Interim report 3rd quarter 2006 – 2007 03

April 01 – June 30, 2007

interim report 3rd quarter 2006/2007

April 01 – June 30, 2007

01 Contents

02 The Group in figures

03 Interim management report

03 Group review
09 Segment review
19 Innovations
20 Employees
21 Financial position
22 Risk report
22 Subsequent events, opportunities and outlook

25 Interim financial statements

25 Condensed consolidated statement of income
26 Condensed consolidated balance sheet
27 Condensed consolidated cash flow statement
28 Condensed consolidated statement of recognized income and expense
29 Notes to the interim condensed consolidated financial statements

36 Further information

36 Report by the Supervisory Board Audit Committee
37 Contact
37 Dates

The financial statements of the ThyssenKrupp Group are prepared in accordance with International Financial Reporting Standards (ifrs). This interim report was published on August 10, 2007.

The Group in figures

Group

			3rd quarter comparatives				Year-to-date comparatives
		3rd quarter ended June 30, 2006	3rd quarter ended June 30, 2007	Change	Change %	9 months ended June 30, 2006	9 months ended June 30, 2007	Change	Change %
Order intake	million €	12,439	15,552	3,113	25	36,770	42,815	6,045	16
Sales	million €	12,138	13,444	1,306	11	34,866	38,890	4,024	12
EBITDA	million €	1,290	1,728	438	34	3,466	4,266	800	23
Income*	million €	806	1,219	413	51	2,004	2,853	849	42
Net income	million €	468	759	291	62	1,164	1,664	500	43
Basic earnings per share	€	0.87	1.49	0.62	71	2.20	3.25	1.05	48
Employees (June 30)		186,695	189,260	2,565	1	186,695	189,260	2,565	1

* before taxes

		Sept. 30, 2006	June 30, 2007
Net financial liabilities/(receivables)	million €	(747)	806
Total equity	million €	8,927	9,855

Segments

	Order intake (million €)		Sales (million €)		Income* (million €)		Employees
	3rd quarter ended June 30, 2006	3rd quarter ended June 30, 2007	3rd quarter ended June 30, 2006	3rd quarter ended June 30, 2007	3rd quarter ended June 30, 2006	3rd quarter ended June 30, 2007	June 30, 2006	Sept. 30, 2006	June 30, 2007
Steel	3,144	3,262	3,151	3,413	386	428	38,384	38,840	38,950
Stainless	1,921	1,943	1,650	2,608	126	296	12,138	12,197	12,187
Technologies	2,688	5,700	2,835	2,815	151	155	55,201	54,757	54,128
Elevator	1,173	1,309	1,070	1,179	98	106	35.579	36,247	38,556
Services	3,841	4,122	3,821	4,308	168	218	38,830	40,163	43,098
Corporate	388	24	388	24	(119)	21	6,563	5,382	2,341
Consolidation	(716)	(808)	(777)	(903)	(4)	(5)
Group	12,439	15,552	12,138	13,444	806	1,219	186,695	187,586	189,260

* before taxes

Interim management report

Group review

ThyssenKrupp – profitable growth continued

The ThyssenKrupp success trend continues unabated. The favorable market environment and above all our good strategic positioning are paying off. All segments produced a very pleasing performance in the 3rd quarter 2006/2007. We recorded double-digit growth rates in order intake and sales. The Group's earnings before taxes increased to €1,219 million from €806 million in the prior-year quarter. In the first nine months of the current fiscal year the Group has thus achieved earnings before taxes of €2,853 million.

The highlights for the 3rd quarter 2006/2007 were as follows:

° Compared with the prior-year quarter, order intake increased by 25% to €15.6 billion.
° Sales rose by 11% to €13.4 billion.
° ebitda improved from €1,290 million in the prior year to €1,728 million, an increase of 34%.
° Earnings before taxes increased by 51% to €1,219 million from €806 million in the prior-year quarter.
° Earnings per share increased by 71% to €1.49 from €0.87 in the prior-year quarter.
° Net financial liabilities at June 30, 2007 were €806 million. This represents an increase of €1,553 million compared with September 30, 2006, when we reported net financial receivables of €747 million. On June 30, 2006 net financial liabilities stood at €496 million.

Earnings target for 2006/2007 raised

We expect the overall positive performance to continue in the further course of the year. For fiscal year 2006/2007 we anticipate an increase in sales to over €50 billion. Based on our better-than-expected earnings performance in the first three quarters of fiscal 2006/2007, we currently forecast full-year earnings before taxes and major nonrecurring items of around €3.6 billion, including nonrecurring items €3.2 billion.

Our mid-term and longer-term targets remain unchanged. By 2010 the aim is to achieve sustainable earnings before taxes and major nonrecurring items of €4 billion on sales of around €60 billion. In the longer term, particularly after the completion of our major investment projects in North America, we expect sales in the region of €65 billion and earnings before taxes and major nonrecurring items of €4.5 to 5.0 billion.

Favorable economic environment

The strong expansion of the world economy continued as expected in the 1st half of 2007. Prices increased further on the international energy and raw material markets but despite this the pace of global growth remained robust.

In the euro zone, growth in the first half of 2007 will likely turn out stronger than previously expected. Particularly pleasing was the improvement in Germany, where above all dynamic investment activity contributed to a positive economic picture. The us economy slowed appreciably in the first months of the year as a result of a weak housing market and declining private spending. However, growth in the 2nd quarter was much stronger again. Japan remained on a moderate growth track due to continuing solid foreign and domestic demand.

The developing countries of Asia, Latin America and Central and Eastern Europe again posted strong economic growth. The high pace of expansion in China and India continues unabated, and the majority of the Central and Eastern European countries are growing extremely strongly.

In the sectors of importance to ThyssenKrupp the picture was as follows:

° The positive economic environment benefited the international steel markets. Crude steel production in the 1st half was 652 million metric tons, 8.4% up from the corresponding prior-year period. A significant part of this growth was again attributable to China, which expanded its production by 17.8% to 237 million metric tons. Even excluding China, production increased by 3.6%. The European Union produced 2.7% more steel than in the comparable prior-year period. The German steel industry reported growth of 5.2% to 24.5 million metric tons, with its facilities operating at full capacity. There was a slight fall in production in the nafta region, where still high inventories dampened steel demand. After an outstanding start in the 1st calendar quarter, steel users in the eu also reported above-trend production growth in the 2nd quarter 2007. As a result, shipments of carbon steel flat products by Western European suppliers were again at the high level of the comparable prior-year quarter. However, at the beginning of the summer period demand settled at a slightly more moderate level. Not least as a result of further rising imports from third countries in the course of the year, inventory levels at end users and particularly at distributors showed a large increase. Despite the generally high level of supply, average steel prices in the 2nd quarter 2007 were higher than in the prior quarter; slight pressure on prices in Southern Europe remained largely confined to this region.
° The decline in orders for stainless steel flat products that began at the start of the 1st quarter 2007 continued, despite generally satisfactory demand from end users. The reason for this initially was the sharp increase in inventory levels at distributors and service centers that took place in the course of 2006 as a result of imports. This led to a significant drop in ordering activity. The situation was compounded by the collapse in the nickel price from the beginning of June. After reaching a new record level of us\$54,100/t on May 21, 2007, the nickel price fell by almost us\$20,000/t by the end of June 2007. The reason for this price erosion was the increasingly evident decrease in nickel demand from stainless producers due to weak orders from distributors. Added to this was the increasing product mix shift towards lower-nickel or nickel-free stainless grades. In addition,

the London Metal Exchange announced it was changing the rules for nickel trading and eliminating a number of mechanisms which had previously kept available nickel positions artificially scarce and trading prices artificially high. Mirroring the previous decline in orders, deliveries of stainless cold-rolled products began to fall sharply in the middle of the 2nd quarter 2007. Base prices slipped in the course of the 1st half 2007, reflecting increased alloy surcharges, especially for nickel, and a sharp rise in third-country imports. In North America, the market environment for stainless flat products remained positive. However, the effects of the raw material cost trend on the ordering behavior of distributors were felt here too. In Asia, weaker market demand led to a decline in prices. Despite the production cutbacks announced and in some cases already implemented by the large Chinese producers, there is still significant oversupply and therefore continuing pressure to direct surplus capacities into exports. In the area of nickel alloys, customers are taking a wait-and-see approach in view of the still high raw material prices. The market environment for titanium remained generally positive.

° The main growth impetus on the international auto market came from the emerging nations. In China, now the world's third-largest auto manufacturer, production in the 1st half 2007 was up by around a fifth. Vehicle demand also rose strongly in Brazil. By contrast, production in North America was down from a year earlier. Sharply increased gasoline prices impacted sales of light trucks and cars. In the European Union, new car registrations were almost level with the comparable prioryear period. New car sales in Germany weakened considerably, also as a result of the vat increase. However, strong export demand led to a large increase in production. The German truck market also remains positive.
° The global mechanical engineering industry remained on growth track thanks to the continuing robust world economy and increased capital spending. In Germany in particular, production of machinery and equipment remained at a high level. Both domestic and foreign orders increased sharply in the 1st half 2007. Export demand was particularly strong at manufacturers of elevators and escalators. The positive trend also continued in the German plant engineering sector.
° The growth in worldwide construction output continues to be driven by Asia and the countries of Central and Eastern Europe. In the usa, the housing market remained weak. The German construction industry recorded significant growth in orders and output in the first months of 2007. The main impetus came from commercial construction, thanks to continuing high investment.

