum age of70will not beexceeded byany oftheSupervisoryBoardmembersatthetime oftheelection.Afemale proportion of20%was achieveduptothedepartureofProf.Dr.BeatriceWederdiMauro.

TheSupervisoryBoardwillstrivetocontinuetomeetthesetargetsinthefuture,e.g.inpreparingelectionproposalsforthe AnnualGeneralMeeting.

Avoidingconflictsofinterest

Inthe reportingyeartherewerenoconsultingorotherserviceagreementsbetweenSupervisoryBoardmembersandthe Company.ConflictsofinterestofExecutiveBoardorSupervisoryBoardmembers,whichmustbedisclosedimmediatelyto theSupervisoryBoard,didnotoccur.

DetailsoftheotherdirectorshipsheldbyExecutiveBoardandSupervisoryBoardmembersonstatutorysupervisoryboards or comparable German and non-German control bodies of business enterprises are provided in the section "Additional information" on pages 197–199. Details of related partytransactions are given inNote 23tothe ConsolidatedFinancial Statements.

Directors'dealings

Accordingto§15aSecuritiesTradingActWpHGthemembersoftheExecutiveBoardandSupervisoryBoardandpersons close to them are required by law to disclose the purchase and sale of ThyssenKruppAG shares or related financial instrumentswheneverthe value ofthetransactions amountsto €5,000 ormorewithin a calendar year. Notransactions werereportedtousinthe2012/2013fiscalyear.

At September30,2013thetotal volume of ThyssenKruppAG shares held by all Executive Board and Supervisory Board membersamountedtolessthan1%ofthesharesissuedbytheCompany.

ShareholdersandAnnualGeneralMeeting

TheshareholdersofThyssenKruppAGexercisetheirrightsattheCompany'sAnnualGeneralMeeting,whichischairedby theChairmanoftheSupervisoryBoard.TheAnnualGeneralMeetingtakesplaceonceayear.Eachshareconfersonevote.

Shareholders can exercise their voting rights at the Annual General Meeting in person or by proxy, for which they can authorizedapersonoftheirchoiceoraCompany-nominatedproxyactingontheirinstructions.Proxyvotinginstructionsto Company-nominatedproxiescanbeissuedviatheinternetbeforeandduringtheAnnualGeneralMeetinguptotheendof the general debate. Shareholders can also cast their votes in writing by postal vote – without authorizing a proxy. The AnnualGeneralMeetingcanbeviewedliveandinfullontheCompany'swebsite.Alsoonourwebsitewemakeavailableto shareholders in goodtime all documents and information onthe Annual General Meeting. In addition, questions can be addressedtomembersofourInvestorRelationsdepartmentviaaninfolineore-mail.

Transparencythroughhigh-qualityinformation

Ourdialoguewiththecapitalmarketisaimedatinformingalltargetgroupsfully,equallyandquickly,andpresentingratingrelevantfactsinthehighestquality.Forexampleaspartofourinvestorrelationsworkweregularlymeetupwithanalysts andinstitutionalinvestors.Thevenuesanddatesof roadshowsandinvestors'conferencesarepostedonourwebsite.An intensivedialoguealsotakesplaceatanalysts'andinvestors'conferencesandinregularandadhocconferencecalls.The presentationsfortheseeventsarefreelyaccessibleonthewebsite,whichalsooffersvideooraudiorecordingsofthemain events.Weprovideinformationonrecurringdates,suchasthedateoftheAnnualGeneralMeetingorthepublicationdates ofinterimreports,inafinancialcalendarpublishedintheannualreport,theinterimreportsandontheCompany'swebsite.

InformationaboutthelatestdevelopmentsintheGroupisalsoprovidedonourwebsite,whereallpressreleasesandstock exchange adhocannouncementsofThyssenKruppAGare publishedinGermanandEnglish.TheCompany'sArticlesof AssociationandtherulesofprocedurefortheExecutiveBoard,SupervisoryBoardandAuditCommitteecanalsobeviewed onthe website, as canthe consolidatedfinancial statements, interim reports and information on implementation ofthe recommendationsandsuggestionsoftheGermanCorporateGovernanceCode.Allinterestedpartiescansubscribetoan electronicnewsletteronthewebsitewhichreportsnewsfromtheGroup.

DeductibleinD&Oinsurance

TheCompany hastaken out directors and officers D&O liability insuranceforthemembers ofthe ExecutiveBoard and Supervisory Boardwith an appropriate deductible pursuantto §93 paragraph2sentence3Stock Corporation Act AktG ExecutiveBoardmembersandtheGermanCorporateGovernanceCodeSupervisoryBoardmembers.

AccountingandfinancialstatementauditingbyPricewaterhouseCoopers

InlinewithEuropeanUnionrequirements,ThyssenKrupppreparestheconsolidatedfinancialstatementsandinterimreports inaccordancewiththeInternationalFinancialReportingStandardsIFRS.Howeverthestatutoryparent-companyfinancial statementsofThyssenKruppAG,onwhichthedividendpaymentisbased,aredrawnupinaccordancewithGermanGAAP HGB.

Forthe reportingperiodweagreedwiththenewfinancial-statementauditors,PricewaterhouseCoopersAktiengesellschaft Wirtschaftsprüfungsgesellschaft, Frankfurt am Main,thatthe Chairman ofthe Audit Committeewould again be informed immediately of any possible grounds for exclusion or bias arising during the audit insofar as they are not immediately eliminated,andthattheauditorswould reportimmediatelyonanyfindingsoroccurrencesduringtheauditwhichhavea significant bearing on the duties of the Supervisory Board. It was also agreed that the auditors would inform the SupervisoryBoardormakeanoteintheauditreportofanyfactsascertainedduringtheirexaminationthatconflictwiththe declarationofconformityissued.

Corporategovernancedeclaration

Thecorporate governance declaration in accordancewith §289aGermanGAAP HGB contains a description of howthe Executive Board and Supervisory Board operate, the composition and method of operation of the Committees, the declarationofconformityinaccordancewith§161StockCorporationActAktG,anddetailsofkeygovernancepractices.It ispresentedonourwebsiteatwww.thyssenkrupp.com/en/investor/unternehmensfuehrung_2012_2013.html.

Compensationreport

Thefollowingcompensationreportispartofthecombinedmanagementreport.

Performance-basedcompensationfortheExecutiveBoard

TheSupervisoryBoardisresponsiblefordeterminingindividualExecutiveBoardcompensationfollowingpreparationbythe PersonnelCommittee.ThecompensationsystemwasapprovedbytheAnnualGeneralMeetingonJanuary21,2011witha majorityof94.91%ofthecapitalrepresented.

The compensation for the Executive Board members comprises non-performance-related and performance-related components. The non-performance-related components are the fixed compensation, fringe benefits and pension plans, while the performance-related components are the performance bonus and the Long Term Incentive plan LTI as a componentwithalong-termincentiveeffect.Ontopofthisthereisifapplicableanadditionalbonus representingacash flow-basedmanagementincentive,ontheawardofwhichtheSupervisoryBoardmakesanewdecisioneachyear.

Criteria for the appropriateness of Executive Board compensation include the duties of the individual Executive Board members, their personal performance, the business situation, the success and prospects of the Company and also the prevailing level of compensation at peer companies and the compensation structure applying in the Company. The performance-related components contain elements that are measured over several years. They therefore set long-term incentivesandfocusthecompensationstructureonthesustainabledevelopmentoftheCompany.Asageneralrule,upto 20% of variable compensation can be based on individual performance, and extraordinary events are not taken into account.

AllExecutiveBoardmembercontractsprovideforaseverancepaymentintheeventofearlyterminationwithoutcause.The severancepaymentislimitedtoamaximumoftwoyears'compensationincludingbenefits severancepaymentcapand compensatesnomorethantheremainingtermoftheemploymentagreement.Apromiseofpaymentsintheeventofearly terminationduetoachangeofcontroldoesnotexist.

Fixedcompensationandfringebenefits

Since the last review at October 01, 2010, the fixed compensation for an ordinary Executive Board member has been €670,000peryear,paidoutasnon-performance-relatedbasiccompensationinmonthlyinstallmentsasasalary.Inviewof theGroup's businesssituation,the review plannedforOctober01, 2013waspostponedforafurtheryear. TheExecutive Boardmembersalso receivefringebenefits,mainlycomprisingtheuseofacompanycar,telephoneaswellasinsurance premiums.IndividualExecutiveBoardmembershavetopaytaxonthesefringebenefitsascompensationcomponents.The benefitsapplyinprincipletoallExecutiveBoardmembers;theamountvariesaccordingtopersonalsituation.

Performancebonus

Thefirstelementoftheperformance-relatedcompensationistheperformancebonus.Inaccordancewiththeperformance bonus rules resolved bytheSupervisoryBoard,theamount ofthe performance bonusisdependent ontheGroup'sEBIT earnings before interest and taxes and ROCE return on capital employed, each of which is considered equally as a criterion. The performance bonus istherefore alignedwiththe performance indicators used intheGroup.Forexample, if EBIT is €1 billion and ROCE is 5%,the performance bonus is €1 million. If EBIT is €900 million and ROCE is 3%, it is €750,000, if EBIT is €1.6 billion andROCE is 7%, it is €1.5million. The performance bonus is paid outtothe individual Executive Board members two weeks after its establishment by the Supervisory Board. With a view to the Act on the Appropriateness of Management Board Compensation VorstAGthe Supervisory Board determined thatfromfiscal year 2009/2010aquarteroftheperformancebonusmustbeconvertedintoThyssenKruppAGstockrightstobepaidoutaftera three-yearlock-upperiod.

LongTermIncentiveplan

AfurthercompensationcomponentistheLTI,avariablecompensationcomponentwithalong-termincentiveeffectwhich hasbeengrantedsincefiscalyear2010/2011andreplacedtheformerMidTermIncentiveplanMTI.TheLTIsystemisas follows:

Decisive factors forthe development ofthe LTI arethe value generated, measured onthe basis of ThyssenKrupp Value AddedTKVA,andthesharepricedevelopment.Foraspecifiedinitialvalue,whichforanordinaryExecutiveBoardmember amountsto€500,000,notionalsharesaregranted.Theseso-calledstockrightsarenotstockoptions.Thenumberofstock rightsissuedtoanExecutiveBoardmemberiscalculatedfromthespecifiedinitialvaluedividedbytheaveragestockprice inthe1stquarteroftheperformanceperiod.Thesestock rightsare recognizedaspartofcompensationattheirvalueat grantdate,calculatedinaccordancewithinternationalaccountingstandards.Thenumberofstockrightsissuedisadjusted attheendoftherespectivethree-yearperformanceperiod.ThebasisforthisisacomparisonofaverageTKVAinthethreeyearperformanceperiod–beginningOctober01ofthefiscalyearinwhichthestockrightsweregranted–withtheaverage TKVA ofthe previousthreefiscal years. Thiscompensationcomponentthereforecovers intotal a period ofsix years. An increaseinTKVAby€200millionresultsina5%increaseinstockrights;adecreasebythesameamountresultsina10% reduction.MoreinformationonTKVAisprovidedinthesection"Value-basedmanagement"onpage37.Attheendofthe performanceperiodthegrantedstock rightsarepaid out onthe basis ofThyssenKrupp'saveragesharepriceinthefirst threemonthsaftertheendoftheperformanceperiod.

Additionalbonus

ThissystemofperformancebonusandLTIrequiressupplementationundercertainconstellations.Forexample,duetothe negative TKVA in fiscal years 2009/2010 and 2011/2012 there will again be no payments under the MTI plan for the reporting period owingtothe plan's long-termfocus. In difficult economic years,which demand particular efforts ofthe ExecutiveBoard,theworkoftheExecutiveBoardshouldnotberewardedonlywiththefixedcompensation.Inviewofthe tasksfacingthe Executive Board and its particular responsibilitythis would impairthe competitiveness of our executive remuneration. It must also be considered that high financial discipline is essential in critical times. For this reason a performance-basedcompensationelement based on acashflow-related indicatorhas beenestablished.Thisindicatoris the ratiooffundsfromoperationstototaldebt FFO/TD,whichmakesitpossibletobalanceoutfluctuationsinEBIT,net workingcapitalandcapitalexpenditures.TheachievementofsettargetsbytheExecutiveBoardistoberewardedwithan additional bonus. The additional bonus is based 50% onthe year-end values and 50% onthe annual average values of FFO/TD;withayear-endvalueof3.2%andanannualaveragevalueof3.1%theadditionalbonusamountsto€450,000.To ensurethesustainabilityandmulti-yearassessmentbasisrequiredbytheVorstAGparticularlyintheratiobetweenshorttermandlong-termcompensation,55%oftheadditionalbonusisconvertedintoThyssenKruppstockrightsandpaidout afterathree-yearlock-upperiodaswiththeperformancebonus.Whetherthisadditionalbonusisgrantedagain,andifso atwhatlevel,isdecidedeachyear.

Compensationcaps

Undertherecommendationinsection4.2.3paragraph2sentence6oftheGermanCorporateGovernanceCodeadoptedby theGovernmentCommissiononMay13,2013,thecompensationofExecutiveBoardmembersmustbecappedbothintotal andwithregardtoitsvariablecomponents.WhiletheservicecontractsfortheCompany'ssittingExecutiveBoardmembers alreadyspecifiedcompensationcaps,thesedidnotfullymeettherequirementsofthenewCoderecommendation.Against thisbackgroundinitsmeetingonSeptember03,2013theSupervisoryBoardlimitedthetotalcompensationofanordinary ExecutiveBoardmemberto€4millionperyear.Theperformancebonuswascappedat€3million,theLTIat€1.5million, andtheadditionalbonusat€1.35millionperyear;totalcompensationmustnotexceedthemaximumof€4million.Forthe ExecutiveBoardChairmanthecapsaredoubletheseamounts.Correspondingamendmentagreementswereconcludedwith thesittingExecutiveBoardmembersinSeptember2013.

Pensions

Pensions are paid to former Executive Board members who have either reached pension age or become permanently incapacitatedforwork. Transitional allowances are no longer paid upon prematuretermination or non-renewal ofservice contracts.

ThepensionofanExecutiveBoardmemberappointedbeforeSeptember30,2012isapercentageofthefinalfixedsalary theyreceivedbeforetheiremploymentcontractended.ThispercentageincreaseswiththedurationoftheExecutiveBoard member'sappointment.In generalitis30% atthestart ofthefirstfive-year periodofappointment asforMr.Kerkhoff, 50%atthestartofthesecondand60%atthestartofthethird.Dr.HeinrichHiesinger'spensionis50%.Currentpensions are adjusted annually in line with the consumer price index. For Executive Board members appointed after September30,2012Mr.Burkhard,thisfinal-salarypensionplanwasswitchedtoadefined-contributionpensionplan,with theannualpensioncontribution"module"currentlyamountingto40%oftheannualfixedsalary.

Underthesurvivingdependants'benefitsplan,asurvivingpartnerreceives60%ofthepensionandeachdependantchild generallyuptotheage of18,maximumage25years,injustifiedexceptionalcases uptotheage of2720%, uptoa maximumof100%ofthepensionamount.

TotalExecutiveBoardcompensationin2012/2013

ThefollowingtableshowsdetailsofcompensationforindividualExecutiveBoardmembersinfiscalyear2012/2013.The prior-yearfiguresareshowninsquarebrackets:

ExecutiveBoardcompensation2012/2013

Annualincome			Stockrights grantedinfiscal yearfrom25%of performancebonus		Stockrights grantedinfiscal LTIrights yearfrom55%of additionalbonus fiscalyear		grantedin			Pensions
												Expense from share		IFRS		HGB
in€'000s	Fixed salary	Addit ional benefits	Perfor mance bonus <75%=	Addit ional bonus <45%=	Number	Value 1=	Number	Value1=	Number	Value1=	Total	based compen sationin thefiscal year	Service costs4=	Present valueof theobli gation4=	Service costs4=	Present valueof theobli gation4=
Dr.-Ing.
Heinrich Hiesinger	1,340 \$1,340%	28 \$28%	1,133 \$610%	433 \$244%	23,076 \$13,010%	408 \$215%	32,302 \$19,088%	571 \$316%	57,972 \$52,688%	995 \$1,094%	4,908 \$3,847%	1,607 \$437%	1,238 \$1,148%	3,810 \$2,830%	867 \$770%	2,700 \$1,986%
	391	112	250	113	—	—	—	—	16,909	290	1,156	763	575	10,390	439	7,660
Dr.Olaf Berlien2%	\$670%	\$40%	\$244%	\$98%	\$5,204%	\$86%	\$7,635%	\$126%	\$26,344%	\$547%	\$1,811%	\$524%	\$305%	\$6,214%	\$141%	\$4,461%
	447	21	377	144	7,692	136	10,767	190	19,324	331	1,646	506	379	379	242	242
Oliver Burkhard	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%	\$0%
Dr.Jürgen	558	21	250	113	—	—	—	—	24,155	414	1,356	972	555	4,029	424	3,176
Claassen2%	\$670%	\$28%	\$305%	\$122%	\$6,505%	\$108%	\$9,544%	\$158%	\$26,344%	\$547%	\$1,938%	\$201%	\$546%	\$2,534%	\$458%	\$1,918%
Edwin	391	18	250	113	—	—	—	—	16,909	290	1,062	763	340	11,661	249	8,970
Eichler2%	\$670%	\$45%	\$244%	\$98%	\$5,204%	\$86%	\$7,635%	\$126%	\$26,344%	\$547%	\$1,816%	\$524%	\$441%	\$7,808%	\$206%	\$5,840%
Guido	670	27	566	216	11,538	204	16,150	286	28,986	497	2,466	812	510	1,263	325	818
Kerkhoff	\$670%	\$26%	\$305%	\$122%	\$6,505%	\$108%	\$9,544%	\$158%	\$26,344%	\$547%	\$1,936%	\$314%	\$417%	\$888%	\$347%	\$584%
Ralph	670	27	284	108	5,769	102	8,075	143	28,986	497	1,831	1,170	452	12,294	344	9,905
Labonte34	\$670%	\$32%	\$244%	\$98%	\$5,204%	\$86%	\$7,635%	\$126%	\$26,344%	\$547%	\$1,803%	\$524%	\$414%	\$12,016%	\$60%	\$9,290%
	4,467	254	3,110	1,240	48,075	850	67,294	1,190	193,241	3,314	5 14,425	6,593	4,049	43,826	2,890	33,471
Total	\$4,690%	\$199%	\$1,952%	\$782%	\$41,632%	\$689%	\$61,081%		\$1,010% \$184,408%	\$3,829%	\$13,151% 5	\$2,524%	\$3,271%	\$32,290%	\$1,982%	\$24,079%

¹⁴atgrantdate

²⁴AppointmentendedonDecember31,2012.Under§622BGBtheservicecontractsofDr.BerlienandMr.EichlerranuntilApril30,2013,theservicecontractofDr.Claassenuntil July31,2013.Themonthlysalarypaymentswereoffsetagainsttheseverancepayments.Fortheperiodoftheirappointmentinthepastfiscalyear,eachofthethreedeparting ExecutiveBoardmembersreceivedaproratedperformancebonusof€250,000andaproratedadditionalbonusof€112,500calculatedonthebasisoftheirtargetperformance bonusandtargetadditionalbonus.

³⁴AppointmentendedonMarch31,2013.ServicecontractfulfilledinlinewithoriginalappointmentuntilSeptember30,2013.

44ServicecostandpresentvalueproratedinlinewithExecutiveBoardmembershipinthefiscalyear.TotakeaccountofthevestingofcontractualpensionobligationsforExecutive Boardmembers,furtherprovisionswererecognizedinthefiscalyear.Takingtheseprovisionsintoaccount,theservicecostsshowninthetableforDr.-Ing.Hiesingerareincreased by€7,696,000@IFRS4/€4,703,000@HGB4,forDr.Berlienby€3,409,000@IFRS4/€2,334,000@HGB4,forDr.Claassenby€1,202,000@IFRS4/€657,000@HGB4,forMr.Eichlerby €3,386,000@IFRS4/€2,374,000@HGB4andforMr.Kerkhoffby€1,819,000@IFRS4/€849,000@HGB4.ThepresentvaluesoftheobligationsareincreasedforDr.-Ing.Hiesingerby €7,466,000@IFRS4/€5,253,000@HGB4andforMr.Kerkhoffby€1,830,000@IFRS4/€1,070,000@HGB4.TakingintoaccounttheagreementreachedwithMr.Labonteregardinghis pensionbenefits,therecognizedprovisionsinclude€429,000@IFRS4/€393,000@HGB4lowerservicecoststhantheproratedamountshowninthetable.Thefiguresarepresented netofinterestandinterestchangeeffects;inaddition,theIFRSfiguresdonotincludeeffectsfromso-calledactuarialgainsorlosses.

⁵⁴InFY2011/2012thetotalcompensationwasincreasedbysecuritymeasuresincludingtaxesbornebytheCompanyfortheresidentialpropertiesofDr.-Ing.Hiesinger@€587,0004 andDr.Berlien@€224,0004.InFY2012/2013thetotalcompensationwasnotincreasedbysecuritymeasures.

Infiscalyear2012/2013Dr.Berlien,Dr.Claassen,Mr.EichlerandMr.LabonteresignedfromtheExecutiveBoard.WhileMr. Labonte's service contract was honored for the remaining 6 months of its original term up to September30,2013, Dr. Berlien,Dr.Claassen andMr. Eichler receivedseverance payments astheirservice contractswere dueto runforseveral more years. As recommended by the German Corporate Governance Code and thus contractually agreed, a cap of two years'compensationwasagreedfortheseverancepayments.AccordinglytheseverancepaymentforDr.Berlienamounted to€3.368million,forDr.Claassen€3.754million,andforMr.Eichler€3.372million;thedifferencesintheamounts reflect reductions in the variable compensation determined by the Supervisory Board in the previous fiscal year as well as contractuallyagreedseverancepaymentdeductions.Thestockrightsgrantedinpreviousyears25%ofperformancebonus and55% ofadditional bonuswerepaid outatthepurchase price.Inaddition,forthe periodoftheirappointmentinthe pastfiscalyearfromOctober01toDecember31,2012,thegentlemeneachreceivedaproratedperformancebonusanda proratedadditional bonusinthetotalamountof€362,500,calculated onthe basisofthetargetperformance bonusand targetadditionalbonus.Existing rightsunderthe1stand2ndinstallmentoftheLTI payableinJanuary2014and2015 continue to apply, though the 1st installment has no recoverable value. For fiscal year 2012/2013 stock rights were awardedonaproratedbasisunderthe3rdinstallment.

TotalcompensationincludingcompensationpaymentstotheExecutiveBoardmemberswhoresignedinthefiscalyearfor workinthe reportingyearamountedto€24.9million prioryear:€14.0million.Theindividualvariablecompensationwas determinedtakingintoaccounttherequirementforappropriateness.

No further benefits have been promised to any Executive Board members in the event that they leave their post. ThyssenKrupphasnoknowledgeofbenefitsorcorrespondingpromisesgiventomembersoftheExecutiveBoardbythird partiesinconnectionwiththeirExecutiveBoardpositions.Asinpreviousyears,noloansoradvancepaymentsweregranted tomembersoftheExecutiveBoard,norwereanyguaranteesorothercommitmentsenteredintointheirfavor.

The8thinstallmentoftheformerMTI,whichbecamedueinthepastfiscalyear, resultedinnopaymentduetothesharp drop in average TKVA. In January 2013 the Executive Board members were granted new stock rights under the 3rd installment oftheLTI.Underthe 1stto3rd installments oftheLTItheExecutiveBoardmembers haveatotalof483,243 stockrightswhichhavebeenawardedbutarenotyetpayable.

Total compensation paid to former members of the Executive Board and their surviving dependants amounted to €15.1million prior year: €15.0million. For pension obligations benefiting former Executive Board members and their surviving dependants an amount of €247.8million prior year: €214.4 million was accrued in the financial statements underIFRS,andanamount of€197.8million prioryear:€169.9millioninthefinancialstatements underGermanGAAP HGB.

Share-basedcompensationforfurtherexecutives

Alongsidethe ExecutiveBoard,furtherselectedexecutives oftheGroup receive part oftheir remuneration intheform of share-basedcompensation,theLTI.Interms ofstructureandthewayitfunctions,this iscomparablewiththeLTIforthe ExecutiveBoard,buttheinitialvaluesandtheincreaseinstockrightsaremeasureddifferently.

In detail: For a certain initial value, notional shares are granted. These so-called stock rights arenot stock options. The numberofstockrightsiscalculatedfromthespecifiedinitialvaluedividedbytheaveragestockpriceinthe1stquarterof thethree-yearperformanceperiod.Thenumberofstockrightsissuedisthenadjustedattheendoftherespectivethreeyearperformanceperiod.ThebasisforthisisacomparisonofaverageTKVAinthethree-yearperformanceperiodwiththe averageTKVAofthepreviousthreeyears.AnincreaseinTKVAby€200millionresultsina10%increaseinstockrights;a decrease bythesame amount results in a reductionof likewise 10%. Attheend ofthe performance periodthe granted stockrightsarepaidoutonthebasisofThyssenKrupp'saveragesharepriceinthefirstthreemonthsaftertheendofthe performanceperiod.PaymentsundertheLTIarelimitedtothreetimestherespectiveinitialvalue.

TheLTIisthereforeaGroupwide,globalcompensationinstrumentrelatedtolong-termperformance.TheaimoftheLTIisto strengthenexecutives'identificationwithThyssenKruppandloyaltytotheGroup.Linkednotonlytothesharepricebutalso toTKVA,theLTIprovidesanadditionalincentivetocreatevaluethroughvalue-basedmanagementgearedtoachievingthe Group'sgoals.

InthereportingyeartheMTI/LTIprogramresultedinexpenseof€20.6millionprioryear:incomeof€1.7million.

Inaddition,selectedexecutivesreceiveavariablecompensationcomponentinsuchawaythat20%ofthebonusawarded foreachfiscalyearisconvertedintoThyssenKruppAGstock rightstiedtotheThyssenKruppsharepriceandisonlypaid outincashaftertheexpirationofthreefiscalyearsonthebasisoftheaverageThyssenKruppsharepriceinthe4thquarter ofthethirdfiscalyear.

AppropriateSupervisoryBoardcompensation

ThecompensationoftheSupervisoryBoardissubjectto§14oftheArticlesofAssociation.Inadditiontoreimbursementof theirexpensesandameetingattendancefeeof€500,SupervisoryBoardmembersreceivefixedcompensationof€50,000 plusperformance-relatedcompensation.Theperformance-relatedcompensationconsistsofabonusbasedontheannual dividend and a component relatedtothe long-term performance oftheCompany. SupervisoryBoardmembers receive a performancebonusof€300foreach€0.01bywhichthedividendpaidouttoshareholdersforthepastfiscalyearexceeds €0.10 pershare. The compensation relatedtothe long-term performance oftheCompany is an annualcompensation of €2,000 for each €100 million by which average consolidated earnings before taxes EBT in the last three fiscal years exceed€1billion.

TheChairman receivesthreetimesthe abovefixedcompensation, performancebonusandlong-term performance-based component, andthe Vice Chairman doublethese amounts.In accordance withthe German Corporate Governance Code, chairmanship and membership of the Supervisory Board committees are compensated separately. Supervisory Board memberswhoonlyserveontheSupervisoryBoardforpartofthefiscalyearreceiveaproportionallyreducedcompensation amount.IfaSupervisoryBoardmemberdoesnotattendameetingofthefullSupervisoryBoardoracommitteemeeting, onethirdofhis/hercompensationisreducedproportionally.

AnamendmenttoSupervisoryBoardcompensationintheformofanamendmentto§14oftheArticlesofAssociationisto be proposed to the Annual General Meeting on January17,2014. Under the amendment the performance-based compensationcomponentsaretobeeliminatedandSupervisoryBoardcompensationswitchedtofixedcompensation.

Members ofthe Supervisory Board will receivetotal compensation, including meeting attendance fees, forthe reporting year of €1.55million. Inthe prior year, all Supervisory Board members agreedto waive half oftheirSupervisory Board compensationtoexpresstheirconcern andsolidarity in connectionwith developments atSteel Americas,withthe result thatthetotalpayoutwas€0.75million.AstheaverageconsolidatedEBTofthelastthreefiscalyearsisbelowthethreshold of€1billion–asinpreviousyears–nopaymentwillbemadefromthelong-termcompensationcomponentforfiscalyear 2012/2013.Theindividualmemberswillreceivetheamountslistedinthefollowingtable:

SupervisoryBoardcompensation2012/2013

				Compensation
	Fixed		Long-term	for committee	Meeting	Total
in€*	compensation	Bonus	component	work	attendancefee	compensation
	100,137 \$50,000%	— \$—%	— \$—%	50,000 \$12,500%	9,000 \$5,000%	159,137 \$67,500%
Prof.Dr.UlrichLehnerChairmansinceApril01,2013	74,795	—	—	43,630	8,500	126,925
Dr.GerhardCrommeChairmanuntilMarch31,2013	\$150,000%	\$—%	\$—%	\$50,000%	\$10,500%	\$210,500%
	100,000	—	—	47,222	11,500	158,722
BertinEichlerViceChairman	\$100,000%	\$—%	\$—%	\$50,000%	\$9,500%	\$159,500%
	50,000	—	—	—	3,500	53,500
MartinDrehersinceAugust10,2012	\$7,104%	\$—%	\$—%	\$—%	\$500%	\$7,604%
	47,619	—	—	10,417	3,500	61,536
MarkusGrolms	\$46,666%	\$—%	\$—%	\$10,417%	\$2,500%	\$59,583%
	50,000	—	—	25,000	7,500	82,500
SusanneHerberger	\$50,000%	\$—%	\$—%	\$13,320%	\$3,500%	\$66,820%
	12,192	—	—	3,048	2,000	17,240
BerndKalwauntilDecember28,2012	\$50,000%	\$—%	\$—%	\$12,500%	\$3,500%	\$66,000%
	47,619	—	—	12,500	4,000	64,119
Prof.Dr.Hans-PeterKeitel	\$50,000%	\$—%	\$—%	\$8,709%	\$3,000%	\$61,709%
	50,000	—	—	—	3,500	53,500
Ernst-AugustKiel	\$50,000%	\$—%	\$—%	\$—%	\$2,500%	\$52,500%
	50,000	—	—	—	3,500	53,500
Dr.SabineMaaßen	\$50,000%	\$—%	\$—%	\$—%	\$2,500%	\$52,500%
	37,397	—	—	4,760	3,000	45,157
Dr.RalfNentwigsinceJanuary01,2013	\$—%	\$—%	\$—%	\$—%	\$—%	\$—%
	50,000	—	—	25,000	8,000	83,000
Prof.Dr.BernhardPellens	\$50,000%	\$—%	\$—%	\$25,000%	\$6,000%	\$81,000%
	50,000	—	—	4,760	3,500	58,260
PeterRemmler	\$50,000% 27,534	\$—% —	\$—% —	\$—% 6,884	\$2,500% 3,000	\$52,500% 37,418
Dr.Kerstenv.SchenckuntilApril19,2013	\$50,000%	\$—%	\$—%	\$12,500%	\$3,500%	\$66,000%
	—	—	—	—	—	—
ThomasSchlenzuntilJuly31,2012	\$41,667%	\$—%	\$—%	\$31,250%	\$7,000%	\$79,917%
	50,000	—	—	—	3,500	53,500
CarolaGräfinv.SchmettowsinceJanuary30,2012	\$33,470%	\$—%	\$—%	\$—%	\$1,500%	\$34,970%
	—	—	—	—	—	—
Prof.Dr.EkkehardD.SchulzuntilDecember31,2011	\$12,568%	\$—%	\$—%	\$3,142%	\$1,000%	\$16,710%
	50,000	—	—	37,500	11,500	99,000
WilhelmSegerath	\$50,000%	\$—%	\$—%	\$14,139%	\$5,000%	\$69,139%
	18,836	—	—	4,760	500	24,096
CarstenSpohrsinceApril19,2013	\$—%	\$—%	\$—%	\$—%	\$—%	\$—%
	8,402	—	—	2,100	—	10,502
PeerSteinbrückuntilDecember31,2012	\$43,333%	\$—%	\$—%	\$10,417%	\$2,000%	\$55,750%
	22,603	—	—	4,760	1,000	28,363
Dr.LotharSteinebachsinceApril19,2013	\$—%	\$—%	\$—%	\$—%	\$—%	\$—%
	50,000	—	—	—	3,500	53,500
ChristianStreiff	\$50,000%	\$—%	\$—%	\$—%	\$2,500%	\$52,500%
	50,000	—	—	25,000	10,000	85,000
JürgenR.Thumann	\$46,667%	\$—%	\$—%	\$23,611%	\$6,000%	\$76,278%
	35,479 \$—%	— \$—%	— \$—%	— \$—%	2,000 \$—%	37,479 \$—%
FritzWebersinceJanuary15,2013	50,000	—	—	—	4,500	54,500
Prof.Dr.BeatriceWederdiMauro	\$50,000%	\$—%	\$—%	\$—%	\$3,500%	\$53,500%
	50,000	—	—	—	3,500	53,500
KlausWiercimok	\$50,000%	\$—%	\$—%	\$—%	\$2,500%	\$52,500%
	1,132,613	—	—	307,341	114,000	1,553,954
Total	\$1,131,475%	\$—%	\$—%	\$277,505%	\$86,000%	\$1,494,980%

*Prior-yearfiguresinsquarebrackets.IntheirmeetingonJanuary18,2013themembersoftheSupervisoryBoardresolvedtoforegopaymentofhalfthetotalcompensationfor fiscal2011/2012towhichtheywereentitledunderArticle14,par.1to3oftheArticlesofAssociationofThyssenKruppAG,soonlyhalftheamountsshownhereforfixed compensationandcompensationforcommitteeworkwerepaidout.

TheemployeerepresentativeswhobelongtotradeunionshavestatedthattheywilltransfertheircompensationtotheHans-BöcklerFoundationinaccordancewiththepoliciesofthe GermanFederationofTradeUnions.

MembersoftheSupervisoryBoardwilladditionallyreceivecompensationof€79,069Rprioryear:€81,953Sforsupervisory board directorships atGroup companies infiscalyear 2012/2013. The individualmembers ofthe Supervisory Boardwill receivetheamountsshowninthefollowingtable:

CompensationfromsupervisoryboarddirectorshipswithintheGroup

in€	2011/2012	2012/2013
MartinDreher@sinceAugust10,20124	1,066	15,399
SusanneHerberger	17,000	19,664
BerndKalwa@untilDecember28,20124	15,750	4,158
Ernst-AugustKiel	19,350	19,350
PeterRemmler	8,820	16,500
ThomasSchlenz@untilJuly31,20124	9,950	—
WilhelmSegerath@untilMay07,20124	10,016	—
FritzWeber@sinceJanuary15,20134	—	3,998
Total	81,952	79,069

In the reporting year Supervisory Board members received no further compensation or benefits for personal services rendered, in particular advisory and mediatory services. In the previous year the law firm Clifford Chance, for which SupervisoryBoardmemberDr.v.SchenckworkedasanofcounseluntilJune30,2012,receivedatotalof€483,146from ThyssenKruppcompaniesforitsconsultingservices.Asinpreviousyears,noloansoradvancepaymentsweregrantedto membersoftheSupervisoryBoard,norwereanyguaranteesorothercommitmentsenteredintointheirfavor.

Relatedtothereportingyear,formerSupervisoryBoardmemberswholefttheSupervisoryBoardbeforeOctober01,2012 willnotreceiveanycompensationfromthelong-termcompensationcomponentforthetimetheyservedontheSupervisory Boardbecause–asintheprioryears–averageconsolidatedEBTinthelastthreefiscalyearsisbelowthethresholdof€1 billion.

ThyssenKruppstock

ThevaluepotentialofourStrategicWayForwardandourtransformationintoadiversifiedindustrialgroupwasonceagain themainincentiveforinvestmentinThyssenKrupp'sstockinfiscal2012/2013.ThestockoutperformedtheDAXindexfor muchofthefirsthalfofthefiscalyear,butsubsequentlythevisiblesuccessesofouroperatingandstrategicmeasures wereovershadowedbythepotentialbalancesheetrisksresultingfromtheCompany'spastproblems.

KeydataofThyssenKruppstock

		2008/2009	2009/2010	2010/2011	2011/2012	2012/2013
Capitalstock	million€	1,317	1,317	1,317	1,317	1,317
Numberofsharestotal	millionshares	515	515	515	515	515
StockexchangevalueendSeptember	million€	12,106	12,306	9,543	8,510	9,096
ClosingpriceendSeptember	€	23.53	23.92	18.55	16.54	17.68
High	€	25.05	28.07	35.84	22.86	19.05
Low	€	12.11	19.82	18.55	11.58	13.16
Dividend	€	0.30	0.45	0.45	—	—1
Dividendtotal	million€	139	209	232	—	—1
Dividendyield	%	1.3	1.9	2.4	—	—1
Earningspershare2	€	4.01	1.77	2.71	8.24	2.71
Numberofsharesoutstanding3	millionshares	463.5	464.0	476.2	515	515
Tradingvolumedailyaverage	millionshares	4.8	3.4	3.2	4.1	3.7

¹proposaltotheAnnualGeneralMeeting

²Prior-yearfigureshavebeenadjustedseeNote03. ³weightedaverage

Inthefirst few monthsofthereportingyear, ThyssenKrupp'sstock benefitedfromthevisible progress ofthestrategic developmentprogramandclearlyoutperformedtheDAXandDJSTOXXindicesforlongperiods.Inadditiontotheportfolio optimizations–inparticularthesaleofInoxum–capitalmarketinterestcenteredmainlyontheclearaccelerationofthe culturalchangewhichistransformingThyssenKruppintoafirmlyperformance-orientedcompany.

However,towardsthemiddleofthefiscalyear,theprotractedanddifficultsalenegotiationsinconnectionwiththestrategic reviewofSteelAmericasandpotentialbalancesheetrisksfromtheGroup'spastproblemscamemoretothefore.This development, which continued to the end of the fiscal year, reversed the stock's previous outperformance versus the benchmarkindices.

OnSeptember30,2013ThyssenKrupp'sstockpricestoodat€17.68,around7%higherthanayearearlier.Inthesame period,theDAXandDJSTOXXindiceseachgainedaround19%.

Returntodividendcontinuityremainstheaim

ThyssenKrupp'spolicyofsharingitssuccesswithitsshareholdersisgearedtocontinuity.Generallytheaimistodistribute an appropriate dividend based on the Group's results for the year. This continuity of dividend policy also involves not suspendingthedividendinbadyears–wherefinanciallyjustifiable.

AgainstthebackgroundoftheGroup'simprovedbutnotyetadequateearningpowerandinparticularthebalancesheet impactsofnecessaryimpairmentcharges,provisionsandrestructuringmeasureswithanotherlargeloss,adeclineinthe equityratioandatemporaryincreaseingearing,adividendpaymentbytheGroup–thoughformallypossibleonthebasis oftheparentcompanyfinancialstatementsofThyssenKruppAG–cannotbejustified.TheExecutiveBoardandSupervisory BoardwillproposetotheAnnualGeneralMeetingthattheunappropriatednetincomeofThyssenKruppAGbeallocatedin fulltootherretainedearningsinordertostrengthentheCompany'stotalequity.

Overall,however,ouraimremainstoprovidedividendcontinuity,andweregardareliableandattractivedividendpolicyas animportantelementofourvisionofadiversifiedindustrialgroup.Basedonthecontinuingimplementationofourstrategic developmentprogramandtheassociatedimprovementinourearningsandbalancesheetratios,itisourexpressintention toonceagainpayanappropriatedividendassoonasfinanciallyjustifiable.

StrategicWayForwardattractingnewshareholders

The largest shareholder is the Alfried Krupp von Bohlen und Halbach Foundation, Essen, which holds 25.33% of the Company'sstock.Privateinvestorsown12.5%ofThyssenKruppAG.Shareholderswithsignificantholdingsattheendof September2013wereFranklinMutualAdvisersandBlackRockfromtheUSAandCevianCapitalfromSweden.Franklin MutualandCevianbothreportedthattheyhadexceededthe5%threshold.BlackRockreportedthatitsholdinghadfallen belowthe5%threshold.Therestofthestockiswidelydispersedinternationally.InstitutionalinvestorsfromtheUSAform thebiggestgroupwitha15.2%shareofthecapitalstock,followedbyinvestorsinGermanywith10.7%.ThyssenKruppAG doesnotcurrentlyholdanytreasuryshares.

InthepastfiscalyearwewereabletoattractanumberofinvestorswhoweredrawntoThyssenKruppinparticularbyour extensivetransformationprogram.ThereisalsoincreasinginterestinThyssenKrupp'sstockfrominvestorsincapitalgoods stocks.

AnalystrecommendationsforThyssenKruppstocklargelypositive

There are currently 28 analysts from international investment banks and brokers regularly covering the strategic and operating development of ThyssenKrupp and making recommendations on the stock for investors around the world. Financialanalystsarethereforeimportantmultipliersforourequitystory.OurInvestorRelationsteamprovidesconvincing, valuation-relevantinformationandengagescontinuouslywithanalyststohelpattractinvestors'interestinourstockand gainnewshareholders.

ThevaluepotentialthatanalystscurrentlyattachtoThyssenKrupp'sstockisclearlyreflectedintheirrecommendations.At September30,2013,74%ofanalystsrecommendedbuyingorholdingthestock.

RepositioningofThyssenKruppisapriorityofIRwork

By providing tailored information and conducting a targeted dialogue with analysts and investors, Investor Relations is helpingrepositionThyssenKrupponthecapitalmarketasadiversifiedindustrialgroup.Untilrecently,thecapitalmarkets regarded and valued ThyssenKrupp mainly as a steel company. In the past fiscal year, our Investor Relations team employedavarietyofcapitalmarket-specificmarketingmeasuresaimedonceagainatconvincinginvestorsinthecapital goodssectorofthevaluepotentialcreatedbyourstrategicdevelopmentintoadiversifiedindustrialgroupandpersuading themtoinvestinourstock.

IndoingsoweincreasedoureffortstoinvolvenotonlyExecutiveBoardmembersbutalsobusinessareaboardmembersin thedialoguewiththecapitalmarket.

SomebrokershavenowstartedincludingcapitalgoodsanalystsintheiranalysisandmarketingofThyssenKruppstock.

YourcontactwithInvestorRelations

TheteamatInvestorRelationsisatyourdisposaltoprovidefurtherinformationonThyssenKrupp'sstockandthevalue potentialoftheCompany.Wealsoprovideextensivefactsanddataonourwebsite.IfyouwouldliketocontactourInvestor Relations team or find out about the dates planned in the 2013/2014 financial calendar, please refer to the contact informationatthebackofthisannualreportorvisittheInvestorRelationspagesonourwebsiteatwww.thyssenkrupp.com.

Combinedmanagementreport

30

Profile and strategy
Capabilityprofileandorganizationalstructure	30
TheGroup'sStrategicWayForward	31
Focusongovernanceandcompliance	36
Value-basedmanagement	37

38

Group review
SummarizedassessmentbytheExecutiveBoard	38
Businessperformance	39
Capitalexpenditures	43
Cashflowandnetfinancialdebt	44
Bondissue	46
Rating	46

47

Expected developments
Fiscalyear2013/2014	47
Fiscalyear2014/2015	48

49

Business	area	review

ComponentsTechnology	49
ElevatorTechnology	50
IndustrialSolutions	51
MaterialsServices	52
SteelEurope	53
SteelAmericas	54
CorporateatThyssenKruppAG	55
StainlessGlobal4discontinuedoperation5	56

57

Results of operations and financial position

Componentsofearnings	57
Analysisofthestatementofcashflows	58
Centralfinancingandmaintenanceofliquidity	59
Analysisofthestatementoffinancialposition	60
Assetsnotrecognizedandoff-balancefinancing
instruments	61

62

Annual financial statements of ThyssenKrupp AG
Capitalexpenditures	62
Resultsofoperations	62
Analysisofthestatementoffinancialposition	63
Unappropriatedincomeandproposalforthe
appropriationofnetincome	64
Condensedstatementsoffinancialpositionandincome 65

67

Subsequent events

68

Compliance

71

Macro and sector environment
Economicenvironment	71
Salesregionsandcustomergroups	73
Procurementmarkets	74

76

Opportunities and risks
Opportunityreport	76
Riskreport	78

89

Non-financial performance indicators
Sustainability	89
Innovations	89
Employees	91
Environment,climateandenergy	94
Corporatecitizenship	95

96

Legal information
Corporategovernancedeclaration	96
Compensationreport	96
Disclosureoftakeoverprovisions	96

Profileandstrategy

Weareworkingonthefuture

ThyssenKrupp has over 150,000 employees insome 80countries developing innovative products, high-qualitymaterials and intelligent industrial processes and services for sustainable infrastructure and resource efficiency. We combine our engineering expertise and broad technology know-how with our traditional strength in materials to create value for our customers around the world and utilize the varied opportunities offered by the markets of the future. Competence and diversity,globalreach,andtraditionaredistinguishingfeaturesofThyssenKrupp.Entrepreneurship,courageandapassion toperformwillleadustoourgoal:tobebestinclass.

Capabilityprofileandorganizationalstructure

Capabilityprofile

ThyssenKrupp is a diversified industrial group. For us, innovations and technical progress are key factors in managing global growth andthe use offinite resources in a sustainable way. Togetherwith our customers, our engineers develop sustainable solutionstothe challenges ofthefuture inthe areas "Mechanical", "Plant" and "Material". Our engineering expertiseenablesourcustomerstogainanedgeintheglobalmarketandmanufactureinnovativeproductsinacost-and resource-efficient way. In the Mechanical area we design and manufacture high-quality components for the automotive, machinery, energy and construction sectors. We also produce innovative technological goods such as modern elevator systems.ThePlantareaextendsfromtheengineeringandconstructionofcompleteindustrialcomplexestoaglobalservice networkandadvancednavaltechnology.OurcapabilitiesintheMaterialareaincludecustommaterialssolutions,efficient materialsmanufacturingandprocessing,andmaterialsservices.

Organizationalandmanagementstructure

EffectiveJanuary 01, 2013the business areas Plant Technology andMarineSystemsweremerged into a newIndustrial Solutionsbusinessarea.OnNovember29,2013acontractwassignedonthesaleoftheUS rollingandcoatingplantin Calvert/Alabama 8ThyssenKrupp Steel USA9 to a consortium of ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation.Theagreementalsoincludesalong-termslabsupplycontractfortheBraziliansteelmill8ThyssenKruppCSA9. Consequently, at the end of the reporting year the full Steel Americas business area – which had been classified as a discontinued operation in accordance with IFRS – was reclassified as a continuing operation; withinthe Steel Americas businessarea,ThyssenKruppSteelUSAisreportedasadisposalgroup.Ourcontinuingoperationsarethusorganizedinsix business areas: Components Technology, Elevator Technology, Industrial Solutions, Materials Services, Steel Europe and SteelAmericas.ThebusinessareasaredividedintooperatingunitsandGroupcompaniesoperatingindependentlyonthe market. Altogether around 630 companies and equity interests in 77 countries make up the ThyssenKrupp Group. The Stainless Global business area 8Inoxum9 has been reported as a discontinued operation since September 30, 2011; its combinationwiththeFinnishcompanyOutokumpuwascompletedonDecember28,2012.

The Group is led strategically by ThyssenKrupp AG as corporate headquarters. Founded in 1999 as a stock corporation under German law, the Company has dual domiciles in Essen and Duisburg. Corporate headquarters is located in the ThyssenKruppQuarter inEssen. TheExecutiveBoardof ThyssenKruppAGsetsthestrategyfortheGroup'sdevelopment andsteersthebusinessareas,thecorporatefunctions,andtheregions.

ThefuturesuccessoftheGroupwillbebasedongreaterglobalconnectednessandcooperation.Tothisend,ThyssenKrupp operates in a matrix structure made up of operating businesses, corporate functions and regions. Within this structure, roles,processesandreportinglineshavebeenredefinedandadministrativefunctionsadaptedtothenewleadershipmodel. CorporateheadquartersandthemanagementsofthebusinessareasstartedworkinginthenewstructureonOctober01, 2013.ThestructureofthefullGroupwillbeadaptedstepbysteptotheneworganizationalmodel.

TheGroup'sStrategicWayForward

Demographic change,the globalization of goodsflows andthe rapid growth of mega citiesmeanthat global demand is rising all the time. As a result, the world needs "more" consumer and capital goods, infrastructure, energy and raw materials. However,this growing demand is set againstthefinite nature of natural resources. Atthe sametime, climate changeisnowa reality,and politicalconditionsalsocallfor "better"solutions.Theworlddoesnotjustneed"more",but aboveall"better":Weneedtouseresourcesmoreefficiently,reducetheenvironmentalimpactofproducingconsumerand capitalgoods,andbuildsustainableinfrastructure.

With its engineering expertise, ThyssenKrupp offers solutions to these challenges and with its technologies, materials, industrialprocessesandservicesalreadymeetsrequirementsfor"more"and"better"inmanyareas–bothinindustrialized countriesandinemergingmarkets.Thiscreatesvalueforourcustomersandgivesusaclearcompetitiveedge.

ToaligntheGroupsystematicallywiththesegrowthtrendswelaunchedourStrategicWayForwardinMay2011.Thepillarsof thisholisticprogramarecontinuousportfoliooptimization,changesinourcorporateculture,leadershipandstructure,anda strongerperformanceorientation.Thiswillstrengthenourfinancialbaseandgiveusthefreedomtotargetouractivitieson high-growthmarketsandbusinesses.

ThyssenKruppmadesignificantprogressinimplementingitsStrategicWayForwardinthereportingyear.

Portfoliofurtheroptimized

Systematic implementation of the portfolio measures announced in May 2011 and other divestment projects is helping secure the Group's long-term future: The share of highly volatile, capital-intensive materials businesses is being substantially reduced in favor of more profitable and less capital-intensive capital goods businesses. At the end of the reportingyear,steelmakingoperationsaccountedforlessthan30%ofthesalesofourbusinessareas,andcapitalgoods andservicesformorethan70%.Ourportfoliodecisionsarebasedonearnings,cashflowandvalueaddedbenchmarked againstcompetitors.

In fiscal 2012/2013 we completedthe portfolio optimization programs resolved in May 2011, significantly changingthe Groupandmakingitmoresustainable:

• The combination of Inoxum,theformer Stainless Global business area, withthe Finnish stainless steel manufacturer OutokumpuwascompletedonDecember28,2012.AsaresultofthetransactionThyssenKruppreceived€1billioncash andtransferredexternalfinancialliabilitiesofInoxumtoOutokumpu.Thisleddirectlytoa reductionintheGroup'snet financial debt. Outokumpu also took over the pension obligations of Inoxum. In addition, ThyssenKrupp received a 29.9%shareinthenewcompanyandafinancialreceivablefromOutokumpu.

TheEuropeanmergercontrolauthoritiesonlyapprovedthecombinationsubjecttothedivestmentoftheASTstainless steel plant in Terni and a number of Europeanservicecenters andsalessubsidiaries.Duetothe pressuretosell and againstthe background ofthe difficult market situation inthe stainless steel sector, it is currently proving difficultto makethesaleatanappropriateprice.

In the context of the necessary refinancing of Outokumpu, ThyssenKrupp therefore signed an agreement with OutokumpuonNovember29,2013transferring100%ofthesharesofVDMandASTaswellasothersmallerstainless steelservicecenteractivitiestoThyssenKrupp.Inreturn,thefinancialreceivablecreatedinconnectionwiththeInoxum transaction will be transferred to Outokumpu. This transfer is designed to enable Outokumpu to fulfill the EU Commission'sdivestmentconditionwithinthesetdeadlineinawaythatpreservesvalue.Atthesametimewearetaking ourresponsibilitytotheemployeesseriouslybyprovidingOutokumpuwiththeopportunityforsustainablefinancingand thusofferingbetterprospectsforthefutureofthecompany.

Tomeetthe requirements ofthe EUCommission, ThyssenKruppwillfully divest its29.9%shareholdinginOutokumpu andterminateallotherfinanciallinkswiththeOutokumpugroup.ThecommitmentresultingfromthesaleofInoxumto OutokumputooffsetanynegativefinancialconsequencesforOutokumpuundermergercontrol requirementsuptoan amountof€200millionthereforeceasestoapply.Withthetransferandthedivestmentoftheshares,ThyssenKruppwill createtheconditionsfortherefinancingofOutokumpu,includingacapitalincrease.

Thetransactionissubjecttotheapprovalofthecompetentregulatoryauthoritiesandtothecooperationandapprovalof shareholders,banksandcreditorsfortheoverallplanforasustainablerefinancingofOutokumpu.

Pleasealsorefertothesection"Opportunitiesandrisks"onpage82andNote36.

• TheSteelEurope businessareasuccessfullycompletedthesale ofThyssenKrupp TailoredBlankstothelongstanding Chinese steel producer Wuhan Iron and Steel Corporation 8WISCO9. Following approval by the competent regulatory authorities, the main closing took place on July 31, 2013. The closing for two Chinese subsidiaries will follow after approvalbythelocalregulatoryauthoritiesinChangchun.

Additionaldivestmentprojects:

• Inthe Components Technology business areawemadegood progresswith restructuringtheBerco group.In parallel, discussionsaretakingplacewithseveralpotentialbuyersaboutthesaleofthegroup.Bercoisaleadingglobalsupplier ofundercarriages,basedmainlyonforgedcomponents,fortheconstructionmachinerysectorandoffersabroadrange ofpartsandservicesforbothOEMsandtheaftermarket.

• In January 2013 the Materials Services business area sold all shares in ThyssenKrupp ServicesLtd., UK, to Voith Industrial Services HoldingLtd. ThyssenKrupp ServicesLtd. was the last remaining European technical services companyintheIndustrialServicesoperatingunit.Wealsosoldthe10.6%minorityshareacquiredaspartofthesaleof Safway in 2009/2010. Thesale processfortheRailway/Construction business initiated inMay 2013 is proceedingto plan.ThisbusinesscomprisestheThyssenKruppBautechnikgroup,ThyssenKruppBauserviceGmbHandThyssenKrupp GfTGleistechnik.
• The Steel Europe business area is currently preparing the disposal of its grain-oriented electrical steel production operationswithplantsinGelsenkirchen/GermanyandIsbergues/FranceaswellastheelectricalsteelactivitiesinNashik/ India.

SteelAmericas

InMay2012weannouncedthatwewereexaminingstrategicoptionsforthetwoplantsoftheSteelAmericasbusinessarea inBrazilandtheUSA.ThebackgroundtothisdecisionwasthattheeconomicconditionsinBrazilandtheUSAhadchanged significantlyandadverselysincetheintegratedmodelwiththesteelmillinBrazilandthe rollingandcoatingplantinthe USAwasdeveloped.InSeptember2012wethereforelaunchedabiddingprocessforthebusinessareaandconsequently classifieditasadiscontinuedoperationinaccordancewithIFRS.

On November 29, 2013 we signed a contract with a consortium of ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation8theconsortium9onthesaleoftheThyssenKruppSteelUSArollingandcoatingplantinCalvert/Alabama.Upon closing,ThyssenKruppwillreceiveapurchasepriceof1.55billionUSdollarsfortheplantinAlabamaandavaluableslab supplycontract.ThismeansthatasustainablesolutionhasalsobeenfoundfortheThyssenKruppCSAsteelmillinBrazil.It wascontractuallyagreedthattheconsortiumwillpurchase2millionmetrictonsofslabsperyearfromThyssenKruppCSA upto2019. Thislong-termslabsupplycontractforThyssenKruppCSA isafirstmajorstepinthe decoupling ofthetwo plantsandwillalsoenableThyssenKrupptofulfillthecommitmentagreedwithValetopurchaseslabsfromThyssenKrupp CSA.InthiswaytheGroupwillbeabletoreducetherisksfromtheoriginallyintendedcross-currency-areatandemmodel aswellaspricerisksinconnectionwithmarketentryintotheUSA.Theclosingoftheagreementsissubjecttotheapproval ofthe competent regulatory authorities. Withthe sale andthe slab supply contract ThyssenKrupp is creating important conditionsforfurtherimprovementstoitscashflowprofileandkeyfinancialratios.

Based ontheagreedtransactionweareconfidentthatinthecomingyearswecan buildonthe operatingimprovements already achieved at Steel Americas in the past fiscal year and better exploit the market opportunities arising from the changed parameters. The measures to further optimize technical performance as well as our initiatives to enhance efficiency will contributetothis. In addition, higher capacity utilization of our Brazilian steel mill duetothe slab supply contractandstrongerpenetrationoftheslabmarketsinSouthandNorthAmericawillhaveapositiveimpact.Weexpect furtherpositiveeffectsfromreducedexchangeraterisksduetoincreasingslabsuppliestotheBrazilianmarket,andfrom the use of input tax credits. At the same time a weaker Brazilian real should aid the competitiveness and business performanceofThyssenKruppCSA.

Againstthebackgroundofthepartialsaleofthebusinessarea,withtheBraziliansteelmillremainingpartoftheGroup,the SteelAmericasbusinessareawasreclassifiedfromdiscontinuedoperationstocontinuingoperationsunderIFRSattheend ofthe reporting year; within Steel Americas, ThyssenKrupp Steel USA is reported as a disposal group.More details are providedinNote03.

CulturalchangeandperformanceorientationstrengthenStrategicWayForward

Alongside continuous portfolio optimization, cultural change and performance orientation are key pillars of our Strategic Way Forward. Our aim is to change our corporate culture and the way we work together and significantly improve the Group's operating performance. The focus is on achieving operating excellence and generating cash in each area of businessandeachoperatingunit.ThepillarsofournewcorporatecultureareGroupwidecooperation,astrongerfocuson customersandperformance,clearlydefinedprocesses,andgreatertransparency,openness,honestyandmutual respect. Theframeworkforthis is our mission statement. As a kind of "corporate constitution" it creates a common rooffor all employees in operating businesses, corporatefunctions and regions. In addition 1,500managers have attended change workshopstodevelopajointunderstandingofcooperationandleadership.Andforthefirsttime,ourimportantgroundrules and principles have been brought together in a code of conduct, which sets standards for ourselves and represents a promisetoourbusinesspartnersandthepublic.

ACTcreatesnewGroupleadershipstructurewithcompetitivecosts

Under the corporate initiative ACT 8"Achieve Change@ThyssenKrupp"9 ThyssenKrupp is optimizing its leadership and businessstructureandassociatedprocesses.ACTisthereforesupportingourculturalchangeandperformanceorientation. The aim is to change our understanding of leadership and our corporate culture to achieve greater cooperation and connectedness,andtoimproveperformanceandefficiencyandthusprofitabilitythroughouttheGroup.Thefunctionsand structure of the three-man Executive Board have been streamlined and aligned towards functional leadership of the operatingbusinesses:ThebusinessareaboardmembersreportinlinewiththeirfunctiondirectlytotheCEO,CFOorCHRO ofThyssenKruppAG.ThispermitsmoredirectcooperationbetweentheoperatingbusinessesandGroupmanagementand amoreefficientflowofinformation.Thecorporatefunctionsandcorporateserviceunitshavebeenreducedinnumberfrom 26to17andreorganized.Eachcorporatefunctionbearsworldwideresponsibilityforstandardsandprocesses.Thenumber of business area boardmembers has been almost halvedfrom 32to 18;morethan 70% ofthe remainingmanagement positions have been newlyfilled. The reorganization of our shared services operationswill enable usto utilize synergies worldwide.Accounting,HR,IT and realestateservices areto be reorganized on a cross-Group basis.A detailed analysis carriedoutunderACThasidentifiedtotalsavingsandoptimizationpotentialofaround€250millioninconnectionwiththe newstructuresandprocessesintheGroup.Mostoftheeffectsaretoberealizedbytheendoffiscal2014/2015.Overallthe numberofemployeesinadministrativefunctionsintheGroupworldwideistobereducedbyaround3,000fromitscurrent levelofroughly15,000.

Stronger integration of our global activities is also aided bythe new organizational structure. Clear responsibilities have beendefinedworldwideforcooperationbetweenbusinessareas,corporatefunctionsandregions,andprocesseshavebeen harmonized.Thesethreedimensionswillbemorecloselyconnectedinthefuture.Globaloperatingresponsibilitywillremain withthe business areas, butthe regionswill be involvedmorestrongly.Intheforeignmarkets our Groupcompanieswill operatewithacommonmarketidentityandefficientstructures.Thiswillenableustostrengthenourmarketpresenceand better exploit opportunities particularly onthe growthmarkets. Regional headquarters are currently being established in Brazil, China, India and the Asia-Pacific region. The North American headquarters started work at the beginning of the reportingyear.

Corporate headquarters andthe business areamanagements have beenworking inthe newstructuresinceOctober 01, 2013. The regions, individual business units and shared services will follow. In addition, the Group's structure will be routinely reviewedinthefutureaspartoftheannualstrategyprocessinordertoensureitiscontinuouslyenhancedand adaptedinlinewithchangingconditions.AspartoftheincreasingintegrationandharmonizationoftheGroup,thenumber ofindependentlegalentitieshasbeenreducedfromaround830to630;afurtherreductiontolessthan400willtakeplace insubsequentsteps.

Corporateprogramimpactmakinggoodprogress

ThecorporateprogramimpactissupportingtheGroup'sStrategicWayForward.Itbringstogethervariouscomplementary initiativesandmeasurestostrengthenourfocusonperformance.

The"impact2015"initiative,whichaimstoachieveacumulative positiveEBITeffect of€2billionfromsustainablecostcuttingmeasuresbytheendoffiscal2014/2015,playsanimportantpartinthis.Allbusinessareas,regionsandselected functionshavemadeaclearcommitmenttoreachingthistarget.ForthereportingyearwehadtargetedasustainableEBIT contributionfromsavingsmeasures of €500millionGroupwide.Weexceededthistarget, achieving around €600million. Withthere-inclusionofThyssenKruppCSA,wehaveraisedouroveralltargetto€2.3billion.

Importantcontributionstoourimpacttargetof€2.3billionbytheendoffiscal2014/2015willbedeliveredinparticularby the synergize+ initiative, a program aimed at optimizing our purchasing processes. All business areaswill have specific programstohelpachieve oursavingstargetfortheGroup,suchasthe"Best-in-ClassReloaded"projectatSteelEurope withasavingstargetofmorethen€500million.

The goal of the synergize+ program is to sustainably reduce our materials costs by managing and consolidating our purchases centrally. A structured and strategic approach in all material areas andthe use of professional methods and modern tools for purchasing and supply chain management will ensure savings opportunities are realized. Closer cooperation across businesses, functions and regions will also help cement the new structures in our purchasing organization.Inthe reportingyearwealreadymanagedtoconsolidate40%ofourpurchasesandarelookingtoincrease thisratefurthertoasmuchas90%inthenexttwofiscalyears.

The aim of "Best-in-Class Reloaded" is to improve the position of the Group's European steel operations in a difficult competitiveenvironmentandachievetheearnings,cashflow,valueaddedandcompetitiveprofiledemandedofallareasof theGroupunderthestrategicdevelopmentprogram.Aspartofthis,SteelEurope'sworkforceistobereducedinasocially acceptableway bymorethan 2,000employees. Toconcretizethe personnelmeasures,the ExecutiveBoard andGeneral WorksCouncilofThyssenKruppSteelEuropeAGnegotiatedareconciliationofinterests,thebasisforwhichwasconfirmed inSeptember2013bythecollectivebargainingcommitteeoftradeunionIGMetall.InadditionSteelEuropehasreorganized itsentireleadershipstructureandreducedthenumberofcorporatefunctionsfrom28to23.Itisalsointendedtosellthe grain-oriented electrical steel business with plants in Gelsenkirchen/Germany, and Isbergues/France, as well as the electrical steel operation in Nashik/India, as part of a best-owner solution. This could reducetheworkforce by afurther 1,800employees.

In all our businesses, our goal is to differentiate ourselves from our competitors through our engineering expertise to achieve leading market positions and generate strong profits. To support our performance orientation we once again conductedbenchmarkingprojectsinnumerousbusinessesinthereportingyear.Thesestructuredcomparisonsenableusto systematically pinpoint gaps with our competitors and identify and implement measures to enhance our business performance. A number of cross-cutting initiativesto improve systems and processes are also under way. For example, several projects have been launched to harmonize our IT infrastructure and reporting processes in order to make managementoftheGroupmoreefficientandtransparent.

Investmentingrowthareasandinnovation

As part of our strategic push in the coming years we want to expand both in the emerging growth regions and in the industrialized countries. Further stabilizing our finances and significantly reducing ourtemporarily increased gearing are prerequisites for this. Through the structural and operating improvements we have already initiated we will return to sustainablypositivenetearningsandfreecashflowsandsostrengthenourtotalequityandreduceournetfinancialdebt.

Despitethecurrentfinancialconstraintswemadeanumberofselectiveacquisitionsinthe2012/2013fiscalyear:

• TheElevatorTechnologybusinessareastrengtheneditsbusinessinEuropeandtheUSAthroughvariousacquisitions.In EuropeweacquiredtheoperationsoftheEggertgroupand100%ofthesharesinMIEAcensorieS.r.l.inBrescia/Italy.In theUSAwe bought100% ofEdmondsElevatorInc.inCleveland/Ohio,andthe business operationsofAMCOElevator Inc.inIndianapolis/Indiana.
• TheIndustrialSolutionsbusinessareaacquiredtheAustralianengineeringfirmAustralianMarineTechnologiesPtyLtd toexpanditspresenceinthenavalshipbuildingsectorinAustralia,NewZealandandSoutheastAsia.
• The Materials Services business area significantly expanded its raw material trading business in North and South AmericaaswellasitsproductportfoliowiththeacquisitionofthebusinessoperationsofBenwellMetalsLLC,NewYork, USAinJuly2013.InthesamemonthwealsoacquiredthebusinessoperationsofTheWaterjetGroupinDarton,South Yorkshire/UK,aleadingsuppliertotheBritishaerospaceindustry.

InadditionweinvestedparticularlyinorganicgrowthseeInvestmentsinthesection"Groupreview"onpages43-44and increased our research and development spending to €647 million see Innovations in the section "Non-financial performanceindicators"onpages89-91:

• TheComponentsTechnologybusinessareaisexpandingitspresenceinEuropeandaboveallinthegrowthregionsof Brazil, China, India and the NAFTA region. For example, a new truck crankshaft factory was officially opened in the ChinesecityofNanjinginApril2013.
• June2013sawtheopeningoftheTechCenterCarbonCompositesandtheproductionfacilityofThyssenKruppCarbon ComponentsinDresden.OuractivitiesincarbonfiberreinforcedplasticsCFRParenowconcentratedthere.
• InJuly2013weinauguratedEurope'sfirstmulti-purposefermentationplantforthecontinuousproductionofbio-based chemicalsinLeuna/Germany.Amongotherthings,thesebiochemicalsareusedasstartingmaterialsforbiodegradable plastics.
• Inaddition,wearecollaboratingwithBASFandLindeonaresearchprojectaimedatdevelopinganewprocesstoutilize carbondioxideasa rawmaterial–anothertechnologywithpositiveimplicationsforclimateprotectionandsignificant marketpotential.

InNovember2013,ThyssenKruppIndustrialSolutionsagreedtosetupajointventurewithIndustrieDeNora,asupplierof electrochemicaltechnologies. Combiningtheirengineering, procurement andconstruction activitiesforelectrolysis plants willenablethetwo partnerstoexpandtheirtechnological platforms,moveclosertocustomers and increasetheir global presence.Theagreementissubjecttoapprovalbythesupervisorybodiesandtherelevantantitrustauthorities.

Focusongovernanceandcompliance

The new Supervisory Board Chairman Prof. Dr. Ulrich Lehner has selected corporate governance and compliance as key areas of his work. Dr. Gerhard Cromme and Dr. Kersten v. Schenck, both members delegated by the Alfried Krupp von BohlenundHalbachFoundation,lefttheSupervisoryBoard.Theshareholder representativesontheSupervisoryBoardof ThyssenKrupp AG accepted a proposal by the nomination committee and recommended Carsten Spohr and Dr. Lothar SteinebachasnewSupervisoryBoardmembers.BothweredelegatedtotheSupervisoryBoardbytheFoundation;theyare notmembersoftheFoundation'sboardoftrustees.

Complianceeffortsfurtherintensified

AgainstthebackgroundofrepeatedcomplianceviolationsandthesuspicionofpricefixingbyThyssenKruppSteelEurope raised by the Federal Cartel Office at the end of February 2013, the Executive Board of ThyssenKrupp AG decided to intensifytheGroup'scomplianceeffortsstillfurther,alsowithsupportfromexternallawfirms.

Aswell as establishing an ombudsman,the Company carried out an amnesty programfrom April 15to June 15, 2013. ThyssenKrupppromisedemployeeswhodisclosedcompliancemattersvoluntarilyandfullyunderthisprogramthatitwould notassert/enforce damageclaimsagainstthemandthatitwould notterminatetheiremployment. Theamnestyprogram ledto morethantwenty leads. However, no serious or structural compliance infringementswere identified. The relevant information received under the amnesty program related mainly to individual misconduct in customer and supplier relationshipsinGermanyandabroad.Thisconductwasstoppedfollowinginternalmeasures.Theamnestyprogramdidnot produceanyleadsregardingtheongoinginvestigationsbytheFederalCartelOfficeintopossiblepricefixinginthedelivery of certain steel productstothe German automotive industry and its suppliers. Acting on an anonymoustip,the Federal CartelOfficeamongotherthingssearchedthebusinesspremisesofThyssenKruppSteelEuropeAGattheendofFebruary 2013.OurinternalinvestigationslaunchedinresponsetotheinvestigationsbytheFederalCartelOfficeareatanadvanced stagebutnotyetcompleted.Basedonthefactscurrentlyknowntous,significantadverseconsequenceswithregardtothe Group'sasset,financialandearningssituationcannotberuledout.

InJuly2013ThyssenKruppagreedwithDeutscheSchutzvereinigungfürWertpapierbesitze.V.andtheshareholderChristian Strenger,whosemotionsforaspecialauditwere rejectedbytheAnnualGeneralMeetinginJanuary2013,tocarryouta voluntaryspecialaudit.Thespecialauditcomprisedaforward-lookingsystemaudit.Amongotherthingstheauditorswere toexaminethestructureoftheinternalcontrolsystemforitsappropriatenessinpreventingcomplianceinfringementsinthe future,andtheprocessofinvestmentcontrolforfuturelargeinvestmentprojects.Takingintoaccountthedynamicchange processtakingplaceatThyssenKrupp,thereportbytheauditorsconcludesthatthesystemsandprocessesexaminedhave been intensively enhanced andthatthe concepts and plannedmeasures are constructive. The auditors confirmthatthe further development in particular of the compliance-relevant internal control system is well advanced, and find the Compliancefunctiontobeprofessionallyorganizedandappropriatelystaffed.ReportingtotheSupervisoryBoardisseenas appropriate.Theauditorsthereforeendorsetheimplementationoftheexistingconceptsandtheplannedmeasuresinthe areasaudited,andhavesubmittedproposalsforfurtherimprovementwhichinparthavealreadybeentakenintoaccount. ThyssenKrupp will make the special audit report available to all shareholders from the convening of the 2014 Annual GeneralMeeting.

