thyssenkrupp AG — Interim / Quarterly Report 2010

May 12, 2010

Interim Report 1st half 09 10

ThyssenKrupp AG October 01, 2009 – March 31, 2010

Contents

Interim report 1st half 2009 – 2010

• 02 / The Group in figures
• 02 / ThyssenKrupp in brief

Interim management report

• 03 / Group review
• 09 / Business area review
• 21 / ThyssenKrupp stock
• 22 / Innovations
• 23 / Employees
• 24 / Financial position
• 27 / Risk report
• 28 / Subsequent events, opportunities and outlook

02 P. 31 – 44 /

01 P. 03 – 30 /

Interim financial statements

• 31 / Condensed consolidated statement of financial position
• 32 / Condensed consolidated statement of income
• 33 / Condensed consolidated statement of comprehensive income
• 34 / Condensed consolidated statement of changes in equity
• 35 / Condensed consolidated statement of cash flows

45 / Review report of the half-year financial report

36 / Notes to the interim condensed consolidated financial statements

Further information

• 47 / Report by the Supervisory Board Audit Committee
• 48 / Contact
• 48 / 2010/2011 dates

46 / Responsibility statement

This interim report is the half-year financial report in the sense of § 37w German Securities Trading Act (WpHG); it was published on May 12, 2010.

The Group in figures

GROUP

			Year-to-date comparatives				2nd quarter comparatives
		1st half ended March 31, 2009	1st half ended March 31, 2010	Change	Change in %	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010	Change	Change in %
Order intake	million €	20.529	19.701	(828)	(4)	7.642	10.373	2.731	36
Sales	million €	21.381	19.458	(1.923)	(9)	9.859	10.107	248	3
EBITDA	million €	906	1.508	602	66	142	700	558	393
EBIT	million €	131	831	700	534	(276)	353	629	—
Adjusted EBIT	million €	304	770	466	153	(112)	368	480	—
Earnings before taxes
(EBT)	million €	(215)	504	719	—	(455)	191	646	—
Adjusted EBT	million €	(42)	443	485	—	(291)	206	497	—
Net income/(Net loss)	million €	(199)	429	628	—	(362)	234	596	—
Basic earnings per share	€	(0,35)	0,80	1,15	—	(0,71)	0,45	1,16	—
Employees	March 31	192.521	172.576	(19.945)	(10)	192.521	172.576	(19.945)	(10)

		Sept. 30, 2009	March 31, 2010
Net financial debt	million €	2,059	2,652
Total equity	million €	9,696	10,389

BUSINESS AREAS

	Order intake (million €)		Sales (million €)		Earnings before taxes (million €)		Adjusted EBT (million €)		Employees
	1st half ended March 31, 2009	1st half ended March 31, 2010	1st half ended March 31, 2009	1st half ended March 31, 2010	1st half ended March 31, 2009	1st half ended March 31, 2010	1st half ended March 31, 2009	1st half ended March 31, 2010	March 31, 2009	Sept. 30, 2009	March 31, 2010
Steel Europe	3,345	5,499	5,174	4,948	454	267	466	267	37,380	36,416	34,872
Steel Americas	0	23	0	23	(98)	(36)	(98)	(36)	1,529	1,659	2,256
Stainless Global	1,785	2,503	2,161	2,671	(610)	(176)	(550)	(176)	12,079	11,755	11,235
Materials Services	6,735	5,740	7,104	5,641	(76)	172	(76)	91	45,674	44,316	31,482
Elevator Technology	2,751	2,445	2,636	2,447	308	308	308	308	43,306	42,698	42,787
Plant Technology	2,268	2,148	2,265	1,894	173	168	178	168	13,186	13,043	12,934
Components Technology	2,306	2,506	2,399	2,581	6	106	32	106	29,223	27,973	27,894
Marine Systems	2,049	249	917	541	(84)	(17)	(14)	3	8,305	7,770	6,669
Corporate	60	62	60	62	(296)	(275)	(296)	(275)	1,839	1,865	2,447
Consolidation	(770)	(1,474)	(1,335)	(1,350)	8	(13)	8	(13)
Group	20,529	19,701	21,381	19,458	(215)	504	(42)	443	192,521	187,495	172,576

	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Steel Europe	1,479	2,999	2,326	2,667	109	163	112	163
Steel Americas	0	23	0	23	(22)	(32)	(22)	(32)
Stainless Global	818	1,560	988	1,461	(367)	(117)	(307)	(117)
Materials Services	2,719	3,059	3,109	2,881	(106)	60	(106)	60
Elevator Technology	1,189	1,215	1,293	1,221	149	153	149	153
Plant Technology	517	824	1,187	940	74	73	79	73
Components Technology	1,016	1,337	1,100	1,344	(47)	63	(21)	63
Marine Systems	193	139	371	287	(117)	(7)	(47)	8
Corporate	26	31	26	31	(141)	(154)	(141)	(154)
Consolidation	(315)	(814)	(541)	(748)	13	(11)	13	(11)
Group	7,642	10,373	9,859	10,107	(455)	191	(291)	206

ThyssenKrupp in brief

Tailored materials of all kinds and a comprehensive range of high-end technological goods, backed by a broad portfolio of services, characterize the activities of our roughly 173,000 committed and skilled employees. They provide innovative solutions for sustainable progress for our customers in more than 80 countries on all five continents. In our eight business areas – Steel Europe, Steel Americas, Stainless Global, Materials Services, Elevator Technology, Plant Technology, Components Technology and Marine Systems – we are meeting global challenges and turning them into opportunities. Our high-tech materials, plants, components and systems offer answers to many questions of the future. The Group headed by ThyssenKrupp AG includes, directly and indirectly, over 850 subsidiaries and equity interests. Two thirds of our 2,500 production sites, offices and service bases are outside Germany.

Group review

ThyssenKrupp in the 1st half 2009/2010 – higher profit despite lower sales

The difficult economic environment continued to have a major impact on the performance of ThyssenKrupp in the 1st half 2009/2010. Order intake and sales were well down from the prior-year period. However, compared with the prior quarter, orders and sales in the 2nd quarter were higher again.

The earnings situation also improved, mainly thanks to realized cost savings. Following a pre-tax loss in the prior-year period ThyssenKrupp achieved earnings before taxes (EBT) of €504 million in the 1st half 2009/2010 – an increase of €719 million from the pre-tax loss of €215 million in the prior-year period. Adjusted EBT at €443 million was also considerably higher than the prior-year figure of €(42) million.

As from the beginning of fiscal year 2009/2010, certain defined nonrecurring items are excluded from EBT and EBIT. Specifically, these are gains and losses on disposals, restructuring costs, impairment of non-current assets, other non-operating expense, and other non-operating income. These items are only excluded if the event is of material importance to the consolidated financial statements. The startup losses in the Steel Americas business area that were excluded in the prior year are no longer classified as nonrecurring items as they are no longer of a project nature due to the commissioning of the steel making and processing plants in the current fiscal year. The prior-year comparative has been adjusted accordingly.

The highlights for the 1st half 2009/2010:

• Order intake decreased year-on-year by 4% to €19.7 billion.
• Sales fell by 9% to €19.5 billion.
• EBITDA reached €1,508 million, compared with €906 million in the prior year.
• EBIT came to €831 million, compared with €131 million in the prior year.
• Adjusted EBIT increased from €304 million in the prior year to €770 million.
• Earnings before taxes improved in the same period from €(215) million to €504 million.
• Adjusted earnings before taxes at €443 million exceeded the prior-year figure of €(42) million.
• Earnings per share increased from €(0.35) in the prior year to €0.80.
• Net financial debt at March 31, 2010 was €2,652 million, an increase of €593 million compared with September 30, 2009, when we reported net financial debt of €2,059 million. On March 31, 2009 net financial debt stood at €3,687 million.

Economic slide halted

Thanks not least to massive economic policy stimulus, global economic activity has stabilized recently, albeit at a low level. In the industrialized countries, leading indicators such as the Ifo expectations index showed in part marked signs of recovery in the 2nd half 2009, but the momentum weakened at the beginning of the current year. World GDP decreased overall by 1.0% in 2009. According to current estimates the improvement in the 2nd half 2009 continued in the 1st quarter 2010, with the pace of growth in the emerging economies much stronger than in the industrialized countries.

The economy in the euro zone shrank by 4.1% in 2009. After pleasing growth in summer 2009, GDP stagnated in the 4th quarter 2009. While consumer spending was flat and business investment fell, exports made a positive contribution to growth. In the 1st quarter 2010 growth was again only very moderate. GDP in Germany declined by 5.0% in 2009. Economic activity picked up strongly in the 2nd and 3rd quarters before stagnating due to weather conditions and the ending of the scrappage scheme.

The US economy improved appreciably in the final quarter 2009 with growth of 1.4%; despite this, full-year economic output was down 2.4% year-on-year. The growth momentum slowed again in the 1st quarter 2010 as the positive effects of inventory rebuilding faded.

Most of the Asian emerging economies were able to absorb the impact of the global recession thanks to continuing dynamic growth in China. China's GDP expanded by 8.7% in 2009 and by as much as 10.7% in the final quarter of the year. Aided by government stimulus programs this growth continued in the 1st quarter 2010, reaching 11.9%.

The picture in the sectors of importance to ThyssenKrupp was as follows:

The recovery on the international steel markets that began in fall 2009 continued in the 1st quarter 2010. Global crude steel production exceeded the very low prior-year figure by 29%. China and India, which increased their output by 25% and 13% respectively, carried on their growth trend of the previous year. In the rest of the world, there were in part significant increases after the enormous declines in the previous year. The EU, for example, recorded a rise of 37%, and the NAFTA region produced 53% more crude steel. Utilization rates here were gradually raised, but without yet reaching full capacity. The German steel mills increased their production by 49% in the first three months of 2010; their rolled-steel orders were almost twice as high as in the comparable prior-year period.

The situation on the European carbon steel flat-rolled market also improved. Orders received by steel suppliers increased steadily. Steel mill shipments in the first three months of 2010 were significantly higher than the low prior-year figure. Specific demand gaps were filled, but end user demand as a whole was still down from the prior year despite higher auto industry output. The US steel market showed a very similar pattern in the reporting period. Spot prices on the European and US carbon steel flat-rolled markets picked up appreciably in the course of the 1st quarter 2010. The reasons for this, in addition to a rise in steel demand driven primarily by restocking, were drastically increased steelmaking costs. The move from annual supply contracts for iron ore and coking coal to quarterly contracts based on spot prices, which have risen strongly, is leading to massive cost increases and major uncertainty on the steel markets. These cost increases are leading to massive price increases for steel products.

World demand for stainless steel flat products declined by 3% in 2009, with very pronounced regional differences. Strong growth in China moderated the demand slump in the rest of the world. Orders received by European stainless producers stagnated slightly at the beginning of the 4th quarter 2009 but recovered significantly afterwards, aided by distributor restocking and a slight increase in demand in various end user segments. After the sharp slump in the middle of last year, demand in North America also improved. The stainless steel market in China was buoyant, mainly due to large government infrastructure projects.

Base prices in Germany and Europe decreased slightly in the 4th quarter 2009 but have risen again since the beginning of the year. Similarly, alloy surcharges fell slightly initially but increased again subsequently due to rising nickel prices. Overall, nickel prices have been trending upwards since the beginning of the year and at the end of March reached their highest level since June 2008. Stainless steel prices in North America also increased. In China, prices recovered after the temporary slump in the in the 4th quarter 2009 but were well below European levels.

In the area of nickel and titanium alloys the situation was again difficult. Price levels worldwide remained depressed.

The auto industry suffered a decline in demand in 2009. Worldwide, only around 59 million cars and light trucks were produced, 12% fewer than a year earlier. Only in China was there a substantial increase in demand and production, partly due to tax relief. More recently, however, the rest of the world's markets have recovered slightly. In the USA, sales of cars and light trucks increased year-onyear by 6% in the 4th quarter 2009 and 16% in the 1st quarter 2010. In the European Union, new car registrations rose in the same periods by 18% and 9%, respectively.