ThyssenKrupp in figures

		3rd quarter ended June 30, 2006	3rd quarter ended June 30, 2007	9 months ended June 30, 2006	9 months ended June 30, 2007
Order intake	million €	12,439	15,552	36,770	42,815
Sales	million €	12,138	13,444	34,866	38,890
EBITDA	million €	1,290	1,728	3,466	4,266
Income*	million €	806	1,219	2,004	2,853
Employees (June 30)		186,695	189,260	186,695	189,260

* before taxes

Order intake and sales

ThyssenKrupp sustained its successful performance in the 3rd quarter 2006/2007. Demand for our products and services grew strongly in a generally favorable market environment. Order intake improved by 25% from the prior-year quarter to €15.6 billion.

The Group's sales increased by 11% to €13.4 billion. The Steel segment profited from higher steel prices. The higher sales at Stainless are due to sharply increased alloy surcharges, reflecting the trend in nickel prices. Despite business disposals and the depreciation of the us dollar, sales at Technologies remained more or less stable. Elevator further expanded its positions worldwide. Business at Services was boosted by continuing strong demand for materials and an expansion in sales activities.

Further acquisitions to round out the portfolio and improve market access were made in the 3rd quarter 2006/2007, especially in the Technologies, Elevator and Services segments. In the Technologies segment the main items were the acquisition of the us market leader in kiln servicing and repairs to strengthen cement plant manufacturer Polysius and the conclusion of agreements to purchase a construction equipment component manufacturer in Italy to strengthen Berco. Elevator further expanded its market position in Eastern Europe with the acquisition of a Croatian elevator company. As part of its Eastern Europe strategy, Services purchased one of Slovakia's biggest steel distributors. In moving to focus on industrial services the segment also disposed of a marginal activity operating in the temping sector.

In addition, a commercial real estate portfolio of 25 properties, including office buildings and other commercially used properties, was sold to a consortium of buyers. In connection with the planned move of ThyssenKrupp ag to the new quarter in Essen this real estate package also includes the Dreischeibenhaus building in Düsseldorf, the current headquarters of ThyssenKrupp until the move to Essen.

Since the merger the Group has divested businesses representing sales of €9.1 billion and acquired businesses with sales of €8.2 billion.

Income

ThyssenKrupp achieved earnings before taxes of €1,219 million in the 3rd quarter 2006/2007, compared with €806 million in the same quarter a year earlier. This represents another quarterly earnings record. Included in the figure is a profit of €115 million from the sale of a package of operating real estate and properties held as financial investments, in connection with the concentration of our head office locations. In addition, earnings were impacted among other things by impairment charges of €76 million for assets owned by the Auto business unit of the Steel segment.

The biggest profit increase was achieved by the Stainless segment, reflecting higher base prices and strong end user demand in the reporting period. Services and Steel also achieved significant profit hikes. The rise in earnings in the Services segment is due to high price and demand levels in Europe and a large increase in profits at Special Products. Steel expanded its profits due to price and performance improvements and steady high demand. Elevator increased its earnings mainly as a result of business expansion in the Iberian Peninsula and through higher sales and improved performance in North America. In the Technologies segment, higher profits at Plant Technology offset lower earnings at Mechanical Components, resulting in a small net increase.

Net sales increased more than the cost of sales, with the result that gross margin improved from 18% to 19%. Administrative and selling expenses also increased less than net sales. Other operating income increased in the reporting quarter due to the income from the sale of the real estate package, with the absence of insurance recoveries received in the prior-year quarter in connection with fire losses working in the opposite direction. The increase in other operating expense was due to goodwill impairment charges in the reporting quarter.

After deducting tax expense, net income for the period was €759 million. Deducting from this the minority interest in profits of €30 million, earnings per share is €1.49, compared with €0.87 in the comparable prior-year quarter.

Income* million €

2005/2006	1st quarter	425
	1st half	1,198
	9 months		2,004
	12 months			2,623
2006/2007	1st quarter	1,062
	1st half	1,634
	9 months			2,853

*before taxes

Net financial liabilities/receivables and capital expenditures

At June 30, 2007 the Group had net financial liabilities of €806 million. At September 30, 2006 we reported net financial receivables of €747 million. The €1,553 million increase in net financial liabilities mainly reflects the rise in working capital due to business expansion, increased capital expenditures, the dividend payment and the fine payment in the Elevator segment. The sale of various real estate assets resulted in a cash inflow. Compared with June 30, 2006 net financial liabilities increased by €1,302 million.

Capital expenditure in the 3rd quarter 2006/2007 totaled €719 million, 68% more than in the prioryear quarter. €689 million was invested in property, plant and equipment and intangible assets, and €30 million in the acquisition of businesses, shareholdings and other financial assets.

Net financial liabilities/(receivables) million €

New steel plants in the usa and Brazil

The Steel and Stainless segments plan to build a joint production and distribution location in Mount Vernon/Alabama in the southern usa to significantly strengthen ThyssenKrupp's position in North America. What tipped the scales in favor of Mount Vernon were the site's cost advantages.

The centerpiece of the new complex will be a hot strip mill which will primarily process slabs from the new CSA steel mill in Brazil. At the same location ThyssenKrupp Stainless will build a plant to manufacture stainless flat products. This will include in particular a complete stainless steel mill comprising electric arc furnace, aod converter and continuous caster. The slabs it produces will be processed into hot-rolled coil on ThyssenKrupp Steel's hot strip mill. Following on from the hot strip mill the two segments will operate their own cold rolling and coating facilities.

To realize the project the project companies ThyssenKrupp Steel USA, llc and ThyssenKrupp Stainless USA, llc have already been established and directors appointed.

The construction of the new mill in Brazil is making good progress in all areas with ground and foundation work. The major contracts have been awarded, and work is proceeding to schedule and budget. In addition to the project team a start has been made on hiring personnel – with a great response from the Brazilian labor market – and on training operating staff.

segment review

Steel: Earnings further improved

Steel in figures

		3rd quarter	3rd quarter	9 months	9 months
		ended	ended	ended	ended
		June 30, 2006	June 30, 2007	June 30, 2006	June 30, 2007
Order intake	million €	3,144	3,262	9,350	9,895
Sales	million €	3,151	3,413	9,011	9,920
Income*	million €	386	428**	1,079	1,298**
Employees (June 30)		38,384	38,950	38,384	38,950

* before taxes ** €504 million and €1,374 million respectively excl. impairment loss Metal Forming (€76 million)

In a continuing robust economic environment the Steel segment continued to perform very successfully. The value of orders received increased by 4% to €3.3 billion. With order volumes down this was exclusively due to higher prices. Sales rose by 8% to €3.4 billion. Here too, increased prices in quarterly and annual contracts were the key factor. Steel shipments almost reached the level of the prior year. With production higher than shipments there was a slight increase in finished-product inventories.

In the Steelmaking business unit crude steel output was unchanged from the prior year at 3.5 million metric tons. Slab purchases from Hüttenwerke Krupp Mannesmann were higher than in the prior-year period, which was marked by outage-related losses. Slab purchases were made from third parties to ensure maximum utilization of our hot-rolled capacities.

The Industry business unit reported an increase in sales which was due solely to higher prices. Our customers in the steel-using sectors continue to have a good workload but also have high inventories. Shipments were slightly lower than a year earlier, while the decline in order volumes was more pronounced for seasonal reasons. However, this was offset by higher prices in quarterly contracts. Once again we were unable to supply all quantities required, particularly the Heavy Plate profit center of ThyssenKrupp Steel. The European steel service centers reported significantly higher sales than a year earlier, reflecting slightly increased volumes and higher prices. A new service center in Poland began operation in the reporting period. The moderate sales increase in the construction elements business was exclusively price-related. Shipments decreased.

In the Auto business unit an increase in contract prices compared with the year before boosted sales. Shipments generally remained stable at a high level. In a robust automobile market, orders from customers in Europe remained high, more than compensating for lower volumes at our North American steel service centers. The sales expansion achieved at Tailored Blanks was also the result of higher volumes and prices. A new subsidiary was established in Turkey, the first tailored blanks production plant in this growth market. The Metal Forming business, which manufactures body and chassis components for the automobile industry and was integrated into the steel segment with retroactive effect at October 01, 2006, also expanded its sales in the reporting quarter. This was mainly due to higher steel prices which were passed on to customers. In addition, the sales base was expanded with the acquisition of chassis activities in China and Brazil last year and this.

Higher tinplate shipments together with volume- and price-related growth in the other activities contributed to the rise in sales in the Processing business unit. The encouraging growth in medium-wide strip business was sustained. Demand for grain-oriented electrical steel remained robust, leading to a further increase in prices.