Value-basedmanagement

ThyssenKruppusesavalue-basedmanagementsystemtomanagetheperformanceoftheGroup.Aninformationbrochure onthisisavailableonourwebsiteunderInvestorRelations.

ThyssenKruppValueAddedasavalue-basedperformanceindicator

Alongside a strong cash flow focus and EBIT/adjusted EBIT as well as the corresponding returns on sales and capital, ThyssenKrupp Value Added 8TKVA9 forms the basis for management processes and decision-making at strategic and operating level, e.g. in investment and portfolio decisions.We use TKVAfor settingtargets,measuring performance and determiningcompensation.

TKVAmeasuresthevaluecreatedinaperiodatalllevelsoftheGroup.Itiscalculatedasearningsbeforeinterestandtaxes 8EBIT9minusthecostofcapitalemployedinthebusiness.Toobtainthecostofcapital,capitalemployedismultipliedbythe weightedaveragecostofcapital8WACC9,whichcomprisesequity,debtandtheinterestrateforpensionprovisions.

MoreinformationonthedevelopmentofTKVAinthereportingyearcanbefoundinthesection"Groupreview"onpage42.

OperatingperformanceindicatoradjustedEBIT

We also use adjusted EBIT to manage the performance of our operations. As EBIT also has a major impact on TKVA, operationalmanagementandvaluemanagementarecloselyinterlinked.

EBIT contains only components of financial income/expense that are operational in nature. These include income and expensefrominvestments.Financing income/expenseisgenerallynot operationalin nature.Also,the receipt ofadvance payments,particularlyinthebusinessareaswithlong-termconstructioncontracts,isanintegralpartof riskmanagement andthus of operating business. Totake appropriate account ofthese advance payments, andthe interest andfinancing effectsattainablewiththem,inourvaluemanagement,theEBIToftherelevantbusinessareasisincreasedbyanimputed earningscontribution,whichistheneliminatedagainintheconsolidation.

FollowingthedisposalofStainlessGlobal,theGroupholdsafinancialinterestof29.9%inOutokumpuwhichisaccounted forbytheequitymethod.Theshareholdingisstrategicallyandoperationallyunrelatedtothecontinuingoperationsandis thereforereportedunderCorporate;bydefinition,itsequityincomeisnotattributabletofinancialincomewithanoperating characterandisthereforenotincludedinEBIT.

TheGroup'sEBIT,theEBITofthebusinessareas and adjustmentsforspecial itemsareexplainedindetailinthesection "Groupreview"onpages40-42.Additionalinformationcanbefoundinthesection"Businessareareview"onpages49-56.

Groupreview

SummarizedassessmentbytheExecutiveBoard

The quality of our operating earnings,the significant improvement in cashflow and the progress made in reducing net financialdebtinfiscal2012/2013demonstrateclearlythatthemeasuresintroducedundertheStrategicWayForwardare takingeffect.Inagenerallydifficultbusinessclimatetheoperatingtargetsforefficiency,earningsandcashflowformulated atthebeginningofthefiscalyearforthecontinuingoperationsinthestructureoftheprioryearandtheinterimreporting– i.e.excludingtheStainlessGlobalandSteelAmericasbusinessareas–weremetinfullorexceeded;thenegativeimpacts stemmingfromStainlessGlobal and Steel Americasweresignificantly reduced.However, necessary impairmentcharges, provisions and restructuring measures in connection with the implementation of our integrated strategic development program had a significant impact on the Group's financial position in the past fiscal year. As a result the equity ratio declined,andtherewas atemporaryincreasein gearing.However,theGroup'sliquidityissecured;thetransformation of ThyssenKruppintoanefficient,profitableandvalue-creatingdiversifiedindustrialgroupistakingplaceonacurrentlystable financialbasis.

Operatingmilestonesachieved

AdjustedEBITfromcontinuingoperationsinthestructureoftheprioryear1withoutSteelAmericas2cameto€1,094million in 2012/2013, fully in line with the target for the fiscal year. Adjusted EBIT from continuing operations after the reclassification ofSteelAmericascameto€599million,upfromthecorrespondingprior-yearfigure of€399million.With the exception of Steel Americas, which reduced its losses significantly year-on-year but still posted a large loss of €14952millioninthe reportingyear,allbusinessareasmadepositivecontributionsbothonacumulativebasisforthefull yearandinallfourquarters.Thepositiveearningscontributionsofthecapitalgoodsoperationscameto€1,559million,far outweighingtheoverallnegativeearningscontributionsofthematerialsbusinessesof€11162millionduetothelossesof Steel Americas, as well as the negative adjusted EBIT of Corporate of €14252million and consolidation effects of €14192million.

Freecashflowfromcontinuingoperationsinthestructureoftheprioryear1withoutSteelAmericas2improvedsignificantly year-on-yearto€1,474million,increasedto€258millionbeforedivestmentsandwasthereforeabovetargetforthefiscal year.Freecashflowfromcontinuingoperationsafterthe reclassificationofSteelAmericasimprovedyear-on-yearbyover €2billionto€889million,andbeforedivestmentsincreasedbyaround€1.8billionto€13322million.Freecashflowofthe full Group – incl. Steel Americas and Stainless Global – improved by €2.3billion to €596million, making a substantial positivecontributiontoreducingnetfinancialdebtaftersixyearsofnegativevalues.Thesignificantimprovementsreflect oureffortstooptimizethestructureofourcashflowprofile.

OnthisbasisthenetfinancialdebtofthefullGroupdecreasedfrom€5.8billionto€5.0billion;intheprioryearwerecorded anincreaseofaround€2.2billion.

Balancesheetratiosimpactedbyspecialitems;liquiditysecured

In fiscal year 2012/2013 EBIT from continuing operations after the reclassification of Steel Americas was significantly impactedbynetspecialitemsof€1,194million.TheserelatedinlargeparttoSteelAmericasandresultedfromimpairment charges of €586million andthe changed valuation of a long-termfreight agreementwith an EBIT impact of €94million. Details onthe impairment charges andthe effects ofthe reclassification are provided in Note 03. Further special items related in particularto provisionsfor recognizable risks associatedwiththe railcartel case andto restructuringcharges. Overall,thespecialitemsanda€279millionwritedownofafinancialreceivablefromOutokumpuwerethemainreasonfor thenetlossof€1,536millionforthefullGroup1netlossattributabletoshareholdersofThyssenKruppAG:€1,396million2, forthedeclineintheequityratioto7.1%andforthetemporaryincreaseinthegearingratio1netdebttoequity2to200.6%. With cash, cash equivalents and committed undrawn credit linestotaling €7.3billion at September30, 2013 and with a balancedmaturitystructure,ThyssenKruppiswellfinanced.TheexpectedcashinflowsfromthesaleoftheThyssenKrupp SteelUSArollingandcoatingplantinCalvert/Alabamaandfurtherportfoliomeasuresaswellasfromoperatingactivities willsignificantlyreduceournetfinancialdebtandtemporarilyincreasedgearing;inaddition,rigorousimplementationofthe Strategic Way Forward and the efficiency measures under the impact program will significantly improve the Group's earningsandcompetitiveness.

KeyperformanceindicatorsforthefullGroupandthecontinuingoperationsafterthe reclassificationofSteelAmericasin thereportingyearversustheprioryearareshowninthefollowingtable:

TheGroupinfigures

		Group Total (incl. Steel Americas and Stainless Global)				Continuing Operations (after reclassification of Steel Americas) 1)
		2011/2012	2012/2013	Change	Change in %	2011/2012	2012/2013	Change	Change in %
Order intake	million $\epsilon$	48,742	39,774	(8,968)	(18)	43,842	38,636	(5,206)	(12)
Net sales total	million $\epsilon$	47,045	39,782	(7, 263)	(15)	41,536	38,559	(2, 977)	(7)
EBITDA	million $\epsilon$	1,544	1,222	(322)	(21)	1,723	1,163	(560)	(33)
EBIT	million $\epsilon$	(4,370)	(538)	3,832	88	(3,743)	(595)	3,148	84
EBIT margin	$\frac{0}{0}$	(9.3)	(1.4)	7.9	$\overline{\phantom{0}}$	(9.0)	(1.5)	7.5	$\overline{\phantom{m}}$
Adjusted EBIT	million $\epsilon$	318	531	213	67	399	599	200	50
Adjusted EBIT margin	$\frac{q}{q}$	0.7	1.3	0.6	$\overline{\phantom{000000000000000000000000000000000000$	1.0	1.6	0.6
EBT	million $\epsilon$	(5,067)	(1,590)	3,477	69	(4, 414)	(1,648)	2,766	63
Net income/(loss) / Income/(loss) (net of tax)	million $\epsilon$	(5,042)	(1, 536)	3,506	70	(4, 335)	(1,589)	2,746	63
attributable to ThyssenKrupp AG's shareholders 1)	million $\epsilon$	(4, 241)	(1,396)	2,845	67	(3, 541)	(1, 450)	2,091	59
Basic earnings per share 1)	€	(8.24)	(2.71)	5.53	67	(6.88)	(2.82)	4.06	59
Operating cash flows	million $\epsilon$	(386)	786	1,172	$+ +$	(290)	981	1,271	$^{++}$
Cash flows from disposals	million $\epsilon$	854	1,221	367	43	852	1,221	369	43
Cash flows for investments	million $\epsilon$	(2, 204)	(1, 411)	793	36	(1,800)	(1, 313)	487	27
Free cash flow	million $\epsilon$	(1,736)	596	2,332	$^{\rm ++}$	(1, 238)	889	2,127	$+ +$
Employees (September 30)		167,961	156,856	(11, 105)	(7)	156,115	156,856	741	$\mathbf{0}$
Germany		64,380	58,164	(6, 216)	(10)	58,447	58,164	(283)	0
Abroad		103,581	98,692	(4,889)	(5)	97,668	98,692	1,024	$\mathbf{1}$
Distribution	million $\epsilon$		$-2$
Dividend per share	€		$-2$
ROCE	$\frac{0}{0}$	(20.3)	(3.7)	16.6
ThyssenKrupp Value Added	million $\epsilon$	(6, 197)	(1, 852)	4,345	70
Net financial debt (September 30)	million $\epsilon$	5,800	5,038	(762)	(13)
Total equity (September 30)	million $\epsilon$	4,526	2,511	(2,015)	(45)
Gearing	$\frac{1}{2}$	128.1	200.6	72.5

1'Prior-yearfigureshavebeenadjusted. 2'proposaltotheAnnualGeneralMeeting

Businessperformance

Growthinelevatorsandplanttechnologyinadifficultenvironment

InacontinuingdifficulteconomicenvironmentThyssenKruppheldupwelloverallinfiscalyear2012/2013;keypillarswere thesolidpositionsatElevatorTechnologyandintheplanttechnologybusinessofIndustrialSolutions.

Order intake from continuing operations 1incl. Steel Americas2 came to €38.6billion, down 12% year-on-year. On a comparable basisthe decreasewould have been only8%. Thereweresolid gains of 6% intheelevator business,which improved year-on-year in all four quarters and achieved a new record overall, and in the plant technology business of IndustrialSolutions.ThenavalshipbuildingunitandhencetheIndustrialSolutionsbusinessareaasawholewasunableto repeat the high order intake of the prior year, which included several major contracts. At more than €18billion on September30,2013,ordersinhandatElevatorTechnologyandIndustrialSolutionswerevirtuallyunchangedfromthehigh level oftheprioryear.OrderintakeatComponents Technologywasdown overallyear-on-year dueto lower demand and disposals,buthigherinthe4thfiscalquarter.Lowerpricesweigheddownonthesteelandmaterialsbusinesses.

IncludingthediscontinuedStainlessGlobal,whichcontributedtoorderintakeuntilDecember28,2012,theGroup'sorder intakedroppedby18%to€39.8billion.

Orderintakebybusinessarea

million€	2011/2012	2012/2013	Change in%
ComponentsTechnology	6,933	5,715	%18'
ElevatorTechnology	6,149	6,520	6
IndustrialSolutions	7,631	5,283	%31'
MaterialsServices	13,146	11,663	%11'
SteelEurope	10,455	9,515	%9'
SteelAmericas	2,081	2,056	%1'
Corporate	158	190	20
Orderintakeofthebusinessareas	46,553	40,942	%12'
Consolidation	%2,711'	%2,306'	—
Orderintakeofthecontinuingoperations	43,842	38,636	%12'
StainlessGlobal	5,611	1,319	%76'
Consolidation	%711'	%181'	—
OrderintakeoftheGroup	48,742	39,774	%18'

Sales from continuing operations 1incl. Steel Americas2 decreased by 7% to €38.6billion. On a comparable basis sales decreasedbyonly3%.Theeffectsofdisposalsanddeclinesinthecomponentsandmaterialsbusinesseswerepartlyoffset byhighersalesintheelevator,planttechnologyandshipbuildingbusinesses.ElevatorTechnologysetanewsalesrecord.

GroupsalesincludingthediscontinuedStainlessGlobalweredown15%year-on-yearat€39.8billion.

Salesbybusinessarea

million€	2011/2012	2012/2013	Change in%
ComponentsTechnology	7,011	5,712	%19'
ElevatorTechnology	5,705	6,155	8
IndustrialSolutions	5,257	5,641	7
MaterialsServices	13,165	11,700	%11'
SteelEurope	10,992	9,620	%12'
SteelAmericas	2,014	1,867	%7'
Corporate	158	190	20
Salesofthebusinessareas	44,302	40,885	%8'
Consolidation	%2,766'	%2,326'	—
Salesofthecontinuingoperations	41,536	38,559	%7'
StainlessGlobal	6,346	1,402	%78'
Consolidation	%837'	%179'	—
SalesoftheGroup	47,045	39,782	%15'

AdjustedEBITimprovedyear-on-year;impactmeasurestakingeffect

In a generally difficult business environment we improved our adjusted EBIT from continuing operations 1incl. Steel Americas2 year-on-year by €200million to €599million. A major factor in this were the extensive measures under the corporateprogramimpact.WiththeexceptionofSteelAmericas,whichreduceditslossessignificantlyyear-on-yearbutstill postedalargelossof€495million,allbusinessareasmadepositivecontributionsbothonacumulativebasisforthefull yearandinallfourquarters.

The positive earnings contributions of the capital goods operations came to €1,559million, far outweighing the overall negativeearningscontributionsofthematerialsbusinessesof€11162millionduetothelossesofSteelAmericas,aswellas thenegativeadjustedEBITofCorporateof€14252millionandconsolidationeffectsof€14192million.

Inthecapitalgoodsoperations,earningsatComponentsTechnologyweredownyear-on-yearduetodisposalsandlower demand;start-upcostsfornewplantsandproductsalsohadaneffect.ElevatorTechnologyimproveditsmarginyear-onyearinallfourquartersandincreaseditsadjustedEBITtoanewrecordlevel;adjustedEBITmarginimprovedyear-on-year from 10.3%to 11.0%. Asexpected, profits atIndustrial Solutionswere roughly levelwiththe prior year,which benefited fromthereversalofproject-specificriskprovisionsatMarineSystems.Extensiveperformancemeasuresundertheimpact programinthematerialsoperationslimitedtheprice-relatedearningsdeclinesatMaterialsServicesandSteelEuropeand supported the significant reduction of the losses at Steel Americas. With once again positive adjusted EBIT in all four quarters, Materials Services and Steel Europe demonstrated clearlythe quality oftheir business models, also compared withinternationalcompetitors.

IncludingthediscontinuedStainlessGlobaltheGroup'sadjustedEBITincreasedfrom€318millionto€531million.

million€	2011/2012	2012/2013	Change in%
ComponentsTechnology	453	244	%46'
ElevatorTechnology	587	675	15
IndustrialSolutions	689	640	%7'
MaterialsServices	311	236	%24'
SteelEurope	247	143	%42'
SteelAmericas	%1,010'	%495'	51
Corporate	%487'	%425'	13
AdjustedEBITofthebusinessareas	790	1,018	29
Consolidation	%391'	%419'	—
AdjustedEBITofthecontinuingoperations	399	599	50
StainlessGlobal	%80'	%68'	15
Consolidation	%1'	0	—
AdjustedEBIToftheGroup	318	531	67

AdjustedEBITbybusinessarea

Earningsimpactedbyspecialitems

EBITfrom continuing operations 1incl. Steel Americas2 improved year-on-yearfrom €13,7432millionto€15952million but remainedclearlynegative.Asintheprioryear,themainreasonforthiswasnegativespecialitems.Thesedecreasedyearon-year from €4,142million to €1,194million and mainly included necessary impairment charges, provisions for recognizablerisksassociatedwiththerailcartelcase,andrestructuringchargesinconnectionwiththeimplementationof ourStrategicWayForward.

At Components Technology net special items of €71million were recognized mainly for restructuring and impairment chargesinconnectionwithstructuraloptimizationsintheconstructionequipmentbusinessatBercoandinthewindturbine componentbusiness.ElevatorTechnologycarriedoutfurtherrestructuringsatitsEuropeanoperationsinthereportingyear; these were responsible for special items of €64million. Industrial Solutions recorded net positive special items of €18million, mainly in its shipbuilding operations. Materials Services recorded special items of €242million, including provisions for recognizable risks from compensation claims and a fine imposed in connection with the rail cartel. Steel Europerecognizedspecialitemsof€81million;negativeitems–mainlyprovisionsinconnectionwiththe"BestinClass– reloaded" program – were only partly offset by a disposal gain on the sale of the tailored blanks operations. At Steel Americas negative special items came to €685million; these were mainly impairment charges on property, plant and equipmentaswellasEBITimpactsduetothechangedvaluationofalong-termfreightagreement.EarningsatCorporate were impacted by special items of €75million, primarily for restructuring provisions in connection with the corporate initiativeACT.

Specialitemsfromcontinuingoperations

million€	2011/2012	2012/2013	Change in%
EBIT	%3,743'	%595'	84
+/-Disposallosses/gains	%356'	%118'	67
+Restructuringexpense	92	284	209
+Impairment	4,091	679	%83'
+Othernon-operatingexpense	353	378	7
-Othernon-operatingincome	%38'	%29'	24
AdjustedEBIT	399	599	50

Includingthe discontinued StainlessGlobaltheGroup's EBITcameto €15382million.It includes positivespecial items at StainlessGlobalof€125million,mainlyduetotheprovisionaldisposalgain.

Earningsfromcontinuingoperations 1incl.SteelAmericas2netoftax remainednegativeat€11,5892million,mainlydueto special items and the writedown of a financial receivable from Outokumpu. Earnings net of tax attributable to the shareholdersofThyssenKruppAGamountedto€11,4502million;earningspersharecameto€12.822.Thenetlossforthe full Group improved year-on-yearfrom €5,042millionto €1,536million mainly duetothe overall declines in impairment charges at Steel Americas and Stainless Global. The net loss attributable to the shareholders of ThyssenKruppAG decreasedyear-on-yearfrom€4,241millionto€1,396million;earningspersharecameto€12.712.

ThyssenKruppValueAdded

In the past fiscal year the Group generated ThyssenKrupp Value Added 1TKVA2 of €11,8522million, compared with €16,1972millionayearearlier.Despitedeclininginterestratesweincreasedtheimputedcostofequity,soWACC2012/2013 fortheGroupis0.5percentagepointshigher.Similarlywereviewedthebusinessarea-specificcostofcapitalandadjusted itslightlyinsomecases.DetailsonTKVAanditsmaincomponentsareshowninthefollowingtable:

	2011/2012				2012/2013
	EBIT million€\$	Average capital employed million€\$	WACC %\$	TKVA million€\$	EBIT million€\$	Average capital employed million€\$	WACC %\$	TKVA million€\$	Change TKVA million€\$
Group	%4,370'	21,488	8.5	%6,197'	%538'	14,594	9.0	%1,852'	4,345
Thereof:
ComponentsTechnology	681	3,112	9.0	401	173	2,980	9.0	%96'	%497'
ElevatorTechnology	387	2,427	8.0	193	611	2,353	8.0	423	230
IndustrialSolutions	506	1,469	9.0	374	658	1,472	9.0	525	151
MaterialsServices	127	2,945	8.5	%123'	%6'	2,808	9.0	%258'	%135'
SteelEurope	188	5,773	9.0	%332'	62	5,198	9.5	%432'	%100'
SteelAmericas	%4,747'	6,802	9.0	%5,359'	%1,180'	3,202	10.0	%1,500'	3,859
StainlessGlobal	%626'	2,523	9.0	%853'	57	996	9.5	%38'	815

ThyssenKruppValueAdded TKVA\$bybusinessarea

MoreinformationontheimportanceofTKVAandEBITforbusinessmanagementiscontainedinthesection"Value-based management"onpage37.

Capitalexpenditures

Allocationofcapitalimproved,shareofcapitalgoodsoperationsinspendingmixstrengthened

Inthe reporting year ThyssenKrupp invested atotal of €1,411million, 36% or around €800million lessthan inthe prior year. More than 80% of the decrease was accounted for by the discontinued operation Stainless Global and by Steel Americas:Withthecompletionofthedisposalattheendofthe1stquarter2012/2013capitalspendingatStainlessGlobal wasnolongerrecognized;itthereforedeclinedyear-on-yearbyaround€300million.Inaddition,capitalspendingatSteel Americasdecreasedfurther,fallingbyaround€350millionto€170million.Around€600millionwasinvestedinourcapital goodsoperations,particularlyComponentsTechnology.

Investmentsbybusinessarea

million€*	2011/2012	2012/2013	Change in%
ComponentsTechnology	420	389	%7'
ElevatorTechnology	178	143	%20'
IndustrialSolutions	87	63	%28'
MaterialsServices	91	76	%16'
SteelEurope	505	408	%19'
SteelAmericas	515	170	%67'
Corporate/Consolidation	4	64	—
Investmentsofthecontinuingoperations	1,800	1,313	%27'
StainlessGlobal/Consolidation	404	98	—
InvestmentsoftheGroup	2,204	1,411	%36'

*includingcashandcashequivalentsacquiredfromacquisitionsofconsolidatedcompanies

€75millionwasusedfortheacquisitionofbusinesses,shareholdingsandotherfinancialassets.Themainacquisitionsare presentedinthesection"TheGroup'sStrategicWayForward"onpages35-36.

Capitalexpendituresinthecontinuingbusinessareas

Expenditure for property, plant and equipment and intangible assets in the continuing operations 1incl. Steel Americas2 cameto€1,236millionandwas€132millionhigherthandepreciationat€1,104million.

Components Technology – Components Technology spent atotal of €389million on property, plant and equipment and intangibleassets;depreciationcameto€264million.ThemajorityofthebudgetwentonthegrowthregionsBICandNAFTA; for examplewe opened a newtruck crankshaftfactory inthe Chinesemetropolis of Nanjing inthe 3rdquarter. We also invested substantially in Germany – among otherthings inthe development and production of electromagnetic steering gearsandinthefurtherdevelopmentofcamshafttechnology.Inadditionweopenedanewfactorytoproducecylinderhead covers.In our processthecamshafts and othercomponents are integrated intheclosedcylinder headcoversowecan supply our customerswith a complete valvetrainmodule ratherthan individual drive components. This results inweight savings as well as faster and more efficient engine assembly at the car manufacturer's plant. Twofurther factories are underconstructioninChinaandBrazil.

Elevator Technology – In addition to continuous acquisitions of established small and midsize elevator companies in Germanyandworldwide,ElevatorTechnologyspent€105milliononproperty,plantandequipmentandintangibleassetsin thereportingperiod;depreciationcameto€80million.ElevatorTechnologyfocuseditsinvestmentonincreasingefficiency and on its growth strategy centered on China. In Germanythe Neuhausen site is being expanded into a state-of-the-art technologyparkwithsignificantimprovementstodeliveryperformanceandproductionandmaterialflows.

Industrial Solutions – The business Area spent €63million on property, plant and equipment and intangible assets to strengthen its technology portfolio and expand its regional market positions. Further investment was made in service centersinSouthAmericatowidenourservicenetworkandincreaseservicesales.AspartofitsgrowthstrategyIndustrial Solutions also invested in industrial biotechnology and opened Europe's first multi-purpose fermentation plant for the continuous production of bio-based chemicals inthe reporting year,further strengthening its research and development efforts inthe area of biochemicals based on renewable rawmaterials.Among otherthingsthesechemicals are used as startingmaterialsforbiodegradableplasticssuchaspolylacticacid1PLA2andpolybutylenesuccinate1PBS2,whichinturn areidealforprocessingintoeco-friendlypackagingmaterials,filmsandtextiles.Depreciationcameto€60million.

Materials Services – Spending by Materials Services on property, plant and equipment and intangible assets came to €77million,withdepreciationat€90million.Theinvestmentwasusedtomodernizeandexpandplantandequipmentinour materialsbusinessaswellastostrengthenthegrowingaerospacebusiness,includingtheestablishmentofnewsites.

SteelEurope– Spendingonproperty,plantandequipmentandintangibleassetsatSteelEuropecameto€372millionin the reporting year; depreciation was €441million. The focus of investment with two modernization shutdowns was the extensive upgrade of hot strip mill1 in Duisburg-Bruckhausen to secure the technological basis for our differentiation strategy.Atthesametimeaconverterwas replacedatoxygensteelmakingplant1inDuisburg-Bruckhausen.Inaddition, substantialfundswereinvestedinreplacingthedriveequipmentoncontinuousfurnace3atourpackagingsteelspecialist RasselsteininAndernach,intheextensivemodernizationofthemedium-widestripmillofourhot-rolledstripspecialistin Hagen-Hohenlimburgandinrawmaterialslogistics.

SteelAmericas– SpendingbytheSteelAmericasbusinessareaonproperty,plantandequipmentandintangibleassets cameto€170millioninthereportingyearcomparedwith€515millionayearearlier.InvestmentintheBraziliansteelmill centeredonenvironmentalmeasuresandrepairandoptimizationworkonthecokeplant.ThefocusintheUSAwasonfinal investmentsinproductionfacilitiesandinfrastructure. Depreciationcameto€136million.

Corporate – AtCorporate, investment in property, plant andequipment and intangible assets cameto €60million inthe reportingyearandmainlyincludedspendingonITinfrastructureanddataandprocessharmonization.Wealsoinvestedin consolidating our activities in carbon fiber reinforced plastic 1CFRP2 and in June 2013 opened the TechCenter Carbon CompositesandtheproductionsiteofThyssenKruppCarbonComponents.

Capitalexpendituresinthediscontinuedoperations

StainlessGlobal– Uptothecompletionofthedisposalattheendofthe1stquarter2012/2013thediscontinuedbusiness areaspent€99milliononproperty,plantandequipmentandintangibleassets;duetotheclassificationasadiscontinued operationdepreciation of€52millionwasnot recognized.Onefocus ofthespendingwasthefurtherdevelopmentofthe newproductionsiteinCalvert,USA.

Cashflowandnetfinancialdebt

Wemadeclearprogresswithourgoalofimprovingthecashflowprofileandreducingnetfinancialdebt.Thefreecashflow of the full Group increased year-on-year by €2.3billion to €596million in 2012/2013; free cash flow from continuing operations1incl.SteelAmericas2improvedbyover€2billionto€889million;beforedisposalsitcameto€13322million.This year-on-yearimprovementofaround€1.8billionreflectsoureffortstooptimizethestructureofourcashflowprofile.

There was a cash inflow of €1,221millionfrom divestments – mainlythe sale ofthe stainless steel operations – while investment in the Group came to €1,411million. Operating cash flows came to €786million. The impact of individual factorsonournetfinancialdebtinthereportingyearisshowninthefollowinggraphic:

assetsintendedforsaleofthedisposalgroupsarealsotakenintoaccount.

Netfinancialdebtiscalculatedasthedifferencebetweenthecashandcashequivalentsshowninthestatementoffinancial position plus current available-for-sale financial assets, and non-current and current financial debt; the corresponding

The full Group's net financial debt at September30, 2013 stood at €5,038million, down significantly from the level at September30,20121€5,800million2.Takingintoaccountcash,cashequivalents,committedundrawncreditlinesandthe balancedmaturitystructure,ThyssenKruppissolidlyfinanced.

ThyssenKruppAG has agreements with banks which contain certain covenants in the event that the gearing ratio 1net financialdebttoequity2intheconsolidatedfinancialstatementsexceeds150%attheclosingdate1September302.

AtSeptember30,2013thegearingratiowastemporarilyincreased,primarilyasaresultofimpairmentcharges,andstood at200.6%.Thegearinglimitof150%agreedinsomecreditagreementswasthereforeexceededatSeptember30,2013. However,agreementshadpreviouslybeenreachedwiththefinancialpartnersinvolvedtowaivethegearingcovenanttestat September30, 2013 sothesefinancial instruments remain available after September30, 2013 despitethe gearing limit beingtemporarilyexceeded.

At September30, 2013the Group's available liquidity amountedto €7.3billion, consisting of €3.8billion cash and cash equivalents and €3.5billion committed undrawn credit lines. The available liquidity offers enough scope to cover debt maturities.Thegrossfinancialliabilitiesrepayableinfiscalyear2013/2014amountto€1.9billion.

Bondissue

InFebruary2013ThyssenKruppAGissueda€1.25billion5½-yearbondunderits€10billiondebtissuanceprogram.With anorderbook of over€4billionthebondwasverywell received bythecapitalmarket.Inview ofthegood responsewe increasedthebondby€0.35billiontoatotalof€1.6billioninMarch2013.Itpaysacouponof4.0%p.a.atanissueprice of99.681%/100.625%.Theissuewastimedtobenefitfromtheadvantageousmarketclimateandextendedthematurity profileofourfinancialdebt.

Rating

Issuerratingssince2001

We have been rated by Moody's and Standard & Poor's since 2001 and by Fitch since 2003. In January 2013 Moody's loweredThyssenKrupp'sratingfromBaa3toBa1.AtS&PandMoody'sourratingisthereforebelowinvestmentgrade.Our rating at S&P has been below investment grade since November 2009; Fitch confirmed our investment grade rating in December2012withanegativeoutlook.Anegativeoutlookmeansthattheratingagencymonitorstheratingmoreclosely andthenreviewsit,normallywithinaperiodof12to18months.AsaresultofthedowngradingofourratingtheGroup's contractuallyfixedfinancingcosts,mainlyinconnectionwiththe2009/2014bond,haveincreasedbyalowtwo-digitmillion euroamountsinceJune2013.

	Long-term rating	Short-term rating	Outlook
Standard&Poor's	BB	B	negative
Moody's	Ba1	NotPrime	negative
Fitch	BBB-	F3	negative

Expecteddevelopments

Fiscalyear2013/2014

ThefollowingforecastrelatestothecontinuingoperationsoftheGroupafterthereclassificationofSteelAmericasincl.the disposalgroupThyssenKruppSteelUSA;notincludedarethesalesandearningseffectsfromtheplannedtransferofthe shares in the VDM and AST groups from Outokumpu to ThyssenKrupp in return for the transfer to Outokumpu of the financialreceivablecreatedinconnectionwiththesaleofInoxum.

Salesandearnings–Fromthepresentperspective,theGroup'sbusinessperformanceinthe2013/2014fiscalyearwillbe characterizedbyamoderaterecoveryoftheglobaleconomy.Theapparenttrends–theendoftheeconomicdownturnin theeurozoneandstabilizationofthepaceofgrowthoutsideEurope–cannotyetberegardedascertain.

Basedontheassumptionsof

• generallyslowgrowthinthecoremarketsforourmorecyclicalmaterialsandcomponentsbusinessesinthedeveloped worldregionsandcontinuinggrowthintheemergingeconomies
• nomajordislocationsontherawmaterialsmarkets
• visibilitynotextendingmuchbeyondaquarterforlargepartsofourmaterialsandcomponentsbusinessesinthecurrent economicenvironment

ourexpectationsforThyssenKruppinfiscal2013/2014areasfollows:

• TheGroup'ssalesbeforeportfolioadjustmentsareexpectedtogrowyear-on-yearsales2012/2013:€38.6billionbya midsingle-digitpercentagerate.
• Capitalgoodsbusinesses:ThehighorderbacklogsatElevatorTechnologyandIndustrialSolutionssecuretheexpected salesgrowthwellintothefiscalyear.AtComponentsTechnologythenewplantsinChinaandIndiawilldeliverincreasing salescontributions.
• Materials businesses: Selective growth initiatives at Materials Services are expectedto result in a slight increase in sales,whilesalesatSteelEuropewillbeslightlylowerduetoportfoliomeasures.AtSteelAmericas,weanticipatehigher salesasaresultofcontinuingtechnicaloptimizationandincreasingmarketpenetration.
• Adjusted EBIT for the Group before portfolio adjustments is expected to improve year-on-year adjusted EBIT 2012/2013: €599 million to around €1 billion. Apart from Steel Americas all business areas will make positive contributions.Asaresultofoperatingprogress,SteelAmericas'losswilldeclinefurther.Inaddition,theexpectedgrowth inourhighlyprofitablecapitalgoodsbusinessesandourGroupwideeffortstoenhanceperformanceundertheimpact program will contribute to improving the Group's earnings. Elevator Technology in particular will further improve its earningsandmargin.AnearningsimprovementislikewiseexpectedatIndustrialSolutions.Inourmaterialsbusinesses we expect Steel Europe – despite continuing strong competition –to deliver a higher earnings contribution due to efficiencygainsfromthe"Best-in-ClassReloaded"project.

Our goal in the subsequent years continues to be to strengthen our equity through a return to net profit; for fiscal 2013/2014,excludingearningseffectsfrom VDMandAST,weexpectasignificantimprovementtowards break-even.We will also work hard to improve cash generation from operating activities on a sustainable basis and further reduce net financialdebt.

Despitethetemporaryincreaseingearing,ourfinancingandliquiditywillremainonasecurebasisinfiscal2013/2014and able to cushion fluctuations resulting from sudden economic changes. The expected cash inflows from the sale of the ThyssenKrupp Steel USA rolling and coating plant in Calvert/Alabama and further portfolio measures as well as from operating activities will significantly reduce our net financial debt and temporarily increased gearing; in addition, the stringentimplementationofourStrategicWayForwardandtheefficiencymeasuresunderimpactwillsubstantiallyimprove theearningsandcompetitiveprofileoftheGroup.CapitalspendingintheGroupasawholeisexpectedtobeattheprioryearlevel.

Fiscalyear2014/2015

Inthe2014/2015fiscalyearwewillcontinuetoworkonthestructuralimprovementoftheGroupandrigorouslyimplement our integrated strategic development plan. This may include among other things targeted growth stimulus and further portfoliooptimization.Assumingtheglobaleconomycontinuesitsmoderate recovery,theeconomicdownturnintheeuro zone is over andthe pace of growth outsideGermanystabilizes,weexpect oursalesto increasefurther in linewiththe generalgrowthoftheeconomy.Risingsalesandstructuralimprovementsshouldhaveacorrespondinglypositiveimpacton earnings. In 2014/2015 we additionally expectfurther significant improvements onthe earnings side as a result ofthe corporate programs initiated, in particular "impact 2015", and the continuous stimulus to efficiency provided by benchmarking. We therefore also expect an improvement in the equity and financing situation in 2014/2015. More informationonourcorporateprogramscanbefoundinthesection"Profileandstrategy"onpages34-35.

Businessareareview

The Group's operations are organized in business areas. In a generally difficult business environment all continuing operationsgeneratedpositiveadjustedEBITbothonacumulativebasisoverthefiscalyearandineachquarter.Theonly exceptionwastheSteelAmericasbusinessarea,whichsignificantlyreduceditslossesyear-on-yearbutcontinuedtopost clearlynegativeearningsoverall.

ComponentsTechnology

ComponentsTechnologyinfigures

		2011/2012	2012/2013	Change in%
Orderintake	million€	6,933	5,715	"18\$
Sales	million€	7,011	5,712	"19\$
EBIT	million€	681	173	"75\$
EBITmargin	%	9.7	3.0	—
AdjustedEBIT	million€	453	244	"46\$
AdjustedEBITmargin	%	6.5	4.3	—
Employees"September30\$		28,011	27,737	"1\$

TheComponentsTechnologybusinessareasuppliesarangeofhigh-techcomponentsforgeneralengineering,construction equipment andwindturbines.Inthe autosector our activities arefocused oncrankshafts,camshafts,steeringsystems, dampers,springs,stabilizersandtheassemblyofaxlemodules.

Orderintakeandsalesdownduetostructuralreasonsandlowerdemand

AtComponentsTechnologythedisposalsoftheprioryear,mainlythesaleoftheUSfoundrygroupWaupaca,resultedina structurallylowervolumeofbusinessinthe2012/2013fiscalyear.Accordinglyorderintakewas18%loweryear-on-yearat €5.7billion. Excluding the disposals order intake was around 3% down from the year before. In the wind turbine components sector, business activity was weaker overall in the reporting year despite a slight upturn in the final two quarters. In addition, the uncertain investment climate in the construction and infrastructure sectors in western Europe resulted in lower ordersfor constructionequipmentcomponents. Therewas also noturnaround ontheUStruckmarket; ordersweredownsharplyagainsttheprioryear.Bycontrasttherewerepositive developments onthecarmarketsinthe USAandChina;continuousprogressisbeingmadewithournewplantsinChina.InwesternEuropedemandforcarand truck components remained subdued, but year-on-year gainswere achieved inthe premium car segment. Followingthe trendinorders,salesdeclinedsteeplyyear-on-yearparticularlyasaresultofthedisposals.Excludingthedisposals,sales werearound4%lowerat€5.7billion.

AdjustedEBITdownyear-on-year–restructuringmeasuresinitiatedunderimpactprogram

At €244million, adjusted EBIT was down from the comparable prior-year figure. Key factors were the absence of the operatingprofitsofWaupaca,theslowdowninthewesternEuropeanmarketforcarandtruckcomponents,continuingweak demandintheconstructionmachineryandinfrastructuresectors,andincreasingcompetitiveandpricepressureinthewind turbine sector. In additionthefigure contains startup costs for new plants, mainly in Asia and South America, and new products.Ontheotherhandtherewerepositiveeffectsonearningsfromtheimplementationoftherestructuringprogramat ThyssenKruppFedernundStabilisatoren.AdjustedEBITmarginat4.3%wasbelowtheprior-yearlevelof6.5%.

At €173million, EBIT at Components Technologywaslikewise down sharplyfromthe year-earlierfigure,which included high positive special items from the sale of Waupaca. In addition, asset impairment charges of €36million in the wind turbine component business and restructuring expenses of €35million in construction machinery components at Berco weighedonearnings.ArestructuringprogramwithextensivepersonnelmeasuresbecamenecessaryatBerco.Theresults achieved in negotiations with employee and government representatives are an important step on the path towards a radical reorganization and rapid restructuring of the company. This will create the basis to secure and increase the company'sprofitabilityandviabilityandsupportthedisposalprocess.

ElevatorTechnology

ElevatorTechnologyinfigures

		2011/2012	2012/2013	Change in%
Ordersinhand"September30\$	million€	3,588	3,586	0
Orderintake	million€	6,149	6,520	6
Sales	million€	5,705	6,155	8
EBIT	million€	387	611	58
EBITmargin	%	6.8	9.9	—
AdjustedEBIT	million€	587	675	15
AdjustedEBITmargin	%	10.3	11.0	—
Employees"September30\$		47,561	49,112	3

TheElevatorTechnologybusinessareasuppliespassengerandfreightelevators,escalatorsandmovingwalks,passenger boardingbridges,stairandplatformliftsaswellasservicefortheentireproductrange.Over900locationsworldwideform atight-knitsalesandservicenetworkthatkeepsusclosetocustomers.

Orderintakeandsalesreachnewrecordlevels

ElevatorTechnologycontinueditsrecord-breakingrunin2012/2013.Year-on-yearorderintakeincreasedbyaround6%to over€6.5billion.ThisgrowthmainlyreflectstheextremelypleasingperformanceofthenewinstallationsbusinessinChina. There were also in some cases significant improvements on the North and South American markets, with successful infrastructureprojectsontheBrazilianmarketplayingakeyrole.Bycomparison,orderintakeinEuropeshowedonlyweak growth. One exception was Turkey, where order intake increased sharply dueto our involvement in major infrastructure projects,e.g.MetroMarmaray.

The positivetrend in orderswasmirrored insales,which at €6.2billionwere 8% higher year-on-year.Servicesales also increasedworldwidethankstoinnovativeserviceprocessesandtheexpansionofourglobalnetworkofbranches.

FurtherprogresswasmadeontheconstructionofournewproductionsitesinAsia.Tostrengthenourabilitytoservethe newinstallationsbusinessinEurope,workbeganonthemodernizationandexpansionofourproductionsiteinNeuhausen undertheFit-for-Futureproject;heretooprogressisonschedule.

SignificantincreaseinadjustedEBIT–impactmeasurestakingeffect

Elevator Technology achieved adjusted EBIT of €675million, up 15%fromthe prior year.Adjusted EBITmargincameto 11.0%,comparedwith10.3%ayearearlier.Thisencouragingearningsandmargintrendwasduetotherestructuringsand performance measures initiated the year before, such as the consolidation of purchasing volumes and optimization of serviceprocesses.

ElevatorTechnologyalsoreportedasignificantincreaseinEBITto€611millionfrom€387millioninthepreviousyear.The prior-year earnings contained special items in the amount of €200million, mainly nonrecurring expenses for the site closuresontheUSmarketforaccessibilityproductsandfurtherrestructuringmeasures.Specialitemsinthereportingyear cameto€64millionandweremainlyduetofurtherrestructuringprogramsinEurope.

IndustrialSolutions

IndustrialSolutionsinfigures

			Change
	2011/2012	2012/2013	in%
million€	15,634	14,641	"6\$
million€	7,631	5,283	"31\$
million€	3,605	364	"90\$
million€	5,257	5,641	7
million€	1,188	1,334	12
million€	506	658	30
%	9.6	11.7	—
million€	689	640	"7\$
%	13.1	11.3	—
	18,111	18,841	4

*includingothershareholdingsandconsolidation

EffectiveJanuary01,2013theformerPlantTechnologyandMarineSystemsbusinessareaswerecombinedintothenew Industrial Solutions business area. Industrial Solutions comprises the operating units Process Technologies @UhdeA, ResourceTechnologies@Polysius/FördertechnikA,MarineSystems@HDW/Blohm+VossNavalAandSystemEngineering.

The product portfolio encompasses chemical plants and refineries @Process TechnologiesA, equipment for the cement industry and innovative solutions for the mining and processing of raw materials @Resource TechnologiesA, naval shipbuilding @Marine SystemsA, and production systems forthe auto industry @System EngineeringA. A range of services roundsouttheportfolio.Tailoredengineeringexpertiseforpatentedprocessesandmechanicalapplications,globalproject management,systemintegration, reliableprocurementandsuppliermanagement,andhigh-qualityservicesforcustomers arethebasisforoursuccess.

Orderssignificantlyhigherincoreplantengineering,butdownfromhighprior-yearlevelinnavalshipbuilding The markets of Industrial Solutions performed positively overall in 2012/2013. However at €5.3billion order intake was downfromthehighyear-earlierlevel.Thismainlyreflecteddelaysintheawardingofnavalshipbuildingprojects.

The situation was particularly encouraging in chemical plant construction at Process Technologies, where order intake increased by almost 70%. Due to low gas prices as a result of the shale gas boom in North America, demand for petrochemical plants remains high; we won orders in the USA to design and deliver fertilizer plants worth around €1.2billion.Inadditionweareplanningtoexpandourelectrolysisactivitiestofurtherstrengthenourcoreplantengineering business.ForthispurposeinNovember2013wesignedanagreementtoestablishajointventurewithIndustrieDeNora,a supplier of electrochemical technologies. By combining their engineering, procurement and construction activities for electrolysisplants underthenameThyssenKruppUhdeChlorineEngineers,thetwopartnerswillexpandtheirtechnology platforms,moveclosertotheircustomers,andenhancetheirglobalpresence.Theagreementissubjecttotheapprovalof thesupervisorybodiesandthecompetentcartelauthorities.

TheResourceTechnologiesbusinessalsoachievedhigherorderintakeyear-on-year,benefitinginparticularfromthestrong infrastructureinvestmentclimateinSoutheastAsia.Wewona€150millioncontracttobuildacementplantinThailandas well as a €200millionfollow-up orderto expand a cement plantfor a long-standing customer in Indonesia. Following a period of high demand over the past few years, the market for mining equipment is now marked by slow new project business and correspondingly intense competition; however, our high order backlog and balanced portfolio with an increasingshareofrepairandservicebusinessensuresastableworkloadandbusinesssituation.

Demandforproductionsystemsfortheautomotiveindustryremainedhigh.SystemEngineeringwonamongotherthingsan orderinthehighdouble-digitmillioneuroregiontobuildabody-in-whitefacilityforaEuropeanautomanufactureraswell asanorderforaproductionlinefortheaerospaceindustry–anactivityofgrowingimportance.

Orderintakeinnavalshipbuildingwasdownfromtheveryhighprior-yearlevelduetothedeferralofasubmarineexport project. There are a number of promising projects worldwide, in particular in the Asia/Pacific region. To strengthen our market presence in the Southeast Asian region @including Australia and New ZealandA we acquired the Australian engineeringfirmAustralianMarineTechnologiesinthereportingyear.

The business area's high order backlog of €14.6billion at September30,2013 continues to secure a good workload, providesplanningcertaintyandcontributestotheprospectsforgrowth.

Industrial Solutions operates globally. Of total orders received, 42% came from America, 29% from Europe, 25% from Asia/Pacific,and4%fromAfrica.We havebegunimplementinga regionalization plantoconcentrateourstrengthsinthe marketsandintensifyoureffortsintheareaofstrategicmarketandcustomerdevelopment.

IndustrialSolutions'saleswere7%higherthanayearearlierat€5.6billion,confirmingthesustainedupwardtrend.

AdjustedEBITwithcontinueddouble-digitmargins;EBITsignificantlyhigher

Aided by numerous impact measures, Industrial Solutions achieved adjusted EBIT of €640million, largely level withthe prior-yearfigurewhichprofitedinparticularfromthereversalofproject-relatedriskprovisionsatMarineSystems.At11.3% adjustedEBITmarginremainedfirmlywithinthedouble-digittargetcorridor.At€658millionEBITsignificantlyexceededthe year-earlier figure, which was impacted by impairment charges in connection with the sale of the civil shipbuilding operations;EBITmarginat11.7%likewiseshowedasignificantincreasefrom9.6%theyearbefore.

MaterialsServices

MaterialsServicesinfigures

				Change
		2011/2012	2012/2013	in%
Orderintake	million€	13,146	11,663	"11\$
Sales	million€	13,165	11,700	"11\$
EBIT	million€	127	"6\$	--
EBITmargin	%	1.0	"0.1\$	—
AdjustedEBIT	million€	311	236	"24\$
AdjustedEBITmargin	%	2.4	2.0	—
Employees"September30\$		27,595	26,978	"2\$

With 500 locations in 34 countries, the Materials Services business area specializes in materials distribution including technicalservices.

Holdingupwellinweakmarketenvironment

Withdemandweakandmaterialpricessharplydownfromtheprioryear,MaterialsServicesheldupwellinthe reporting year–alsoincomparisonwithmanyothermarketplayers.Thisreflectsthepositiveeffectsofthebusinessarea'sextensive portfolioofproductsandservices,broadmixofcustomersandsectors,andbalancedinternationalpositioning.

Inviewofthepersistentmarketweakness,thefocuswasonnumerousperformanceprogramsinconnectionwithimpactin 2012/2013. These included primarily the systematic and sustainable initiatives to optimize our logistics network concentrating on warehousing, processing, transportation and locations. We also included in the measures the entire inventorymanagementsystem.TheharmonizationofourglobalITnetworkwascontinued,andbytheendofthefiscalyear 7,000userswerealreadyworkinginacommonITenvironment.Thebusinessarea'soperatingstructureandadministration inGermanyandabroadwerefurtheroptimized.Withthebroadrangeofpersonneltoolsavailable,itwaspossibletoadapt thenumberofemployeestothesalesandworkloadsituation.

The figures for the reporting year reflect the generally weak economic environment and associated strong competitive pressure.Both order intake andsales slipped 11%to €11.7billion.Withtheexception offurther growth achieved inthe aerospacebusiness,ordersandsaleswereloweryear-on-yearinallareas.Duepartlytonewsitesopenedinthefiscalyear, the aerospace businesswill be abletocontinuetoexpand inthefuture.Overalltherewas no notablebusiness recovery from the already relatively weak prior year; price and competitive pressure remained exceptionally high for nearly all productsandinallregions.

Alongside the cost-reduction measures, numerous sales initiatives were introduced. As a result warehouse sales of materialswerelevelyear-on-yearat5.5milliontons.WhilesalesvolumesinGermanydecreaseddisproportionately,some growthwasreportedineasternEuropeandNorthAmerica.Asharpdeclineininternationaldirect-to-customerandproject businessmeantthatthefewprojectsavailablewerefiercelycontested.

Numerous production cutbacks and stoppages in the steel industry impacted demand for metallurgical raw materials throughoutthefiscal year.As a result of boththis andthe absence offollow-up andspecial projects in Brazil, operating levelsandsalesofoursteelmillservicesdecreasedyear-on-year;thenumberofemployeeswasadjustedingoodtime.

Thesaleprocessinitiatedinthemiddleofthefiscalyearforthe"Railway/Construction"operationsisbeingimplemented andproceedingonschedule.

AdjustedEBITclearlypositive,butloweryear-on-year

Despitealltheperformancemeasuresunderimpact,thegeneralmarketweaknessstillaffectedearnings.AdjustedEBITin fiscal 2012/2013 decreased by €75million or 24% year-on-yearto €236million. Adjusted EBIT margin was downfrom 2.4%to2.0%.EBITcameto€@6Amillion,mainlyonaccountofthefineandprovisionsinconnectionwiththerailcartelcase.

SteelEurope

SteelEuropeinfigures

				Change
		2011/2012	2012/2013	in%
Orderintake	million€	10,455	9,515	"9\$
Sales	million€	10,992	9,620	"12\$
EBIT	million€	188	62	"67\$
EBITmargin	%	1.7	0.6	—
AdjustedEBIT	million€	247	143	"42\$
AdjustedEBITmargin	%	2.2	1.5	—
Employees"September30\$		27,761	26,961	"3\$

TheSteelEuropebusinessareabringstogethertheGroup'sflatcarbonsteelactivities,mainlyintheEuropeanmarket.Its premiumflatproductsaresuppliedtocustomersintheautoindustryandothersteel-usingsectors.Therangealsoincludes productsforattractivespecialistmarketssuchasthepackagingindustry.

Ordersandsalesdownduetolowerprices

SteelEuropeexperiencedadropinbusinessin2012/2013,mainlyduetolowerprices.ThemarketweaknessinEuropewith theexistingsupplysurplusputpressureonsteelprices.Also,thescopeofconsolidationwassmallerthantheyearbefore, mainlyonaccountofthedisposaloftheconstructionelementsbusinessinSeptember2012andthesaleofThyssenKrupp TailoredBlankswhichwascompletedinJuly2013.

Order intakecameto€9.5billion,9%downfromthe prioryear.While ordervolumeswereslightlyhigheryear-on-yearat 11.6milliontons,loweraveragesellingpricesweighedonthevalueoforders.ThenegativetrendinEuropeanspotmarket pricesoverlongstretchesofthe2012calendaryear,whichgavewaytoatemporaryrecoverybutresumedagainfromApril 2013intothesummer,affectedourdealswithcustomersfromthe2ndquarterof2012/2013.

Saleswere12%lowerat€9.6billion;thistoowasmainlyduetoan8%dropinaveragesellingpricesagainsttheprioryear. While overall volumes fell 4% to 11.5million tons, the trend in the sectors was mixed. Shipments to automotive manufacturersandsuppliers,theengineeringsectorandelectricalsteelcustomersdeclined.Howeverweachievedhigher volumes in business with the construction sector, the packaging industry and manufacturers of other metal products. Shipmentsto distributors,steelservicecenters andcold-rollerswere levelwiththe prior year. Thenegativemarket price trendledtolowerrevenuesonabroadfront.

Operatinglevelsandcapacitiesfurtheradjustedinlinewithmarketconditions

Crudesteelproductionwasslightlyloweryear-on-yearat11.6milliontons.WhiletheoutputoftheGroup'sownmillswas increased by 1%, supplies from Hüttenwerke Krupp Mannesmann decreased by 8%. A smaller volume of slabs was purchasedfromCSA.Rolledsteelproductionforcustomerswas6%lowerat11.9milliontons,andthedownstreamrolling andcoatingoperationsoperatedlargelybelowcapacityonaccountoftheweakdemand.Withtheexceptionoftwoelectrical steelproductionlocationswhichhavebeenworkingshorthourssincethe2ndquarterofthereportingyear,theshort-time working arrangements introduced in some ofthe processing operations atthe end ofthe previous year ceased at Steel EuropeasofJanuary2013.Withblastfurnace2duetobetakenoutofserviceforrelininginthecourseofthenewfiscal year,blastfurnace9wasfiredupagainattheendofOctober2013.

EBITdownsharplybutstillpositive

AdjustedEBITcameto€143million,comparedwith€247milliontheyearbefore.AdjustedEBITmarginfellfrom2.2%to 1.5%.ThemainreasonwastheweakeconomyinEuropecoupledwithinadequatesellingprices.Theefficiencymeasures alreadyimplementedmadeamajorcontributionto reducingcostsbutcouldnotfullyoffsetthemarket-relateddeclines. Againstthebackgroundoftheinadequateearningssituation,weareworkingintensivelyondetailingandimplementing the measures under the "Best-in-Class Reloaded" program; among other things the hot-dip coating lines in Spain @ThyssenKrupp GalmedA and Neuwied/Germany ceased production in the 4th quarter 2012/2013. The cost-reduction measures are being supported by intensified sales efforts and differentiation initiatives. EBIT slipped €126million to €62millionandwasimpactedbyspecialitemsintheamountof€81million.Charges–mainlyrestructuringprovisionsin connection with "Best-in-Class Reloaded" – were partly offset by a disposal gain from the sale of the Tailored Blanks operations.

SteelAmericas

SteelAmericasinfigures

		2011/2012	2012/2013	Change in%
Orderintake	million€	2,081	2,056	"1\$
Sales	million€	2,014	1,867	"7\$
EBIT	million€	"4,747\$	"1,180\$	75
EBITmargin	%	—	—	—
AdjustedEBIT	million€	"1,010\$	"495\$	51
AdjustedEBITmargin	%	—	—	—
Employees"September30\$		3,992	4,112	3

WithitssteelmillinBrazilandrollingandcoatingplantintheUSAtheSteelAmericasbusinessareasuppliestheAmerican marketwithhigh-qualityslabsandflatsteelproducts.AspartoftheStrategicWayForwardThyssenKrupphasdecidedto sellthe ThyssenKrupp Steel USA rolling and coating plant in Calvert/Alabama; a contract onthe salewas signedwith a consortiumofArcelorMittalandNipponSteel&SumitomoMetalCorporationonNovember29,2013.Theagreementalso includesalong-termslabsupplycontractfortheBraziliansteelmill@ThyssenKruppCSAA.Consequently,attheendofthe reportingyearthefullSteelAmericasbusinessarea–whichhadbeenclassifiedasadiscontinuedoperationinaccordance withIFRS–wasreclassifiedasacontinuingoperation;withintheSteelAmericasbusinessarea,ThyssenKruppSteelUSAis reportedasadisposalgroup.

Price-relateddecreaseinsales;orderandshipmentvolumeshigher

In a generally difficult business environment order intake was level with the year before at €2.1billion, though order volumes were higher. Sales were down by 7% at €1.9billion as a result of lower selling prices, while production and shipmentsincreased.TheBraziliansteelmillraisedslabproductionby5%to3.6milliontons.0.6milliontonsofslabswas soldtocustomersoutsidetheGroup.DespitereduceddeliveriestoSteelEuropeandaslightyear-on-yeardeclineintheUS plant'sflatsteelsalesto2.5milliontons,thesignificantincreaseinslabssuppliedtocustomersinBrazilandNorthAmerica meantthatoverallshipmentswereslightlyhigher.

Steel Americas further enhanced its market position with strategic customers, in particular in the automotive market segment.Severalorderswerereceivedfrommajorautomotivecustomersanddeliveriestothepipesteelindustryincreased.

EBITimprovedfromyearearlier

Adjusted EBIT improved from €@1,010Amillion the year before to €@495Amillion. The main reasons for this were cost reductions,efficiencymeasures,anincreasedfocusoncustomersegmentswithstrongermarginpotential,slightlyhigher operatinglevelsatourBraziliansteelmill,andtheuseofinputtaxcreditsfollowingourentryintotheBrazilianslabmarket, which led to a positive non-period tax effect of €102million in the 2nd quarter. In addition, following the impairment charges at September 30, 2012 and as a result of the classification of ThyssenKrupp Steel USA as a disposal group, depreciationofnon-currentassetsdecreasedyear-on-yearfrom€373millionto€127million.

However,thedifficultbusinessenvironmentontheNorthAmericanmarketmeantthatearningsremainednegative,mainly as a result of unsatisfactory price levels in the service center business, which remains particularly important. Also, an unscheduled several week-long stoppage of blast furnace 2 in Brazil caused production losses which led to supply bottlenecksandnegativelyimpactedthedeliveryperformanceofourUSrollingmill.Inaddition,thetemporaryoutageofa powerplantturbineandtheoverallinefficientutilizationofcapacitiesweighedonearnings.

EBITcameto€@1,180Amillionandwasimpactedbyspecialitemsof€685million,mainlyresultingfromimpairmentcharges of€586millionandthechangedvaluationofalong-termfreightagreement.

CorporateatThyssenKruppAG

Corporate comprises the Group's head office and the shared services activities. The Group is managed centrally by ThyssenKruppAG ascorporate headquarters. To achieve greater global integration,we arecurrently overhaulingtheway the Group is organized, moving towards a three-dimensional management structure made up of operating businesses, functionsandregions.Aspartofthisnewmanagementmodel,regionalheadquartersarebeingsetupinBrazil,India,China andtheAsia/Pacific region.The regionalheadquartersinNorthAmericahasbeenfullyoperationalsincethebeginningof thereportingyear.

The shared services comprise Business Services @finance and human resourcesA, IT and Real Estate including nonoperating real estate. Sales of services by Corporate companies to Group companies and external customers in the reportingperiodcameto€190million,€32millionmorethantheyearbefore.

Adjusted EBIT at Corporate came to €@425Amillion, a year-on-year improvement of €62million. Administrative costs increased among other things on account of consulting expenses for Groupwide projects such as the introduction of standardized data acquisition systems and the efficiency and restructuring program ACT. However, this was more than offset bysavings and increased activity-based allocation of coststothe business areas.Reflecting special items,mainly dueto restructuring provisionsinconnectionwithACT,EBITcameto€@500Amillion,comparedwith €@495Amillion ayear earlier.

StainlessGlobal"discontinuedoperation\$

ThemergeroftheStainlessGlobalbusinessareawiththeFinnishcompanyOutokumpuwascompletedonDecember28, 2012. Inthe 1st quarter 2012/2013 upto its exitfromthe Group, Stainless Global achieved order intake of €1.3billion @1stquarter 2011/2012: €1.4billionA, sales of €1.4billion @1st quarter 2011/2012: €1.4billionA and EBIT of €72million @1stquarter2011/2012:€@321AmillionA.Aftertheexit,incomeandexpensesaroseuptoSeptember30,2013whichwere directlyassociatedwiththesaleofStainlessGlobalandimpactedEBITintheamountof€15million

Resultsofoperationsandfinancialposition

Improvedoperatingearnings,tightlycontrollednetworkingcapital,improvedcapitalallocation,andsignificantcashinflows fromdisposalscharacterizedthestructuralimprovementsinourcashflowprofilein2012/2013;theyledtoanappreciable reductioninournetfinancialdebt.Necessaryrestructuringmeasures,provisionsandimpairmentchargesweighedonthe Group's equity in the reporting year. Nevertheless the Group's financing and liquidity remain on a solid basis for the 2013/2014fiscalyear.

Componentsofearnings

At €38,559million, net salesfrom continuing operations ,incl. Steel Americas. in 2012/2013were €2,977million or 7% lowerthan ayearearlier.Cost ofsalesfromcontinuingoperations decreased atamuchhigher rate by€6,263million or 16%.Akeyreasonforthiswasasignificantyear-on-yearreductioninimpairmentchargesfornon-currentassetsatSteel Americas. In addition there was a sales-related decline in material expense. Accordingly, gross profit from continuing operationsincreasedsignificantlyby€3,286millionto€4,750million,whilegrossprofitmarginimprovedby9percentage pointsto12%.

The main contributors to the €42million rise in research and development cost from continuing operations were the ElevatorTechnologyandSteelEuropebusinessareas.

Sellingexpensesfromcontinuingoperationsdecreasedby€135million,mainlyduetolowerimpairmentchargesatSteel Americas and reduced expenses for sales-related freight, insurance charges and customs duties. General and administrativeexpensesfromcontinuingoperationswere€89millionlower;increasedrestructuringexpenseswereoffsetin particularbylowerdepreciation,reducedimpairmentchargesatSteelAmericas,andadecreaseintravelexpenses.

Otherexpensesfromcontinuingoperationsincreasedby€43million.Higherexpenseswererecognizedinthefiscalyearin connectionwiththerailcartelcase,relatingtoprovisionsforrecognizablerisksfromclaimsfordamagesandtoafine.In additiontherewereincreasedexpensesinconnectionwiththe recognitionofafreightagreementasaderivativeatSteel Americas.Theseincreaseswerepartlyoffsetbytheabsenceofgoodwillimpairmentchargesrecognizedintheprioryearin connectionwiththesaleoftheciviloperationsofBlohm+Voss.

Othergainsandlossesattributabletocontinuingoperationswere€243millionlowerthanayearearlier.Thiswasmainly duetotheabsenceofthegainonthedeconsolidationofWaupacarecognizedintheprioryear,whichwaspartlyoffsetby thegainonthedisposaloftheThyssenKruppTailoredBlanksgrouprecognizedinthe4thquarter2012/2013.

The€154milliondeteriorationinincomeattributabletothecontinuingoperationsfromcompaniesaccountedforusingthe equitymethodwasmainlyduetothevaluationofthesharesinOutokumpuinthereportingyear.The€167millionreduction infinancingincomefromcontinuingoperationswasmainlycausedbylowerexchangerategainsinconnectionwithfinance transactions;thiswasoffsetmainlybyincreasedincomeinconnectionwiththesecuringofaloanatSteelAmericas.The €66million increase in financing expense from continuing operations mainly reflected the writedown of the financial receivablefromOutokumpuinthereportingyearandincreasedexpensesfromthesecuringofaloanatSteelAmericas;this wasoffsetmainlybyreducedexchangeratelossesinconnectionwithfinancetransactionsandlowerinterestexpensefor accruedpensionandsimilarobligations.

Thelossfromcontinuingoperations,beforetaxes.of€1,648millionresultedinataxbenefitfromcontinuingoperationsof €59million,whichaccruedinGermanyandabroadandismainlyinconnectionwithvaluationallowancesfordeferredtax assets.Intheprioryeartheeffectivetaxchargewasinfluencedbyvaluationallowancesfordeferredincometaxassetsat SteelAmericas.

Aftertakingintoaccountincometaxes,thelossfromcontinuingoperationscameto€1,589million.

Thediscontinuedoperationsachievedaprofitof€53millioninthereportingyear,comparedwithalossof€707millionthe yearbefore.The€760millionimprovementwasmainlyduetolowercurrentlosses,a€400millionyear-on-yearreductionin lossesfromwritedownsforStainlessGlobal,andagainof€146milliononthedisposalofthestainlesssteelbusinessto Outokumpuprovisionallyrecognizedinthereportingyearpendingcompletionofthepurchasepriceallocationinconnection withthe29.9%shareinOutokumpu.

Includingthe after-tax lossfrom discontinued operations, a net loss of €1,536million was posted inthe reporting year, comparedwithanetlossof€5,042milliontheyearbefore.

LosspersharebasedonthenetlossattributabletotheshareholdersofThyssenKruppAGdecreasedyear-on-yearby€5.53 to€2.71.Losspersharefromcontinuingoperationscameto€2.82,comparedwithalossof€6.88intheprioryear.

Analysisofthestatementofcashflows

Theamountstakenintoaccountinthestatementofcashflowscorrespondtotheitem"Cashandcashequivalents"as reportedinthestatementoffinancialpositionandalsoincludethecashandcashequivalentsrelatingtothedisposal groupsincludingthediscontinuedoperationsuntilthetimeoftheiractualsale.Forthe2012/2013fiscalyearandtheprior yearthediscontinuedoperationscomprisetheactivitiesofStainlessGlobal.

In2012/2013therewasanetcashinflowfromoperatingactivitiesof€786million,comparedwithacashoutflowof €386millionayearearlier.Cashinflowfromcontinuingoperationscameto€981million,astrongimprovementof €1,271millionfromtheyearbefore.Thiswasmainlyduetoastrongimprovementinfundstiedupininventoriesandtrade accountsreceivableandpayablebyaltogether€1,320million.Inthediscontinuedoperations,negativeoperatingcashflow increasedby€99millionto€,195.million,mainlyduetothefundstiedupininventoriesuptotheendofDecember2012.

Investing activities resulted in a netcash outflow of €190million,comparedwith acash outflow of €1,350million inthe prior year. Cash outflowfrom continuing operations cameto €92million, comparedwith €948million a year earlier. The mainreasonsforthe€856millionimprovementwerethedisposalofthestainlesssteelbusinesstoOutokumpu,whichafter taking into accountthe divested cash andcash equivalents resulted in proceeds of €916million, income of €242million from the sale of the ThyssenKrupp Tailored Blanks group in the Steel Europe business area in July 2013, and sharply reducedcapitalexpenditureforproperty,plantandequipmentatSteelAmericas.Thiswaspartlyoffsetbytheabsenceof theproceedsfromthesaleoftheUSfoundryWaupaca,theXervongroupandtheBrazilianAutomotiveSystemsoperations recognized a year earlier. In the discontinued operations cash outflow from investing activities was €304million lower, whichwasmainlydueto a declineincapitalexpenditurefor property, plantandequipmentasa result ofthesale ofthe stainlesssteelbusinesstoOutokumpuattheendof2012.

Freecashflow,i.e.thesumofoperatingcashflowsandcashflowsfrominvestingactivities,inthecontinuingoperations improvedsignificantlyyear-on-yearby€2,127milliontoapositive€889million.Thiswasmainlytheresultofhighercash inflowfromoperatingactivitiesandthedisposalofthestainlesssteelbusiness.Inthediscontinuedoperationsnegativefree cashflowwasreducedto€,293.millionthankstolowercashoutflowsforinvestingactivities.Overall,freecashflowthus cameto€596million.

Atthecontinuingoperationstherewasacashinflowfromfinancingactivitiesof€812million,comparedwith€11millionin theprioryear.Ofthe€801millionincreaseincashinflow,€232millionresultedfromlowercashoutflowsinconnectionwith thefinancingofthediscontinuedoperations.Inaddition,profitdistributionswere€254millionlowermainlyasa resultof theabsenceofdividendpaymentsbyThyssenKruppAGinthereportingyearanda€120millionincreaseinnetborrowings. Cashinflowfromfinancingactivitiesofdiscontinuedoperationsdecreasedby€248million,mainlydueto reduceduseof the Group financing system by the discontinued operations. Overall, cash inflow from financing activities increased by €553millionto€1,051million.

Centralfinancingandmaintenanceofliquidity

ThefinancingoftheGroupismanagedcentrallybyThyssenKruppAG.Itisbasedonamulti-yearfinancialplanningsystem and amonthly rolling liquidity planning systemcovering a planning period of upto oneyear. Thecash inflowsfrom our operatingactivitiesareourmainsourceofliquidity.OurcashmanagementsystemsallowGroupcompaniestousesurplus fundsfrom othercompanyunitstocovertheirownfinancial requirements. This reducesthevolumeofexternalfinancing requirementsandthusourinterestexpense.Externalfinancing requirementsarecoveredusingmoneyandequitymarket instrumentssuchasbonds,bondedloansorcommercialpapers.Wealsomakeuseofcommittedcreditfacilitiesinvarious currenciesandwithvariousterms,aswellasselectedoff-balancefinancinginstrumentssuchasfactoringprogramsand operatingleases.InformationontheavailablecreditfacilitiesisprovidedinNote17.

Our centralized financing system enables us to project a uniform image to the capital markets. This strengthens our negotiatingpositionvis-à-visbanksandothermarketparticipantsandmakesiteasierforustoprocureandinvestcapital onoptimumterms.

At September30, 2013 ThyssenKrupp had €3.8billion in cash and cash equivalents and €3.5billion in available credit facilities. Togetherthis provided available liquidity of €7.3billion. Additionalfinancing of upto €1.5billion was available underacommercialpaperprogram.Commercialpapersaredebtinstrumentswhichcanbeissuedunderourprogramwitha term of upto 364 days depending on investor demand. At September 30,2013 €100million had been drawn underthe program.

ThefinancingandliquidityoftheGroupweresecuredatalltimesduringthereportingyear.

Analysisofthestatementoffinancialposition

ComparedwithSeptember30,2012totalassetsdecreasedaltogetherby€2,980millionto€35,304million.Thisincludesa currencytranslation-relateddecreaseof€1,098million,mainlyduetomovementsintheUSdollarexchangerate.

Takingintoaccounta€373millionexchangerate-relatedreduction,non-currentassetsincreasedoverallby€2,888million. Of this sharp rise, €1,911million was due to assets of Steel Americas, which at September 30, 2013 were no longer classified as heldfor sale; includingthe €249million impairment charges recorded in 2012/2013, €1,720million ofthis relatedtoproperty,plantandequipment.Furtherfactorsmainlyincludedtwotransactionsresultingfromthecombinationof Stainless Global and the Finnish stainless steel manufacturer Outokumpu implemented at the end of 2012. In this connection ThyssenKrupp holds a financial receivable from Outokumpu; this was the main reason for the €934million increaseinothernon-currentfinancialassets.Inaddition,ThyssenKruppreceiveda29.9%shareinthenewcompany;this resultedin€302millionhigherinvestmentsaccountedforusingtheequitymethod.Deferredtaxassetswere€186million higher, largely as a result of the increase in tax-deductible losses in Germany and abroad. Based on our earnings expectationsandtaxplanning,thetaxdeductibilityoflossesissecured.