In Germany, demand for new vehicles was weak at the beginning of the year after the expiration of the eco rebate program. New car registrations slipped by 23% in the 1st quarter 2010 after having increased by 14% in the quarter before. Rising exports had a positive effect. Thanks to a 47% increase in foreign demand, car production in the 1st quarter 2010 climbed by 32%.

• The machinery sector was again characterized by a reluctance to invest, low capacity utilization and low order books. Only China achieved single-digit growth in 2009, thanks to massive stimulus programs, while other countries showed high double-digit rates of decrease. In Germany, the worst of the recession in the machinery sector is now over. While orders in the 4th quarter 2009 were 12% down from the prior-year period, in the 1st quarter 2010 they were 14% higher. In Germany's plant engineering sector, too, new business decreased significantly in 2009. Orders dropped by 33%; however, there have been signs of a slight recovery recently.
• Despite the stimulus programs, construction activity slowed in many countries in 2009. The situation on the US construction market remained difficult, even though the downward momentum is slowing gradually. The continuing growth of the Chinese construction sector is largely due to government stimulus programs. In Germany, the cold weather had a negative impact on construction activity recently. Thanks to government funding programs, public construction investment and housing modernization projects were stable, while commercial housing construction experienced a significant decline.

Order intake and sales lower due to recession

The effects of the deep economic and financial crisis were still clearly visible in the performance of ThyssenKrupp in the 1st half 2009/2010. Sales and order intake decreased significantly year-on-year. However, the isolated signs of recovery discernible in the 1st quarter 2009/2010 strengthened in the 2nd quarter.

THYSSENKRUPP IN FIGURES

		1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Order intake	million €	20,529	19,701	7,642	10,373
Sales	million €	21,381	19,458	9,859	10,107
EBITDA	million €	906	1,508	142	700
EBIT	million €	131	831	(276)	353
Adjusted EBIT	million €	304	770	(112)	368
Earnings before taxes (EBT)	million €	(215)	504	(455)	191
Adjusted EBT	million €	(42)	443	(291)	206
Capital expenditures	million €	2,196	1,518	1,090	741
Employees	March 31	192,521	172,576	192,521	172,576

Orders received by ThyssenKrupp in the 1st half 2009/2010 fell year-on-year by 4% to €19.7 billion. There were declines in particular in the shipyards business and to a lesser extent in the materials services operations and in elevators and escalators. Demand for flat-rolled carbon steel and stainless steel increased sharply year-on-year. In the 2nd fiscal quarter the order situation improved in almost all business areas. Groupwide, new orders rose quarter-on-quarter by 11%.

Sales in the 1st half 2009/2010 reached a value of €19.5 billion, 9% less than in the first six months of the previous fiscal year. Sales of the shipyards business decreased sharply due to billing factors; there were smaller declines in the materials services and plant technology areas. Sales of stainless steel and auto components improved. The Group's sales in the 2nd quarter 2009/2010 climbed quarter-on-quarter by 8%, with all business areas either holding or increasing their sales levels.

Earnings before taxes up to €504 million

In the 1st half 2009/2010 ThyssenKrupp achieved earnings before taxes (EBT) of €504 million, exceeding the prior-year figure by €719 million. The earnings figures include nonrecurring items of €61 million, mainly income from the sale of the Industrial Services units of the Materials Services business area. In the 2nd quarter 2009/2010 EBT was €191 million.

	1st quarter	7.77772240 the contract of the contract of the contract of the contract of the contract of the contract of the contract of
	1st half	$\sim$ (215)
		$[$ :::::::::::::::::::::::::::::::::::: 9 months
		12 months EXECUTE 12 months
2009/2010		1st quarter 77777777777777
	1st half	.

The Group's adjusted EBT in the 1st half 2009/2010 was €443 million, up €485 million from the prioryear figure of €(42) million.

ADJUSTED NONRECURRING ITEMS in million €

	1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Earnings before taxes (EBT)	(215)	504	(455)	191
+/- Disposal losses/gains	0	(81)	0	0
+ Restructuring expense	66	0	57	0
+ Impairment	76	0	76	0
+ Other non-operating expense	31	20	31	15
- Other non-operating income	0	0	0	0
Adjusted EBT	(42)	443	(291)	206

Net sales in the 1st half of fiscal 2009/2010 were €1,923 million or 9% lower than in the corresponding prior-year period; included in this is a decrease of €247 million due to the increase in the US dollar exchange rate compared with the prior-year period. The cost of sales decreased by €2,232 million or 12% and therefore to a greater extent than sales. One factor in this was a significant reduction in inventory writedowns, which reinforced the effect of the sales-related decline in other costs of sales. Gross profit increased by €309 million or 12% to €2,957 million, resulting in a significant increase in gross margin from 12.4% to 15.2%.

The decrease in selling expenses by €110 million was caused mainly by reduced personnel expense. General and administrative expenses were €78 million lower than the corresponding prioryear figure, also as a result of the cost-reduction measures. The €97 million decrease in other operating income was mainly due to the cancellation of foreign currency hedges for planned raw material purchases in the prior-year period as a result of the financial crisis. The €63 million decrease in other operating expenses included €7 million lower losses on the disposal of non-current assets and €23 million in effects from the translation of foreign currency items. The €93 million increase in income from the disposal of consolidated companies was due mainly to the disposals of ThyssenKrupp Industrieservice and ThyssenKrupp Safway in the Materials Services business area. The €50 million increase in income from companies accounted for using the equity method was due to the significantly improved earnings of these companies compared with the prior year. The €94 million increase in other financial income was mainly due to a €46 million improvement in exchange rate gains on financial transactions and a €37 million year-on-year increase in capitalized interest costs relating to the construction of the steel mills in Brazil and the USA.

After taking into account income taxes, net income in the reporting period was €429 million, up €628 million from the prior year.

Including non-controlling interest in income, earnings per share in the 1st half of fiscal 2009/2010 improved significantly to €0.80 from a negative value of €(0.35) in the prior-year period.

ThyssenKrupp PLuS improves earnings and liquidity

In the 1st half 2009/2010 we achieved positive earnings effects on the cost and sales side with the Groupwide action program ThyssenKrupp PLuS. Our aim is to stabilize and build on the improvements achieved in earnings and liquidity.

By optimizing net working capital (NWC), we aim to keep the liquidity required for our operations and the associated financing requirements at a low level. This includes elements such as improved inventory management and more efficient receivables management. In addition, all investment projects are examined in great detail and aligned more closely with the Group's return on capital targets.

Net financial debt and capital expenditures

On March 31, 2010, net financial debt stood at €2,652 million. The increase of €593 million from September 30, 2009 is mainly due to operating business and the dividend payment. Nonrecurring items – including the capital contribution at ThyssenKrupp CSA Siderúrgica do Atlântico Ltda. by the coshareholder Vale S.A. and the disposals of ThyssenKrupp Industrieservice and ThyssenKrupp Safway – limited the increase.

ThyssenKrupp invested a total of €1,518 million in the 1st half 2009/2010, 31% less than in the same period of the prior year. €1,450 million was spent on property, plant and equipment and intangible assets, and €68 million on the acquisition of businesses, shareholdings and other financial assets.

Current issuer ratings

In the 1st quarter 2009/2010 the rating agency Standard & Poor's lowered its rating on ThyssenKrupp to BB+, meaning ThyssenKrupp lost investment grade status with Standard & Poor's. At Moody's and Fitch our rating remains investment grade.

RATINGS

	Long-term	Short-term
	rating	rating	Outlook
Standard & Poor's	BB+	B	stable
Moody's	Baa3	Prime–3	negative
Fitch	BBB-	F3	negative

Business area review

Steel Europe

STEEL EUROPE IN FIGURES

		1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Order intake	million €	3,345	5,499	1,479	2,999
Sales	million €	5,174	4,948	2,326	2,667
Earnings before taxes (EBT)	million €	454	267	109	163
Adjusted EBT	million €	466	267	112	163
Employees	March 31	37,380	34,872	37,380	34,872

The Steel Europe business area brings together the Group's carbon flat steel activities, mainly in the European market. The ThyssenKrupp Steel Europe operating unit is focused on the production of highgrade flat-rolled carbon steel, while the Processing operating unit processes steel into tinplate, electrical steel, tailored blanks and other components.

Orders improved, sales slightly lower

The business area received orders worth €5.5 billion in the 1st half 2009/2010, up 64% year-on-year. The increase was due exclusively to higher volumes. Compared with the prior year, sales were 4% lower at €4.9 billion. Although shipments increased substantially, this was offset by a significant reduction in average selling prices. Due to the high share of contract business in overall sales, the return to an upward price trend in the 2nd quarter will not have a positive impact until later in the reporting year. We were able to agree price increases in the quarterly contracts at April 01.

Earnings before taxes were €267 million, €187 million down from the prior-year period. This was mainly due to the fall in average selling prices and to higher costs as a result of underutilization of equipment. The restructuring measures carried out in the prior fiscal year and the expanded costreduction programs bolstered earnings but were unable to fully offset the negative market effects.

The companies of the Steel Europe business area employed a total of 34,872 people on March 31, 2010, 2,508 or 6.7% fewer than a year earlier. The reduction was mainly due to personnel adjustments under the 20/10 program at ThyssenKrupp Steel Europe AG and in the metal forming business. The scale of short-time working was significantly reduced: Only around 800 employees were still affected in March.

Performance of the operating units

Sales declined slightly in the ThyssenKrupp Steel Europe operating unit, the business area's main revenue driver. Improved volumes were unable to offset the significant fall in prices. The increase in industry sales was due in particular to outside-customer business, which recorded a sharp decline a year earlier and now profited from restocking. Positive impetus also came from distributors and steel service centers. Shipments to automotive customers stabilized increasingly but following last year's collapse were still significantly lower than the record levels of 2007 and 2008. Mainly as a result of the fall in prices, pre-tax profits were well down from the prior year, despite ongoing measures to stabilize earnings.

Equipment utilization improved further in the 2nd fiscal quarter as the markets stabilized and demand picked up. After blast furnace A was fired back up at investee company Hüttenwerke Krupp Mannesmann in January 2010, all available blast furnaces are now once again in use and are currently operating to full capacity. Crude steel production including supplies from Hüttenwerke Krupp Mannesmann was 6.3 million metric tons in the 1st half 2009/2010, 22% higher than the low prior-year level. Capacity utilization also improved in the downstream processing lines, allowing short-time working to be reduced further.

The downstream activities combined in the Processing operating unit showed a mixed picture. Overall, sales and pre-tax earnings were also down year-on-year.

The tinplate unit continued to hold up well, recording only slight declines in shipments, sales and prices. The sharp volume-related increase in sales of medium-wide strip was due to the recovery in demand, above all from automotive suppliers and rerollers. By contrast, sales of grain-oriented electrical steel decreased. While volumes remained more or less unchanged, the business increasingly faced significant reductions in selling prices. Sales of heavy plate were down as a result of the difficult situation in important customer sectors such as the truck industry and shipbuilding.

The tailored blanks business recorded higher sales and continued to profit from the government stimulus programs for the auto industry in many European countries and the USA. The metal forming business also benefited from this and increased its sales. Color/Construction recorded a year-on-year decrease in sales. Despite improving volumes in individual construction segments, such as the garage door industry, and in parts of the automotive industry, the market as a whole – including prices – remained tight.

Steel Americas

STEEL AMERICAS IN FIGURES

		1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Order intake	million €	0	23	0	23
Sales	million €	0	23	0	23
Earnings before taxes (EBT)	million €	(98)	(36)	(22)	(32)
Adjusted EBT	million €	(98)	(36)	(22)	(32)
Employees	March 31	1,529	2,256	1,529	2,256

With the Steel Americas business area we are tapping into the North American market for premium flatrolled steel products. The business area includes the steel making and processing plants under construction in Brazil and the USA. It also organizes slab logistics between Brazil, Germany and the USA.

Major projects close to startup

The major projects for the production and processing of carbon flat steel in Brazil and the USA will start up in the 2nd half 2010. The supply of starting material has begun in both Brazil and the USA. We will react to changes in the economic conditions by taking a flexible approach to the startup of the second production line in Brazil.