Income

The Steel segment increased its profit in the reporting quarter by €42 million to €428 million. Contained in this figure is an impairment charge of €76 million in the Metal Forming activity of the Auto business unit. Excluding this charge, pre-tax income amounts to €504 million.

The Steelmaking business unit directs the logistics and metallurgy activities, including the newbuild project in Brazil. The business unit achieved break-even earnings.

The Industry business unit again achieved a significant year-on-year increase in profits in the 3rd quarter. The improvements stemmed in particular from the ids (Industry, Distribution and Steel Service) and heavy plate activities. Key factors were higher average prices and cost reductions as a result of efficiency-enhancement measures, which outweighed increased starting material costs and a slight decline in shipments. The construction elements business reported lower profits on reduced volumes. The European steel service centers returned significantly higher profits in a good market environment.

Disregarding the €76 million impairment charge at Metal Forming, the Auto business unit achieved a substantial increase in profits as a result of the improved price situation and the effects of the performance-enhancement programs. Shipments remained generally stable at a high level. Running counter to this were cost increases on the procurement side. The North American steel service activities recorded a decline in profits due mainly to the lower us dollar/euro exchange rate. At Tailored Blanks the ramp-up of the new plant in Sweden led to growth in profits. Excluding the impairment charge, earnings at Metal Forming were down slightly from the year-earlier quarter owing to start-up costs for new products.

The Processing business unit reported a further significant increase in earnings, which was due mainly to higher prices brought about in part by an improved product mix in electrical steel. The medium-wide strip business achieved strong growth in profits with higher prices and increased shipments, though higher costs for starting material impacted earnings. Income in the tinplate business was slightly higher than a year earlier.

Stainless: Strong sales growth

Stainless in figures

		3rd quarter	3rd quarter	9 months	9 months
		ended	ended	ended	ended
		June 30, 2006	June 30, 2007	June 30, 2006	June 30, 2007
Order intake	million €	1,921	1,943	5,546	6,041
Sales	million €	1,650	2,608	4,628	6,986
Income*	million €	126	296	185	912
Employees (June 30)		12,138	12,187	12,138	12,187

* before taxes

The Stainless segment reported a large year-on-year decline in 3rd quarter order volumes. Order intake for hot-rolled strip in particular was significantly lower. In terms of value, however, order intake remained roughly unchanged owing to the still high nickel price. Orders were impacted by continuing high imports, excessive inventories at distributors, increasing product mix shifts towards low-nickel austenitics or ferritic materials, and by the slump in demand triggered by the recent sharp drop in the price of nickel.

At around 580,000 metric tons, total deliveries in the Stainless segment were 12% lower than a year earlier, primarily due to lower shipments of hot-rolled strip.

Sales in the Stainless segment climbed 58% to €2.6 billion. This strong growth, despite the reduction in deliveries, is attributable to the enormous increase in alloy surcharges, especially for nickel.

The ThyssenKrupp Nirosta business unit reported a significant fall in demand from distributors in Germany due to high inventories and the nickel price erosion. However, sales increased strongly. The cold-rolled annealing/pickling line almost completely destroyed by the fire at the Krefeld cold rolling mill in June 2006 will start production again in fall 2007. The hot-rolled line which was also damaged went back into operation in the 1st quarter 2007.

ThyssenKrupp Acciai Speciali Terni also felt the effect of reduced demand for stainless products from service centers, distributors and tube manufacturers, with order intake showing a sharp decline. Despite this, sales increased substantially in the 3rd quarter. A changed product mix with a higher proportion of ferritic grades and the new finishing shop at the Terni location are having an increasingly positive effect by increasing value added and thus allowing us to do more business with end customers. In June 2007 plans were unveiled for the step-by-step relocation of production from Turin to Terni. This relocation is part of an extensive program of measures to further improve competitiveness and expand capacities at the Terni plant in the medium term. Connected with this is an additional investment program to increase meltshop and processing capacities and expand the product range. The aim is to develop Terni into a world-class integrated stainless mill.

ThyssenKrupp Mexinox reported very strong order volumes and significantly higher sales in the 3rd quarter, further strengthening the company's market position in the nafta region.

Shanghai Krupp Stainless was unable to maintain the overall volume of orders received in the prioryear quarter owing to weak demand on the Chinese market. However, business with ferritic stainless steels was expanded. Sales were up significantly from the prior-year quarter.

In the nickel alloys business of ThyssenKrupp VDM, customers adopted a wait-and-see policy in a generally stable plant construction market owing to the high cost of alloying elements. Demand for titanium remained strong. The aerospace, oil, gas and chemical engineering sectors continued to show high demand. Order intake and sales were significantly higher than the year before. The relocation of wire production from Bärenstein to Werdohl is proceeding to schedule. The aim of this move is to secure modern and efficient production capacities which will remain competitive over the long term. Work on the building of the new forging line at the Unna location is likewise on schedule.

The ThyssenKrupp Stainless International business unit reported a strong increase in order intake and sales in the 3rd quarter 2006/2007. The newly built service centers for the United Kingdom and Central and Eastern Europe also contributed to this.

Income

The Stainless segment increased its profit by €170 million to €296 million. The growth in earnings in the reporting period reflects higher base prices compared with the prior-year quarter in conjunction with strong demand for stainless steel products from end consumers and the extremely positive effect of the nickel price.

As a result of the improved price levels and performance-enhancement programs, ThyssenKrupp Nirosta reported significantly higher profits. ThyssenKrupp Acciai Speciali Terni also achieved significant growth in earnings thanks to higher base prices and the effects of efficiency programs. Restructuring charges in Terni and in connection with the relocation of production from Turin to Terni impacted earnings in a two-digit million amount. Both the titanium business and the forging activities made significant contributions to earnings. In a generally stable nafta market, ThyssenKrupp Mexinox also reported appreciable growth in income at a high level. The growth in profits at Shanghai Krupp Stainless in a market environment which remains extremely difficult was mainly due to increased exports and hire work carried out for ThyssenKrupp Nirosta, together with cost advantages from the start-up of the hot-rolled annealing and pickling line. The price increases implemented by Chinese producers in the 3rd quarter are still not enough to offset the substantial increases in raw material prices.

ThyssenKrupp VDM achieved higher profits thanks to the positive situation on the oil, gas and chemical engineering markets.

The ThyssenKrupp Stainless International business unit equaled its good prior-year profit.

Continued high imports from Asia increased pressure on base prices in the reporting period. The fall in the nickel price from early June led to greater purchasing restraint and increased destocking at distributors. Demand, which had already been subdued, weakened further as a consequence. The resultant drop in order intake and associated production cutbacks will only start to impact earnings in the next quarter. In addition, inventory valuation adjustments are expected as a result of the sharp fall in nickel prices.

Technologies: Very good order situation

Technologies in figures

		3rd quarter	3rd quarter	9 months	9 months
		ended	ended	ended	ended
		June 30, 2006	June 30, 2007	June 30, 2006	June 30, 2007
Order intake	million €	2,688	5,700	8,415	12,211
Sales	million €	2,835	2,815	8,605	8,411
Income*	million €	151	155	405	411
Employees (June 30)		55,201	54,128	55,201	54,128

* before taxes

Order intake and sales

The order situation in the Technologies segment remained very encouraging. At €5.7 billion, order intake more than doubled from a year earlier. Plant Technology and Marine Systems in particular reported high order levels. Despite disposals and the impact of the depreciation of the us dollar, sales at €2.8 billion were virtually unchanged from the prior-year quarter. As a result of the high order intake, orders in hand increased to around €16 billion, sufficient to cover more than one year's sales.

The Plant Technology business unit again reported very strong orders. In the chemical plant sector they included a major order for a new fertilizer complex in Egypt. As a result, the business unit's order intake quadrupled against the prior-year quarter. The continued growth in orders also led to an increase in sales. High raw material and energy prices together with strong global demand for cement have created a very good investment climate for the business unit's products, resulting in a good project situation. A-C Equipment Services based in Milwaukee, usa was acquired to strengthen and expand the service business. The market leader in cement kiln servicing and repairs, the company represents an optimum strategic fit with the segment's cement plant activities.

With the booking of the F 125 frigate program for the German Navy and six further yachts in the 3rd quarter 2006/2007, the Marine Systems business unit made a significant contribution to the segment's order growth. Added to this, the repair and service business continued to perform well, reporting a significant increase in order volumes against the prior-year period. Sales were lower than the year before for processing reasons.

In the Mechanical Components business unit, the positive demand trend continued in the reporting quarter. Order intake matched the high year-earlier level. Sales slipped slightly. Significant sales increases for large-diameter bearings and rings were not quite enough to offset reductions resulting from the weaker us dollar, the sale of the Brazilian foundry and weaker demand in the usa.

The Automotive Solutions business unit reported a further improvement in order intake. In particular the steering systems, axle modules and assembly equipment activities contributed to this. Sales were also higher.

Transrapid achieved higher sales than a year earlier.

Income

The Technologies segment returned a profit of €155 million in the 3rd quarter 2006/2007, compared with €151 million in the prior-year quarter which included disposal gains. Significantly improved profits at Plant Technology, higher earnings at Marine Systems and a further profit at Transrapid outweighed the fall in income at Mechanical Components, which was caused mainly by weaker business in North America and the unfavorable effect of the us dollar/euro exchange rate.