Current assets decreased by a significant €5,868million mainly due to the sale of the stainless steel operations to OutokumpuandtheportionofSteelAmericasassetsnolongerclassifiedasheldforsaleatSeptember30,2013.Currency translationeffectscauseda€724milliondecrease.

At €6,351million, inventories at September 30, 2013were levelwiththe prior year.Increases of €387million relatingto inventoriesofSteelAmericasnolongerclassifiedasheldforsalewereoffsetinparticularbycurrencytranslationeffects, volume-andprice-relatedreductions,andreductionsresultingfromlowermanufacturingcostsintheSteelEuropebusiness area.

Tradeaccountsreceivableshowedanetdecreaseby€170millionto€4,956million.Declinesreflectingaboveallexchange rateeffectsandreducedreceivablesinconnectionwithlong-termconstructioncontractswerepartlyoffsetbya€59million increaseresultingfromtradeaccountsreceivableofSteelAmericasnolongerclassifiedasheldforsaleatSeptember30, 2013.

The €211million increase in other current financial assets was mainly due to receivables from investee company Outokumpu.

Of the €413million increase in other current non-financial assets, €189million was due to other current non-financial assetsofSteelAmericas nolongerclassifiedas heldforsaleatSeptember30,2013.Anotherkeyfactorwereincreased advancepaymentsmadeinconnectionwiththeprocurementofinventoriesandotheradvancepayments.

The large increase in cash and cash equivalents by €1,592million was connected with the positive free cash flow of €889million generated inthe reporting year,which includedthe €1,000million payment byOutokumpuforthe stainless steel business atthe end of December 2012, andwith net borrowings of €1,081million. Thiswas partly offset by cash outflowsof€279millioninconnectionwiththefinancingofthediscontinuedoperationsaswellasexchangerateeffects.

Assetsheldforsaledecreasedsignificantlyby€7,920millionto€1,547million.Ofthisdecrease,€3,247millionwasdueto assets ofSteelAmericasnolongerclassifiedasheldforsale,and€4,383milliontothecompleted disposal ofStainless Globalto Outokumpu. The sale ofthe ThyssenKrupp Tailored Blanks group in July 2013 contributed €282milliontothe reduction.

TotalequityatSeptember30,2013was€2,511million,down€2,015millionfromayearearlier.Themainfactorswerethe net loss of €1,536million in the reporting year and the currency translation losses of €382million recognized in other comprehensiveincome.Theequityratiofellfrom11.8%to7.1%.

Non-current liabilities increased altogether by €1,516million. The main reason was the €1,699million increase in noncurrent financial debt, mostly due to the issue of a bond with a total volume of €1,600million in the 2nd quarter 2012/2013. In addition, liabilitiestofinancial institutions increased by €1,213million, of which €501million was dueto liabilitiestofinancialinstitutionsofSteelAmericasnolongerclassifiedasliabilitiesassociatedwithassetsheldforsaleat September30,2013.Inadditionnon-currentfinancialdebtdecreasedby€995millionasaresultofthereclassificationofa bond due inJune 2014tocurrentfinancial debt. The €352million decrease in accrued pensions and similar obligations mainlyreflectedoutpaymentsforpensionsandhealthcareaswellasadecreaseduetotheupdatedinterestratesusedfor the revaluation of pension and healthcare obligations at September 30, 2013. The main reason for the €119million increaseinothernon-currentprovisionswererestructuringmeasures,particularlyintheSteelEuropebusinessarea.

Currentliabilitiesdecreasedaltogetherby€2,481million,ofwhich€428millionwasduetocurrencytranslationeffects.

The€331millionincreaseinothercurrentprovisionsmainlyreflectedtheallocationsmadeinthe1sthalf2012/2013dueto recognizablerisksfromclaimsfordamagesinconnectionwiththerailcartelcase.Inadditionprovisionswererecognizedfor possibleeffectsfromrequirementsundermerger-controllawinconnectionwiththedisposalofthestainlesssteelbusiness to Outokumpu. Current financial debt was virtually unchanged at €1,911million at September 30, 2013; the above mentionedreclassificationofabondfromnon-currentfinancialdebtinJune2013wasoffsetbytherepaymentofabondin February2013.

Trade accounts payable increased by €199million altogether; ofthis €133millionwas duetotrade accounts payable of Steel Americas no longer classified as liabilities associated with assets held for sale at September 30, 2013. The €393million rise in other currentfinancial liabilities mainly reflected increased liabilitiesto investee companies andthe recognition of derivatives. The €356million rise in other current non-financial liabilities was mostly caused by higher advancepaymentsandobligationsforsubsequentmanufacturingcosts.

Liabilitiesassociatedwithassetsheldforsaledecreasedby€3,649millionto€265million.Ofthisdecrease,€2,323million wasduetotheabovementionedsaleofStainlessGlobaltoOutokumpuinDecember2012,and€1,230milliontoliabilities of Steel Americas no longer classified as liabilities associated with assets held for sale. The sale of the ThyssenKrupp TailoredBlanksgroupcontributedafurther€104milliontothisreduction.

Assetsnotrecognizedandoff-balancefinancinginstruments

In additiontothe assets recognized inthe balance sheet,the Group also uses non-recognized assets. These aremainly leasedorrentedassets,operatingleases..MoredetailsonthiscanbefoundunderNote21.Themainoff-balancefinancing instrumentsweusearefactoringprograms.MoredetailscanbefoundunderNote10.Shouldfinancinginstrumentsofthis kind no longer be available inthefuture,we have adequate available credit lines. This also appliestothe non-recourse factoring of receivables, which the Group sold in connection with ordinary business activities in the amount of around €1billionattheclosingdate;intheprioryeartheamountwasalsoaround€1billion.

AnnualfinancialstatementsofThyssenKruppAG

ThyssenKruppAGistheparentcompanyandcorporateheadquartersoftheThyssenKruppGroup.TheExecutiveBoardof theholdingcompanyisresponsibleforthekeymanagementfunctionsoftheCompanyasawhole.Theseincludeaboveall defining corporate strategy, allocating resources, as well as executive and financial management. The performance of ThyssenKruppAGismainlydeterminedbythebusinesssuccessoftheGroup.

Capitalexpenditures

ThyssenKruppAGinvested€5,009millioninternallyinfixedassetsinthe2012/2013fiscalyear.Ofthis€14millionwasfor softwarelicensesasintangibleassets,mainlyinconnectionwiththereorganizationoftheSAPsystemsusedforaccounting and payroll. The €26million additions to property, plant and equipment mainly related to the ThyssenKrupp Quarter in Essen,with €15million attributableto property, plant andequipment under constructionto provide secure zones against cyberattacks.

Of the €4,970million additions to financial assets, €3,180million related to shares in affiliated companies. This mainly reflected€2,016millioncontributionsinkindofsharesinThyssenKruppCanadaInc.,KruppCanadaInc.andThyssenKrupp FranceS.A.to ThyssenKrupp Nederland HoldingB.V. as well as a €770 million allocationto additional paid-in capital at ThyssenKruppNorthAmericaInc.Afurther€1,289millionrelatedtoloanstoaffiliatedcompaniesonthebasisoflong-term loanagreements,mainlytoThyssenKruppNederlandHoldingB.V.

The€3,943millionnetbookvalueofdisposalsofsharesandloanstoaffiliatedcompaniesincluded€859millionfromthe transfer of shares to other subsidiaries of ThyssenKruppAG and from mergers of direct subsidiaries, as well as €3,084million from the repayment of expiring loan agreements by various Group companies, mainly ThyssenKrupp TechnologiesBeteiligungenGmbHandThyssenKruppFinanceNederlandB.V.

Resultsofoperations

ThenetincomeofThyssenKruppAGinthereportingyearwas€772million,comparedwithanetlossof€3,184millionin theprioryear.

Netincomefrominvestmentsincreasedby€417millionto€833million.Incomefromprofitandlosstransferagreements wasupby€465millionto€952million.Inparticular,incomefromThyssenKruppTechnologiesBeteiligungenGmbHroseby €320million to €625million :prior year €305million;. In addition, profit transfers from ThyssenKrupp ElevatorAG :€124million;prioryear€13million;andThyssenStahlGmbH:€184million;prioryear€136million;inthereportingyear wereoverall€159millionhigherthanayearearlier.Thiswaspartiallyoffsetbya€46millionnetincreaseinexpensesfrom losstransfers,including€91millionfromThyssenKruppMaterialsInternationalGmbH.Incomefrominvestmentswasdown €2millionfromtheprioryear,relatinginparticulartothe€2milliondividendpayoutbyTGHMGmbH&Co.KGayearearlier.

The €1,353 million increase in other operating income was mainly due to €1,258 million income from the disposal of financialassets.Ofthis,€1,176million relatedtocontributionsinkindofsharesinaffiliatedcompaniestoThyssenKrupp Nederland HoldingB.V. and €80million to contributions in kind to ThyssenKrupp Technologies BeteiligungenGmbH. In addition,incomefromreversalsofprovisionsincreasedby€228millionto€237million:prioryear€9million;,mainlyfrom the€200millionadjustmenttothe riskvaluationofaformerequityinterestandthe€27millionreversalofprovisionsfor outstanding invoices :thereof €22million from indirect utilization;. This was partly offset by a €156 million decrease in incomefromintercompanytaxallocationsinconnectionwiththetransferofincomefromsubsidiaries.

Writedownsoffinancialassetsatinvesteecompaniesinthefiscalyearincluded€460milliononthesharesinOutokumpu Oyj,Finlandandthe€300millionwritedownofaloanduetothetransferofthecredit riskfromThyssenKruppNederland B.V.vis-à-visOutokumpuOyj.Therewasalsoa€95millionwritedownonthesharesinThyssenKruppItaliaS.r.l.

Generaladministrativeexpensesincreasedby€43million,mainlyduetothe recognitionofprovisionsforHR restructuring measures:€18million;,a€17millionincreaseinallocationstopensionprovisions,andothermaterialcosts.

The €21million increase in other operating expensesto €160million mainly reflected €44million higher expensesfrom intercompanytax allocationsto Group companies in connection withthetransfer of incomefrom subsidiaries. This was partlyoffsetbya€21millionreductionintheallocationtoprovisionsforadjustmentmeasuresinconnectionwithemployee transfers.

Netinterestincludesinterestexpenseandincomebothfromintra-Groupandexternalfinancing;netinterestimprovedinthe reportingyearby€90millionto€:377;million.

Incomefromordinaryactivitiescameto€689million,comparedwithalossof€488millionintheprioryear.

Incometaxesincludean€85million benefitfromthe reassessmentoftaxissuesandanexpenseforforeignwithholding taxes.Undera recognition optionforanexcess ofdeferredtaxassets overdeferredtax liabilities,deferredtaxesarenot includedintaxexpense.

Afterincometaxes,netincomewas€772million:prioryear:netlossof€3,184million;.

Analysisofthestatementoffinancialposition

Totalassetsincreasedyear-on-yearby€346millionto€37,320million.

Fixedassetsroseby€159millionto€25,872million.Theincrease relatedmainlytosharesinaffiliatedcompaniesandto investments;itwaspartlyoffsetinparticularbyadecreaseinloanstoaffiliatedcompanies.

Intotal,sharesinaffiliatedcompaniesincreasedby€2,223millionto€19,231million.Thiswasmainlyduetocontributions inkindof€2,016milliontoThyssenKruppNederlandHoldingB.V.,a€770millionallocationtoadditionalpaid-incapitalat ThyssenKrupp North America, Inc., as well asthe €216 million purchase of new shares in Krupp Canada Inc. This was partiallyoffsetby€859milliondisposals,mainlyrelatingtothecontributionsinkindtoThyssenKruppNederlandHolding B.V.byThyssenKruppFranceS.A.S.:€338million;,ThyssenKruppCanadaInc.:€286million;andKruppCanadaInc.:€216 million;.

Newlong-termloanagreementswereconcludedbetweenThyssenKruppAGandindividualGroupcompaniesandexisting loanagreementswereincreasedinfiscal2012/2013.Theresultantadditionscameto€1,289million.Thismainlyreflected a €1,269 million intra-group loan to ThyssenKrupp Nederland Holding B.V. This was partly offset by €3,084 million in expiredloanagreementsanda€300millionwritedown,soThyssenKruppAG's netloansdecreased by€2,095millionto €6,007million.

AtSeptember30,2013,fixedassetsasapercentageoftotalassetsremainedunchangedat69%.

Receivablesandliabilitiesfrom/toaffiliatedcompaniesaresignificantitemsinthebalancesheetofThyssenKruppAG.They reflect the central importance of ThyssenKrupp AG in the Group's cash management system. At September 30, 2013 receivablesfromaffiliatedcompaniesweredownby€803millionfromtheprioryearto€8,545million,mainlyduetolower intercompanyaccountbalances:€1,108million;andreceivablesfromaffiliatedcompaniesinconnectionwithintercompany taxallocations:€156million;.Thiswaspartlyoffsetbya€462milliondecreaseinotherreceivables,mainlyrelatingtoprofit transfers.

ThyssenKrupp AG bears liabilityfromthe internaltransfer of pension obligations.Inthe pastfiscal year,these obligations undermiscellaneousassetsdecreasedby€54millionto€669million.Correspondinglytheywererecognizedunderpension obligations. In addition, other receivables and other assets decreased by €49 million due to lower receivables from the transferofsalestaxbalancesfromcompaniesinthetaxgroup.

Securities classed as operating assets decreased by €453million – duetotheexchange oftheshares in ThyssenKrupp Nirosta GmbH and Inoxum GmbH for 621,042,572 shares in Outokumpu Oyj. As a result of this transaction, gross investmentsreportedunderfinancialassetsincreasedbythesameamount.

AtSeptember 30, 2013,cash in hand andcash at bankswas €1,544million higher year-on-year at €2,151million. The increaseinliquidityismainlyduetoreceiptofthesellingpricefromthesaleofthestainlesssteelactivities.

InFebruary2013ThyssenKruppAGissueda€1.25billion5½-yearbondunderits€10billiondebtissuanceprogram.The bondwasincreasedby€0.35billiontoatotalof€1.6billioninMarch2013.Itpaysacouponof4.0%p.a.atanissueprice of99.681% /100.625%.Theissuebenefitedfromtheadvantageousmarketclimateandextendedthematurityprofileof our financial debt. Liabilities to affiliated companies are mainly deposits by subsidiaries in the Group's central financial clearingsystem.Liabilitiestoaffiliatedcompanieswere€2,296millionloweryear-on-yearat€25,129million.Thedecrease wasmainlyduetotheexpiryofloansbysubsidiariestoThyssenKruppAGanda€1,587millionreductioninintercompany liabilities.Otherliabilitiestoaffiliatedcompanieswerealso€757millionlower,mainlyduetolosstransfersinconnection withprofit-and-losstransferagreements;thiswaspartlyoffsetbya€44millionincreaseinliabilitiestoaffiliatedcompanies fromintercompanytaxallocations.

Totalequityincreasedby€772millionto€3,534millionatSeptember30,2013.Thisincreaseresultedfromthenetincome generatedinfiscal2012/2013.Theequityratioremainedattheprior-yearlevelofaround10%.

The reduction in pension provisions includesthe aforementioned €54million internaltransfer of pension obligations and €24 million pension payments. This was partly offset by €21 million accrued interest on pension provisions and a €36 millionallocationtopensionprovisions.

MoreinformationonthefinancialpositionofThyssenKruppAGiscontainedintheNotestotheparentcompanyfinancial statements.

Unappropriatedincomeandproposalfortheappropriationofnetincome

Thelegalbasisfordistributionofadividendistheunappropriatedincomeof ThyssenKruppAGcalculatedinaccordance with commercial law accounting principles. This is determined by the €772 million net income of ThyssenKrupp AG, calculatedinaccordancewithHGB,lessthe€405milliontransfertootherretainedearningsresolvedbytheExecutiveBoard andSupervisoryBoardinaccordancewithArt.58par.2,2aStockCorporationAct:AktG;.Theannualfinancialstatements thereforereportunappropriatedincomeof€367million.

ThyssenKruppAG'sdividendpolicyisgearedtocontinuity.Generallytheaimistodistributeanappropriatedividendbased onthe resultsforthe year ofthe Group led by ThyssenKrupp AG. Continuity also involves not suspendingthe dividend completelyinbadyears–wherefinanciallyjustifiable.

Againstthe backgroundoftheGroup'simprovedbutnotyetadequateearning powerand in particularthebalancesheet impactsofnecessaryimpairmentcharges,provisionsandrestructuringmeasureswithanotherlargeloss,adeclineinthe equityratioandatemporaryincreaseingearing,adividendpaymentbytheGroup–thoughformallypossibleonthebasis oftheparentcompanyfinancialstatementsofThyssenKruppAG–cannotbejustified.TheExecutiveBoardandSupervisory BoardwillproposetotheAnnualGeneralMeetingthattheunappropriatednetincomeofThyssenKruppAGbeallocatedin fulltootherretainedearningsinordertostrengthentheCompany'stotalequity.

Overall,however,ouraimremainstoprovidedividendcontinuity,andweregardareliableandattractivedividendpolicyas animportantelementofourvisionofadiversifiedindustrialgroup.Basedonthecontinuingimplementationofourstrategic developmentprogramandtheassociatedimprovementinourearningsandbalancesheetratios,itisourexpressintention toonceagainpayanappropriatedividendassoonasfinanciallyjustifiable.

As the parent company of the Group, ThyssenKrupp AG receives income in particular from its investee companies. The majoroperatingsubsidiariesinGermanytransfertheirearningsdirectlytoThyssenKruppAGunderprofitandlosstransfer agreements.Theaforementioned positiveexpectationsfortheGroup'sbusiness performanceshould alsohaveanimpact ontheincomeofThyssenKruppAG.

Condensedstatementsoffinancialpositionandincome

StatementoffinancialpositionofThyssenKruppAG

Assetsinmillion€	Sept.30,2012	Sept.30,2013
Fixedassets
Purchasedintangibleassets	15	22
Property,plantandequipment	380	387
Financialassets	25,318	25,463
	25,713	25,872
Operatingassets
Receivablesandotherassets	10,176	9,268
Sharesinaffiliatedcompanies	453	0
Cashonhandandcashatbanks	607	2,151
	11,236	11,419
Prepaidexpensesanddeferredcharges	25	29
Totalassets	36,974	37,320

Equityandliabilitiesinmillion€	Sept.30,2012	Sept.30,2013
Totalequity
Capitalstock	1,317	1,317
Additionalpaid-incapital	723	723
Otherretainedearnings	722	1,127
Unappropriatednetincome/loss	0	367
	2,762	3,534
Provisions
Accruedpensionandsimilarobligations	1,164	1,137
Otherprovisions	585	342
	1,749	1,479
Liabilities
Bonds	3,000	4,600
Liabilitiestofinancialinstitutions	1,721	2,086
Liabilitiestoaffiliatedcompanies	27,425	25,129
Otherliabilities	309	488
	32,455	32,303
Deferredincome	8	4
Totalequityandliabilities	36,974	37,320

StatementofincomeofThyssenKruppAG

million€	2011/2012	2012/2013
Netincomefrominvestments	416	833
Otheroperatingincome	464	1,817
Writedownsoffinancialassetsandsecuritiesclassedasoperatingassets	62387	68577
Generaladministrativecosts	65247	65677
Otheroperatingexpense	61397	61607
Netinterest	64677	63777
Incomefromordinaryactivities	64887	689
Extraordinaryexpense/extraordinaryincome	62,6787	0
Incometaxes	6187	83
Netloss/Netincome	63,1847	772
Profitappropriation
Netincome/Netloss	63,1847	772
Profitcarriedforward	285	0
Withdrawalfromadditionalpaid-incapital	2,279	0
Withdrawalfromotherretainedearnings	620	0
Allocationtootherretainedearnings	0	405
Unappropriatednetincome/loss	0	367

Subsequentevents

Reportableeventsbetweentheendofthereportingyear:September30,2013;andthedateofauthorizationforissuance :November29,2013;arepresentedinNote36totheconsolidatedfinancialstatements.

Compliance

Thecomplianceprogramfocusingonanti-corruptionpoliciesandantitrustlawwithitsthreepillars"inform","identify"and "reportandact"wasrigorouslycontinuedinthe2012/2013fiscalyear.Complianceworkwasmarkedbyaseriesofmajor incidents to which the Executive Board and Supervisory Board of ThyssenKruppAG reacted by intensifying compliance activitiesandstrengtheningthecomplianceorganization.Inresponsetomediareportsaninternalinvestigationintopress and othertrips involving individual Executive Board members was conducted atthe end of 2012. In February 2013the businesspremises ofThyssenKruppSteelEuropeinDuisburgweresearched bytheGermanFederalCartelOffice onthe basisofsuspectedpricefixinginthedeliveryofcertainsteelproductstotheGermanautomotiveindustryanditssuppliers. InJuly2013afinalfineof€88millionwasimposedonThyssenKruppintherailcartelcase.FromApriltoJune2013the Groupcarriedoutaninternalamnestyprogram.

FinalfineimposedonThyssenKruppinrailcartelcase

OnJuly23,2013theGermanFederalCartelOfficeimposedasecondfineonThyssenKruppGfTGleistechnikGmbHinthe rail cartel case. This fine in the amount of €88million relates to the private market and turnouts sections of the proceedings.ThyssenKruppacceptedthefine,forwhichithadalreadyrecognizedacorrespondingprovision.InJuly2012 theauthorityimposedafirstfineof€103millionforillegalagreementsonraildeliveriestoDeutscheBahn.Withthelatest finetheallegationsagainstThyssenKruppinconnectionwiththerailcartelhavenowbeenfullyandfinallysettled.

Fromtheoutset ThyssenKruppstronglysupportedtheinvestigationofthe railcartelwithitsowncompliance department and external assistance. The Federal Cartel Office explicitly acknowledged the Group's own compliance work. The company's full cooperation with the investigating authorities throughout the proceedings was taken into account as a significantextenuatingfactorinthecalculationofthefine.

In mid-2011the Group actedfirmly inthe spirit of zerotolerance andtook personnel action. Several salesmanagers, a managing director and the responsible business area CEO had to leave the company. The public prosecutor's office is continuingitscriminalinvestigationsintotheindividualsinvolvedinthecartel.

Attheendof2012variouscompaniesofDeutscheBahnfiledclaimsfordamagesagainstseveraldefendants–including ThyssenKrupp GfT Gleistechnik and ThyssenKrupp Materials International – in connection with the rail cartel. More informationisprovidedintheconsolidatedfinancialstatementsunderNotes16and21.

CartelinvestigationatSteelEuropeandresultsoftheamnestyprogram

Despiteconsiderablecomplianceeffortsin recentyears,significantdamagehasbeencausedtothecompanyparticularly by the rail cartel. Against this background and in view of the suspicion of price fixing by ThyssenKrupp Steel Europe asserted bythe Federal Cartel Office atthe end of February 2013,the Executive Board of ThyssenKrupp AG decidedto intensifytheGroup'scomplianceeffortsstillfurther,alsowithsupportfromexternallawfirms.Aswellasestablishingan ombudsman,the Company carried out an amnesty programfrom April 15to June 15, 2013. Employees who disclosed compliancemattersvoluntarilyandfullywerepromisedthatdamageclaimswouldnotbeasserted/enforcedagainstthem andthattheiremploymentwouldnotbeterminated.

The amnesty program led to more than twenty leads. However, no serious or structural compliance infringements were identified. The review ofthe leads instigated by us has now been completedwithexternal counsel support. The relevant information received related mainly to individual misconduct in dealings with customers and suppliers in Germany and abroad. This conduct was stopped following internal measures. In addition the Executive Board decided to carry out a Groupwide review ofemployees' activitiesintradeassociationsandtogiveemployeesextracertaintyonhowtoconduct themselves in dealings with competitors. Around a third of the reports under the amnesty program led to no findings. Amongotherthingstheyrelatedtoquestionsfromemployeeswantingtomakesurethattheirconductwasinlinewiththe Group policies on combating corruption. We will integrate this subject into the existing compliance training programs because,particularlyabroad,furthersupportisneededondealingwithinvitationsandgifts.

The amnesty program revealed no leads regardingthe ongoing investigations bythe Federal Cartel Office into possible pricefixinginthedeliveryofcertainsteelproductstotheGermanautomotiveindustryanditssuppliers.Moreinformation ontheeconomicrisksfromtheproceedingsisprovidedinthesection"Opportunitiesandrisks"onpage84.

Internalinvestigationintopresstrips

InresponsetopressinquiriesandpressreportsinNovember2012concerningtripsbymembersoftheExecutiveBoard ofThyssenKruppAGwithpressrepresentativesandotherthirdparties,thecomplianceteam,withthesupportoftwolaw firms,conductedanextensiveinternalinvestigationintotripsintheperiod2007to2012bytheExecutiveBoardmembers inofficeatthattime.Thereviewofthetripsfoundthatnolawsorinternalcomplianceregulationswereviolated.However, itwasfoundthatsomeofthetripswereonlyjustwithinacceptablelimitsandthattheexistinginternalregulationsontrips withthirdpartieswereinsomecasesunclearorinadequate.TheExecutiveBoardreactedtothisbyissuingitsownpolicy forpresstripsandinitiatinganannualreviewofitstravelexpensesbyInternalAuditing,startingimmediately.

Furtherdevelopmentofthecomplianceprogram

Our compliance program is continuously optimizedtotake into account current compliance developments, includingthe findingsfromourinternalcompliancework.Inthereportingperiodthecomplianceorganizationwasadjustedinlinewith thenewGroupstructureresultingfromtheACTproject.BothcentrallyatThyssenKruppAGandinthebusinessareasand regions,thechiefcomplianceofficerwillbesupportedinthefuturebyaround60full-timecomplianceofficersworldwide. Theywilladvise,informandeducateemployeesaroundtheworldaboutimportantlegalrequirementsandinternalpolicies; theirworkwillalsoincludeperformingproactivecomplianceauditsandinvestingsuspectedcasesofnon-compliance.The compliance officers in turn are supported in the business areas and Group companies by a network of some 320 compliancemanagers– generallymanaging directorsofGroupcompanies–whoensurethatthecomplianceprogramis implementedatoperatinglevelintheirareasofresponsibility.

Wearecontinuingtointensifyourcomplianceeffortsaftertheendingoftheamnestyprogram.Akeyaspectofthisarethe trainingprogramscarriedoutbythecomplianceofficers,inwhichouremployeeslearnaboutcompliancerequirementsand risksaswellaspossiblesanctions.Thistrainingisthecentralcomponentofthe"Inform"pillarofourcomplianceprogram. Inthe reportingyearmorethan2,400employeesworldwidetookpartinextensiveface-to-facetrainingoncartellawand corruption prevention. In particular with the new regional compliance officers and the compliance departments in the businessareas,wewillsignificantlyincreasetheselocaltrainingactivitiesinthecomingyear.Inthethirdcycle oftheelearning program initiated in August 2012, 41,883 employees ?anticorruption@ and 36,089 employees ?antitrust@ had successfullycompletedthetrainingcoursesasoftheendofthereportingperiod.Thatmeansthatbasedonacut-offpoint ofeightweeksafterregistration,theprogramhascurrentlybeencompletedby98.5%ofthoseregistered.Oursubsidiaries inthe USA and Canada havetheir own programs. Also, in September 2013 a global e-learning programfor compliance managerswaslaunched,aimedatinformingthemabouttheirroleinimplementingthecomplianceprogramintheoperating units.Inaddition,wecarryoutregularwebinarsoncurrentissuesandkeepemployeesinformedwithinternalnewsletters.

We also provide compliance advice on key business transactions, e.g. in connection with major projects or on the engagementofintermediaries.Forthistheemployeescancontacttheircomplianceofficersinthebusinessareas,regions andatCorporateorcallourcentralhotline.Thecomplianceofficersadvisetheoperatingunitsonintegratingcompliance intotheirbusinessprocesses.

The"identify"pillarofthecomplianceprogramfocusesonregularlyreviewingcriticalbusinessoperationsbasedonariskoriented, structured, audit process. An additional element in the identification of compliance risks is our whistleblower system.Alongsidethe optionsof directlycontactingasupervisororthecompliance department,thisprovidesemployees withafurtherchannelforreportingpossibleinfringementsoflawsorpolicieswithoutrevealingtheiridentity.Heretoothe focusisonantitrustandanticorruptioncompliance.Informationsubmittedviaanonlineformorthehotline–whichcanbe contactedfromanywhereintheworldandistoll-free–isforwardedforfurtherinternal review.InadditionThyssenKrupp hasestablishedanombudsmanasafurthercontactforemployeeswishingto reportinformation.Theombudsmanworks onbehalfofThyssenKruppbutisauthorizedtopassoninformationwithoutnamingtheinformant.Regardlessofthesource, allinformationconcerningmisconductissystematicallyfollowed upinaninternal review.Itisensuredthatnoemployee suffersdisadvantagesasaresultofreportinginformationingoodfaithtotheombudsmanorwhistleblowersystem.Third parties?customers,suppliers,etc.@canalsocontactthewhistleblowerhotlineortheombudsman.

Thethirdpillar"reportandact"signifiesintensivecompliancereportinginallthreedimensionsoftheThyssenKruppmatrix. In the event of proven cartel law infringements or corruption, we systematically impose sanctions on the employees concerned.

Our experience shows that the basis for successfully implementing the compliance program is a corporate culture that standsforvaluessuchasopenness,transparencyandcredibility.Theactionsofthecompanyanditsemployeesareguided by these values – as part of the corporate responsibility of managers for compliance. ThyssenKrupp has a clear commitmenttoensuringcompliancewiththelawandinternalpolicies:violations,particularlyofantitrustandanticorruption rules,willnotbetoleratedunderanycircumstances.

Macroandsectorenvironment

Economicenvironment

Onlymoderateeconomicgrowth

Theglobaleconomyhasgrownveryslowlyin2013.Weakeconomicactivityinsomeeurozonecountries,theslowpaceof growthinNorthAmerica,andtherelativelyslowgrowthoftheemergingeconomiessuggestglobalGDPgrowthofonly2.7% in2013.ThanksmainlytobetterprospectsintheeurozoneandNorthAmerica,globalGDPisexpectedtoincreaseby3.6% in2014.

GDP inthe industrialized nations isforecastto grow by only 1.1% in 2013. This low rate of expansion ismainly dueto declining growth intheeuro zone.Manyeuro zone countries only came out of recession inthe 2ndquarter 2013.Fiscal consolidation,weakerconsumerspendingandcautiousbusinessspendingwerethemaincontributoryfactors.Despitethe economic stabilization inthe 2ndhalf ofthe year, euro zone GDP is expectedtofall by 0.6% in 2013 as a whole. With consumer and business spending higher again, 2014 should see GDP growth of 0.6%. The German economy showed a markedimprovement.Consumerspendinginparticular,aswellashighergovernmentspending,isexpectedtoresultinGDP growth of 0.5% in 2013.Withconsumerspending remaining high and businessspending increasing again,GermanGDP growthshouldaccelerateto1.5%in2014.

Growth in the US economy in 2013 has been very subdued, mainly due to public spending cuts. Nevertheless, GDP is expectedtogrowby1.5%in2013thankstohigherconsumerandbusinessspending.Furtherincreasesinconsumerand businessspendingwillalsomakethebiggestcontributionstoexpectedGDPgrowthof2.7%in2014.

TheweakeconomicsituationinEuropeandNorthAmericaisalso afactorintheslightlyslowerpace of growthinsome emergingcountries.Overallthesecountriesareexpectedtogrowby4.7%in2013;growthof5.3%isexpectedin2014in thewakeoftheglobaleconomicrecovery.IndiaandChinaremainregionalgrowthcenters,evenifthepreviouslyhighpace ofexpansioninthesecountriesisslowing.ChineseGDPisexpectedtogrowby7.5%in2013and7.8%in2014,whilethe Indianeconomyshouldgrowby4.5%and5.5%,respectively.

Situationinthesectorsremainsmixed

Automotive – The global auto market has grown slowly in 2013, with worldwide production of cars and light trucks increasingbyalmost3%year-on-yeartoover81millionunits.Howevertherehavebeenpronouncedregionaldifferences. Output in Western Europe is expectedto decline bymorethan 1%to 13.5million vehicles duetofalling demand inthe southerncountries.Withnewregistrationsandexportslower,theGermanautoindustrywillproduce5.6millionvehicles,1% fewerthanin2012.IntheUSA,strongpent-updemandwillleadtoan8%productionincreaseto11.0millionvehiclesin 2013.China isexpectedto produce 19.4millionvehicles, 12%morethan ayearearlier. Thanksto governmentstimulus measures,productioninBrazilisexpectedtoincreasesharplyby9%to3.4millionvehicles.

Theautomarketlookssettopickupspeedin2014.Globalproductionofcarsandlighttrucksisexpectedtoincreaseby 4.4% to 84.9million units. Western Europe should show gains; with demand improving, auto production is expected to increasebyalmost5%to14.2millionunits.Aslightincreaseoflessthan1%to5.6millionvehiclesisforecastforGerman automanufacturers.ProductionintheUSAisexpectedtoriseby1%to11.1millionvehicles.Strongergainsareexpectedin China,where production could increase bymorethan 5%to 20.5million vehicles. Afterthe scaling back of government stimulusmeasures,Brazilianautoproductionwillgrowbyonly2%to3.5millionunits.

	2013*	2014*
Vehicleproduction,millioncarsandlighttrucks
World	81.3	84.9
WesternEurope/Turkey	13.5	14.2
Germany	5.6	5.6
USA	11.0	11.1
Japan	9.1	8.9
China	19.4	20.5
Brazil	3.4	3.5
Machineryproduction,real,in%versusprioryear
Germany	+1.0,	3.0
USA	6.0	2.5
Japan	2.0	7.0
China	6.0	9.5
Constructionoutput,real,in%versusprioryear
Germany	+0.5,	1.5
USA	3.6	7.6
China	9.0	8.4
India	5.3	8.1
Demandforfinishedsteel,milliontons
World	1,475.0	1,523.0
Germany	37.6	38.8
USA	96.9	99.8
China	699.7	720.7

Importantsalesmarkets

*Forecast

Machinery–Themachineryindustryalsoshowsamixedregionalpicture.ThesituationintheEuropeanmachineryindustry isrelativelysubdued.InmanyEUcountriesmachineryoutputdeclinedagainin2013.Withtheeconomicclimateimproving, somecountriesshouldreportpositivegrowthratesin2014.TheordersituationintheGermanmachineryindustryhasnot improved in 2013to date; ordersfrom abroad have stagnatedwhile domestic orders have declined. However, ordersfor elevatorsandescalatorshave beenhigheryear-on-yearthanksmainlytohigherforeign demand.DemandintheGerman engineering andconstructionsector has improvedsincethe end of 2012.Chemical engineeringcontractors in particular haveprofitedfromseveralmajorcontractsinconnectionwithshalegasproductionintheUSA.Inviewofgenerallysubdued investmentactivityinmanycountries,productionlevelsinGermany'sexported-orientedmachinerysectorin2013willbe downslightlyyear-on-year.In2014Germanmachineryoutputisexpectedtoriseby3%duetotheanticipatedimprovement inthegeneraleconomicclimate.

TheUSmachinerysector continuesto profitfrom higher businessspending andthe positivestimulus of low gas prices. Machinery production is therefore expected to increase by 6% in 2013; further growth of 2.5% is possible in 2014. Japanesemachinerymanufacturersexpectroughly2%productiongrowthin2013andshouldgainanother7%in2014.In Chinaproductiongrowthwillslowto6%in2013butaccelerateto9.5%in2014.

Construction–Theconstructionindustryisshowingsignsofweakness,particularlyinEurope.Constructionoutputdeclined again in most western and eastern European countries in 2013. Construction activity in eastern Europe is expected to decreaseby1%in2013butincreaseby3%in2014.ConstructionoutputinwesternEuropewillprobablydeclineby2%in 2013duetotheoveralleconomicsituation.LargerdeclineshavetakenplaceinthecountriesofsouthernEurope.Aslight improvement in construction activity in Western Europe is expected for 2014, with growth of 1%. German construction industryoutputfellinitiallyin2013mainlyduetounfavorableweatherconditions.Despitehigherhousingandpublicsector constructionordersitisveryquestionablewhethertheorderbacklogcanbedischargedandhaveanimpactonoutputin 2013.Germanconstructionoutputwillthereforeprobablyfallslightlyin2013beforegrowingatarateof1.5%in2014.

IntheUSAtherealestatemarkethasstabilizedfurther.Demandforhousingandhousepricesareshowingasteadyupward trend.Againstthisbackgroundconstructionoutputisexpectedtogrowbyroughly4%in2013andmorethan7%in2014. TheconstructionsectorremainsstronginIndiaandChina,withoutputinthesecountriesexpectedtogrowby5%and9% respectivelyin2013andby8%inbothcountriesin2014.

Flatcarbonsteel–TheEuropeanmarketforflatcarbonsteel remained difficultin2013.With productioninmajorsteelusingsectorsdeclining,demandforsteelremainedveryweak.Whiledemandinthefirstfewmonthsoftheyearincreased moderately dueto restocking,thiseffectwas largely absent inthemonthsthereafter. Steel prices onthe Europeanspot markets,whichrecoveredslightlyinthe1stquarterof2013,cameunderheavypressureagainafterwards;however,there weresignsofstabilizationinthecourseofthe3rdcalendarquarter,notleastduetorisingrawmaterialprices.Overthefull yeardemandforfinishedsteelintheEUwillprobablyfallbyaround3%.SteeldemandontheUSmarketwasloweryearon-yearinthe1sthalfof2013,partlyduetodestocking,butoverthefullyearwillprobablybeslightlyhigher.Steelprices slipped initially but recovered markedly in early summer. Temporary plant shutdowns by some North American steel producerssupportedthistrend.

Withtheworld economy expectedto improve moderately,the global steelmarket is setfor growth. Globalfinished steel demand is expected to rise by over 3% to 1.52billion metric tons in 2014, compared with 2% in 2013. In the EU the economicprospectshavebrightenedslightly,despitecontinuingrisksandastilldifficultmarketenvironment.Comingfrom alowlevel,steeldemandisexpectedtoincreasebyroughly3%nextyear.Germansteeldemandisalsoforecasttoincrease byatleastthesameratetoroughly39millionmetrictons.IntheUSAsteeldemandwillclimbby3%.Demandgrowthin many emerging countries could continue to accelerate slightly in 2014, but growth in China is forecast to slow to 3%, comparedwith6%in2013.

Salesregionsandcustomergroups

ThemostimportantsalesmarketforThyssenKruppin2012/2013wasagainGermany;asinthepreviousyear31%ofour productsandserviceswenttocustomersthere.Theshareofsalestothe restofEuropedecreasedslightlyto28%dueto thesaleofourstainlesssteelbusiness.SalestocustomersinNorthandCentralAmericaaccountedfor21%,slightlyless thanayearearlierduemainlytothesaleofWaupaca.TheshareofsalestoSouthAmericaincreasedtoover5%,primarily thanksto higher sales at Elevator Technology and Steel Americas. Asia/Pacific's share of sales increased slightlyto just under13%duetostrongsalesgrowthatElevatorTechnology.TheshareofsalestocustomersinAfricawasrelativelylow atjustover2%butslightlyhigherthanayearearlierduetosalesincreasesatIndustrialSolutions..

Salesbyregion

million€	2008/2009	2009/2010	2010/2011	2011/2012	2012/2013	Change in%
Germany	13,031	13,933	16,153	14,413	12,168	+16,
Europe+excl.Germany,	13,636	13,928	15,868	13,816	11,275	+18,
NorthandCentralAmerica	6,480	6,535	8,154	10,048	8,364	+17,
SouthAmerica	1,377	1,731	2,322	2,169	2,052	+5,
Asia/Pacific	4,342	5,013	5,618	5,695	5,061	+11,
Africa	1,697	1,481	977	904	862	+5,
Worldwide	40,563	42,621	49,092	47,045	39,782	+15,

The auto industry remained ThyssenKrupp'smost important customer group, accountingfor 24% of sales. The share of salestothetrading and particularlythe steel and related processing sectors decreased year-on-year,mainly duetothe disposalofourstainlesssteeloperations.

Procurementmarkets

Materialsexpensebybusinessarea

million€	2011/2012	2012/2013	Change in%
ComponentsTechnology	4,252	3,473	+18,
ElevatorTechnology	2,074	2,289	10
IndustrialSolutions	3,295	3,672	11
MaterialsServices	10,919	9,613	+12,
SteelEurope	7,542	6,464	+14,
SteelAmericas	1,753	1,555	+11,
Corporate	63	81	29
Materialsexpenseofthebusinessareas	29,898	27,147	+9,
Consolidation	+2,698,	+2,242,	—
Materialsexpenseofthecontinuingoperations	27,200	24,905	+8,
StainlessGlobal	5,372	1,208	+78,
Consolidation	+829,	+178,	—
MaterialsexpenseoftheGroup	31,743	25,935	+18,

TheGroup'smaterialsexpensedecreasedyear-on-yearby18%to€25.9billion.Inthecontinuingoperationsitfellby9%to €24.9billion. At the same time materials expense as a percentage of sales decreased slightly from 67% to 65%. The percentagesofthebusinessareasrangedbetween37%atElevatorand83%atSteelAmericas,asshownbythegraphic below.TogetherwiththeGroupcompaniesourglobalpurchasingorganizationsecuredthesupplyofmaterialstoourplants withoutdeliverybottlenecksinthereportingyear.

Naturalgasandelectricity

SpotmarketpricesfornaturalgasinGermanyin2012/2013wereonaverage12%higherthanayearearlier,mainlydueto the long winter. However, ThyssenKrupp profited from favorable price guarantees for its German plants. German and international gas prices remained at a high level. The only exception wasthe USA, where gas prices were considerably lowerduetoincreasedproductionofshalegas.Globallythemarketissplitthreeways,withthehighestnaturalgaspricesin Asia,thelowestintheUSAandEuropeinthemiddle.

Electricitypricesontheforwardandspotmarketscontinuedtofall.However,theincreaseintherenewableenergylevyfrom 2012to2013wasroughlytwiceasbigasthedeclineinpricesontheforwardmarket.ElectricitycostsinGermanyarestill at the top end of the European scale. This is due to politically imposed burdens such as the renewable energy levy, increased electricity taxes, subsidies for cogeneration, compensation for network charge exemptions, liability for the delayed grid connection of offshore wind turbines and rising network charges. These costs and the likewise regulated networkchargesnowaccountforalmosthalfofelectricityprocurementcosts.

Emissionstrading

Duetothereliningofblastfurnace9,actualCO2emissionsincalendar2012wereonly17.4milliontons,sotheemission allowances allocated under applicable law atthe beginning of 2012 of 21.4milliontonsCO2wereenough. Theemission allowancesnot requiredaretobeusedinthethirdtradingperiodoftheEUEmissionsTradingSystemC2013–2020D.We havealreadyboughtEUemissionsallowancestohedgeourselvesforthisthirdtradingperiod.

Opportunitiesandrisks

Opportunityreport

OpportunitymanagementatThyssenKruppcomprisesthesystematicmanagementofopportunitiesintheGroup.Strategy andControllingdepartmentsworkcloselytogethertoensureintegratedmanagementprocesses.TheStrategicDialogueis thestructuredprocessinwhicheachyearinallbusinessareasopportunitiesarisingfromrelevantmarketandtechnology trendsaresystematicallyaddressedanddiscussed.ThisstandardizedGroupwideprocedureisalsothebasisfortheGroup's StrategicWayForward.

FollowingonfromtheStrategicDialogue,allbusinessareasrecordopportunitiesandrisksinoperationalplansandmonthly reportstoallowbetterassessmentofthecurrentearningsandliquiditysituationoftheindividualbusinesses.

In addition, in a region profile we systematically analyze the regions in which we see the biggest opportunities for ThyssenKrupp in the future. We step up our cross-business regional activities in these regions accordingly. The management of our opportunities is a task shared by all the Group's decision makers – from the Executive Board of ThyssenKruppAGtothebusinessareamanagementboardsandmanagementsoftheGroupcompaniesthroughtoregional officersandprojectleaderswithmarketresponsibility.

StrategicopportunitiesfortheGroup

IntheGroup'sStrategicWayForwardwefocusoncurrentglobalgrowthdrivers.Wecontinuouslyevolveourcompanyina constantlychangingenvironmentinordertomeettheglobalchallengesofthefuturewithinnovativesolutions.Indeciding onthefutureofourbusinessesintheGroupwelookatwheretheGroupcanprofitfromtheglobaltrendsofdemographic change,urbanizationandglobalization,butwithoutneglectingconstraintssuchasthefinitenatureofnaturalresources.

With our engineering expertise in "Mechanical", "Plant" and "Material" we enable our customers to serve the need for "more"withbettersolutionsandsogainacompetitiveedge.Thisinturnimpactspositivelyonourownperformance.

Intheeventofunfavorableeconomicconditionsandalack offinanciallatitudeitwouldtakeuslongerto utilizeexisting opportunities.Theassociatedrisksaredetailedintheriskreportonpages78-88.

OurcorporateprogramimpactcreatestheframeworkforourStrategicWayForwardandplaysamajor role,togetherwith business-specific programs, in increasing the efficiency of the Group and reducing costs across all business areas and corporate functions. For instance the future Group model is currently being defined in a large-scale project and our organizationalstructureisbeingevolvedtosupportthestrategicexpansionofouractivities.

Details of our corporate strategy including impact are contained inthe section "The Group's Strategic Way Forward" on pages31-36.

Operatingopportunitiesofthecontinuingbusinessareas

ComponentsTechnology–Growingglobaldemandforpersonalmobilityandfreighttransportationisakeybusinessdriver fortheComponentsTechnologybusinessarea.Forusasoneofthemajorengineeringpartnersandcomponentandmodule suppliers to the auto industry, further growth opportunities are arising in these sectors. This applies particularly to the emergingmarketsinNorthandSouthAmericaaswellasAsia.WithnewproductionsitesinMexico,China,IndiaandBrazil wehavepositionedourselveswellinthesemarkets.Atthesametimeourproductscansupportthestrongtrendtowards efficientandenvironmentallyfriendlymobility.Challengingpoliticaltargetsworldwideto reducegreenhousegasesinthe autosectoraddtothisneed.Inthe relevantareasofweight reduction,optimizationofinternalcombustionenginesand electrificationofdrivetechnology,weofferourcustomersstate-of-the-artsolutionsandareworkingtoextendourlead. Alreadyourcustomersincludealmostallthemajorcarandtruckmanufacturers.

Inthewindindustry,considerablegrowthpotentialliesinoffshoreinstallations.Thetargetedshareofrenewableenergiesin Europe'senergysupplycannotbeachievedwithouttheexpansionofoffshorewindpower.Thetrendtowardseverbigger andmoreefficientturbines reinforcestheneedforhigh-performancecomponents.Intheareaofonshoreturbineswesee new growth impetus coming from wind farm repowering – the replacement and upgrading of older and smaller wind turbines.

ElevatorTechnology–Thebusinessareahasforyearsbeenoneoftheworld'sleadingsuppliersofelevators,escalators, moving walks, passenger boarding bridges and stair and platform lifts. Thesemarkets offer attractivegrowth and profit opportunities as a result of increasing globalization and urbanization.Our broad product range,which includes standard systems, custom solutions as well as full service and modernization packages, can open up new market opportunities. Rigorous implementation of the measures to improve efficiency under the impact program will additionally increase the competitivenessofElevatorTechnology.

IndustrialSolutions–ForIndustrialSolutionsweseegoodgrowthopportunitiesontherelevantmarketsdespitegrowing competition. Shale gas in North America is one such opportunity for our Process Technologies unit. We expect the full integration of our core plant technology operations planned for early 2014 in the form of the merger of Resource Technologies,ProcessTechnologiesandThyssenKruppIndustrialSolutionstoincreaseourcompetitivenessandcreatethe basistoexploitglobalgrowthopportunitiesinourmarketsevenmoreeffectively.

In the marine sector too we see good opportunities for sustainable growth in our target markets for conventional submarines and naval surface ships. Our high order backlog gives us a strong workload andthe opportunitytofurther developourcoreproducts.Theprojectoutlookforthecomingyearsisgood–particularlyontheexportside.Toincrease operating efficiency the activities of Blohm+Voss Naval and Howaldtswerke Deutsche Werft were combined into ThyssenKruppMarineSystemsinthereportingyear.

Materials Services – Services are gainingfurther importancefor Materials Services as producers and processorsfocus more strongly on their core business. The opportunities for the business area arise from customer orientation, specific marketandsectorknow-how,globalconnectionsandbroadexpertiseinprojectmanagement.Undertheimpactprogram MaterialsServiceshasdefinedextensivemeasurestofurtherimprovethecostsituation.Operatingopportunitieswillderive fromthesystematicandsustainedimplementationofthecorrespondinginitiatives.

Steel Europe – The business area is focused on the market for premium flat carbon steel. However, the framework conditionsfortheentireEuropeansteelmarkethavechangedincreasingly.ToidentifynewopportunitiesforSteelEurope under these changed conditions, the optimization program "Best-in-Class Reloaded" was initiated in the reporting year. Opportunitiesderivefromtherigorousimplementationoftheprogram'smeasurestoincreasecustomerfocus,improvethe cost position and strengthen our technological and logistical capabilities, as well as from the expansion of attractive customersegments.The goalistosignificantlyimprovetheearning powerofthe businessarea by 2014/2015soitcan earnmorethanitscostofcapitalonasustainablebasis.

Despite the changed conditions, the global trends of urbanization, increasing mobility and more efficient use of scarce resourcescontinuetoapply.Inthecomingyearsthesetrendsofferopportunitiesfortheuseofintelligentsteelproducts, whichalreadyfeatureintheproductandserviceportfoliooftheSteelEuropebusinessarea.

SteelAmericas–Basedontheagreedtransactionweareconfidentthatinthecomingyearswecanbuildontheoperating improvementsalreadyachievedatSteelAmericasinthepastfiscalyearandbetterexploitthemarketopportunitiesarising fromthechangedparameters.Themeasurestofurtheroptimizetechnicalperformanceaswellasourinitiativestoenhance efficiency will contributetothis. In addition, higher capacity utilization of our Brazilian steel mill duetothe slab supply contractandstrongerpenetrationoftheslabmarketsinSouthandNorthAmericawillhaveapositiveimpact.Weexpect furtherpositiveeffectsfromreducedexchangerate risksduetoincreasingslabsuppliestotheBrazilianmarketandfrom the use of input tax credits. At the same time a weaker Brazilian real should aid the competitiveness and business performanceofThyssenKruppCSA.

Riskreport

RiskmanagementatThyssenKruppembraces allmeasuresforthesystematicandtransparentmanagement of risks and through its integration with controlling processes is an integral part of value-based corporate governance. Thanks to continuousfurtherdevelopment,theriskmanagementsystemnowgoesfarbeyondtheearlyidentificationofrisksrequired by law. All requirements placed onthe system bythe Executive Board andthe Supervisory Board Audit Committee are implementedpromptly.

We continuously improve our methods and tools to identify, assess, manage and report risks. Standardized risk managementprocessesensurethattheExecutiveBoardandSupervisoryBoardareinformedpromptlyandinastructured wayabouttheGroup'scurrentrisksituation.However,despitecomprehensiveriskanalysis,theoccurrenceofriskscannot be systematically ruled out. From the current perspective the Group's risks are contained and there are no risks that threatentheGroup'sabilitytocontinueasagoingconcern.

Riskpolicy

TheGroup'sriskpolicyguidelinessettheframeworkformeetingtherequirementsofproper,consistentandforward-looking risk management and its integration into corporate strategy. The organizational anchoring of risk management in operational and strategic controlling facilitates active and holistic Group risk management integrated with planning and reporting processes. Risk management also includes challenging and systematically analyzing the business models, strategiesandconcretemeasuresoftheoperatingentities.

TheaimsofriskmanagementatThyssenKrupparetoincreaseriskawarenessandestablishavalue-basedriskcultureat allcorporatelevels.Risksandopportunitiesare analyzedtransparentlyandaresystematicallyincorporatedinto business decisions. Responsible risk management also involves shifting risks outside our core processes and competencies, reducingthemoravoidingthemcompletely,whichhoweverdoesnotruleouttheoccurrenceofindividualrisks.Variousrisk management measures and appropriate balance sheet provisions for risks ensurethatthe riskstaken inthe Group are coveredandmonitored.

Riskmanagementsystem

Corporate riskmanagement hasthetask of continuously developingthe riskmanagementsystemtowards best practice standardandadaptingittonewinsightsandrequirementswhereneeded.InthecurrentGrouppolicyonriskmanagement we haveformulated binding requirementsforthe riskmanagement process and definedthe individual riskmanagement toolsonastandardGroupwidebasis.

AglobalIT riskmanagementtoolusedinallGroupcompaniesforpreparinganintegrated riskmapensuresthatearnings andcash risks are recorded and reportedthrough aseries of approval and aggregation processesviathe business area management boardstoGroup level. The requirements inthe riskmapping process includeformulating riskmanagement measuresfortheindividualidentifiedandassessedrisksandsystematicallymonitoringtheirimplementation.

Theopportunitiesandrisksnotincludedinthemonthlyupdatedprojectionsorinthebudgetarepartofstandardbusiness area reportingandmakeanimportantcontributiontointegratedbusinessmanagement duringtheyearandtocorporate planning.Aspartoftheplanningprocessandalsoonanadhocbasisweanalyzeearningsandcashcorridorsonthebasis of variousscenarios aswell asmacroeconomicconcentration risks based onGroupwide riskscenarios. Ad hoc risks are communicated immediately to the risk management officers and are also documented via the established reporting channels.

Risks already recognized via balance sheet provisions are also the subject of standardized analyses and risk reporting, ensuringsystematicriskmanagementfortheseriskstoo.

The material Group risks identified in the risk maps as well as the results of the analyses of risk scenarios and risk provisions are discussed and validated in meetings of the interdisciplinary risk committee held once every quarter and chaired by the CFO. In this way we systematically prepare subsequent risk reporting to the Executive Board and Audit Committee. The risk committee meetings are attended by all Group officers responsible for governance, risk and compliance.Thisinterdisciplinaryapproachatcommitteelevelmakesakeycontributiontoimprovingcorporategovernance processesintheGroup.

TheGroup'sriskmanagementsystemissummarizedinthefollowinggraphic:

Weregularlytrainouremployeesonindividual riskmanagementelementsandalsouseourGroupwideweb-basedIT risk managementtooltoprovidetargetedinformationandtrainingmaterial.InternalAuditingusestheinformationfromtherisk mapsforitsrisk-orientedauditplanning.Theinternalauditsstructuredonthisbasiscontributetotheefficientmonitoringof the risk management system and deliver insights to increase the quality of the information and further improve risk managementintheGroupasawhole.

ControlandriskmanagementintheGroupaccountingprocess

TheinternalcontrolsystematThyssenKruppcomprisesalltheprinciples,processesandmeasuresintroducedwiththeaim ofensuringthesecurityandefficiencyofbusinessmanagement,the reliabilityoffinancial reportingandcompliancewith lawsandpolicies.Underthecorporateprojectdaprohfordataandprocessharmonizationwearecontinuouslydeveloping theinternalcontrolsystemusingastandardizedriskcontrolmatrix.

Various process-integrated and process-independent monitoring measures in the accounting process help ensure that implementedcontrolsallowcompliantfinancialreportingdespitepossiblerisks.

A standard, regularly updated accounting policy for the consolidated financial statements is available to all involved employeesviaaninternalinternetplatform.ForconsolidationweuseaGrouptoolbasedonstandardsoftware.Inthisway we ensure consistent procedures and minimize possible risks of misstatements in the Group's accounting and external reporting.

ThyssenKrupphasclearlydefinedthesub-processesinvolvedinfinancialreportingandassignedclearresponsibilitiesfor them. An appropriate segregation offunctions and application ofthe dual-control principle reducethe risk offraudulent conduct.

Corporate Function Controlling, Accounting&Risk is responsible for the preparation of the consolidated financial statements and issues binding instructions to the local units with regard to content and timing. In this way we ensure consistentaccountingpracticesthroughouttheGroupwithminimumscopefordiscretioninconnectionwiththerecognition, measurement and reporting of assets and liabilities. Group-owned shared service centers support the local units in preparinglocalfinancialstatements.Regulartrainingtakesplaceforallemployeesinvolvedintheaccountingprocess.

We perform regular central system backups onthe IT systems used inthe consolidation process in orderto avoid data losses and system failures. The security strategy also includes system controls, manual spot checks by experienced employees,andcustomauthorizationsandaccesscontrolstopreventmisuseoffinancesystems.

Corporate Function Internal Auditing regularly checks the effectiveness of the internal control and risk management systemsandisthereforeintegratedintheoverallprocess.

By means of these coordinated processes, systems and controls we ensure that the Group's accounting is reliable and complieswithIFRS,GermanGAAPDHGBEandotherrelevantstandardsandlaws.

Risktransferthroughcentralserviceprovider

As central service provider ThyssenKrupp Risk and Insurance Services again handledthe Groupwidetransfer of risksto insurersinthereportingyear.Thescopeandstructureofinsurancecoveraredeterminedonthebasisofriskassessments in which insurable risks at the Group companies are identified, evaluated and reduced or removed through specific protection plans.Depending ontheGroup's risk-bearingabilityweagreeappropriate deductiblesforindividualclasses of insurance.

BindingstandardsareinplaceforallGroupcompaniestokeepriskpreventionatasustainableandappropriatelyhighlevel. Thesestandardswere developed byexpertsfrom allareas ofthe Group underthe leadership of ThyssenKruppRisk and InsuranceServicesandareupdatedonan ongoingbasis.Internal andexternalauditors regularlycheckcompliancewith thesestandards.

Tolimitthe riskofinsurerinsolvency,wespreadthe riskovernumerousinsurerstakingintoaccountthe ratingsgivento theseinsurersbyrecognizedagencies.

Financialrisks

Central responsibilities of ThyssenKruppAG as parent company include the coordination and management of financial requirementswithintheGroupandsecuringthefinancialindependenceofthecompanyasawhole.Tothisendweoptimize Groupfinancingandlimitthefinancialrisks.

Defaultrisk–Weenterintofinancialinstrumenttransactionsinthefinancingareaonlywithcounterpartieswhohaveavery high credit standing and/or are covered by a deposit guarantee fund. Transactions are concluded only within specified counterparty risklimits.Outstandingreceivablesanddefaultrisksinconnectionwithsuppliesandservicesareconstantly monitoredbytheGroupcompanies;insomecasestheyareadditionallyinsuredundercommercialcreditpolicies.Thecredit standingofkeyaccountcustomersismonitoredparticularlyclosely.

Liquidity risk – To secure the solvency and financial flexibility of the Group at all times, we maintain long-term credit facilitiesandcashfundsonthebasisofamulti-yearfinancialplanningsystemandaliquidityplanningsystemonarolling monthlybasis.ThecashpoolingsystemandexternalfinancingsareconcentratedmainlyonThyssenKruppAGandspecific financing companies. We usethe cash pooling systemto allocate resourcesto Group companies internally accordingto requirements.

Marketrisk–Variousmeasuresareusedtomitigateoreliminatethe riskoffluctuationsinthefairvaluesorfuturecash flowsfromfinancialinstrumentsduetomarketchanges.Thesemainlyincludeoff-exchangetradedforeigncurrencyforward contracts, interest rate swaps, interest-rate/foreign currency swaps and commodity forward contracts with banks and commercialpartners.Tohedgeagainstcommodityprice riskswealsouseexchange-tradedfutures.Theuseofderivative financialinstrumentsisextensivelymonitored,withchecksbeingcarried out onthe basis of policiesintheframework of regularreporting.

Currencyrisk–Tocontaintherisksofournumerouspaymentflowsindifferentcurrencies–inparticularinUSdollars–we have developed Groupwide policiesforforeign currencymanagement. All companies ofthe Group are requiredto hedge foreigncurrencypositionsatthetimeoftheirinception;companiesbasedintheeurozonehedgeviaourcentralclearing office.Translationrisksarisingfromtheconversionofforeigncurrencypositionsaregenerallynothedged.

Interest rate risk – To cover our capital requirements we have procured funds on the international money and capital marketsindifferentcurrenciesandwithvariousmaturities.The resultingfinancialliabilitiesandourfinancialinvestments are partiallyexposedto risksfrom changinginterest rates. Tomanagethese risks, regularinterest rate riskanalysesare prepared,theresultsofwhichfeedintoourriskmanagementsystem.

ThyssenKruppAG has entered into agreements with banks which require that the ratio of net financial debt to equity *gearing+intheconsolidatedfinancialstatementsmustnotexceed150%attheclosingdate*September30+.

AtSeptember30, 2013theGroup's gearingwastemporarily increased, primarily as a result of impairment charges, and stoodat200.6%.Thegearinglimitof150%agreedinsomecreditagreementswasthereforeexceededasofSeptember30, 2013.However,agreementshadpreviouslybeenreachedwiththefinancialpartnersinvolvedtowaivethegearingcovenant testatSeptember30,2013,sothesefinancialinstrumentsremainavailableafterSeptember30,2013despitethegearing limitbeingtemporarilyexceeded.

At September30, 2013the Group's available liquidity amountedto €7.3billion, consisting of €3.8billion cash and cash equivalents and €3.5billion undrawn committed credit lines. The available liquidity offers enough scope to cover debt maturities.Thegrossfinancialliabilitiesrepayableinfiscalyear2013/2014amountto€1.9billion.

Risksassociatedwithdisposals,acquisitionsandrestructurings

Continuous optimization of the Group portfolio is one of the key pillars of our Strategic Way Forward. Active portfolio management in connection withthe disposal or acquisition of businesses is associated with risks. The same appliesto restructuringswithinourexistingbusinesses.Wemonitortheassociatedriskscontinuouslyandrecognizeprovisionswhere required.

OnNovember 29, 2013 ThyssenKruppentered into an agreementwith a consortium of ArcelorMittal andNippon Steel& SumitomoMetal Corporation onthesale ofthe ThyssenKrupp SteelUSA rolling andcoating plant inCalvert/Alabama.In additionitwascontractuallyagreedthattheconsortiumwillpurchase2milliontonsofslabsperyearfromThyssenKrupp CSAupto2019.Thislong-termslabsupplycontractforThyssenKruppCSAisafirstmajorstepinthedecouplingofthetwo plantsandwillalsoenableThyssenKrupptofulfillthecommitmentagreedwithValetopurchaseslabsfromThyssenKrupp CSA.InthiswaytheGroupwillbeabletoreducetherisksfromtheoriginallyintendedcross-currency-areatandemmodel aswellaspricerisksinconnectionwithmarketentryintotheUSA.Theclosingoftheagreementsissubjecttoapprovalby thecompetentregulatoryauthorities.

FollowingthedisposalofStainlessGlobalThyssenKruppisexposedtorisksfromthe29.9%shareholdinginOutokumpuas well as from the financial receivable Dvendor loanE created in the transaction, a 364-day credit line, a supplier finance backupfacilityandcontingencies.MoreinformationonthisisprovidedinNote23.Thesearevalue risksanddefaultrisks dependingonOutokumpu'sfinancialsituation.

Inthe context ofthe necessary refininancing ofOutokumpu ThyssenKruppAGsigned a contractwithOutokumpuOyj on November29,2013transferring100%ofthesharesofVDMandASTandofothersmalleractivitiesinthestainlesssteel servicecentersectorto ThyssenKrupp.In return ThyssenKrupp'sfinancial receivablefromOutokumpuOyjinthe nominal amountincludingcapitalizedinterestof€1,269million,whichhadabookvalueof€969millionatSeptember30,2013,was transferredtoOutokumpu.ThecommitmentresultingfromthesaleofInoxumtoOutokumputooffsetanynegativefinancial consequences for Outokumpu under merger control requirements up to an amount of €200 million therefore ceases to apply.

TomeettherequirementsoftheEUCommissionThyssenKruppAGwillfullydivestits29.9%interestinOutokumpuOyj.In expectationofacapitalincreaseatOutokumputhesaleofthesharesinOutokumpuOyjislikelytoleadtoalossofover €270 million on the investment's book value at September 30, 2013. This will be offset by cost reductions from the elimination of recognized risks. With the closing of the transaction all financial links with the Outokumpu group will be ended.

Thetransactionissubjecttotheapprovalofthecompetent regulatoryauthoritiesandtothecooperationandapprovalof theshareholders,banksandcreditorsfortheoverallplanforasustainablerefinancingofOutokumpu.Ifthetransactionis notcompleted,thevaluerisksanddefaultrisksmentionedabovewillcontinuetoapply.

Orderrisks

Wefrequentlyexecutemajorordersinvolvingahighdegreeofcomplexityandlongprojectleadtimes;costsoverrunsand/or delaysinindividualprojectphasescannotberuledout.Tominimizetheseriskswecontinuouslyimproveourmanagement systemssothatweareawareofcurrentorderstatusatalltimesandabletotakenecessarymeasuresquicklyifrequired.

Before entering into contracts we check the credit standing of our customers carefully. We deploy experienced project managersfororderexecution.Throughtransparentmonitoringoforderstatusweensurethatpaymentsaremadepromptly accordingtoorderprogressandpaymentdefaultsareminimized.

Salesrisks

As a diversified industrial group with leading engineering expertise, ThyssenKrupp operates globally and is therefore dependent onthe internationaleconomicsituation.Withlittle positiveimpetuscomingfromthe globaleconomyandwith thedebtcrisesinsomeeurozonecountriesandtheuncertaintiesonthefinancialmarketscontinuing,weseerisksforour salesmarkets.Wemonitorandevaluatetheseframeworkconditionscontinuouslysoastobeabletoreactquicklytonew developments.Forthiswehavevariousmeasuresatourdisposal,forexampleamarket-orientedadjustmentorrelocation ofcapacities.

Our high degree of diversification with multi-layered product and customer structures helps ensure that ThyssenKrupp remains largely independent of regional crises on sales markets. In addition we operate a professional receivables managementsystemtocountertheriskofbaddebt.

Moredetailsonsalesrisksareprovidedinthesection"Specificrisksforouroperations"onpages85-88.

Risksincountrieswithtraderestrictions

Due to the global nature of its business ThyssenKrupp also has business relationships in countries subject to trade restrictions.Since2010theFederalRepublicofGermany,theEUandtheUSA,actingonthebasisofUNResolution1929, have beenexpandingexistingtrade restrictions ontheIslamicRepublic ofIranto includethe oil, gas and petrochemical sector,andaddingfurtherindividualsandbankstothesanctionsliststoprohibitbusinesswiththem.

Violations ofthesetrade restrictions are subjectto severe penalties and could damagethe Group's reputation. We have alwayssoughttocomplywithexportcontrolregulationsandinparticulartraderestrictions.Inaddition,inSeptember2010 we decided that ThyssenKrupp will not enter into any new transactions with Iranian customers. These measures significantlyreducetheriskofapotentialviolationoftraderestrictions.

Procurementrisks

Tomanufactureourhigh-qualityproductswerequirerawmaterialsandenergyaswellasfreightcapacitieswhichwesource ontherelevantprocurementmarkets.Dependingonmarketsituation,procurementpricescanvaryconsiderablyandimpact on our cost structures. We counteract these risks where possible through adjusted selling prices and alternative procurementsourcestosecureourcompetitiveness.Tohedgeagainstrawmaterialpriceswings,inparticularfornickeland copper,wealsousederivativefinancialinstruments–mainlycommodityforwardtransactions.Theuseofsuchinstruments issubjecttostrictrules.DetailsoftheseriskareasareprovidedinNote22.

TheaimoftheenergytransitioninGermanyistosignificantlyincreaseuseofrenewableenergiesandexpandtheelectricity grid. Thefinancing ofthe energytransition exposes ustothe risk of permanently rising electricity prices and a further increaseinthe renewableenergysurcharge,whichwouldjeopardizetheinternationalcompetitivenessofenergy-intensive industriesliketheGermansteelindustry.Regulatoryrequirementsplacedontheelectricityandgasnetworksofourmajor production sites involve further costs. We counter the risk of rising energy prices on the commodity markets through structuredenergyprocurement.WeoperatesustainablyandareworkingacrosstheGrouptosaveenergyandrecyclewaste. Thishelpsavoidgreenhousegasemissionsandconservenaturalresources.

Regulatoryrisks

Newlawsandotherchangesinthelegalframeworkatnationalandinternationallevelcouldentail risksforourbusiness activitiesiftheyleadtohighercostsorotherdisadvantagesforThyssenKruppcomparedwithourcompetitors.Tocontain these risks we maintain close working contacts with the relevant institutions to prevent distortion of competition. We participatedirectlyandviaindustryassociationsinthediscussionprocessonpoliticallydesiredenergypricesurcharges.

WemayfacesubstantialcostsforemissionallowancesinthethirdtradingperiodoftheEUEmissionsTradingSystem.As anenergy-intensiveindustrialandservicesgroupwefaceearningsrisksifweareunabletopassontheadditionalcoststo ourcustomers.Theserisksaremitigatedbyemissionsallowancesheldandhedgingtransactions.

Environmentalrisks

Inourproductionplantsthereareinsomecasesprocess-relatedrisksofairandwaterpollution.Weinvestcontinuouslyin environmental protection inthese areas in orderto conserve resources andminimizeenvironmental impact. ManyGroup companieshavehadtheirenvironmentalmanagementsystemscertifiedandthusputinplacestructuresandprocessesto reducetheriskofenvironmentaldamage.

SomeoftheGroup'srealestatenolongerusedforoperationsissubjecttorisksfrompastpollutionandminingsubsidence. Wecounterthese riskswith preventivemeasuresandscheduled remediationwork, and recognizeadequate provisions in ourrealestatebusiness.

Legalrisksassociatedwiththird-partyclaims

Claimsagainst ourGroupcompaniescan resultinlegal risks. ThyssenKruppsupports relevantlegalproceedingswithits own experienced corporate counsel, if necessary with additional support from external attorneys. We minimize product liabilityclaimsthroughthehighqualityofourproducts.

When contractual partners assertclaims against ThyssenKruppweexaminethe individual claimscarefully and recognize provisionswherepaymentobligationsareconsideredlikelyandcanbereliablyestimated.

InformationonpendinglitigationandclaimsfordamagesisprovidedinNote21.

Compliancerisks

We operateastrictcompliance programfocused on reducingthe risk ofantitrustandcorruptionviolations.Thisfocusis justifiedduetotheenormouspotentialfordamagewiththeseoffenses–bothfinancialandintermsofreputation.