Earnings situation and workforce

The earnings situation is currently dominated by the startup costs for the projects and the ramp-up of production. In the 1st half, the Steel Americas business area reported a pre-tax loss of €36 million. In addition to the project startup costs, this figure is mainly the result of adverse currency effects from cash and cash equivalents held in Brazilian reals.

On March 31, 2010 Steel Americas had 2,256 employees, 727 more than a year earlier.

Budgets being met

The presentation of the projects in the USA and Brazil will be submitted to the Supervisory Board of ThyssenKrupp AG on May 12, 2010. As things stand, the amended project budgets as approved by the Supervisory Board in January 2010 will be met for both the Brazilian iron and steel mill and the processing plant in Alabama. For the Brazilian iron and steel mill, the investment budget is €5.2 billion with planned expenditures of €5.9 billion. The investment budget for the processing plant in Alabama is 3.6 billion US dollars, with planned expenditures of 3.8 billion US dollars.

Iron and steel mill in Brazil

Construction work in Santa Cruz in the Brazilian state of Rio de Janeiro is progressing well. The port terminal, materials handling facilities and sinter plant are at an advanced stage of completion; the power plant and blast furnaces were technically completed at the beginning of 2010. The same applies to the ancillary facilities such as power distribution and water treatment and to other infrastructure facilities. The sinter plant started production in April.

We will start up the first production line with one blast furnace and one converter in mid 2010; the second converter will go into operation after the first line has stabilized. As things stand, startup of the second blast furnace is planned for early to mid 2011. The total annual production capacity will be more than 5 million metric tons of crude steel.

At the end of March 2010 more than 23,000 people were working on the construction site, and CSA in Brazil had around 1,500 employees.

Processing plant in the USA

Construction work on our processing plant in Calvert, Alabama/USA is also in full swing. With construction largely on schedule, we expect the hot rolling mill to come on line in mid 2010. The cold rolling mill and pickling line will start production before the end of the fiscal year. Due to the economic situation, completion of the coating lines will be postponed until next fiscal year. The US plant will process slabs produced in Brazil into high-quality flat products. Until the Brazilian mill starts production, slabs will be supplied from Germany. The first two deliveries were made in the 2nd quarter 2009/2010.

Hot-rolled capacity will be more than 5 million metric tons per year. This includes the rolling capacity required for Stainless Global's stainless steel plant in Alabama.

At the end of March 2010 around 5,400 people were working on the construction site, and ThyssenKrupp Steel USA had around 800 employees.

Entry to the NAFTA market

In parallel with the construction work we have systematically continued our market analyses of price and volume trends and customer requirements in the NAFTA region and prepared our sales plans for the ramp-up phase in line with the wishes of our customers. For this, our sales experts are intensifying their visits to key customers in the target automotive and electrical sectors as well as steel service centers and the tube/pipe industry.

Demand on the North American market for premium flat-rolled carbon steel increased again in the 2nd quarter 2009/2010, although the sharp price rises for raw materials (ore, coking coal) are currently making it difficult to plan starting material costs and selling prices. We have already received the first orders from customers in the NAFTA region.

Stainless Global

STAINLESS GLOBAL IN FIGURES

		1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Order intake	million €	1,785	2,503	818	1,560
Sales	million €	2,161	2,671	988	1,461
Earnings before taxes (EBT)	million €	(610)	(176)	(367)	(117)
Adjusted EBT	million €	(550)	(176)	(307)	(117)
Employees	March 31	12,079	11,235	12,079	11,235

As a world-leading producer of stainless steels, the Stainless Global business area specializes in premium-quality stainless steel flat products and high-performance materials such as nickel alloys and titanium. The business area also includes the new stainless steel mill in Alabama, which is being built in cooperation with Steel Americas.

Orders improved, losses reduced

The business area's order situation improved in the 1st half 2009/2010. The volume of orders received increased by 50% year-on-year. There was particularly strong growth in stainless cold-rolled (+55%) and hot-rolled (+94%). Order volumes were stable for nickel alloys but down by 54% for titanium. In terms of value, the business area's order intake increased by 40% to €2.5 billion, mainly due to the year-on-year rise in alloy surcharges.

Overall deliveries were up 37% from the prior-year period to 1.1 million metric tons. Reflecting the trend in order intake, shipments of cold-rolled and hot-rolled stainless steel increased, while deliveries of titanium and nickel alloys declined. Overall sales climbed 24% to €2.7 billion.

1st-half earnings before taxes at Stainless Global increased by €434 million year-on-year but remained negative to the tune of €176 million. However, all operating units in the stainless steel business reported substantially lower losses, thanks mainly to significantly lower inventory writedowns, targeted cost reductions, and a generally improved market situation permitting higher base prices and better utilization of production capacities. We continued to systematically implement the restructuring measures resolved at the end of 2008/2009 at all locations. At the same time, the SPRINT performance-enhancement program created the basis to sustainably improve our earnings and competitiveness and further flexibilize our cost base.

At March 31, 2010 Stainless Global had 11,235 employees, 844 fewer than a year earlier.

Performance of the operating units

Rising demand for stainless flat products led to significantly improved order volumes and higher shipments at ThyssenKrupp Nirosta and ThyssenKrupp Acciai Speciali Terni. Sales were also substantially higher. Following a heavy loss in the 1st half of the prior year, Nirosta's earnings were vastly improved. Earnings also improved at ThyssenKrupp Acciai Speciali Terni. In both operating units, higher base prices and increased cold-rolled shipments played a role in this. Continued stable growth in the forging operations additionally bolstered earnings at ThyssenKrupp Acciai Speciali Terni.

ThyssenKrupp Mexinox and Shanghai Krupp Stainless also recorded higher order and shipment volumes and improved sales and pre-tax earnings. Hire rolling orders from the Chinese market led to increased utilization of cold-rolled capacities and – in conjunction with higher shipments and improved prices – contributed to growth in earnings.

As a result of the worldwide recovery in demand, both orders and sales at ThyssenKrupp Stainless International were almost doubled.

By contrast, business at ThyssenKrupp VDM was impacted by the postponement or cancellation of numerous customer projects. Order intake was stable for nickel alloys but significantly lower year-onyear for titanium mill products. Sales in both businesses fell sharply. Despite the introduction of restructuring measures and the virtual absence of inventory writedowns, EBT remained negative.

Stainless steel mill in the USA

A modern, integrated stainless steel mill is being built in Alabama/USA in cooperation with Steel Americas at a cost of 1.4 billion US dollars. The startup phase for the stainless steel mill is being extended. We intend to start production with one cold rolling mill and an annual cold-rolled capacity of around 100,000 metric tons in October 2010, expanding capacity in the subsequent period to a maximum of 140,000 tons per year. Startup of the remaining facilities is being kept flexible, allowing for an accelerated ramp-up at any time. The same applies to the startup of the melt shop, which was planned for early 2012 and can now be delayed by up to 24 months. The site will initially be supplied with starting material from the European mills. The scope of the overall project remains unchanged, as we continue to believe in the need for an optimized stainless steel production location on the North American market.

Materials Services

MATERIALS SERVICES IN FIGURES

		1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Order intake	million €	6,735	5,740	2,719	3,059
Sales	million €	7,104	5,641	3,109	2,881
Earnings before taxes (EBT)	million €	(76)	172	(106)	60
Adjusted EBT	million €	(76)	91	(106)	60
Employees	March 31	45,674	31,482	45,674	31,482

With 500 locations in 40 countries, the Materials Services business area specializes in materials distribution, logistics and services, the provision of technical services as well as services for industrial plants and steel mills. In addition to rolled steel, stainless steel, tubes and pipes, nonferrous metals, specialty materials and plastics, Materials Services also offers services from processing and logistics to warehouse and inventory management through to supply chain and project management.

Slight recovery in demand and prices – effective cost-reduction programs

At €5.6 billion, the business area's 1st-half sales were 21% lower than a year earlier. This was due in particular to lower prices for metallic materials and the disposal of ThyssenKrupp Industrieservice and ThyssenKrupp Safway, whose figures are included in the 1st quarter only.

With volumes slightly higher but material prices still not satisfactory overall, Materials Services reported significantly improved EBT of €172 million. Non-recurring gains on the aforementioned disposals had a positive impact, but even excluding these, profits at €91 million were considerably higher year-on-year. Significantly lower costs at all levels played a major role in this.

At the end of the reporting period the business area had 31,482 employees, some 14,000 fewer than a year earlier. The change was mainly attributable to the disposals at Industrial Services. However, low workloads also necessitated job cuts at almost all companies of the Metals Services unit. The completion of major projects saw a reduction of around 1,000 in the headcount at Special Services.

Performance of the operating units

The Metals Services operating unit combines our global materials, warehouse, service and direct-tocustomer business activities. Although the downturn in volumes and prices on our key European and North American markets came to a halt in the 1st quarter, the first signs of recovery were not seen until the end of the 2nd quarter. Despite a moderate increase in volumes in our warehouse business, sales were still significantly lower year-on-year; this applied to all regions, as despite the upward trend in the 2nd quarter prices still failed to reach the level of 2008/2009. Thanks to demand from the automotive industry, the auto-related service center activities showed a significant improvement on the very weak prior-year period. International direct-to-customer business suffered in general from subdued demand and fierce competition for the few major projects available. Following a substantial loss in the prior-year period as a result of drastic price falls which necessitated high writedowns on inventory, the operating unit achieved a significant improvement in 1st-half earnings and – thanks not least to massive cost reductions – reported a pleasing pre-tax profit.

The Special Services operating unit encompasses the materials and supply chain management activities for the aerospace industry and the plastics business. It also includes raw materials trading, system solutions in railway and construction equipment, and steel mill and technical services. While the plastics, aerospace and raw materials businesses performed in part very strongly, sales in the railway and construction equipment areas were lower due to weather-related postponements and financing difficulties for major projects. Our steel mill-related services acquired new projects in Brazil; capacity utilization in Germany increased due to improved workloads in the steel industry. The operating unit's EBT fell short of the prior-year level but still made the largest contribution to business area profits.

Following the disposal of ThyssenKrupp Industrieservice and ThyssenKrupp Safway in the 1st quarter, the sales and EBT of these businesses are included in the 1st-half figures of the Industrial Services operating unit on a prorated basis only. The remaining unit was impacted with a time lag by the economic crisis, which is now also affecting energy sector orders. This was compounded by weather-related restrictions and delays. 1st-half sales and pre-tax profits were down from the prioryear period.

Elevator Technology

ELEVATOR TECHNOLOGY IN FIGURES

		1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Order intake	million €	2,751	2,445	1,189	1,215
Sales	million €	2,636	2,447	1,293	1,221
Earnings before taxes (EBT)	million €	308	308	149	153
Adjusted EBT	million €	308	308	149	153
Employees	March 31	43,306	42,787	43,306	42,787

The Elevator Technology business area supplies passenger and freight elevators, escalators and moving walks, passenger boarding bridges, stair and platform lifts as well as service for the entire product range. Almost 43,000 employees at more than 900 locations provide a tight-knit service network to keep us close to customers.

Continued high earnings

Despite the difficult environment on many property markets and negative exchange-rate effects, the business area performed well in the 1st half 2009/2010. Orders fell 11% to €2.4 billion due to the sharp decline in the market for new installations; excluding exchange-rate factors the decrease was 10%. All operating units reported lower orders apart from Asia/Pacific. Sales at €2.4 billion were down 7%, or 5% excluding exchange-rate factors. In the service business, the number of maintenance units under contract increased.

Elevator Technology generated pre-tax earnings of €308 million, maintaining the very high prioryear level. All operating unit returned profits.

At 42,787, the number of employees at March 31, 2010 was slightly lower than a year earlier.

Performance of the operating units

Order intake in the Central/Eastern/Northern Europe operating unit was lower year-on-year due to weaker new installations business in almost all regions. Sales were also down from the prior-year period. While the operations in Germany, northern and eastern Europe and the Benelux countries remained stable, there was a marked fall in sales in the United Kingdom. Weaker earnings in the UK were also the main reason for the decrease in the operating unit's EBT.