Following on from the good income figures reported in the first two quarters, Plant Technology achieved a further significant increase in profits against the prior-year quarter. The main reasons were increased sales with high-margin orders, a good workload and improved earnings from orders.

Marine Systems reported a slight increase in profits. While the submarine and repair and service businesses achieved higher earnings, shipbuilding income was lower overall mainly due to higher costs for processing yacht orders.

Mechanical Components again made the biggest contribution to earnings but was not quite able to equal its prior-year profit. Positive impetus came in particular from continued high demand for largediameter bearings and rings. However, earnings were dampened by weaker us demand for castings and crankshafts together with an unfavorable us dollar/euro exchange rate.

Automotive Solutions again achieved a two-digit million profit, though the year-earlier figure was not quite matched. Key factors were reduced sales in the body shop equipment and tooling activities and higher restructuring expenses for assembly systems.

Transrapid reported a small profit compared with virtually break-even earnings the year before. Income contributions from license billings had a positive effect.

Elevator: On growth track

Elevator in figures

		3rd quarter ended June 30, 2006	3rd quarter ended June 30, 2007	9 months ended June 30, 2006	9 months ended June 30, 2007
Order intake	million €	1,173	1,309	3,637	3,919
Sales	million €	1,070	1,179	3,132	3,350
Income*	million €	98	106	277	(187)
Employees (June 30)		35,579	38,556	35,579	38,556

* before taxes

Order intake and sales

Elevator expanded successfully in the 3rd quarter 2006/2007. Despite negative exchange rate effects, both order intake and sales improved significantly. Order intake climbed 12% to €1.3 billion. Sales were up by 10% to €1.2 billion. Strong business in North America and continued robust demand in China contributed substantially to the growth in new installations. In all regions, service business was further expanded by the global service strategy.

The Central/Eastern/Northern Europe business unit significantly exceeded its year-earlier order intake and sales. This growth was mainly attributable to modernization business in France which remains very pleasing. Business activities in Eastern Europe were expanded with the conclusion of a contract for an airport project in Russia.

The Southern Europe/Africa/Middle East business unit reported a considerable improvement in both order intake and sales. The growth in sales was mainly due to strong business with new installations and services in Spain.

In the Americas business unit, order intake increased slightly and sales significantly despite negative exchange-rate effects. In the usa, the sustained upswing in the non-residential areas of the construction sector boosted new installations business. In addition, the service business was systematically expanded. The business situation in Canada and Brazil was also very encouraging and easily compensated for the slight weakening of activities in Latin America.

The Asia/Pacific business unit significantly expanded order intake and sales despite negative exchange-rate effects. The growth in China is attributable to continued strong demand for new installations. Although the market environment in Korea remains difficult, order intake and sales improved thanks mainly to the expanding service business.

In the Escalators/Passenger Boarding Bridges business unit, order intake increased and sales were unchanged. While business with escalators was down from the year before on account of intensive price competition, business with passenger boarding bridges showed a distinct improvement as a result of the growth in air traffic.

The Accessibility business unit successfully continued its expansion. Strong growth in the main European markets outweighed the slight decline in business in the usa.

Income

Income in the Elevator segment increased by €8 million to €106 million in the 3rd quarter 2006/2007. In the Central/Eastern/Northern Europe business unit, income fell significantly short of the year-

earlier level. The reason for the deterioration was persistent price competition on the key markets of Central Europe and in Eastern Europe which could not be offset by efficiency improvements.

The Southern Europe/Africa/Middle East business unit increased its profit substantially. This was mainly due to the expansion of the Spanish business activities, above all in services. The Portuguese company contributed to the growth in profits in particular in the new installations business.

The Americas business unit reported significantly higher earnings thanks to increased sales, improved margins and enhanced service efficiency in North America. This more than offset the negative exchange-rate effects caused by the depreciation of the us dollar.

The Asia/Pacific business unit reduced its loss considerably. The activities in China returned significantly higher profits as a result of increased sales volumes and efficiency improvements. However, despite the absence of restructuring expenses, the Korean operation reported a loss as a result of the continuing difficult market situation.

The Escalators/Passenger Boarding Bridges business unit posted a lower profit than the year before. Not only was the prior-year figure boosted by positive nonrecurring effects from a disposal and the fair-value recognition of currency hedges, but earnings in the reporting quarter were negatively impacted by continued margin pressure in the escalator activities.

Income in the Accessibility business unit distinctly exceeded the prior-year level. The growth in profits is attributable to the European activities which benefited from the positive market environment.

Services: Sales at all-time high

Services in figures

		3rd quarter ended June 30, 2006	3rd quarter ended June 30, 2007	9 months ended June 30, 2006	9 months ended June 30, 2007
Order intake	million €	3,841	4,122	10,720	12,921
Sales	million €	3,821	4,308	10,270	12,614
Income*	million €	168	218	344	550
Employees (June 30)		38,830	43,098	38,830	43,098

* before taxes

Order intake and sales

The Services segment achieved sales of €4.3 billion in the 3rd quarter, matching the record level of the 2nd quarter and exceeding the comparable prior-year figure by almost €500 million or 13%. Sales were positively influenced once again by the stable situation on the raw and industrial materials markets. The same applies to the distribution activities, which were further expanded worldwide, and to the newly established and acquired companies.

Materials Services International, the segment's largest business unit, again recorded a very strong increase in sales. The positive trend of recent months continued, with demand and prices remaining at encouragingly high levels. Market conditions were favorable in almost all areas, both for our German and almost all our international activities.

Sales at the Materials Services North America business unit fell short of the very good prior-year quarter. The us dollar/euro exchange rate and the price level, which is now below that of other markets, severely hampered imports of flat steel products. By contrast, business with nonferrous metals remained at a pleasingly high level.

The Industrial Services business unit achieved further growth in almost all sectors and regions, including Germany. The new activities in South America made a significant contribution to the sales increase. In the future, Industrial Services will provide all steel mill services for the new ThyssenKrupp Steel plant in Brazil. In North America, the business unit achieved a further improvement in sales despite the unfavorable exchange rate effects.

The Special Products business unit once again recorded a substantial increase in sales. Alongside continuing strong demand and high prices for metallurgical raw materials, an important part was played by the technical systems business and the rolled steel, tube and technical trading activities, which achieved significant growth.

Income

In the 3rd quarter 2006/2007, the Services segment again reported a strong rise in income from €168 million in the prior-year quarter to €218 million.

The highest earnings were returned by the Materials Services International business unit, which further increased its profits as a result of continuing high prices and strong demand as well as the sustainable effects of its performance-enhancement programs.

By contrast, earnings at Materials Services North America fell just short of the very good prior-year figure for sales and exchange-rate reasons and due to expense from the fair-value recognition of commodity futures.

The Industrial Services business unit achieved a slight increase in profits, resulting almost exclusively from domestic business.

Special Products reported a strong increase in earnings compared with the prior year. All areas of the business unit contributed to this improvement.

Corporate includes the Group's head office and internal service providers as well as inactive companies not assignable to individual segments. Also included here is the non-operating real estate, which is managed and utilized centrally by Corporate. The retained assets and liabilities of ThyssenKrupp Budd were also assigned to Corporate. The disposal in the meantime of this company's operations is responsible for the decrease in Corporate's sales.

Corporate reported income of €21 million, an improvement of €140 million compared with the prior-year quarter. Of this amount, €115 million related to the gain on the disposal of real estate as part of ThyssenKrupp's plans to concentrate its head office locations in Germany. Earnings were also boosted by the absence of restructuring costs for the since sold North American automotive activities.

Consolidation mainly includes the results of intercompany profit elimination.

Innovations

2008 Innovation Contest launched

Our annual Innovation Contest helps further improve the climate for innovation in the Group and promote the translation of ideas into promising products and services. Launched in July 2007, this year's contest – the ninth – once again invites employees at all Group companies to submit their ideas and suggestions. In recognition of the importance of environment and climate protection, resource conservation, energy efficiency and lower CO2 emissions, a special innovation prize will be awarded this year to the best project from these areas.

ThyssenKrupp involved in icams

In the reporting quarter, our scientists and engineers once again worked hard to further develop our products and services, frequently in collaboration with customers and external partners. ThyssenKrupp attaches great importance to these partnerships. Worthy of particular note in this respect is our involvement in the establishment of the Interdisciplinary Centre for Advanced Materials Simulation (icams) at the Ruhr University Bochum. A total of €24 million is being raised as starting capital for icams. Half of this amount is being contributed by the state of North Rhine-Westphalia, the other half by industrial partners. ThyssenKrupp is providing €8 million. The institute will drive the development of the materials of tomorrow using innovative multiscale simulation techniques to predict the behavior of metallic materials at different levels of scale, from atomic to macroscopic component level. This provides a deeper understanding of material properties and enables new types of materials to be developed, from which Steel in particular will benefit.