Thisisillustratedbytheso-calledrailcartelcase.OnJuly23,2013theGermanFederalCartelOfficeimposedasecondfine on ThyssenKruppGfTGleistechnikGmbH.This€88millionfine relatestothe privatemarketandturnoutssections ofthe proceedings. ThyssenKrupp acceptedthefine and had already recognized a provisionfor it. Previously in July 2012the authorityhadimposeda€103millionfineforpricefixinginconnectionwithraildeliveriestoDeutscheBahn.Withthelatest fine for the private market and turnouts sections of the case fines have now been established and settled for all the allegations relatingtoThyssenKruppinthe railcartelcase.However,variousDeutscheBahncompanieshavefiledclaims for damages against several companies – including ThyssenKrupp GfT Gleistechnik and ThyssenKrupp Materials International–inconnectionwiththerailcartel.Inthemeantimeothercompanieshavealsoassertedout-of-courtclaims against ThyssenKrupp in connection withthe private market andturnouts sections ofthe proceedings. More details are providedinNotes16and21totheconsolidatedfinancialstatements.

Actingonananonymoustip,theGermanFederalCartelOfficehasbeeninvestigatingThyssenKruppSteelEuropeandother companies since the end of February 2013 based on an initial suspicion of price fixing in the delivery of certain steel productstotheGermanautoindustryanditssuppliersoveraperioddatingbackto1998.ThyssenKrupphaslaunchedits own investigation into the allegations with the support of external lawyers. The amnesty program we carried out from April15toJune15,2013producednoleadsregardingtheongoinginvestigations.TheinvestigationsbytheFederalCartel Officeareongoing.TheinternalinvestigationslaunchedinresponsetotheinvestigationsoftheFederalCartelOfficeareat anadvancedstagebutnotyetcomplete.Basedonthefactscurrentlyknowntous,significantadverseconsequenceswith regardtotheGroup'sasset,financialandearningssituationcannotberuledout.

Risksassociatedwithinformationsecurity

OurIT-basedbusinessprocessesareexposedtorisksassociatedwithinformationsecurity.Humanerror,organizationalor technical processes and/or security vulnerabilities in information processing can create risks that threaten the confidentiality,availabilityandintegrity ofinformation.Forthis reasonwecontinually review ourinformationtechnologies andupdatethesystemsasnecessary.TheIT-basedintegrationofourbusinessprocessesissubjecttotheconditionthat therisksinvolvedforourGroupcompaniesandbusinesspartnersareminimized.

Inthereportingyearweagaincarriedoutextensivemeasurestofurtherimproveourinformationsecuritymanagementand technologies. The Computer Emergency Response TeamDCERTE set upforthe Group supportsthe early identification of theserisks.

ToenhancethesustainabilityofallcurrentandfuturemeasurestheGroupcompaniesarerequiredtoregularlydemonstrate thematuritylevelsoftheirestablishedinformationsecuritymanagementsystemsDISMS,toISO/IEC27001E.Itcontinuesto beimportanttoustoensurethatouremployeesaresufficientlyawareoftherisksandhavemaximumtechnicalsupportin dealingwithinformation relevantto business.Regularinformationsecuritycongressesareheldatwhichinformationand experiencewithproactivemeasurestoimproveinformationsecurityandmanageriskareexchangedatinternationallevel.

Furthermore, business processes and data centers at selected Group companies have achieved security certification, documentingthestandardsachievedabovealltoourcustomers.Inaddition,vulnerabilityanalysesarecarriedoutwiththe supportofourITComplianceteamandexternalexpertstoverifythesecurityoftheinfrastructureandifnecessaryincrease protection.

TogetherwiththeGroup'sdataprotectionofficer,ourexpertsensurethatpersonaldataareprocessedinaccordancewith the rulesoftheGermanDataProtectionAct.AllthesemeasureswillallowustocontinuetoprotecttheGroup'sbusiness dataaswellastheprivacyofourbusinessassociatesandemployees,andtorespondappropriatelytopotentialnewrisks.

Risksassociatedwithpensionandhealthcareobligations

Thefundassetsusedtocoverpensionliabilitiesareexposedtocapitalmarketrisks.Tominimizetheserisks,theindividual investment forms are selected and weighted on the basis of studies by independent experts. The aim is to align the investments sothatthe associated pension obligations can be permanentlyfulfilled in respect ofthe current andfuture incomefromtheinvestments.Pensionobligationsareexposedtorisksfromincreasedlifeexpectanciesofbeneficiariesand fromrequirementstoadjustpensionamountsonaregularbasis.

In addition,thecost ofhealthcareobligationsintheUSAmayincrease.Furthermore,insomecountriesthereisa riskof significantlyhigherpaymentshavingtobemadetopensionfunds inthefuture duetostricterstatutory requirements.In individualcases,theprematurecancellationofapensionplanmaynecessitateanadditionalallocation.

Personnelrisks

To remain successful as a diversified industrial group with leading engineering expertise we need dedicated and highly qualified employees and managers. There is a risk of not being able to find key personnel to fill vacancies or losing competentemployees.Topreventthis,ThyssenKrupppositionsitselfasanattractiveemployerandpromotesthelong-term retentionofemployeesintheGroup.Thisinvolvesofferingdevelopmentprograms,careerprospectsandattractiveincentive systems for managers and providing targeted support for employees. We inform interested young people about career opportunities at ThyssenKrupp from an early stage and support apprentices as they start work. We cooperate with key universitiesandestablishcontactwithstudentsfromanearlystagetosecuretheyoungtalentweneedforourworkforce.

Generaleconomicrisks

Adetailedreportonthegeneraleconomicrisksisprovedinthesection"MacroandSectorEnvironment"onpages71-73.

Specificrisksforouroperations

Components Technology – The business area isexposedto various generalrisks dueto its global activities in different fields of business. In its core markets the expected economic recovery should lead to steady growth in all product segments.Howeverthisissubjecttomajoruncertainties.InviewofthecontinuinghighbudgetdeficitsinWesternEurope andtheUSAtherearecontinuedriskstoglobalrecovery.

To lessen the risk of dependency on individual markets the business area is expanding its customer base and further strengtheningitsinternationalpresence,especiallyinAsia.Inaddition,extensiveearlywarningindicatorshavebeenputin placetoallowafastresponsetoapossibleeconomicslowdown.

Intheareaofwindenergyopportunitieslieaboveallintheoffshoresector.Howeverthereareuncertainties,particularlyin Germany,regardinggridconnectionandthefinancingoffurtherprojects.Risksalsolieinthepossiblereductionofsupport foroffshorewindturbinesintheindividualcoremarkets.Atthesametimepressureonsellingpricesisgrowingasaresult ofintensecompetition.Thispricepressureisalsoincreasinglyevidentintheautomotivesectorandisbeingcounteredby thebusinessareawithextensiveprogramstoreducecostsandincreaseproductivity.

In additiontothe risks onthesellingsidethereis a risk onthe procurementsidethatsteeply rising rawmaterial prices cannotbepassedoninfulltocustomersoronlywithdelays.Thebusinessareaiscounteringthisriskbyframingcontracts withcustomersaccordingly.

Further risks for Components Technology concern the impact of changes in exchange rates on sales and earnings. In addition, risks with unplanned impacts on earnings cannot be ruled out in association with ongoing technological innovationsandimprovements.Ontopofthistherearepotentialrisksfromunexpectedyieldandqualityproblemsandthe associatedwarranty obligations. The businessareausesextensiveproductionand qualityassurancesystemstoavoid or limitsuchrisksasfaraspossible.

ElevatorTechnology–TheriskstructureofElevatorTechnologyismainlydeterminedbytwofactors:thedifferentareasof businessandthedifferentregionsinwhichElevatorTechnologyoperates.

The service and modernization business is comparatively independent of the general economic situation. To secure the maintenance portfolio and prevent possible losses of maintenance units, the business area pursues corresponding customer retentionstrategies.Inadditionwecontinuouslyimplementefficiencyprogramstocounter risingpersonneland procurementcosts.

Thenewinstallationsbusinessiscloselylinkedwiththeconstructionsectorandisthereforeexposedtogreaterfluctuations. Howeverduetothelongerprojecttimes,downturnscanbeanticipatedsocountermeasuresandcapacityadjustmentscan becarriedoutatanearlystage.Risks,particularlyintheexecutionofcomplexmajorprojects,arecounteredbytheuseof projectmanagementmeasures.Risingmaterialpricescannotbepassedontocustomersinallregions.Thisriskisoffsetby efficiencyimprovementsinproductionandoptimizedprocurementactivities.

Accidentriskscannotberuledoutcompletelyduringtheinstallation,maintenanceanduseofthebusinessarea'sproducts Asafety-orientedcorporateculture,employeeselectionandcorrespondingtrainingprogramsonsafeconductonjobsites DSafetyFirstEcountertheriskofemployeeaccidents.Accidentsinvolvinguserscarryamajorriskoflossofreputation.The selectionandtraining ofourinstallationandserviceemployeesensuresmaximumsafetyandqualityofthe productswe installandservice.Ourgoalistoruleoutaccidentsinvolvingusersasfaraspossible.

DespiteitsincreasingbusinessactivitiesinChina,ElevatorTechnologymanagestobalancerisksinternallyasitoperateson both the established markets in Europe and America and the growth markets in Asia. Potential economic risks in the emerging nations arecountered byexpandingthemodernization andservice business and improvingefficiency, andthe high personnel turnover in China is countered by professional personnel management. The business area's regional diversificationandassociatedinternationalnaturegivesrisetoexchangerateriskswhicharemitigatedbymatchingsales andcostsandusingcorrespondingfinancialinstruments.

Thechallengingglobaleconomicsituationcarriesfurther riskpotential,mainlytheriskofincreasingbaddebtandproject delays.In addition,competition could intensify on allmarkets and increase price pressure. ElevatorTechnology counters these risks with professional project management in association with extensive checks of customers' credit standing. Customer retention management, high service quality and efficiency programs help contain the risk of increasing price pressure.

IndustrialSolutions–Inadditionto rawmaterialprices,politicaldevelopmentsinimportantsales regions,particularlyin theMENAregion,couldnegativelyimpacttheprojectsituationatIndustrialSolutionsintheareasofnavalshipbuildingand plantconstruction,leadingtoprojectdeferralsorcancellations.Specificrisksintheexecutionoflong-termandtechnically complex orders are countered by professional and result-oriented project and claims management, intensive project monitoringandtheincreaseduseofprojectmanagementmeasures.

Continuingsubduedinvestmentactivityinsomemarketssuchasmining,aswellasincreasingpricecompetitionfromAsian competitorsintheplantconstructionbusinesscouldhaveanimpactonmarginqualityinfutureprojects.Therestructuring oftheMarineSystems operating unit,whichwaslargelycompletedwiththe disposal ofthecivilshipbuildingactivitiesin Germany lastyear,hassignificantly reduced risksintheIndustrialSolutionsbusinessarea. The remaining risksfromthe yacht-buildingbusinessareessentiallylimitedtothehandlingofwarrantyclaims.Thisriskwassignificantlyfurtherreduced inthereportingyearbythesuccessfulconclusionofacloseoutagreementforayachthandedoverin2010.

Materials Services – The global materials and service business of Materials Services is subject to cyclical swings in demandandpricesontheprocurementandsalessides–insomecasestoagreaterextentthanotherbusinesses.Thishas asignificantimpactonournetworkingcapital.Fastdeliverywithminimumcapitalemployedisakeysuccessfactorforour business model. We therefore work continually to optimize our logistics and the entire supply chain. Cost-reduction measuresundertheimpact programincreaseefficiencyand profitability.Systematicimprovementstonetworkingcapital managementhelpuseffectivelyoptimizeinventoriesandminimizetherisksofbaddebt.

In additionwe contain cyclical risks by ourworldwide presence, broadcustomer base and high degree of diversification. Thisresultsinasignificantspreadofrisks.AlongsideourcoremarketsinEuropeandNorthAmerica,wearealsosuccessful ingrowthmarketssuchasEasternEurope,AsiaandBrazilandwillcontinuetoparticipateintheirgrowthinthefuture.

Steel Europe – Risks going forward for the Steel Europe business area include in particular risks on the sales and procurement markets, risks from exchange-rate fluctuations, from the emissions trading system and the Renewable EnergiesAct.Iftheeconomyweretodeteriorate,theriskofcustomerinsolvencieswouldincrease.

Withtheoptimizationprogram"Best-in-Class–Reloaded"thebusinessareaiscounteringthe riskstosalesvolumesand pricesandmakingakeycontributiontoachievingtheearnings,cashflow,value-addedandcompetitiveprofiledemanded ofallGroupbusinessesaspartoftheStrategicWayForward.

Tocontaintheriskofcyclicaldemandfluctuationsthebusinessareaoptimizescostsinallareas,adjustsproductionlevels in goodtime andfocuses on lesscyclical high-endmarketsegments. The risk of customer insolvenciesisminimized by intensifiedmonitoring,usingcommercialcreditinsurancefacilities,andadjustingpaymentconditions.Constantoptimization ofsupplychainsreducesriskstoqualityanddeliveryperformance.

The European steel industry is exposed to import pressure and overcapacities on the market, as well as rising environmentalrequirements.SteelEuropeminimizestherisksposedbyintensecompetitiononthemarketforcarbonsteel flatproducts by usingthesystematicstrengthsofitstechnologyexpertiseto differentiateitselffromcompetitors.Should rawmaterialpricescontinueto rise,thebusinessareawould respondbyseekingalternativeprocurementsourcesand/or passingthepriceincreasesontocustomers.

Steel Europe has integrated a business and technical risk controlling system for property insurance into its risk managementprocess.Additionalinvestmentandmaintenancebudgetsareavailabletofurtheroptimizefireprevention.The risksofotherbusinessinterruptionsarereducedbyongoingpreventivemaintenance,modernizationandinvestment.Inthe eventofbusinessinterruptions,businesscontinuityplansareinplacespecifyingmeasuresforremedyingdamage.

Details on risks arisingfromthe emissionstradingsystem andtheRenewable Energies Act are provided inthesections "Procurementrisks"and"Regulatoryrisks"onpage83.

SteelAmericas–Followingtheramp-upofthesteelmillinBrazil,technicalproblems,relatedinparticulartoagasturbine inthepowerplantandablastfurnace,resultedinconsiderableextracostsinthereportingyear.Howfartheseextracosts arecoveredbywarrantyorinsuranceisbeingexamined.

Thecurrent developments ontheworldcommoditymarkets,movementsinsteel prices,andfluctuationsintheexchange rateoftheBrazilian realin recentmonthspose risksforthesteelmillinBrazil.Wecanonlycountertheseinpart,e.g.by hedging.

Effectivemonitoringand riskmanagementaswellasregularriskmeetingsandreportsareaimedatremedyingidentified problemsinthefacilitiesstepbystepandrespondingtonewchallengesthroughpromptidentificationandcommunication.

Our efficient claims management system ensures that all claims of our contractual partners are properly handled and managed.ThyssenKruppisinvolvedinlegal,arbitrationalandout-of-courtdisputesinconnectionwiththeconstructionof thesteelmillinBrazilwhichcouldleadtocompensationpayments.Inthepastfiscalyearsettlementwasreachedinalmost allsuchdisputes.

InthepastfiscalyearThyssenKruppCSAincreaseditssalesofslabsontheBrazilianmarket.Thegrowingshifttowardsthe domesticmarket,thereducedvulnerabilitytoexchangeratefluctuationsandtheuseofinputtaxcreditswillreducesales risks at ThyssenKrupp CSA. The value-preserving slab supply contract agreed with a consortium of ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation and increased sales initiatives in Brazil will also contribute to minimizing potentialcapacityutilizationrisks.

NothreattoexistenceofGroup

InthepastfiscalyearweonceagainassessedtherisksituationoftheGroupcontinuouslyandtransparently,andwithour establishedGroupwideriskmanagementsystemcontributedtotheefficientcontrolofrisksintheGroup.Fromthecurrent perspectivetherearenorisksthatcouldthreatentheabilityoftheGrouptocontinueasagoingconcern.

Non-financial performance indicators

SustainabilityisfirmlyanchoredintheGroup'sstrategy.Withourengineeringexpertiseweenableourcustomerstogainan edgeintheglobalmarketandmanufactureinnovativeproductsinacost-andresource-efficientway.Thebasisforthisis responsiblecorporategovernancegearedtolong-termvaluecreation.

Sustainability

ThyssenKrupp regards sustainability as a key driver of innovation and a continuous process to improve the economic, ecologicalandsocialperformanceoftheCompany.Accordingly,sustainabilityisanintegralpartofourmissionstatement andstrategy.Furthermore, ThyssenKrupphascommittedtotheUnitedNationsGlobalCompact.Systematicsustainability managementwithregardtobothourownprocessesandthevaluechainenablesustoplayanactivepartinshapingthe future. For example, energy efficiency, recyclability, and product safety play a key part inthe development of innovative materials, components, systems and plants. In this way ThyssenKrupp contributes to the sustained success of its customers.Wealsoexpectoursupplierstocomplywithsocialandecologicalstandards.Wecommunicateoursustainability performance transparently to our stakeholders. For example, ThyssenKrupp was once again included in the Leadership IndexoftheCarbonDisclosureProject,CDP-forGermany,AustriaandSwitzerlandin2013,whichliststhemosttransparent companies with regard to climate protection. Further information and our sustainability reporting based on the Global ReportingInitiative,GRI-andtheUnitedNationsGlobalCompact,UNGC-canbefoundonourwebsite.

Targetedimprovementsinthepastfiscalyear

Despitethe difficulteconomicenvironment,wefurtherstepped up our innovation,employee development,environmental protectionandcorporatecitizenshipactivitiesinthe2012/2013fiscalyear.Readmoreaboutthisinthefollowingsections.

Innovations

With its innovativetechnologies and materials, ThyssenKrupp offers its customers solutionsfor sustainable success. We developcustommaterialsandcomponents,organizeend-to-endproductionlogisticsprocesses,andbuildturnkeyplants. Our researchanddevelopmentteamsgiveprioritytoimprovingenergyefficiencyovertheentireproductlifecycleandto closed,resource-conservingmaterialscycles–inlinewithourcustomers'requirements.

Ourinnovativematerialsandprocessexpertiseiscombinedininterdisciplinaryteams.Across-companynetworkdevelops new solutions for markets of the future. We see particular challenges and opportunities for our Company in adapting energy-intensive production processestofluctuating capacitiesfrom renewable energy sources, using new processesto extractrawmaterials,andrecoveringrawmaterialsattheendoftheproductlifecycle.

InCar®plus:Solutionsforautomotiveefficiency

UndertheInCar®plusprojectThyssenKruppisdevelopingmorethan40forward-lookingsolutionsforautomotiveefficiency. These innovationsfor body, powertrain,chassis andsteering aresuperiorto current high-qualitycomparable products in terms of sustainability, cost-efficiency, weight or functionality. InCar®plus unites technological, ecological and economic progresswithregardinparticulartofuelefficiency,cost-efficientproductionandtheintegrationofadditionalfunctionsinto existingcomponents.Thesolutionsallowweightsavingsofupto40%andcostreductionsofupto20%.Prototypeswere produced for most of the sub-projects in the reporting year; the first pre-production components are being tested in customervehicles.ThoughtheprojectisfocusedonreducingCO2emissionsduringdriving,theunderlyingholisticapproach takesaccountoftheentirevehiclelifecycle.

InCar®plus is acontinuation ofthesuccessfulInCar® project presented in 2009 and is representative of ThyssenKrupp's Strategic Way Forward. The Group is applying its engineering expertise for sustainable progress – also with a view to steadily rising mobility requirements. The trends in the automotive sector are towards weight reduction, electrification, energy efficiency, safety and comfort. InCar®plus offers customized solutions to these requirements. As a diversified industrial group we possess expertise in the areas of materials development, engineering, component manufacture, assembly lines, tooling and prototyping. By integrating these disciplines we create unique synergies for cost- and production-validatedinnovations.

Holisticapproachtoloweringcostsforelevatorsandescalators

To ensure our elevator and escalator business remains competitive in the high-volume, low-price segments around the world,itisvitalthatweoptimizethecostofeachandeverycomponent.Forthisweanalyzenotonlymanufacturingcosts but alsothe subsequent life cycle costs such as service and running costs. Our elevator and escalator experts develop innovationsonthebasisofdesign-to-costaspects:Thishasresultedinsuccessfuldevelopmentssuchasthenew'synergy element' machine room-less elevator for residential and commercial buildings, and the Low Cost Commercial Escalator whichisparticularlyintendedfortheChinesemarket.

Goingup:Integratedskipconveyingandcrushingsystem

Open-pithard rockminesforironoreand othermaterials useheavytrucksweighingupto260metrictonsandcarrying payloadsofupto400tons.Largenumbersofthesetrucksareusedinminesaroundtheworld.Investmentandpersonnel costs, fuel consumption and associated CO2 emissions are very high. With its "Integrated skip conveying and crushing system", ThyssenKrupp offers a sustainable and cost-effective alternative: The rope-driven steep-incline conveyor transportscompletetruckloadson railsfromtheloadingstationtothecrusheratthetopofthemine,usingtheshortest possible route over gradients of upto 75 degrees. The system incorporatesthe steep-incline conveyorwith deadweight balancesystem,thecrusherstationforoverburdenorore,andtheonwardconveyorstotheprocessingortippingareas.

Unlikeintruckhaulage,wherenotonlythepayloadbutalsothedeadweightofthetruckhastobemoved,theintegrated skipconveyingandcrushingsystemonlyusesenergytotransportthepayload.Thisreducestransportationcostsbyupto 50%andsignificantly lowersCO2emissions.Noise and dust pollutionarealso reduced,andthe operationscancontinue eveninbadweatherconditions.

PREPOL®SC:Fueltransportedbyblastsofair

The production ofcement clinker in rotarykilns is a keystep inthecementmanufacturing process. The rawmaterials – generallylimestone,clayandmarl–areheatedto2,000°Cinthekilnandsintered.Modernkilnsystemsconsumearound 3,200kilojoulesperkilogramofcementclinker.Previously,typicalfuelsincludedcoal,lignite,heatingoilandnaturalgas, buttheseareincreasinglybeingreplacedbyalternativefuelssuchasshredderandhouseholdwaste,industrialwasteand scraptires.Substitution rates ofwell over 50% are already being achieved in Europe, but on a globalscalethere isstill considerablepotentialforimprovement.

PREPOL®SC is an innovative combustion chamber developed by ThyssenKrupp for the thermal processing of coarse industrial waste materials and has virtually no moving parts. While the mechanical transportation mechanisms of conventionalsystemsmakethemsusceptibleto breakdowns,PREPOL®SCtransportsthealternativefuel by blastsofair. Thenewsystemcanalsoberetrofittedintoexistingcementplants.Thefirstindustrial-scalepilotplantisexpectedtostart operationbytheendof2013.

Virtualcommissioningreducesrisks

Virtual production is an increasingly importantmethod inthe planning and realization of production systems. Simulating variousaspectsofproductionsystems,suchasmaterialflow,robotkinematicsanddataexchange,improvesplanningand avoidserrorsduringrealization.OneveryeffectivemethodofvirtualproductionbeingusedanddevelopedintheGroupis virtual commissioning ,VCOM-. In VCOM, the plant defined in the form of digital 3D models is assembled into a virtual productionlineanditsfunctionssimulatedonthecomputer.Thisshortenscommissioningtimeonsite,enablesfaultstobe identifiedatanearlystage,andreducestherisksinvolvedincomplexprojects.

Another important development is hybrid commissioning for body-in-white lines, in which virtual and real system components can be connected. For this, the real line components are scanned using 3D technology. This further developmentofVCOMmakesiteasiertomasterthecomplexityofconvertingorextendingexistinglines.Atthesametimeit allowsthetypicallyveryshorttimeframesavailableforcommissioningtobeusedmoreeffectively.

Hotstampingforlighterparts

Reconciling the need to reduce weight with rising crash safety requirements for the passenger cell is resulting in the increaseduseofhot-stampedpartsintheautoindustry.ThesteelgradeMBW-K®1900–nowproductionready–marksa further milestone in the systematic development of manganese-boron steels. The higher strength of this steel ,2,000 megapascals-MPa-allowsstructuralpartstobemadeupto15%lighterthanwiththehot-formingsteelscommonlyused today with tensile strengths of 1,500 MPa. The tailored tempering process patented by ThyssenKrupp for hot stamping processesisnowbeingusedinproductionbyourcustomers.Thisinnovativeandcost-efficienttechnologyisincreasinglyin demandandisbeingextendedtofurtherpartsandOEMs.

We supply not onlythe materialsfor hot stamping, but alsothe productiontechnology. A high-capacity, energy-efficient press has been specially designedfor use in hot stamping lines, andwe have also succeeded in validatingtheforming simulationmethodforhot-stampedmaterials,allowingittobeusedasa reliableaidtosimulatetheindividualphasesof productandprocessdevelopment.

Spendingonresearchanddevelopmenthigheragain

DuetothedisposalofthediscontinuedoperationStainlessGlobal,totalspendingonresearchanddevelopmentincreased by only €3 million to €647 million in the reporting year. However, on a like-for-like basis excluding Stainless Global, spendingwasup€20millionor3%.

Research anddevelopmentcosts intheGroup onceagain rosesignificantly by10%; relatedtothecontinuingoperations ,incl.SteelAmericas-theincreasewas19%.Thisunderlinestheimportance ofinnovationsandnewtechnologiesforthe Company. There was a decrease in the amortization of capitalized development costs ,by 18%- and in order-related developmentcosts,by3%-.

Researchanddevelopment

million€	2011/2012	2012/2013	Change in%
Research and development costs	244	269	10
Amortization of capitalized development costs	57	47	\$18&
Order-related development costs	343	331	\$3&
Expenditure on research and development of the Group	644	647	0

Employees

OnSeptember30,2013ThyssenKruppemployed156,856people.Inthecontinuingoperations,incl.SteelAmericas-there wasayear-on-yearincreaseof741or0.5%.ForthefullGroup,theheadcountfellby11,105or6.6%duetothedisposalof thediscontinuedoperationStainlessGlobal.ComparedwithSeptember30,2012,employeenumbersinGermanydecreased by 6,216 or 9.7% to 58,164, accounting for 37% of the total workforce. At the end of September 2013, 19% of all employeeshadtheirplaceofworkintherestofEurope,13%inNorthandCentralAmerica,14%inSouthAmerica,16%in Asia/Pacific–inparticularChinaandIndia–and1%inAfrica.

At€8.5billion,personnelexpenseintheGroupwas7%loweryear-on-year.

92 Combinedmanagementreport Non-financial performance indicators

Employeesbyregion0September301

	2009	2010	2011	2012	2013	Change in%
Germany	81,229	71,072	69,122	64,380	58,164	\$10&
Europe \$excluding Germany&	42,291	39,712	36,319	34,701	29,921	\$14&
North and Central America	27,431	22,788	24,518	22,116	20,564	\$7&
South America	15,466	19,629	22,568	21,320	22,078	4
Asia/Pacific	18,481	21,544	24,742	24,170	24,907	3
Africa	2,597	2,601	2,781	1,274	1,222	\$4&
Worldwide	187,495	177,346	180,050	167,961	156,856	\$7&

Employeesbybusinessarea0September301

2009	2010	2011	2012	2013	Change in%
27,973	29,144	31,270	28,011	27,737	\$1&
42,698	44,024	46,243	47,561	49,112	3
20,813	18,460	18,773	18,111	18,841	4
44,316	33,856	36,568	27,595	26,978	\$2&
36,416	34,711	28,843	27,761	26,961	\$3&
1,659	3,319	4,060	3,992	4,112	3
1,865	2,597	2,803	3,084	3,115	1
175,740	166,111	168,560	156,115	156,856	1
11,755	11,235	11,490	11,846	0	--
187,495	177,346	180,050	167,961	156,856	\$7&

Diversityasagoalofpersonnelpolicy

ThyssenKruppiscontinuingitseffortstograduallyachieveandsustaingreaterdiversityamongtheworkforceasawhole andatuppermanagementlevelsinparticular.TothisendwearesteadilyexpandingourexistinginitiativesandHRpolicy instruments in the various ThyssenKrupp company units that make a direct or indirect contribution to increasing, appreciatingandutilizingdiversityintheGroup.

Forexample,tofurtherimprovethework-lifebalanceofouremployeesweopenedthe'Stahlsternchen'children'sdaycare centerattheSteelEuropesiteinDuisburginMay2013.Basedonthedidacticmethodsoftheso-called"Berlinmodel",the centerlooksafter40employeechildreninthree groups betweentheextended openinghours of7 a.m.to6 p.m., giving theirparentsgreaterflexibility.

ApprenticetrainingrateinGermany5.6%

Inmanycountriesaroundtheworldweofferyoungpeopleattractiveapprenticeshipsandstudyopportunities.InGermany alone,around3,250youngpeoplewereaimingtograduatefromanapprenticeshipinoneofnearly50differentoccupations oranintegrateddegreeprogramin2013.Themajorityoftheseprogramsareinindustrialortechnicalareas.Our133fulltime trainers and numerous training officers teach not only technical skills but also methodological and social competencies.Asaresult,94%ofapprenticespassedtheirfinalexamsinthereportingyear.Atthesametime,940young peoplestartedanapprenticeshipatThyssenKrupp.Theapprenticetrainingratewas5.6%.

AdditionalGroupHRindicators0September301

		2011/2012	2012/2013
Personnel expense	million €	9,083	8,491
Female representation	%	13.8	14.4
Sickness absence rate	%	3.1	3.2
Accidents \$per 1 million hours worked&		7.2	5.9

Healthandsafety:"Zeroaccidents"initiativeshowingresults

Accidentfrequencyfellbyover18%year-on-yearfrom7.2to5.9accidentsper1millionhoursworked.Overthepastfive yearsaccidentfrequencyhasfallenby48%andoverthepastsixyearsbynearly60%.Managementtrainingintheareaof health and safety continued in Germany and abroad as part of the "zero accidents" initiative. In addition, an executive developmentprogramwaslaunchedfortopmanagerstostrengthentheirunderstandingoftheir roleandresponsibilityin further developing oursafety culture. ThyssenKrupp istargeting afurthersignificant reduction in accident numbers. This willincludeamoresystematicanalysisofthemainaccidentareasandthedevelopmentofprogramstoeliminatethem.

Healthmanagementbetterconnected

Health at ThyssenKrupp is based on three pillars: individual health, working conditions, and leadership conduct/social interaction. These areas are being gradually integrated into existing management systems andfurther reinforced. Inthe futurethiswillbeaccompaniedbyextendedcontrolling.Sicknessabsence rateswillbesupplementedbyearlyindicators coveringtheaforementionedactionareas.Toensureauniformunderstandingandapproachtohealthmanagement,weare lookingamongotherthingstostrengthenthelinksamongallconcernedinthebusinessareasandregions.Thisbeganwith thefirstnationalThyssenKruppHealthCongressforhealthprofessionals,managersandemployeerepresentativesinEssen inSeptember2013.

ThyssenKruppPerspActive–differentiatedmanagementdevelopmentandassessment

Inordertopromoteastrongperformanceandfeedbackculture,wefurtherenhancedourmanagementdevelopmentand assessment systems. Based on our new mission statement we developed the ThyssenKrupp Leadership Competencies and introduced a modified assessment system which permits differentiated feedback and improvesthequalityofdevelopmentdiscussions.

Potentialprogramsandtalentmanagementproject

Managerswiththepotentialtotakeonhigher-levelfunctionsaresystematicallypreparedforthestrategicchallengesand future requirementsthis involves in our Groupwidepotential programs. The programs make an important contributionto developingtheskillsofthesemanagersandtyingthemtotheGrouplong-term,whichinturnallowsvacantmanagement andotherkeypositionstobefilledwiththebestinternalcandidates.

Inordertoidentifytalentsbelowthetopthreemanagementlevelsevenearlierwelaunchedaworldwidesystematictalent managementprojectinthe reportingyear.TheaimistoimprovetransparencyintotalentsatThyssenKruppandtiethem morestronglytotheGroup–includingrotatingpositionsacrossbusinessareas.

ThyssenKruppAcademy–shapingthetransformationprocesstogether

TheprogramsoftheThyssenKruppAcademyaretailoredtothebusinessneedsofourmanagersandpreparethemforthe strategic and operational challenges ahead. One priority in the reporting year was to align these programs to the new ThyssenKruppLeadershipCompetenciesandredesigntheprogramstructure.Inadditiontotheestablishedprograms,core anddeepdiveprogramswerecreatedtoaddresscurrentchallenges.Inthereportingyear,theThyssenKruppAcademyhad afixedportfolioofaround25programsplus15formatsdevelopedonbehalfofindividualbusinessunits–so-calledclient solutions.Atotalof125suchprogramswereconducted,attendedby1,225managers–including480inclientsolutions.In addition, numerous activities were carried outto assistthe business areas managethe cultural change,for example by helpingorganizechangeworkshopsfortoplevelmanagers.Aspartofthereorganization,theAcademy'sfuturescopeand targetgroupwillbeexpanded.AlongsidetheestablishmentoftheProjectManagementCampus,furtherfunctionalschools –aformatthatpromotesexcellenceinstrategiccorefunctionsandtheGroupwideimplementationoffunctionalstandards– arebeingdeveloped.

Focusongraduaterecruitment

Itisbecomingmoreandmoreimportanttohaveapresenceatuniversitiessoastoattracttalentedgraduates.Wepresent ourselves as an attractive employer and establish contacts with students at an early stage. We have maintained close relationshipsformany yearswithGerman universities inAachen, Berlin,Bochum,Dortmund und Dresden, and alsowith universities in Brazil, China, Japan and Russia. In addition we have activities at other institutes and higher education establishmentssuch asthe KarlsruheInstitute of Technology, and Südwestfalen andDortmundtechnicaluniversities,for examplethroughsupportgroupsandbusinessmanagementgames.

Ourentryprogramsaretailoredtothespecificneedsofthedifferenttargetgroups.Thebestofourinternsareincludedin our"NextGeneration"internprogram.TheystudysubjectsthatwillbeofparticularinteresttoThyssenKruppinthefuture. Hence61%ofthemembersareengineeringstudents,followedbyeconomicsandrelatedstudies.16newparticipantswere admittedtothe program inthe pastfiscalyear,making atotal of 31members atfiscal yearend, 39%female and 61% male.Inselectedseminars–onsubjectssuchaspresenting,moderatingandconflictresolution–theyaresystematically preparedfortheirfuturecareerintheGroup.Afurtherkeyaim oftheprogramisto buildandstrengthencontactsinthe Group.VisitswerepaidtoseveralGroupcompaniesinthereportingyear.

Forgraduateswithaninterestinresearch,thedoctoralstudentprogram"YourInnovation"providesanopportunitytowork onthe latesttechnologies inthe Group. Inthe "Create ,y-ourfuture" program, graduatetrainees getto knowthe Group strategicallyandoperationallybytakingondiversetasksandrotatingthroughvariousdepartments/locations.Preparations fortakingonkeypositionsintheGroupareroundedoutbyforeignprojectassignments,e.g.intheUSA,Brazil,India,China, Indonesia,SouthAfrica,Chile,ItalyandSpain-.Infiscal2012/2013atotalof20GrouptraineeswerehiredinGermany.

Our online careers portal is now firmly established as a central medium for gathering information and submitting job applications. Almost all applicants visit the website beforehand to find out more about our Company. The Swedish consultancy Potentialpark once again ranked ThyssenKrupp's careers website the best in Germany in 2013. A mobile version ofthecareer pageswasintroducedtwoyearsago andimmediatelytoppedthe rankings.Thissuccessfulcareers portalandassociatedapplicantmanagementsystemiscurrentlybeingrolledoutinternationally.

ToallowthenewstructuralorganizationandcooperationcreatedaspartofACTtoalsobedevelopedfurtherintheareaof HRmarketingandrecruiting,welaunchedtheGroupprojectGlobalSourcing&Recruiting@ThyssenKruppattheendofthe 2012/2013fiscalyear.Thisprojectdevelopsandestablishesgenerallyacceptedstandardsandbestpracticesthroughout theGroup.

Environment, climate and energy

Responsibleenvironmentalandclimateprotectionisaparticularlyimportantcorporateobjective.TheGroup'senvironmental policyandassociatedguidelinessetoutthebindingrequirementsforallGroupcompanies.Theyareimplementedunderour Groupwideenvironmentalandclimatemanagementsystem.TheoperationorintroductionofanISO14001environmental managementsystemisabindingrequirementforGroupcompanieswithamajorenvironmentalimpact.Almost60%ofour workforceiscoveredbysuchcertifiedenvironmentalmanagementsystems.Inaddition,systematicenergymanagementis routinelypracticedinallproductionandserviceprocesses.Thechallengestobemetdifferfrombusinesstobusiness.While productionlocationsconcentrateonplantandprocessefficiency,theserviceactivitiesfocusmainlyon reducingfleetfuel consumption,optimizingrouteplanningandintroducingalternativelogisticssolutions.MajorGroupcompanieswithenergyintensive processes are already successfully operating certified energy management systems. Around 70% of total net energyconsumptionisnowcoveredbyISO50001energymanagementsystems.

Systematicinvestmentinenvironmentalandclimateprotection

Tominimizetheenvironmental impact of our operations, oursites aroundtheworld utilizestate-of-the-artenvironmental protectiontechnologies.Wemakecontinuousinvestmentsinequipmentsuchasdustfilters,wastewatertreatmentfacilities andoilseparators,andtooptimizevehiclefleetsinourserviceactivities.Theenvironmentalandclimateprotectionsystems operatedbyourGroupcompaniesaretailoredtotheirspecificrequirements.Spendingonenvironmentalprotectionfacilities inthe reportingyearfellto€36million,whileongoingexpenditureonenvironmentalequipmentwascomparablewiththe prioryearat€542million.

Ongoingexpenditureonenvironmentalprotection

			Change
million€	2011/2012	2012/2013*	in%
Air pollution control	201	193	\$4&
Water protection	222	210	\$5&
Noise control/nature conservation	23	23	0
Recycling	101	116	15
Ongoing expenditure on environmental protection of the Group	547	542	\$1&

* excl. Stainless Global

Corporate citizenship

Supportingthepeopleinthecommunitiesinwhichweoperate,creatingapositiveenvironmentandpromotingenthusiasm for technology are second nature to ThyssenKrupp. We see ourselves as a constructive partner to our neighbors at international,national,regionalandlocallevel.Thiscommitmentcreatesvalueforbothsides,companyandcommunity,and strengthensoursocialenvironment.

ThyssenKruppsupportsnumerousinitiativesaroundtheworldthroughdonations,sponsorshipsandothermeans,focusing inparticularontheareasdefinedbytheExecutiveBoardofThyssenKruppAGsuchaspromotingyoungengineeringtalent, supporting innovation, local social involvement, and aid in the event of major emergencies and disasters such as earthquakesandfloods.

InGermanywe have beensupporting 'Jugendforscht',the country's biggest andmostsuccessful competitionfor young engineers and scientists,for many decades. ThyssenKrupp is also committedto meeting high standards of compliance. Donationstopoliticalpartiesarenotpermitted.

Legalinformation

ThefollowingsectionmainlycontainsinformationandexplanationsinaccordancewithArts289,par.4,315par.4ofthe German Commercial Code "HGB%. This information relates to company law structures and other legal relationships; it is intendedtoprovideabetteroverviewoftheCompanyandanybarrierstotakeover.

Corporategovernancedeclaration

The corporate governance statement issued in accordance with Art. 289a HGB is published on our website at www.thyssenkrupp.com/en/investor/unternehmensfuehrung_2012_2013.html. It contains a description of how the Executive Board and Supervisory Board operate, the declaration of conformity in accordance with Art. 161 Stock CorporationAct"AktG%andinformationonkeycorporategovernancepractices.

Compensationreport

The compensation report is included in the corporate governance report and forms part of the combined management reportontheGroup.

Disclosureoftakeoverprovisions

Thefollowinginformation,validSeptember30,2013,ispresented inaccordancewithArts289, par.4,315par.4 ofthe GermanCommercialCode"HGB%.

Compositionofcapitalstock

ThecapitalstockofThyssenKruppAGremainsunchangedat€1,317,091,952.64andconsistsof514,489,044no-parvalue bearershares.EachsharecarriesthesamerightsandgrantsonevoteattheAnnualGeneralMeeting.

Shareholdingsexceeding10%ofthevotingrights

ThereisonedirectshareholdingintheCompanywhichexceeds10%ofthevotingrights:TheAlfriedKruppvonBohlenund HalbachFoundation,EssenhasinformedusthateffectiveSeptember30,2013itholdsaround25.33%ofthevotingrights ofThyssenKruppAG.

AppointmentanddismissalofExecutiveBoardmembers,amendmentstotheArticlesofAssociation

TheappointmentanddismissalofmembersoftheExecutiveBoardofThyssenKruppAGissubjecttoArts84,85German Stock Corporation Act "AktG% and Art. 31 Codetermination Act "MitbestG% in conjunction with Art. 6 of the Articles of Association.AmendmentstotheArticlesofAssociation aresubjecttotheapprovaloftheAnnualGeneralMeetingwith a majority of at leastthree quarters ofthe capital stock represented; Arts 179 ff. AktG apply. Under Art. 11 par. 9 ofthe Articles of Association,the Supervisory Board is authorizedto resolve amendmentstothe Articles of Association which relateonlytotheirwording.IftheauthorizedcapitalhasnotbeenusedorhasbeenonlypartlyusedbyJanuary19,2017, theSupervisoryBoardmayalsoamendthewordingofArt.5.

AuthorizationoftheExecutiveBoardtoissueshares

UnderArt.5par.5 oftheArticlesofAssociation,theExecutiveBoardisauthorized,withtheapproval oftheSupervisory Board,to increasetheCompany'scapitalstock on one ormoreoccasions on or beforeJanuary19,2017by upto€500 million by issuing upto 195,312,500 new no-par value bearer shares in exchangefor cash and/or contributions in kind "authorizedcapital%.

Itmayexcludeshareholders'subscriptionrightswiththeapprovaloftheSupervisoryBoardinthefollowingcases:

• tocompensateforfractionalamounts;
• where necessary to grant subscription rights for new shares to the holders of conversion and/or option rights or conversion obligations outstanding atthetimetheauthorizedcapital is utilized in respect of convertible bonds and/or optionsalreadyissuedortobeissuedinthefuturebytheCompanyoritssubsidiariestotheextenttowhichtheywould be eligible as shareholders after exercising the conversion and/or option rights or after fulfillment of the conversion obligations;
• intheeventofcapitalincreasesagainstcashcontributions,iftheissuepriceofthenewsharesisnotsignificantlylower thanthestockmarketpriceofsharesalreadyquotedonthestockmarketatthetimethefinalissuepriceisdetermined andthesharesissueddonotexceedaltogether10%ofthecapitalstockeitheratthetimethisauthorizationbecomes effectiveoratthetimeitisexercised.Countedagainstthislimitareshareswhich,duringthetermofthisauthorizationup tothetimeoftheirutilization,weresoldorissuedoraretobeissuedonthebasisofotherauthorizationstotheexclusion ofsubscriptionrightsbydirectoranalogousapplicationofArt.186par.3sentence4AktG;
• intheeventofcapitalincreasesinexchangeforcontributionsinkind.

Thetotalnumberofsharesissuedinconnectionwithcapitalincreasesagainstcashcontributions/contributionsinkindon thebasisoftheaforementionedauthorizationsmaynotexceed20%ofthecapitalstockeitheratthetimetheauthorization becomeseffectiveoratthetimeitisutilized.

The ExecutiveBoard is authorized,withthe approval ofthe Supervisory Board,to determinethefurthercontent andthe termsandconditionsoftheshareissue.

AuthorizationoftheExecutiveBoardtorepurchasestock

By resolutionoftheAnnualGeneralMeetingofJanuary21,2010theCompanywasauthorizeduntilJanuary20,2015to repurchasetreasurysharesuptoatotalof10%ofthecapitalstockatthetimeoftheresolutionof€1,317,091,952.64.The authorizationmaybeexercisedinwholeorininstallments,onceorseveraltimes,inpursuitofoneorseveralpurposesby theCompanyorbythirdpartiesfortheaccountoftheCompany.AtthediscretionoftheExecutiveBoard,thebuy-backmay be effected on the open market or by means of a public offer or a public invitation to tender or by means of equity derivatives "put or call options or a combination of both%. The counter value per share paid bythe Company "excluding incidentalcosts%maynotbemorethan5%higherorlowerthanthepricedeterminedonthedayoftradingbytheopening auctionintheXetratradingsystem"oracomparablesuccessorsystem%.

Ifthesharesarerepurchasedbymeansofapublicofferorinvitationtotender,thepurchasepriceorthelimitsoftheprice rangepershare "excludingincidentalcosts%maynotbemorethan10%higherorlowerthantheaverageclosingpricein the Xetra trading system "or a comparable successor system% on the three trading days before the date of the public announcementoftheofferorinvitationtotender.

If,afterannouncementofapublicofferorinvitationtotender,therelevantpriceissubjecttosignificantchanges,theoffer orinvitationmaybeamended.Inthiscasethepriceisbasedontheaveragepriceoverthethreedaysoftradingbeforethe publicannouncementofanamendment.Thepublicofferorinvitationtotendermayspecifyfurtherconditions.Iftheofferis over-subscribed or, inthe case of an invitationtotender, not all of several equal offers can be accepted,they must be acceptedonaquotabasis.Prioritymaybegiventosmalllotsofupto100sharespershareholder.

Ifthesharesarerepurchasedbymeansofequityderivatives,theoptionsmayonlybehonoredwithsharespurchasedunder observanceoftheprincipleofequaltreatment.ThetermoftheoptionsmustendonJanuary20,2015atthelatest.Each purchase of treasury shares by means of equity derivatives is limited to a maximum of 5% of the capital stock of the Companyatthetime ofthe resolution bytheAnnualGeneralMeeting.Any right ofshareholderstoconcludesuchoption transactionswiththeCompanyshallbeexcluded,applyingArt.186par.3sentence4AktG.

TheExecutiveBoard isauthorizedtousethe repurchasedsharesforalllegallypermissible purposes.In particularitmay canceltheshares,sellthembymeansotherthanontheopenmarketorbyoffertoshareholdersorselltheminexchange foracontributioninkind,usethemtodischargeconversionrightsinrespectofconvertiblebondsissuedbytheCompanyor theCompany'ssubsidiaries,andissuethemtoemployeesoftheCompanyandaffiliatedcompaniesaswellasmembersof themanagementboardsofaffiliatedcompaniestosatisfy rightsorobligationstoacquireCompanysharesgrantedtothe aforementioned group of people. The Supervisory Board is authorized to use the repurchased stock to satisfy rights or obligationstoacquireCompanysharesgrantedtomembersoftheExecutiveBoardoftheCompany.Inthelatterfivecases, theshareholders'subscription rightsareexcluded.TheSupervisoryBoardmaydeterminethatmeasuresoftheExecutive Boardregardingthepurchaseanduseoftreasurysharesunderthisauthorizationaresubjecttoitsapproval.

By resolutionoftheAnnualGeneralMeetingofJanuary23,2009,theExecutiveBoardwasauthorizeduptoJanuary22, 2014tocarryoutthefollowingmeasureswiththeapprovaloftheSupervisoryBoard:

• to issue bearer bonds inthetotal par value of upto €2 billion andto grantthe bond holdersthe rightto convertthe bondsintoatotalofupto50millionno-par-valuebearersharesofThyssenKruppAGwithanarithmeticalshareinthe Company'scapitalstockofupto€128million"convertiblebonds%;
• to exclude the shareholders' subscription rights to convertible bonds if this is necessary "1% for fractional amounts occurringasaresultofthesubscriptionratio,"2%insofarastheconvertiblebondsareissuedagainstcashpaymentand theissuepricefortheconvertiblebondsisnotsignificantlylowerthanthetheoreticalfairvaluecalculatedaccordingto recognized financial calculation methods, or "3% to grant holders of conversion rights from previous bond issues subscriptionrightsintheamounttowhichtheywouldbeentitleduponexercisingtheirconversionrights.Theconversion pricefortreasurysharesmustnotbelowerthan80%oftheaverageclosingpriceintheXETRAtradingsystemoverthe threedaysoftradingbeforethedateofthepublicannouncementoftheofferoracceptanceofatender.TheExecutive Boarddeterminestheconditionsforconversionbonds.

Keyagreementssubjecttoconditions

ThyssenKruppAGispartytothefollowingagreementsthatcontaincertainconditionsintheeventofachangeofcontrolas aresultofatakeoverbid:

• TheCompanyhasconcluded an agreementwith a bankingconsortium onacommittedcreditfacilityintheamount of €2.5billion.ThisagreementcanbeterminatedwithimmediateeffectandoutstandingloansdeclareddueiftheCompany becomesasubsidiaryofanotherlegalentityornaturalpersonandthisis requestedbyagroupofbanks representing morethan50%ofthecreditfacility.Outstandingloanswouldthenhavetoberepaidimmediately;thecreditfacilitywould nolongerbeavailablefornewloans.

• TheCompanyhasconcludedanagreementwiththeEuropeanInvestmentBank,Luxembourg,forapromotionalloanin theamountof€210million.Thisagreementcanbeterminatedwithimmediateeffectifoneorseveralentities"excluding theAlfriedKruppvonBohlenundHalbachFoundation%actinginconcertgainindirectordirectcontroloftheCompany "change of control%. Control is understood to mean the right to direct the management and policies of the Company throughownershipofvotingcapital,bycontractorotherwise.Intheeventofterminationduetochangeofcontrol,the loanmustberepaidatadatesetbytheEuropeanInvestmentBank,butnoearlierthan30daysaftertermination.
• Inthefiscalyears2008/2009,2011/2012and2012/2013theCompany issued bondsanda privateplacementinthe totalamountof€3.95billion.Itisalsoguarantorofthefurtherbondissuedin2008/2009byitssubsidiaryThyssenKrupp FinanceNederlandB.V.inthetotalamountof€1billion.Achangeofcontrol,i.e.theacquisitionbyathirdpartyofmore than50%ofthecapitalstockormorethan50%ofthevotingsharesofThyssenKruppAG,mayundercertainconditions leadtoearlyredemptionofthebondsincludinginterest.
• TheCompanyispartytoashareholders'agreementinrespectofAtlasElektronikGmbH"jointventure%underwhichthe co-shareholder EADSDeutschlandGmbH has acall option onspecific assets and liabilities ofthe jointventure atfair value in the event that a competitor of the joint venture or of the co-shareholder directly or indirectly acquires a controllinginterestintheCompany.Ifthecalloptionisexercised,ThyssenKruppTechnologiesAG"todayoperatingunder thenameThyssenKruppTechnologiesBeteiligungenGmbH%isentitledtopurchasealltheco-shareholder'ssharesinthe jointventureatfairvalue plus5%premium.Ifthecall optionis notexercised,theco-shareholderhasa put optionin respectofthesharesinthejointventureatthespecifiedpurchasepriceconditions.

Consolidatedfinancialstatements

Consolidatedstatementoffinancialposition

Consolidatedstatementofincome

Consolidatedstatementofcomprehensiveincome

Consolidatedstatementofchangesinequity

Consolidatedstatementofcashflows

Notestotheconsolidatedfinancialstatements Summaryofsignificantaccountingpolicies 106 Acquisitionsanddisposals 122

Discontinuedoperationsanddisposalgroups 125

Notestotheconsolidatedstatement

offinancialposition

04Intangibleassets	132
05Property,plantandequipment	136
06Investmentproperty	138
07Investmentsaccountedforusing
theequitymethod	138
08Operatingleaseaslessor	139
09Inventories	140
10Tradeaccountsreceivable	140
11Otherfinancialassets	141
12Othernon-financialassets	142
13TotalEquity	142
14Share-basedcompensation	144
15Accruedpensionandsimilarobligations	146
16Provisionsforemployeebenefits
andotherprovisions	153
17Financialdebt	155

18Tradeaccountspayable	156
19Otherfinancialliabilities	156
20Othernon-financialliabilities	156
21Contingenciesandcommitments	157
22Financialinstruments	160
23Relatedparties	170
24Segmentreporting	171
25Accountingestimatesandjudgements	177

Notestotheconsolidatedstatementofincome

26Netsales	180
27Otherincome	180
28Otherexpenses	180
29Othergains/3losses4,net	180
30Governmentgrants	181
31Financialincome/3expense4,net	181
32Incometaxes	181
33Earningspershare	184
34Additionaldisclosuresontheconsolidatedstatement
ofincome	184

Notestotheconsolidatedstatementofcashflows

35Additionalinformationontheconsolidatedstatement
ofcashflows	185

Subsequentevents

36Subsequentevents	186

Otherinformation

37DeclarationsofconformitywiththeGermanCorporate
GovernanceCodeinaccordancewithArt.161ofthe
GermanStockCorporationAct3AktG4	186
38ApplicationofArt.264Par.3andArt.264b
ofGermanCommercialCode3HGB4	187
39ListoftheGroup'ssubsidiariesandequityinterests	188

IndependentAuditors'Report	189
Responsibilitystatement	191

ThyssenKruppAG—Consolidatedstatementoffinancialposition

Assets

million €	Note	Sept. 30, 2012	Sept. 30, 2013
Intangibleassets	04	4,291	4,206
Property,plantandequipment	05,29	6,053	7,484
Investmentproperty	06	283	287
Investmentsaccountedforusingtheequitymethod	07	647	949
Otherfinancialassets	11	85	1,019
Othernon-financialassets	12	219	335
Deferredtaxassets	32	1,479	1,665
Totalnon-currentassets		13,057	15,945
Inventories	09	6,367	6,351
Tradeaccountsreceivable	10	5,126	4,956
Otherfinancialassets	11	289	500
Othernon-financialassets	12	1,656	2,069
Currentincometaxassets		101	123
Cashandcashequivalents		2,221	3,813
Assetsheldforsale	03	9,467	1,547
Totalcurrentassets		25,227	19,359
Totalassets		38,284	35,304

Equity and liabilities

million €	Note	Sept. 30, 2012	Sept. 30, 2013
Capitalstock		1,317	1,317
Additionalpaidincapital		4,684	4,684
Retainedearnings*		12,4852	14,0872
Cumulativeothercomprehensiveincome		470	328
thereofrelatingtodisposalgroups/discontinuedoperations1Sept.30,2012:190;Sept.30,2013:22
EquityattributabletoThyssenKruppAG'sstockholders*		3,986	2,242
Non-controllinginterest*		540	269
Totalequity	13	4,526	2,511
Accruedpensionandsimilarobligations	15	7,708	7,356
Provisionsforotheremployeebenefits	16	235	270
Otherprovisions	16	557	676
Deferredtaxliabilities	32	32	52
Financialdebt	17	5,256	6,955
Otherfinancialliabilities	19	1	3
Othernon-financialliabilities	20	8	1
Totalnon-currentliabilities		13,797	15,313
Provisionsforemployeebenefits	16	276	298
Otherprovisions	16	1,032	1,363
Currentincometaxliabilities		349	234
Financialdebt	17	1,929	1,911
Tradeaccountspayable	18	3,514	3,713
Otherfinancialliabilities	19	848	1,241
Othernon-financialliabilities	20	8,099	8,455
Liabilitiesassociatedwithassetsheldforsale	03	3,914	265
Totalcurrentliabilities		19,961	17,480
Totalliabilities		33,758	32,793
Totalequityandliabilities		38,284	35,304

Seeaccompanyingnotestotheconsolidatedfinancialstatements. *Prior-yearfigureshavebeenadjusted1seeNote032.

ThyssenKruppAG—Consolidatedstatementofincome

million€,earningspersharein€	Note	Yearended Sept.30,2012*	Yearended Sept.30,2013
Netsales	24,26	41,536	38,559
Costofsales	04,05	\$40,072&	\$33,809&
Grossmargin		1,464	4,750
Researchanddevelopmentcost		\$222&	\$264&
Sellingexpenses		\$2,893&	\$2,758&
Generalandadministrativeexpenses		\$2,239&	\$2,150&
Otherincome	27	254	225
Otherexpenses	04,28	\$529&	\$572&
Othergains/\$losses&,net	29	316	73
Income/\$loss&fromoperations		\$3,849&	\$696&
Incomefromcompaniesaccountedforusingtheequitymethod		42	\$112&
Financeincome		785	618
Financeexpenses		\$1,392&	\$1,458&
Financialincome/\$expense&,net	31	\$565&	\$952&
Income/\$loss&fromcontinuingoperationsbeforeincometaxes		\$4,414&	\$1,648&
Incometax\$expense&/income	32	79	59
Income/\$loss&fromcontinuingoperations\$netoftax&		\$4,335&	\$1,589&
Discontinuedoperations\$netoftax&	03	\$707&	53
Netincome/\$loss&		\$5,042&	\$1,536&
Thereof:
ThyssenKruppAG'sstockholders		\$4,241&	\$1,396&
Non-controllinginterest		\$801&	\$140&
Netincome/\$loss&		\$5,042&	\$1,536&
Basicanddilutedearningspersharebasedon	33
Income/\$loss&fromcontinuingoperations\$attributabletoThyssenKruppAG'sstockholders&		\$6.88&	\$2.82&
Netincome/\$loss&\$attributabletoThyssenKruppAG'sstockholders&		\$8.24&	\$2.71&

Seeaccompanyingnotestotheconsolidatedfinancialstatements.

*Figureshavebeenadjusted\$seeNote03&.

ThyssenKruppAG— Consolidatedstatementofcomprehensiveincome

15,0422 11,5362 Netincome/1loss2 Items of other comprehensive income that will not be reclassified to profit or loss in future periods: Actuarialgains/1losses2frompensionsandsimilarobligations 11,1982 116 Changeinactuarialgains/1losses2,net 362 1432 Taxeffect 18362 73 Netactuarialgains/1losses2frompensionsandsimilarobligations Gains/1losses2resultingfromassetceiling 2 6 Changeingains/1losses2,net 0 122 Taxeffect 2 4 Netgains/1losses2resultingfromassetceiling 122 1162 Shareofunrealizedgains/1losses2ofinvestmentsaccountedforusingtheequity-method 18362 61 Subtotalofitemsofothercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossinfutureperiods: Items of other comprehensive income that will be reclassified to profit or loss in future periods: Foreigncurrencytranslationadjustment 323 13892 Changeinunrealizedgains/1losses2,net 12 7 Netrealized1gains2/losses 335 13822 Netunrealizedgains/1losses2 Unrealizedgains/1losses2fromavailable-for-salefinancialassets 9 172 Changeinunrealizedgains/1losses2,net 0 0 Netrealized1gains2/losses 142 3 Taxeffect 5 142 Netunrealizedgains/1losses2 Unrealized1losses2/gainsonderivativefinancialinstruments1cashflowhedges2 18 1432 Changeinunrealizedgains/1losses2,net 1622 1102 Netrealized1gains2/losses 26 17 Taxeffect 1182 1362 Netunrealizedgains/1losses2 4 1192 Shareofunrealizedgains/1losses2ofinvestmentsaccountedforusingtheequity-method 326 14412 Subtotalofitemsofothercomprehensiveincomethatwillbereclassifiedtoprofitorlossinfutureperiods: 15102 13802 Othercomprehensiveincome 15,5522 11,9162 Totalcomprehensiveincome Attributableto: 14,7822 11,7472 ThyssenKruppAG'sstockholders 17702 11692 Non-controllinginterest Total comprehensive income attributable to ThyssenKrupp AG's stockholders refers to: 14,0682 11,7892 Continuingoperations 17142 42 Discontinuedoperations	million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013

Seeaccompanyingnotestotheconsolidatedfinancialstatements.

*PrioryearfigureshavebeenadjustedregardingtheappropriationofequityattributabletoThyssenKruppAG'sstockholdersandnon-controllinginterest1seeNote032.

ThyssenKruppAG—Consolidatedstatementofchangesinequity

					Equity attributable to ThyssenKrupp AG's stockholders
							Cumulative other comprehensive income
million € /except number of shares1	Number of shares outstanding	Capital stock	Additional paid in capital	Retained earnings	Foreign currency translation adjustment	Available for-sale financial assets	Derivative financial instruments /cash flow hedges1	Share of investments accounted for using the equity method	Total	Non controlling interest	Total equity
Balance as of Sept. 30, 2011	514,489,044	1,317	4,684	2,833	170	2	1222	28	9,012	1,370	10,382
Netincome/1loss2*				14,2412					14,2412	18012	15,0422
Othercomprehensive income				18332	293	5	1102	4	15412	31	15102
Totalcomprehensive income				15,0742	293	5	1102	4	14,7822	17702	15,5522
Profitattributabletonon controllinginterest									0	1612	1612
Dividendpayment Otherchanges				12322 1122					12322 1122	0 1	12322 1112
Balance as of Sept. 30, 2012*	514,489,044	1,317	4,684	12,4852	463	7	1322	32	3,986	540	4,526
Netincome/1loss2 Othercomprehensive				11,3962					11,3962	11402	11,5362
income Totalcomprehensive income				61 11,3352	13562 13562	142 142	1332 1332	1192 1192	13512 11,7472	1292 11692	13802 11,9162
Profitattributabletonon controllinginterest Otherchanges				3					0 3	1392 1632	1392 1602
Balance as of Sept. 30, 2013	514,489,044	1,317	4,684	13,8172	107	3	1652	13	2,242	269	2,511

Seeaccompanyingnotestotheconsolidatedfinancialstatements.

*FigureshavebeenadjustedregardingtheappropriationofequityattributabletoThyssenKruppAG'sstockholdersandnon-controllinginterest1seeNote032.

ThyssenKruppAG—Consolidatedstatementofcashflows

million €	Year ended Sept. 30, 2012*	Year ended Sept. 30, 2013
Netincome/1loss2	15,0422	11,5362
Adjustmentstoreconcilenetincome/1loss2tooperatingcashflows:
Discontinuedoperations1netoftax2	707	1532
Deferredincometaxes,net	14522	12622
Depreciation,amortizationandimpairmentofnon-currentassets	5,509	2,065
Reversalsofimpairmentlossesofnon-currentassets	142	172
1Income2/lossfromcompaniesaccountedforusingtheequitymethod,netofdividendsreceived	1382	113
1Gain2/lossondisposalofnon-currentassets	13872	11472
Changesinassetsandliabilities,netofeffectsofacquisitionsanddivestitures:
-inventories	644	434
-tradeaccountsreceivable	15172	146
-accruedpensionandsimilarobligations	11742	11952
-otherprovisions	1232	355
-tradeaccountspayable	18762	192
-otherassets/liabilitiesnotrelatedtoinvestingorfinancingactivities	363	77
Operatingcashflows-continuingoperations	12902	981
Operatingcashflows-discontinuedoperations	1962	11952
Operatingcashflows-total	13862	786
Purchaseofinvestmentsaccountedforusingtheequitymethodandnon-currentfinancialassets	1442	1402
Expendituresforacquisitionsofconsolidatedcompaniesnetofcashacquired	1532	1352
Capitalexpendituresforproperty,plantandequipment1inclusiveofadvancepayments2andinvestmentproperty	11,5592	11,1202
Capitalexpendituresforintangibleassets1inclusiveofadvancepayments2	11442	11182
Proceedsfromdisposalsofinvestmentsaccountedforusingtheequitymethodandnon-currentfinancialassets	6	30
Proceedsfromdisposalsofpreviouslyconsolidatedcompaniesnetofcashdisposed	787	1,098
Proceedsfromdisposalsofproperty,plantandequipmentandinvestmentproperty	50	88
Proceedsfromdisposalsofintangibleassets	9	5
Cashflowsfrominvestingactivities-continuingoperations	19482	1922
Cashflowsfrominvestingactivities-discontinuedoperations	14022	1982
Cashflowsfrominvestingactivities-total	11,3502	11902
Proceedsfromissuanceofbonds	1,250	1,600
Repaymentofbonds	0	11,0002
Proceedsfromliabilitiestofinancialinstitutions	3,322	3,156
Repaymentsofliabilitiestofinancialinstitutions	13,7042	12,6582
1Repaymentson2/proceedsfromnotespayableandotherloans	94	1112
Decreaseinbillsofexchange	112	162
Decreaseincurrentsecurities	0	2
PaymentofThyssenKruppAGdividend	12322	0
Profitattributabletonon-controllinginterest	1612	1392
Expendituresforacquisitionsofsharesofalreadyconsolidatedcompanies	1172	172
Financingofdiscontinuedoperations	15112	12792
Otherfinancingactivities	11292	54
Cashflowsfromfinancingactivities-continuingoperations	11	812
Cashflowsfromfinancingactivities-discontinuedoperations	487	239
Cashflowsfromfinancingactivities-total	498	1,051
Netincrease/1decrease2incashandcashequivalents-total	11,2382	1,647
Effectofexchangeratechangesoncashandcashequivalents	17	11652
Cashandcashequivalentsatbeginningofyear	3,568	2,347
Cashandcashequivalentsatendofyear-total	2,347	3,829
AthereofcashandcashequivalentswithinthedisposalgroupsB	A13B	A16B
AthereofcashandcashequivalentswithinthediscontinuedoperationsB	A113B	A0B
Additionalinformationregardingcashflowsfrominterest,dividendsandincometaxeswhichareincludedinoperatingcashflowsofcontinuing operations:
Interestreceived	145	120
	14852	15732
Interestpaid	45	63
Dividendsreceived
Incometaxespaid	13492	13272

SeeNote35totheconsolidatedfinancialstatements. *Figureshavebeenadjusted1seeNote032.

ThyssenKruppAG—Notestotheconsolidatedfinancialstatements

CorporateInformation

ThyssenKruppAktiengesellschaft"ThyssenKruppAG"or"Company"isapubliclytradedcorporationdomiciledinDuisburg and Essen in Germany. The consolidated financial statements of ThyssenKruppAG and its subsidiaries, collectively the "Group", for the year ended September 30, 2013, were authorized for issuance in accordance with a resolution of the ExecutiveBoardonNovember29,2013.

Statementofcompliance

Applying Art.315a of the German Commercial Code HGB, the Group's consolidated financial statements have been preparedinaccordancewithInternationalFinancialReportingStandards IFRSanditsinterpretationsoftheInternational Accounting Standards Board IASB effective within the EU in accordance with the Regulation No.1606/2002 of the EuropeanParliamentandtheCouncilconcerningtheuseofInternationalAccountingStandards.

01 Summaryofsignificantaccountingpolicies

Theconsolidatedfinancialstatementshavebeenpreparedonahistoricalcostbasis,exceptforcertainfinancialinstruments thatarestatedatfairvalue.TheconsolidatedfinancialstatementsarepresentedinEurossincethisisthecurrencyinwhich the majority ofthe Group'stransactions are denominated, with all amounts roundedtothe nearest million except when otherwiseindicated;thismayresultindifferencescomparedtotheunroundedfigures.

Consolidation

TheGroup'sconsolidatedfinancialstatementsincludetheaccountsofThyssenKruppAGandallsignificantentitieswhich aredirectlyorindirectlycontrolledbyThyssenKruppAG.ControlisachievedwhereThyssenKruppAGpossessesmorethan halfofthevotingrightsofacompanyorhasinanotherwaythepowertogovernthefinancialandoperatingpoliciesofan entitysoastoobtainbenefitsfromitsactivities.Inassessingcontrol,potentialvotingrightsthatpresentlyareexercisable or convertible aretaken into account. Thefinancial statements of subsidiaries are included inthe consolidatedfinancial statementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.Onacquisition,theidentifiableassets, liabilitiesandcontingentliabilitiesofasubsidiaryaremeasuredattheirfairvaluesatthedateofacquisition.Theinterestof minority shareholders is stated at the minority's proportion of the fair values of the identifiable assets, liabilities and contingentliabilitiesrecognized.

AllsignificantintercompanytransactionsandbalancesbetweenGroupentitiesareeliminatedonconsolidation.

Included intheGroupconsolidatedfinancialstatements are 149 2011/2012: 167 domestic and 395 2011/2012: 451 foreign-controlledentitiesthatareconsolidated.Duringthefiscalyear2012/2013,21entitieswereconsolidatedforthefirst time.Duringthesameperiod,thescopeofconsolidationwasreducedby95entitiesofwhich27resultedfromtheinternal mergingofGroupentities.

12 2011/2012: 18 controlled subsidiaries are not consolidated because their combined influence on the Group's net assets,financial position and results of operations is not material. Their net sales amountto 0.01%,their income/loss before tax amounts to 0.02% and their total equity amounts to 0.17% of the Group's respective balances inclusive of discontinuedoperations.Thesenon-consolidatedsubsidiariesaremeasuredatfairvalueoratcostwhenthefairvalueof unlistedequityinstrumentscannotbereliablymeasured;theyarepresentedunderthe"Otherfinancialassets,non-current" lineitem.

Investmentsinassociatesareaccountedforusingtheequitymethodofaccounting.Anassociateisanentityoverwhichthe Groupisinapositiontoexercisesignificantinfluence,butnotcontrol,throughparticipationinthefinancialandoperating policies. Significant influence is presumed when the Group holds 20% or more of the voting rights "Associated Companies".WhereaGroupentitytransactswithanassociateoftheGroup,unrealizedprofitsandlossesareeliminatedto theextentoftheGroup'sinterestintherelevantassociate.

TheGroup reportsitsinterestsinjointly-controlledentities JointVenturesusingtheequitymethodofaccounting.Where the Group transacts with its jointly-controlled entities, unrealized profits and losses are eliminated to the extent of the Group'sinterestinthejointventure.

TheGroup has 9 2011/2012: 11AssociatedCompanies and 20 2011/2012: 22Joint Venturesthat are accountedfor usingtheequitymethodofaccounting.Another122011/2012:14AssociatedCompaniesaremeasuredatfairvalueorat costwhenthefairvalueofunlistedequityinstrumentscannotbe reliablymeasuredbecausetheircombinedinfluenceon the Group's net assets,financial position and results of operations is not material.;they are presented underthe "Other financialassets,non-current"lineitem.TheincomebeforetaxoftheimmaterialAssociatedCompaniesamountsto0.62% andtheirtotalequityto1.60%oftheGroup'srespectivebalancesinclusiveofdiscontinuedoperations.

A complete listing of the Group's subsidiaries and equity interests is published in the German Federal Gazette and is availableontheThyssenKruppwebsiteatwww.thyssenkrupp.com/en/investor/geschaeftsberichte.html.

GoodwillarisingonconsolidationrepresentstheexcessofthecostofacquisitionovertheGroup'sinterestinthefairvalue oftheidentifiableassets,liabilitiesandcontingentliabilitiesofasubsidiary,associateorjointly-controlledentityatthedate ofacquisition.Goodwillis recognizedasanassetandistestedforimpairmentannually,oronsuchother occasionsthat eventsorchangesincircumstancesindicatethatitmightbeimpaired.