Orders in the Southern Europe/Africa/Middle East operating unit fell short of the prior-year level, due in particular to the decline in new installations and modernization business in Spain and Portugal. By contrast, the activities in the Gulf region remained stable. Thanks to growth in Italy and the Gulf region, sales of the operating unit expanded slightly. Earnings before taxes were unchanged from the prior year.

Orders and sales at the Americas operating unit fell for exchange-rate reasons, but above all due to the continuing negative trend on the US property market. By contrast with the US market, business in Brazil expanded further. Pre-tax earnings almost matched the very high prior-year figure, as operating improvements in particular in the service business all but offset the negative exchange-rate effects.

Pleasing growth in Chinese new installations business resulted in a slight increase in order intake at the Asia/Pacific operating unit. Sales and pre-tax earnings were significantly higher year-on-year. Thanks to optimization measures implemented in recent years, the Korean company once again returned a profit. The other regions also reported positive earnings contributions, maintaining or improving on the year-earlier figures.

Business was weaker at the Escalators/Passenger Boarding Bridges operating unit, resulting in year-on-year decreases in orders, sales and EBT.

The Accessibility operating unit reported a fall in order intake and sales. Despite growth in Europe, the difficult situation on the US housing market continued to have a negative impact. Earnings before taxes were also slightly lower than a year earlier for volume reasons.

Plant Technology

PLANT TECHNOLOGY IN FIGURES

		1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Order intake	million €	2,268	2,148	517	824
Sales	million €	2,265	1,894	1,187	940
Earnings before taxes (EBT)	million €	173	168	74	73
Adjusted EBT	million €	178	168	79	73
Employees	March 31	13,186	12,934	13,186	12,934

The Plant Technology business area is a leading international supplier of chemical plants, refineries, cement and minerals plants, innovative solutions for the mining and handling of raw materials, and production systems and assembly lines for the automotive industry. The business area's plants and processes open up new possibilities for environmental protection and sustainable development.

Performance remains stable

Plant Technology recorded orders of €2.1 billion in the 1st half 2009/2010, almost matching the extraordinarily high prior-year figure. While order levels remained good at Uhde and ThyssenKrupp Fördertechnik, and System Engineering profited from the acquisition of a major order for a body-inwhite line, Polysius reported a decline in new business. The plant engineering market continued to be characterized by uncertainty and delayed investment decisions by customers.

Sales fell 16% to €1.9 billion due to billing technicalities. Orders in hand of around €6.6 billion at March 31, 2010, mainly for long-term project business, continue to secure well over one year's sales and increased further in the course of the 1st half 2009/2010.

With a pre-tax profit of €168 million, Plant Technology again delivered a pleasing result in the 1st half 2009/2010. The main contributions to earnings came from Uhde, Polysius and ThyssenKrupp Fördertechnik.

The number of employees at March 31, 2010 decreased by 1.9% compared with a year earlier to 12,934. This was mainly due to the disposal of the special vehicle construction business of System Engineering, restructuring measures at System Engineering and Transrapid, and the scaling back of the workforce in line with workloads at some foreign locations of Uhde. However, the strong order situation led to an increase in employee numbers in particular at ThyssenKrupp Fördertechnik.

Performance of the operating units

The Uhde operating unit recorded a significant year-on-year increase in 1st-half order intake thanks to major orders for fertilizer plants in Abu Dhabi and Egypt and for a hydrogen plant in India. By contrast, sales were significantly lower than a year earlier, when several major orders were billed. Earnings before taxes were level with the high prior-year level.

The Polysius operating unit, which builds plants for the cement and minerals industry, reported a sharp fall in order intake in the 1st half 2009/2010. This was mainly due to the positive effect of several major orders in the prior-year period and the postponement of several projects in the reporting period. However, thanks to the good level of orders in hand, sales remained at the year-earlier level. EBT fell just short of the good prior-year figure.

Orders received for mining and handling equipment showed pleasing growth. Thanks in particular to orders for open-pit mining equipment including two fully mobile crushers in Brazil, a coal-handling plant for a power station in South Africa and several mini power plants and peripheral equipment in India, the ThyssenKrupp Fördertechnik operating unit achieved a significant year-on-year improvement in order intake. Sales and pre-tax earnings were also up from the high prior-year figures.

The System Engineering operating unit – focused on production systems and assembly lines for the automotive industry – reported a substantial increase in orders. Higher order intake mainly in the body-in-white business more than offset the lower order levels for parts production caused by lower production volumes and temporary plant closures at individual customers. Sales were lower year-onyear due to billing technicalities. Reduced orders for parts production, underutilization in the assembly systems business and nonrecurring items at a foreign company weighed on EBT.

1st-half orders and sales at Transrapid in 2009/2010 were higher than a year earlier. Due among other reasons to a Chinese supply and service contract, Transrapid returned a pre-tax profit.

Components Technology

COMPONENTS TECHNOLOGY IN FIGURES

		1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Order intake	million €	2,306	2,506	1,016	1,337
Sales	million €	2,399	2,581	1,100	1,344
Earnings before taxes (EBT)	million €	6	106	(47)	63
Adjusted EBT	million €	32	106	(21)	63
Employees	March 31	29,223	27,894	29,223	27,894

The Components Technology business area supplies a broad range of high-tech components for wind turbines, the automotive and construction machinery industries, and general engineering applications. Our activities for the automotive industry focus on crankshafts and camshafts, steering systems, dampers, springs and the assembly of axle modules.

Positive performance

The positive performance of the business area improved further in the course of the 1st half 2009/2010. Sales were up 8% to €2.6 billion. Especially in the 2nd fiscal quarter the market environment recovered. Despite negative exchange-rate effects due to the weakness of the US dollar, sales were 22% higher than the prior-year quarter. The pick-up in demand in the automotive industry was due in part to government stimulus packages in virtually all European countries, the USA, Brazil and China.

Pre-tax earnings reached €106 million, a substantial year-on-year increase. 2nd-quarter profits were also significantly higher than in the preceding quarter. There were distinct improvements in earnings at the automotive operating units, all of which returned profits. Positive effects came from the demand recovery in the automotive sector, lower restructuring expense and the restructuring measures initiated in the previous year. The restructuring measures are focused on structural capacity adjustments and include both personnel cutbacks and plant closures in Europe and the USA. Further cost-reduction programs were also carried out.

At the end of March 2010, Components Technology had 27,894 employees, 1,329 fewer than a year earlier. The workforce adjustments mainly related to automotive companies but also affected the other parts of the business area.

Performance of the operating units

The performance of the operating units was mixed.

Following a good 1st quarter, the automotive supply business continued to perform strongly and achieved a clear year-on-year improvement in the 1st half 2009/2010. Increased customer orders for assembled camshafts, steering systems, dampers, springs and axle module assembly resulted in higher sales at Presta Camshafts, Presta Steering and the Bilstein group. In the 2nd quarter, all these operating units returned pre-tax profits.

At the forging group, 1st-half sales of forged crankshafts for cars and trucks were also up year-onyear. Compared with the prior-year period, the 2nd quarter saw significant growth and a return to profit. Demand increased in particular on the Brazilian market. By contrast, sales in Europe were lower than a year earlier, although there were signs of a recovery in the last few months.

The US foundries of Waupaca, which produce components for cars, trucks and other applications, profited from increased market demand and further savings on the healthcare program. 1st-half sales were significantly higher than a year earlier in US dollars and slightly higher in euros when adjusted for exchange-rate effects. Following a loss in the prior year, the unit once again returned a healthy pre-tax profit.

With demand in the construction machinery and general engineering sectors still weak and wind energy customers placing orders for immediate needs only, order intake and sales declined in the slewing ring, ring and construction machinery component businesses of Rothe Erde and Berco. However, there were signs of a slight recovery in construction machinery in the 2nd quarter, due in part to depleted customer inventories. For demand reasons, Rothe Erde was unable to match its high prioryear profit but remained the business area's main earnings driver. An extensive cost-reduction program was implemented to adapt to the change in the workload. Berco significantly reduced its losses, especially in the 2nd quarter.

Marine Systems

MARINE SYSTEMS IN FIGURES

		1st half ended March 31, 2009	1st half ended March 31, 2010	2nd quarter ended March 31, 2009	2nd quarter ended March 31, 2010
Order intake	million €	2,049	249	193	139
Sales	million €	917	541	371	287
Earnings before taxes (EBT)	million €	(84)	(17)	(117)	(7)
Adjusted EBT	million €	(14)	3	(47)	8
Employees	March 31	8,305	6,669	8,305	6,669

Following the restructuring of our shipyards, the Marine Systems business area will in the future concentrate on its outstanding worldwide position in naval shipbuilding.

Order situation remains very weak

The market environment for Marine Systems remained very unfavorable. Newbuild or modernization projects for naval ships were postponed, the civil shipbuilding business virtually collapsed due to drastic overcapacities, and demand for high-class mega yachts remained subdued. The market for repairs, refits and conversions also declined.

Against this background, order intake in the 1st half 2009/2010 fell by 88% to €249 million. The new orders include a design project for the new generation of Swedish "A26" submarines. The contract with Turkey for six material packages to build export class 214 submarines, which was initialed in the last fiscal year, is expected to come into effect in summer 2010 after final financing details have been clarified.

Sales in the reporting period reached €541 million, a year-on-year decrease of 41%. The main reasons for this decline were lower levels of completion for some submarine projects and the complete absence of sales from the submarine orders for Greece, which were cancelled in September 2009.

The business area reported a pre-tax loss of €17 million, mainly due to the charge from Hellenic Shipyards in Greece. Excluding these nonrecurring items, earnings were break-even.

At the end of March 2010 Marine Systems had 6,669 employees, 1,636 fewer than a year earlier. The decrease was the result of the initiated restructuring of the shipyards.

Restructuring of the shipyards

The extensive restructuring of the Marine Systems business area was continued in the 1st half 2009/2010.

The design and project management activities of the surface naval vessel business at Blohm + Voss Nordseewerke are to be transferred to a 50/50 joint venture with the Abu Dhabi MAR Group. At the same time it was agreed to sell 100% of the mega yacht construction business and an initial 80% share of both the ship repair and the component production activities. In addition, Abu Dhabi MAR will acquire the employees and facilities of the merchant shipbuilding operations of HDW-Gaarden in Kiel, which were discontinued in fall 2009. The contracts for these agreements were signed on April 13, 2010.

The agreement reached with SIAG Schaaf Industrie AG in the 1st fiscal quarter on the establishment at the Emden site of a production facility for offshore wind turbines and the transfer of around 700 employees came into effect on March 08, 2010.

Corporate at ThyssenKrupp AG

Corporate comprises the Group's head office including management of the business areas. It also includes the business services activities in the areas of finance, communications, IT and human resources, as well as non-operating real estate and inactive companies. Sales of services by Corporate companies to Group companies in the reporting half-year were €62 million, compared with €60 million a year earlier.

Corporate reported a pre-tax loss of €275 million, a year-on-year improvement of €21 million. This was mainly due to higher net interest income.

Consolidation mainly includes the results of intercompany profit elimination.

ThyssenKrupp stock

The positive performance of ThyssenKrupp's stock since the middle of the 2008/2009 fiscal year continued into January 2010. On January 08, 2010 the stock reached a fiscal-year high of €28.07. The share price increase was driven mainly by the general economic expectations and the implementation of the strategic measures at ThyssenKrupp.

After a weak phase at the end of January, the stock steadily gained ground again. At the end of the quarter on March 31, 2010, it stood at €25.46, having outperformed the DAX and DJ STOXX indices.

Very solid stockholder structure

Twice a year we conduct an analysis of our stockholder structure as a basis for the targeted planning of investor communications in the form of roadshows and conferences aimed at cultivating existing stockholder contacts and attracting potential new investors. The analysis at the end of March 2010 showed once again that our efforts to gain new investors for ThyssenKrupp and raise the Company's profile on the capital markets are having an effect. At over 430, the number of institutions with ThyssenKrupp shares in their portfolio has increased significantly, up by around 12% compared with the analysis carried out in September 2009.