Innovations in the segments

The Steel segment is working to develop advanced steels combining high strength and formability, as well as manufacturing processes optimized for these steels. One example is the unique T3 profile pilot plant which went into operation recently. Using this line, various forming processes can be combined with an integrated laser welding process, allowing the manufacture of light, low-cost tubular profiles for use in auto manufacture in particular. Initial forming and welding tests have confirmed the capabilities and versatility of the line. In parallel, projects are being carried out with customers to demonstrate the potential of the steel profiles in auto body structures. In one project for a Japanese customer a 25% weight saving was achieved with no reduction in the body's structural properties.

Driven by high prices for alloying elements, one key area of innovation at Stainless is the production of low-nickel and low-molybdenum materials with marketable properties. In close collaboration with our customers, we developed a ready-for-market nickel-free material for drinking water pipes to replace a nickel-bearing material. The new material has met with a very positive reception from customers.

Technologies is continuing to develop innovative ways of reducing weight, fuel consumption and emissions for cars and trucks. The results are being offered to automotive OEMs in the form of an integrated concept as an "automotive component kit to reduce CO2 and NOx emissions". This includes lightweighting through the use of high-strength materials, alternative manufacturing processes and load-optimized design. Weight savings of 10%–30% are achieved for crankshafts, camshafts, differential gears and dampers. Another key area addresses ways of lowering fuel consumption by

using new bearing concepts and designs to reduce friction in the engine. Additional CO2 reduction effects are expected from the use of electric steering components and the associated elimination of permanently needed hydraulic assistance.

Elevator launched several system innovations aimed at reducing installation cost and time. Further advances were also made in the area of standard cabs. These include design modifications which reduce weight and thus cut energy requirements during operation.

The Services segment achieved success with projects in the area of railway equipment and civil engineering. In early May 2007, GfT Gleistechnik started laboratory trials of its new slab track system "Neue Feste Fahrbahn – nff". This system combines the advantages of a prefabricated concrete frame with mounting on injected piles, eliminating most of the costly and time-consuming work otherwise required for ground improvement. At the Bauma exhibition in Munich in April 2007, ThyssenKrupp Tiefbautechnik presented a so-called swiveling vibrator for pile-driving applications. Its advantage lies in the simplified handling of the piling. The response to the vibrator was positive; inquiries were received from Germany and abroad and initial sales were made.

Employees

Employee numbers higher due to expansion of service business

On June 30, 2007, ThyssenKrupp had 189,260 employees worldwide, a rise of 1,674 or 0.9% compared with the end of the last fiscal year. While workforce figures in the Steel, Stainless and Technologies segments remained largely stable, there were significant increases in the servicerelated segments Elevator and Services.

The higher headcount resulted primarily from the expansion of activities outside Germany, where 104,699 people were employed at the end of June. This was 1.1% more than at September 30, 2006 and raised the percentage of the workforce outside Germany to 55%.

In Germany, employee numbers rose by 0.6% to 84,561. This means that 45% of the workforce is employed in Germany.

ThyssenKrupp employee share program

In April 2007, some 81,600 employees at over 150 German subsidiaries were given the opportunity to acquire ThyssenKrupp shares on special terms for the fifth time. Around 45,600 employees decided to purchase employee shares, representing a participation rate of 56%.

The employee share program is based on the so-called 50/50 model, i.e. the employee pays 50% of the price of the shares and the remaining 50% is paid by the employer. Under German tax law, the 50% employer allowance is free of tax and social security contributions up to €135. The applicable share price on May 14, 2007 was €41.35. Each package of shares included six shares and was worth €248.10. Under this year's program, employees bought a total of 274,000 shares worth €11.3 million. The Group incurred costs of €6.1 million.

In the 3rd quarter of fiscal 2006/2007, a third share program was also carried out in France. Around one in two of the roughly 6,000 eligible employees purchased ThyssenKrupp shares.

Financial position

Analysis of cash flow statement

The amounts taken into account in the cash flow statement correspond to the balance sheet item "Cash and cash equivalents".

There was a cash inflow of €0.5 billion from operating activities in the reporting quarter compared with over €1.9 billion in the prior-year quarter. The roughly €1.5 billion decrease in operating cash flows was mainly due to the rise in working capital as a result of business expansion.

Cash outflow from investing activities increased by €0.4 billion to €1.5 billion, primarily due to an increase of €0.8 billion to €1.9 billion in capital expenditure on property, plant and equipment, mainly for the construction of the steel mill in Brazil. Proceeds from disposals of financial assets and property, plant and equipment increased by €0.3 billion compared with the prior-year period.

As a result of these developments, free cash flow, i.e. the sum of operating cash flows and cash flows from investing activities, decreased by €1.8 billion to €(1.0) billion.

Cash outflow from financing activities decreased by €0.3 billion to €0.7 billion. The higher cash outflow in the prior-year quarter was due to the repayment of a bond in the amount of €0.5 billion, partly offset by the proceeds from the sale of ThyssenKrupp AG treasury shares to the Alfried Krupp von Bohlen und Halbach Foundation in November 2005 in the amount of €0.3 billion.

Analysis of balance sheet structure

The following balance sheet analysis includes assets and liabilities held for sale which are reported separately in the Group's consolidated balance sheet.

Compared with September 30, 2006 the balance sheet total increased by €1,219 million to €36,949 million.

The increase in property, plant and equipment is mainly due to the progress in the construction of the steel mill in Brazil.

The €1,710 million increase in inventories to €9,120 million, mainly in the Stainless and Services segments, was primarily due to higher raw material prices, especially for nickel, and increased inventory levels caused by sales expansion. The significant decline in the nickel price since the beginning of June is only partly reflected in the inventory valuation.

The business expansion resulted in a significant increase in trade accounts receivable and payable in almost all areas. This effect was cushioned by the disposal of the North American body and chassis business. This disposal also led to a reduction in accrued pension and similar obligations.

The increase in sales tax liabilities caused by the high sales led to a rise in current other liabilities. The roughly €480 million antitrust fine imposed by the eu Commission on ThyssenKrupp Elevator, included in this balance sheet item at March 31, 2007, was settled in the 3rd quarter.

The effects on operating cash flows of the above-mentioned increase in inventories and in trade accounts receivable were more than offset in particular by the Group's net income before depreciation, amortization and deferred taxes, resulting in a net cash inflow from operating activities. Investment in property, plant and equipment led to a cash outflow for capital expenditure. Overall this led to a decrease in cash and cash equivalents by €1,765 million to €2,682 million.

Total equity increased by €928 million to €9,855 million, mainly due to the net income in the first nine months of fiscal 2006/2007 and, running counter to this, the payment of the ThyssenKrupp ag dividend in the amount of €489 million.

Risk report

Global market presence promotes stability

Thanks to a systematic and efficient risk management system, risks at ThyssenKrupp are contained and manageable. There are no identifiable risks which could in the future pose a threat to the existence of the Company. Business processes are well controlled. On major projects in particular, detailed project controls ensure that set objectives are achieved and variances identified in good time. Our global market presence reduces the Group's susceptibility to cyclical price and volume developments in individual regions. Furthermore, our diversified product and customer structure limits our risks from business with individual products, customers and sectors. To hedge against financial risks, we use among other things derivative financial instruments. The information contained in the risk report in the 2005/2006 Annual Report is still valid.

We report on pending lawsuits, claims for damages and other risks in Note 8.

Subsequent events, opportunities and outlook

Subsequent events

Subsequent events between the balance sheet date (June 30, 2007) and the date of authorization for issue (August 06, 2007) are presented in Note 13 to the interim financial statements.

Strong growth to continue

Global growth remains very robust. We continue to expect world GDP to expand by 4.9% in 2007.

The economy in the euro zone and Germany is performing better than anticipated a few months ago, driven in particular by increased capital spending. In Germany, private consumption is also expected to recover in the further course of the year and will contribute to economic growth. Following a weak start to the year, the us economy will pick up slightly. Economic expansion will remain strong in most of the emerging markets.

The main risks to global economic growth are from increasing raw material and oil prices as well as slower-than-expected growth in the usa.

We expect the following developments and opportunities for ThyssenKrupp on the major markets:

° Given the positive overall economic picture, the global steel market is expected to expand further this year. Crude steel output is forecast to increase by at least 6% worldwide. The German steel industry should clearly exceed the 48 million ton mark. Demand for steel will increase disproportionately in China and India. Following oversupply last year, a slight decline in demand is expected in the nafta region. The eu market will be more settled in the remaining months of 2007. Following the strong increase in market supply in the first half, demand is expected to weaken over the rest of the year for inventory-cycle and seasonal reasons. There are no signs of any short-term easing of the situation regarding third-country imports. With production by steel users continuing to grow strongly, steel consumption will increase further.
° In the coming months, the stainless market will be strongly influenced by the development of the nickel price. As the price of nickel declines, distributors have recently been making efforts to run down their stocks quickly, and these efforts will continue in the short term. In the markets which apply alloy surcharges, such as Europe and the usa, the defined calculation methods mean that there will be a two to three month time lag before the lower nickel price impacts stainless prices. As a result of this and continuing high stainless imports to Europe, replenishment purchases by distributors are expected to remain at a low level in the next few months and will necessitate further production adjustments. The underlying industrial demand for stainless steel flat products is stable. The market for high-performance nickel alloy and titanium materials will remain positive.
° The global automotive industry remains on an upward trend. World auto production is expected to increase by around 2% to over 71 million vehicles in 2007. High growth rates are once again expected in China. In the usa, vehicle production will be lower. By contrast, in Western Europe volumes are expected to rise slightly. Despite lower domestic demand, German auto production will expand as a result of booming exports and the relocation of production activities back to Germany.
° With the economy still robust and capital expenditure high, the situation in the global mechanical engineering sector will remain favorable. After China, the highest growth rates are forecast for Germany. Thanks to very strong orders, German mechanical engineering output is expected to grow by 9% in 2007. Germany's large-scale plant construction sector will also continue to perform positively.
° In the construction sector, the countries of Asia and Central and Eastern Europe will continue to report the highest production growth. In the usa, construction output will be down this year due to the weakness of the real estate sector. By contrast, construction activity in Germany remains on an upward curve; however, growth will be lower than last year due to the subdued demand for housing and public-sector construction.