Goodwillarisingontheacquisitionofanassociateorajointly-controlledentityisincludedwithinthecarryingamountofthe associate or the jointly-controlled entity, respectively. Goodwill arising on the acquisition of subsidiaries is presented separatelyinthebalancesheet.

On disposal of a subsidiary, associate or jointly-controlled entity, the attributable amount of goodwill is included in the determinationoftheprofitorlossondisposal.

Foreigncurrencytranslation

The functional and reporting currency of ThyssenKruppAG and its relevant European subsidiaries is the Euro €. Transactionsdenominatedinforeigncurrenciesareinitiallyrecordedattheratesofexchangeprevailingonthedatesofthe transactions.Monetaryassetsandliabilitiesdenominatedinsuchcurrenciesareretranslatedattheratesprevailingonthe balancesheetdate.Profitsandlossesarisingonexchangeareincludedinthenetprofitorlossfortheperiod.

Financial statements of the foreign subsidiaries included in the Group consolidated financial statements where the functionalcurrencyis otherthantheEuroaretranslated usingtheirfunctionalcurrencywhich is generallythe respective localcurrency.Thetranslationisperformedusingthecurrentratemethod,inwhichbalancesheetamountsaretranslatedto thereportingcurrencyusingtheratesofexchangeprevailingonthebalancesheetdate,whileincomestatementamounts aretranslated usingthe period's averageexchangerates.Netexchange gains or losses resultingfromthetranslation of foreignfinancialstatementsareaccumulatedandincludedinequity.Suchtranslationdifferencesarerecognizedasincome orasexpensesintheperiodinwhichtheoperationisdisposedof.

Companiesthatmanagetheirsales,purchases,andfinancingsubstantiallynotintheirlocalcurrencyusethecurrencyof their primary economic environment as their functional currency. Using the functional currency in these cases involves translatingnon-monetaryitemssuchasnon-currentassets,includingscheduleddepreciation,andequitytothefunctional currency using the average exchange rates of the respective year of addition. All other balance sheet line items are translatedusingtheexchange rateasofthebalancesheetdateandallotherincomestatementlineitemsaretranslated usingtheperiod'saverageexchangerates.Theresultingtranslationdifferencesareincludedintheconsolidatedstatement ofincomeas"Otheroperatingincomeorexpenses".Thereafter,thefunctionalcurrencyfinancialstatementsaretranslated intothereportingcurrencyusingthecurrentratemethod.

TheexchangeratesofthosecurrenciessignificanttotheGrouphavedevelopedasfollows:

Currencies

	Exchangerateasof %Basis€1(		Annualaverageexchangerate fortheyearended
	Sept.30,2012	Sept.30,2013	Sept.30,2012	Sept.30,2013
USDollar	1.29	1.35	1.30	1.31
BrazilianReal	2.62	3.04	2.45	2.76
ChineseRenminbiYuan	8.13	8.26	8.23	8.12

Intangibleassets

Intangibleassetswithfiniteusefullivesarecapitalizedatcostandamortizedonastraight-linebasisgenerallyoveraperiod of 3to 15 years, depending ontheirestimated useful lives. Technology resultingfromthe acquisition ofHowaldtswerke-DeutscheWerftHDWisamortizedoveraperiodof40years.Usefullivesareexaminedonanannualbasisandadjusted whenapplicableonaprospectivebasis.Theamortizationexpenseofintangibleassetsisprimarilyincludedinthe"costof sales"lineitemintheconsolidatedstatementofincome.

Goodwill is stated at cost and tested for impairment annually or on such other occasions that events or changes in circumstancesindicatethatitmightbeimpaired.Goodwillimpairmentlossesareincludedinotheroperatingexpenses.

Property,plantandequipment

Fixturesandequipmentarestatedatcostlessaccumulateddepreciation.Capitalizedproductioncostsforselfconstructed assetsincludecostsofmaterial,directlabour,andallocablematerialandmanufacturingoverhead.Borrowingcostsdirectly attributabletotheproductionofassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduse, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. Administrativecostsarecapitalizedonlyifsuchcostsaredirectlyrelatedtoproduction.Maintenanceandrepaircostsdayto-dayservicingareexpensedasincurred.TheGrouprecognizesinthecarryingamountofanitemofproperty,plantand equipment the cost of replacing parts and major inspection of such an item if it is probable that the future economic benefitsembodiedwithintheitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.Wherefixtures andequipmentcomprise ofsignificantpartshavingdifferentusefullivesthose partsareaccountedforasseparateunits anddepreciatedaccordingly.

Fixtures and equipment are depreciated over the customary useful life using the straight-line method. Upon sale or retirement,the acquisition or production cost andrelated accumulated depreciation are removedfromthe balancesheet andanygainorlossisincludedintheconsolidatedstatementofincome.

Thefollowingusefullivesareusedasabasisforcalculatingdepreciation:

Usefullivesofpropertyandequipment

Buildings.incl.investmentproperty0	10to50years
Buildingandlandimprovements	15to25years
Technicalmachineryandequipment	8to25years
Factoryandofficeequipment	3to10years

Investmentproperty

Investment property consists of investments in land and buildings that are held to earn rental income or for capital appreciation,ratherthanforuseintheproductionorsupplyofgoodsorservicesorforadministrativepurposesorsalein theordinarycourseofbusiness.Investmentpropertyisstatedatcostlessaccumulateddepreciation.Thefairvalueofthe Group'sinvestmentpropertyisstatedinNote06.

Impairment

Ateachbalancesheetdate,theGroupreviewsthecarryingamountsofitsintangibleassets,property,plantandequipment andinvestmentpropertytodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairmentloss.If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairmentloss ifany. The recoverableamountisthegreaterofthefairvalue lesscosttosellandthevalueinuse.In assessingthevalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscount ratethat reflectscurrentmarket conditions.Where it is not possibletoestimatethe recoverable amount of an individual asset,theGroupestimatestherecoverableamountoftheCashGeneratingUnittowhichtheassetbelongs.

GoodwillarisingonacquisitionisallocatedtotheCashGeneratingUnitsthatareexpectedtobenefitfromthesynergiesof the acquisition. Those groups of Cash Generating Units represent the lowest level withinthe Group atwhich goodwill is monitoredforinternalmanagementpurposes.TherecoverableamountoftheCashGeneratingUnitthatcarriesagoodwillis testedforimpairmentannuallyasofSeptember30,oronsuchotheroccasionsthateventsorchangesincircumstances indicatethatitmightbeimpaired.FormoredetailsrefertoNote04.

Iftherecoverableamountofanassetisestimatedtobelessthanitscarryingamount,thecarryingamountoftheassetis reducedtoitsrecoverableamount.Impairmentlossesarerecognizedasanexpenseimmediately.

Incase ofimpairmentlosses relatedtoCashGeneratingUnitsthatcarryagoodwillthecarryingamount ofany goodwill allocatedtotheCashGeneratingUnitisreducedfirst.Iftheamountofimpairmentlossesexceedsthecarryingamountof goodwill,thedifferenceisgenerallyallocatedproportionallytotheremainingnon-currentassetsoftheCashGeneratingUnit toreducetheircarryingamountsaccordingly.

Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset CashGeneratingUnitisincreasedto the revisedestimate of its recoverable amount. The revised amountcannotexceedthecarrying amountthatwould have beendeterminedhadnoimpairmentlossbeenrecognizedfortheassetCashGeneratingUnitinprioryears.Areversalof animpairmentlossisrecognizedasincomeimmediately.However,impairmentlossesofgoodwillmaynotbereversed.

Leases

Leases are classified as either finance or operating. Lease transactions whereby the Group is the lessee and bears substantiallyalltherisksandrewardsincidentaltoownershipofanassetareaccountedforasafinancelease.Accordingly, theGroupcapitalizestheleasedassetatthelowerofthefairvalueorthepresentvalueoftheminimumleasepayments andsubsequentlydepreciatestheleasedassetovertheshorteroftheleasetermanditsusefullife.Inaddition,theGroup recordsacorrespondingleaseobligationonthebalancesheetwhichissubsequentlysettledandcarriedforwardusingthe effectiveinterestmethod.AllotherleaseagreementsenteredintobytheGroup,asalessee,areaccountedforasoperating leaseswherebytheleasepaymentsareexpensedonastraight-linebasis.

LeasetransactionswherebytheGroupisthelessorandtransferssubstantiallyallofthebenefitsand risksincidenttothe ownershipofproperty,areaccountedforasasaleandfinancingoftheleasedasset.TheGrouprecognizesareceivableat anamountequaltothenetinvestmentintheleaseandincludesinterestincomeintheconsolidatedincomestatement.All otherleaseagreementsenteredintobytheGroup,asalessor,areaccountedforasoperatingleaseswherebytheleased assetremainsontheGroup'sbalancesheetandisdepreciated.Scheduledleasepaymentsarerecognizedinincomeona straight-linebasisovertheleaseterm.

Inventories

Inventories are stated at the lower of acquisition/manufacturing cost or net realizable value. Net realizable value is the estimatedsellingpriceintheordinarycourseofbusinesslessestimatedcostsofcompletionandsellingcosts.Ingeneral, inventories are valued using the average cost method. Manufacturing cost includes direct material, labor and allocable materialandmanufacturingoverheadbasedonnormaloperatingcapacity.

Financialinstruments

Afinancial instrument is any contractthat atthe sametime gives riseto afinancial asset of one entity and afinancial liabilityorequityinstrumentofanotherentity.Financialinstrumentsare recognizedassoonasThyssenKruppbecomesa contracting party to the financial instrument. In cases where trade date and settlement date do not coincide, for nonderivativefinancialinstrumentsthesettlementdateisusedforinitialrecognitionorderecognition,whileforderivativesthe tradedateisused.Financialinstrumentsstatedasfinancialassetsorfinancialliabilitiesaregenerallynotoffset;theyare onlyoffsetwhenalegalrighttoset-offexistsatthattimeandsettlementonanetbasisisintended.

Determiningfairvalue

ThefairvalueoffinancialinstrumentsisgenerallyequaltotheamounttheGroupwould receiveorpayifitexchangedor settled the financial instruments on the balance sheet date. If available, quoted market prices are used for financial instruments, especially for those categorized as available-for-sale financial assets. Otherwise, fair values are calculated basedonthemarketconditionsprevailingonthebalancesheetdate–interestrates,exchangerates,commodityprices– using middle rates or prices.In doing so,fair values are calculated using commonmethods, such asthe option pricing modelsforcurrencyandinterestrateoptionsorthediscountedcashflowmethodforinterestrateswaps.Thefairvaluesof somederivativesarebasedonexternalvaluationsbyourfinancialpartners.

Financialassets

Inparticular,financialassetsincludetradeaccounts receivable,cashandcashequivalents,derivativefinancialassets,as well as equity instruments and bonds held. Financial assets are initially recognized at fair value. This includes any transactioncostsdirectlyattributabletotheacquisitionoffinancialassets,whicharenotcarriedatfairvaluethroughprofit orlossinfutureperiods.Thefairvaluesrecognizedonthebalancesheetusuallyreflectthemarketpricesofthefinancial assets.

Tradeaccountsreceivableandothercurrentreceivables

Receivablesareaccountedforatamortizedcostlessvaluationallowances.

Impairments in the form of individual allowances for doubtful accounts adequately consider default risk. When there is objectiveevidenceofdefault,thereceivableconcernedisderecognized.Receivablesthatareimmaterial,andreceivablesof similar default risk, are grouped together and tested collectively for impairment based on past experience. Partially, impairments are accounted for using separate allowance accounts. Whether default risk is recognized by means of an allowanceaccountoradirectderecognitionofthereceivabledependsontheprobabilityofdefaultandthereliabilityofits estimation.

Receivablesthatdonotbearinterestorbearbelowmarketinterestratesandhaveanexpectedtermofmorethanoneyear arediscountedwiththediscountsubsequentlyamortizedtointerestincomeoverthetermofthereceivable.

TheGroupsellsundividedinterestsincertaintradeaccountsandnotesreceivablebothonanongoingandone-timebasis tospecialpurposeentities,whicharenotrequiredtobeconsolidated,ortootherlendinginstitutions.Financialassetssold underthesearrangementsareexcludedfrom accounts receivableintheGroup'sbalancesheetatthetime ofsaleifitis assuredthatthecashflows relatedtothose receivableswillbepassedthroughtotheacquirerandsubstantiallyall risks and rewards have been transferred. If substantially all risks and rewards have neither been transferred nor retained, financialassetsareexcludedfromthebooksatthetimeofthesaleifitisassuredthatthecashflowsofthereceivableswill be passedthroughtothe acquirer andthe acquirerhas gainedcontrol overthe receivables.Ifsubstantially all risks and rewardshavebeenretainedfinancialassetsremainintheGroup'sbalancesheetascollateralforborrowings.

Cashandcashequivalents

Cash and cash equivalents include cash on hand and demand deposits as well as financial assets that are readily convertibletocashandwhichareonlysubjecttoaninsignificantriskofchangeinvalue,theyaremeasuredatamortized cost.

Financialassetsheldfortrading

DerivativesthatarenotpartofaneffectivehedgeaccountinginaccordancewithIAS39mustbeassignedtothiscategory whenthefairvalueispositiveasofmeasurementdate.Gainsorlossesresultingfromchangesinfairvaluearerecognized inprofitorloss.

Available-for-salefinancialassets

Available-for-salefinancial assets arethose non-derivativefinancial assets not assignedto any ofthe above categories tradeaccountsreceivableandothercurrentreceivables,cashandcashequivalents,andfinancialassetsheldfortrading. Thiscategoryincludesprimarilyequityanddebtinstrumentswhichareingeneralmeasuredatfairvalue.Gainsorlosses resultingfromthemeasurementofavailable-for-salefinancialassetsarerecognizeddirectlyinequity,withtheexceptionof impairmentlossesandforeigncurrencyconversioneffects.Ondisposalofthesefinancialassets,acumulativegainorloss recognizeddirectlyinequityuntilthenisrecognizedinprofitorlossoftherespectiveperiod.Whenthefairvalueofunlisted equityinstrumentscannotbereliablymeasured,theyaremeasuredatcost.

Financialassetsmeasuredatfairvaluethroughprofitorloss

TheGroupdoesnotusetheoptiontocategorizefinancialassetsatfairvaluethroughprofitorlosswheninitiallyrecognized.

Impairmentoffinancialassets

Ateachbalancesheetdate,anassessmentismadeofwhetherthereisanyobjectiveevidencethatthecarryingamountsof financial assets not carried at fair value through profit or loss are impaired. Objective evidence includes, for example, considerablefinancial difficulty ofthe debtor obligor, disappearance of an active market, and significant changes in the technological, market, economic or legal environment. A significant or prolonged decline in the fair value of an equity instrumentisanobjectiveevidenceofimpairment.

The impairment loss on a financial asset carried at amortized cost is measured as the difference between the asset's carryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthefinancialasset'soriginaleffective interestrate.Animpairmentlossisrecognizedinprofitorloss.

Ifinasubsequentperiod,theamountoftheimpairmentlossdecreasesandthedecreasecanberelatedobjectivelytoan eventoccurringaftertheimpairmentwas recognized,thepreviouslyrecognizedimpairmentlossisreversedthroughprofit orloss.

Ifthedecreaseinfairvalueofanavailable-for-salefinancialassetwaspreviouslyrecognizeddirectlyinequity,suchlossis transferredfromequitytoprofitorlossassoonasanobjectiveevidenceofanimpairmentlossexists.Theamountofthe impairment representsthe difference between historicalcost less any redemption and amortization andthecurrentfair valuelessanyimpairmentlossonthatfinancialassetpreviouslyrecognizedinprofitorloss.Impairmentlossesonequity instrumentsclassifiedasavailable-for-saleandrecognizedintheincomestatementarenotreversedthroughprofitorloss, but ratherthroughequity. The amount of any reversal of anywrite-down of debt instruments,which objectively occurred aftertheimpairmentwasrecognized,isrecognizedinprofitorloss.

Financialliabilities

Financial liabilities are liabilities that must be settled in cash or other financial assets. These especially include trade accounts payable, derivative financial liabilities and components of financial debt, mainly bonds and other securitized liabilities,liabilitiestofinancialinstitutionsandfinanceleaseliabilities.Financialliabilitiesareinitiallycarriedatfairvalue. Thisincludesanytransactioncostsdirectlyattributabletotheacquisitionoffinancialliabilities,whicharenotcarriedatfair valuethroughprofitorlossinfutureperiods.

Tradeaccountspayableandothernon-derivativefinancialliabilities

Trade accounts payable and other non-derivativefinancial liabilities are in generalmeasured at amortized cost usingthe effective interest method. Finance charges, including premiums payable on redemption or settlement, are periodically accrued usingthe effective interestmethod and increasethe liabilities' carrying amounts unlessthey have already been settledintheperiodinwhichtheywereincurred.

Financialliabilitiescarriedatfairvaluethroughprofitorloss

The Group does not use the option to categorize financial liabilities at fair value through profit or loss when initially recognized.

Financialliabilitiesheldfortrading

Derivativesthat are not part of aneffective hedge accounting in accordancewithIAS39must beclassified as "heldfor trading" and thus carried at fair value through profit or loss. In the event of negative fair values, such derivatives are recognizedas"financialliabilitiesheldfortrading".

Derivativefinancialinstruments

TheGroupgenerallyusesderivativefinancialinstrumentstohedgeitsexposuretoforeigncurrencyexchangerate,interest rateandcommoditypricerisksarisingfromoperational,financingandinvestmentactivities.Derivativesareusedgenerally tohedgeexistingoranticipatedunderlyingtransactions.Suchderivativesandso-called"embeddedderivatives",whichare an integral part of a non-derivative host contract and must be accounted for separately, are measured initially and subsequentlyatfairvaluethroughprofitorloss.Gainsorlossesduetofluctuationsinfairvaluearerecognizedimmediately inprofitorloss.

Ifderivativesareusedtohedgetheexposuretovariabilityincashflowsandtohedge balancesheetitems,the hedging relationship qualifies for hedge accounting under IAS39 if certain conditions are met. This can reduce volatility in the incomestatement. There arethreetypes of hedgingrelationships:fair value hedge,cashflow hedge and hedge of a net investmentinaforeignoperation.

In afair value hedge,which is a hedge ofthe exposureto changes infair value of a recognized asset or liability or an unrecognizedfirmcommitment,thehedginginstrumentisstatedatfairvalueandanychangesinfairvalueareimmediately recognizedinprofitorloss.Changesinfairvalueofahedgedasset,liabilityorfirmcommitment,whichareattributabletoa particularhedged risk,arealsorecognizedinprofitorloss.Givenaperfecthedge,changesinfairvalueoftheunderlying and hedging transactions are almost entirely offset. If the asset or liability is measured at amortized cost according to generalaccountingguidelines,itscarryingamountmustbeadjustedforthecumulativechangesinfairvalueresultingfrom thehedgedrisk.However,ifthehedgediteme.g.available-for-salesecurityisrecognizedatfairvaluewithoutinfluencing theincomestatementinaccordancewiththegeneralaccountingguidelines,changesinfairvalueresultingfromthehedged riskarerecognizedinprofitorloss,contrarytothegeneralguidelines.

Acashflowhedgeisahedgeoftheexposuretovariabilityincashflowsassociatedwitharecognizedassetorliability,a highlyprobableforecasttransaction,orforeigncurrencyriskofafirmcommitment.Theeffectiveportionofthefluctuations infairvalueisimmediatelyrecognizedinequity.Theeffectiveportionisreclassifiedfromequitytoprofitorlossinthesame period during which the hedged underlying transaction affects profit or loss. If a hedge subsequently results in the recognition ofanon-financialasset e.g. property, plantandequipment orinventories,thenthefluctuations infairvalue thatwere recognizedinequityaffectthevalueofthenon-financialasset.Whenmeasuringtheeffectivenessbetweenthe underlyinghedgedtransactionandthehedginginstrumenttheremainingineffectiveportionofthehedgeandadjustments duetointerestratechangesareimmediatelyrecognizedintheconsolidatedstatementofincome.Inthecaseofcurrency risks,theeffectivenessofthehedgingrelationshipisestablishedbyincludingchangesinvalueduetospotratechangesas ahedgedriskandexcludingtheinterestcomponent.

Whenthehedginginstrumentexpiresorissold,terminatedorexercised,orthehedgingrelationshipisdiscontinued,butthe forecastunderlyingtransactionisstillexpectedto occur,thecumulative gain orlossonthehedging instrumentthathas beenrecognizedinequityremainsseparatelyinequityuntiltheforecasttransactionoccurs.Itisrecognizedinprofitorloss as detailed above when the transaction affects the income statement. If the hedged forecast transaction is no longer expected to occur, any related cumulative unrealized gain or loss recognized in equity is recognized immediately in the consolidatedstatementofincome.

The Groupmainly uses cashflow hedgesto hedge its exposureto changes inforeign currency rates, interest rates and commodityprices.Inaddition,theGroupcarriesouthedginginaccordancewiththebasicprinciplesof riskmanagement under which existing risks are hedged economically, but the hedges do not comply with the strict hedge accounting requirements under IAS39. The Group does not use hedge accounting for foreign currency derivatives that have been concludedtohedgeforeigncurrency risksarisingfrommonetary balancesheetitems. Thus,theeffectsfromtheforeign currencyconversion ofbalancesheetitems recognizedin profit orlossare offsetagainstthefluctuationsinfairvalueof derivatives,whicharealsorecognizedinprofitorloss.

Currently,theGroupdoesnotapplyhedgingofanetinvestmentinaforeignoperation.

MoreinformationaboutfinancialinstrumentsisprovidedinNote22.

Deferredincometaxes

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computationoftaxableprofitaswellasforunusedtaxlossesorcredits.Inprinciple,deferredtaxliabilitiesarerecognized for alltaxabletemporary differences and deferredtax assets are recognizedtotheextentthat it isprobablethattaxable profitswill beavailableagainstwhich deductibletemporarydifferencescan be utilized.Deferredtaxassetsandliabilities are also recognized on temporary differences arising from business combinations except to the extent they arise from goodwillthatisnottakenintoaccountfortaxpurposes.

Deferredtaxesarecalculatedattheenactedorsubstantiallyenactedtaxratesthatareexpectedtoapplywhentheassetor liabilityissettled.Deferredtaxischargedorcreditedtotheincomestatement,exceptwhenitrelatestoitemscreditedor chargeddirectlytoequity,inwhichcasethedeferredtaxisalsorecognizeddirectlyinequity.

Cumulativeothercomprehensiveincome

Theequitylineitem"Cumulativeothercomprehensiveincome"includeschangesintheequityoftheGroupthatwerenot recognizedintheconsolidatedstatementofincomeoftheperiod,exceptthoseresultingfrominvestmentsbyownersand distributions to owners. Cumulative other comprehensive income includes foreign currency translation adjustments, unrealizedholdinggainsandlossesonavailable-for-salefinancialassetsandonderivativefinancialinstrumentsaswellas the share of the other comprehensive income of associates and joint ventures accounted for using the equity method. Actuarialgainsandlossesarereportedinretainedearningsintheperiodthattheyarerecognizedasothercomprehensive income.

Accruedpensionandsimilarobligations

TheGroup's net obligationfor defined benefit andother postretirement benefit plans have beencalculatedforeach plan usingthe projected unit credit method as ofthe balance sheet date. A quarterly valuation of pensions and health care obligationsisperformedonthebasisofupdatedinterestratesandfairvaluesofplanassets.

Allactuarial gainsandlosses as ofOctober01,2004,the date oftransitiontoIFRS,were recognizedinequity.Actuarial gainsandlossesthatarisesubsequenttoOctober01,2004,aswellasgainsandlosses resultingfromassetceilingare recognizeddirectlyinequityandpresentedinthestatementofcomprehensiveincome.

Asfarasthefairvalueofplanassetsrelatedtopensionsorsimilarobligationsexceedsthecorrespondingobligation,the recognition of an asset in respectto such surplus is limited. Asfar as in connection with plan assetsminimumfunding requirementsrelatedtopastserviceexist,anadditionalliabilitymayneedtoberecognizedincasetheeconomicbenefitof asurplus–alreadytakingintoaccountthecontributionstobemadeinrespectoftheminimumfundingrequirements–is limited. Thelimitis determined by unrecognized pastservicecostsandthe presentvalue ofanyfuture refundsfromthe planorreductionsinfuturecontributionstotheplanassetceiling.

Service costfor pensions and other postretirement obligations are recognized as anexpense in incomefrom operations, while interest cost and the expected return on plan assets recognized as components of net periodic pension cost are includedinnetfinancialincome/expenseintheGroup'sconsolidatedstatement ofincome.When benefitsofa plan are improved, the portion of the increased benefit relating to past service is recognized as an expense in income from operationsonastraight-linebasisovertheaverageperioduntilthebenefitsbecomevested.Totheextentthatthebenefits vestimmediately,theexpenseisrecognizedimmediately.

TheGroup'sobligationsforcontributionstodefinedcontributionplansarerecognizedasexpenseinincomefromoperations asincurred.

TheGroupalsomaintainsmulti-employer plans.In principle,thesemulti-employer planscontain definedbenefitplansas wellasdefinedcontributionplans.Withrespecttodefinedbenefitmulti-employerplanstheseareaccountedforinthesame wayasanyotherdefinedbenefitplanincasetherequiredinformationisavailable.Otherwisetheseplansareaccountedfor asdefinedcontributionplans.InparticularintheUSA,SwedenandintheNetherlands,thereexistmulti-employerdefined benefitplansthatareaccountedforasdefinedcontributionplansduetothefactthatthepensionobligationsandtheplan assetscannotbeassignedtotheparticipatingemployers.

Provisions

ProvisionsarerecognizedwhentheGrouphasapresentobligationasaresultofapasteventwhichwillresultinaprobable outflow of economic benefitsthat can be reasonably estimated. The amount recognized represents best estimate ofthe settlementamountofthepresentobligationasofthebalancesheetdate.Expectedreimbursementsofthirdpartiesarenot offsetbutrecordedasaseparateassetifitisvirtuallycertainthatthereimbursementswillbereceived.Wheretheeffectof thetimevalueofmoneyismaterial,provisionsarediscountedusingamarketrate.

A provision for warranties is recognized when the underlying products or services are sold. The provision is based on historicalwarrantydataandaweightingofallpossibleoutcomesagainsttheirassociatedprobabilities.

Provisionsfor restructuringcostsare recognizedwhentheGrouphasadetailedformalplanforthe restructuringandhas notifiedtheaffectedparties.

AprovisionforonerouscontractsisrecognizedwhentheexpectedbenefitstobederivedbytheGroupfromacontractare lowerthantheunavoidablecostofmeetingitsobligationsunderthecontract.

Share-basedcompensation

TheGrouphasmanagementincentiveplanswhichgrantstockrightstoexecutiveandsenioremployees.Thefairvalueof theserightsiscalculatedonthedateofgrantandrecognizedasanexpenseonastraight-linebasisoverthevestingperiod with a corresponding increase in provisions. Furthermore a portion of the variable compensation is granted as share appreciationrightstotheExecutiveBoardmembersofThyssenKruppAGandadditionalselectedexecutiveemployees.For bothtypesofcompensation,theprovisionisremeasuredateachbalancesheetdateandatsettlementdate.Anychangesin thefairvalueoftheprovisionarerecognizedaspartofincomefromoperations.

SeealsoinformationprovidedinNote14.

Revenuerecognition

Revenuefromthesaleofgoodsisrecognizedwhenthesignificantrisksandrewardsofownershiphavebeentransferredto the buyer andthe amount of revenue can be measured reliably. Revenuefrom services is recognizedwhen services are rendered.Norevenueisrecognizediftherearesignificantuncertaintiesregardingrecoveryoftheconsiderationdueorthe possiblereturnofgoods.Revenueisrecognizednetofapplicableprovisionsfordiscountsandallowances.

Construction contract revenue and expense are accounted for using the percentage-of-completion method, which recognizes revenue as performance of the contract progresses. The contract progress is determined based on the percentage of costs incurred to date to total estimated cost for each contract after giving effect to the most recent estimatesoftotalcost.Iftheconstructiontakesasubstantial periodoftime,contractcostsalsoinclude borrowingcosts thataredirectlyattributable.

ContractswheretheGroupprovidesengineeringservicesarealso accountedforlikeconstructioncontracts.Construction contractsunderthepercentage-of-completionmethodaremeasuredatconstructioncostplusprofitsearnedbasedonthe percentageofthecontractcompleted.

Revenuesnetofadvancepaymentsreceivedarerecognizedastradeaccountsreceivableinthebalancesheet.Variationsin contractworkandclaimsareincludedtotheextentthatitisprobablethattheywillbeapprovedbythecustomerandthe amountcanbereliablymeasured.Reliablymeasurableincentivepaymentsarerecognizedifitisprobablethatthespecified performancestandardswillbemetorexceeded.

Wheretheincomeofaconstructioncontractcannotbeestimatedreliably,contractrevenuethatisprobabletoberecovered isrecognizedtotheextentofcontractcostsincurred.Contractcostsarerecognizedasexpensesintheperiodinwhichthey areincurred.

Where it is probable that total contract costs will exceed total contract revenue, the expected loss is recognized as an expenseimmediately.

Revenues from contracts with multiple element arrangements, such as those including both goods and services, are recognizedaseachelementisearnedbasedonobjectiveevidenceoftherelativefairvalueofeachelement.

Interest income is accrued on atime basis by referencetothe principal outstanding and atthe interest rate applicable. Dividendincomefrominvestmentsisrecognizedwhentheshareholders'rightstoreceivepaymenthavebeenestablished.

Governmentgrants

Governmentgrantsarerecognizedonlyifthereisreasonableassurancethattheassociatedconditionswillbemetandthe grants will be received. Grants related to assets are reported as a reduction of cost of the assets concerned with a corresponding reduction of depreciation and amortization in subsequent periods. Grants relatedto income are stated as otheroperatingincomeintheperiodsinwhichtheexpensesintendedtobecompensatedbythegrantarerecognized.

Researchanddevelopmentcosts

Researchcostsareexpensedasincurred.

Developmentcosts,whereby researchfindings are appliedto a plan or designforthe production of new or substantially improved products and processes, arecapitalized ifthe product or process istechnically and commerciallyfeasible, it is intented to complete the intangible asset, there is a market for the output of the intangible asset, the attributable expenditurecanbemeasuredreliably,andtheGrouphassufficientresourcestocompletedevelopment.Otherdevelopment costsareexpensedasincurred.Capitalizeddevelopmentcostsofcompletedprojectsarestatedatcostlessaccumulated amortization. Costs include direct costs of material, direct labour, and allocable material and manufacturing overhead. Borrowingcostsdirectlyattributabletoaproductionofassetsthatnecessarilytakesasubstantialperiodoftimetogetthe assetsreadyfortheirintendeduse,areincludedinthecostofthoseassetsuntiltheassetsarereadyfortheirintendeduse. Administrativecostsarecapitalizedonly ifsuchcostsaredirectly relatedto production.Capitalized developmentcostsof projectsnotyetcompletedarereviewedforimpairmentannuallyormorefrequentlywhenanindicatorofimpairmentarises duringthereportingyear.

Earningspershare

Basic earnings per share amounts are calculated by dividing net income/loss attributable to ThyssenKruppAG's shareholdersbytheweightedaveragenumberofsharesoutstanding.Sharessoldduringtheperiodandsharesreacquired duringtheperiodareweightedfortheportionoftheperiodthattheywereoutstanding.Therewerenodilutivesecuritiesin theperiodspresented.

Segmentreporting

In accordancewiththeso-calledmanagement approach,segment reporting ofthe ThyssenKruppGroup is based onthe internal organizational and reporting structure. The data usedto determinethe internal keyfigures are derivedfromthe IFRSconsolidatedfinancialstatements.

Singleassetsheldforsale,disposalgroupsanddiscontinuedoperations

Asinglenon-currentassetisclassifiedasheldforsaleifitscarryingamountwillbe recoveredprincipallythroughasale transaction ratherthanthroughcontinuing use. TheGroup reports assets and liabilities as a disposal group,thatwill be disposedofbysaleorotherwiseinasingletransaction,whichcollectivelymeettheheldforsalecriteriaasspecifiedinIFRS 5"Non-currentAssetsHeldforSaleandDiscontinuedOperations".TheGroupreportstheassetsandliabilitiesofadisposal groupseparatelyinthebalancesheetlineitem"assetsheldforsale/disposal"and"liabilitiesassociatedwithassetsheld forsale/disposal", respectively.Unlessa disposal groupqualifiesfor discontinuedoperations reporting,the revenuesand expensesofthedisposalgroupremainwithincontinuingoperationsuntilthedateofdisposal.TheGroupreportstheresults ofadisposalgroupthatalsoqualifiesasacomponentoftheGroupasdiscontinuedoperationsifit representsaseparate majorlineofbusinessorgeographicalareaofoperations.TheGroupreportstheresultsofdiscontinuedoperationsinthe periodinwhichtheyoccurseparatelywithintheconsolidatedstatementofincomeas"discontinuedoperationsnetoftax". Allpriorperiodconsolidatedstatementsofincomeareadjustedtoreporttheresultsofthecomponentwithindiscontinued operations.Intheconsolidatedstatementofcashflowsthecashflowsresultingfromdiscontinuedoperationsarepresented separatelyfromcashflowsresultingfromcontinuingoperations;prioryearpresentationhasbeenadjustedaccordingly.In ordertopresenttheproportionofincome/lossattributabletodiscontinuedoperations,netsalesandexpensesarisingfrom intercompany transactions are recognized provided that these transactions will not continue after the disposal of the discontinuedoperations.

Oninitialclassificationasheldforsale,non-currentassetsarerecognizedatthelowerofthecarryingamountandfairvalue lesscoststosellanddepreciationandamortizationceases.Adisposalgroupisinitiallymeasuredinlinewiththerespective IFRSstandardstodeterminethecarryingamountofthedisposalgroupwhichisthencomparedtothefairvaluelesscosts tosellofthegroupinordertorecognizethegroupatthelowerofbothamounts.Impairmentlossesoninitialclassification asheldforsaleareincludedinprofitorloss,asaregainsandlossesonsubsequentremeasurement,butnotinexcessof thecumulativeimpairmentloss.

Ifthechangetoadisposalplanmeansthatthecriteriaforclassificationasadiscontinuedoperationarenolongermet,the corresponding disposal group must be presented as a continuing operation again under IFRS 5. As a result, the consolidatedstatementofincomeforthereportingyearandalsotheprioryearhastobeadjustedsothattheexpensesand income of the disposal group are re-included in income from continuing operations. Analogously in the consolidated statementofcashflowsthecashinflowsandoutflows ofthe disposal groupare reclassifiedtocontinuing operationsfor bothreportingyears.Howeverdespitethechangedclassification,theassetsandliabilitiesofthedisposalgroupcontinueto bepresentedseparatelyintheconsolidatedstatementoffinancialpositionfortheprioryearunder"Assetsheldforsale" and"Liabilitiesassociatedwithassetsheldforsale",andareonlyre-includedintheindividuallineitemsoftheconsolidated statementoffinancialpositionforthereportingyear.Thedisposalgroupismeasuredatthelowerofcarryingamountand recoverableamount.

Financialstatementclassification

Certain line items onthe consolidated balancesheet and inthe consolidatedstatement of income havebeen combined. These items are disclosedseparatelyintheNotestotheconsolidatedfinancialstatements.Certain reclassificationshave beenmadetotheprioryearpresentationtoconformtothatofthecurrentyear.

IngeneraltheGroupclassifiesassetsandliabilitiesascurrentwhentheyareexpectedtoberealizedorsettledwithintwelve months after the balance sheet date. Group companies that have operating cycles longer than twelve months classify assetsandliabilitiesascurrentiftheyareexpectedtoberealizedwithinthecompany'snormaloperatingcycle.

Useofestimates

ThepreparationoftheGroupconsolidatedfinancialstatementsrequiresManagementtomakejudgements,estimatesand assumptionsthat affectthe application of policies and reported amounts of assets and liabilities, income andexpenses. Actualresultsmaydifferfromtheseestimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized inthe period in whichthe estimate is revised ifthe revision affects onlythat period, or inthe period ofthe revisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.

AccountingestimatesandjudgementsmadebyManagementintheapplicationofIFRSthathaveasignificanteffectonthe consolidatedfinancialstatementsarepresentedinNote25.

Recentlyadoptedaccountingstandards

Infiscalyear2012/2013,ThyssenKruppadoptedthefollowingamendedstandard:

InJune2011theIASBissuedamendmentstoIAS1"PresentationofFinancialStatements"underthetitle"Presentationof Items of Other Comprehensive Income". The amendments require a classification of items presented in other comprehensiveincomeintoitemsthatmightsubsequentlybereclassifiedtotheincomestatementanditemsthatwillnot. The amendments to IAS 1 are compulsory for fiscal years beginning on or after July 01, 2012. The adoption of the amendmentsdidnothaveamaterialimpactontheGroup'sconsolidatedfinancialstatements.

Issuedaccountingstandardsthathavenotbeenadoptedinfiscalyear2012/2013

Infiscalyear2012/2013,thefollowingstandards,interpretationsandamendmentshavebeenissued.Theiradoptionhas notbeenmandatoryfor2012/2013andmustbeendorsedpartiallybytheEU:

InNovember2009theIASBissuedthenewstandardIFRS9"FinancialInstruments"ontheclassificationandmeasurement of financial assets. This standard is the first part of the three-part project to replace completely IAS 39 "Financial Instruments:RecognitionandMeasurement".InaccordancewiththeapproachofIFRS9financialassetsaremeasuredat amortized cost or fair value. The classification to one of the two measurement categories is based on how an entity managesitsfinancialinstrumentssocalledbusinessmodelandthecontractualcashflowcharacteristicsofthefinancial assets. In October 2010 the IASB issued requirements on the accounting for financial liabilities which amend IFRS 9 "Financial Instruments" and completethe classification andmeasurement phase ofthe IASB's projectto replaceIAS 39 "FinancialInstruments:RecognitionandMeasurement".Withthenewrequirements,anentitychoosingtomeasureliability atfairvaluewillrecognizetheportionofthechangeinitsfairvalueduetochangesintheentity'sowncreditriskinother comprehensiveincomewithinequityandnotinprofitandloss.IssuingamendmentstoIFRS9"FinancialInstruments"and toIFRS7"FinancialInstruments:Disclosures"inDecember2011,theIASBdefersthemandatoryeffectivedateofIFRS9 from January 01, 2013to January 01, 2015. In additionthe amendment provides relieffromthe requirementto restate comparative financial statements for the effect of applying IFRS 9; earlier application is permitted. Instead, additional transitiondisclosureshavebeenaddedtoIFRS7tohelpusersofthefinancialstatementstounderstandtheeffectthatthe initial application of IFRS 9 has on the classification and measurement of financial instruments. The EU has not yet endorsedthestandards.Currently,Managementisnotabletofinallyassesstheimpactoftheadoption–ifendorsedbythe EUinthecurrentversion.

InDecember2010theIASBissuedanamendmenttoIAS12"IncomeTaxes".UnderIAS12,themeasurementofdeferred taxes depends onwhetherthe carrying amount of an asset is recoveredthrough use or sale. Such assessment is often difficult, in particular when the asset is measured using the fair value model in IAS 40 for investment property. The amendmentintroducesapresumptionthatingeneralaninvestmentpropertyisrecoveredthroughsale.Theapplicationof the amended standard is compulsory for fiscal years beginning on or after January 01, 2012. In the context of the endorsement,the IASB defersthemandatory effective datefrom January 01, 2012to January 01, 2013. The amended standardwillnothaveanyimpactontheGroup'sconsolidatedfinancialstatementsbecausecurrentlyinvestmentproperty isaccountedforatcostlessaccumulateddepreciation.

In May 2011 the IASB issued three new standards dealing with various aspects of interests in entities: IFRS 10 "ConsolidatedFinancialStatements",IFRS11"JointArrangements"andIFRS12"DisclosureofInterestsinOtherEntities". AtthesametimeitissuedamendedversionsofIAS27"SeparateFinancialStatements"2011andIAS28"Investmentsin Associates andJoint Ventures" 2011. The new andamendedstandards are applicableforfiscal years beginning on or afterJanuary01,2013.Inthecontext oftheendorsement,theIASBdefersthemandatoryeffective dateforfiscalyears beginningonorafterJanuary01,2014.Earlierapplicationispermitted,butaswellasdisclosingthefactithasadopted early,anentitymustearly-adopteachofIFRS10,IFRS11,IFRS12,IAS272011andIAS282011atthesametime.An exceptiontothisrequirementexistsforIFRS12;itsdisclosurerequirementsmaybeearly-adoptedeitherinfullorinpart.

IFRS 10 introduces a single definition for the concept of control for all entities, thus creating a standard basis for determining whether a parent-subsidiary relationship exists and should be included in the scope of consolidation. The standard contains comprehensive guidance for determining whether control exists. It completely replaces SIC-12 "Consolidation–SpecialPurposeEntities"andpartly replacesIAS27"ConsolidatedandSeparateFinancialStatements". TheeffectsoftheadoptionofIFRS10arestillanalyzed.

IFRS 11 prescribesthe accountingfor circumstances inwhich an entity exercises joint control of a joint venture or joint operation. The newstandard replacesIAS 31 "Interests inJoint Ventures" andSIC-13 "JointlyControlled Entities –Non-Monetary Contributions by Venturers". The adoption of IFRS 11will implythatthe joint arrangement Hüttenwerke Krupp MannesmannGmbHcurrentlyaccountedforusingtheequitymethod ofaccountingis nolongerconsideredtobe ajoint venture but a joint operation. This results in including the assets and liabilities on a pro rata basis in the Group's consolidatedfinancialstatements.

IFRS 12 combines in one standard all disclosure requirements for interests in other entities, including interests in subsidiaries, associates, joint arrangements and structured entities. The new standard replaces the previous disclosure requirements in IAS 27 "Consolidated and Separate Financial Statements", IAS 28 "Investments in Associates", IAS 31 "Interests inJoint Ventures" and SIC-12 "Consolidation – Special Purpose Entities". The adoption ofIFRS 12willextend significantlytheGroup'sdisclosures.

TheamendedIAS27nowfocusessolelyonaccountinganddisclosure requirementsforinvestmentsinsubsidiaries,joint venturesandassociateswhenseparatefinancialstatementsaccordingtoIFRSarepresented.Thiswillhavenoimpacton theGroup'sconsolidatedfinancialstatements.

The amended IAS 28 prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. This will have no materialimpactontheGroup'sconsolidatedfinancialstatements.

In May 2011the IASB issuedthe new standard IFRS 13 "Fair Value Measurement".IFRS 13 contains a definition offair valueandrulesonhowtodetermineitifotherIFRSstandardsrequirefairvaluemeasurement;thestandarditselfdoesnot prescribeinwhichcasesfairvalueistobeused.WiththeexceptionofthestandardsexplicitlyexcludedinIFRS13,IFRS13 definesstandarddisclosurerequirementsforallassetsandliabilitiesthataremeasuredatfairvalueandforallassetsand liabilitiesforwhichdisclosureoffairvalueinthenotestotheconsolidatedfinancialstatementsisrequired;inparticularit widensthedisclosurerequirementsfornon-financialassets.Thenewstandardiscompulsoryforfiscalyearsbeginningon orafterJanuary01,2013andshallbeappliedprospectively.Inthefirstyearofapplicationcomparativeinformationisnot required. The adoption of the new standard will not have a material impact on the Group's consolidated financial statements,butresultinadditionaldisclosures.

In June 2011 the IASB issued amendments to IAS 19 "Employee Benefits". The amendments mainly concern the elimination of deferred recognition of actuarial gains and losses corridormethod infavour of immediate recognition in othercomprehensiveincomeinequityandtherecognitionofanetinterestexpenseorincomeresultingfromnetliabilities orassetsofapensionplanwhichisdeterminedbyusingthediscount rate.Furthermoreanimmediate recognitionofthe totalpastservicecostsisrequired,theexposureofotheradministrationcostsaspartofnetperiodicpensioncostaswell asthedistributionofcosts resultingfromtop-uppaymentstoemployeesunderearly retirementovertheperiodinwhich theyareearned.Furthermoreadditionaldisclosureregardingthecharacteristicsofpensionplansandtheassociated risks forthe entity is required. The amendmentsto IAS 19 are compulsoryforfiscal years beginning on or after January 01, 2013.Usingthediscountrateforcalculatingthenetinterestexpenseorincomewouldhaveincreasednetinterestexpenses ofapproximately€44millioninfiscalyear2012/2013.In2013/2014thiseffectwillamounttoapproximately€39million. Theimmediaterecognitionofnotyetrecognizedpastservicecostsrequiredbytheamendmentswouldhavereducedequity approximatelyby€3million.Infiscalyear2013/2014thiseffectwillamounttoapproximately€2million.Theexposureof other administration costs in net periodic pension cost would have led to an effect of approximately €6 million. The correspondingamountinfiscalyear2013/2014willbeapproximately€5million.Theeliminationofdeferredrecognitionof actuarialgainsandlossescorridormethodwillnothaveanyimpactsonThyssenKruppasactuarialgainsandlosseshave alreadybeenrecognizedinothercomprehensiveincomeinequitysofar.Moreovertheprovisionsforearlyretirementwould have declined by approximately €14 million. The corresponding expenses would have increased by approximately €2 million.Infiscalyear2013/2014thiseffectwillamounttoapproximately€4million.Theadoptionoftheamendedstandard willresultinadditionaldisclosures.

InOctober2011theIASBissuedtheIFRICinterpretation20"StrippingCostsintheProductionPhaseofaSurfaceMine". Theinterpretationregulatestheaccountingforstrippingcostsintheproductionphaseofasurfacemine.Theinterpretation clarifies under which conditions an asset must be recognized for the relating stripping measures and how initial and subsequentmeasurementofthisassethastobedetermined.Theinterpretationiscompulsoryforfiscalyearsbeginningon orafterJanuary01,2013.ThisinterpretationwillhavenoimpactontheGroup'sconsolidatedfinancialstatements.

In December 2011 the IASB issued an amendment to IAS 32 "Financial Instruments: Presentation" which clarifies the requirementsforoffsettingfinancialassetsandfinancialliabilitiestoeliminateexistinginconsistenciesincurrentpractice. TheamendmentiscompulsoryforfiscalyearsbeginningonorafterJanuary01,2014andshallbeappliedretrospectively; earlierapplicationispermitted.Currently,Managementdoesnotexpecttheadoptionoftheamendmenttohaveamaterial impactontheGroup'sconsolidatedfinancialstatements.

In December 2011 the IASB issued an amendment to IFRS 7 "Financial Instruments: Disclosures" which requires disclosuresinthecontextofcertainoffsettingarrangements.Theobligationfordisclosureshastobeappliedregardlessof whethertheoffsettingarrangementsresultinanyactualoffsettingoftherespectivefinancialassetsandfinancialliabilities. The new disclosure requirements shall simplify comparing financial statements prepared in accordance with IFRS and financialstatementspreparedinaccordancewithUSGAAP.Theamendmentiscompulsoryforfiscalyearsbeginningonor afterJanuary01,2013andshallbeappliedretrospectively.Firsttimeadoptionwillimplyextendeddisclosures.

In May 2012the IASB issuedthefourth omnibus standard "Improvementsto IFRSs" as part of its annual improvement process project.Thisstandardslightlyadjustsfivestandards IFRS1"First-timeAdoptionofIFRS,IAS1 "Presentation of Financial Statements", IAS 16 "Property, Plant and Equipment", IAS 32 "Financial Instruments: Presentation", IAS 34 "Interim Financial Reporting". The amendments are effective for fiscal years beginning on or after January 01, 2013. Currently, Management does not expect the adoption of the amendment to have a material impact on the Group's consolidatedfinancialstatements.

InJune2012theIASBissued"ConsolidatedFinancialStatements,JointArrangementsandDisclosureofInterestsinOther Entities: Transition Guidance" Amendments to IFRS 10, IFRS 11 and IFRS 12. The amendments clarify the transition guidanceand providestransition reliefsforthe beforementionedStandards.SuchasIFRS10,IFRS 11andIFRS12,the amendmentsareeffectiveforfiscalyearsbeginningonorafterJanuary01,2013.Inthecontextoftheendorsement,the IASB defers the mandatory effective date to fiscal years beginning on or after January 01, 2014; earlier application is permitted.

In October 2012 the IASB issued "Investment Entities" as amendments to IFRS 10, IFRS 12 and IAS 27 regarding the accounting of investment entities. The amendments define investment entities and provide an exception to the general consolidationrequirementsofsubsidiariesinIFRS10;insteadofconsolidatingthosesubsidiariesaremeasuredatfairvalue throughprofitorloss.Inadditiontheamendmentssetoutdisclosurerequirementsforinvestmententities.Theamendments are effective for fiscal years beginning on or after January 01, 2014, while earlier application is permitted. Currently, ManagementdoesnotexpecttheamendmentstohaveanyrelevancefortheGroup'sconsolidatedfinancialstatements.

In May 2013 the IASB issued IFRIC 21 "Levies", an interpretation of IAS 37 "Provisions, Contingent Liabilities and Contingent Assets". The interpretation determinesthe accountingfor levies imposed by governments, otherthan income taxes according to IAS 12, and clarifies in particular when an entity should recognize a liability to pay a levy. The interpretationiseffectiveforfiscalyearsbeginningonorafterJanuary01,2014,whileearlierapplicationispermitted.The EUhasnotyetendorsedtheinterpretation.Currently,Managementdoesnotexpecttheinterpretation–ifendorsedbythe EUinthecurrentversion–tohaveamaterialimpactontheGroup'sconsolidatedfinancialstatements.

InMay2013theIASBissued"RecoverableAmountforDisclosuresforNon-FinancialAssetsAmendmentstoIAS36"that addresschangesofthedisclosure requirements ofIAS36.Theamendments realizetheIASB'soriginalintentionthatthe scopeofthedisclosuresislimitedtotherecoverableamountofnon-financialassetsforwhichanimpairmentlosshasbeen recognized or reversed during the period if that amount is based on fair value less costs of disposal. In addition the disclosurerequirementshavebeenamendedwhentherecoverableamountisbasedonfairvaluelesscostsofdisposal.The amendmentsareeffectiveretrospectivelyforfiscalyearsbeginningonorafterJanuary01,2014,whileearlierapplicationis permitted in so far as IFRS 13 has already been applied. The EU has not yet endorsed the amendments. Currently, Managementdoesnotexpecttheamendments–ifendorsedbytheEUinthecurrentversion–tohaveamaterialimpacton theGroup'sconsolidatedfinancialstatements.

InJune2013theIASBissued "NovationofDerivativesandContinuation ofHedgeAccounting AmendmentstoIAS39" that amends IAS 39 FinancialInstruments. The amendments allow hedge accountingto continue in a situationwhere a derivative,whichhasbeendesignedasahedginginstrument,isnovatedtoeffectclearingwithacentralcounterpartyasa result of law or regulation, if specific conditions are met. The amendments are effective retrospectively for fiscal years beginning on or after January 01, 2014, while earlier application is permitted. The EU has not yet endorsed the amendments.Currently,Managementdoesnotexpecttheamendments–ifendorsedbytheEUinthecurrentversion–to haveamaterialimpactontheGroup'sconsolidatedfinancialstatements.

InNovember2013theIASBissuedamendmentstoIFRS9"FinancialInstruments"HedgeAccountingandAmendmentsto IFRS9;IFRS7andIAS39.The amendmentstoIFRS9establish anewmodelthat representsasubstantialoverhaul of hedgeaccountingthatwillenableentitiestobetterreflecttheirriskmanagementactivitiesintheirfinancialstatements.In additionextensivedisclosuresarerequired.Moreoverrecognizingfairvaluechangesofliabilitiesduetocreditratingwithin equity will be possibleto be earlier adoptedwithout applyingthe complete regulations of IFRS 9. Furthermorethe IASB decidedtoabandonthemandatorydateofJanuary01,2015;anewdateshouldbedecideduponwhentheentireIFRS9 project is closer to completion. The EU has not yet endorsed the standard including the amendments. Currently, Management is not able to finally assess the impact of the adoption of the standard including the amendments – if endorsedbytheEUinthecurrentversion.

InNovember2013theIASBissuednarrow-scopeamendmentstoIAS19"EmployeeBenefits"titled"DefinedBenefitPlans: Employee Contributions Amendments to IAS 19". The amendments are applicable to recognizing contributions of employees or third parties to defined benefit plans. Hereby it will be allowed to recognize employees' or third parties' contributionsasareductionofcurrentservicecostsintheperiodinwhichthecorrespondingservicinghasbeenrenderedif thecontributionsareindependentofthenumberofyearsofemployeeservice.TheamendmentstoIAS19aretobeapplied for fiscal years beginning on or after July 01, 2014; earlier application is permitted. The EU has not yet endorsed the amendments.Currently,Managementdoesnotexpecttheamendments–ifendorsedbytheEUinthecurrentversion–to haveamaterialimpactontheGroup'sconsolidatedfinancialstatements.

02 Acquisitionsanddisposals

YearendedSeptember30,2013

IntheyearendedSeptember30,2013theGroupacquiredcompaniesthatare,onanindividualbasis,immaterial.Basedon thevaluesasoftheacquisitiondate,theseacquisitionsaffectedintotaltheGroup'sconsolidatedfinancialstatementsas presentedbelow:

AcquisitionsyearendedSept.30,2013

million€	Yearended Sept.30,2013
Goodwill	43
Otherintangibleassets	38
Property,plantandequipment	3
Investmentsaccountedforusingtheequitymethod	.50
Deferredtaxassets	1
Inventories	13
Tradeaccountsreceivable	8
Othercurrentnon-financialassets	3
Cashandcashequivalents	7
Totalassetsacquired	111
Accruedpensionandsimilarobligations	1
Deferredtaxliabilities	7
Non-currentfinancialdebt	1
Othercurrentprovisions	7
Tradeaccountspayable	2
Othercurrentfinancialliabilities	2
Othercurrentnon-financialliabilities	10
Totalliabilitiesassumed	30
Netassetsacquired	81
Non-controllinginterest	0
Purchaseprices	81
thereof:paidincashandcashequivalents	62

AfterthedisposaloftheStainlessGlobalbusinessareahadbeeninitiatedaspartofthestrategicdevelopmentprogramas of September 30, 2011, the transaction was completed with the combination with the Finnish company Outokumpu on December28,2012.Inaddition,aspartoftheportfoliooptimization,theThyssenKruppTailoredBlanksgroupexcludingthe ChineseoperationsintheSteelEuropebusinessareawassoldinfiscalyear2012/2013.TheThyssenKruppTailoredBlanks groupwasclassifiedasadisposalgroupasofSeptember30,2012becausethedisposalhadbeeninitiated;thedisposal, excludingtheChineseoperations,wascompletedattheendofJuly2013.Thesetwodisposalsaswellasfurthersmaller disposalsthatwere, onan individual basis,immaterial,affected intotaltheGroup'sconsolidatedfinancialstatementsas presentedbelowbasedonthevaluesasofthedisposaldate:

DisposalsyearendedSept.30,2013

million€	Yearended Sept.30,2013
Goodwill	9
Otherintangibleassets	30
Property,plantandequipment	1,911
Investmentproperty	12
Investmentsaccountedforusingtheequitymethod	22
Othernon-currentfinancialassets	2
Othernon-currentnon-financialassets	29
Deferredtaxassets	90
Inventories	1,850
Tradeaccountsreceivable	655
Othercurrentfinancialassets	62
Othercurrentnon-financialassets	97
Currentincometaxassets	19
Cashandcashequivalents	168
Totalassetsdisposedof	4,956
Accruedpensionandsimilarobligations	361
Provisionsforothernon-currentemployeebenefits	26
Othernon-currentprovisions	106
Deferredtaxliabilities	93
Non-currentfinancialdebt	39
Othernon-currentfinancialliabilities	76
Othernon-currentnon-financialliabilities	1
Provisionsforcurrentemployeebenefits	4
Othercurrentprovisions	64
Currentincometaxliablilities	6
Currentfinancialdebt	153
Tradeaccountspayable	1,282
Othercurrentfinancialliabilities	2,346
Othercurrentnon-financialliabilities	134
Totalliabilitiesdisposedof	4,691
Netassetsdisposedof	265
Cumulativeothercomprehensiveincome	1
Non-controllinginterest	.570
Gain/.loss0resultingfromthedisposals	265
Sellingprices	474
thereof:receivedincashandcashequivalents	250

YearendedSeptember30,2012

IntheyearendedSeptember30,2012theGroupacquiredcompaniesthatare,onanindividualbasis,immaterial.Basedon the values as ofthe acquisition date,these acquisitions affected intotalthe Group's consolidatedfinancial statements as presentedbelow:

AcquisitionsyearendedSept.30,2012

million€	Yearended Sept.30,2012
Goodwill	115
Otherintangibleassets	36
Property,plantandequipment	3
Inventories	1
Tradeaccountsreceivable	24
Othercurrentfinancialassets	3
Othercurrentnon-financialassets	2
Cashandcashequivalents	15
Totalassetsacquired	199
Accruedpensionandsimilarobligations	1
Deferredtaxliabilities	3
Non-currentfinancialdebt	2
Othercurrentprovisions	1
Currentfinancialdebt	1
Tradeaccountspayable	21
Othercurrentfinancialliabilities	7
Othercurrentnon-financialliabilities	30
Totalliabilitiesassumed	66
Netassetsacquired	133
Non-controllinginterest	0
Gainresultinginthecontextofpurchaseaccounting	.100
Purchaseprices	123
thereof:paidincashandcashequivalents	97

Inaddition,infiscalyear2011/2012aspartoftheportfoliooptimization,theGroupsoldtheThyssenKruppXervonGroupin theMaterialsServicesbusinessareaandtheChineseactivities oftheMetalFormingGroupintheSteelEuropebusiness area in November 2011 as well as parts of the Marine Systems business area in January 2012. These disposals were classifiedasdisposalgroupsasofSeptember30,2011becausethedisposalshadbeeninitiated.Furthermoreinfiscalyear 2011/2012intheComponentsTechnologybusinessareaThyssenKruppAutomotiveSystemsIndustrialdoBrasilLtda.and the US foundry Waupaca were sold and in the Steel Europe business area the Bauelemente Group was sold. These disposalsaswellasthedisposalsofcompaniesthatwere,onanindividualbasis,immaterial,affectedintotaltheGroup's consolidatedfinancialstatementsaspresentedbelowbasedonthevaluesasofthedisposaldate:

DisposalsyearendedSept.30,2012

million€	Yearended Sept.30,2012
Goodwill	19
Otherintangibleassets	10
Property,plantandequipment	419
Othernon-currentfinancialassets	1
Othernon-currentnon-financialassets	1
Deferredtaxassets	8
Inventories	275
Tradeaccountsreceivable	555
Othercurrentfinancialassets	65
Othercurrentnon-financialassets	34
Currentincometaxassets	1
Cashandcashequivalents	148
Totalassetsdisposedof	1,536
Accruedpensionandsimilarobligations	321
Othernon-currentprovisions	6
Deferredtaxliabilities	13
Non-currentfinancialdebt	2
Othernon-currentfinancialliabilities	3
Othercurrentprovisions	63
Currentincometaxliablilities	9
Currentfinancialdebt	76
Tradeaccountspayable	275
Othercurrentfinancialliabilities	175
Othercurrentnon-financialliabilities	257
Totalliabilitiesdisposedof	1,200
Netassetsdisposedof	336
Cumulativeothercomprehensiveincome	4
Non-controllinginterest	7
Gain/.loss0resultingfromthedisposals	371
Sellingprices	704
thereof:receivedincashandcashequivalents	697

03 Discontinuedoperationsanddisposalgroups

AspartoftheportfoliooptimizationprogramandtheconceptforthefurtherstrategicdevelopmenttheGrouphasinitiatedthe sale of several businesses. Withthe exception ofthe Stainless Global business areathesetransactions have not metthe requirementsofIFRS5forapresentationasadiscontinuedoperation.Therefore,revenuesandexpenseswillcontinuetobe presented as incomefromcontinuing operations untilthe date ofthe disposal.Forentitiesforwhichthe disposal has not beencompletedasofSeptember30oftherespectivefiscalyear,theassetsandliabilitiesofthedisposalgroupsandofthe discontinuedoperationshavebeendisclosedseparatelyintheconsolidatedbalancesheetasofSeptember30ofthisfiscal yearas"assetsheldforsale"and"liabilitiesassociatedwithassetsheldforsale".

Although the disposal of the entire Steel Americas business area initiated in September 2012 met the criteria for presentationasa discontinued operationas ofSeptember30,2012,thechangetothe plan ofsaleas ofSeptember30, 2013meantthattheSteelAmericasbusinessnolongermeetsthecriteriaforpresentationasadiscontinuedoperationand insteadisclassifiedasacontinuingoperationagain.Theprior-yearpresentationoftheSteelAmericasbusinessareainthe consolidated statement of income and consolidated statement of cash flows has been adjusted accordingly, while the assetsandliabilitiesoftheSteelAmericasbusinessareacontinuetobepresentedseparatelyintheconsolidatedstatement of financial position in the line items "Assets held for sale" and "Liabilities associated with assets held for sale" as of September30,2012.

TheStainlessGlobalbusinessareametthecriteriaforpresentationasadiscontinuedoperationfromSeptember30,2011 until completion of the combination with the Finnish company Outokumpu on December 28, 2012. Therefore, for the StainlessGlobalbusinessareaallincome andexpensesfortheprioryearandallincomeandexpensesforthe reporting period until December 28, 2012 as well as income and expenses incurred after the disposal but directly related to the disposalofStainlessGlobalarepresentedseparatelyintheconsolidatedstatementofincomeinthelineitem"Discontinued operationsnetoftax".

DisposalgroupsoftheyearendedSeptember30,2013

InSeptember2012thedisposaloftheThyssenKruppTailoredBlanksgrouphasbeeninitiatedintheSteelEuropebusiness area.TailoredBlanksissupplierofbodysystemstotheautoindustrywhichproducestailoredsteelblanks.Aftertheapproval hasbeengiventhe responsible regulatoryauthorities,withtheexemptionoftheChineseactivitiesthesaletotheChinese steelproducerWuhanIronandSteelCorporationWISCOwascompletedasofJuly31,2013.TheChineseactivitiesarestill subjecttoapprovalbythelocalauthorities.ThecompletionisexpectedinDecember2013.Theassetsandliabilitiesofthe ChineseactivitieswhicharestillpartofthedisposalgroupasofSeptember30,2013arepresentedinthefollowingtable:

DisposalgroupTailoredBlanksChina

million€	Sept.30,2013
Property,plantandequipment	8
Inventories	5
Tradeaccountsreceivable	8
Othercurrentnon-financialassets	1
Cashandcashequivalents	4
Assetsheldforsale	26
Tradeaccountspayable	2
Liabilitiesassociatedwithassetsheldforsale	2

InadditioninSeptember2012thedisposaloftheBercogrouphasbeeninitiatedintheComponentsTechnologybusiness area. Berco is a leading global supplier of undercarriages, based mainly on forged components, for the construction machinerysectorandoffersabroadrangeofpartsandservicesforbothOEMsandtheaftermarket.Itsproductsareusedin machineryfromlargeminingequipmenttominiexcavators.Inthecontextoftheinitiateddisposalanimpairmentlossof€4 milliononintangibleassetsandof€131milliononproperty,plantandequipmentwasrecognizedincostofsalesinthe4th quarterof2011/2012resultingfromthewrite-downoftheassetstofairvaluelesscoststosell.Atthesametimeadeferred tax asset of €1 million was recognized. As a result of unforeseen restructuring requirements, which could only be implemented with the cooperation of employee and government representatives, the one-year period required by IFRS 5 extendedbeyondSeptember30,2013withoutdisadvantagetoexistingsaleopportunities.Theassetsandliabilitiesofthe disposalgroupasofSeptember30,2013arepresentedinthefollowingtable:

DisposalgroupBercogroup

million€	Sept.30,2013
Otherintangibleassets	2
Property,plantandequipment	37
Deferredassets	14
Inventories	193
Tradeaccountsreceivable	47
Othercurrentfinancialassets	1
Othercurrentnon-financialassets	23
Currentincometaxassets	1
Cashandcashequivalents	4
Assetsheldforsale	322
Accruedpensionandsimilarobligations	29
Othernon-currentprovisions	1
Othercurrentprovisions	19
Currentfinancialdebt	1
Tradeaccountspayable	82
Othercurrentfinancialliabilities	2
Othercurrentnon-financialliabilities	44
Liabilitiesassociatedwithassetsheldforsale	178

AsofSeptember30,2012theentireSteelAmericasbusinessareawasclassifiedasadiscontinuedoperationanddisposal group, respectively, while as of September 30, 2013 only the ThyssenKrupp Steel USA portion met the conditions for presentation as a disposal group see also the information under Steel Americas business area disposal group as of September 30, 2012. The ThyssenKrupp Steel USA disposal group comprises the ThyssenKrupp Steel USA rolling and coatingplantinCalvert/Alabama.

In connectionwiththe initiated sale, measurement atfair value less coststo sell resulted as of September 30, 2013 in impairmentlossesof€2milliononintangibleassetsand€335milliononproperty,plantandequipment,whicharereported intheamountof€328millionincostofsales,€3millioninsellingexpenses,and€6millioningeneralandadministrative expenses. As a result of circumstances beyondthe company's control,the one-year period required byIFRS 5 extended beyondSeptember30,2013withoutdisadvantagetoexistingsaleopportunities.Theassetsandliabilitiesofthedisposal groupasofSeptember30,2013areshowninthefollowingtable:

DisposalgroupThyssenKruppSteelUSA

million€	Sept.30,2013
Otherintangibleassets	7
Property,plantandequipment	811
Inventories	251
Tradeaccountsreceivable	118
Othercurrentfinancialassets	1
Othercurrentnon-financialassets	3
Cashandcashequivalents	8
Assetsheldforsale	1,199
Non-currentfinancialdebt	2
Currentfinancialdebt	2
Tradeaccountspayable	22
Othercurrentfinancialliabilities	17
Othercurrentnon-financialliabilities	42
Liabilitiesassociatedwithassetsheldforsale	85

AsofNovember29,2013,ThyssenKruppenteredintoanagreementwithaconsortiumofArcelorMittalandNipponSteel& Sumitomo Metal Corporation onthe sale ofthe disposal group. The closing is subjecttothe approval ofthe competent regulatoryauthorities.Inthiscontextitwascontractuallyagreedthattheconsortiumwillpurchase2millionmetrictonsof slabsperyearfromThyssenKruppCSAupto2019.

DisposalgroupsintheyearendedSeptember30,2012

InSeptember2012thedisposaloftheThyssenKruppTailoredBlanksgrouphasbeeninitiatedintheSteelEuropebusiness area.TailoredBlanksissupplierofbodysystemstotheautoindustrywhichproducestailoredsteelblanks.Thesalewas subjecttoapproval bythesupervisory bodiesandthe responsible regulatoryauthorities. The assetsandliabilities ofthe disposalgroupasofSeptember30,2012arepresentedinthefollowingtable:

DisposalgroupTailoredBlanksgroup

million€	Sept.30,2012
Goodwill	8
Otherintangibleassets	2
Property,plantandequipment	97
Investmentsaccountedforusingtheequitymethod	1
Deferredassets	3
Inventories	47
Tradeaccountsreceivable	125
Othercurrentfinancialassets	5
Othercurrentnon-financialassets	6
Currentincometaxassets	4
Cashandcashequivalents	10
Assetsheldforsale	308
Accruedpensionandsimilarobligations	10
Provisionsforothernon-currentemployeebenefits	1
Deferredtaxliabilities	4
Provisionsforcurrentemployeebenefits	1
Othercurrentprovisions	1
Currentincometaxliabilities	4
Currentfinancialdebt	4
Tradeaccountspayable	63
Othercurrentfinancialliabilities	4
Othercurrentnon-financialliabilities	14
Liabilitiesassociatedwithassetsheldforsale	106

WiththeexemptionoftheChineseactivitiesthetransactionhasbeenconsummated.

AlsoinSeptember2012thedisposaloftheBercogrouphasbeeninitiatedintheComponentsTechnologybusinessarea. Bercoisaleadingglobalsupplierofundercarriages,basedmainlyonforgedcomponents,fortheconstructionmachinery sector and offers a broad range of parts and services for both OEMs and the aftermarket. Its products are used in machineryfromlargeminingequipmenttominiexcavators.Inthecontextoftheinitiateddisposalanimpairmentlossof€4 milliononintangibleassetsandof€131milliononproperty,plantandequipmentwasrecognizedincostofsalesresulting fromthewrite-downoftheassetstofairvaluelesscoststosell.Atthesametimeadeferredtaxassetof€1millionwas recognized.TheassetsandliabilitiesofthedisposalgroupasofSeptember30,2012arepresentedinthefollowingtable:

DisposalgroupBercogroup

million€	Sept.30,2012
Otherintangibleassets	1
Property,plantandequipment	29
Deferredassets	16
Inventories	200
Tradeaccountsreceivable	57
Othercurrentfinancialassets	1
Othercurrentnon-financialassets	21
Currentincometaxassets	2
Cashandcashequivalents	3
Assetsheldforsale	330
Accruedpensionandsimilarobligations	31
Othernon-currentprovisions	1
Othercurrentprovisions	7
Currentincometaxliabilities	3
Currentfinancialdebt	3
Tradeaccountspayable	86
Othercurrentfinancialliabilities	5
Othercurrentnon-financialliabilities	34
Liabilitiesassociatedwithassetsheldforsale	170

Inthe1stquarterof2011/2012,thevaluationofthedisposalgroupatfairvaluelesscosttosellledtoanimpairmentof €125millionongoodwillwhichwasrecognizedinotherexpensesandimpairmentlossesof€6milliononotherintangible assetsandof€24milliononproperty,plantandequipmentwhichwererecognizedincostofsales.EndofJanuary2012, thedisposalofthedisposalgrouphasbeenconsummated.

DisposalgroupSteelAmericasintheyearendedSeptember30,2012

OriginallytheSteelAmericasbusinessareawaspresentedasadiscontinuedoperationin2011/2012aftertheSupervisory Board noted with assent in September 2012 the Executive Board's decision to open a bidding process for the Steel Americasbusinessarea.Thetransactionwastobeconsummatedinthe2012/2013fiscalyear.

The €3,645 million impairment which became necessary as of September 30, 2012 due to the intention to sell. The impairmentwas basedontheexpectedfairvaluelesscoststosell.Non-binding offers had been receivedforeach plant separatelyandbothtogether.ThesewerepursuedbytheshortlistedbiddersandThyssenKrupp.Thevaluationalsoincluded internal calculations, made in partwith supportfrom auditors and management consultants,whichtook into account all knowledgeavailabletoThyssenKruppfromtheongoingsaleprocessandoverallrepresentedabestpossibleestimate.