The regional distribution of stockholders shows only slight changes. Institutional investors based in Germany hold 9.9% of the capital stock (down 2.3 percentage points). 10% of the capital stock is held by investors from North America (up 0.2 percentage points). A further key region is the United Kingdom/Ireland, with an unchanged share of 9.4%. 8.7% of the capital stock is held by investors in continental Europe (up 1.7 percentage points), mostly in France, Norway and Switzerland.

The largest stockholder of ThyssenKrupp AG is the Alfried Krupp von Bohlen und Halbach Foundation, Essen. The Foundation has informed ThyssenKrupp that its share in the Company's voting rights is 25.33%. In addition, 10% of the capital stock is held by private investors.

Taking into account the Foundation's shareholding and the treasury shares held by the Company, which account for 9.84% of the capital stock, the free float, which is generally taken into account in the weighting of ThyssenKrupp's stock in stock indices, is 64.83% of the capital stock.

Basic information on the stock market listing

ThyssenKrupp stock is listed on the Frankfurt and Düsseldorf stock exchanges.

THYSSENKRUPP STOCK MASTER DATA

		Securities identification number
Stock exchange
	Frankfurt (Prime Standard), Düsseldorf	DE 000 750 0001
Symbols
	Stock exchange Frankfurt, Düsseldorf	TKA
Reuters	Frankfurt Stock Exchange	TKAG.F
	Xetra trading	TKAG.DE
Bloomberg	Xetra trading	TKA GY

Innovations

The innovation activities of the Group companies are a key factor in our competitive strength. They enable us to respond to the challenges presented by customers and economic megatrends. These megatrends include the growth in the world's energy requirements, which makes it more and more important to make efficient use of resources and reduce emissions in energy generation. Innovative materials and processes play a major role in this.

For example, superconductors are helping prepare the ground for the electricity infrastructure of the future. As they conduct electricity extremely well compared with copper, superconductors make it possible to build generators that are smaller and lighter and at the same time offer higher efficiency. If generators of this kind are used in future wind turbines, the advantages in terms of efficiency and weight will translate into significantly higher outputs than conventional wind turbines can achieve.

Superconducting wire often consists of several layers, with the substrate tape responsible for the mechanical strength and life expectancy of the wire. For these substrates ThyssenKrupp VDM – the world's leading manufacturer of high-performance materials – has developed a special nickel-tungsten foil. In association with Zenergy Power, a specialist in superconductor technology for utilities and industrial companies, and several universities, we are researching promising technologies for the mass production of low-cost superconducting wires. This project is being funded by the North Rhine Westphalia Ministry of Economic Affairs and Energy.

Uhde is contributing its PRENFLO-PDQ process for the gasification of biomass to a research and development project in France into the production of second-generation biofuels. As well as Uhde, five French partners are involved in the new BioTfueL project. It integrates various biomass-to-liquids technology components with the aim of optimizing the efficiency of the process chain, harmonizing the individual steps and developing a commercially viable overall system. To this end the partners aim to find efficient methods for the drying and crushing of the biomass, torrefaction, gasification, purification of the synthesis gas and its ultimate conversion to second-generation biofuel.

The gasification process Uhde is contributing to the process is suitable for a wide range of biomasses and other raw materials. It offers outstanding flexibility and energy efficiency and permits the production of very pure synthesis gas. In addition to the development of the entire process chain, the project also includes the construction and operation of two pilot facilities in France, which will produce biodiesel and biokerosene on the basis of Uhde's technology from 2012. BioTfueL is part of the implementation of the EU directive on renewable energies, under which biofuels from renewable resources are to account for ten percent of fuel production by 2020.

Employees

Significant decline in employee numbers

The number of employees decreased further. On March 31, 2010, ThyssenKrupp had 172,576 employees worldwide, 19,945 or 10.4% fewer than a year earlier. In particular the Materials Services business area employed fewer people on account of disposals. However, the headcount at Steel Americas increased.

Compared with September 30, 2009 the number of employees fell by 14,919 or 8.0%. The trend was down both in Germany and in other countries. The workforce in Germany decreased by 12.2% to 71,310, in other countries it was down by 4.7% to 101,266. This means that at the end of March 2010, 41% of employees were based in Germany, 24% in the rest of Europe, 13% in the NAFTA region, 11% in Asia – in particular China and India – 9% in South America, and 2% in the rest of the world.

Towards the end of the 1st half 2009/2010, only 7,188 employees were still affected by short-time working in the ThyssenKrupp Group worldwide – compared with a high of 38,020 in April 2009. Since summer 2009 short-time working has fallen continuously. For example, the number of workers on short time in the Steel Europe business area decreased from 14,004 in April 2009 to only 819 in March 2010. However, an end to this job-protection measure is not yet foreseeable for this fiscal year.

Establishment of ThyssenKrupp Business Services and ThyssenKrupp IT Services

Major changes to the workforce structure are currently taking place in the Corporate area. ThyssenKrupp Business Services GmbH and ThyssenKrupp IT Services GmbH, set up as part of the reorganization of the Group, are taking on responsibility for selected standardizable and competencebased processes that do not belong to the core activities of the Group companies. They are focusing and optimizing these processes to create sustainable cost advantages. The range of internal services extends from payroll to accounting to communications and IT services.

Pre-existing shared services structures are being utilized in the establishment of the new units. The concept is focused initially on Germany but will later be extended throughout the Group.

Following the launch of the two companies in October 2009 the workforce had grown to 578 by March 31, 2010. A further increase to around 700 employees is planned in this fiscal year; in the medium term we expect a headcount of over 1,500.

Financial position

Analysis of the statement of cash flows

The amounts taken into account in the statement of cash flows correspond to the item "Cash and cash equivalents" as reported in the statement of financial position.

In the 1st half of fiscal 2009/2010 there was a cash outflow from operating activities of €124 million compared with a cash inflow of €623 million in the corresponding prior-year period. The main reason for this was a €1,196 million deterioration in funds tied up in operating assets and operating liabilities. Whereas a release of funds of €377 million was achieved in the corresponding prior-year period, there was an €819 million increase in funds tied up in operating assets and operating liabilities in the reporting period, mainly due to the recovery in demand. This was partly offset by the significant €602 million improvement in net income before impairment losses/reversals and deferred tax income.

The cash outflow from investing activities was down €894 million from the corresponding prioryear period at €1,010 million. This was due to a €519 million reduction in capital expenditures for property, plant and equipment to €1,518 million, and a €378 million increase in proceeds from the disposal of consolidated companies and non-current assets, mainly due to the disposals of ThyssenKrupp Industrieservice and ThyssenKrupp Safway.

As in the prior-year period, free cash flow, i.e. the sum of operating cash flows and cash flows from investing activities, was negative. Compared with the prior-year period, there was a decrease in the negative free cash flow by €147 million to €(1,134) million in the 1st half of fiscal 2009/2010.

The cash inflow from financing activities in the reporting period came to €248 million, compared with a cash inflow of €2,253 million in the corresponding prior-year period. The €2,005 million net cash outflow was mainly due to repayments of financial debt of €356 million in the reporting period, compared with borrowings of €3,105 million in the corresponding prior-year period. This was partly offset by a €500 million increase in proceeds to equity in connection with the increase of the shareholding of Vale S.A. in ThyssenKrupp CSA Siderúrgica do Atlántico Ltda. In addition, compared with the prior-year period there were increased cash inflows from the sale of current securities held in connection with financing activities (€220 million), reduced dividend payments (€482 million) and lower expenditures for the acquisition of shares in already consolidated companies (€147 million).

Analysis of the statement of financial position

Compared with September 30, 2009, total assets increased by €1,292 million to €42,659 million. This increase was influenced by currency translation effects of €959 million, mainly due to the fall in the US dollar exchange rate in the reporting period.

Non-current assets increased in total by €1,469 million, which included a €1,390 million increase in property, plant and equipment. As well as exchange-rate effects, which caused an increase of €319 million, the two major projects in Brazil and the USA played a major part in the increase. The overall slight decrease in intangible assets was mainly influenced by reclassifications of €139 million to assets held for sale, which were partly offset by an increase due to exchange-rate effects. The €123 million decrease in other non-financial assets related in particular to advance payments to suppliers, which were reclassified to property, plant and equipment in connection with further construction progress on the steel mill in Brazil. The €182 million increase in deferred tax assets includes exchange-rate effects of €69 million.

Current assets decreased in total by €177 million. The decrease was due to a significant reduction in cash and cash equivalents and other financial assets, which was partly offset by increases in inventories, trade accounts receivable, and non-financial assets.

The €417 million increase in inventories included €151 million exchange-rate effects. In addition, due to the recovery in demand, there were increases mainly in the business areas Steel Europe (€113 million), Stainless Global (€125 million) and Materials Services (€48 million). Reclassifications to assets held for sale resulted in a reduction of €56 million.

Trade accounts receivable were €699 million higher. In addition to a €163 million increase for exchange-rate reasons, the rest of the increase mainly came from the business areas Steel Europe (€193 million), Stainless Global (€104 million), Components Technology (€125 million) and Materials Services (€117 million) due to the recovery in demand during the reporting period. Reclassifications to assets held for sale resulted in a reduction of €43 million.

Other financial assets reported under current assets decreased by €676 million, mainly due to the capital contributions at ThyssenKrupp CSA Siderúrgica do Atlántico Ltda. made in the reporting period by co-shareholder Vale S.A.

The €119 million increase in other current non-financial assets included in particular higher tax refund entitlements and claims for compensation against suppliers in connection with the major project in Brazil. Reclassifications to assets held for sale resulted in a reduction of €187 million.

The €1,019 million decrease in cash and cash equivalents to €4,330 million was due in particular to the negative free cash flow in the reporting period of €(1,134) million, the repayment of financial debt in the amount of €356 million, and dividend payments of €158 million. Reclassifications to assets held for sale resulted in an additional decrease of €278 million. This was partly offset by exchange-rate effects in the amount of €119 million, proceeds of €174 million from the sale of current securities held in connection with financing activities, and in particular the €500 million capital contribution made in the reporting period at ThyssenKrupp CSA Siderúrgica do Atlántico Ltda. in connection with the increase in the shareholding of co-shareholder Vale S.A.

Assets held for sale increased by €287 million. At September 30, 2009 assets of €491 million were recognized here in connection with the disposals – initiated in October 2009 – of ThyssenKrupp Industrieservice and ThyssenKrupp Safway in the Materials Services business area; these disposals were completed by mid December 2009. As part of the ongoing portfolio optimization measures, the disposal of parts of the Marine Systems business area was initiated in April 2010. This resulted in the recognition of assets held for sale of €778 million at March 31, 2010; overall, non-current assets of €200 million and current assets of €578 million were reclassified.

The €693 million increase in total equity to €10,389 million was attributable mainly to the net income for the reporting period of €429 million and to net unrealized gains recognized in other comprehensive income from foreign currency translation (€401 million) and from derivative financial instruments (€137 million after taxes). This was partly offset by profit distributions (€158 million) and actuarial losses recognized in other comprehensive income (€164 million after taxes).

Non-current liabilities decreased in total by €1,087 million. This included a €1,210 million decrease in financial debt, which related in the amount of €749 million to the reclassification of a bond to current financial debt. This was partly offset by a €167 million increase in provisions for pension and similar obligations, €140 million of which was due to currency translation effects. In addition there was an increase of €227 million due to the updated interest rates used for the revaluation of pension and healthcare obligations at March 31, 2010. Reclassifications to liabilities associated with assets held for sale resulted in a decrease of €119 million.

Current liabilities increased overall by €1,686 million. This was due to a €1,001 million increase in current financial debt and the aforementioned €749 million reclassification of a bond from non-current financial debt.

The €322 million decrease in other current provisions was mainly due to the use of provisions for the restructuring measures initiated in the Group in fiscal 2008/2009, and to €49 million reclassifications to liabilities associated with assets held for sale.

The €154 million increase in trade accounts payable included €76 million currency translation effects. Improved demand in the reporting period also contributed to the rise. The increase was partly offset by the reclassification of €43 million to liabilities associated with assets held for sale.

The €266 million increase in other current financial liabilities was mainly caused by higher payment obligations from the purchase of property, plant and equipment for the major project in the USA. Current non-financial liabilities increased by €353 million, of which €129 million was attributable to exchange-rate effects. In addition there was a €280 million increase in liabilities from construction contracts and a €102 million rise in liabilities from annual maintenance contracts. Reclassifications to liabilities associated with assets held for sale resulted in a decrease of €298 million.