Earnings target for 2006/2007 raised

THYSSENKRUPP AG condensed Consolidated Statement of Income (unaudited)

million €, earnings per share in €

	Note	3rd quarter ended	3rd quarter ended	9 months ended	9 months ended
		June 30, 2006	June 30, 2007	June 30, 2006	June 30, 2007
Net sales	10	12,138	13,444	34,866	38,890
Cost of sales	3	(9,995)	(10,876)	(29,000)	(31,551)
Gross margin		2,143	2,568	5,866	7,339
Selling expenses		(709)	(716)	(2,045)	(2,107)
General and administrative expenses		(586)	(615)	(1,746)	(1,804)
Other operating income	4	161	222	598	565
Other operating expenses	5	(106)	(157)	(361)	(882)
Gain/(loss) on the disposal of subsidiaries, net		(1)	1	11	(5)
Income from operations		902	1,303	2,323	3,106
Income from companies accounted for using the equity method		10	12	22	44
Interest income		62	77	188	210
Interest expense		(167)	(156)	(528)	(493)
Other financial income/(expense), net		(1)	(17)	(1)	(14)
Financial income/(expense), net		(96)	(84)	(319)	(253)
Income before income taxes		806	1,219	2,004	2,853
Income tax expense		(338)	(460)	(840)	(1,189)
Net income		468	759	1,164	1,664
Thereof:
ThyssenKrupp AG's stockholders		446	729	1,125	1,589
Minority interest		22	30	39	75
Net income		468	759	1,164	1,664
Basic and diluted earnings per share	11
Net income (attributable to ThyssenKrupp AG's stockholders)		0.87	1.49	2.20	3.25

See accompanying notes to the unaudited condensed consolidated financial statements.

THYSSENKRUPP AG condensed Consolidated Balance Sheet (unaudited)

Assets million €

Note	Sept. 30, 2006	June 30, 2007
Intangible assets, net	4,703	4,650
Property, plant and equipment, net	8,397	9,019
Investment property	501	409
Investments accounted for using the equity method	445	466
Financial assets	178	147
Deferred tax assets	695	537
Total non-current assets	14,919	15,228
Inventories, net	7,337	9,120
Trade accounts receivable, net	7,105	8,039
Other receivables	1,444	1,761
Current income tax assets	93	119
Cash and cash equivalents	4,446	2,682
Assets held for sale	386	0
Total current assets	20,811	21,721
Total assets	35,730	36,949

Equity and Liabilities million €

	Note	Sept. 30, 2006	June 30, 2007
Capital stock		1,317	1,317
Additional paid in capital		4,684	4,684
Retained earnings		3,358	4,449
Cumulative income and expense directly recognized in equity		(149)	(314)
thereof relating to disposal groups (Sept. 30, 2006:(34))
Treasury stock		(697)	(697)
Equity attributable to ThyssenKrupp AG's stockholders		8,513	9,439
Minority interest		414	416
Total equity	7	8,927	9,855
Accrued pension and similar obligations		8,018	7,678
Other provisions		652	687
Deferred tax liabilities		818	980
Financial liabilities		2,946	2,638
Other liabilities		50	125
Total non-current liabilities		12,484	12,108
Other provisions		1,598	1,475
Current income tax liablilities		560	724
Financial liabilities		842	996
Trade accounts payable		4,571	4,892
Other liabilities		6,449	6,899
Liabilities associated with assets held for sale		299	0
Total current liabilities		14,319	14,986
Total liabilities		26,803	27,094
Total equity and liabilities		35,730	36,949

See accompanying notes to the unaudited condensed consolidated financial statements.

THYSSENKRUPP AG condensed Consolidated Cash Flow Statement (unaudited)

million €

	9 months	9 months
	ended June 30, 2006	ended June 30, 2007

Operating:
Net income	1,164	1,664
Adjustments to reconcile net income to operating cash flows:
Deferred income taxes (net)	388	274
Depreciation, amortization and impairment of non-current assets	1,122	1,132
Reversals of impairment losses of non-current assets	0	(1)
(Earnings)/losses from companies accounted for using the equity method, net of dividends received	(19)	(36)
(Gain)/loss on disposal of non-current assets	(10)	(58)
Changes in assets and liabilities, net of effects of acquisitions and divestitures:
- inventories	101	(1,729)
- trade accounts receivable	(606)	(859)
- accrued pension and similar obligations	(4)	(292)
- other provisions	4	(79)
- trade accounts payable	66	254
- other assets/liabilities not related to investing or financing activities	(260)	212
Operating cash flows	1,946	482

Investing:
Purchase of investments accounted for using the equity method and financial assets	(18)	(45)
Expenditures for acquisitions of consolidated companies	(248)	(72)
Cash acquired from acquisitions	37	5
Capital expenditures for property, plant and equipment and investment property	(1,052)	(1,876)
Capital expenditures for intangible assets	(81)	(110)
Proceeds from disposals of investments accounted for using the equity method and financial assets	23	83
Proceeds from disposals of previously consolidated companies	79	140
Cash of disposed businesses	(25)	(19)
Proceeds from disposals of property, plant and equipment and investment property	134	347
Proceeds from disposals of intangible assets	7	25
Cash flows from investing activities	(1,144)	(1,522)

Financing:
Repayment of bonds	(504)	0
Proceeds from liabilities to financial institutions	603	600
Repayments of liabilities to financial institutions	(858)	(609)
(Repayments on)/proceeds from notes payable and other loans	2	(150)
Increase in bills of exchange	6	9
Decrease of liabilities due to sales of receivables not derecognized from the balance sheet	(98)	(26)
Increase in current securities	(22)	(42)
Proceeds from treasury shares sold	268	0
Payment of ThyssenKrupp AG dividend	(412)	(489)
Profit distributions to entities outside the Group	(21)	(28)
Other financing activities	29	11
Cash flows from financing activities	(1,007)	(724)
Net decrease in cash and cash equivalents	(205)	(1,764)

Effect of exchange rate changes on cash and cash equivalents	(20)	(1)

Cash and cash equivalents at beginning of reporting period	4,715	4,447
Cash and cash equivalents at end of reporting period	4,490	2,682
[thereof cash and cash equivalents within disposal groups]	[1]	[0]

Additional information regarding cash flows from interest, dividends and income taxes which are included in operating cash flows:
Interest received	122	113
Interest paid	182	203
Dividends received	6	19
Income taxes paid	363	679

See note 12 to the unaudited condensed consolidated financial statements.

THYSSENKRUPP AG condensed Consolidated Statement of Recognized Income and Expense (unaudited)

million €

	9 months ended June 30, 2006	9 months ended June 30, 2007
Foreign currency translation adjustment	(87)	(112)
Unrealized gains from available-for-sale financial assets	4	3
Unrealized losses on derivative financial instruments	(31)	(100)
Tax effect	11	37
Income and expense directly recognized in equity (net of tax)	(103)	(172)
Net income	1,164	1,664
Total recognized income and expense for the period	1,061	1,492
Thereof:
ThyssenKrupp AG's stockholders	1,031	1,415
Minority interest	30	77

See accompanying notes to the unaudited condensed consolidated financial statements.

THYSSENKRUPP AG Notes to the interim condensed consolidated financial statements (unaudited)

Corporate Information

ThyssenKrupp Aktiengesellschaft ("ThyssenKrupp ag" or "Company") is a publicly traded corporation domiciled in Germany. The interim condensed consolidated financial statements of ThyssenKrupp ag and subsidiaries, collectively the "Group", for the three and nine months ended June 30, 2007, were authorized for issue in accordance with a resolution of the Executive Board on August 06, 2007.

Basis of presentation

The accompanying unaudited Group's interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (ifrs) and its interpretations adopted by the International Accounting Standards Board (iasb) for interim financial information effective within the European Union as well as in accordance with full ifrs. Accordingly, these financial statements do not include all of the information and footnotes required by ifrs for complete financial statements for year end reporting purposes.

In the opinion of Management, the accompanying unaudited condensed consolidated financial statements include all adjustments of a normal and recurring nature considered necessary for a fair presentation of results for interim periods. Results of the periods ended June 30, 2007, are not necessarily indicative for future results.