DuetothechangetotheplanofsaleasofSeptember30,2013,onlyapartialdisposaloftheSteelAmericasbusinessarea can now be realized. The Steel Americas business area therefore no longer meets the criteria for presentation as a discontinued operation. The reason for the change of plan was that currently it is not possible to realize a financially acceptablesolutionforthesaleoftheThyssenKruppCSAsteelmillinBrazilinlinewithourvalue-basedapproach.Against thisbackgroundtheBrazilianmillistoremainintheGroupanditscompetitivenessistobesignificantlystrengthened.The measurestofurtheroptimizetechnicalperformanceaswellasourinitiativestoenhanceefficiencywillcontributetothis.In addition,highercapacityutilizationofourBraziliansteelmillduetotheslabsupplycontractandstrongerpenetrationofthe slab markets in South and North America will have a positive impact. We expect further positive effects from reduced exchange rate risks dueto increasingslabsuppliestothe Brazilianmarket, andfromthe use of inputtaxcredits. Atthe sametime a weaker Brazilian real should aidthe competitiveness and business performance of ThyssenKrupp CSA. On November29,2013ThyssenKruppsignedacontractwithaconsortiumofArcelorMittalandNipponSteel&SumitomoMetal Corporation onthe sale ofthe ThyssenKrupp Steel USA rolling and coating plant in Calvert/Alabama. The closing ofthe agreementsissubjecttoapprovalbythecompetentregulatoryauthorities.

InthereportingyeartheconsolidatedstatementofincomefortheyearendedSeptember30,2012hasbeenadjustedso thattheincomeandexpensesoftheSteelAmericasbusinessareaare re-includedinincomefromcontinuingoperations. Analogouslyintheconsolidatedstatementofcashflows,thecashinflowsandoutflowsoftheSteelAmericasbusinessarea have been reclassifiedto continuing operations. However,the assets and liabilities ofthe Steel Americas business area continueto be presentedseparately intheconsolidatedstatement offinancial position inthe line items "Assets heldfor sale" and "Liabilities associated with assets heldfor sale" as of September 30, 2012 in accordance with IFRS 5. As of September30,2013duetothechangetotheplanofsaleonlytheThyssenKruppSteelUSAportionmeetsthecriteriafor separatepresentationasadisposalgroupintheconsolidatedstatementoffinancialposition,whiletheassetsandliabilities oftheThyssenKruppCSAportionhavebeenre-includedintheindividuallineitems.

Inaddition,withthisreporttheallocationofequityasofSeptember30,2012hasbeenadjustedsothatequityisallocated proportionatelyto "Equity attributableto ThyssenKruppAG'sstockholders" and "Non-controlling interest" intheBrazilian plant CSA. In the prior-year report, in the context of the IFRS 5 presentation, equity was allocated on the basis of the expected sale structure, in which ThyssenKrupp AG's stockholders would have had to assume certain Group-internal financings.Thismeantthattheequityamountsallocatedto"EquityattributabletoThyssenKruppAG'sstockholders"and "Non-controlling interest" differed from the shareholding ratios. This led to an increase in "Equity attributable to ThyssenKrupp AG's stockholders" and a decrease in "Non-controlling interest" of €427 million. With this report, a corresponding adjustment has been made for the year ended September 30, 2012 for the allocation of net loss to "ThyssenKruppAG'sstockholders"and"Non-controllinginterest"intheconsolidatedstatementofincome;thisalsoledto animprovementinearningspershare.

ThechangetotheclassificationoftheSteelAmericasbusinessareainthisreportledtoa€4,223millionimprovementin lossfromdiscontinuedoperations netoftaxintheyearendedSeptember30,2012togetherwithadecreaseinincome fromcontinuingoperationsbeforeandaftertaxinthesameamountandhadnoimpactonthenetlossfortheyear.

IntheyearendedSeptember30,2013,duetothechangetotheplanofsale,theThyssenKruppCSAportionoftheSteel Americasbusinessareaisnolongerpartofthedisposalgroup.Thenecessaryreclassificationhadthefollowingimpactson income/loss:

Pre-taxincome/%loss(impactsofthereclassificationofThyssenKruppCSA

million€	Yearended Sept.30,2013
EliminationoftotalimpairmentinaccordancewithIFRS5asofMarch30,2013	683
ImpairmentinaccordancewithIFRS5ofTKSUSAin2012/2013	.3370
CatchupofamortizationanddepreciationofTKCSAin2012/2013	.1360
ImpairmentinaccordancewithIFRS5/IAS36ofTKCSAasofSept.30,2013	.2490

ForanexplanationoftheimpairmentlossesinaccordancewithIFRS5/IAS36inconnectionwiththeThyssenKruppCSA reclassification,seeNote05.

TheassetsandliabilitiesofthedisposalgroupSteelAmericasbusinessareaasofSeptember30,2012arepresentedinthe followingtable:

DisposalgroupSteelAmericas

million€	Sept.30,2012
Otherintangibleassets	22
Property,plantandequipment	2,957
Othernon-financialassets	192
Inventories	849
Tradeaccountsreceivable	180
Othercurrentfinancialassets	67
Othercurrentnon-financialassets	121
Currentincometaxassets	1
Cashandcashequivalents	57
Assetsheldforsale	4,446
Non-currentfinancialdebt	669
Othercurrentprovisions	16
Currentincometaxliabilities	3
Currentfinancialdebt	93
Tradeaccountspayable	307
Othercurrentfinancialliabilities	124
Othercurrentnon-financialliabilities	103
Liabilitiesassociatedwithassetsheldforsale	1,315

Discontinued operation Stainless Global business area in the years ended September 30, 2012 and 2013, respectively

As of September 2011 as part of its program for the further strategic development, the corporate, organizational and contractualconditionsforcreatingaseparateStainlessGlobalandconsequentlytheconditionsforthe presentation asa discontinuedoperationwereestablished.

Inthecontextwiththe initiated disposal, as ofSeptember 30, 2011themeasurement of discontinued operations atfair value less cost to sell based on internal calculations and market observations resulted in an impairment loss of €510 million. Thereof, €45million appliedto goodwill andthe remaining impairment loss was allocatedto property, plant and equipment.Theexpenseisrecognizedinincome/lossofdiscontinuedoperationsoftheyearendedSeptember30,2011.

OnJanuary31,2012,theagreementtocombinetheFinnishstainlesssteelproducerOutokumpuandStainlessGlobalwas signed.TheEUCommissionapprovedthecombinationinNovember2012.BasedonthecontractwithOutokumpuaboutthe intentedsale,in2011/2012themeasurementresultedinanadditionalimpairmentlossof€400millionthatwasallocated toproperty,plantandequipment.Theexpenseisrecognizedinincome/lossofdiscontinuedoperationsoftheyearended September30,2012.

Furthermore, duetothe shut down ofthe Krefeld melt shop bythe end of 2013, an impairment loss of €42 million on property,plantandequipmentwasrecognizedinincome/lossofdiscontinuedoperationsoftheyearendedSeptember30, 2012. In May 2012, Stainless Global agreed with the relevant works council on a social plan in connection with the consolidationmeasures regardingtherelocationoftheDüsseldorf-Benrathfacilityandtheconnectedpersonnelreduction. The social plan includes early retirement models and compensations for employees leaving Stainless Global. Further, it includescompensationsforemployeesbeingrelocated.Thesocialplanwillapplyaccordinglytotheplannedclosureofthe Krefeldmeltshopintheeventthetransactioniscompleted.AsofSeptember30,2012theoverallcostsinconnectionwith thatsocialplanhavebeen recognizedasa restructuringprovisionof€58millionintheaggregateforDüsseldorf-Benrath andKrefeld.

OnDecember28,2012thecombinationoftheStainlessGlobalbusinessareawiththeFinnishcompanyOutokumpuwas completed. With the closing of this transaction ThyssenKrupp received €1 billion in cash from Outokumpu for the contribution of Inoxum. In addition Outokumpu took on the external net financial debt and pension obligations. ThyssenKrupp holds a share of 29.9% in Outokumpu and afinancial receivable outstanding against Outokumpu with a current value of €969 million and an original maximum term of 9 years. Under the purchase agreement, this financial receivable can be adjusted by a maximum of €200 million in the event of negative financial consequences arising for Outokumpu from conditions imposed under merger control law. See also subsequent events in Note 36. Regarding OutokumpuseealsothereportingaboutrelatedpartiesinNote23.

TheresultsoftheStainlessGlobalbusinessareathatclassifiedasadiscontinuedoperationuntilDecember28,2012are presentedinthefollowingtable.InadditioninthecolumnoftheyearendedSeptember30,2013thetableincludesincome andexpenseincurredafterthedisposalbutdirectlyrelatedtothedisposalofStainlessGlobal.Theseitemsresultinanet expense of €6million andmainly comprisetransaction-related interest income,transaction costs and expensesfor staff transfers.

TheresultsoftheStainlessGlobalbusinessareathatclassifiesasadiscontinuedoperationareasfollows:

5,739 Netsales	1,268
32 Otherincome	18
.6,0240 Expenses	.1,3750
.2530 Ordinaryincome/.loss0fromdiscontinuedoperations.beforetaxes0	.890
.540 Incometax.expense0/income	.40
.3070 Ordinaryincome/.loss0fromdiscontinuedoperations.netoftax0	.930
.4000 Gain/.loss0recognizedonmeasurementadjustmentsofdiscontinuedoperations.beforetaxes0	146
— Incometax.expense0/income	—
.4000 Gain/.loss0recognizedonmeasurementadjustmentsofdiscontinuedoperations.netoftax0	146
.7070 Discontinuedoperations.netoftax0	53
thereof:
.7000 ThyssenKruppAG'sstockholders	54
.70 Non-controllinginterest	.10

DiscontinuedoperationStainlessGlobal

Ontheclassificationasadiscontinuedoperation,non-currentassetsarenolongeramortizedanddepreciated,thereforein theyearendedSeptember30,2012,amortizationanddepreciationof€192millionweresuspendedandintheyearended September30,2013untilthe dateof disposal onDecember28,2012amortizationand depreciationof€52millionwere suspended.

TheassetsandliabilitiesofthediscontinuedoperationStainlessGlobalasofSeptember30,2012andDecember28, 2012,respectively,arepresentedinthefollowingtable:

DiscontinuedoperationStainlessGlobal

million€	Sept.30,2012	Dec.28,2012
Otherintangibleassets	26	27
Property,plantandequipment	1,761	1,812
Investmentproperty	12	12
Investmentsaccountedforusingtheequitymethod	18	19
Otherfinancialassets	2	2
Othernon-financialassets	7	25
Deferredassets	90	87
Inventories	1,675	1,798
Tradeaccountsreceivable*	582	549
Othercurrentfinancialassets*	40	57
Othercurrentnon-financialassets	98	88
Currentincometaxassets	16	16
Cashandcashequivalents	56	84
Assetsheldforsale	4,383	4,576
Accruedpensionandsimilarobligations	337	351
Provisionsforothernon-currentemployeebenefits*	25	25
Othernon-currentprovisions*	110	106
Deferredtaxliabilities	90	87
Non-currentfinancialdebt	47	39
Othernon-currentnon-financialliabilities	1	1
Provisionsforcurrentemployeebenefits*	5	3
Othercurrentprovisions*	61	62
Currentincometaxliabilities	6	3
Currentfinancialdebt	152	136
Tradeaccountspayable*	1,264	1,220
Othercurrentfinancialliabilities*	104	2,345
Othercurrentnon-financialliabilities	121	122
Liabilitiesassociatedwithassetsheldforsale	2,323	4,500

The29.9%shareholdinginOutokumpuobtainedafterthedisposaloftheStainlessGlobalbusinessareaisaccountedforin theconsolidatedfinancialstatementsaccordingtotheequitymethod.AsofDecember31,2012thisshareholdingisinitially reportedwith a value of €491 million, based onthe share price atthetime ofthetransaction €0.79multiplied bythe number of Outokumpu shares received. As of September 30, 2013, the adjustment of the carrying amount of the investmentresultedinareductionof€186millionto€305million.

Thefair value oftheshares acquired atthetime ofthetransaction iscurrently being determined in connectionwiththe respectivepurchasepriceallocation.Anydifferencewillimpactthecarryingamountoftheinvestment.

Notestotheconsolidatedstatementoffinancialposition

04 Intangibleassets

ChangesintheGroup'sintangibleassetswereasfollows:

Changesinintangibleassets

million€	Franchises, trademarks andsimilar rightsand valuesaswell aslicenses thereto	Development costs, internally developed softwareand website	Goodwill	Total
Grossamounts
BalanceasofSept.30,2011	1,323	557	3,956	5,836
Currencydifferences	19	2	76	97
Acquisitions/divestituresofbusinesses	8	*1+	68	75
Additions	74	20	23	117
Transfers	14	12	0	26
Disposals	*5+	*12+	0	*17+
Reclassificationduetothepresentationasassetsheldforsale	*70+	0	46	*24+
BalanceasofSept.30,2012	1,363	578	4,169	6,110
Currencydifferences	*27+	*4+	*111+	*142+
Acquisitions/divestituresofbusinesses	31	0	4	35
Additions	47	19	12	78
Transfers	14	1	0	15
Disposals	*14+	*13+	0	*27+
Reclassificationduetothepresentationasassetsheldforsale	20	0	0	20
BalanceasofSept.30,2013	1,434	581	4,074	6,089
Accumulatedamortizationandimpairmentlosses
BalanceasofSept.30,2011	787	305	578	1,670
Currencydifferences	10	1	14	25
Acquisitions/divestituresofbusinesses	*10+	*1+	*17+	*28+
Amortizationexpense	88	46	0	134
Impairmentlosses	10	11	45	66
Reversalsofimpairmentlosses	0	0	-	0
Transfers	4	0	0	4
Disposals	*5+	*5+	0	*10+
Reclassificationduetothepresentationasassetsheldforsale	*41+	0	*1+	*42+
BalanceasofSept.30,2012	843	357	619	1,819
Currencydifferences	*20+	*2+	*18+	*40+
Acquisitions/divestituresofbusinesses	3	0	*20+	*17+
Amortizationexpense	80	44	0	124
Impairmentlosses	7	3	0	10
Reversalsofimpairmentlosses	0	*1+	-	*1+
Transfers	2	*1+	0	1
Disposals	*10+	*12+	0	*22+
Reclassificationduetothepresentationasassetsheldforsale	9	0	0	9
BalanceasofSept.30,2013	914	388	581	1,883
Netamounts
asofSept.30,2011	536	252	3,378	4,166
asofSept.30,2012	520	221	3,550	4,291
asofSept.30,2013	520	193	3,493	4,206

Impairmentofgoodwill

Goodwillimpairmentlossesareincludedinotherexpenses.

In2011/2012,beyondtheannualgoodwillimpaimenttestimpairmentlossesof€45millionwererecognizedintheElevator Technologybusinessareaasaresultofanabandonment.

Impairmentofotherintangibleassets

Impairmentlossesofintangibleassetsotherthangoodwillareincludedincostofsales.

Goodwill

Goodwill)excludinggoodwillofequitymethodinvestments+hasbeenallocatedtocashgeneratingunitswithinallbusiness areas.Therecoverableamountofeachcashgeneratingunitisdeterminedbasedonavalueinusecalculationusingaftertax cash flow projections based on bottom-up prepared financial budgets approved by ThyssenKruppAG'smanagement covering a four-year period. The budgeted last year is generally used to determine the cash flows beyond the budgeted period and modified to calculate the perpetuity having regard to additional assumptions. A business specific, sustained growthrateistakenintoaccounttoextrapolatethebudgetedlastyear.Theweightedaveragecostofcapitaldiscountrateis basedonarisk-freeinterestrateof2.5%andamarketriskpremiumof6.5%.MoreoverforeachCGUanindividualbeta derived from the relevant peer group, a debt capital spread and an individual capital structure is used. In addition CGU specifictaxratesandcountryriskpremiumsareused.Thefollowingafter-taxdiscountraterangeshavebeenappliedtothe cashflowprojectionsbybusinessarea:

Aftertaxdiscountrates

		Ranges
%	Yearended Sept.30,2012	Yearended Sept.30,2013
ComponentsTechnology	8.1-9.1	8.7-11.5
ElevatorTechnology	7.3-10.2	7.6-11.3
IndustrialSolutions	6.0-9.0	8.5-10.6
MaterialsServices	6.7-8.3	6.3-10.0
SteelEurope	7.4	8.6
Corporate	6.0	9.4

ThevaluesinusefortheCGUsaredeterminedbasedonbothhistoricaldataandexpectedforecastmarketperformance. Thevaluesassignedtothekeyassumptionsaregenerallyconsistentwithexternalinformationsources.

24CGUswereidentifiedintheThyssenKruppGroup,ofwhich18reportgoodwill.Totalgoodwill,e.g.includinggoodwillof disposal groups, amounts to €3,493 million as of September 30, 2013. 67% of this goodwill relates to the CGUs Steel Europe,Americas,ProcessTechnologiesandMarineSystems,asshowninthefollowingtable:

Significantgoodwill

CGU 0BusinessArea2	Carrying amountof goodwill allocatedto CGU 0million€2	Proportion oftotal goodwill 0in%2	Discountrate 0in%2	Descriptionofkeyassumptions ofbudgeting	Procedureusedtodeterminekeyassumptions
SteelEurope *SteelEurope+	299	9%	8.6%	-Sellingprices -Procurementprices -Productionandsalesvolumes -Businesscycles	Internalestimatesofsalesandpurchasingdepartmentsconcerned andconsiderationofeconomicassumptionssetbyThyssenKrupp AGandexternalmarketstudies
Americas *ElevatorTechnology+	846	24%	7.9%	-Procurementprices -Exchangeratesandinterestrates	ConsiderationofeconomicassumptionssetbyThyssenKruppAG andexternalmarketstudies
ProcessTechnologies *IndustrialSolutions+	256	7%	10.5%	-Marketgrowthrates -Businesscycles	ConsiderationofeconomicassumptionssetbyThyssenKruppAG andexternalmarketstudiesaswellasdeductionoffuturedemand andpropensitytoinvestfromthecurrentdevelopmentofend productprices
MarineSystems *IndustrialSolutions+	945	27%	8.5%	-Marketgrowthrates	Considerationoflong-termbudgetplansofpotentialcustomersand ifappropriateconcretenegotiationswithcustomers,tightened competitivesituationandatthesametimedecreasedbudgetsof thecustomercountries

FornoneoftheCGUsagoodwillimpairmentresultedfromtheannualimpairmenttestbecausetherecoverableamountof all CGUs was higher than the respective carrying amount. The recoverable amount of the CGUs Forging Group, Presta CamshaftsandMetalsServicesexceededthecarryingamountoftherespectiveCGUbylessthan10%.

Criticalgoodwill

CGU 0BusinessArea2	Carrying amountof goodwill allocated toCGU 0million€2	Carrying amountof CGU 0million€2	Recoverable amountofCGU 0million€2	Discountrate 0in%2	Descriptionofkeyassumptions ofbudgeting	Procedureusedtodeterminekeyassumptions
ForgingGroup *Components Technology+	69	527	537	8.7%	-Sellingprices -Procurementprices -Marketgrowthrates -Businesscycles	Considerationofexpectedeconomicdevelopmentwiththe helpoftheexpectedbusinessperspectiveofThyssenKrupp AG
PrestaCamshafts *Components Technology+	8	437	465	10.2%	-Sellingprices -Procurementprices -Marketgrowthrates -Businesscycles	Considerationofexpectedeconomicdevelopmentwiththe helpoftheexpectedbusinessperspectiveofThyssenKrupp AG
MetalsServices *MaterialsServices+	140	1,764	1,895	10.0%	-Sellingprices -Procurementprices -Marketgrowthrates -Businesscycles	Considerationofexpectedeconomicdevelopmentwiththe helpoftheexpectedbusinessperspectiveofThyssenKrupp AG

Anone-percentage-pointincreaseinthediscountratewouldresultinagoodwillimpairmentintheForginggroupCGUof €66million,inthePrestaCamshaftsCGUof€8millionandintheMetalsServicesCGUof€101million.

137 Consolidatedfinancialstatements Notestotheconsolidatedfinancialstatements

Thechangeinthecarryingamountofgoodwill)excludinggoodwillofinvestmentsaccountedforusingtheequitymethod+is asfollows:

Netamountsofgoodwill

million€	Components Technology	Elevator Technology	Industrial Solutions	Materials Services	Steel Europe	Steel Americas	Corporate	Stainless Global	Total*
Balanceasof
Sept.30,2011	242	1,312	1,172	324	313	0	15	0	3,378
Currencydifferences	1	52	5	5	0	0	0	0	63
Acquisitions/*divestitures+	*1+	34	51	*2+	0	0	4	0	86
Additions	0	23	0	0	0	0	0	0	23
Reclassificationduetothepresentationas assetsheldforsale	0	0	53	0	*8+	0	0	0	45
Impairment	0	*45+	0	0	0	0	0	0	*45+
Balanceasof
Sept.30,2012	242	1,376	1,281	327	305	0	19	0	3,550
Currencydifferences	*7+	*56+	*15+	*14+	*2+	0	0	*1+	*95+
Acquisitions/*divestitures+	0	22	8	*1+	*4+	0	0	1	26
Additions	0	9	0	3	0	0	0	0	12
Reclassificationduetothepresentationas assetsheldforsale	0	0	0	0	0	0	0	0	0
Impairment	0	0	0	0	0	0	0	0	0
Balanceasof Sept.30,2013	235	1,351	1,274	315	299	0	19	0	3,493

*excludinggoodwillofinvestmentsaccountedforusingtheequitymethod

05 Property,plantandequipment

ChangesintheGroup'sproperty,plantandequipmentwereasfollows:

Changesinproperty,plantandequipment

Grossamounts 6,097 20,565 1,954 160 10 956 29,742 BalanceasofSept.30,2011 87 349 15 2 0 29 482 Currencydifferences 206+ 492+ 55+ 5+ 0 6+ 764+ Acquisitions/divestituresofbusinesses 78 551 188 17 0 629 1,463 Additions 80 791 19 0 10+ 774+ 106 Transfers 41+ 254+ 62+ 15+ 0 7+ 379+ Disposals Reclassificationduetothepresentation 1,477+ 8,105+ 228+ 11+ 0 201+ 10,022+ asassetsheldforsale 4,618 13,405 1,831 148 0 626 20,628 BalanceasofSept.30,2012 75+ 382+ 29+ 2+ 0 13+ 501+ Currencydifferences 7 20+ 4+ 0 0 1 16+ Acquisitions/divestituresofbusinesses 75 441 105 11 0 363 995 Additions 50 345 14 12+ 0 280+ 117 Transfers 70+ 258+ 82+ 16+ 0 2+ 428+ Disposals Reclassificationduetothepresentation 635 5,694 18 5 0 6 6,358 asassetsheldforsale 5,240 19,225 1,853 134 0 701 27,153 BalanceasofSept.30,2013 Accumulateddepreciation andimpairmentlosses 2,769 12,712 1,412 94 1 105 17,093 BalanceasofSept.30,2011 24 113 9 1 0 4 151 Currencydifferences 94+ 387+ 35+ 3+ 0 0 519+ Acquisitions/divestituresofbusinesses 156 985 160 12 0 0 1,313 Depreciationexpense 537 2,984 62 3 0 96 3,682 Impairmentlosses 1+ 1+ 0 0 0 0 2+ Reversalsofimpairmentlosses 4 81 3+ 0 1+ 74+ 7 Transfers 32+ 241+ 56+ 14+ 0 0 343+ Disposals Reclassificationduetothepresentation 909+ 5,610+ 155+ 8+ 0 125+ 6,807+ asassetsheldforsale 2,454 10,636 1,394 85 0 6 14,575 BalanceasofSept.30,2012 33+ 270+ 19+ 1+ 0 0 323+ Currencydifferences 5 20+ 4+ 0 0 0 19+ Acquisitions/divestituresofbusinesses 118 717 134 10 0 0 979 Depreciationexpense 38 271 0 0 0 1 310 Impairmentlosses 0 3+ 0 0 0 0 3+ Reversalsofimpairmentlosses 2+ 3 0 6+ 0 1+ 6+ Transfers 47+ 239+ 79+ 11+ 0 0 376+ Disposals Reclassificationduetothepresentation 444 4,048 15 4 0 21 4,532 asassetsheldforsale 2,977 15,143 1,441 81 0 27 19,669 BalanceasofSept.30,2013 Netamounts 3,328 7,853 542 66 9 851 12,649 asofSept.30,2011 2,164 2,769 437 63 0 620 6,053 asofSept.30,2012 2,263 4,082 412 53 0 674 7,484 asofSept.30,2013	million€	Land,leasehold rightsand buildings including buildingson third-partyland	Technical machineryand equipment	Other equipment, factory andoffice equipment	Assets under finance lease	Assets under operating lease	Constructionin progress	Total

Impairmentlossesofproperty,plantandequipmentareforthemostpartincludedincostofsalesandtoaminorextentin sellingandadministrativeexpenses.

AsofthebalancesheetdateSeptember30,2012,theSteelAmericasbusinessareametthecriteriaforapresentationasa discontinued operation and according to this a remeasurement of the assets and liabilities was necessary. The remeasurementofproperty,plantandequipmentresultedinanimpairmentlossof€3,645million.€532millionofthetotal impairment relates to land and buildings, €2,959 million to technical machinery and equipment, €59 million to other equipment,€3milliontoassetsunderfinanceleaseand€92milliontoconstructioninprogress.

Theimpairmentwasbasedontheexpectedfairvaluelesscoststosell.Non-bindingoffershadbeenreceivedforeachplant separatelyandbothtogether.ThesewerepursuedbytheshortlistedbiddersandThyssenKrupp.Thevaluationalsoincluded internal calculations, made in part with support from auditors and management consultants, which took into account all knowledgeavailabletoThyssenKruppfromtheongoingsaleprocessandoverallrepresentedabestpossibleestimate.

As of the reporting date September 30, 2013 the reclassification of the Steel Americas business area as a continuing operation and associated re-presentation of the business area's assets and liabilities relating to the ThyssenKrupp CSA portion in the statement of financial position in accordance with IFRS 5 made it necessary to measurethe assets at the lowerrecoverableamountsinaccordancewithIAS36)seeNote03+.Thisresultedinimpairmentlossesof€249million.€26 millionofthetotalimpairmentrelatestolandandbuildingsand€223milliontotechnicalmachineryandequipment.The recoverableamountsusedtocalculatetheimpairmentlossescorrespondineachcasetothevaluesinuse.Adiscountrate of11.1%wasusedtocalculatethevaluesinuse.

In2012/2013impairmentlossesof€37millionwererecordedintheComponentsTechnologybusinessareaintheRothe ErdeoperatingunitduetostructuralchangesintheUSenergymarket.€11millionofthetotalimpairmentrelatestoland and buildings and € 26 million to technical machinery and equipment. The recoverable amounts used to calculate the impairmentlossescorrespondineachcasetothevaluesinuse.Adiscountrateof10.0%wasusedtocalculatethevalues inuse.

Property,plantandequipmentincludeleasedbuildings,technicalmachineryandequipmentandotherequipmentthathave beencapitalized,wherethetermsoftheleaserequiretheGroup,aslessee,toassumesubstantiallyallofthebenefitsand risksofuseoftheleasedasset)financelease+.

		Grossamounts		Accumulateddepreciationand impairmentlosses	Netamounts
million€	Sept.30,2012	Sept.30,2013	Sept.30,2012	Sept.30,2013	Sept.30,2012	Sept.30,2013
Land,leaseholdrightsandbuildingsincludingbuildingson third-partyland	73	59	34	30	39	29
Technicalmachineryandequipment	52	52	34	35	18	17
Otherequipment,factoryandofficeequipment	23	23	17	16	6	7
Total	148	134	85	81	63	53

Assetsunderfinancelease

Property,plantandequipmenthavebeenpledgedassecurityforfinancialpayablesof€47million)2012:€6million+.

06 Investmentproperty

ChangesintheGroup'sinvestmentpropertywereasfollows:

Changesofinvestmentproperty

million€	2012	2013
Grossamounts
BalanceasofSept.30,2011andSept.30,2012,respectively	457	421
Currencydifferences	0	0
Acquisitions/divestituresofbusinesses	0	0
Additions	0	1
Transfers	*2+	27
Disposals	*34+	*31+
Reclassificationduetothepresentationasassetsheldforsale	0	0
BalanceasofSept.30,2012and2013,respectively	421	418
Accumulateddepreciationandimpairmentlosses
BalanceasofSept.30,2011andSept.30,2012,respectively	156	138
Currencydifferences	0	0
Acquisitions/divestituresofbusinesses	0	0
Depreciationexpense	1	1
Impairmentlosses	5	3
Reversalsofimpairmentlosses	*1+	0
Transfers	*2+	7
Disposals	*21+	*18+
Reclassificationduetothepresentationasassetsheldforsale	0	0
BalanceasofSept.30,2012and2013,respectively	138	131
Netamounts
asofSept.30,2011	301
BalanceasofSep.30,2012and2013,respectively	283	287

ThefairvalueoftheGroup'sinvestmentpropertyisdeterminedusingvariousinternationallyacceptedvaluationmethods such as the gross rental method, discounted cash flow method, asset value method and comparison to current market pricesofsimilarrealestate.InvestmentpropertylocatedinGermanyisprimarilydeterminedbasedoninternallyprepared valuations using the gross rental method which is regulated in Germany by the "Verordnung über Grundsätze für die Ermittlung der Verkehrswerte von Grundstücken – WertV". Investment property located outside Germany is generally determinedbyexternalappraisers.

AsofSeptember30,2013,thetotalfairvalueoftheGroup'sinvestmentpropertyis€348million)2012:€353million+of which€3million)2012:€18million+arebasedonvaluationsofexternalappraisers.

Additionswhicharedisclosedinthegrossamountsincludesubsequentexpenditureof€0million)2012:€0.2million+.

The lease of investment property resulted in rental income of €14 million )2011/2012: €18 million+ and direct operating expenseof€7million)2011/2012:€9million+.Directoperatingexpenseof€7million)2011/2012:€9million+resultedfrom investmentpropertythatdoesnotgeneraterentalincome.

07 Investmentsaccountedforusingtheequitymethod

Investmentsinassociates

As of September 30, 2013, the carrying amount of investments in associates accounted for using the equity method is €347million)2012:€55million+.Theincomeofinvestmentsinassociatesaccountedforusingtheequitymethodis€)175+ million)2011/2012:€)23+million+.AsofSeptember30,2013,thefairvalueofaninvestmentinanassociateaccountedfor using the equity method for which there is a published price quotation was €303 million; the investment concerned is Outokumpu.

Summarizedfinancialinformationofassociatesaccountedforusingtheequitymethodispresentedinthetablebelow.The informationgivenrepresents100%andnottheGroup'sinterestintheassociates:

Financialinformationofassociates

million€	Sept.30,2012	Sept.30,2013
Totalassets	871	9,803
Totalliabilities	758	7,444
	Yearended	Yearended

million€	Sept.30,2012	Sept.30,2013
Netsales	840	6,925
Netloss	*52+	*649+

In 2012/2013, the unrecognized share of losses of an associate accounted for using the equity method was €5 million )2011/2012:€6million+.Therewerecumulativeunrecognizedlossesof€11million)2011/2012:€6million+.

Jointventures

The following table shows the summarized financial information of the Group's joint ventures. The information given representstheGroup'sinterestinthejointventures:

Financialinformationofjointventures

million€	Sept.30,2012	Sept.30,2013
Currentassets	936	1,112
Non-currentassets	444	701
Currentliabilities	525	499
Non-currentliabilities	355	697

million€	Yearended Sept.30,2012	Yearended Sept.30,2013
Netsales	2,301	2,726
Netincome	61	80

The associates and joint ventures are included in the list of the Group's subsidiaries and equity interests that is published in the German Federal Gazette and is available on the ThyssenKrupp website at www.thyssenkrupp.com/en/investor/geschaeftsberichte.html.

08 Operatingleaseaslessor

TheGroupisthelessorofvariouscommercialrealestatesunderoperatingleaseagreements.

AsofSeptember30,thefutureminimumleasepaymentstobereceivedonnon-cancellableoperatingleasesareasfollows:

Futureminimumleasepayments

million€	Sept.30,2012	Sept.30,2013
Notlaterthanoneyear	17	16
Betweenoneandfiveyears	32	31
Laterthanfiveyears	19	28
Total	68	75

Theamountsreflectedasfutureminimumleasepaymentsdonotcontainanycontingentrentals.Nocontingentrentalshave beenrecognizedintheconsolidatedstatementsofincomein2012/2013andin2011/2012,respectively.

09 Inventories

Inventories
-------------

million€	Sept.30,2012	Sept.30,2013
Rawmaterials	1,399	1,328
Supplies	316	423
Workinprocess	1,552	1,642
Finishedproducts,merchandise	3,100	2,958
Total	6,367	6,351

Inventories of €4 million )2012: €4 million+ have a remaining term of more than 1 year. Inventories of €33,809 million )2012: €40,072 million+ are recognized as an expense during the period. Included in cost of sales are write-downs of inventoriesof€94million)2012:€49million+.

10 Tradeaccountsreceivable

Tradeaccountsreceivable

million€	Sept.30,2012	Sept.30,2013
Receivablesfromsalesofgoodsandservices	4,063	4,146
Amountsduefromcustomersforconstructionwork	1,063	810
Total	5,126	4,956

Receivablesfromthesalesofgoodsandservicesintheamountof€221million)2012:€353million+havearemainingterm of more than 1 year. As of September 30, 2013 cumulative impairment losses of €302 million )2012: €316 million+ are recognizedfordoubtfulaccounts.

Asofthereportingdatetradeaccountsreceivablewereasfollows:

Analysisofstructure

	Carrying amount	thereof:		thereof:notimpairedbutpastdueasofbalancesheetdate					thereof:
million€	Trade accounts receivable	neither impairednor pastdueasof balancesheet date	pastdue upto30days	pastdue 31to60days	pastdue 61to90days	pastdue 91to180 days	pastdue 181to360 days	pastdue morethan 360days	impaired asofbalance sheetdate
Sept.30,2012	5,126	4,172	316	96	62	83	64	38	295
Sept.30,2013	4,956	4,094	296	113	86	111	84	36	136

Amountsduefromcustomersforconstructionworkarecalculatedasfollows:

Receivablesforconstructionwork

million€	Sept.30,2012	Sept.30,2013
Contractcostsincurredandrecognizedcontractprofits*lessrecognizedlosses+	4,107	3,552
Lessadvancepaymentsreceived	*3,044+	*2,742+
Total	1,063	810

Advanced payments received are collateralized by assets of €595 million )2012: €544 million+. Sales from construction contractsof€8,145millionwererecognizedintheperiod)2011/2012:€7,337million+.

TheGroupprimarilysellscreditinsuredtradeaccountsreceivableunderexistingprogramsonarevolvingbasisaswellas underone-timetransactions.

The amount of receivables sold and derecognized from the balance sheet as of September 30, 2013, was €42 million )2012:€80million+,resultinginnetproceedsintheamountof€42million)2011/2012:€79million+.Insomecases,when theGroupsellsreceivablesitretainsrightsandimmaterialobligations;theseretainedinterestsmainlyconsistofservicing aswellasprovidinglimitedcashreserveaccounts.Therecognizedassetsandprovidedguaranteeswhichserveasacash reserveaccountamountedto€1million)2012:€2million+asofSeptember30,2013.

11 Otherfinancialassets

		Sept.30,2012	Sept.30,2013
million€	current	non-current	current	non-current
Loansandreceivables	223	28	441	995
Available-for-salefinancialassets	6	57	4	24
Derivativesthatdonotqualifyforhedgeaccounting*Financialassetsheldfortrading+	50	—	48	—
Derivativesthatqualifyforhedgeaccounting	10	—	7	—
Total	289	85	500	1,019

Otherfinancialassetsintheamountof€1,314million)2012:€90million+havearemainingtermofmorethan1year.The increaseisassociatedwiththefinancialreceivableoutstandingagainstOutokumpu.AsofSeptember30,2013cumulative impairments amount to €21 million )2012: €32 million+ regarding current other financial assets and €349 million )2012: €58 million+ regarding non-current other financial assets. The impairment on non-current other financial assets in the amount of €349 million refers with €279 million to the impairment of the financial receivable outstanding against Outokumputhatequalsthepresentvalueofexpectedfuturecashflows.

Asofthereportingdateotherfinancialassetswereasfollows:

Analysisofstructure

	Carrying amount	thereof:		thereof:notimpairedbutpastdueasofbalancesheetdate					thereof:
million€	Other financial assets	neither impaired norpastdue asofbalance sheetdate	pastdue upto30days	pastdue 31to60days	pastdue 61to90days	pastdue 91to180 days	pastdue 181to360 days	pastdue morethan 360days	impaired asof balance sheetdate
Sept.30,2012	374	347	1	0	0	0	0	0	26
Sept.30,2013	1,519	545	0	0	0	0	0	0	974

12 Othernon-financialassets

Othernon-financialassets

	Sept.30,2012		Sept.30,2013
million€	current	non-current	current	non-current
Advancepaymentsonintangibleassets	—	29	—	45
Advancepaymentsonproperty,plantandequipment	—	184	—	144
Advancepaymentstosuppliersofinventoriesandtoothercurrentnon-financialassets	1,040	—	1,322	—
Prepayments	92	—	125	—
Others	524	6	622	146
Total	1,656	219	2,069	335

Othernon-financialassetsintheamountof€1,090million)2012:€889million+havearemainingtermofmorethan1year. AsofSeptember30,2013cumulativeimpairmentsamountto€25million)2012:€29million+regardingcurrentothernonfinancialassetsand€222million)2012:€5million+regardingnon-currentothernon-financialassets.In2013,impairments regardingnon-currentothernon-financialassetsmainlyrelatetotheSteelAmericasbusinessarea.

13 TotalEquity

€10million,€11millionand€1millionofthebalanceofcumulativeothercomprehensiveincomeresultfromassociatesas ofSept.30,2011,Sept.30,2012andSept.30,2013,respectively.€)10+million)2011/2012:€1million+ofthechangesof cumulativeothercomprehensiveincomeresultfromassociates.

The following table shows the changes of the foreign currency translation adjustment which is part of cumulative other comprehensiveincome:

Foreigncurrencytranslationadjustment

million€
BalanceasofSept.30,2011	191
Changeinunrealizedgains/*losses+,net	293
Netrealized*gains+/losses	12
BalanceasofSept.30,2012	496
Changeinunrealizedgains/*losses+,net	*377+
Netrealized*gains+/losses	7
BalanceasofSept.30,2013	126

Capitalstock

ThecapitalstockofThyssenKruppAGconsistsof514,489,044no-parbearersharesofstock,allofwhichhavebeenissued andarefully paid, with514,489,044outstandingasofSeptember30,2012and September30,2013,respectively.Each shareofcommonstockhasastatedvalueof€2.56.

Allsharesgrantthesamerights.Thestockholdersareentitledtoreceivedividendsasdeclaredandareentitledtoonevote pershareatthestockholders'meetings.

Additionalpaidincapital

Additional paid in capital include the effects of the business combination of Thyssen and Krupp as well as premiums resultingfromcapitalincreasesatsubsidiarieswithnon-controllinginterest.

Retainedearnings

Retained earnings include prior years' undistributed consolidated income. In addition, actuarial gains and losses are includedinthisbalancesheetitem.

Regardingthereductionoftheretainedearningsby€427millionasofSeptember30,2012seetheexplanationtotheSteel AmericasbusinessareainNote03.

Treasurystock

To reduce net financial debt as part of the Group's strategic development, on July 06, 2011 the Executive Board of ThyssenKruppAGresolvedtosellthe49,484,842treasuryshares;thiscorrespondsto9.6%ofthecapitalstock.Theshares were sold in an accelerated bookbuilding process at a price of €32.95 per share to mainly German and international institutionalinvestorsonJuly07,2011,leadingtoacashinflowofapproximately€1.6billion;therelatedtransactioncosts of€7millionareaccountedforasadeductionfromequity.

ThepresentedsaleofthetreasurysalesisbasedontheauthorizationoftheAnnualGeneralMeetingofJanurary23,2009 andofJanuary21,2010,respectively,resultinginthefactthatThyssenKruppAGdoesnotanylongerholdtreasuryshares asofSeptember30,2012andSeptember30,2013,respectively.

Managementofcapital

As of September 30, 2013 the Group's equity ratio was 7.1% )2012: 11.8%+ and as a result of impairment charges its gearingtemporarilyincreasedto200.6%)2012:128.1%+.Thegearinglimitof150%agreedinsomecreditagreementswas thereforeexceededasofSeptember30,2013forthefirsttime.Inthe4thquarterofthefiscalyearThyssenKruppreached precautionarily agreements with the banks involved to waive the gearing covenant test for all financial instruments concerned, so the financial instruments remain available to the Group. Our aim is to significantly reduce the Group's temporarilyincreasedgearingwithinthenext12months.AmongtheThyssenKruppGroup'smostimportantfinancialgoals are a sustainable appreciation of entity value and ensuring solvency at all times. Creating sufficient liquidity reserves is thereforeofgreatimportance.

TheThyssenKruppGroup'sfinancialrisksareassessedonthebasisofratingsbyratingagencies:

Rating

	Lang-term rating	Short-term rating	Outlook
Standard&Poor's	BB	B	negative
Moody's	Ba1	NotPrime	negative
Fitch	BBB-	F3	negative

InJanuary2013Moody'sloweredThyssenKrupp'sratingfromBaa3toBa1.AtStandard&Poor'sandMoody'sourratingis thereforebelowinvestmentgrade.OurratingatStandard&Poor'shasbeenbelowinvestmentgradesinceNovember2009; FitchconfirmedourinvestmentgraderatinginDecember2012withanegativeoutlook.Achievinginvestmentgradestatus withallratingagenciesisamajorpriorityforThyssenKrupp.ForthefinancingoftheThyssenKruppGroup,aninvestment graderatinginthe"BBB"rangeleadstoanoptimumofcapitalcosts.Buteveninthecurrentratingsituation,ThyssenKrupp demonstratedthatithasaccesstoabroadinvestorbasewiththeissueofa€1.6billionbondinFebruary/March2013with ahistoricallyfavorablecoupon.CapitalmanagementatThyssenKruppisbasedondebtratiospublishedbyratingagencies, whichmeasurecash-flow-to-debtratiosforaspecificperiod.ThyssenKruppisnotsubjecttocapitalrequirementsunderits articlesofassociation.

Authorizations

AccordingtoArt.5Para.5oftheArticlesofAssociationofThyssenKruppAG,theExecutiveBoardisauthorized,withthe approvaloftheSupervisoryBoard,toincreasethecapitalstockononeormoreoccasionsonorbeforeJanuary19,2017, byupto€500millionbyissuingupto195,312,500newno-parsharesinexchangeforcashand/orcontributionsinkind )AuthorizedCapital+.Theshareholdersarein principleentitledtosubscriptionrights;the option ofexcludingsubscription rightsislimitedto20%ofthecapitalstock.

ByresolutionoftheAnnualGeneralMeetingonJanuary23,2009,theExecutiveBoardisauthorized,subjecttotheapproval oftheSupervisoryBoard,toissuebearerbondswithatotalparvalueupto€2billionandtograntthebondholdersthe righttoconvertthebondsintoatotalofupto€50millionbearersharesofThyssenKruppwithanarithmeticalshareinthe Company'scapitalstockofupto€128million)convertiblebonds+.TheauthorizationisvaliduntilJanuary22,2014.

Inaddition,byresolutionoftheAnnualGeneralMeetingonJanuary21,2010,ThyssenKruppisauthorizedthroughJanuary 20,2015,topurchasetreasurystockforcertaindefinedpurposesuptoatotalof10%ofthecapitalstockatthetimeofthe resolution.Treasurystockcanalsobepurchasedbyusingequityderivatives)putorcalloptionsoracombinationofboth+.

Dividend

Althoughtheannualfinancialstatements ofThyssenKrupp AGdrawnupinaccordance withGermanGAAP)HGB+showa distributableincomeforfiscal2012/2013,netincomeistobeallocatedinfulltootherretainedearningstostrengthenthe company'sequity.Forthisreason,therewillbenodividendproposaltotheAnnualGeneralMeetingbytheExecutiveBoard andSupervisoryBoard.Nodividendwaspaidforfiscalyear2011/2012)2010/2011:€0.45+.

14 Share-basedcompensation

Managementincentiveplans

In 2003, ThyssenKrupp implemented a performance based mid-term incentive plan )MTI+ which issues stock rights to eligibleparticipants.AllExecutiveBoardmembersofThyssenKruppAGareeligibletoparticipate.Startingwiththesecond installment which was issued in 2004, the group of beneficiaries was expanded to include the former segment lead companiesaswellasseveralotherselectedexecutiveemployees.Asoffiscalyear2010/2011thepreviousMTIcontinues withmodifiedparametersaslong-termincentiveplanLTI.BesidestheExecutiveBoardmembersofThyssenKruppAGand of the business areas, management board members and additional selected executives are plan participants. As of September 30, 2013, 1,067,269 stock rights were issued in the 1st installment, 1,651,187 stock rights in the 2nd installmentand1,764,193stockrightsinthe3rdinstallmentoftheLTI.

Thenumberofstockrightsissuedwillbeadjustedattheendofeachperformanceperiodbasedontheaverageeconomic valueadded)EVA+overthethree-yearperformanceperiod,beginningOctober01oftheyearthestockrightsweregranted, compared to the average EVA over the previous three fiscal year period. At the end of the performanceperiod the stock rightswillbesettledincashbasedontheaveragepriceofThyssenKruppstockduringthethreemonthperiodimmediately followingtheperformanceperiod.

Todeterminethefairvalueofthestockrightsusedtocalculatethepro-rataliabilityasofthebalancesheetdateforward pricesoftheThyssenKruppstockarecalculatedtakingintoaccountpartialcapsstartinginthe3rdinstallment.Theforward calculationiscarriedoutforpredefinedperiods)averagingperiods+takingintoaccounttheThyssenKruppstockpriceand theEurointerestratecurveasofthe balancesheetdateandthe dividendsassumedto bepaiduntilthematurity ofthe stockrights.ThefollowingassumptionswereusedforthedeterminationofthefairvaluesasofSeptember30,2012andas ofSeptember30,2013,respectively:

Incentiveplans-YearendedSept.30,2012

	8thinstallmentMTI	1stinstallmentLTI	2ndinstallmentLTI
Maturity	Dec.31,2012	Dec.31,2013	Dec.31,2014
Averagingperiod	Oct.01toDec.31,2012	Oct.01toDec.31,2013	Oct.01toDec.31,2014
ThyssenKruppstockpriceasofbalancesheetdate	€16.54	€16.54	€16.54
			€0.45onJan.21,2013
Assumeddividendpayment*s+perstockuntilmaturity	—	€0.45onJan.21,2013	€0.45onJan.20,2014
Averagedividendyield	—	2.51%	2.67%
Averageinterestrate*averagingperiod+	0.12%	0.42%	0.48%
FairvalueasofSept.30,2012
-withoutcaps	€16.53	€16.08	€15.63
-withcaps	€16.53	€16.08	€15.63

Incentiveplans-YearendedSept.30,2013

	1stinstallmentLTI	2ndinstallmentLTI	3rdinstallmentLTI
Maturity	Dec.31,2013	Dec.31,2014	Dec.31,2015
Averagingperiod	Oct.01toDec.31,2013	Oct.01toDec.31,2014	Oct.01toDec.31,2015
ThyssenKruppstockpriceasofbalancesheetdate	€17.68	€17.68	€17.68
			€0.00onJan.20,2014
Assumeddividendpayment*s+perstockuntilmaturity	—	—	€0.45onFeb.02,2015
Averagedividendyield	—	—	1.22%
Averageinterestrate*averagingperiod+	0.18%	0.44%	0.59%
FairvalueasofSept.30,2013
-withoutcaps	€17.67	€17.66	€17.21
-withcaps	€17.67	€17.66	€17.21

Inthe2ndquarterof2012/2013,the8thinstallmentoftheMTIexpiredwithoutanypaymentduetothestrongdeclineof theaverageThyssenKruppEVAoverthethree-yearperformanceperiodcomparedtotheaverageThyssenKruppEVAover thepreviousthreefiscalyearperiod.Inthe2ndquarterof2011/2012,alsothe7thinstallmentofthemid-termincentive planexpiredwithoutanypaymentduetothedeclineoftheaverageThyssenKruppEVA.In2012/2013theGrouprecorded an expense of €24.8 million from the obligations of the incentive plans )2011/2012: income of €2.2 million+; thereof no expense)2011/2012:incomeof€0.6million+ispresentedinincome/)loss+ofdiscontinuedoperations.Theliabilityarising fromtheLTIamountsto€37.5millionasofSeptember30,2013)2012:€12.7million+.

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 grantedfor each fiscal year will now be converted into ThyssenKrupp AG stockrightstobepaidoutafterathree-yearlock-upperiod.Thenumberofstockrightsiscalculatedbydividing25%ofthe performancebonusbytheaverageThyssenKruppsharepriceinthe4thquarterofthefiscalyearforwhichtheperformance bonusisgranted.Afterexpirationofthreefiscalyears,thepayoutamountiscalculatedbymultiplyingthenumberofstock rightsbytheaverageThyssenKruppsharepriceinthe4thquarterofthe3rdfiscalyear.Inaddition,foreachstockrightthe dividendamountwhichwouldhavebeenpaidforthesethreefiscalyearsisalsopaidout.InsofarastheExecutiveBoard membersofThyssenKruppAGaregrantedanadditionalbonusalongsidetheperformancebonus,asinthepreviousfiscal yearssince2009/2010,55%ofthisadditionalbonuswillalsobeconvertedintostockrightsandtreatedinaccordancewith the performance bonus model. In the 3rd quarter ended June 30, 2011, the structure of the variable compensation for additionalexecutiveemployeeswasmodified.20%oftheperformancebonusgrantedfortherespectivefiscalyearwillbe obligatorilyconvertedintoThyssenKruppAGstockrightstobepaidoutaftertheexpirationofthreefiscalyearsbasedon theaverageThyssenKruppsharepriceinthe4thquarterofthe3rdfiscalyear.TheGrouprecordedexpensesof€5million )2011/2012:€2million+associatedwiththiscompensationcomponent;theresultantobligationasofSeptember30,2013 amountsto€11million)2012:€8million+.

Employeesharepurchaseprogram

Infiscalyear2012/2013theemployeesharepurchaseprogramwasnotofferedwiththeexemptionofGreatBritainwhich resultedinacompensationexpenseof€0.4million.Inthe3rdquarterof2011/2012,theGroupprimarilyofferedeligible membersofitsdomesticworkforcetherighttopurchaseupto€270inThyssenKruppsharesata50%discountaspartof anemployeesharepurchaseprogram.TheprogramresultedintheGrouprecordingcompensationexpenseof€6.0million; thereof€0.5millionarepresentedinincome/)loss+ofdiscontinuedoperations.

15 Accruedpensionandsimilarobligations

Accuredpensionandsimilarobligations

million€	Sept.30,2012	Sept.30,2013
Accruedpensionliability	6,922	6,424
Accruedpostretirementobligationsotherthanpensions	850	698
Otheraccruedpension-relatedobligations	314	263
Reclassificationduetothepresentationasliabilitiesassociatedwithassetsheldforsale	*378+	*29+
Total	7,708	7,356

Accruedpensionandsimilarobligationsintheamountof€6,029million)2012:€7,111million+havearemainingtermof morethan1year.

Thecumulativeactuarialgains/)losses+frompensionsandsimilarobligationsamountto€)1,763+million)2012:€)1,959+ million+asofthebalancesheetdate;thisincludeseffectsfromacquisitions/divestituresofbusinessesof€74million)2012: €107million+.

Accruedpensionliability

TheGroupmaintainsdefinedbenefitpensionplansanddefinedcontributionplansthatcoverthemajorityoftheemployees inGermany,theUSAandGreatBritain.Insomeothercountries,eligibleemployeesreceivebenefitsinaccordancewiththe respectivelocalrequirements.

In Germany, benefits generally take the form of pension payments that are indexed to inflation. Benefits for some senior staffarebasedonyearsofserviceandsalaryduringareferenceperiod,whichisgenerallythreeyearspriortoretirement. Otheremployeesreceivebenefitsbased onyears ofservice. Inaddition,ThyssenKrupp offerscertainGerman employees the opportunity to participate in a defined benefit program which allows for the deferral of compensation which earns interestatarateof6.00%peryearuntilcalendaryear2012andatarateof5.00%asofcalendaryear2013.

In the USA, hourly paid employees receive benefits based on years of service. Salaried employee benefits are typically based on years of service and salary history. In Great Britain, employee benefits are based on years of service and an employee'sfinalsalarybeforeretirement.

Changesindefinedbenefitobligationsandplanassets

Thereconciliationofthechangesinthedefinedbenefitobligationsandthefairvalueofplanassetsareasfollows:

Definedbenefitobligationsandplanassets

		Sept.30,2012			Sept.30,2013
million€	Germany	Outside Germany	Total	Germany	Outside Germany	Total
Changeindefinedbenefitobligations0DBO2:
DBOatbeginningoffiscalyear	5,653	2,101	7,754	6,542	2,419	8,961
Servicecost	78	33	111	97	34	131
Interestcost	268	92	360	219	78	297
Participantcontributions	0	12	12	0	13	13
Pastservicecost	0	0	0	19	1	20
Actuarial*gains+/losses	1,044	248	1,292	70	*78+	*8+
Acquisitions/*divestitures+	*89+	*40+	*129+	*307+	*27+	*334+
Curtailments	*2+	*1+	*3+	2	*3+	*1+
Settlements	0	*1+	*1+	0	*11+	*11+
Currencydifferences	0	96	96	0	*81+	*81+
Benefitpayments	*410+	*121+	*531+	*404+	*162+	*566+
Others	0	0	0	0	0	0
DBOatendoffiscalyear	6,542	2,419	8,961	6,238	2,183	8,421
Changeinplanassets:
Fairvalueofplanassetsatbeginningoffiscalyear	192	1,594	1,786	200	1,882	2,082
Expectedreturnonplanassets	12	102	114	12	103	115
Actuarialgains/*losses+	6	115	121	2	*4+	*2+
Acquisitions/*divestitures+	3	*23+	*20+	*4+	1	*3+
Employercontributions	0	111	111	2	79	81
Participantcontributions	0	12	12	0	13	13
Settlements	0	0	0	0	*1+	*1+
Currencydifferences	0	77	77	0	*67+	*67+
Benefitpayments	*13+	*106+	*119+	*13+	*151+	*164+
Others	0	0	0	0	0	0
Fairvalueofplanassetsatendoffiscalyear	200	1,882	2,082	199	1,855	2,054

Asofthebalancesheetdate,definedbenefitobligationsof€8,421million)2012:€8,961million+intotalrelatedtoplans that are wholly unfunded in the amount of €5,773 million )2012: €6,131 million+ and to plans that arewholly or partly fundedintheamountof€2,648million)2012:€2,830million+.

Actual return which amounts to €113 million )2012: €235 million+ is calculated as the total of expected return on plan assetsandactuarialgainsandlosses,respectively.

Fundedstatusandnetamountrecognized

Thefollowingrepresentsthefundedstatusoftheseplansresultingfromthedifferenceofdefinedbenefitobligationsand fairvalueofplanassetsincludingareconciliationtothenetamountrecognized:

Fundedstatusandamountrecognized

	Sept.30,2012				Sept.30,2013
million€	Germany	Outside Germany	Total	Germany	Outside Germany	Total
Fundedstatusatendoffiscalyear	*6,342+	*537+	*6,879+	*6,039+	*328+	*6,367+
Notrecognizedasanassetduetoassetceiling	0	3	3	0	2	2
Unrecognizedpastservicecost	0	*35+	*35+	0	*29+	*29+
Netamountrecognized	*6,342+	*569+	*6,911+	*6,039+	*355+	*6,394+
Amountsrecognizedintheconsolidatedbalancesheetsconsistof:
Othernon-financialassets	0	11	11	0	30	30
Accruedpensionliability	*6,342+	*580+	*6,922+	*6,039+	*385+	*6,424+
Netamountrecognized	*6,342+	*569+	*6,911+	*6,039+	*355+	*6,394+

Netperiodicpensioncost

Thenetperiodicpensioncostforthedefinedbenefitplanswereasfollows:

Netperiodicpensioncost

	YearendedSept.30,2012				YearendedSept.30,2013
million€	Germany	Outside Germany	Total	Germany	Outside Germany	Total
Servicecost	78	33	111	97	34	131
Interestcost	268	92	360	219	78	297
Expectedreturnonplanassets	*12+	*102+	*114+	*12+	*103+	*115+
Pastservicecost	0	0	0	19	1	20
Settlementandcurtailmentloss/*gain+	*2+	*1+	*3+	2	*14+	*12+
Netperiodicpensioncost	332	22	354	325	*4+	321

Theabovepresentednetperiodicpensioncostfordefinedbenefitplansintheamountof€325million)2011/2012:€332 million+ in Germany and of €)4+ million )2011/2012: €22 million+ outside Germany include €5 million )2011/2012: €17 million+ and €0 million )2011/2012: €1 million+, respectively, attributable to discontinued operations. These costs are presentedinincome/)loss+fromdiscontinuedoperationsintheconsolidatedstatementofincome.

Assumptions

Theassumptionsfordiscountrates,theratesofcompensationincreaseandtheratesofpensionprogressiononwhichthe calculationoftheobligationsisbasedwerederivedinaccordancewithstandardprinciplesandestablishedforeachcountry asafunctionoftheirrespectiveeconomic conditions. Discountratesaregenerally determinedbasedon marketyieldsof AA-ratedcorporatebondsofappropriatetermandcurrency.

Theexpectedreturnonplanassetsisdeterminedbasedondetailedstudiesconductedbytheplans'thirdpartyinvestment andactuarialadvisors.Thestudiestakeintoconsiderationthelong-termhistoricalreturnsandthefutureestimatesoflongterminvestmentreturnsbasedonthetargetassetallocation.

Accrued pensions in Germany are recognized on the basis of the "2005 G tables" of Prof. Dr. Klaus Heubeck, with modificationsforcertainbeneficiarygroupstotakeintoaccountalongerlifeexpectancy.

TheGroupappliedthefollowingweightedaverageassumptionstodeterminebenefitobligations:

Weighted-averageassumptions

	Sept.30,2012				Sept.30,2013
	Germany	Outside Germany	Total	Germany	Outside Germany	Total
Discountrate	3.60	3.44	3.56	3.50	3.88	3.60
Rateofcompensationincrease	2.50	1.99	2.36	2.50	2.30	2.45
Rateofpensionprogression	1.50	1.76	1.53	1.50	1.91	1.56
Expectedreturnonplanassets	6.00	6.33	6.29	6.00	5.76	5.78

151 Consolidatedfinancialstatements Notestotheconsolidatedfinancialstatements

Alternative discount rates )weighted-average rate of all domestic and foreign pension obligations+ would result in the followingchangesinthedefinedbenefitobligationandthecorrespondingreversechangesinequity:

Sensitivityanalysis

Discountrate 0%2	Changeofthedefinedbenefitobligation 0€million2
3.00	563
3.25	327
3.50	120
3.75	*137+
4.00	*364+

Planassets

IntheGroup,themajorityofreportedplanassetsassociatedwiththefundedpensionplansarelocatedintheUSA,Great Britainandtoa lesserextentin GermanyandsomeotherEuropean countries. TheGroupinvestsin diversifiedportfolios consisting of an array of asset classes that attempt to maximize returns while minimizing volatility. The asset classes include national and international stocks, fixed income government and non-government securities and real estate. Plan assetsdonotincludeanydirectinvestmentsinThyssenKruppdebtsecurities,equitysecuritiesorrealestate.

TheGroupusesprofessionalinvestmentmanagerstoinvestplanassetsbasedonspecificinvestmentguidelinesdeveloped bytheplans'InvestmentCommittees.TheInvestmentCommitteesconsistofseniorfinancialmanagementespeciallyfrom treasury and other appropriate executives. The Investment Committees meet regularly to approve the target asset allocations,andreviewtherisksandperformanceofthemajorpensionfundsandapprovetheselectionandretentionof externalmanagers.

TheGroup'stargetportfoliostructurehasbeendevelopedbasedonasset-liabilitystudiesthatwereperformedforthemajor pensionfundswithintheGroup.

Thepensionplanassetallocationandtargetallocationareasfollows:

Allocationofplanassets

	Planassetsasof	Target allocation
	Sept.30,2012	Sept.30,2013	Sept.30,2014
Equitysecurities	43%	44%	35-50%
Debtsecurities	49%	47%	40-55%
Realestate/other	8%	9%	0-10%
Total	100%	100%

In general, the Group's funding policy is to contribute amounts to the plans sufficient to meet the minimum statutory fundingrequirementsrelevantinthecountryinwhichtheplanislocated.IntheUSA,certainplansrequireminimumfunding based on collective bargaining agreements. The Group may from time to time make additional contributions at its own discretion.ThyssenKrupp'sexpectedcontributioninfiscalyear2013/2014is€63millionrelatedtoitsfundedplans,allof whichisexpectedtobeascashcontributions.

Pensionbenefitpayments

In fiscal year 2012/2013, pension benefit payments to the Group's German and Non-German plans were €404 million )2011/2012:€410million+and€162million)2011/2012:€121million+respectively.Theestimatedfuturepensionbenefits tobepaidbytheGroup'sdefinedbenefitpensionplansareasfollows:

Estimatedfuturepensionbenefitpayments

million€	Germany	Outside Germany	Total
*forfiscalyear+
2013/2014	426	120	546
2014/2015	412	113	525
2015/2016	412	116	528
2016/2017	403	117	520
2017/2018	399	118	517
2018/2019-2022/2023	1,899	593	2,492
Total	3,951	1,177	5,128

Multi-yearoverview

Amountsrecognizedforthecurrentandthepreviousyearsfordefinedbenefitpensionplansareasfollows:

Keyfiguresofdefinedbenefitpensionplans

million€	Sept.30,2009	Sept.30,2010	Sept.30,2011	Sept.30,2012	Sept.30,2013
Presentvalueofdefinedbenefitobligation	7,754	8,664	7,754	8,961	8,421
Fairvalueofplanassets	1,692	2,053	1,786	2,082	2,054
Surplus/*deficit+intheplans	*6,062+	*6,611+	*5,968+	*6,879+	*6,367+
Experienceadjustmentsonplanliabilities	25	65	*1+	*36+	0
Experienceadjustmentsonplanassets	*23+	60	*89+	123	*1+

DefinedContributionPlans

TheGroupalsomaintainsdomesticandforeigndefinedcontributionplans.AmountscontributedbytheGroupundersuch plansarebaseduponpercentageoftheemployees'salaryortheamountofcontributionsmadebytheemployees.Thetotal costofpensionplansaccountedforasdefinedcontributionplansinthecurrentfiscalyearwas€127million)2011/2012: €128 million+. In addition, contributions paid to public/state pension insurance institutions amounted to €578 million )2011/2012:€615million+.

Accruedpostretirementobligationsotherthanpensions

TheGroupprovidescertainpostretirementhealthcareandlifeinsurancebenefitstoretiredemployeesintheUSAwhomeet certainminimumrequirementsregarding ageandlength ofservice. The plans primarilyrelatetotheretainedassetsand liabilitiesofThyssenKruppBudd.

InDecember2003,theUSgovernmentsignedintolawtheMedicarePrescriptionDrug,ImprovementandModernizationAct. Thislawprovidesforafederalsubsidytosponsorsofretireehealthcarebenefitplansthatprovidebenefitthatisatleast actuarially equivalent to the benefit established by the law. The Group accounts for these federal subsidies as reimbursementrightsinaccordancewithIAS19.

Changesinaccumulatedpostretirementbenefitobligationsandreimbursementrights

Thechangesinaccumulatedpostretirementbenefitobligationsandreimbursementrightsareasfollows:

Changeinaccumulatedpostretirementbenefitobligationandreimbursementrights

million€	Sept.30,2012 USA	Sept.30,2013 USA
Changeinaccumulatedpostretirementbenefitobligation:
Accumulatedpostretirementbenefitobligationatbeginningoffiscalyear	1,017	850
Servicecost	4	1
Interestcost	42	29
Pastservicecost	*63+	*2+
Actuarial*gains+/losses	*63+	*111+
Acquisitions/*divestitures+	*89+	0
Curtailments	0	*1+
Settlements	0	0
Currencydifferences	43	*34+
Benefitpayments	*41+	*34+
Accumulatedpostretirementbenefitobligationatendoffiscalyear	850	698
Changeinreimbursementrightsrelatingtopostretirementbenefits:
Fairvalueofreimbursementrightsatbeginningoffiscalyear	88	0
Expectedreturnonreimbursementrights	3	0
Actuarialgains/*losses+	*90+	0
Currencydifferences	3	0
Benefitpayments	*4+	0
Fairvalueofreimbursementrightsatendoffiscalyear	0	0

Actual return which amounts to €0 million )2012: €)87+ million+ is calculated as the total of expected return on reimbursementrightsandactuarialgainsandlosses,respectively.

Fundedstatusandnetamountrecognized

Thefollowingrepresentsthefundedstatusoftheseplansincludingthereconciliationtothenetamountrecognized:

Fundedstatusandamountrecognized

million€	Sept.30,2012 USA	Sept.30,2013 USA
Fundedstatusatendoffiscalyear	*850+	*698+
Unrecognizedpastservicecost	0	0
Netamountrecognizedforpostretirementobligationsotherthanpensions	*850+	*698+

Netperiodicpostretirementbenefitcost

Thenetperiodicpostretirementbenefitcostforhealthcareobligationsisasfollows:

Netperiodicpostretirementbenefitcost

million€	Yearended Sept.30,2012 USA	Yearended Sept.30,2013 USA
Servicecost	4	1
Interestcost	42	29
Expectedreturnonreimbursementrights	*3+	0
Pastservicecost	*37+	*2+
Settlementandcurtailmentloss/*gain+	0	*1+
Netperiodicpostretirementbenefitcost	6	27

Assumptions

The determination of the accumulated postretirement benefit obligations is based on the following weighted average assumptions:

Weighted-averageassumptions

%	Sept.30,2012 USA	Sept.30,2013 USA
Discountrate	3.50	4.25
Healthcarecosttrendrateforthefollowingyear	9.36	9.09
Ultimatehealthcarecosttrendrate*expectedin2032+	5.00	4.98

Theeffectsofaone-percentage-pointincreaseordecreaseintheassumedhealthcarecosttrendratesareasfollows:

Sensitivityanalysis

		one-percentage-point
million€	Increase	Decrease
Effectonserviceandinterestcostcomponents	5	*4+
Effectonpostretirementbenefitobligation	111	*89+

Multi-yearoverview

Amounts recognized for the current and the previous years for postretirement obligations other than pensions are as follows:

Keyfiguresofpostretirementobligations

	Sept.30,2009	Sept.30,2010	Sept.30,2011	Sept.30,2012	Sept.30,2013
Presentvalueofdefinedbenefitobligation	1,040	1,188	1,017	850	698
Fairvalueofreimbursementrights	76	94	88	0	0
Surplus/*deficit+	*1,040+	*1,188+	*1,017+	*850+	*698+
Experienceadjustmentsonplanliabilities	*1+	11	9	20	16
Experienceadjustmentsonreimbursementrights	1	1	*2+	1	0

Otheraccruedpensionrelatedobligations

In particular German companies have obligations resulting from partial retirement agreements. Under these agreements, employeesworkadditionaltimepriortoretirement,whichissubsequentlypaidforininstallmentsafterretirement.Forthese obligations, accruals in the amount of €226 million )2012: €267 million+ were recognized in accordance with IAS 19 "EmployeeBenefits".

16 Provisionsforemployeebenefitsandotherprovisions

Provisions for employee benefits and other provisions

million $\epsilon$	Employee benefits	Product warranties and product defects	Other contractual costs	Restruc- turings	Decom- missioning obligations	Environ- mental obligations	Litigation risks	Other obligations	Total
Balance as of
Sept. 30, 2012	511	488	88	162	227	24	124	476	2,100
Currency differences	(14)	(21)	(4)	(1)	$\mathbf{0}$	$\mathbf 0$	(7)	(8)	(55)
Acquisitions/
(divestitures)	32	6	$\overline{4}$	(2)	(1)	$\mathbf 0$	24	198	261
Additions	281	165	77	225	39	5	72	269	1,133
Accretion	10	$\mathbf{A}$	$\mathbf{0}$		(16)	$\mathbf{0}$	$\Omega$	5
Amounts utilized	(204)	(63)	(27)	(98)	(11)	(3)	(19)	(123)	(548)
Reversals	(48)	(87)	(42)	(14)	(3)	0	(23)	(83)	(300)
Reclassification due to the presentation as liabilities associated with assets held for sale	$\mathbf 0$	0	8	$\mathbf{0}$	$\mathbf{0}$	$\mathbf 0$	7	$\mathbf{0}$	15
Balance as of Sept. 30, 2013	568	489	104	273	235	26	178	734	2,607

AsofSeptember30,2013,€1,661million2012:€1,308millionofthetotalofprovisionsforemployeebenefitsandother provisionsarecurrent,while€946million 2012:€792millionarenon-current.Provisionsof€1,029million 2012:€945 millionhavearemainingtermofmorethan1year.

Provisions for employee compensation and benefit costs primarily represent employment anniversary bonuses and obligations for the management incentive plans, while social plan and related costs pertaining to personnel related structural measures are reflected in the provision for restructuring activities. Pension related obligations for partial retirement agreements and early retirement programs, partly resulting from restructurings, are part of the provision for pensionsandsimilarobligations.

Productwarranties and product defects representtheGroup's responsibilityforthe properfunctioning ofthe goodssold productwarrantyaswellastheobligationthatarisefromtheuseoftheproductssoldproductdefect.

Provisionsforothercontractualcostsrepresentpendinglossesfromuncompletedcontracts.

The provisionfor restructuringsconsists of provisionsforemployeetermination benefits andexitcostswhich have been established by operating divisions for costs incurred in connection with activities which do not generate any future economicbenefitsfortheGroup.WiththeexemptionofSteelAmericasrestructuringsarebeingcarriedoutinallbusiness areas The additionsto restructuring provisions inthefiscal year inthe amount of €225million intotalconsists of €123 million withinthe Steel Europe business area, €49millionwithinthe Elevator Technology business area and €25 million withinCorporate.

The provision for decommissioning obligations mainly consists of obligations associated with mining activities and recultivatinglandfills.Obligationsassociatedwithminingactivitiesandrecultivatinglandfillsaregenerallyhandledoverlong periods oftime, insomecasesmorethan 30 years. Thetechnical parameters areverycomplex. As a result, uncertainty existswithregardtothetimingandconcreteamountoftheexpenses.