Liabilities associated with assets held for sale were €270 million higher. This includes a decrease of €288 million relating to the disposals of ThyssenKrupp Industrieservice and ThyssenKrupp Safway in the Materials Services business area which were initiated in October 2009 and completed in the reporting period. The disposal of parts of the Marine Systems business area initiated in April 2010 resulted in a €558 million increase in liabilities associated with assets held for sale at March 31, 2010. Overall, non-current liabilities of €132 million and current liabilities of €426 million were reclassified.

Risk report

The effects of the financial and economic crisis are continuing to impact ThyssenKrupp's business activities. Our systematic and efficient risk management system helps contain and manage these risks. There are no risks threatening the existence of the Company. We are countering the economic risks in the markets of importance to us with an extensive action program to reduce costs and increase efficiency in all areas of the Group.

As a result of the financial crisis, the focus of attention has shifted increasingly to financial risks such as liquidity and credit risks. ThyssenKrupp takes account of these risks and manages its liquidity requirements with foresight. Despite the difficult market environment, financing in fiscal 2009/2010 is on a secure foundation. At March 31, 2010 the Group had €9.4 billion in cash, cash equivalents and committed credit lines.

Credit risks (default risks) arise from the fact that the Group is exposed to possible default by a contractual party in relation to financial instruments, e.g. financial investments. In times of crisis, default risks take on greater significance; we therefore manage them with particular care as part of our business policy. Financial instruments used for financing are concluded within specified risk limits only with counterparties of very good credit standing and/or who are covered by a deposit guarantee fund.

Further financial risks such as currency, interest rate and commodity price risks are reduced by the use of derivative financial instruments. Restrictive principles regarding the choice of counterparties also apply to the use of these financial instruments.

In our assessment the risk of an economic setback is not over, so the operating risks for our business going forward remain high. The substantial increases on the procurement markets for iron ore and coking coal, which affect our steel activities, are part of this. To secure our competitiveness we are taking extensive measures – above all adjusting our selling prices to increased purchasing prices – to respond to the enormous price rises and the move from annual to quarterly contracts planned by the raw material suppliers.

In the Marine Systems business area uncertainties continue to exist in connection with the negotiations with the Greek customer on outstanding payments. Negative effects on our financial position and earnings cannot be excluded.

The Group's worldwide presence and longstanding customer relationships in various markets make us less dependent on individual sales markets and sectors, and helps moderate falls in demand.

Thanks to our committed and competent employees ThyssenKrupp is succeeding in mitigating the current risks in the various areas of the Group. Other risks, such as bad debt and changes in political and regulatory conditions, are monitored continuously. Beyond this, the detailed information contained in the risk report in our 2008/2009 Annual Report is still valid.

We report on pending lawsuits, claims for damages and other risks in Note 07.

Subsequent events, opportunities and outlook

Subsequent events

There were no reportable events.

No sustained economic recovery in 2010

At the beginning of 2010 the economic situation improved following the worst recession for decades, but there is still no sign of a self-sustaining recovery. For 2010 we expect global GDP to grow by 3.8%. After slipping 11.5% last year, world trade is expected to expand this year by 9.5%.

The economic prospects for the euro zone remain subdued, with GDP growth forecast at around 1%. There will be virtually no rise in consumer spending, and in light of underutilized capacities little impetus can be expected from business spending. As global trade picks up, exports will improve. The German economy is expected to grow by 1.5%. Given its strong export focus, the German economy will profit more than other countries from the recovery of the world economy.

The US economy is expected to expand by 2.9% in 2010. High debt levels in many households and the only slow recovery of the labor market will impact consumer spending.

The major emerging economies will step up the pace of expansion in 2010. China and India are expected to grow by 10.0% and 8.5% respectively, while the outlook for Brazil has also improved considerably.

Developments on the procurement markets pose a substantial risk to the still fragile global economic upturn. Prices for iron ore and coking coal are expected to rise sharply this year. Traditionally, prices for iron ore have been negotiated on the basis of annual contracts. As iron ore prices on the spot markets – which are of little importance in terms of quantity – have recently been significantly higher than the annual contract prices due to demand from China, the three ore producers that dominate the market intend to push through price rises of in part more than 100% and at the same time switch contracts with the steel industry from an annual to a quarterly basis. The first contracts have already been concluded for the 2nd calendar quarter of 2010. The enormous price increases will place significant burdens on the steel industry and its customers, for example in the automotive and engineering sectors, and may result in considerable price fluctuations. In addition, the price increases may lead to an increase in financing requirements at all stages of production which will further impede the ability of banks to supply liquidity to the real economy.

We anticipate the following developments on the sales markets of importance for ThyssenKrupp:

Expectations on the global steel market are cautiously optimistic. According to the spring forecast of the World Steel Association, global steel demand will increase by 11% in 2010; that corresponds to a crude steel output of around 1.4 billion metric tons. In Europe and the NAFTA region demand will be higher this year than in 2009, mainly due to restocking, but production and demand levels will still fall well short of previous years. There are no signs of a significant increase in real consumption, especially in Europe. Not least due to further capacity expansions worldwide, there is a continued risk on our core European market of increasing imports from third countries, in particular China. The inventory overhangs accumulated in China in 2009 and a more restrictive economic policy by the Chinese government could significantly dampen demand growth in the country this year. In the other emerging countries, steel consumption is expected to rise again slightly. The expected drastic increase in prices for iron ore and coking coal in the further course of the year will result in significantly higher steel prices.

• Demand for stainless flat products will recover in all regions this year, with worldwide growth of 10% forecast for 2010. The markets of Western Europe and North America are expected to expand by 10% and 18% respectively. In China the pace of growth will probably slow to 8%, while an increase of 13% is forecast for the rest of Asia.
• The global auto market will recover in 2010. In the current calendar year, production is forecast to expand by 10% to 65 million cars and light trucks. North America and Japan, which suffered the severest slumps in 2009, will grow more quickly. In China, the pace of expansion will slow as government stimulus programs are scaled back. German car manufacturers will benefit from rising export demand in 2010, which will offset the fall in domestic demand following the end of the rebate program.
• Following the sharp declines of the previous year, production expectations for the machinery sector remain subdued in the industrialized countries. Low capacity utilization levels in industry are impacting demand for new equipment. For Germany and the USA, a moderate 3% rise in output is expected; growth will remain more dynamic in China. The German plant engineering industry will profit from rising raw material prices, which will make many of the planned projects postponed due to the recession feasible again.
• The construction sector will remain weak in most industrialized countries in 2010. Construction output will decrease further in the USA in particular, but also in Western Europe. In Germany, there will be further growth in public-sector building in 2010 thanks to the government stimulus packages. However, this increase will not be enough to offset the decline in commercial construction. The Chinese and Indian construction sectors will remain strong.

Outlook

We are cautiously optimistic that the current economic recovery will prove sustainable. However, it is not yet possible to reliably assess the impact of the massive price increases for important raw materials.

We continue to anticipate that sales will stabilize in fiscal 2009/2010. Earnings are expected to improve significantly and return to profit, thanks in large part to the cost-cutting programs we have introduced. Adjusted earnings before interest and taxes (EBIT adjusted for nonrecurring items) will probably be in the high three-digit million euro range. Adjusted earnings before taxes (EBT adjusted for nonrecurring items) are expected to be in the low three-digit million euro range. Adjusted EBT will be significantly impacted by startup losses in the Steel Americas business area in the mid three-digit million euro range.

Our expectations for the individual business areas are as follows:

• Steel Europe Improvement in volumes and capacity utilization, average selling prices below prioryear level
• Steel Americas Negative EBT contribution in the mid three-digit million euro range due to startup losses for the steelmaking and processing facilities in Brazil and the USA

• Stainless Global Stabilization of volumes with improved base prices

• Materials Services Stabilization of volumes and selling prices

• Elevator Technology Continued high earnings contributions thanks to strong order backlog and stable modernization and maintenance business
• Plant Technology Good revenue and earnings visibility in project business due to order backlog with good earnings quality
• Components Technology Continued difficult environment for construction machinery components; improvement in automotive components and continued positive earnings contribution from slewing bearings for the wind energy sector
• Marine Systems Improved earnings quality through initiated consolidation of shipyard sites

In 2010/2011 we expect an improvement in the overall economic environment and further positive effects from our cost-cutting programs. This will have a corresponding influence on sales and earnings.

ThyssenKruppAG Condensedconsolidatedstatementoffinancialposition

Assetsmillion€

Note	Sept.30, 2009	March31, 2010
Intangibleassets	4,642	4,624
Property,plantandequipment	13,793	15,183
Investmentproperty	341	331
Investmentsaccountedforusingtheequitymethod	480	536
Otherfinancialassets	94	86
Othernon-financialassets	455	332
Deferredtaxassets	638	820
Totalnon-currentassets	20,443	21,912
Inventories,net	6,735	7,152
Tradeaccountsreceivable	5,120	5,819
Otherfinancialassets	1,253	577
Othernon-financialassets	1,724	1,843
Currentincometaxassets	252	248
Cashandcashequivalents	5,349	4,330
Assetsheldforsale 02	491	778
Totalcurrentassets	20,924	20,747
Totalassets	41,367	42,659

EquityandLiabilitiesmillion€

Note	Sept.30, 2009	March31, 2010
Capitalstock	1,317	1,317
Additionalpaidincapital	4,684	4,684
Retainedearnings*	3,643	3,739
Cumulativeothercomprehensiveincome*	#296\$	185
thereofrelatingtodisposalgroups(Sept.30,2009:(12-;March31,2010:1-
Treasurystock 06	#1,421\$	#1,410\$
EquityattributabletoThyssenKruppAG'sstockholders	7,927	8,515
Non-controllinginterest	1,769	1,874
Totalequity	9,696	10,389
Accruedpensionandsimilarobligations 05	7,525	7,692
Otherprovisions	792	818
Deferredtaxliabilities	307	242
Financialdebt	7,160	5,950
Otherfinancialliabilities	4	0
Othernon-financialliabilities	46	45
Totalnon-currentliabilities	15,834	14,747
Otherprovisions	2,040	1,718
Currentincometaxliablilities	794	758
Financialdebt	305	1,306
Tradeaccountspayable	4,169	4,323
Otherfinancialliabilities	1,585	1,851
Othernon-financialliabilities	6,656	7,009
Liabilitiesassociatedwithassetsheldforsale 02	288	558
Totalcurrentliabilities	15,837	17,523
Totalliabilities	31,671	32,270
Totalequityandliabilities	41,367	42,659

*Prioryearfigureadjusted

ThyssenKruppAG Condensedconsolidatedstatementofincome

million€,earningspersharein€

	Note	1sthalf ended March31, 2009	1sthalf ended March31, 2010	2ndquarter ended March31, 2009	2ndquarter ended March31, 2010
Netsales	10	21,381	19,458	9,859	10,107
Costofsales*	03	#18,733\$	#16,501\$	#8,998\$	#8,623\$
Grossprofit*		2,648	2,957	861	1,484
Sellingexpenses		#1,417\$	#1,307\$	#682\$	#664\$
Generalandadministrativeexpenses*		#1,233\$	#1,155\$	#607\$	#579\$
Otheroperatingincome		230	133	154	56
Otheroperatingexpenses*		#225\$	#162\$	#104\$	#67\$
Gain/(loss-onthedisposalofsubsidiaries,net		0	93	0	0
Income/9loss:fromoperations		3	559	9378:	230
Income/(expense-fromcompaniesaccountedforusingtheequitymethod		#15\$	35	#4\$	28
Interestincome		135	170	63	75
Interestexpense		#481\$	#497\$	#242\$	#238\$
Otherfinancialincome/(expense-,net		143	237	106	96
Financialincome/9expense:,net		9218:	955:	977:	939:
Income/9loss:beforeincometaxes		9215:	504	9455:	191
Incometax(expense-/income		16	#75\$	93	43
Netincome/9loss:		9199:	429	9362:	234
Attributableto:
ThyssenKruppAG'sstockholders		#161\$	370	#329\$	206
Non-controllinginterest		#38\$	59	#33\$	28
Netincome/9loss:		9199:	429	9362:	234
Basicanddilutedearningspershare	11
Netincome/9loss:9attributabletoThyssenKruppAG'sstockholders:		90.35:	0.80	90.71:	0.45