The preparation of interim financial statements in conformity with ias 34 Interim Financial Reporting requires Management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

The accounting principles and practices as applied in the interim condensed consolidated financial statements correspond to those pertaining to the most recent annual consolidated financial statements. A detailed description of the accounting policies is published in the notes to the annual consolidated financial statements of our annual report 2005/2006.

Recently issued accounting standards

In fiscal year 2006/2007, the iasb has issued the following Standards which still must be endorsed by the eu before they can be adopted:

In November 2006, the iasb issued ifrs 8 "Operating Segments" which replaces ias 14 "Segment Reporting". Pursuant to ifrs 8, reporting on the financial performance of the segments has to be prepared according to the so called management approach. Accordingly, the identification of the segments and the disclosures for these segments are based on the information which is used internally by Management in evaluating segment performance and deciding how to allocate resources. The application of the Standard is compulsory for fiscal years beginning on or after January 01, 2009, while earlier application is permitted. Currently, Management does not expect the adoption of the Standard to have a material impact on the Group's consolidated financial statements.

In March 2007, the iasb issued a revised version of ias 23 "Borrowing Costs". Accordingly, borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset should be capitalized as part of the cost of the asset. The current option of immediately recognizing borrowing costs as an expense will be removed. The application of the revised Standard is compulsory for fiscal years beginning on or after January 01, 2009. The revision will have no impact on the Group's consolidated financial statements because already today borrowing costs directly attributable to a qualifying asset are capitalized as part of production costs.

1 Emissions Trading Scheme

On January 01, 2005, the Group began to participate in the European Union Emissions Trading Scheme (ets). The Group received notification from the national emissions-trading agency that it is entitled to receive allowances to emit 56.0 million tons of CO2 during the compliance period 2005 – 2007. The majority of the total allowances are allocated to the Steel segment. The rights are capitalized at cost as an intangible asset. If the emissions are expected to exceed the amount covered by the available allowances, the Group records an obligation for the purchase of additional allowances.

2 Expense for share-based compensation

Management incentive plans

In the 3rd quarter ended June 30, 2007, stock rights under the fifth installment of the mid-term incentive plan were granted to additional executive employees. In total, ThyssenKrupp recorded compensation expense of €22.3 million for the obligations of this plan in the 3rd quarter (3rd quarter ended June 30, 2006: €15.7 million).

The Group's Share Purchase Program resulted in a compensation expense of €3.4 million in the 3rd quarter ended June 30, 2007 (3rd quarter ended June 30, 2006: €1.0 million).

Employee share purchase programs

In the 3rd quarter ended June 30, 2007, the Group offered eligible members of its German and French workforce the right to purchase up to €270 in ThyssenKrupp shares at a 50% discount

as part of employee share purchase programs. The programs resulted in a compensation expense of €6.6 million.

3 Cost of sales

Cost of sales include impairment losses of property, plant and equipment of €40 million relating to the Metal Forming business of the Auto business unit of the Steel segment and the ThyssenKrupp Acciai Speciali Terni business unit of the Stainless segment. In addition, cost of sales include writedowns of inventories of €13 million of the ThyssenKrupp Acciai Speciali Terni business unit of the Stainless segment.

4 Other operating income

The disposal of real property as part of the concentration of ThyssenKrupp's administrative office locations in Germany resulted in other operating income of €119 in the 3rd quarter. Costs of the transaction amounted to €4 million in the current quarter and €3 million incurred in previous periods.

5 Other operating expenses

Other operating expenses include €51 million of impairment losses as a result of the annual goodwill impairment test and relate for the most part to the Metal Forming business of the Auto business unit of the Steel segment.

6 Cost for pensions and similar obligations

The net periodic pension cost for the defined benefit plans is as follows:

	3rd quarter ended June 30, 2006		3rd quarter ended June 30, 2007			9 months ended June 30, 2006	9 months ended June 30, 2007
	Germany	Outside Germany	Germany	Outside Germany	Germany	Outside Germany	Germany	Outside Germany
Service cost	10	15	10	11	30	45	28	34
Interest cost	63	32	66	32	189	94	199	96
Expected return on plan assets	(2)	(34)	(3)	(34)	(6)	(100)	(7)	(103)
Past service cost	1	3	0	0	3	4	0	0
Settlement and curtailment loss/(gain)	0	12	0	0	0	12	0	(12)
Net periodic pension cost	72	28	73	9	216	55	220	15

million €

The reported €10 million decrease of expected cash contributions in fiscal year 2006/2007 related to ThyssenKrupp's funded plans due to the disposal of subsidiaries in the us in the 1st quarter ended December 31, 2006 will be compensated by additional cash contributions of €10 million in September 2007.

As a consequence, total expected cash contributions to funded plans remains unchanged at €127 million in the current fiscal year.

The net periodic postretirement benefit cost for health care obligations is as follows:

million €

	3rd quarter ended June 30, 2006 USA/Canada	3rd quarter ended June 30, 2007 USA/Canada	9 months ended June 30, 2006 USA/Canada	9 months ended June 30, 2007 USA/Canada
Service cost	5	3	17	10
Interest cost	17	15	48	44
Expected return on reimbursement rights	(2)	(1)	(5)	(4)
Past service cost	(1)	(1)	(1)	(1)
Settlement and curtailment loss/(gain)	8	0	8	(39)
Net periodic postretirement benefit cost	27	16	67	10

7 Total equity

Total equity and the number of shares outstanding changed as follows:

million € (except number of shares)

					Equity attributable to ThyssenKrupp AG's stockholders
	Number of shares outstanding	Capital stock	Additional paid in capital	Retained earnings	Cumulative income and expense directly recognized in equity	Treasury stock	Total	Minority interest	Total equity
Balance as of Sept. 30, 2005	499,149,151	1,317	4,684	2,171	(315)	(368)	7,489	389	7,878
Net income				1,125			1,125	39	1,164
Income and expense directly recognized in equity					(105)		(105)	(9)	(114)
Tax effects on income and expense directly recognized in equity					11		11	0	11
Profit attributable to minority interest							0	(21)	(21)
Dividend payment				(412)			(412)	0	(412)
Treasury stock sold	15,339,893			(100)		368	268	0	268
Share-based compensation				1			1		1
Other changes				(9)	9		0	(29)	(29)
Balance as of June 30, 2006	514,489,044	1,317	4,684	2,776	(400)	0	8,377	369	8,746
Balance as of Sept. 30, 2006	488,764,592	1,317	4,684	3,358	(149)	(697)	8,513	414	8,927
Net income				1,589			1,589	75	1,664
Income and expense directly recognized in equity					(211)		(211)	2	(209)
Tax effects on income and expense directly recognized in equity					37		37	0	37
Profit attributable to minority interest							0	(28)	(28)
Dividend payment				(489)			(489)		(489)
Share-based compensation				1			1	0	1
Other changes				(10)	9		(1)	(47)	(48)
Balance as of June 30, 2007	488,764,592	1,317	4,684	4,449	(314)	(697)	9,439	416	9,855

8 Contingencies including pending lawsuits and claims for damages

Guarantees

ThyssenKrupp ag and its segment lead companies as well as, in individual cases, its subsidiaries have issued guarantees in favor of business partners or lenders. The following table shows obligations under guarantees where the principal debtor is not a consolidated Group company:

million €
	Maximum potential amount of future payments as of June 30, 2007	Provision as of June 30, 2007

Advance payment bonds	137	1
Performance bonds	127	0
Third party credit guarantee	50	0
Residual value guarantees	45	1
Other guarantees	206	1
Total	565	3

The terms of those guarantees depend on the type of guarantee and may range from three months to ten years (e.g. rental payment guarantees).

The basis for possible payments under the guarantees is the non-performance of the primary obligor under a contractual agreement, e.g. late delivery, delivery of non-conforming goods under a contract, non-performance with respect to the warranted quality or default under a loan agreement.

All guarantees issued by or issued by instruction of ThyssenKrupp ag or the segment lead companies upon request of principal debtor are obligated by the underlying contractual relationship and are subject to recourse provisions in case of default. If such a principal debtor is a company owned fully

or partially by a foreign third party, then such a third party is generally requested to provide additional collateral in a corresponding amount.

Special purpose entities

ThyssenKrupp has leased a facility used in the production of coke. The application of the rules of this Interpretation sic 12 "Consolidation – Special Purpose Entities" to the company acting as operator of this facility resulted in considering this company to be a special purpose entity, under the scope of the Interpretation, which has to be consolidated. The consolidation of this company does not have a material effect on the results of operations or the financial position of the Group. In addition, upon review of the owner company, this is also considered to be a special purpose entity under the scope of the Interpretation, it was determined that the Group does not control this company and consequently will not include this entity in the consolidated financial statements. The obligations of the Group existing under the lease and purchasing agreement will continue to be considered future minimum lease payments from operating leases and amount to approximately €62 million in the current fiscal year. The Group's maximum exposure to loss from this facility amounts to approximately €45 million and results from the residual value guarantee for the asset at the end of the lease and purchasing agreement which is mainly covered by third parties.