Provisions for environmental obligations refer primarily to rehabilitating contaminated sites, redevelopment and water protectionmeasures.

Provisionsfor litigation risks include an amount inthe lowthree-digitmillionsforclaimsfor compensation in connection withtherailcartel,aswellasanamountinthelowtwo-digitmillionsforthecostsofdefendingclaimsinconnectionwith theelevatorcartel.Forfiledclaimsfordamages,provisionsforlitigation risksare recognizedinsofarasindividualclaims meettherequirementsofIAS37forprobabilityofoccurrenceandcanbereliablyestimated.

17 Financialdebt

Financial debt

Carrying amounts in million €	Sept. 30, 2012	Sept. 30, 2013
Bonds	3,983	4,584
Notespayable	529	430
Liabilitiestofinancialinstitutions	570	1,782
Financeleaseliabilities	44	43
Otherloans	130	116
Non-currentfinancialdebt	5,256	6,955
Bonds	1,001	998
Notespayable	250	150
Commercialpaper	0	100
Liabilitiestofinancialinstitutions	642	625
Acceptancepayables	13	4
Financeleaseliabilities	13	10
Otherloans	10	24
Currentfinancialdebt	1,929	1,911
Financialdebt	7,185	8,866

Currentfinancialdebtincludesfinancialdebtwitharemainingtermuptooneyear,whilethenon-currentfinancialdebthas aremainingtermofmorethanoneyear.

Financialdebtintheamountof€47million2012:€6millioniscollateralizedbyrealestate.

As of September 30, 2013,thefinancial debt reflects atotal discount inthe amount of €21 million 2012: €19million, whichisoffsetbyatotalpremiumintheamountof€1million2012:€1million.Amortizationofdiscountsandpremiums offinancialdebtisincludedin"financialincome/expense,net".

Inthecontextofthepresentationofdisposalgroupsanddiscontinuedoperationsfinancialdebtof€5million2012:€968 millionwerereclassifiedtothebalancesheetlineitem"liabilitiesassociatedwithassetsheldforsale".

Bonds and notes payable

	Carrying amount	Carrying amount	Notional amount		Fair value
	in million €	in million €	in million €	Interest	in million €	Maturity
	Sept. 30, 2012	Sept. 30, 2013	Sept. 30, 2013	rate in %	Sept. 30, 2013	Date
ThyssenKruppFinanceNederlandB.V.bond%€1,000million&2009/2013	1,001	—	—	—	—	02/25/2013
ThyssenKruppFinanceNederlandB.V.bond%€1,000million&2009/2016	994	996	1,000	8.500	1,128	02/25/2016
ThyssenKruppAGbond%€1,000million&2009/2014	995	998	1,000	9.250	1,052	06/18/2014
ThyssenKruppAGbond%€750million&2005/2015	750	750	750	4.375	775	03/18/2015
ThyssenKruppAGbond%€1,250million&2012/2017	1,244	1,245	1,250	4.375	1,296	02/28/2017
ThyssenKruppAGbond%€1,600million&2013/2018	—	1,593	1,600	4.000	1,635	08/27/2018
ThyssenKruppAGnoteloan%€100million&2008/2013	100	—	—	—	—	04/15/2013
ThyssenKruppAGnoteloan%€150million&2008/2013	150	—	—	—	—	04/25/2013
ThyssenKruppAGnoteloan%€150million&2008/2014	150	150	150	5.375	156	05/21/2014
ThyssenKruppAGnoteloan%€80million&2008/2016	80	80	80	5.710	87	09/15/2016
ThyssenKruppAGnoteloan%€50million&2011/2016	50	50	50	4.750	54	03/11/2016
ThyssenKruppAGnoteloan%€150million&2011/2016	150	150	150	4.900	163	03/11/2016
ThyssenKruppAGnoteloan%€50million&2011/2016	50	50	50	4.750	54	03/29/2016
ThyssenKruppAGnoteloan%€31million&2011/2016	49	31	31	4.750	33	04/12/2016
ThyssenKruppAGnoteloan%€50million&2012/2017	—	69	70	3.550	74	10/02/2017
Total	5,763	6,162	6,181		6,507

InFebruary2013ThyssenKruppAGissueda€1.25billionbondthathasa51/2yearmaturity.InMarch2013thebondwas raisedby€350millionto€1.6billionintotal.

ThyssenKruppAGhasassumedtheunconditionalandirrevocableguaranteeforthepaymentspursuanttothetermsand conditionsofthebondofThyssenKruppFinanceNederlandB.V.

AsofSeptember30,2013,thefinancingstructureofliabilitiestofinancialinstitutions,commercialpapersandotherloans comprisethefollowing:

Liabilitiestofinancialinstitutions,commercialpaperandotherloans

	Carrying amount inmillion€ Sept.30,2012	Carrying amount inmillion€ Sept.30,2013	Amount thereof inEuro	Weighted average interest rate% Sept.30,2013	Amount thereof inUSD	Weighted average interest rate% Sept.30,2013	Amount thereof inother currencies	Fairvalue inmillion€ Sept.30,2013
Bilateralcreditsatvariableinterestrates	—	921	305	1.37	616	1.45	0	921
Commercialpaper	—	100	100	1.01	0	0.00	0	100
Othercreditsatvariableinterestrates	318	901	81	1.81	215	2.14	605	901
Creditsatfixedinterestrates	1,034	725	476	5.54	8	0.66	241	721
Total	1,352	2,647	962	3.75	839	1.97	846	2,643

As of September 30, 2013, ThyssenKrupp has available a €2.5 billion syndicated joint credit multi-currency-facility agreement. The agreement wasfixed in July 2005 and has aterm until July 01, 2014. Thefacility agreement was not utilizedasofthebalancesheetdate.

In addition to the syndicated joint credit multi-currency-facility agreement there are revolving credit agreements with bankinginstitutionswherebyThyssenKruppAG,ThyssenKruppFinanceUSA,Inc.orThyssenKruppFinanceNederlandB.V. canborrowinEuros,U.S.dollarsorinBritishpoundsSterling.AsofSeptember30,2013,€1billionwasnotdrawn.

IntotaltheGrouphasavailableunused,committedcreditlinesamountingto€3.5billion.

TheGroup'sCommercialPaperProgramalsoprovidesupto€1.5billioninadditionalfinancing.Commercialpapersaredebt instrumentswhichcanbeissuedunderourprogramwithatermofupto364daysdependingoninvestordemand.Asof September30,2013,theprogramwasusedintheamountof€100million.

Asofthebalancesheetdatethefutureminimumleasepaymentsreconciletotheirpresentvalue7=financeleaseliability9 asfollows:

Reconciliationfutureminimumleasepaymentstopresentvalueoffinanceleaseliability

		Sept.30,2012			Sept.30,2013
million€	Future minimum lease payments	Interest	Present value ,finance lease liabilities	Future minimum lease payments	Interest	Present value ,finance lease liabilities
Notlaterthanoneyear	17	4	13	13	3	10
Betweenoneandfiveyears	35	10	25	36	9	27
Laterthanfiveyears	32	13	19	27	11	16
Total	84	27	57	76	23	53

Maturityoffinancialdebtisasfollows:

Maturity
of
financial
debt

million € 5for fiscal year6	Total financial debt	thereof: Liabilities to financial institutions
2013/2014	1,911	625
2014/2015	1,003	240
2015/2016	1,662	299
2016/2017	1,454	203
2017/2018	2,029	363
thereafter	807	677
Total	8,866	2,407

18 Tradeaccountspayable

Tradeaccountspayableintheamountof€230million2012:€73millionhavearemainingtermofmorethan1year.

19 Otherfinancialliabilities

Other
financial
liabilities

	Sept. 30, 2012		Sept. 30, 2013
million €	current	non-current	current	non-current
Financialliabilitiesmeasuredatamortizedcost	681	1	1,007	2
Derivativesthatdonotqualifyforhedgeaccounting	71	—	172	—
Derivativesthatqualifyforhedgeaccounting	96	—	62	—
Total	848	1	1,241	2

Otherfinancialliabilitiesamountingto€33million2012:€28millionhavearemainingtermofmorethan1year.

20 Othernon-financialliabilities

Other non-financial liabilities

	Sept. 30, 2012		Sept. 30, 2013
million €	current	non-current	current	non-current
Amountsduetocustomersforconstructionwork	4,862	—	4,930	—
Advancepayments	1,239	—	1,314	—
Sellingandbuyingmarketrelatedliabilities	699	—	794	—
Liabilitiesduetoputoptions	18	—	12	—
Liabilitiestotheemployees	706	—	733	—
Liabilitiesforsocialsecurity	84	—	87	—
Deferredincome	23	—	60	—
Taxliabilities%withoutincometaxes&	157	—	218	—
Other	311	8	307	1
Total	8,099	8	8,455	1

Other non-financial liabilities amounting to €3,485 million 2012: €1,729 million have a remaining term of more than 1year.

Amountsduetocustomersforconstructionworkarecalculatedasfollows:

Liabilities
for
construction
work

million €	Sept. 30, 2012	Sept. 30, 2013
Contractcostsincurredandrecognized
contractprofits%lessrecognizedlosses&	8,313	9,353
Lessadvancepaymentsreceived	%13,175&	%14,283&
Total	%4,862&	%4,930&

21 Contingenciesandcommitments

Contingencies

ThyssenKruppAGaswellas,inindividualcases,itssubsidiarieshaveissuedorhavehadguaranteesissuedinfavourof customers or lenders. The following table shows obligations under guarantees where the principal debtor is not a consolidatedGroupcompany:

Contingencies

		Maximum potential amount of future payments as of	Provision as of
million €	Sept. 30, 2012	Sept. 30, 2013	Sept. 30, 2012	Sept. 30, 2013
Advancepaymentbonds	232	256	1	1
Performancebonds	161	117	1	1
Thirdpartycreditguarantee	53	89	0	0
Residualvalueguarantees	61	61	2	2
Otherguarantees	35	74	0	1
Total	542	597	4	5

Guarantees include contingent liabilities of associates of €80 million 2012: €2million and contingent liabilities of joint ventures of€419million 2012:€422million of.Contingentliabilitiesofjointventuresinclude€189million 2012:€183 millionthatapplytothesharesoftheotherjointventurers.

Thetermsoftheseguaranteesdependonthetypeofguaranteeandmayrangefromthreemonthstotenyearse.g.rental paymentguarantees.

The basis for possible payments under the guarantees is always the non-performance of the principal debtor under a contractualagreement,e.g.latedelivery,deliveryofnon-conforminggoodsunderacontract,non-performancewithrespect tothewarrantedqualityordefaultunderaloanagreement.

All guarantees are issued by or issued by instruction of ThyssenKrupp AG or subsidiaries upon request ofthe principal debtorobligatedbytheunderlyingcontractualrelationshipandaresubjecttorecourseprovisionsincaseofdefault.Issuch aprincipaldebtorisacompanyownedfullyorpartiallybyaforeignthirdparty,suchthirdpartyisgenerally requestedto provideadditionalcollateralinacorrespondingamount.

ThyssenKrupp bears joint and several liability as a member of certain civil law partnerships, ordinary partnerships and consortiums.

FormerstockholdersofThyssenandofKrupphavepetitionedperArt.305UmwGReorganizationActforajudicialreview oftheshareexchangeratiosusedinthemergerofThyssenAGandFried.KruppAGHoesch-KrupptoformThyssenKrupp AG.TheproceedingsarependingwiththeDüsseldorfRegionalCourt.Shouldarulingbemadeinfavourofthepetitioners, theCourtwouldrequiresettlementtobemadeviaanadditionalcashpaymentplusinterest.Theadditionalpaymentalso would be requiredto be madeto all affected stockholders, even iftheywere not petitioners inthe judicial proceedings. However,theGroupexpects nosuch paymentsto become due astheexchange ratioswere duly determined, negotiated between unrelated parties and audited and confirmed by the auditor that has been appointed by court, and differ only insignificantlyfromthevalueratiodeterminedbytheexpertappointedbytheDüsseldorfRegionalCourt.

In connection with the rail cartel a claim from various companies of the Deutsche Bahn group DB is pending against ThyssenKrupp GfT Gleistechnik, ThyssenKrupp Materials International and further cartel participants. DB is seeking extensiveinformationandinthisconnectionestimatesthetotaldamagescausedbyallparticipantsinthecartelat€550 millionplusinterestofapprox.€300million.ThetalksconductedwithDBonthishaveresultedinanagreementinprinciple onasettlementtotheaction.ThesettlementissubjecttoapprovalbytheresponsiblebodiesandinthecaseofDBbythe fundingproviders.InthemeantimeothercompaniesapartfromDBhavealsoassertedorannouncedout-of-courtclaims against ThyssenKrupp in connection with the rail cartel, but these have not been substantiated. ThyssenKrupp has recognized provisionsfor risks in connectionwiththe claimsfor damages.On July 23, 2013the German Federal Cartel Officeimposedasecondandfinalfineof€88milliononThyssenKrupp,whichwaspaidinAugust.

Claimsfor damageshave beenfiledagainstThyssenKruppAGandcompaniesoftheThyssenKruppGroupinconnection withthe elevator cartel. ThyssenKrupp is answering claimsfor damages being pursued in court. Provisionsfor litigation risks are recognized where individual claims meet the requirements of IAS 37 for probability of occurrence and can be reliablyestimated.

Actingonananonymoustip,theGermanFederalCartelOfficehasbeeninvestigatingThyssenKruppSteelEuropeandother companies since the end of February 2013 based on an initial suspicion of price fixing in the delivery of certain steel productstotheGermanautoindustryanditssuppliersoveraperioddatingbackto1998.ThyssenKrupphaslaunchedits own investigation into the allegations with the support of external lawyers. The amnesty program we carried out from April15toJune15,2013producednoleadsregardingtheongoinginvestigations.TheinvestigationsbytheFederalCartel Officeareongoing.TheinternalinvestigationslaunchedinresponsetotheinvestigationsoftheFederalCartelOfficeareat anadvancedstagebutnotyetcomplete.Basedonthefactscurrentlyknowntous,significantadverseconsequenceswith regardtotheGroup'sasset,financialandearningssituationcannotberuledout.

Inadditionfurtherlegalandarbitrationactionsandofficialinvestigationsandproceedingsaswellasclaimshavebeenfiled againstThyssenKruppcompaniesormaybeinitiatedorfiledinthefuture.Theyincludeforexamplelegal,arbitrationand out-of-court disputes in connection with the acquisition or disposal of companies or company units which may lead to partial repayment ofthe purchase price ortothe payment of damages.Furthermore, damageclaimsmay be payableto contractual partners, customers, consortium partners and subcontractors under performance contracts. Predicting the progressandresultsoflawsuitsinvolvesconsiderabledifficultiesanduncertainties.Thismeansthatlawsuitsnotdisclosed separatelycould also individually ortogetherwith other legal disputes have a negative and also potentiallymajorfuture impactontheGroup'snetassets,financialpositionandresultsofoperations.However,atpresentThyssenKruppdoesnot expectpendinglawsuitsnotexplainedseparatelyinthissectiontohaveamajornegativeimpactontheGroup'snetassets, financialpositionandresultsofoperations.

Commitments and other contingencies

TheGroupisthelesseetoproperty,plantandequipmentclassifiedasoperatingleases.Rentalexpenseamountingto€324 million 2011/2012: €330 million resulting from rental contracts, long-term leases and leasing contracts classified as operatingleaseswasincurredinfiscal2012/2013.Itcomprisesasfollows:

Expense resulting from operating lease contracts
--------------------------------------------------	--	--	--	--	--	--

million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
Minimumrentalpayments	329	324
Contingentrentalpayments	1	0
lessincomefromsubleaseagreements	0	0
Total	330	324

Thefutureminimumrentalpayments,excludingaccruedinterestfromsuchnon-cancellablecontractsthathaveaninitialor remainingtermofmorethanoneyearasofthebalancesheetdateareatfaceamounts:

Future
minimum
rental
payments

million €	Sept. 30, 2012	Sept. 30, 2013
Notlaterthanoneyear	225	237
Betweenoneandfiveyears	516	482
Laterthanfiveyears	170	158
Total	911	877

Thefutureminimumrentalincomefromnon-cancelablesubleasecontractsamountingto€1million2011/2012:€1million isnotincludedinthetotaloffutureminimumrentalpayments.

Thecommitmenttoenterintoinvestmentprojectsamountsto€506million2012:€874millionasofSeptember30,2013 andrelatesmainlytoproperty,plantandequipmentoftheSteelEuropeandComponentsTechnologybusinessareas.

Paymentcommitmentsandobligationstomakefurthercontributionstocorporationsandcooperativeassociationsexistin thetotalamountof€3million 2012:€3million.Inaddition,otherfinancialcommitmentsexistintheamount of€2,737 million 2012: €4,188 million, primarilyfromthe commitmentsto purchase coking coal, coal and lime under longterm supplycontracts and obligations undership-charter contracts intheSteel Europe and Steel Americas business areas as well as purchasing commitments resultingfromtheGroup'selectricity and gassupplycontracts.In addition, intheSteel EuropeandSteelAmericasbusinessareaslongtermironoreandironorepelletssupplycontractsexistwhichwillresultin purchasingcommitmentsoveraperiodofupto11years.Duetothehighvolatilityofironoreprices,themeasurementof the complete purchasing commitments is based on the iron ore price as of the current balance sheet date resulting in purchasingcommitmentsof€14,770million2012:€15,569millionintotal.

Based onthe risk bearing ability ofthe Group orthe Group companies, there exist adequate deductibles in the various classes of insurance. One or more damages at these units could impact the Group's net assets, financial position and resultsofoperations.

22 Financialinstruments

Thefollowingtableshowsfinancialassetsandliabilitiesbymeasurementcategoriesandclasses.Financeleasereceivables andliabilities,andderivativesthatqualifyforhedgeaccountingarealsoincludedalthoughtheyarenotpartofanyIAS39 measurementcategory.

Financial instruments as of Sept. 30, 2012

			Measurement in accordance with IAS 39	Measurement in accordance with IAS 17
million €	Carrying amount on balance sheet Sept. 30, 2012	5Amortized6 cost	Fair value recognized in profit or loss	Fair value recognized in equity	Amortized cost	Fair value Sept. 30, 2012
Tradeaccountsreceivable,net%excludingfinancelease&	5,123	5,123				5,123
Loansandreceivables		5,123				5,123
Financeleasereceivables	3				3	3
Otherfinancialassets	374	301	50	23		374
Loansandreceivables		251				251
Available-for-salefinancialassets		50		13		63
Derivativesthatdonotqualifyforhedgeaccounting %Financialassetsheldfortrading&			50			50
Derivativesthatqualifyforhedgeaccounting			0	10		10
Cashandcashequivalents	2,221	2,221				2,221
Loansandreceivables		2,221				2,221
Totaloffinancialassets	7,721
thereofbymeasurementcategoriesofIAS39:
Loansandreceivables	7,595	7,595				7,595
Available-for-salefinancialassets	63	50		13		63
Derivativesthatdonotqualifyforhedgeaccounting %Financialassetsheldfortrading&	50		50			50
Financialdebt%excludingfinancelease&	7,128	7,128				7,574
Financialliabilitiesmeasuredatamortizedcost		7,128				7,574
Financeleaseliabilities	57				57	57
Tradeaccountspayable	3,514	3,514				3,514
Financialliabilitiesmeasuredatamortizedcost		3,514				3,514
Otherfinancialliabilities	849	682	71	96		849
Financialliabilitiesmeasuredatamortizedcost		682				682
Derivativesthatdonotqualifyforhedgeaccounting %Financialliabilitiesheldfortrading&			71			71
Derivativesthatqualifyforhedgeaccounting			0	96		96
Totaloffinancialliabilities	11,548
thereofbymeasurementcategoriesofIAS39: Financialliabilitiesmeasuredatamortizedcost	11,324	11,324				11,770
Derivativesthatdonotqualifyforhedgeaccounting %Financialliabilitiesheldfortrading&	71		71			71

Financial instruments as of Sept. 30, 2013

			Measurement in accordance with IAS 39	Measurement in accordance with IAS 17
million €	Carrying amount on balance sheet Sept. 30, 2013	5Amortized6 cost	Fair value recognized in profit or loss	Fair value recognized in equity	Amortized cost	Fair value Sept. 30, 2013
Tradeaccountsreceivable,net%excludingfinancelease&	4,905	4,905				4,905
Loansandreceivables		4,905				4,905
Financeleasereceivables	51				51	51
Otherfinancialassets	1,519	1,454	48	17		1,519
Loansandreceivables		1,436				1,436
Available-for-salefinancialassets		18		10		28
Derivativesthatdonotqualifyforhedgeaccounting %Financialassetsheldfortrading&			48			48
Derivativesthatqualifyforhedgeaccounting			0	7		7
Cashandcashequivalents	3,813	3,813				3,813
Loansandreceivables		3,813				3,813
Totaloffinancialassets	10,288
thereofbymeasurementcategoriesofIAS39:
Loansandreceivables	10,154	10,154				10,154
Available-for-salefinancialassets	28	18		10		28
Derivativesthatdonotqualifyforhedgeaccounting %Financialassetsheldfortrading&	48		48			48
Financialdebt%excludingfinancelease&	8,813	8,813				9,154
Financialliabilitiesmeasuredatamortizedcost		8,813				9,154
Financeleaseliabilities	53				53	53
Tradeaccountspayable	3,713	3,712				3,712
Financialliabilitiesmeasuredatamortizedcost		3,712				3,712
Otherfinancialliabilities	1,244	1,009	172	62		1,243
Financialliabilitiesmeasuredatamortizedcost		1,009				1,009
Derivativesthatdonotqualifyforhedgeaccounting %Financialliabilitiesheldfortrading&			172			172
Derivativesthatqualifyforhedgeaccounting			0	62		62
Totaloffinancialliabilities	13,823
thereofbymeasurementcategoriesofIAS39:
Financialliabilitiesmeasuredatamortizedcost	13,534	13,534				13,875
Derivativesthatdonotqualifyforhedgeaccounting %Financialliabilitiesheldfortrading&	172		172			172

Thecarryingamountsoftradeaccounts receivable,othercurrent receivablesaswellascashandcashequivalentsequal theirfairvalues.Thefairvalueofloansequalsthepresentvalueofexpectedcashflowswhicharediscountedonthebasis ofinterestratesprevailingonthebalancesheetdate.

Available-for-salefinancialassetsprimarilyincludeequityanddebtinstruments.Theyareingeneralmeasuredatfairvalue, whichisbasedtotheextentavailableonmarketpricesasofthebalancesheetdate.Whennoquotedmarketpricesinan activemarketareavailableandthefairvaluecannotbereliablymeasured,equityinstrumentsaremeasuredatcost.

The fair value of foreign currency forward transactions is determined on the basis of the middle spot exchange rate applicable as ofthe balancesheet date, andtaking account offorward premiums or discounts arisingforthe respective remainingcontracttermcomparedtothecontractedforwardexchangerate.Commonmethodsforcalculatingoptionprices areusedforforeigncurrencyoptions.Thefairvalueofanoptionisinfluencednotonlybytheremainingtermofanoption, butalsobyotherfactors,suchascurrentamountandvolatilityoftheunderlyingexchangeorbaserate.

Interestrateswapsandcrosscurrencyswapsaremeasuredatfairvaluebydiscountingexpectedcashflowsonthebasisof marketinterestratesapplicablefortheremainingcontractterm.Inthecaseofcrosscurrencyswaps,theexchangeratesfor eachforeigncurrency,inwhichcashflowsoccur,arealsoincluded.

Thefairvalueofcommodityfuturesisbasedonpublishedpricequotations.Itismeasuredasofthebalancesheetdate, bothinternallyandbyexternalfinancialpartners.

Thecarryingamountsoftradeaccountsreceivableandothercurrentliabilitiesequaltheirfairvalues.Thefairvalueoffixed rateliabilitiesequalsthepresentvalueofexpectedcashflows.Discountingisbasedoninterestratesapplicableasofthe balancesheetdate.Thecarryingamountsoffloatingrateliabilitiesequaltheirfairvalues.

Financialassetsandliabilitiesmeasuredatfairvaluecouldbecategorizedinthefollowingthreelevelfairvaluehierarchy::

Fair value hierarchy as of Sept. 30, 2012

million €	Balance as of Sept. 30, 2012	Level 1	Level 2	Level 3
Financialassetsatfairvalue
Fairvaluerecognizedinprofitorloss
Derivativesthatdonotqualifyforhedgeaccounting%Financialassetsheldfortrading&	50	0	50	0
Derivativesthatqualifyforhedgeaccounting	0	0	0	0
Fairvaluerecognizedinequity
Available-for-salefinancialassets	13	11	2	0
Derivativesthatqualifyforhedgeaccounting	10	0	10	0
Total	73	11	62	0
Financialliabilitiesatfairvalue
Fairvaluerecognizedinprofitorloss
Derivativesthatdonotqualifyforhedgeaccounting%Financialassetsheldfortrading&	71	0	71	0
Derivativesthatqualifyforhedgeaccounting	0	0	0	0
Fairvaluerecognizedinequity
Derivativesthatqualifyforhedgeaccounting	96	0	96	0
Total	167	0	167	0

Fair value hierarchy as of Sept. 30, 2013

million €	Balance as of Sept. 30, 2013	Level 1	Level 2	Level 3
Financialassetsatfairvalue
Fairvaluerecognizedinprofitorloss
Derivativesthatdonotqualifyforhedgeaccounting%Financialassetsheldfortrading&	48	0	48	0
Derivativesthatqualifyforhedgeaccounting	0	0	0	0
Fairvaluerecognizedinequity
Available-for-salefinancialassets	10	8	2	0
Derivativesthatqualifyforhedgeaccounting	7	0	7	0
Total	65	8	57	0
Financialliabilitiesatfairvalue
Fairvaluerecognizedinprofitorloss
Derivativesthatdonotqualifyforhedgeaccounting%Financialassetsheldfortrading&	172	0	80	92
Derivativesthatqualifyforhedgeaccounting	0	0	0	0
Fairvaluerecognizedinequity
Derivativesthatqualifyforhedgeaccounting	62	0	62	0
Total	234	0	142	92

Thefairvaluehierarchyreflectsthesignificanceoftheinputsusedtodeterminefairvalues.Financialinstrumentswithfair value measurement based on quoted prices in activemarkets are disclosed in Level 1. In Level 2 determination of fair valuesisbasedonobservableinputs,e.g.foreignexchangerates.Level3comprisesfinancialinstrumentsforwhichthefair valuemeasurementisbasedonunobservableinputs.

Thefollowingtableshowsthereconciliationoflevel3financialinstruments:

Reconciliation level 3 financial instruments

million €
BalanceasofSept.30,2012	0
Changesrecognizedthroughprofitorloss	%94&
BalanceasofSept.30,2013	%94&

Thefinancialliability,whichis based onindividualvaluationparameters and recognized atfairvalue,comprisesafreight derivative which was valued according to the contractually agreed minimum volume on the basis of recognized hedge modelstakingintoaccountthemarketdataprevailingattheclosingdate.Theresultingincomeeffectisrecognizedinthe consolidatedstatementofincomeunder"Otherexpenses".

The followingtable shows net gains and losses fromfinancial instruments by measurement categories. Gains or losses arisingfromfinanceleaseandfromderivativesthatqualifyforhedgeaccountingarenotincluded,astheyarenotpartof anyIAS39measurementcategory.

Net gains and losses from financial instruments

million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
Loansandreceivables	251	%404&
Available-for-salefinancialassets	18	30
Derivativesthatdonotqualifyforhedgeaccounting%Financialassets/liabilitiesheldfortrading&	%42&	%91&
Financialliabilitiesmeasuredatamortizedcost	%726&	%354&

Net gains under "loans and receivables"mainly comprises interest onfinancial receivables, gains and losses onforeign currencyreceivablesandchangesinvaluationallowances.

Thecategory"available-for-salefinancialassets"mainlyincludescurrentearningsfromequityanddebtinstruments.

Gainsandlossesarisingfromchangesinfairvalueofforeigncurrency,interestrateandcommodityderivativesthatdonot complywiththehedgeaccountingrequirementsunderIAS39areincludedinthe"derivativesthatdonotqualifyforhedge accounting"category.

Thecategory"financialliabilitiesmeasuredatamortizedcost"mainlycomprisesofinterestexpensesonfinancialliabilities, gainsandlossesonforeigncurrencyliabilitiesaswellasincomeresultingfromcapitalizedborrowingcost.

Includedinnetgainsandlossesareexchangedifferencesof€5million2011/2012:€17million.

Derivative financial instruments

The Group uses various derivative financial instruments, including foreign currency forward contracts, foreign currency options, interest rate swaps, cross currency swaps and commodityforward contracts. Derivativefinancial instruments are generally usedto hedgeexisting or anticipated underlyingtransactionsso asto reduceforeigncurrency, interest rate and commoditypricerisks.

ThefollowingtableshowsthenotionalamountsandfairvaluesofderivativesusedwithintheGroup:

Derivative financial instruments

million €	Notional amount Sept. 30, 2012	Carrying amount Sept. 30, 2012	Notional amount Sept. 30, 2013	Carrying amount Sept. 30, 2013
Assets
Foreigncurrencyderivativesthatdonotqualifyforhedgeaccounting	1,594	33	2,477	36
Foreigncurrencyderivativesqualifyingascashflowhedges	50	1	106	2
Embeddedderivatives	51	1	67	3
Interestratederivativesqualifyingascashflowhedges*	172	5	224	2
Commodityderivativesthatdonotqualifyforhedgeaccounting	189	16	213	9
Commodityderivativesqualifyingascashflowhedges	32	4	31	3
Total	2,088	60	3,118	55
Liabilities
Foreigncurrencyderivativesthatdonotqualifyforhedgeaccounting	4,836	49	1,854	68
Foreigncurrencyderivativesqualifyingascashflowhedges	189	5	179	6
Embeddedderivatives	61	3	65	3
Interestratederivativesqualifyingascashflowhedges*	1,122	70	1,095	21
Commodityderivativesthatdonotqualifyforhedgeaccounting**	275	19	388	101
Commodityderivativesqualifyingascashflowhedges	176	21	157	35
Total	6,659	167	3,738	234

*inclusiveofcrosscurrencyswaps

**inclusiveoffreightderivatives

Derivatives that qualify for hedge accounting

Hedge accounting in accordance with IAS 39 is used to hedge foreign currency risks of firm commitments, future receivables and liabilities denominated in foreign currency, commodity price risks arising from sales and purchase transactions,andinterestrateandforeigncurrencyrisksfromnon-currentfinancings.

Cash flow hedges

Cashflowhedgesaremainlyusedtohedgefuturecashflowsagainstforeigncurrencyandcommodityprice risksarising fromfuturesalesandpurchasetransactionsaswellasinterestrateandforeigncurrency risksfromnon-currentliabilities. Thesederivativesaremeasuredatfairvalue,dividedintoaneffectiveandineffectiveportion.Untilrealizationofthehedged underlyingtransaction,theeffectiveportionoffluctuationsinfairvalueofthesederivativesisrecognizeddirectlyinequity inthe cumulative other comprehensive income position, whilethe ineffective portion is recognized in profit or loss. The cumulative gain or loss recognized in equity is reclassified to profit or loss in the same period during which the future underlyingtransactions hedgeditemsaffectprofitorloss.Asof30September2013,hedginginstrumentswithpositive fairvaluetotaled€7million 2012:€10millionandthosewithnegativefairvaluetotaled€62million 2012:€96million. Forthe 2012/2013fiscal year, €106million 2011/2012: €53 million beforetax in unrealized gains or losses have been recognized directly in equity in the cumulative other comprehensive income position. Cash flows from future transactionsarecurrentlyhedgedforamaximumof60months.

Duringthecurrentfiscalyear,€3million2012:€6millionofcumulativeothercomprehensiveincomewerereclassifiedto salesinprofitorlossasaresultoftheunderlyingtransactionsbeingrealizedduringtheyear.€1million2012:€0.1million thereofareincludedindiscontinuedoperations.Inaddition,€2million 2012:€125milliondecreasedcostofinventories, thereof €0 million 2012: €2 million decreased cost of inventories in discontinued operations, of cumulative other comprehensive income were reclassified to increase cost of inventories, as the hedged commodities were recognized, althoughthe underlyingtransaction had not yet beentakento profit or loss. This resulted in decreased expenses of €6 million,thereof€1millionindiscontinuedoperationsin2012/2013;inthesubsequentfiscalyearanincreaseofexpenseof €8 million of that reclassified amount is expected to impact earnings. Furthermore, €2 million 2012: €19 million of cumulative other comprehensive income were reclassified and increased cost of property, plant and equipment. This reclassificationappliesintotaltodiscontinuedoperations.Thereofincomeof€0millionimpactedearningsin2012/2013.In addition,€0millionofthatreclassifiedamountisexpectedtoimpactearningsin2013/2014and€2millioninsubsequent fiscalyears.

AsofSeptember30,2013,netincomefromtheineffective portionsof derivativesclassifiedascashflowhedgestotaled €17million2011/2012:€7million.

The cancellation of cash flow hedges during the current fiscal year resulted in earnings of €0 million 2011/2012: €0 millionduetoreclassificationfromcumulativeothercomprehensiveincome.Thesefluctuationsinfairvalueofderivatives originally recognized in equity were reclassifiedto profit or loss whenthe hedged underlyingtransaction was no longer probabletooccur.

Inthesubsequentfiscalyearfluctuationsinfairvalueofderivativesincludedincumulativeothercomprehensiveincomeas ofthereportingdateisexpectedtoimpactearningsbyincomeof€2million.Duringthe2014/2015fiscalyear,earningsare expectedtobeimpactedbyexpensesof€2million,duringthe2015/2016fiscalyearbyexpensesof€17millionandduring thefollowingfiscalyearsbyexpensesof€87million.

Fair value hedges

Fairvaluehedgesaremainlyusedtohedgetheexposuretochangesinfairvalueofafirmcommitmentandexposureto inventorypricerisksaswellastohedgeinterestraterisks.Thesecommodityandinterestratederivativesaremeasuredat fairvalue.Thecarryingamountsofthecorrespondingunderlyingtransactionsareadjustedforthechangeofthefairvalues ofthehedgedrisks.AsofSeptember30,2012and2013,respectively,thesehedginginstrumentswerenotused.

Derivates that do not qualify for hedge accounting

IfahedgingrelationshipdoesnotmeettherequirementsforhedgeaccountinginaccordancewiththeconditionsunderIAS 39orhedgeaccountingiseconomicallynotreasonable,thederivativefinancialinstrumentisrecognizedasaderivativethat doesnotqualifyforhedgeaccounting.Theresultingimpactonprofitorlossisshowninthetableonnetgainsandlosses fromfinancial instruments by measurement categories. This item also includes embedded derivatives. They exist inthe ThyssenKruppGroupinthewaythatregularsupplyandservicetransactionswithsuppliersandcustomersabroadarenot concludedinthefunctionalcurrencylocalcurrencyofeithercontractingparties.

Financial risks

ThemanagementofThyssenKruppAGhasimplementeda riskmanagementsystemthatismonitoredbytheSupervisory Board.Thegeneralconditionsforcompliancewiththerequirementsforproperandfuture-orientedriskmanagementwithin theGrouparesetoutintheriskmanagementprinciples.TheseprinciplesaimatencouragingallGroupmembersofstaffto responsiblydealwith risksaswellassupportingasustainedprocesstoimprove riskawareness.TheGroupguidelineon risk management and other Group guidelines specify risk management processes, compulsory limitations, and the applicationoffinancialinstruments.Theriskmanagementsystemaimsatidentifying,analyzing,managing,controllingand communicating risks promptlythroughouttheGroup.ThyssenKruppGroup's riskenvironment is updated at leasttwice a yearbycarryingoutariskinventoryinallGroupcompanies.Theresultsoftheriskinventoryprocessarecommunicatedto both ThyssenKruppAG's ExecutiveBoard andthe Supervisory Board's auditcommittee.Riskmanagement reporting is a continuous processandpart of regularGroup reporting.Group guidelinesand informationsystems arechecked regularly andadaptedtocurrentdevelopments.Inaddition,ourCorporateFunctionInternalAuditingregularlycheckswhetherGroup companiescomplywithriskmanagementsystemrequirements.

Being a global Group, ThyssenKrupp is exposed to credit, liquidity and market risks foreign currency, interest rate and commoditypricerisksduringthecourseofordinaryactivities.Theaimofriskmanagementistolimittherisksarisingfrom operating activities and associated financing requirements by applying selected derivate and non-derivative hedging instruments.

Credit risk 5counterparty default risk6

To the Group, financial instruments bear default risk resulting from one party's possible failure to meet its payment obligations, with the maximum default risk being equal to the positive fair value of the respective financial instrument. Duringcrises, default riskstake on greatersignificance;we aremanagingthemverycarefully by ourbusiness policy.In ordertominimizedefault risk,theThyssenKruppGrouponlyentersintofinancialinstrumentsforfinancingpurposeswith contracting parties that have a very good credit standing or are members of a deposit protection fund. For further risk minimizingtransactionsareconcludedincompliancewithspecifiedrisklimits.Intheoperativearea,receivablesanddefault risksaremonitoredbyGroupcompaniesonanongoingbasisandpartiallycoveredbymerchandisecreditinsurance.Risks arisingfromthedeliveryofgoodstomajorcustomersaresubjecttoaspecialcreditwatch.Inaddition,lettersofcreditand indemnitybondsareusedtohedgereceivablesfrommajorcustomers.However,receivablesfromthesecontractingparties do not reach levelsthatwould result in extraordinary risk concentrations. Default risk istaken into account by valuation allowances.

Liquidity risk

LiquidityriskistheriskthattheGroupisunabletomeetitsexistingorfutureobligationsduetoinsufficientavailabilityof cash or cash equivalents. Managing liquidity risk, and therefore allocating resources and hedging the Group's financial independence,aresomeofthecentraltasksofThyssenKruppAG.InordertobeabletoensuretheGroup'ssolvencyand financialflexibilityatalltimes,long-termcreditlimitsandcashandcashequivalentsarereservedonthebasisofperennial financial planning and monthly rolling liquidity planning. Cash pooling and external financing focus primarily on ThyssenKrupp AG and specific financing companies. Despite the partially still difficult market environment as a consequenceoftheongoingdebtcrisisofsomecountries,ourfinancingisalsosecuredforthenextfiscalyear.

Thegearinglimitof150%agreedinsomecreditagreementswasthereforeexceededasofSeptember30,2013.However, agreements had previously been reached with the financial partners involved to waive the gearing covenant test at September 30, 2013, so the financial instruments remain available after September 30, 2013 despite the gearing limit beingtemporarilyexceeded.

Cash pooling and external financing focus primarily on ThyssenKrupp AG and specific financing companies. Funds are providedinternallytoGroupcompaniesaccordingtoneed.

Thefollowingtableshowsfutureundiscountedcashoutflowsfromfinancialliabilitiesbasedoncontractualagreements:

million
€ Carrying amount Sept.
30,
2012 Cash
flows in 2012/2013 Cash
flows in 2013/2014 Cash
flows between 2014/2015 and 2016/2017 Cash
flows after 2016/2017 Bonds 4,984 1,320 1,253 3,367 0 Liabilitiestofinancialinstitutions 1,212 712 485 110 1 Financeleaseliabilities 57 17 10 25 32 Otherfinancialdebt 932 308 194 437 150 Tradeaccountspayable 3,514 3,441 66 6 1 Derivativefinancialliabilitiesthatdonotqualifyforhedgeaccounting 71 60 5 6 0 Derivativefinancialliabilitiesthatqualifyforhedgeaccounting 96 17 28 58 0 Otherfinancialliabilities 682 666 13 2 1

Future undiscounted cash outflows as of Sept. 30, 2012

169 Consolidated financial statements Notestotheconsolidatedfinancialstatements

Future undiscounted cash outflows as of Sept. 30, 2013

million €	Carrying amount Sept. 30, 2013	Cash flows in 2013/2014	Cash flows in 2014/2015	Cash flows between 2015/2016 and 2017/2018	Cash flows after 2017/2018
Bonds	5,582	1,329	987	4,236	0
Liabilitiestofinancialinstitutions	2,407	727	317	1,008	749
Financeleaseliabilities	53	13	15	20	28
Otherfinancialdebt	824	306	26	476	145
Tradeaccountspayable	3,712	3,482	221	9	0
Derivativefinancialliabilitiesthatdonotqualifyforhedgeaccounting	172	89	15	37	36
Derivativefinancialliabilitiesthatqualifyforhedgeaccounting	62	19	14	34	0
Otherfinancialliabilities	1,009	984	22	3	0

Cashflowsfromderivativesareoffsetbycashflowsfromhedgedunderlyingtransactions,whichhavenotbeenconsidered inthe analysis ofmaturities.Ifcashflowsfromthehedgedunderlyingtransactionswere alsoconsidered,thecashflows showninthetablewouldbeaccordinglylower.

Market risks

Marketriskistheriskthatfairvaluesorfuturecashflowsofnon-derivativeorderivativefinancialinstrumentswillfluctuate duetochangesinriskfactors.AmongmarketrisksrelevanttoThyssenKruppareforeigncurrency,interestrate,commodity price,andespeciallyrawmaterialpricerisks.Associatedwiththeserisksarefluctuationsinincome,equityandcashflow. Theobjective of riskmanagementistoeliminate or limitemerging risks bytakingappropriate precautions,especially by applyingderivatives.Theapplicationofderivativesissubjecttostrictcontrolssetuponthebasisofguidelinesaspartof regularreporting.TheGroupprimarilyconcludesover-the-counterOTCforwardforeigncurrencytransactions,interestrate swaps,crosscurrencyderivativesandcommodityforwardcontractswithbanksandtradingpartners.Inaddition,exchangetradedfuturesareusedtohedgecommodityprices.

Thefollowing analysis and amounts determined bymeans of sensitivity analyses represent hypothetical,future-oriented datathat can differfrom actual outcomes because of unforeseeable developments infinancial markets.Moreover, nonfinancialornon-quantifiablerisks,suchasbusinessrisks,arenotconsideredhere.

Foreign currency risk exposures

Theinternationalnatureofourbusinessactivitiesgeneratesnumerouscashflowsindifferentcurrencies–especiallyinUS dollars.Hedgingtheresultingcurrencyriskexposuresisanessentialpartofourriskmanagement.

Group-wide regulationsformthe basisfor ThyssenKruppGroup's currencymanagement. Principally, all groupcompanies are obligedtohedgeforeigncurrency positionsatthetime of inception.Affiliatedcompanies basedintheEuro zoneare obligedtosubmitallunhedgedpositionsfromtradeactivitiesinmajortransactioncurrenciestoacentralclearingoffice. Dependingonthederivatives'hedgingpurposeandresultingaccountingtreatment,theofferedpositionsareeitherhedged underaportfoliohedgeapproachordirectlyhedgedwithbanksonaback-to-backbasistakingintoaccounttherespective maturity.Financialtransactionsandthetransactions undertaken by oursubsidiaries outsidetheEurozonearehedgedin closecooperationwithcentralGroupmanagement.CompliancewiththeGroup's requirements is regularlyascertained by ourCorporateFunctionInternalAuditing.

Foreigncurrencyhedgingisusedtofixpricesonthebasisofhedgingratesasprotectionagainstanyunfavorableexchange rate fluctuations in the future. When hedging anticipated production-related ore, coal and coke purchases, favorable developmentsintheEuro/USdollarexchangeratearealsosystematicallyexploited.

Hedging periods are generally based on the maturities of underlying transactions. Foreign currency derivative contracts usuallyhavematuritiesoftwelvemonthsorless,butcanalsobeupto60monthsinsingleexceptionalcases.Thehedging periodsforforecastedore,coalandcokepurchaseshavebeenestablishedonthebasisofatheoreticalfairexchangerate basedonpurchasingpowerparityandthemarginoffluctuationbetweentheUSdollarandtheEurobasedonhistorical data.In accordancewith aset pattern, purchasesforecastedfor a specific period are hedgedwhenever defined hedging ratesarereached.

TheUSdollaristheonlyrelevantriskvariableforsensitivityanalysesunderIFRS7,asthevastmajorityofforeigncurrency cashflows occurs in US dollars. As hedgingtransactions are generally usedto hedge underlyingtransactions, opposite effects in underlying and hedging transactions are almost entirely offset over the total period. Thus, the currency risk exposure describedhere resultsfrom hedging relationshipswith off-balancesheetunderlyingtransactions,i.e.hedges of firmcommitmentsandforecastedsales.Basedonouranalysis,theUSdollarexposureasofSeptember30,2013wasas follows:

IftheEurohadbeen10%strongeragainsttheUSdollarasofSeptember30,2013,thehedge reserveinequityandfair value of hedging transactions would have been €16 million 2012: €2 million lower and earnings resulting from the measurementasofthebalancesheetdate€138million2011/2012:€68millionhigher.IftheEurohadbeen10%weaker againsttheUSdollarasofSeptember30,2013,thehedgereserveinequityandfairvalueofhedgingtransactionswould havebeen€19million2012:€2millionhigherandearningsresultingfromthemeasurementasofthebalancesheetdate €172million2011/2012:€81millionlower.

Interest rate risk

DuetotheinternationalfocusofThyssenKrupp'sbusinessactivities,theGroupprocuresliquiditytocoveritsfinancialneeds in international money and capital markets in different currencies and with various maturities. Some of the resulting financial debt and financial investments are exposedto interest rate risk. The Group's central interest rate management managesandoptimizesinterestraterisk.Thisincludesregularinterestanalyses.Insomecases,theGroupusesderivatives tohedgeinterest rate risk.Theseinstrumentsare contractedwiththeobjective ofminimizinginterest ratevolatilitiesand financecostsforunderlyingtransactions.

AsofSeptember30,2012and2013,respectively,allinterestderivativesareimmediatelyanddirectlyallocatedtoparticular financings as cash flow hedges. Consequently, as of the balance sheet dates all interest derivatives qualify for hedge accounting.

CrosscurrencyswapshavebeencontractedinconnectionwiththeUSdollarfinancingactivities.

Interestrateinstrumentscanresultincashflowrisks,opportunityeffects,aswellasinterestraterisksaffectingthebalance sheetandearnings.Refinancingandvariable-ratefinancialinstrumentsaresubjecttocashflow riskwhichexpressesthe uncertaintyoffutureinterestpayments.Cashflowriskismeasuredbymeansofcashflowsensitivity.Opportunityeffects arisefromnon-derivatives,asthesearemeasuredatamortizedcostratherthanfairvalue,incontrasttointerestderivatives. Thisdifference,theso-calledopportunityeffect,affectsneitherthebalancesheetnorthestatementofincome.On-balance sheetinterestraterisksaffectingequityresultfromthemeasurementofinterestderivativesqualifyingascashflowhedges. Interestraterisksaffectingearningsarisefromtheremaininginterestratederivativesnotqualifyingforhedgeaccounting. Opportunityeffectsandinterestraterisksaffectingthebalancesheetandearningsaredeterminedbycalculatingfairvalue sensitivityanalysesandchanges.

As ofSeptember 30, 2013, a +100/20 basis point parallelshift inyieldcurves is assumedfor all currencies in interest analyses.Infiscalyear2008/2009theparallel downwardshiftwas reducedto 20 basispointstoconsiderthe reduced interestlevelasaresultofthefinancialcrisisandtoavoidnegativeinterestrates.Duetothestillrelativelylowinterestlevel thisapproachisalsomaintainedforthecurrentanalysis.Theanalysisresultsintheopportunitiespositivevaluesandrisks negativevaluesshowninthefollowingtable:

Interest
analysis
as
of
Sept.
30,
2013

	Changes in all yield curves as of Sept. 30, 2013 by
million €	+ 100 basis points	5206 basis points
Cashflowrisk	19	%4&
Opportunityeffects	201	%42&
Interestraterisksresultingfrominterestratederivativesaffectingbalancesheet	%3&	1
Interestraterisksresultingfrominterestratederivativesaffectingearnings	0	0

Inthe previous yearthe analysis resulted inthe opportunities positive values and risks negative valuesshown inthe followingtable:

Interest analysis as of Sept. 30, 2012

	Changes in all yield curves as of Sept. 30, 2012 by
million €	+ 100 basis points	5206 basis points
Cashflowrisk	7	%1&
Opportunityeffects	179	%37&
Interestraterisksresultingfrominterestratederivativesaffectingbalancesheet	1	0
Interestraterisksresultingfrominterestratederivativesaffectingearnings	0	0

If,asofSeptember30,2013,allyieldcurvescombinedhadbeen100basispointshigher,thehedgereserveinequityand fair value of the relevant interest derivatives would have been €3 million lower 2012: €1 million higher and earnings resulting from the measurement as of the balance sheet date €19 million 2011/2012: €7 million higher. If, as of September30,2013,allyieldcurvescombinedhadbeen20basispointslower,thehedgereserveinequityandfairvalueof the relevant interest derivatives would have been €1 million 2012: €0 million higher and earnings resulting from the measurementasofthebalancesheetdate€4million2011/2012:€1millionlower.

Commodity price risks

TheGroupusesvariousnonferrousmetals,especiallynickel,aswellascommoditiessuchasore,coal,cokeandenergy,for different production processes. Furthermore extensive additional freight capacities are needed. Purchase prices for commodities,energyandfreightcapacitycanvarysignificantlydependingonmarketconditions.

Thiscausescommoditypriceriskswhichcanaffectincome,equityandcashflow.Wereactwithadjustedsellingpricesand alternativepurchasingresourcestoensureourcompetitiveness.Tominimizerisksarisingfromcommoditypricevolatilities, theGroupalso uses derivatives,especiallyforcopper,tin and aluminium. Thecontracting ofsuchfinancialderivativesis subject to strict guidelines which are checked for compliance by internal auditing. The nonferrous metals are generally hedged by a central system. Only marketable instruments are used, as there are mainly commodity forward contracts. Commodityforwardcontractsaremeasuredatfairvalue.Fluctuationsinfairvaluearerecognizedpredominatelyinprofitor lossundersalesrevenueorcostofsales.Sometimescashflowhedgeaccountingisusedwhencommodityderivativesare immediatelyanddirectlyallocatedtoaparticularfirmcommitment.Insomecases,fairvaluehedgesareusedtohedgethe exposuretochangesinfairvalueofafirmcommitmentandexposuretoinventorypricerisks.

Risksresultingfromrisingenergypricesarelimitedbystructuringprocurementontheelectricitymarketandconcludingor extendinglong-termnaturalgascontracts.Thesecontractsaresubjecttotheso-called"ownuseexemption"andtherefore notcarriedasderivatives.

To minimizethe risk offluctuatingfreight prices,the Group uses among otherthings long-termfixedprice contracts, of whichonecontractisrecognizedasacommodityforwardtransactionmeasuredatfairvalue.

Only hypothetical changes in market prices for derivatives are included in scenario analysis, required for financial instrumentsunderIFRS7.Offsettingeffectsfromunderlyingtransactionsarenottakenintoaccountandwouldreducetheir effectsignificantly.

As ofSeptember30,2013a+20/20%shiftinmarketpricesfor non-ferrousmetalsandfreight ratesisassumed.Ifan increase of 20% in market prices for said non-ferrous metals and freight rates is assumed, the estimated hypothetical impact on profit or loss resulting from the measurement as of the balance sheet date is €13 million 2011/2012: €2 million,andonequity€7million2012:€12million.Ifadecreaseof20%inmarketpricesforsaidnon-ferrousmetalsand freight rates is assumed, the estimated hypothetical impact on profit or loss resulting from the measurement as of the balancesheetdateis€13million2011/2012:€31million,andonequity€2million2012:€7million.

23 Relatedparties

Based onthe notification received in accordance with German Securities Trade Act WpHG Art. 21 as of December 21, 2006,theAlfriedKruppvonBohlenundHalbachFoundationholdsaninterestof25.10%inThyssenKruppAG;basedona voluntarynotificationoftheFoundationasofOctober02,2012,theinterestinThyssenKruppAGamountsto25.33%asof September 30, 2012. Outside the services and considerations provided for in the by-laws Article 21 of the Articles of AssociationofThyssenKruppAG,therearenoothersignificantdeliveryandservicerelations.

In2011/2012 and2012/2013,theGrouphas businessrelationswithnon-consolidatedsubsidiaries,associatesandjoint ventures. Transactionswiththese related parties result in generalfromthe delivery and service relations inthe ordinary courseofbusiness;theextentofthebusinessrelationsispresentedinthefollowingtable:

Related party transactions

	Sales		Supplies and services		Receivables		Payables
million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013	Sept. 30, 2012	Sept. 30, 2013	Sept. 30, 2012	Sept. 30, 2013
Non-consolidatedsubsidiaries	0	1	0	0	1	1	1	1
Associates	53	20	41	245	0	1,282	2	23
Jointventures	375	443	1,786	1,530	3	2	1	314

As ofSeptember30,2013 receivablesfromassociatedcompaniesincludeafinancial receivablefromOutokumpuwitha currentvalueof€969millionandanoriginalmaximumtermofnineyears.Underthetermsofthepurchaseagreementthe financial receivablecan be adjusted by amaximum €200millionto accountfor any negativefinancialconsequencesfor Outokumpu undermerger control requirements;forthis purpose risk precautionexists.Receivablesfrom associates also contain a €250million receivablefromOutokumpu under a credit linewith amaximumterm uptotheend of December 2013.InadditionThyssenKruppgrantedOutokumpuasupplierfinancebackupfacilityintheamountof€82million,which wasnotdrawnatSeptember30,2013.InadditiontheGrouphascontingentliabilitiesforOutokumpuintheamountof€74 millionwhicharecontainedinthecontingentliabilitiesofassociatesdisclosedinNote21.SeealsoinNote36subsequent events.

Compensation of current Executive and Supervisory Board members

TheGroup'skeymanagementpersonnelcompensationwhichhastobedisclosedinaccordancewithIAS24comprisesof thecompensationofthecurrentExecutiveandSupervisoryBoardmembers.

CompensationofthecurrentExecutiveBoardmembersisasfollows:

Compensation of Executive Board members

Thousand €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
Short-termbenefits%withoutshare-basedcompensation&	8,434	9,071
Post-employmentbenefits	3,271	21,132
Severancepaymentsinthecontextoftermination	0	10,494
Share-basedcompensation	5,528	5,354
Total	17,233	46,051

ServicecostandpastservicecostresultingfromthepensionobligationsofthecurrentmembersoftheExecutiveBoardare disclosedaspost-employmentbenefits.Thedisclosureofshare-basedcompensationreferstothefairvalueatgrantdate.

In addition, in fiscal year 2012/2013, the Executive Board members did not receive any payments from share-based compensation 2011/2012: €0 million with the exemption of the Executive board members severance agreements had beenfixedwith.

As of September 30, 2012 and 2013, respectively, no loans or advance payments were granted to members of the ExecutiveBoard;alsoasinthepreviousyearnocontingencieswereassumedforthebenefitofExecutiveBoardmembers.

CompensationofthecurrentSupervisoryBoardmembersisasfollows:

Compensation of Supervisory Board members

Thousand €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
Short-termbenefits	1,495	1,552
Long-termbenefits	0	0

In addition, members of the Supervisory Board of ThyssenKrupp AG received compensation of €79 thousand in fiscal 2012/20132011/2012:€82thousandforsupervisoryboardmandatesatGroupsubsidiaries.

As of September 30, 2012 and 2013, respectively, no loans or advance payments were granted to members of the Supervisory Board; also as in the previous year no contingencies were assumed for the benefit of Supervisory Board members.

For individualized presentation and further details of Executive and Supervisory Board compensation refer to the presentationoftheauditedcompensationreportwhichispartofthe"CorporateGovernance"chapteroftheannualreport.

Compensation of former Executive and Supervisory Board members

Total compensation paidtoformer members ofthe Executive Board andtheir surviving dependants amountedto €15.1 million 2011/2012:€15.0million.UnderIFRSanamountof€248.7million 2012:€214.4millionisaccruedforpension obligationsbenefitingformerExecutiveBoardmembersandtheirsurvivingdependants.

FormerSupervisoryBoardmemberswholefttheSupervisoryBoardpriortoOctober01,2012didnotreceiveanypayment fromthelong-termcompensationcomponentin2012/20132011/2012:€0million.

24 Segmentreporting

Following the combination of the former Plant Technology and Marine Systems business areas into the new Industrial SolutionsbusinessareaeffectiveJanuary01,2013,ThyssenKruppisorganizedinthefollowingoperatingbusinessareas thatrepresenttheGroup'sactivitieswithincapitalgoodsandmaterials.Prioryearfigureshavebeenadjustedaccordingly. The business areas are in line with the internal organizational and reporting structure and represent the segments in accordancewithIFRS8.TheStainlessGlobalbusinessareaisclassifiedasdiscontinuedoperation.

Components Technology

Thisbusinessareaoffersefficientandinnovativecomponentsfortheautomotive,constructionandengineeringsectorsas wellasforwindturbines.

Elevator Technology

This businessareaisactiveintheconstruction,modernizationandservicing ofelevators,escalators,movingwalks,stair andplatformliftsaswellaspassengerboardingbridges.Alongsideafullrangeofinstallationsforthevolumemarket,the businessareaalsodeliverscustomizedsolutions.

Industrial Solutions

Industrial Solutions is a leading international supplier in special and large-scale plant construction as well as naval shipbuilding.

Materials Services

Thebusinessareaisfocusedontheglobaldistributionofmaterialsandtheprovisionofcomplextechnicalservicesforthe productionandmanufacturingsectors.

Steel Europe

This business area bringstogetherthe premiumflatcarbonsteel activities,from intelligentmaterialsolutionstofinished parts.

Steel Americas

This business area includesthe production, processing andmarketing of high-quality steel products in North and South America.ItcontainsmainlythesteelmakingandprocessingplantsinBrazilandUSA.

Corporate

CorporatecomprisestheGroup'sheadofficeandthesharedservicesactivitiesthatincludesBusinessServicesfinanceand human resources, IT and Real Estate including non-operating real estate. In addition, part of Corporate are inactive companiesthatcouldnotbeassignedtoanindividualbusinessarea.

CorporateEBITconsistsof:

EBIT Corporate

million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
Corporateadministration	%377&	%354&
Pensionexpenses	%23&	%28&
R&Dpromotion	%7&	%6&
Riskandinsuranceservices	6	6
Otheritems	%9&	%67&
OtherCorporatecompanies	%2&	%10&
EBITCorporateHeadquarter	%412&	%459&
EBITBusinessServices	%17&	%19&
EBITIT-Services	%11&	%8&
EBITRealEstate	%55&	%14&
EBITCorporate	%495&	%500&

Stainless Global

Thisbusinessareaisasupplierofflatstainlesssteelproductsandhighperformancematerialssuchasnickelalloysand titanium. The business area also includes the new stainless steel mill in the USA. This segment was classified as a discontinuedoperationuntilitsdisposalasofDecember28,2012.

Consolidation

Consolidationessentiallycontainstheeliminationofintercompany profitsininventoriesandthe reversal ofintercompany interestincome.

TheaccountingprinciplesforthesegmentsarethesameasthosedescribedfortheGroupinthesummaryofsignificant accounting principles.Inaccordancewiththemanagementapproachwhichisapplicabletosegment reportingallfigures presentedareinclusiveofdisposalgroupsanddiscontinuedoperations.

ThyssenKrupp'skeyearningsperformanceindicatorisEBIT.EBITcannotbetakendirectlyfromtheconsolidatedstatement ofincomepreparedinaccordancewiththeIFRSrules.FactorsthatcanonlybeoptimizedandassessesatGrouplevel–in particularnon-operatingfinancialincome/expenseandincometaxes–aredisregardedinassessingoperatingunits.EBIT containsonlycomponentsoffinancialincome/expensethatareoperationalinnature.Financeincomeandfinanceexpenses areingeneralnon-operationalincharacter;anexemptionisincomeandexpensefrominvestments.The29.9%interestin Outokumpu now held by ThyssenKrupp following the sale of Stainless Global, which is accounted for using the equity method,isreportedunderCorporateasafinancialinterestduetoitsnon-operatingnatureandtheincome/expenseisnot includedinEBIT.FurthermoreinEBITit'stakenintoaccountthefactthatthereceiptofadvancepayments,particularyinthe segments with long-term construction contracts, is an integral part of risk management and of operation business. To recognizetheseadvancepayments,andtheinterestandfinancingeffectsattainablewiththem,inourvaluemanagement, theEBIToftherelevantsegmentisincreasedbyaninputedearningscontribution.

Inter-segmentpricingisdeterminedonanarm'slengthbasis.

Segment information for the year ending Sept. 30, 2012

Forthefiscalyear endedSept.30,2012 6,998 5,704 5,239 12,707 9,077 1,513 68 5,739 0 47,045 Externalsales Internalsales 13 1 18 458 1,915 501 90 607 %3,603& 0 withintheGroup 7,011 5,705 5,257 13,165 10,992 2,014 158 6,346 %3,603& 47,045 Totalsales Incomefromcompanies accountedforusingthe %1& 1 10 %17& 49 0 0 4 0 46 equitymethod Aggregateinvestmentin investeesaccountedfor 14 3 178 48 392 0 12 19 0 666 usingtheequitymethod 71 64 131 123 13 4 536 26 %714& 254 Interestincome %81& %29& %54& %120& %84& %187& %968& %113& 714 %922& Interestexpense 681 387 506 127 188 %4,747& %495& %626& %391& %4,370& EBIT 453 587 689 311 247 %1,010& %487& %80& %392& 318 AdjustedEBIT 5,659 6,318 10,736 9,052 8,014 5,443 16,550 4,552 %28,040& 38,284 Segmentassets Depreciationand 297 81 60 95 478 404 41 0 %8& 1,448 amortizationexpense Impairmentlossesof intangibleassets,property, plantandequipmentand 152 72 157 12 0 3,645 5 450 0 4,493 investmentproperty Impairmentlossesof investmentsaccountedfor usingtheequitymethod 0 0 7 5 0 0 0 0 0 12 andoffinancialassets Reversalsofimpairment lossesofintangibleassets, property,plantand equipmentand 1 1 0 0 0 0 1 0 0 3 investmentproperty Reversalsofimpairment lossesofinvestments accountedforusingthe equitymethodandof 0 0 0 0 0 0 0 0 0 0 financialassets 3,606 3,580 8,616 5,266 4,570 6,038 24,809 5,248 %27,975& 33,758 Segmentliabilities %86& %215& %60& %67& %52& 1 %67& %93& %13& %652& Significantnon-cashitems Capitalexpenditures %intangibleassets, property,plant, equipmentand 420 136 69 91 465 515 5 411 %5& 2,107 investmentproperty&	million €	Components Technology	Elevator Technology	Industrial Solutions	Materials Services	Steel Europe	Steel Americas	Corporate	Stainless Global*	Konsoli dierung	Group

*Discontinuedoperation

Segment information for the year ending Sept. 30, 2013

million €	Components Technology	Elevator Technology	Industrial Solutions	Materials Services	Steel Europe	Steel Americas	Corporate	Stainless Global*	Konsoli dierung	Group
Forthefiscalyear endedSept.30,2013
Externalsales	5,702	6,151	5,626	11,385	7,911	1,673	66	1,268	0	39,782
Internalsales
withintheGroup	10	4	15	315	1,709	194	124	134	%2,505&	0
Totalsales	5,712	6,155	5,641	11,700	9,620	1,867	190	1,402	%2,505&	39,782
Incomefromcompanies accountedforusingthe equitymethod	0	1	4	5	53	0	%175&	1	0	%111&
Aggregateinvestmentin investeesaccountedfor
usingtheequitymethod	14	4	163	46	404	0	318	0	0	949
Interestincome	53	62	98	69	13	2	533	1	%552&	279
Interestexpense	%76&	%31&	%47&	%100&	%63&	%216&	%829&	%46&	552	%856&
EBIT	173	611	658	%6&	62	%1,180&	%500&	57	%413&	%538&
AdjustedEBIT	244	675	640	236	143	%495&	%425&	%68&	%419&	531
Segmentassets	5,552	6,864	11,124	8,960	7,589	3,998	18,045	52	%26,880&	35,304
Depreciationand
amortizationexpense	264	80	60	90	441	136	40	0	%7&	1,104
Impairmentlossesof intangibleassets,property, plantandequipmentand
investmentproperty	44	9	0	0	18	586	3	2	0	662
Impairmentlossesof investmentsaccountedfor usingtheequitymethod
andoffinancialassets	0	0	0	14	0	0	279	0	0	293
Reversalsofimpairment lossesofintangibleassets, property,plantand equipmentand
investmentproperty	1	1	0	2	0	0	0	0	0	4
Segmentliabilities	3,526	4,284	9,290	5,260	4,450	5,639	26,908	0	%26,564&	32,793
Significantnon-cashitems	%115&	%160&	%125&	%183&	%227&	3	%80&	%10&	0	%897&
Capitalexpenditures %intangibleassets, property,plant,
equipmentand investmentproperty&	389	105	63	77	372	170	60	99	0	1,335

*Discontinuedoperation

Thereconciliationsofsales,incomefromcompaniesaccountedforusingtheequitymethodandofEBITtoEBTaccordingto thestatement of income aswell as of interest income and interestexpensetothe corresponding amounts ofcontinuing operationsarepresentedbelow:

Reconciliation of sales

million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
Salesaspresentedinsegmentreporting	47,045	39,782
-SalesofStainlessGlobal	%6,346&	%1,402&
+SalesofdiscontinuedoperationtoGroupcompanies	607	134
+SalesofGroupcompaniestodiscontinuedoperation	230	45
Salesaspresentedinthestatementofincome	41,536	38,559

Sales inthe amount of €45million 2011/2012: €230million resultfromsales ofGroup companiesto StainlessGlobal. Thesebusinessrelationshipsshallalsobecontinuedafterthedisposal.TheymainlyrelatetoservicesprovidedbytheSteel EuropebusinessareatoStainlessGlobal.

Reconciliation of income from companies accounted for using the equity method

million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
Incomefromcompaniesaccountedforusingtheequitymethodaspresentedinsegmentreporting	46	%111&
-IncomeformcompaniesaccountedforusingtheequitymethodofStainlessGlobal	%4&	%1&
Incomefromcompaniesaccountedforusingtheequitymethodaspresentedinthestatementofincome	42	%112&

Reconciliation of interest income

million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
Interestincomeaspresentedinsegmentreporting	254	279
-InterestincomeofStainlessGlobal	%26&	%1&
Consolidation	26	0
Interestincomeofcontinuingoperations	254	278

Reconciliation of interest expense

	Year ended	Year ended
million €	Sept. 30, 2012	Sept. 30, 2013
Interestexpenseaspresentedinsegmentreporting	%922&	%856&
-InterestexpenseofStainlessGlobal	113	46
Consolidation	%109&	%43&
Interestexpenseofcontinuingoperations	%918&	%853&

Reconciliation of EBIT to EBT

million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
AdjustedEBITaspresentedinsegmentreporting	318	531
Specialitems	%4,688&	%1,069&
EBITaspresentedinsegmentreporting	%4,370&	%538&
-DepreciationofcapitalizedborrowingcostseliminatedinEBIT	%41&	%20&
+Non-operatingincome/%expense&fromcompaniesaccountedforusingtheequitymethod	0	%175&
+Financeincome	792	628
-Financeexpense	%1,429&	%1,470&
-ItemsoffinanceincomeassignedtoEBITbasedoneconomicclassification	%46&	%22&
+ItemsoffinanceexpenseassignedtoEBITbasedoneconomicclassification	27	7
EBT-Group	%5,067&	%1,590&
-EBTStainlessGlobal	653	%58&
EBTaspresentedinthestatementofincome	%4,414&	%1,648&

The aggregate investment in investees accounted for using the equity method reconciles to the aggregate amount accordingtothestatementoffinancialpositionaspresentedbelow:

Reconciliation investment in investees accounted for using the equity method

million €	Year ended Sept. 30, 2012	Year ended Sept. 30, 2013
Aggregateinvestmentininvesteesaccountedforusingtheequitymethodaspresentedinsegmentreporting	666	949
-aggregateinvestmentininvesteesaccountedforusingtheequitymethodthatareheldforsale	%19&	0
Aggregateinvestmentininvesteesaccountedforusingtheequitymethodaspresentedinthestatementoffinancial position	647	949

Inpresentinginformationforgeographicalareas,allocationofsalesisbasedonthelocationofthecustomer.Allocationof segmentassetsandcapitalexpendituresisbasedonthelocationoftheassets.Capitalexpendituresarepresentedinline withthedefinitionofthecashflowstatement.

Duetothehighvolumeofcustomersandthevarietyofbusinessactivities,therearenoindividualcustomersthatgenerate salesvaluesthatarematerialtotheGroup'sconsolidatednetsales.

External
sales
by
regions*

million €	Germany	USA	Other countries	Group
Externalsales%locationofthecustomer&
YearendedSept.30,2012	14,413	7,861	24,771	47,045
YearendedSept.30,2013	12,168	6,253	21,361	39,782

*inclusiveofdiscontinuedoperation

Non-current assets by regions*

million €	Germany	USA	Brasil	Other countries	Group
Non-currentassets%intangibleassets,property,plantand equipment,investmentpropertyandothernon-financialassets& %locationoftheassets&
Sept.30,2012	6,468	3,355	2,460	3,677	15,960
Sept.30,2013	6,160	2,289	2,013	2,715	13,177

*inclusiveofdisposalgroups

25 Accountingestimatesandjudgements

The preparation ofthe Group's consolidatedfinancial statements requires management estimates and assumptionsthat affect reported amounts and related disclosures. All estimates and assumptions aremadetothe best ofmanagement's knowledge and belief in order to fairly present the Groups financial position and results of operations. The following accountingpoliciesaresignificantlyimpactedbymanagement'sestimatesandjudgements.

Business combinations

As a result of acquisitionstheGroup recognized goodwill in its balancesheet.In a business combination, all identifiable assets,liabilitiesandcontingentliabilitiesacquiredarerecordedatthedateofacquisitionattheirrespectivefairvalue.One ofthemostsignificantestimatesrelatestothedeterminationofthefairvalueoftheseassetandliabilities.Land,buildings andequipmentareusuallyindependentlyappraisedwhilemarketablesecuritiesarevaluedatmarketprice.Ifanyintangible assetsareidentified,dependingonthetypeofintangibleassetandthecomplexityofdeterminingitsfairvalue,theGroup either consults with an independent external valuation expert or developsthe fair value internally, using an appropriate valuationtechniquewhichisgenerallybasedonaforecastofthetotalexpectedfuturenetcashflows.Theseevaluations arelinkedcloselytotheassumptionsmadebymanagementregardingthefutureperformanceoftheassetsconcernedand anychangesinthediscountrateapplied.