*Prioryearfigureadjusted

ThyssenKruppAG Condensedconsolidatedstatementofcomprehensiveincome

million€

	1sthalf ended March31, 2009	1sthalf ended March31, 2010	2ndquarter ended March31, 2009	2ndquarter ended March31, 2010
Netincome/9loss:	9199:	429	9362:	234
Foreigncurrencytranslationadjustment
Changeinunrealizedgains/(losses-,net	1	387	187	275
Netrealized(gains-/losses	0	14	0	0
Netunrealizedgains/9losses:	1	401	187	275
Unrealizedgains/(losses-fromavailable-for-salefinancialassets
Changeinunrealizedholdinggains/(losses-,net	#5\$	1	#8\$	1
Netrealized(gains-/losses	0	0	0	0
Taxeffect	2	0	3	0
Netunrealizedholdinggains/9losses:	93:	1	95:	1
Actuarialgains/(losses-frompensionsandsimilarobligations
Changeinactuarialgains/(losses-,net	#546\$	#207\$	138	#282\$
Taxeffect	168	43	#51\$	66
Netactuarialgains/9losses:frompensionsandsimilarobligations	9378:	9164:	87	9216:
Gains/(losses-resultingfromassetceiling
Changeingains/(losses-,net	1	#60\$	0	3
Taxeffect	0	18	0	#1\$
Netgains/9losses:resultingfromassetceiling	1	942:	0	2
Unrealized(losses-/gainsonderivativefinancialinstruments
Changeinunrealizedgains/(losses-,net	#21\$	165	128	109
Netrealized(gains-/losses	#1\$	#4\$	#3\$	1
Taxeffect	7	#24\$	#40\$	#5\$
Netunrealizedgains/9losses:	915:	137	85	105
Shareofunrealizedgains/(losses-ofinvestmentsaccountedforusingtheequity-method	5	5	8	4
Othercomprehensiveincome	9389:	338	362	171
Totalcomprehensiveincome	9588:	767	0	405
Attributableto:
ThyssenKruppAG'sstockholders	9552:	637	18	326
Non-controllinginterest	#36\$	130	#18\$	79

ThyssenKruppAG Condensedconsolidatedstatementofchangesinequity

million€9exceptnumberofshares:

					EquityattributabletoThyssenKruppAG'sstockholders
							Cumulativeothercomprehensiveincome
	Numberof shares outstanding	Capital stock	Additional paid incapital	Retained earnings	Foreign currency translation adjustment	Available for-sale financial assets	Derivative financial instruments	Shareof investments accounted forusing theequity method	Treasury stock	Total	Non controlling interest	Total equity
Balanceasof Sept.30,2008	463,473,492	1,317	4,684	6,845	9283:	92:	9130:	93:	91,421:	11,007	482	11,489
Netloss Othercomprehensive				#161\$						9161:	#38\$	9199:
income Totalcomprehensive income				#381\$ 9542:	0 0	#3\$ 93:	#16\$ 916:	9 9		9391: 9552:	2 936:	9389: 9588:
Profitattributableto non-controllinginterest Dividendpayment				#603\$						0 9603:	#37\$ 0	937: 9603:
Share-based compensation Otherchanges				3 #32\$						3 932:	0 #50\$	3 982:
Balanceasof March31,2009	463,473,492	1,317	4,684	5,671	9283:	95:	9146:	6	91,421:	9,823	359	10,182
Balanceasof Sept.30,2009	463,473,492	1,317	4,684	3,643	9329:	5	33	95:	91,421:	7,927	1,769	9,696
Netincome Othercomprehensive				370						370	59	429
income Totalcomprehensive income				#214\$ 156	377 377	1 1	90 90	13 13		267 637	71 130	338 767
Profitattributableto non-controllinginterest Dividendpayment Treasurystocksold Taxeffectsonincome andexpensedirectly recognizedinequity Share-based compensation Otherchanges	391,717			#139\$ #3\$ 1 #7\$ 88					12 #1\$	0 9139: 9 0 97: 88	#19\$ 0 0 0 0 #6\$	919: 9139: 9 0 97: 82
Balanceasof March31,2010	463,865,209	1,317	4,684	3,739	48	6	123	8	91,410:	8,515	1,874	10,389

ThyssenKruppAG Condensedconsolidatedstatementofcashflows

		million€
--	--	----------	--

	1sthalf	1sthalf	2ndquarter	2ndquarter
	ended	ended	ended	ended
	March31,2009	March31,2010	March31,2009	March31,2010
Operating:
Netincome/(loss-	#199\$	429	#362\$	234
Adjustmentstoreconcilenetincome/(loss-tooperatingcashflows:
Deferredincometaxes,net	#237\$	#165\$	#147\$	#111\$
Depreciation,amortizationandimpairmentofnon-currentassets	777	680	419	346
Reversalsofimpairmentlossesofnon-currentassets	#2\$	#3\$	#1\$	0
(Income-/lossfromcompaniesaccountedforusingtheequitymethod,netof
dividendsreceived	20	#35\$	9	#28\$
(Gain-/lossondisposalofnon-currentassets,net	#22\$	#93\$	#6\$	1
Changesinassetsandliabilities,netofeffectsofacquisitionsanddivestituresandothernon-cashchanges:
-inventories	1,050	#328\$	1,261	#174\$
		#586\$		#962\$
-tradeaccountsreceivable	1,941		773
-accruedpensionandsimilarobligations	#91\$	#118\$	#36\$	#33\$
-otherprovisions	#138\$	#311\$	#30\$	#80\$
-tradeaccountspayable	#2,261\$	116	#565\$	459
-otherassets/liabilitiesnotrelatedtoinvestingorfinancingactivities	#215\$	290	168	532
		9124:		184
Operatingcashflows	623		1,483
Investing:
Purchaseofinvestmentsaccountedforusingtheequitymethodandnon-currentfinancialassets	#26\$	#22\$	#17\$	#1\$
Expendituresforacquisitionsofconsolidatedcompanies*	#17\$	#46\$	#15\$	0
		3		3
Cashacquiredfromacquisitions	1		0
Capitalexpendituresforproperty,plantandequipment(inclusiveofadvancepayments-andinvestmentproperty	#1,916\$	#1,404\$	#866\$	#718\$
Capitalexpendituresforintangibleassets(inclusiveofadvancepayments-	#78\$	#46\$	#33\$	#22\$
Proceedsfromdisposalsofinvestmentsaccountedforusingtheequitymethodandnon-currentfinancialassets	40	2	7	1
Proceedsfromdisposalsofpreviouslyconsolidatedcompanies**	1	479	1	1
Cashofdisposedbusinesses	0	#5\$	0	0
Proceedsfromdisposalsofproperty,plantandequipmentandinvestmentproperty	75	27	11	15
Proceedsfromdisposalsofintangibleassets	16	2	7	0
Cashflowsfrominvestingactivities	91,904:	91,010:	9905:	9721:
Financing:
Proceedsfromissuanceofbonds	1,485	0	1,485	0
Repaymentofbonds	#500\$	0	#500\$	0
Proceedsfromliabilitiestofinancialinstitutions	2,739	260	72	92
Repaymentsofliabilitiestofinancialinstitutions	#698\$	#645\$	#504\$	#57\$
Proceedsfromnotespayableandotherloans	79	27	11	8
(Decrease-/increaseinbillsofexchange	3	2	#13\$	#6\$
Decreaseofliabilitiesduetosalesofreceivablesnotderecognizedfromthebalancesheet	#3\$	0	#1\$	0
(Increase-/decreaseincurrentsecurities	#46\$	174	#9\$	6
Proceedsfromnon-controllinginteresttoequity	0	500	0	0
Proceedsfromtreasurysharessold	0	2	0	0
PaymentofThyssenKruppAGdividend	#603\$	#139\$	#603\$	#139\$
Profitattributabletonon-controllinginterest	#37\$	#19\$	#19\$	#6\$
Expendituresforacquisitionsofsharesofalreadyconsolidatedcompanies	#159\$	#12\$	#159\$	#7\$
Otherfinancingactivities	#7\$	98	#14\$	110
Cashflowsfromfinancingactivities	2,253	248	9254:	1
Netincrease/9decrease:incashandcashequivalents	972	9886:	324	9536:
Effectofexchangeratechangesoncashandcashequivalents	#9\$	120	37	78
Cashandcashequivalentsatbeginningofreportingperiod	2,725	5,375	3,327	5,067
		4,609		4,609
Cashandcashequivalentsatendofreportingperiod	3,688		3,688
>thereofcashandcashequivalentswithindisposalgroups?	)0*	)278*	)0*	)278*
Additionalinformationregardingcashflowsfrominterest,
dividendsandincometaxeswhichareincludedinoperatingcashflows:
Interestreceived	76	112	33	44
Interestpaid	204	330	159	258
Dividendsreceived	6	0	3	0
Incometaxesreceived/(paid-	190	#168\$	241	#106\$

*PrioryearfigureadjustedduetotheadoptionoftherevisedIAS7. **Theamountofthe1stquarterendedDec.31,2009hasbeenadjustedduetothereclassificationofthesettlementoffinancialdebtof€170millioninthecontextofthedisposalofconsolidatedcompaniesinproceeds

frominvestingactivities.

Seenote12tothecondensedconsolidatedfinanicalstatements.

ThyssenKruppAG Notestotheinterimcondensed consolidatedfinancialstatements

CorporateInformation

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, collectivelythe"Group",forthe periodfromOctober01,2009toMarch31,2010,wereauthorizedfor issueinaccordancewitharesolutionoftheExecutiveBoardonMay 07,2010.

Basisofpresentation

TheaccompanyingGroup'sinterimcondensedconsolidatedfinancial statements have been prepared in accordance with section 37w of the German Securities Trading Act #WpHG\$ and International FinancialReportingStandards #IFRS\$anditsinterpretationsadopted by the International Accounting Standards Board #IASB\$ for interim financial information effective within the European Union. Accordingly, these financial statements do not include all of the information and footnotes required by IFRS for complete financial statementsforyearendreportingpurposes.

The accompanying Group's interim condensed consolidated financial statements have been reviewed. In the opinion of Management,theinterimfinancialstatementsincludealladjustments of a normal and recurring nature considered necessary for a fair presentation of results for interim periods. Results of the period ended March 31, 2010, 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 applicationofpoliciesandreportedamountsofassetsandliabilities, incomeandexpenses.Actualresultsmaydifferfromtheseestimates.

Theaccountingprinciplesandpracticesasappliedintheinterim condensed consolidated financial statements correspond to those pertaining to the most recent annual consolidated financial statements. A detailed description of the accounting policies is publishedinthenotestotheconsolidatedfinancialstatementsofour annualreport2008/2009.

Recentlyadoptedaccountingstandards

In fiscal year 2009/2010, ThyssenKrupp adopted the following standards,interpretationsandamendments:

InSeptember2007,theIASBissueda revisedversionofIAS1 "Presentation of Financial Statements" that is aimed at improving users' ability to analyse and compare the information given in financial statements. The application of the revised standard is compulsoryforfiscalyearsbeginningonorafterJanuary01,2009. The adoption ofthe standard has amaterial impactonthe Group's consolidatedfinancialstatements.

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 qualifyingassetshouldbecapitalizedaspartofthecostoftheasset. Thecurrentoptionofimmediatelyrecognizingborrowingcostsasan expensewill be removed. The application ofthe revisedstandardis compulsoryforfiscalyearsbeginningonorafterJanuary01,2009. The revision has no impact on the Group's consolidated financial statements because already beforethe amendment ofthestandard borrowing costs directly attributableto a qualifying asset has been capitalizedaspartofproductioncosts.