Commitments and other contingencies

On January 26, 2006, ThyssenKrupp ag signed an agreement with Mittal Steel n.v. in which ThyssenKrupp has undertaken to acquire up to 100% of the shares in Dofasco if Mittal Steel takes over Arcelor. This could result in a purchase price obligation of up to €4 billion. The agreement was not consummated and therefore was terminated effective as of April 30, 2007.

Compared to September 30, 2006, in the Steel segment the commitment to enter into investment projects increased by €1.5 billion. In addition, a long term iron ore and iron ore pellets supply contract, and a long term gas supply contract were fixed. Beginning in fiscal year 2008/2009, over a period of 15 and 20 years, respectively, these two contracts will result in purchasing commitments of €5.6 billion in total.

Pending lawsuits and claims for damages

The Group is involved in pending and threatened litigation in connection with the sale of certain companies, which may lead to partial repayment of purchase price or to the award of damages. In addition, damage claims may be payable to customers and subcontractors under performance contracts. Certain of these claims have proven unfounded or have expired under the statute of limitations. The Group believes, based upon consultation with relevant legal counsel, that the ultimate outcome of these pending and threatened lawsuits will not result in a material impact on the Group's financial condition or results of operations.

Regarding the remaining contingencies, including pending litigations, there have been no significant changes since the previous year end.

9 Derivative financial instruments

The notional amounts and carrying amounts of the Group's derivative financial instruments are as follows:

million €
	Notional amount Sept. 30, 2006	Carrying amount Sept. 30, 2006	Notional amount June 30, 2007	Carrying amount June 30, 2007
Derivative financial instruments
Assets
Foreign currency derivatives including embedded derivatives	4,462	118	3,581	81
Interest rate derivatives	29	0	54	1
Commodity derivatives	802	87	1,095	180
Liabilities
Foreign currency derivatives including embedded derivatives	3,116	72	4,088	112
Interest rate derivatives	980	58	922	22
Commodity derivatives	758	112	1,081	148
Total	10,147	447	10,821	544

10 Segment reporting

As of October 01, 2006, the operations of the Automotive segment remaining after the disposals in North America were combined with the Technologies segment so as to pool key capital goods capabilities in the new Technologies segment. The retained assets and liabilities of ThyssenKrupp Budd were assigned to Corporate as of October 01, 2006. Prior period presentations have been adjusted accordingly. Furthermore, in the 2nd quarter ended March, 31, 2007, Umformtechnik was regrouped from the Technologies segment to the Steel segment due to strategic reasons. The 1st quarter ended December 31, 2006 as well as prior period presentation have been adjusted accordingly.

Segment information for the 3rd quarter ended June 30, 2006 and June 30, 2007 as well as for the 9 months ended June 30, 2006 and June 30, 2007 is as follows:

million €
	Steel	Stainless	Technologies	Elevator	Services	Corporate	Consolidation	Group
3rd quarter ended June 30, 2006
External sales	2,805	1,484	2,820	1,069	3,583	377	0	12,138
Internal sales within the Group	346	166	15	1	238	11	(777)	0
Total sales	3,151	1,650	2,835	1,070	3,821	388	(777)	12,138
Income/(loss) before income taxes	386	126	151	98	168	(119)	(4)	806
3rd quarter ended June 30, 2007
External sales	3,038	2,263	2,825	1,178	4,121	19	0	13,444
Internal sales within the Group	375	345	(10)	1	187	5	(903)	0
Total sales	3,413	2,608	2,815	1,179	4,308	24	(903)	13,444
Income/(loss) before income taxes	428	296	155	106	218	21	(5)	1,219
9 months ended June 30, 2006
External sales	8,022	4,187	8,554	3,128	9,788	1,187	0	34,866
Internal sales within the Group	989	441	51	4	482	24	(1,991)	0
Total sales	9,011	4,628	8,605	3,132	10,270	1,211	(1,991)	34,866
Income/(loss) before income taxes	1,079	185	405	277	344	(273)	(13)	2,004
9 months ended June 30, 2007
External sales	8,790	6,141	8,366	3,347	12,006	240	0	38,890
Internal sales within the Group	1,130	845	45	3	608	17	(2,648)	0
Total sales	9,920	6,986	8,411	3,350	12,614	257	(2,648)	38,890
Income/(loss) before income taxes	1,298	912	411	(187)	550	(115)	(16)	2,853

11 Earnings per share

Basic earnings per share is computed as follows:

	3rd quarter ended June 30, 2006		3rd quarter ended June 30, 2007		9 months ended June 30, 2006		9 months ended June 30, 2007
	Total amount in million €	Earnings per share in €	Total amount in million €	Earnings per share in €	Total amount in million €	Earnings per share in €	Total amount in million €	Earnings per share in €
Numerator:
Net income (attributable to
ThyssenKrupp AG's stockholders)	446	0.87	729	1.49	1,125	2.20	1,589	3.25
Denominator:
Weighted average shares	514,489,044		488,764,592		511,591,509		488,764,592

Relevant number of common shares for the determination of earnings per share

Earnings per share have been computed by dividing income attributable to common stockholders of ThyssenKrupp ag (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Shares issued during the period and shares reacquired during the period have been weighted for the portion of the period that they were outstanding.

The weighted average number of outstanding shares was reduced by the reacquisition of shares on May 06, 2003 and increased by the sale of those shares in the 2nd quarter ended March 31, 2004, the 3rd quarter ended June 30, 2005 and the 1st quarter ended December 31, 2005. In the 4th quarter ended September 30, 2006, the weighted average number of outstanding shares was reduced again by the reacquisition of shares.

There were no dilutive securities in the periods presented.

12 Additional information to the consolidated cash flow statement

Non-cash investing activities

In the 9 months ended June 30, 2007, the acquisition and first-time consolidation of companies created an increase in intangible assets, property, plant and equipment and investment property of €30 million (June 30, 2006: €134 million).

The non-cash addition of assets under finance leases in the 9 months ended June 30, 2007 amounts to €9 million (June 30, 2006: €4 million).

Non-cash financing activities

In the 9 months ended June 30, 2007, the acquisition and firsttime consolidation of companies did not result in any increase in gross financial payables (June 30, 2006: €4 million).

13 Subsequent events

On July 06, 2007, the Federal Council of Germany passed a law that reforms business taxation from 2008. For ThyssenKrupp the law will become effective October 01, 2007, providing, among other things, for a reduction of the corporate income tax rate from 25% to 15% with a moderate rise in the effective trade income tax rate. The reform also entails various particular measures that broaden the tax base for the corporate income tax as well as for the trade income tax resulting in an increase in the effective tax burden. For fiscal year 2006/2007, the impact of remeasuring deferred taxes of the Group's German companies with the lower future tax rates at September 30, 2007 is expected to be a deferred tax benefit. In subsequent years, we expect a decrease in the effective income tax rate for profits generated in Germany, which will be attributable primarily to the reduction of the corporate income tax rate.

Further information

Report by the Supervisory Board Audit Committee

The interim report on the 3rd quarter 2006/2007 and the review report by the Group's financial statement auditors were presented to the Audit Committee of the Supervisory Board in its meeting on August 09, 2007 and commented on by the Executive Board and the auditors. The Audit Committee approved the interim report.

Düsseldorf, August 09, 2007

Chairman of the Audit Committee Dr. Martin Kohlhaussen

Contact

For more information, please contact:

Communications and Strategy Telephone +49 211 824-36007 Fax +49 211 824-36041 E-mail [email protected]

Investor Relations E-mail [email protected]

Institutional investors and analysts Telephone +49 211 824-36464 Fax +49 211 824-36467

Private investors Infoline +49 211 824-38347 Fax +49 211 824-38512

Contact

ThyssenKrupp ag

August-Thyssen-Str. 1, 40211 Düsseldorf, Germany P.O. Box 10 10 10, 40001 Düsseldorf, Germany Telephone +49 211 824-0 Fax +49 211 824-36000 E-mail [email protected]

Dates

December 04, 2007 Annual Press Conference Analysts' and investors' conference

January 18, 2008 Annual General Meeting

February 13, 2008

Interim report 1st quarter 2007/2008 (October to December) Conference call with analysts and investors

May 14, 2008 Interim report 2nd quarter 2007/2008 (January to March)

May 16, 2008 Analysts' and investors' conference

August 14, 2008

Interim report 3rd quarter 2007/2008 (April to June) Conference call with analysts and investors

Forward-looking statements

This document contains forward-looking statements that reflect management's current 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 anticipated synergies and the actions of government regulators. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. ThyssenKrupp does not intend or assume any obligation to update any forward-looking statements to reflect events or circumstances after the date of these materials.

German and English versions of this report are available for downloading and as an interactive online version at http://www.thyssenkrupp.com

On request, we would be pleased to send you additional information on the ThyssenKrupp Group free of charge.

Telephone +49 211 824-38382 and +49 211 824-38371, Fax +49 211 824-38512

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thyssenkrupp AG — Interim / Quarterly Report 2007

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Interim report 3rd quarter 2006 – 2007 03

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