Goodwill

As stated in the accounting policy in Note 01, the Group tests annually and in addition if any indicators exist, whether goodwillhassufferedanimpairment.Ifthereisanindication,therecoverableamountofthecash-generatingunithastobe estimatedwhichisthegreaterofthefairvaluelesscoststosellandthevalueinuse.Thedeterminationofthevalueinuse involvesmakingadjustmentsandestimates relatedtotheprojectionand discounting offuturecashflows seeNote04. Althoughmanagement believesthe assumptions usedtocalculate recoverable amounts are appropriate, any unforeseen changes in these assumptions could result in impairment charges to goodwill which could adversely affect the future financialpositionandoperatingresults.

Recoverability of assets

Ateachbalancesheetdate,theGroupassesseswhetherthereisanyindicationthatthecarryingamountsofitsproperty, plant and equipment, investment property or intangible assets may be impaired. If any such indication exists, the recoverableamountoftheassetisestimated.Therecoverableamountisthegreaterofthefairvaluelesscoststoselland thevalueinuse.Inassessingthevalueinuse,discountedfuturecashflowsfromtherelatedassetshavetobedetermined. Estimatingthediscountedfuturecashflowsinvolvessignificantassumptions,includingparticularlythoseregardingfuture salepricesandsalevolumes,costsanddiscount rates.Althoughmanagement believesthatitsestimates ofthe relevant expectedusefullives,itsassumptionsconcerningtheeconomicenvironmentanddevelopmentsintheindustriesinwhich theGroupoperatesanditsestimationsofthediscountedfuturecashflowsareappropriate,changesintheassumptionsor circumstancescould requirechangesintheanalysis.Thiscouldleadtoadditionalimpairmentchargesinthefuture orto reversalofimpairmentsifthetrendsidentifiedbymanagementreverseortheassumptionsorestimatesproveincorrect.

Other provisions

Therecognitionandmeasurementofotherprovisionsarebasedontheestimationoftheprobabilityofafutureoutflowof resourcesaswellasempiricalvaluesandthecircumstancesknownatthereportingdate.Thismeansthattheactuallater outflowofresourcesmaydifferfromtheotherprovisions,seealsotheremarksunderNote16.

Measurement of single assets held for sale, disposal groups and discontinued operations

Singleassetsheldforsaleaswellasdisposalgroupsanddiscontinuedoperationsaremeasuredatfairvaluelesscoststo sell. The determination offairvaluelesscoststosellcan be based onestimationsand assumptionsofthemanagement thatcarryacertaindegreeofuncertainty.TheassumptionsusedaredescribedinNote03.

Revenue recognition on construction contracts

CertainGroupentities,particularlyintheElevatorTechnologyandIndustrialSolutionsbusinessareas,conductaportionof their business under construction contracts which are accounted for using the percentage-of-completion method, recognizingrevenueasperformanceonthecontractprogresses.Thismethodrequiresaccurateestimatesoftheextentof progress towards completion. Depending on the methodology to determine contract progress, the significant estimates includetotalcontract costs, remainingcoststocompletion,total contract revenues,contract risks and otherjudgements. Themanagementsoftheoperatingcompaniescontinuallyreviewallestimatesinvolvedinsuchconstructioncontractsand adjustthemasnecessary.

Income taxes

TheGroupoperatesandearnsincomeinnumerouscountriesandissubjecttochangingtaxlawsinmultiplejurisdictions withinthe countries. Significant judgements are necessary in determiningthe worldwide incometax liabilities. Although management believes they have made reasonable estimates about the ultimate resolution of tax uncertainties, no assurancecanbegiventhatthefinaltaxoutcomeofthesematterswillbeconsistentwithwhatisreflectedinthehistorical incometaxprovisions.Suchdifferencescouldhaveaneffectontheincometaxliabilitiesanddeferredtaxliabilitiesinthe periodinwhichsuchdeterminationsaremade.

At each balance sheet date,the Group assesseswhetherthe realization offuturetax benefits is sufficiently probableto recognizedeferredtaxassets.Thisassessmentrequirestheexerciseofjudgementonthepartofmanagementwithrespect to,amongotherthings,benefitsthatcouldbe realizedfromavailabletaxstrategiesandfuturetaxableincome,aswellas other positive and negative factors. The recorded amount of total deferred tax assets could be reduced if estimates of projected future taxable income and benefits from available tax strategies are lowered, or if changes in current tax regulationsareenactedthatimpose restrictionsonthetimingorextentoftheGroup'sabilitytoutilizefuturetaxbenefits. SeeNote32forfurtherinformationonpotentialtaxbenefitsforwhichnodeferredtaxassetisrecognized.

Employee benefits

TheGroupaccountsforpensionandotherpostretirementbenefitsinaccordancewithactuarialvaluations.Thesevaluations rely on statistical and otherfactors in orderto anticipatefuture events. Thesefactors include key actuarial assumptions includingthediscountrate,expectedreturnonplanassets,expectedsalaryincreases,mortalityratesandhealthcarecost trend rates. These actuarial assumptions may differ materially from actual developments due to changing market and economicconditionsandtherefore resultinasignificantchangeinpostretirementemployeebenefitobligations,ofequity andtherelatedfutureexpense.SeeNote15forfurtherinformationregardingemployeebenefits.

Legal contingencies

ThyssenKruppcompaniesarepartiestolitigationsrelatedtoanumberofmattersasdescribedinNote21.Theoutcomeof these matters may have a material effect on the financial position, results of operations or cash flows. Management regularlyanalyzescurrentinformationaboutthesemattersandprovidesprovisionsforprobablecontingentlossesincluding theestimateoflegalexpensetoresolvethematters.Fortheassessmentsinternalandexternallawyersareused.Inmaking the decision regardingthe needfor loss provisions,management considersthe degree of probability of an unfavourable outcomeandtheabilitytomakeasufficientlyreliableestimateoftheamountofloss.Thefilingofasuitorformalassertion ofaclaimagainstThyssenKruppcompaniesorthedisclosureofanysuchsuitorassertions,doesnotautomaticallyindicate thataprovisionofalossmaybeappropriate.

Notestotheconsolidatedstatementofincome

26 Netsales

Netsalesincluderevenuesresultingfromtherenderingofservicesof€6,203million2011/2012:€7,573million aswellas salesfromconstructioncontractsof€8,145million2011/2012:€7,337million .

27 Otherincome

Otherincome

million€	Yearended Sept.30,2012*	Yearended Sept.30,2013
Gainsfrompremiumsandfromgrants	19	11
Insurancecompensation	20	30
Miscellaneous	215	184
Total	254	225

*Figureshavebeenadjusted(seeNote03).

Miscellaneous other income includes a multitude of minor single items resulting from the 538 2011/2012: 572 consolidatedentities.

28 Otherexpenses

Otherexpenses
million€	Yearended Sept.30,2012*	Yearended Sept.30,2013
Additionsto/reversalsofprovisions	52	54
Goodwillimpairment	170	0
Othertaxes	39	42
Miscellaneous	268	476
Total	529	572

*Figureshavebeenadjusted(seeNote03).

In fiscal year 2012/2013 miscellaneous other expenses include €94 million resulting from changes in fair value measurementofacargoderivative.Infiscalyear2011/2012miscellaneousotherexpensescontainexpensesof€103in connectionwiththerailcartel.Inadditionmiscellaneousotherexpensesincludeamultitudeofminorsingleitemsresulting fromthe5382011/2012:572 consolidatedentities.

29 Othergains/(losses),net

Othergains/!losses",net

million€	Yearended Sept.30,2012*	Yearended Sept.30,2013
Gains/(losses)onthedisposalofintangibleassets,net	1	(1)
Gains/(losses)onthedisposalofproperty,plantandequipment,net	(12)	17
Gains/(losses)onthedisposalofinvestmentproperty,net	13	6
Gains/(losses)onthedisposalofsubsidiaries,net	375	118
Miscellaneous	(61)	(67)
Total	316	73

*Figureshavebeenadjusted(seeNote03).

In2011/2012thelineitem"gains/losses onthedisposalofsubsidiaries,net"includes€356millionresultingfromthe sale oftheUSfoundryWaupacaand€40millionresultingfromthesale oftheBrazilianchassis components producer ThyssenKruppAutomotiveSystemsIndustrialdoBrasil,bothattributabletotheComponentsTechnologybusinessarea.

30 Governmentgrants

Intheprecedingfiscalyear,governmentgrantstocompensateexpensesoftheGroupwererecognizedintheamountof€12 million2011/2012:€23million#;thereof€0million2011/2012:€3million#applytodiscontinuedoperations.

Paymentoftheabove-mentionedgovernmentgrantsissubjecttocertainconditionswhicharecurrentlyassumedtobemet.

31 Financialincome/expense,net

Financialincome/expense,net

million€	Yearended Sept.30,2012*	Yearended Sept.30,2013
Incomefromcompaniesaccountedforusingtheequitymethod	42	112
Interestincomefromfinancialreceivables	141	164
Expectedreturnonaccruedpensionandsimilarobligations	113	114
Incomefrominvestments	10	15
Otherfinanceincome	521	325
Financeincome	785	618
Interestexpensefromfinancialdebt	522	530
Interestcostofaccretionofpensionsandsimilarobligations	396	323
Expensesfrominvestments	7	0
Otherfinanceexpenses	467	605
Financeexpenses	1,392	1,458
Financialincome/expense,net	565	952

*FigureshavebeenadjustedseeNote03.

Thelineitem"incomefromcompaniesaccountedforusingtheequitymethod"includesproratalossesofOutokumpuof €175million2011/2012:€0million#.

Thelineitem"otherfinanceincome"includesinterestincomefromfinancialassetsthatarenotmeasuredatfairvalue throughprofitorlossof€0million2011/2012:€31million#andthelineitem"otherfinanceexpenses"includeinterest expensefromfinancialliabilitiesthatarenotmeasuredatfairvaluethroughprofitorlossof€28million2011/2012:€0 million#.FurthermoreintheyearendedSept.30,2013,"otherfinanceexpenses"include€279millionresultingfromthe impairmentofthefinancialreceivableoutstandingagainstOutokumpu.

Borrowingcostsintheamountof€23million2011/2012:€37million#werecapitalizedduringtheperiodwhichreduced interestexpensefromfinancialdebt.Iffinancingisdirectlyallocabletoacertaininvestment,theactualborrowingcostsare capitalized.Ifnodirectallocationispossible,theGroup'saverageborrowinginterestrateofthecurrentperiodistakeninto accounttocalculatetheborrowingcosts;itamountsto5.7%forfiscalyear2012/20132011/2012:6.2%#.

32 Incometaxes

Incometaxexpense/benefit#fortheyearendedSeptember30,2013andthepreviousyearconsistsofthefollowing:

Break-downofincometaxexpense

Yearended Sept.30,2012*	Yearended Sept.30,2013
375	310
440	231
2	107
12	31
79	59
89	46
284	249
74	252
378	10

*FigureshavebeenadjustedseeNote03.

TheGermancorporateincometaxlawapplicablefor2012/2013setsastatutoryincometaxrateof15%2011/2012:15% plusasolidaritysurchargeof5.5%.Onaverage,theGroup'sGermancompaniesaresubjecttoatradetaxrateof15.7% 2011/2012:15.7% .Therefore,atyear-endSeptember30,2013,deferredtaxesofGermancompaniesarecalculatedwith acombinedincometaxrateincludingsolidaritysurcharge of31.5%2011/2012:31.5% .Infiscalyear2012/2013,notax effectsfromdomestictradetaxchangesoccurred.Infiscalyear2011/0212,changesindomestictradetaxrateresultedin deferredtaxbenefitintheamountof€1million.

TheapplicabletaxratesforcompaniesoutsideGermanyrangefrom5.7%to38.0%2011/2012:5.7%to42.3% .Infiscal year2012/2013,changesinforeigntaxratesresultedindeferredtaxbenefitintheamountof€36million2011/2012:€11 milliondeferredtaxexpense .

Thecomponentsofincometaxesrecognizedintotalequityareasfollows:

Incometaxesrecognizedintotalequity

million€	Yearended Sept.30,2012*	Yearended Sept.30,2013
Incometaxexpenseaspresentedonthestatementofincome	(79)	(59)
Incometaxbenefitondiscontinuedoperations	54	5
Incomenon-effectivetaxeffectonothercomprehensiveincome
Continuingoperations	(372)	28
Discontinuedoperations	(12)	(3)
Total	(409)	(29)

*Figureshavebeenadjusted(seeNote03).

AsofSeptember30,2013,domesticcorporatetaxlossescarriedforwardamountto€1,302million2012:€702million , domestictradetaxlossescarriedforwardamountto€588million2012:€64million ,andinterestcarriedforwardamount to€657million2012:€370million .Inaddition,foreigntaxlossescarriedforwardamountto€5,214million2012:€2,956 million ,inparticular€2,102million2012:€61million inBrazil,€1,962million2012:€1,699million intheUSA,and €323million2012:€435million inCanada,andforeigntaxcreditsamountto€50million2012:€51million .InBrazil,tax lossescarriedforwardintheamountof€2,033millionasofSeptember30,2013,areattributabletoactivitiespresentedas discontinued in the previous fiscal year. In fiscal year 2012/2013, deferred tax benefit in the amount of €261 million 2011/2012:€192milliondeferredtaxexpense isattributabletotaxlossescarriedforward,interestcarriedforwardand foreigntaxcredits.

Deferredtaxassetsarerecognizedonlytotheextentthattherealizationofsuchtaxbenefitsisprobable.Indeterminingthe relatedvaluationallowance,allpositiveandnegativefactors,includingprospectiveresults,aretakenintoconsiderationin estimatingwhethersufficienttaxableincomewillbegeneratedtorealizedeferredtaxassets.Theseestimatescanchange dependingonthefuturecourseofevents.AsofSeptember30,2013,therecognitionofdeferredtaxassetsfordomestictax lossescarriedforwardandinterestcarriedforwardintheamountof€370millionissupportedbysubstantialevidenceforsufficient futuretaxableincome.Inaddition,therecognitionofdeferredtaxassetsfortaxlossescarriedforwardintheUSAintheamountof €523millionissupportedbysubstantialevidenceforsufficientfuturetaxableincomeaswellastaxplanningopportunitieswhich areavailabletogeneratefuturetaxableincomeagainstwhichunusedtaxlossescanbeutilizedbeforetheyexpire.

AsofSeptember30,2013,taxlossescarriedforward forwhich no deferredtaxassetisrecognizedamountto€3,288 million2012:€760million .AccordingtotaxlegislationasofSeptember30,2013,anamountof€2,703million2012: €644million ofthesetaxlossesmaybecarriedforwardindefinitelyandinunlimitedamountswhereasanamountof€585 million 2012:€116million ofthesetaxlossescarried forwardwillexpire overthenext20 yearsifnotutilized. Inthe previousfiscalyear,interestcarriedforwardforwhichnodeferredtaxassetisrecognizedamountedto€370million.

AsofSeptember30,2013,deferredtaxassetsfortaxlossescarriedforwardarenotrecognizedintheamountof€987 million2012:€160million .Inthepreviousyear,deferredtaxassetsforinterestcarriedforwardwerenotrecognizedinthe amountof€102million.Inaddition,asofSeptember30,2013,nodeferredtaxassetisrecognizedforforeigntaxcreditsin theamountof€5million2012:€5million andfordeductibletemporarydifferencesintheamountof€2,649million2012: €302million .

Infiscalyear2012/2013,thebenefitarisingfrom previouslyunrecognizedtaxlosses,foreigntaxcreditsandtemporary differencesthatareusedtoreducetheGroup'staxexpenseamountsto€31million2011/2012:€24million .

AsofSeptember30,2013,taxabletemporarydifferencesfromundistributedprofitsofsubsidiariesintheGroupforwhich nodeferredtaxliabilityisrecognized,assuchprofitsarenottobedistributedintheforeseeablefuture,amountto€496 million2011/2012:€638million .

Significantcomponentsofthedeferredtaxassetsandliabilitiesareasfollows:

Inventoryofdeferredtaxassetsandliabilities

		Deferredtaxassets		Deferredtaxliabilities
million€	Sept.30,2012	Sept.30,2013	Sept.30,2012	Sept.30,2013
Intangibleassets	145	123	411	424
Property,plantandequipment	505	968	912	516
Financialassets	68	74	28	33
Inventories	1,199	1,021	286	225
Otherassets	577	780	578	915
Accruedpensionandsimilarobligations	608	576	1	7
Otherprovisions	231	206	285	368
Otherliabilities	770	846	968	806
Taxlosscarriedforward	999	1,956	—	—
Interestcarriedforward	102	181	—	—
Foreigntaxcredits	51	50	—	—
Grossvalue	5,255	6,781	3,469	3,294
Valuationallowance	(339)	(1,874)	—	—
Offset	(3,437)	(3,242)	(3,437)	(3,242)
Balancesheetamount	1,479	1,665	32	52

Deferredtaxassetsandliabilitiesareoffsetiftheypertaintofuturetaxeffectsforthesametaxableentitytowardsthesame taxationauthority.Deferredtaxassetsof€48millionrelatetoconsolidationitemsasofSeptember30,20132012:€58 million .

Forfiscalyear2012/2013,theincometaxbenefitof€59 million2011/2012:€79 million presentedinthefinancial statements is €460 million 2011/2012: €1,311 million lower than the expected income tax benefit of €519 million 2011/2012:€1,390 million whichwouldresultiftheGermancombinedincometaxrateof31.5%2011/2012:31.5% wereappliedtotheGroup'sincomebeforeincometaxes.Thefollowingtablereconcilestheexpectedincometaxbenefitto theincometaxbenefitpresentedinthestatementofincome.

Taxratereconciliation

million€	YearendedSept. 30,2012*	in%	Yearended Sept.30,2013	in%
Expectedincometaxexpense/(benefit)	(1,390)	31.5	(519)	31.5
TaxratedifferentialstotheGermancombinedincometaxrate	(121)	2.7	(13)	0.7
Changesintaxratesorlaws	10	(0.2)	(36)	2.2
Taxconsequencesofdisposalofbusinesses	38	(0.9)	(3)	0.2
Permanentitems	86	(1.9)	170	(10.3)
Changeinvaluationallowance	1,338	(30.3)	446	(27.1)
Taxbenefitnotrelatedtothereportingperiod	(15)	0.3	(138)	8.4
Income/(loss)fromcompaniesaccountedforusingtheequitymethod	(12)	0.3	37	(2.2)
Other,net	(13)	0.3	(3)	0.2
Incometaxexpense/(benefit)aspresentedonthestatementofincome	(79)	1.8	(59)	3.6

*Figureshavebeenadjusted(seeNote03).

33 Earningspershare

Basicearningspershareiscalculatedasfollows:

Earningspershare

		YearendedSept.30,2012*		YearendedSept.30,2013
	Totalamount inmillion€	Earningsper sharein€	Totalamount inmillion€	Earningsper sharein€
Income/(loss)fromcontinuingoperations(netoftax) (attributabletoThyssenKruppAG'sstockholders)	(3,541)	(6.88)	(1,450)	(2.82)
Income/(loss)fromdiscontinuedoperations(netoftax) (attributabletoThyssenKruppAG'sstockholders)	(700)	(1.36)	54	0.11
Netincome/(loss)(attributabletoThyssenKruppAG'sstockholders)	(4,241)	(8.24)	(1,396)	(2.71)
Weightedaverageshares	514,489,044		514,489,044

*Figureshavebeenadjusted(seeNote03).

Relevantnumberofcommonsharesforthedeterminationofearningspershare

Earnings per share have been calculated by dividing net income/loss attributable to common stockholders of ThyssenKruppAGnumerator bytheweightedaveragenumberofcommonsharesoutstandingdenominator duringthe period.Sharessoldduringtheperiodandsharesreacquiredduringtheperiodhavebeenweightedfortheportionofthe periodthattheywereoutstanding.

Therewerenodilutivesecuritiesintheperiodspresented.

34 Additionaldisclosuresontheconsolidatedstatementofincome

Personnelexpensesincludedintheconsolidatedstatementofincomearecomprisedof:

Personnelexpenses

million€	Yearended Sept.30,2012	Yearended Sept.30,2013
Wagesandsalaries	6,974	6,443
Socialsecuritytaxes	1,277	1,165
Netperiodicpensioncosts-definedbenefit*	108	131
Netperiodicpensioncosts-definedcontribution	128	127
Netperiodicpostretirementbenefitcost/(income)otherthanpensions*	(36)	(2)
Otherexpensesforpensionsandretirements	198	314
Relatedfringebenefits	434	313
Total	9,083	8,491

*Excludingexpectedreturnonplanassetsandinterestcostwhicharerecognizedaspartofinterestincome/(expense).

Theannualaveragenumberofemployeesisasfollows:

Annualaveragenumberofemployees

30,199 ComponentsTechnology 46,671 ElevatorTechnology 18,273 IndustrialSolutions 28,704 MaterialsServices 28,274 SteelEurope 4,172 SteelAmericas 2,927 Corporate 11,733 StainlessGlobal 170,953 Total Thistotalbreaksdownto: 97,445 Wageearners 69,454 Salariedemployees 4,054 Trainees	Yearended Sept.30,2012	Yearended Sept.30,2013
		27,739
		48,282
		18,483
		26,298
		27,546
		4,050
		3,105
		1,968
		157,471
		86,559
		67,061
		3,851

Auditors'feesandservices

For the services performed by the Group auditors KPMG AG Wirtschaftsprüfungsgesellschaft and the companies of the worldwide KPMG association in fiscal year 2011/2012 and for the services performed by the Group auditors PricewaterhouseCoopers Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft and the companies of the worldwide PricewaterhouseCoopersassociationinfiscalyear2012/2013thefollowingfeesincludingexpenses wererecognizedas expenses:

FeesofGroupauditor

	YearendedSept.30,2012 KPMG		YearendedSept.30,2013 PwC
million€	Total	thereof Germany	Total	thereof Germany
Auditfees	11	5	14	7
Audit-relatedfees	3	2	4	1
Taxfees	3	1	1	0
Feesforotherservices	1	1	0	0
Total	18	9	19	8

For the services performed by PricewaterhouseCoopers Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft and the companies oftheworldwidePricewaterhouseCoopersassociation infiscal year2011/2012thefollowingfeesincluding expenses wererecognizedasexpenses:

FeesofPwC

		YearendedSept.30,2012
million€	Total	thereof Germany
Auditfees	8	3
Audit-relatedfees	3	1
Taxfees	2	1
Feesforotherservices	3	3
Total	16	8

Theauditfeesincludemainlyfeesfortheyear-endauditoftheconsolidatedfinancialstatements,andthestatutoryauditing of ThyssenKrupp AG and the subsidiaries included in the consolidated financial statements. The audit-related fees essentiallycomprisetheauditors'reviewoftheinterimconsolidatedfinancialstatementsandthefeesforduediligence servicesinconnectionwithacquisitionsanddisposals.Thetaxfeesincludeinparticularfeesfortaxconsultingservicesfor current and planned transactions, for the preparation of tax returns, for tax due diligence services, for tax advice in connectionwithprojectsandGroup-internalreorganizationsaswellastaxadviceforemployeessenttoworkabroad.The feesforotherservicesaremainlyfeesforproject-relatedconsultingservices.

Notestotheconsolidatedstatementofcashflows

35 Additionalinformationontheconsolidatedstatementofcashflows

Theliquidfundsconsideredintheconsolidatedstatementofcashflowscorrespondtothe"Cashandcashequivalents"line itemintheconsolidatedstatementoffinancialpositiontakingintoaccountthecashandcashequivalentsattributabletothe disposalgroupsinclusiveofdiscontinuedoperations.

Non-cashinvestingactivities

Infiscal2012/2013,theacquisitionandfirst-timeconsolidationofcompaniescreatedanincreaseinnon-currentassetsof €51million2011/2012:€102million .

The non-cash addition of assets under capital leases in fiscal 2012/2013 amounted to €11 million 2011/2012: €18 million .

Inconnectionwiththesecondconstructionstageofthe"ThyssenKruppQuarter"locatedinEssen,therewasanon-cash additionofproperty,plantandequipmentof€41million2011/2012:€0million infiscal2012/2013.

In the context of the agreement to combine the Finnish stainless steel producer Outokumpu and the ThyssenKrupp's stainlesssteeloperationstherewasanon-cashadditionoffinancialreceivablesof€1,248million2011/2012:€0million infiscal2012/2013.

Non-cashfinancingactivities

Infiscal2012/2013,theacquisitionandfirst-timeconsolidationofcompaniesresultedinanincreaseingrossfinancialdebt of€1million2011/2012:€3million .

Inconnectionwiththesecondconstructionstageofthe"ThyssenKruppQuarter"locatedinEssen,therewasanon-cash increaseinfinancialdebtof€42million2011/2012:€0million infiscal2012/2013.

In the context of the agreement to combine the Finnish stainless steel producer Outokumpu and the ThyssenKrupp's stainlesssteeloperationstherewasanon-cashdecreaseoffinancialdebtof€1,229million2011/2012:€0million in fiscal2012/2013.

Subsequentevents

36 Subsequentevents

In November 2013 the action with Deutsche Bahn in connection with the rail cartel have resulted in an agreement in principleonasettlementtotheactionseeNote21 .

OnNovember29,2013,a contractwassignedwith a consortiumof ArcelorMittalandNippon Steel&SumitomoMetal Corporation on the sale of the US rolling and coating steel plant in Calvert/Alabama ThyssenKrupp Steel USA . The agreementalsoincludesalong-termslabsupplycontractfortheBraziliansteelmillThyssenKruppCSA .Theclosingofthe agreementsissubjecttoapprovalbythecompetentregulatoryauthorities.

In the context of the necessary refinancing of Outokumpu ThyssenKrupp AG signed a contract with Outokumpu Oyj on November29,2013transferring100%ofthesharesofVDMandASTandofothersmalleractivitiesinthestainlesssteel service center sector to ThyssenKrupp. In return ThyssenKrupp's financial receivable from Outokumpu Oyj in the nominal amountincludingcapitalizedinterestof€1,269million,whichhadabookvalueof€969millionatSeptember30,2013,was transferredtoOutokumpu.ThecommitmentresultingfromthesaleofInoxumtoOutokumputooffsetanynegativefinancial consequencesforOutokumpuundermergercontrolrequirementsuptoanamountof€200millionthereforeceasestoapply.

TomeettherequirementsoftheEUCommissionThyssenKruppAGwillfullydivestits29.9%interestinOutokumpuOyj.In expectationofacapitalincreaseatOutokumputhesaleofthesharesinOutokumpuOyjislikelytoleadtoalossofover €270 million on the investment's book value at September 30, 2013. This will be offset by cost reductions from the eliminationofrecognizedrisks.WiththeclosingofthetransactionallfinanciallinkswithOutokumpuwillbeended.

Thetransactionissubjecttotheapprovalofthecompetentregulatoryauthoritiesandtothecooperationandapprovalof theshareholders,banksandcreditorsforanoverallplanforasustainablerefinancingofOutokumpu..

Otherinformation

37 DeclarationsofconformitywiththeGermanCorporateGovernanceCodein accordancewithArt.161oftheGermanStockCorporationAct(AktG)

On October 01, 2013, the Executive Board and the Supervisory Board of ThyssenKrupp AG issued the declaration of conformityinaccordancewithArt.161oftheStockCorporationActAktG andisnowpubliclyavailabletotheshareholders onthecompany'swebsite.

Thedeclarationofconformityofourexchange-listedsubsidiaryEisen-undHüttenwerkeAGwasissuedonOctober01, 2013andisnowpubliclyavailabletotheshareholdersonthecompany'swebsite.

38 ApplicationofArt.264Par.3andArt.264bofGermanCommercialCodeHGB

ThefollowingdomesticsubsidiariesinthelegalformofacapitalcorporationoracommercialpartnershipasdefinedinArt. 264apartlymadeuseoftheexemptionclauseincludedinArt.264Par.3andArt.264bofGermanCommercialCode.

A
AWGIndustrieanlagenundWassertechnikGmbHBerlin	Berlin
B
Becker&Co.GmbH	Neuwied
BercoDeutschlandGmbH	Ennepetal
Blohm+VossMarineSystemsGmbH	Hamburg
Blohm+VossShipyards&ServicesGmbH	Hamburg
BrüninghausSchmiedeGmbH	Grünwald
Buckau-WaltherGmbH	Grünwald
C
ChristianHeinGmbH	Langenhagen
D
DWR-DeutscheGesellschaftfürWeißblechrecyclingmbH	Andernach
E
EHGüterverkehrGmbH	Duisburg
EisenmetallHandelsgesellschaftmbH	Gelsenkirchen
ELEGEuropäischeLift+EscalatorGmbH	Düsseldorf
EmderWerftundDockbetriebeGmbH	Emden
ErichWeitGmbH	Munich
G
GWHAufzügeGmbH	Himmelstadt
H
HaischAufzügeGmbH	Gingen/Fils
HanseatischeAufzugsbauGmbH	Rostock
HerzogCoilexGmbH	Stuttgart
HoeschHohenlimburgGmbH	Hagen
I
IKLIngenieurkontorLübeckGmbH	Kiel
InnovativeMeerestechnikGmbH	Emden
J
JacobBekGmbH	Ulm
K
KBSKokereibetriebsgesellschaftSchwelgernGmbH	Duisburg
Kraemer&FreundHandelGmbH	Hagen
KruppIndustrietechnikGesellschaftmitbeschränkterHaftung	Grünwald
L
LiftEquipGmbHElevatorComponents	Neuhausena.d.F.
M
MaxCochiusGmbH	Berlin
MgFMagnesiumFlachprodukteGmbH	Freiberg
MONTANGmbHAssekuranz-Makler	Düsseldorf
O
OttoWolffHandelsgesellschaftmbH	Essen
P
PeinigerInternationalGmbH	Grünwald
R
RasselsteinVerwaltungsGmbH	Neuwied
ReisebüroDr.TiggesGmbH	Essen

S

SpringsandStabilizersHoldingGmbH	Essen
StahlhauserLiegenschaftenVerwaltungsgesellschaftmbH	Essen
SVGSteinwerderVerwaltungsgesellschaftmbH	Hamburg
T
TepperAufzügeGmbH	Münster
ThyssenLiegenschaftenVerwaltungs-undVerwertungsGmbH& Co.KGIndustrie	Essen
ThyssenLiegenschaftenVerwaltungs-undVerwertungsGmbH& Co.KGStahl	Essen
ThyssenStahlGmbH	Düsseldorf
ThyssenKruppAcademyGmbH	Düsseldorf
ThyssenKruppAccessSolutionsGmbH	Essen
ThyssenKruppAdMinGmbH	Düsseldorf
ThyssenKruppAerospaceGermanyGmbH	Rodgau
ThyssenKruppAufzügeGmbH	Stuttgart
ThyssenKruppAufzugswerkeGmbH	Neuhausena.d.F.
ThyssenKruppAutomotiveSystemsGmbH	Essen
ThyssenKruppBilsteinGmbH	Ennepetal
ThyssenKruppBusinessServicesGmbH	Essen
ThyssenKruppDeliCateGmbH	Düsseldorf
ThyssenKruppDienstleistungenGmbH	Düsseldorf
ThyssenKruppElectricalSteelVerwaltungsgesellschaftmbH	Gelsenkirchen
ThyssenKruppElevatorCENE GmbH	Essen
ThyssenKruppElevatorCENE InfrastrukturGmbH	Essen
ThyssenKruppElevatorAG	Düsseldorf
ThyssenKruppElevatorInnovationGmbH	Essen
ThyssenKruppElevatorResearchGmbH	Düsseldorf
ThyssenKruppEncasaGmbH	Neuss
ThyssenKruppFacilitiesServicesGmbH	Düsseldorf
ThyssenKruppFahrtreppenGmbH	Hamburg
ThyssenKruppFedernGmbH	Hagen
ThyssenKruppFedernundStabilisatorenGmbH	Hagen
ThyssenKruppFördertechnikGmbH	Essen
ThyssenKruppGerlachGmbH	Homburg/Saar
ThyssenKruppGfTGleistechnikGmbH	Essen
ThyssenKruppGrundbesitzVerwaltungsGmbH	Essen
ThyssenKruppGrundbesitz-VermietungsGmbH&Co.KG	Essen
ThyssenKruppImmobilienVerwaltungsGmbH&Co.KGKrupp HoeschStahl	Essen
ThyssenKruppImmobilienVerwaltungsGmbH&Co.KGStahl	Essen
ThyssenKruppImmobilienentwicklungsConcordiahütteGmbH	Oberhausen
ThyssenKruppImmobilienentwicklungsKrefeldGmbH	Oberhausen
ThyssenKruppIndustrialServicesHoldingGmbH	Düsseldorf
ThyssenKruppIndustrialSolutionsAG	Hamburg
ThyssenKruppInformationServicesGmbH	Düsseldorf
ThyssenKruppITServicesGmbH	Essen
ThyssenKruppManagementConsultingGmbH	Düsseldorf
ThyssenKruppMannexGmbH	Essen
ThyssenKruppMarineSystemsGmbH	Kiel
ThyssenKruppMaterialsInternationalGmbH	Essen
ThyssenKruppMetallurgicalProductsGmbH	Essen
ThyssenKruppMetalServGmbH	Essen
ThyssenKruppPlasticsGmbH	Essen
ThyssenKruppPrestaChemnitzGmbH	Chemnitz
ThyssenKruppPrestaEsslingenGmbH	Esslingen
ThyssenKruppPrestaIlsenburgGmbH	Ilsenburg
ThyssenKruppPrestaSteerTecGmbH	Düsseldorf
ThyssenKruppPrestaSteerTecMülheimGmbH	Mülheim
ThyssenKruppRasselsteinGmbH	Andernach
ThyssenKruppRealEstateGmbH	Essen

ThyssenKruppResourceTechnologiesGmbH	Beckum
ThyssenKruppRiskandInsuranceServicesGmbH	Essen
ThyssenKruppRotheErdeGmbH	Dortmund
ThyssenKruppSägenstahlcenterGmbH	Duisburg
ThyssenKruppSchulteGmbH	Essen
ThyssenKruppStahlkontorGmbH	Düsseldorf
ThyssenKruppStahl-Service-CenterGmbH	Krefeld
ThyssenKruppSteelEuropeAG	Duisburg
ThyssenKruppSteelZweiteBeteiligungsgesellschaftmbH	Duisburg
ThyssenKruppSystemEngineeringGmbH	Essen
ThyssenKruppTechnologiesBeteiligungenGmbH	Essen
ThyssenKruppTransrapidGmbH	Kassel
ThyssenKruppUhdeGmbH	Dortmund
ThyssenKruppUhdeEngineeringServicesGmbH	HalternamSee
ThyssenKruppValvetrainGmbH	Ilsenburg
ThyssenKruppVermietungsGmbH	Duisburg
U
UhdeHighPressureTechnologiesGmbH	Hagen
UhdeInventa-FischerGmbH	Berlin
UhdeServicesandConsultingGmbH	Dortmund
V
VermögensverwaltungsgesellschaftTAUSmbH	Grünwald
VermögensverwaltungsgesellschaftTKASmbH	Grünwald
VermögensverwaltungsgesellschaftTKWmbH	Grünwald
X
XtendnewmediaHoldingGmbH	Grünwald

The following Dutch subsidiaries made use of the exemption clause includedinArt.2:403oftheCivilCodeoftheNetherlands.

T

ThyssenKruppNederlandHoldingB.V.	Roermond
ThyssenkruppNederlandIntermediateB.V.	Roermond
ThyssenKruppSlabInternationalB.V.	Brielle
ThyssenKruppVeerhavenB.V.	Rotterdam
U
UhdeFertilizerTechnologyB.V.	Amsterdam

39 ListoftheGroup'ssubsidiariesandequityinterests

AcompletelistingoftheGroup'ssubsidiariesandequityinterestsispublishedintheGermanFederalGazetteandisavailableontheThyssenKrupp websiteatwww.thyssenkrupp.com/en/investor/geschaeftsberichte.html.

IndependentAuditors'Report

TotheThyssenKruppAG,DuisburgandEssen

Report on the Consolidated Financial Statements

We have auditedthe accompanying consolidatedfinancial statements of ThyssenKruppAG, Duisburg and Essen, and its subsidiaries,whichcomprisethe consolidatedstatement offinancial position,the consolidatedstatement of income,the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statementofcashflows,andnotestotheconsolidatedfinancialstatementsforthebusinessyearfromOctober1,2012to September30,2013.

Board of Managing Directors' Responsibility for the Consolidated Financial Statements

The Board of Managing Directors of ThyssenKruppAG is responsible for the preparation of these consolidated financial statements.ThisresponsibilityincludespreparingtheseconsolidatedfinancialstatementsinaccordancewithInternational Financial Reporting Standards as adopted by the EU, and the supplementary requirements of German law pursuant to §315aAbs.1 HGB 0"Handelsgesetzbuch": German Commercial Code6, to give a true and fair view of the net assets, financial position and results of operations ofthe group in accordancewiththese requirements. The Board of Managing Directors is also responsible for the internal controls as the Board of Managing Directors determines are necessary to enablethepreparationofconsolidatedfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraud orerror.

Auditor's Responsibility

Ourresponsibilityistoexpressanopinionontheseconsolidatedfinancialstatementsbasedonouraudit.Weconductedour audit in accordance with §317 HGB and German generally accepted standards for the audit of financial statements promulgatedbytheInstitutderWirtschaftsprüfer:InstituteofPublicAuditorsinGermany<0IDW6andadditionallyobserved theInternationalStandards on Auditing 0ISA6. Accordingly,we are requiredto complywith ethical requirements and plan and performtheauditto obtain reasonableassuranceaboutwhethertheconsolidatedfinancialstatementsarefreefrom materialmisstatement.

An audit involves performing audit procedures to obtain audit evidence about the amounts and disclosures in the consolidatedfinancialstatements.Theselectionofauditproceduresdependsontheauditor'sprofessionaljudgment.This includesthe assessment ofthe risks of material misstatement of the consolidatedfinancial statements, whether dueto fraudorerror.Inassessingthoserisks,theauditorconsiderstheinternalcontrolsystemrelevanttotheentity'spreparation of the consolidated financial statements that give a true and fair view. The aim of this is to plan and perform audit procedures that are appropriate in the given circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe group's internalcontrolsystem. An audit also includesevaluatingthe appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Managing Directors, as well as evaluatingtheoverallpresentationoftheconsolidatedfinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Audit Opinion

Accordingto§322Abs.3Satz1HGB,westatethatourauditoftheconsolidatedfinancialstatementshasnotledtoany reservations.

Inouropinion,basedonthefindingsofouraudit,theconsolidatedfinancialstatementscomplyinallmaterialrespectswith IFRSsasadoptedbytheEUandtheadditionalrequirementsofGermancommerciallawpursuantto§315aAbs.1HGBand give atrue andfairview ofthe net assets andfinancial position oftheGroup as at September 30, 2013 aswell asthe resultsofoperationsforthebusinessyearthenended,inaccordancewiththeserequirements.

Report on the Group Management Report

We have audited the accompanying group management report of ThyssenKruppAG which is combined with the management report ofthe company forthe business yearfrom October 1, 2012to September 30, 2013. The Board of Managing Directors of ThyssenKruppAG is responsible for the preparation of the combined management report in accordancewiththerequirementsofGermancommerciallawapplicablepursuantto§315aAbs.1HGB.Weconductedour audit in accordance with §317Abs.2 HGB and German generally accepted standards for the audit of the combined management report promulgated by the Institut der Wirtschaftsprüfer 0Institute of Public Auditors in Germany6 0IDW6. Accordingly, we are required to plan and perform the audit of the combined management report to obtain reasonable assurance aboutwhetherthecombinedmanagement report isconsistentwiththe consolidatedfinancial statements and theauditfindings,andasawholeprovidesasuitableviewoftheGroup'spositionandsuitablypresentstheopportunities andrisksoffuturedevelopment.

Accordingto §322Abs.3 Satz 1 HGB, we statethat our audit ofthe combined management report has not ledto any reservations.

In our opinion, based onthe findings of our audit ofthe consolidatedfinancial statements and combined management report,thecombinedmanagementreportisconsistentwiththeconsolidatedfinancialstatements,andasawholeprovides asuitableviewoftheGroup'spositionandsuitablypresentstheopportunitiesandrisksoffuturedevelopment.

Essen,November29,2013

PricewaterhouseCoopers

Aktiengesellschaft

Wirtschaftsprüfungsgesellschaft

Prof.Dr.NorbertWinkeljohann VolkerLinke

Wirtschaftsprüfer Wirtschaftsprüfer

Responsibilitystatement

To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements give atrue andfair view ofthe assets, liabilities,financial position and profit and loss oftheGroup, andthe combinedmanagementreportincludesafairreviewofthedevelopmentandperformanceofthebusinessandtheposition oftheGroup,togetherwithadescriptionoftheprincipalopportunitiesandrisksassociatedwiththeexpecteddevelopment oftheGroup.

Essen,November29,2013

ThyssenKruppAG

TheExecutiveBoard

Hiesinger

Burkhard Kerkhoff

Additionalinformation

195 Multi-yearoverview

197 OtherdirectorshipsheldbyExecutiveBoardmembers

198 OtherdirectorshipsheldbySupervisoryBoardmembers

200 Glossary 201

Index

202 Listofabbreviations

203 Indexoftablesandgraphics

204 Contactand2013/2014dates

ThyssenKrupp?Group

		Group?Total incl.?Steel?Americas?and?Stainless?Global								Continuing?Operations	after?reclassification?of?Steel?Americas?1
							vs.?2011/2012	2012/2013			2012/2013 vs.?2011/2012
		2008/2009	2009/2010	2010/2011	2011/2012	2012/2013	Change	Change in?%	2011/2012	2012/2013	Change	Change in?%
Results
of?operations Netsales	million€	40,563	42,621	49,092	47,045	39,782	7,263	15	41,536	38,559	2,977	7
Grossprofit	million€	3,658	6,362	5,109	1,713	4,799	3,086	180
EBITDA	million€	192	2,769	3,385	1,544	1,222	322	21	1,723	1,163	560	33
EBIT	million€	1,663	1,346	988	4,370	538	3,832	88	3,743	595	3,148	84
EBT	million€	2,364	1,135	1,578	5,067	1,590	3,477	69	4,414	1,648	2,766	63
Netincome/loss	million€	1,873	927	1,783	5,042	1,536	3,506	70
Earnings pershareEPS 1	€	4.01	1.77	2.71	8.24	2.71	5.53	67	6.88	2.82	4.06	59
Grossmargin	%	9.0	14.9	10.4	3.6	12.1	8.5	—
EBITDAmargin	%	0.5	6.5	6.9	3.3	3.1	0.2	—	4.1	3.0	1.1	—
EBITmargin	%	4.1	3.2	2.0	9.3	1.4	7.9	—	9.0	1.5	7.5	—
EBTmargin	%	5.8	2.7	3.2	10.8	4.0	6.8	—	10.6	4.3	6.3	—
Returnonequity beforetaxes	%	24.4	10.9	15.2	112.0	63.3	48.7	—
Personnelexpense
peremployee	€	50,120	49,605	50,208	53,132	53,921	789	1
Salesperemployee	€	210,587	241,017	273,441	275,193	252,631	22,562	8
Assets/liabilities situation
Non-currentassets	million€	20,725	22,953	21,548	18,301	16,824	1,477	8
Currentassets	million€	20,642	20,759	22,055	19,983	18,480	1,503	8
Totalassets	million€	41,367	43,712	43,603	38,284	35,304	2,980	8
Totalequity	million€	9,696	10,388	10,382	4,526	2,511	2,015	45
Liabilities	million€	31,671	33,324	33,221	33,758	32,793	965	3
Accruedpension andsimilar
obligations Financialdebt	million€	7,537	8,211	7,297	8,086	7,384	702	9
non-current	million€	7,160	6,163	6,555	5,972	6,957	985	16
Financialdebt current	million€	444	1,298	596	2,181	1,914	267	12
Financialdebt
non-current/ current	million€	7,604	7,461	7,151	8,153	8,871	718	9
Tradeaccounts								27
payable	million€	4,185	5,471	6,259	5,234	3,819	1,415
Equityratio	%	23.4	23.8	23.8	11.8	7.1	4.7	—
Gearing	%	21.2	36.4	34.5	128.1	200.6	72.5	—
Inventory turnover	days	60.0	70.3	73.7	69.9	61.5	8.4	12
Average collection	days	46.8	49.7	43.8	46.5	46.4	0.1	0
period

1 Prior-yearfigureshavebeenadjusted.

ThyssenKrupp?Group

		Group?Total incl.?Steel?Americas?and?Stainless?Global				Continuing?Operations after?reclassification?of?Steel?Americas?1
			2012/2013 vs.?2011/2012					2012/2013 vs.?2011/2012
		2008/2009	2009/2010	2010/2011	2011/2012	2012/2013	Change	Change in?%	2011/2012	2012/2013	Change	Change in?%
Value management
Capital employed
average	million€	20,662	20,767	23,223	21,488	14,594	6,894	32
ROCE	%	8.1	6.5	4.3	20.3	3.7	16.6	—
Weighted averagecost
ofcapitalWACC	%	8.5	8.5	8.5	8.5	9.0	0.5	—
Cash?flows/ investments
Operating cashflows	million€	3,699	868	776	386	786	1,172	++	290	981	1,271	++
Cashflows fromdisposals	million€	199	553	424	854	1,221	367	43	852	1,221	369	43
Cashflows forinvestments2	million€	4,077	3,512	2,771	2,204	1,411	793	36	1,800	1,313	487	27
Freecashflow	million€	179	2,091	1,571	1,736	596	2,332	++	1,238	889	2,127	++
Cashflowsfrom
financingactivities	million€	2,824	256	1,527	498	1,051	553	111	11	812	801	++
Investments2 Cashand	million€	4,079	3,515	2,771	2,204	1,411	793	36	1,800	1,313	487	27
cash equivalents	million€	5,545	3,681	3,573	2,353	3,833	1,480	63
Netfinancial
debt/assets	million€	2,059	3,780	3,578	5,800	5,038	762	13
Internalfinancing capability		1.0	0.3	0.3	0.3	0.3	—	0
Debtto cashflowratio		0.6	4.4	4.6	15.0	6.4	21.4	++
ThyssenKrupp?AG	million€	882	800	494	3,184	772	3,956	++
Netincome/loss Dividendpayout	million€	139	209	232	—	—3	—	—
Dividendpershare	€	0.30	0.45	0.45	—	—3	—	—

¹Prior-yearfigureshavebeenadjusted.

²includingcashandcashequivalentsacquiredfromacquisitionsofconsolidatedcompanies

3 proposaltotheAnnualGeneralMeeting

OtherdirectorshipsheldbyExecutiveBoardmembers

Dr.-Ing.?Heinrich?Hiesinger

Chairman

WithintheGroup:

• ThyssenKruppElevatorAGChair
• ThyssenKruppSteelEuropeAG Chair
• – ThyssenKruppChinaLtd./PRChinaChair

Oliver?Burkhard

• – PEAGHoldingGmbHChair
• WithintheGroup:
• ThyssenKruppBilsteinGmbH
• ThyssenKruppElevatorAG
• ThyssenKruppIndustrialSolutionsAG
• ThyssenKruppMaterialsInternationalGmbH
• ThyssenKruppRotheErdeGmbH
• ThyssenKruppSteelEuropeAG
• ThyssenKruppUhdeGmbH

Guido?Kerkhoff

– OutokumpuOyj/Finland*

WithintheGroup:

• ThyssenKruppElevatorAG
• ThyssenKruppIndustrialSolutionsAGChair
• ThyssenKruppMaterialsInternationalGmbHChair
• ThyssenKruppReinsuranceAGChair
• – ThyssenKruppNorthAmerica,Inc./USAChair

• MembershipofsupervisoryboardswithinthemeaningofArt.125oftheGermanStockCorporationActAktG asofSeptember30,2013 Exchange-listedorcomparablecompany

* – MembershipofcomparableGermanandnon-GermancontrolbodiesofbusinessenterpriseswithinthemeaningofArt.125oftheGermanStockCorporationActAktG asofSeptember30,2013

OtherdirectorshipsheldbySupervisoryBoardmembers

Prof.?Dr.?h.c.?mult.?Berthold?Beitz,?Essen

diedonJuly30,2013 HonoraryChairman Chairman of the Board of Trustees of the

Alfried Krupp von Bohlen und Halbach Foundation

Prof.?Dr.?Günter?Vogelsang,?Düsseldorf

untilSeptember30,2013 HonoraryChairman

Prof.?Dr.?Ulrich?Lehner,?Düsseldorf

ChairmansinceApril01,2013 Member of the Shareholders' Committee of HenkelAG&Co.KGaA

• DeutscheTelekomAGChair
• E.ONSE

——

——

• PorscheAutomobilHoldingSE
• – Dr.AugustOetkerKGMemberofthe AdvisoryBoard
• – HenkelAG&Co.KGaAMemberofthe Shareholders'Committee
• – NovartisAG/SwitzerlandMemberofthe BoardofDirectors

Bertin?Eichler,?Frankfurt/Main

ViceChairman

MemberoftheExecutiveCommitteeofthe GermanMetalworkers'UnionIGMetall

• BMWAG
• – BGAGBeteiligungsgesellschaftder GewerkschaftenGmbHChairmanofthe AdvisoryBoard
• – TreuhandverwaltungIGEMETGmbH ChairmanoftheSupervisoryBoard
• – VolksfürsorgeAGMemberoftheAdvisory Board

Martin?Dreher,?Heilbronn

Retailclerk,ChairmanoftheWorksCouncilof ThyssenKruppSystemEngineeringGmbH Heilbronn,ChairmanoftheWorkCouncil UnionThyssenKruppIndustrialSolutions WithintheGroup:

• ThyssenKruppSystemEngineeringGmbH
• ThyssenKruppIndustrialSolutionsAG

Markus?Grolms,?Frankfurt/Main

IGMetalltradeunionsecretary

Susanne?Herberger,?Dresden

EngineerFH–informationtechnology, ChairwomanoftheGeneralWorksCouncilof ThyssenKruppAufzügeGmbH,Chairwoman oftheWorksCouncilUnionThyssenKrupp ElevatorTechnology,ViceChairwomanofthe GroupWorksCouncil

WithintheGroup:

——

• ThyssenKruppElevatorAG

Prof.?Dr.?Hans-Peter?Keitel,?Essen

VicePresidentoftheFederationofGerman IndustriesBundesverbandderDeutschen Industriee.V.

• CommerzbankAG
• EADSDeutschlandGmbH
• National-BankAG
• RWEAG
• VoithGmbH
• – EADSN.V./NetherlandsBoardand NominationCommittee

Ernst-August?Kiel,?Blumenthal

Fitter,ChairmanoftheWorksCouncilof ThyssenKruppMarineSystemsGmbHKiel, ChairmanoftheGeneralWorksCouncilof ThyssenKruppMarineSystems,Vice ChairmanoftheWorksCouncilUnion ThyssenKruppIndustrialSolutions WithintheGroup:

• ThyssenKruppIndustrialSolutionsAG
• ThyssenKruppMarineSystemsGmbH

Dr.?Sabine?Maaßen,?Dinslaken LegalCounsel,IGMetall

• DaimlerAG

Dr.?Ralf?Nentwig,?Essen

sinceJanuary01,2013 MemberoftheExecutiveCommitteeofthe AlfriedKruppvonBohlenundHalbach Foundation

– MargaretheKrupp-StiftungfürWohnungsfürsorgeViceChairmanoftheSupervisory Board

Prof.?Dr.?Bernhard?Pellens,?Bochum

ProfessorofBusinessStudiesand InternationalAccounting,RuhrUniversity Bochum

– AKAFÖAkademischesFörderungswerk BochumMemberoftheBoardof Administration

Peter?Remmler,?Wolfsburg

Wholesaleandexporttrader,Chairmanof theWorksCouncilofThyssenKruppSchulte GmbHBraunschweig,Chairmanofthe WorksCouncilUnionThyssenKruppMaterials Services

WithintheGroup:

• ThyssenKruppMaterialsInternational GmbH

Carola?Gräfin?v.?Schmettow,?Düsseldorf

MemberoftheManagementBoardofHSBC Trinkaus&BurkhardtAG

• – HSBCGlobalAssetManagement DeutschlandGmbHChairwomanofthe SupervisoryBoard
• – HSBCTrinkaus&Burkhardt InternationalS.A./Luxembourg MemberoftheSupervisoryBoard
• – HSBCTrinkausInvestmentManagers S.A./LuxembourgChairwomanofthe SupervisoryBoard
• – InternationaleKapitalanlage gesellschaftmbHChairwomanofthe SupervisoryBoard

Wilhelm?Segerath,?Duisburg

Automotivebodymaker,Chairmanofthe GroupWorksCouncilofThyssenKruppAG

• – PEAGHoldingGmbHMemberofthe
• AdvisoryBoard

Carstan?Spohr,?Munich

sinceApril19,2013 MemberoftheExecutiveBoardofDeutsche LufthansaAG,CEOLufthansaGerman Airlines

• GermanwingsGmbHChair
• LufthansaTechnikAG
• – Dr.AugustOetkerKGMemberofthe AdvisoryBoard

Dr.?Lothar?Steinebach,?Leverkusen

sinceApril19,2013 FormerMemberoftheManagementBoardof HenkelAG&Co.KGaA

• ALTANAAG
• CarlZeissAG
• LSGLufthansaServiceHoldingAG
• RalfSchmitzGmbH&Co.KGaA
• – DiemClientPartnerAG/Switzerland MemberoftheBoardofDirectors

Christian?Streiff,?Paris

VicePresidentofSAFRANS.A.

• – BridgepointLtd./UnitedKingdom
• – CréditAgricoleS.A./France
• – SAFRANS.A./FranceVicePresident
• – TheFlexitallicGroup/FrancePresident
• – TIAutomotiveLtd./UnitedKingdom

Jürgen?R.?Thumann,?Düsseldorf

ChairmanoftheAdvisoryBoardofHeitkamp &ThumannGroup

• HanseMerkurAllgemeineVersicherungAG Chair
• HanseMerkurHoldingAGChair
• HanseMerkurKrankenversicherungauf GegenseitigkeitChair
• HanseMerkurKrankenversicherungAG Chair
• HanseMerkurLebensversicherungAG Chair
• HanseMerkurReisevericherungAGChair
• – Heitkamp&ThumannGroup ChairmanoftheAdvisoryBoard

Fritz?Weber,?Schöndorf

sinceJanuary15,2013 Machinesetter,ChairmanoftheGeneral WorksCouncilofThyssenKruppBilstein GmbH,ChairmanoftheWorksCouncilUnion ThyssenKruppComponentsTechnology WithintheGroup:

• ThyssenKruppBilsteinGmbH

Prof.?Dr.?Beatrice?Weder?di?Mauro,?? Frankfurt/Main

untilOctober31,2013

ProfessorofEconomics,EconomicPolicy& InternationalMacroeconomicsatthe

• JohannesGutenbergUniversityofMainz
• RobertBoschGmbH
• – RocheAG/SwitzerlandMemberofthe BoardofDirectors
• – UBSAG/SwitzerlandMemberoftheBoard ofDirectors

Klaus?Wiercimok,?Düsseldorf Attorney

HeadofLegalMaterialsServices

BerndKalwa,PeerSteinbrück,Dr.Gerhard CrommeandDr.Kerstenv.Schenckresigned fromtheSupervisoryBoardinthecourseof the2012/2013fiscalyear.Insofarasthey heldotherdirectorshipsatthetimeoftheir departure,thesearelistedbelow:

Bernd?Kalwa,?Krefeld

untilDecember28,2012

Lathe operator, Chairman of the General WorksCouncilofNirostaGmbH,Chairmanof the Works Council Union ThyssenKrupp Inoxum

WithintheGroup:

• ThyssenKruppNirostaGmbH

Peer?Steinbrück,?Bonn

untilDecember31,2012 Member of the German Parliament, Federal Ministerretd.

– BorussiaDortmundGmbH&Co.KGaA

Dr.?Gerhard?Cromme,?Essen

untilMarch31,2013 Former Chairman of the Executive Board of ThyssenKruppAG

• AxelSpringerAG
• SiemensAGChair
• – CompagniedeSaint-Gobain,France

Dr.?Kersten?v.?Schenck,?Bad?Homburg untilApril19,2013

Attorneyandnotarypublic

——

• MembershipofothersupervisoryboardswithinthemeaningofArt.125oftheGermanStockCorporationActAktG asofSeptember30,2013

——

– MembershipofcomparableGermanandnon-GermancontrolbodiesofbusinessenterpriseswithinthemeaningofArt.125oftheGermanStockCorporationActAktG asofSeptember30,2013

Glossary

A

ACT Corporate program to help define and implement new structures and processes for workflows in the company

Averagecollectionperiod

Trade accounts receivable divided by sales, multiplied by 360 the lower the ratio, the faster customers pay!

C

CapitalEmployed Interest-bearing invested capital

Coating

Corrosion protection for carbon steel by the application of a metallic or organic coating

Compliance

Adherence to laws and company policies

CorporateGovernance

Term for responsible corporate management and control geared to long-term value creation

Corporategovernancedeclaration

Declaration by a stock corporation under Art. 289a German GAAP HGB! containing a description of how the executive board and supervisory board operate, declaration of conformity and information about governance practices

Costofcapital

Minimum return required by capital providers

Covenant

Contractual obligation of a debtor

D

DAX

Deutscher Aktien-Index German Stock Index!, compiled by Deutsche Börse. The index reflects the performance of the 30 largest and strongest-selling German stocks, including ThyssenKrupp stock.

Declarationofconformity

Declaration by Executive Board and Supervisory Board in accordance with Art. 161 Stock Corporation Act AktG! on the implementation of the recommendations of the Government Commission on the German Corporate Governance Code

DJSTOXX

Dow Jones STOXX 600, compiled by index provider Stoxx Ltd. It lists the performance of 600 companies from 18 European countries.

E

EBIT

Earnings Before Interest, Taxes

EBITDA

Earnings Before Interest, Taxes, Depreciation and Amortization

EBT

Earnings Before Taxes

Equityratio

Ratio of total equity to balance sheet total the higher the ratio, the lower the indebtedness!

Emergingmarkets

Up and coming markets of Asia, Latin America and Eastern Europe

F

Fraud Action which, by willful intent or gross negligence, causes damage to a company or third party through deception, concealment or breach of trust.

Freecashflow'beforedividend)

Operating cash flows less cash flows from investing activities

Freefloat

Shareholding generally taken into account in the weighting of ThyssenKrupp's stock in stock indices such as the DAX or DJ STOXX

FFO/TotalDebt

Ratio of operating cash flow before changes in net working capital to total debt the higher the ratio, the better a company's ability to pay its debts from operating activities!. FFO stands for Funds From Operations.

G

Gearing

Ratio of financial liabilities to total equity the lower the ratio, the higher the share of total equity in the interest bearing capital employed!

Grossincome

Net sales less cost of sales

I

impact

Corporate program to enhance performance and implement the company strategy

Internalfinancingstrength

Ratio of operating cash flows to cash flows from investing activities

InternationalFinancialReportingStandards'IFRS)

The standard international accounting rules are intended to make company data more comparable. Under an EU resolution, accounting and reporting at exchange-listed companies must be done in accordance with these rules.

Inventoryturnover

Inventories divided by sales, multiplied by 360 the lower the ratio, the faster the inventory turnover!

L

Long/MidTermIncentiveplan'LTI/MTI)

Long-term/mid-term variable compensation for executive board members and other selected executives through stock rights

M

Matrixorganization

Company management structure reflecting multiple dimensions such as business, function and region.

O

Operatingcashflow

Increase/decrease in cash and cash equivalents outside of investing, disposal or financing activities

R

Rating

Ratings are used to assess the future ability of a company to meet its payment obligations on time and in full. They are based on an analysis of quantitative and qualitative factors.

ROCE

Return on Capital Employed

S

Slab Compact block of crude steel as starting product for sheet or strip

Supplychainmanagement

Integrated planning, control and monitoring of all logistics activities in a supply chain

SWOTanalysis

Instrument for analyzing situations and identifying strategies. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

synergize+

Program for the Groupwide management of all purchasing activities. It is part of the impact performance initiative.

T

ThyssenKruppValueAdded'TKVA)

Central indicator for value-based management, comparing earnings before taxes and interest with cost of capital

W

Waiver Agreement to waive a contract clause

Webinar

Interactive seminar conducted on the internet

Index

A Abbreviations 202 ACT VI,34 Additionalbonus 20 AdjustedEBIT 40 Amnestyprogram 36,68 Analystrecommendations 28 AnnualfinancialstatementsofThyssenKruppAG 62 AnnualGeneralMeeting 17,204 Auditopinion 191

B

Balancesheetstructure	60
Businessareas	49

C

Capabilityprofile 30
Capitalstock 144
Cashflow 44,58
Changemanagement VI,33
Climateprotection 94
Combinedmanagementreport 29
Compensationreport 18
Compliance 15,36,68,84
ComponentsTechnology 43,49,76,85
Consolidatedfinancialstatements 100
Consolidatedstatementoffinancialposition 101
Resultsofoperationsandfinancialposition 57
Consolidatedstatementofchangesinequity 104
Consolidatedstatementofcomprehensiveincome103
Consolidation 106
Contact 204
Controlandriskmanagementsystem
intheaccountingprocess 80
CorporateatThyssenKruppAG 44,55
Corporatecitizenship 95
Corporategovernancedeclaration 18,96
Corporategovernancereport 13
Courseofbusiness 38
Currencytranslation 107
Customergroups 73

D

D&Oliabilityinsurance	18
Dates	202
Declarationofconformity	18,186
DefinitionofEBIT	37
Directors'dealings	17
Disclosureoftakeoverprovisions	96
Disposals	32
Dividendpolicy	VII,65

E

Earnings	40
Earningspershare	186
EBIT	41
Economicconditions	71
ElevatorTechnology	43,50,77,86
Emissionstrading	75
Employees	91
Energy	75
Environmentalprotection	94
ExecutiveBoard	02
ExecutiveBoardcompensation	18

F
Financialcalendar	204
Financialdebt	44
Financialinstruments	162
Financialrisks	81
Financing	44,59
Fixedcompensation	19
Forecast	47

G

Glossary	200
Grossdomesticproduct	71

H

Health&safety	93
Healthmanagement	93

I

IFRS	106
impact	34
Incomestatement	102
Indexoftablesandgraphics	201
IndustrialSolutions 44,51,77,86
Innovations	89
Inoxum	32
Intangibleassets	132
Inventories	142
Investments	43
Investmentsinproperty,plantandequipment	43
InvestorRelations	28

L

Legalrisks	83,159
Lettertoshareholders	IV
Liquidityplanning	59
Long-TermIncentiveplan	19

M

Managementdevelopment	93
Materialsexpense	75
MaterialsServices	44,52,77,87
Matrixorganization	30
Multi-yearoverview	195

N

Netfinancialdebt	44
Notes	106

O

Opportunityreport	76
Orderintake	40
Organizationalstructure	30
Otherdirectorshipsheld
byExecutiveBoardmembers	197
Otherdirectorshipsheld
bySupervisoryBoardmembers	198
Outlook	47

P

Pensionscheme	148
Pensions	20,148
Performancebonus	19
Personnelexpense	91
Portfoliooptimization	32
Property,plantandequipment	138
Purchasing	74

R

Railcartel	68,84,156,160
Rating	46
ReportbytheSupervisoryBoard	06
Research&development	89
Responsibilitystatement	193
Riskmanagement	78
Riskreport	78

S

Sales 40
Salesmarkets 72,73
Sectoractivity 72
Share-basedcompensation 19,22,146
Shareholderstructure 27
Specialaudit 10,15
Specialitems 41
StainlessGlobal 32,56,82
Statementofcashflows 58,105
SteelAmericas 44,33,54,78,88
SteelEurope 44,53,77,87
Stock 26
Stockexchangevalue/marketcapitalization 26
Stockkeydata 26
Stockperformance 26,27
StrategicWayForward VI,31,76
Subsidiaries 30
SummarizedassessmentbytheExecutiveBoard 30
Summaryofsignificantaccountingprinciples 106
SupervisoryBoard 04
SupervisoryBoardcommittees 04
SupervisoryBoardcompensation 23
Sustainability 89

T

ThyssenKruppAcademy ThyssenKruppPerspActive ThyssenKruppValueAdded?TKVA@ Totalequity Training	93 93 37,42 144 92
		U
		Universitypartnerships	93
		V
		Value-basedmanagement	37

Listofabbreviations

A

AktG GermanStockCorporationActAktiengesetz

B

BIC Brazil,India,China

C

CESR CommitteeofEuropeanSecuritiesRegulators CGU CashGeneratingUnit CO² Carbondioxide

D

DAX Germanstockindex DJ?STOXX DowJonesSTOXX DRS Germanaccountingstandard DSR GermanAccountingStandardsBoard

E

EEG GermanRenewableEnergyAct EPS EarningsperShare

F

FFO/TD FundsFromOperations/TotalDebt

H

HGB GermanCommercialCode

I

IAS InternationalAccountingStandards IASB InternationalAccountingStandardsBoard IFRIC InternationalFinancialReportingInterpretations CommitteeandinterpretationofIFRIC IFRS InternationalFinancialReportingStandards IT Informationtechnology

L LTI

Long-TermIncentiveplan

M

MENA MiddleEast&NorthAfrica MitbestG GermanCodeterminationLaw MTI Mid-TermIncentiveplan

O

OTC Over-the-counter, in finance an off-exchange transaction betweenfinancialmarketplayers

R

ROCE ReturnonCapitalEmployed

S SPE

SpecialPurposeEntity

T TKVA ThyssenKruppValueAdded

V

VorstAG ActontheAppropriatenessofManagementRemuneration

W

WACC WeightedAverageCostofCapital WpHG GermanSecuritiesTradingAct

Indexoftablesandgraphics

Toourshareholders

Corporate?Governance?report
ThreeLinesofDefensemodel	14
ExecutiveBoardcompensation2012/2013	21
SupervisoryBoardcompensation2012/2013	24
CompensationfromsupervisoryboarddirectorshipswithintheGroup	25

ThyssenKrupp?stock
KeydataofThyssenKruppstock	26
PerformanceofThyssenKruppstock	26
HighsandlowsofThyssenKruppstock	27
AnalystrecommendationsforThyssenKruppstock	28

Combinedmanagementreport Profile?and?strategy

BusinessopportunitiesforThyssenKrupp	31
ThyssenKrupp–StrategicWayForward	31

Group?review

ThyssenKruppinfigures	39
Orderintakebybusinessarea	40
Salesbybusinessarea	40
AdjustedEBITbybusinessarea	41
Specialitemsfromcontinuingoperations	42
ThyssenKruppValueAddedTKVA bybusinessarea	42
Investmentbybusinessarea	43
Netfinancialdebt	45
Rating	46

Business?area?review

ComponentsTechnologyinfigures	49
ElevatorTechnologyinfigures	50
IndustrialSolutionsinfigures	51
MaterialsServicesinfigures	52
SteelEuropeinfigures	53
SteelAmericasinfigures	54

Results?of?operations?and?financial?position Cashandcashequivalents 58 ThyssenKrupp?AG ThyssenKruppAGstatementoffinancialposition 66 ThyssenKruppAGstatementofincome 66 Macro?and?sector?environment Grossdomesticproduct2013,2014 71 Situationonimportantsalesmarkets 72 Salesbyregion 74 Salesbycustomergroup2012/2013 74 Materialsexpensebybusinessarea 74 Materialsexpensebybusinessareaas%ofsales2012/2013 75 Opportunities?and?risks OpportunityandriskreportingatThyssenKrupp 79 Non-financial?performance?indicators Researchanddevelopment,costs 91 Employeesbyregion 92 Employeesbybusinessarea 92 AdditionalGroupHRindicators 92

Ongoingexpenditureonenvironmentalprotection 95

Contactand2013/2014dates

For?more?information?please?contact:

Communications Telephone+49201844-536043 Fax+49201844-536041 E-mailpress@thyssenkrupp.com

Investor?Relations E-mailir@thyssenkrupp.com

Institutional?investors?and?analysts Telephone+49201844-536464 Fax+492018456-531000

Private?investors Infoline+49201844-536367 Fax+492018456-531000

Address

ThyssenKruppAG ThyssenKruppAllee1,45143Essen,Germany Postfach,45063Essen,Germany Telephone+49201844-0 Fax+49201844-536000 E-mailinfo@thyssenkrupp.com www.thyssenkrupp.com

2014/2015?dates

January?17,?2014 AnnualGeneralMeeting

February?14,?2014 Interimreport 1stquarter2013/2014OctobertoDecember Conferencecallwithanalystsandinvestors

May?13,?2014

Interimreport 1sthalf2013/2014OctobertoMarch Conferencecallwithanalystsandinvestors

August?14,?2014 Interimreport 9months2013/2014OctobertoJune Conferencecallwithanalystsandinvestors

November?20,?2014 Annualpressconference Analysts'andinvestors'conference

January?30,?2015 AnnualGeneralMeeting

Forward-looking?statements

Thisdocumentcontainsforward-lookingstatementsthatreflectmanagement'scurrent 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 anticipatedsynergiesandtheactionsofgovernmentregulators.Ifanyoftheseorother risksanduncertaintiesoccur,oriftheassumptionsunderlyinganyofthesestatements proveincorrect,thenactualresultsmaybemateriallydifferentfromthoseexpressedor impliedbysuchstatements.ThyssenKruppdoesnotintendorassumeanyobligationto updateanyforward-lookingstatementstoreflecteventsorcircumstancesafterthedate ofthesematerials.

Rounding?differences?and?rates?of?change

Percentagesandfiguresinthisreportmayincluderoundingdifferences.Thesignsused toindicateratesofchangearebasedoneconomicaspects:Improvementsareindicated by a plus + sign, deteriorations are shown in brackets . Very high positive and negativeratesofchange≥500%or≤100%areindicatedby++and−−respectively.

Variances?for?technical?reasons

For technical reasons there may be variances between the accounting documents containedinthisannualreportandthosesubmittedtotheFederalGazetteBundesanzeiger.

ThisEnglishversionoftheannualreportisatranslationoftheoriginalGermanversion; in the eventofvariances, theGerman version shall takeprecedence overthe English translation.

Both language versions of the annual report can be downloaded from the internet at www.thyssenkrupp.com.Aninteractiveversionoftheannualreportisalsoavailableon ourwebsite.

Wewouldbepleasedtoansweranyquestionsyoumayhave:

Telephone+49201844-536367and+49201844-538382 Fax+492018456-531000 E-mailir@thyssenkrupp.com

ThyssenKrupp AG ThyssenKrupp Allee 1 45143 Essen, Germany www.thyssenkrupp.com