In February 2008 the IASB issued amendments to "IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements – Puttable Financial Instruments and ObligationsArisingonLiquidation".Theamendmentsmainlyaddress theclassificationofparticulartypesoffinancialinstrumentsasequity or as a liability. Additional disclosures are required for the instruments affected by the amendments. The application of the amendments is compulsory for fiscal years beginning on or after January 01, 2009. Currently, Management does not expect the adoptionoftheamendedstandardstohaveamaterialimpactonthe Group'sconsolidatedfinancialstatements.

In July 2008 the IASB issued "Eligible Hedged Items – Amendment to IAS 39 Financial Instruments: Recognition and Measurement". The amendment clarifies howthe existing principles underlying hedge accounting should be applied in two particular situations – the designation of inflation in a financial hedged item and the designation of a one-sided risk in a hedged item. The application of the amendment is compulsory for fiscal years beginning on or after July 01, 2009 and has to be applied retrospectively.Currently,Managementdoesnotexpecttheadoption of the amendment to have a material impact on the Group's consolidatedfinancialstatements.

In March 2009the IASB issued "Embedded Derivatives"which amends IFRIC 9 "Reassessment of Embedded Derivatives" and IAS 39 "Financial Instruments". The amendments clarifythe accounting treatmentofembeddedderivativesforentitiesthatmakeuseofthe reclassification of financial instruments. The application of the amendments is compulsory for fiscal years beginning on or after June 30, 2009 and has to be applied retrospectively. Currently, Management does not expect the adoption of the amendments to have a material impact on the Group's consolidated financial statements.

InJanuary2008,theIASBalsoissuedanamendmenttoIFRS2 "Share-based Payment". The amendment clarifies that vesting conditionsareserviceconditionsandperformanceconditionsonly.It alsospecifiesthatallplancancellations,whetherbytheentityorby other parties, should receive the same accounting treatment. The application ofthe amended standard is compulsoryforfiscal years beginningonorafterJanuary01,2009.Currently,Managementdoes notexpecttheadoptionoftheamendedstandardtohaveamaterial impactontheGroup'sconsolidatedfinancialstatements.

InJanuary2008,theIASBissuedtheamendedversionsofIFRS 3 "BusinessCombinations" andIAS 27 "ConsolidatedandSeparate Financial Statements". A material change of IFRS 3 concerns the accountingforacquisitionsinvolvingthepurchaseoflessthan100% of the shares of a company. An option has been added allowing entitiestorecognizegoodwillfromanacquisitionbythe"fullgoodwill method", i.e. includingthe portion attributableto minority interests. Furthermore, all acquisition-related costs must be expensed as incurred. In accordance with IAS 27, acquisitions or disposals of shares without loss of control must be accounted for as equity transactions. In the context of the disposal of shares with loss of controlany retainedinvestmentis recognizedatfairvalue,withany difference to the previous carrying amount recognized in profit or loss. The amended standards must be applied to business combinationsinfiscalyearsbeginningonorafterJuly01,2009.The adoptionofthetwoamendedstandardshasamaterialimpactonthe Group'sconsolidatedfinancialstatements.

In March 2009 the IASB issued an amendment to IFRS 7 "Financial Instruments: Disclosures" titled "Improving Disclosures about Financial Instruments". The amendment enhances the disclosure requirements about fair value measurements and about liquidityrisk.Theapplicationoftheamendedstandardiscompulsory forfiscal years beginning on or after January 01,2009. Inthefirst year of application comparative disclosures are not required. The initialapplicationatThyssenKruppwillleadtoadditionaldisclosures intheNotes.

InJuly2007,theIFRICissuedIFRIC14"IAS19–TheLimitona Defined Benefit Asset, Minimum Funding Requirements and their Interaction".Theinterpretationprovidesgeneralguidanceonhowto assessthelimitinIAS19"EmployeeBenefits"ontheamountofthe surplusthatcanbe recognizedasanasset.Italsoexplainshowthe pensionsassetorliabilitymaybeaffectedwhenthereisastatutory orcontractualminimumfunding requirement. The interpretationwill standardise practice and ensure that entities recognize an asset in relationtoasurplusonaconsistentbasis.IntheEU,theapplication of the interpretation is compulsory for fiscal years beginning on or afterJanuary01,2009.Currently,Managementdoesnotexpectthe adoption of the Interpretation to have a material impact on the Group'sconsolidatedfinancialstatements.

In May 2008the IASB issued "Improvementsto IFRSs", afirst collection of minor amendments to existing IFRSs. This standard presents amendments to 20 IFRSs in two parts. The first part includesaccountingchanges relatingtopresentation, recognition or measurement. The second part includes terminology or editorial changes. Unless otherwise specified in the specific standard, the application of the amdendments is compulsory for fiscal years beginningonorafterJanuary01,2009.Currently,Managementdoes notexpecttheadoptionoftheamendedstandardstohaveamaterial impactontheGroup'sconsolidatedfinancialstatements.

Recentlyissuedaccountingstandards

Infiscalyear2009/2010,thefollowingstandards,interpretationsand amendmentsto already existing standards have been issuedwhich stillmustbeendorsedbytheEUbeforetheycanbeadopted:

InNovember2009theIASBissueda revisedversionofIAS24 "Related Party Disclosures". The revised standard simplifies the disclosurerequirementsforgovernment-relatedentitiesandclarifies the definition of a related party. The application of the amended standardiscompulsoryforfiscalyearsbeginningonorafterJanuary 01, 2011, while earlier application is permitted. Currently, Managementdoesnotexpecttheadoptionoftheamendedstandard – if endorsed bythe EU inthe current version –to have amaterial impactontheGroup'sconsolidatedfinancialstatements.

In November 2009 the IASB issued the new standard IFRS 9 "Financial Instruments" on the classification and measurement of financial assets. This standard is the first part of the three-part project to replace completely IAS 39 "Financial Instruments: Recognition and Measurement" which should be completed by the end of 2010. In accordance with the approach of IFRS 9 financial assets are measured at amortized cost or fair value. The classificationtooneofthetwomeasurementcategoriesisbasedon howanentitymanagesitsfinancialinstruments #socalled business model\$andthecontractualcashflowcharacteristics ofthefinancial assets.Theapplicationofthestandardiscompulsoryforfiscalyears beginning on or after January 01, 2013,while earlier application is permitted for 2009 year-end financial statements. Currently, Managementisnotabletofinallyassesstheimpactsoftheadoption ofthestandard–ifendorsedbytheEUinthecurrentversion.

InNovermber2009theIASBissuedanamendmenttoIFRIC14, whichisitselfaninterpretationofIAS19"EmployeeBenefits",titled "PrepaymentsofaMinimumFundingRequirement".Theamendment applies in the limited circumstances when an entity is subject to minimum funding requirements and makes an early payment of contributionsto coverthose requirements. The amendment permits such an entitytotreatthe benefit of such an early payment as an asset. The application of the amended interpretation is compulsory forfiscalyearsbeginningonorafterJanuary01,2011,whileearlier application is permitted for 2009 year-end financial statements. Currently, Management does not expect the adoption of the interpretation–ifendorsedbytheEUinthecurrentversion–tohave amaterialimpactontheGroup'sconsolidatedfinancialstatements.

In November 2009 the IFRIC issued IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments". The interpretation clarifies the requirements of IFRS when an entity renegotiates the termsofafinancialliabilitywithitscreditorandthecreditoragreesto accept the entity's shares or other equity instruments to settle the financialliabilityfullyorpartially.Theapplicationoftheinterpretation is compulsoryforfiscal years beginning on or after July 01, 2010, while earlier application is permitted. Currently, Management does notexpecttheadoptionoftheinterpretation–ifendorsedbytheEU in the current version – to have a material impact on the Group's consolidatedfinancialstatements.

01/ Acquisitionsanddisposals

In the 1st half year ended March 31, 2010, the Group acquired companiesthatare,onanindividualbasis,immaterial.Basedonthe valuesasoftheacquisitiondate,theseacquisitionsaffectedintotal theGroup'sconsolidatedfinancialstatementsaspresentedbelow:

million€
	Carrying amountsasof acquisition date	1sthalfendedMarch31,2010 Adjustments	Fairvalues asof acquisition date
Intangibleassets	3	0	3
Tradeaccountsreceivable	5	0	5
Cashandcashequivalents	3	0	3
Totalassetsacquired	11	0	11
Currentfinancialdebt	4	0	4
Tradeaccountspayable	2	0	2
Othercurrentnon-financialliabilities	2	0	2
Totalliabilitiesassumed	8	0	8
Netassetsacquired	3	0	3
Non-controllinginterest			0
Purchaseprices			3
thereof:paidincashandcash equivalents			3

In October 2009, as part of the portfolio optimization program, the Group initiated the disposal of ThyssenKrupp Industrieservice and ThyssenKruppSafwayoftheMaterialsServicesbusinessareawhich was consummated end of November 2009 and mid of December 2009, respectively. ThyssenKrupp Industrieservice is a facility management service provider; its product range embraces maintenance, supply chain services, location services andtechnical cleaningaswellasindustrialassemblyandinstallation.Safwayisan Americanscaffoldingservicescompany. These disposals aswell as other smaller disposals that are, on an individual basis, immaterial

affected in total based on the values as of the disposal date the Group'sconsolidatedfinancialstatementsaspresentedbelow:

million€

Goodwill	March31,2010 97
Otherintangibleassets	6
Property,plantandequipment	173
Investmentsaccountedforusingtheequitymethod	1
Otherfinancialassets	3
Deferredtaxassets	2
Inventories	27
Tradeaccountsreceivable	163
Othercurrentfinancialassets	9
Othercurrentnon-financialassets	9
Currentincometaxassets	2
Cashandcashequivalents	5
Totalassetsdisposedof	497
Accruedpensionandsimilarobligations	12
Othernon-currentprovisions	23
Deferredtaxliabilities	27
Non-currentfinancialdebt	2
Othercurrentprovisions	20
Currentincometaxliablilities	3
Currentfinancialdebt	20
Tradeaccountspayable	13
Othercurrentfinancialliabilities	142
Othercurrentnon-financialliabilities	29
Totalliabilitiesdisposedof	291
Netassetsdisposedof	206
Cumulativeothercomprehensiveincome	13
Non-controllinginterest	2
Gain/(loss-resultingfromthedisposals	93
Sellingprices thereof:receivedincashandcashequivalents	310 310

02/ DisposalGroups

In April 2010the disposal of parts oftheMarineSystems business areahasbeeninitiatedaspartoftheportfoliooptimizationprogram. Thetransaction comprises onthe one hand ofthe disposals ofthe TKMS Blohm + Voss Nordseewerke GmbH in the context of the formation of a 50:50 joint venture for the design and program management of naval vessels and on the other hand of the 100% disposalofBlohm+VossShipyardsGmbH,operatinginshipbuilding in particular of premium-segment yachts, and of an 80% stake in each of Blohm + Voss Repair GmbH and Blohm + Voss Industries GmbH, both engaged in ship repairing and the manufacturing of components. Additionally, the construction capacities for civil ship constructionofformerHDWGaardenwillbedisposedof.

The transaction does not meet the requirements of IFRS 5 for presentation as a discontinued operation. Therefore, revenues and expenses will continue to be presented as income from continuing operations until the date of disposal; this is also applicable for the impairment losstriggered bythe intended disposalof €6million on property, plant and equipment resultingfromthe write-down ofthe

assets to fair value less costs to sell which is recorded in cost of sales.With regardtotheamountsthatwillbefinallydeconsolidated aftertheconsummationofthetransaction,theamountspresentedin thefollowingtableasofMarch31,2010,areonlypreliminary.

million€

	March31,
	2010
Goodwill	128
Otherintangibleassets	11
Property,plantandequipment,net	49
Otherfinancialassets	7
Deferredassets	5
Inventories	56
Tradeaccountsreceivable,net	43
Othercurrentfinancialassets	14
Othercurrentnon-financialassets	187
Cashandcashequivalents	278
Assetsheldforsale	778
Accruedpensionandsimilarobligations	119
Othernon-currentprovisions	7
Deferredtaxliabilities	2
Othernon-currentfinancialliabilities	4
Othercurrentprovisions	49
Currentincometaxliabilities	2
Currentfinancialdebt	10
Tradeaccountspayable	43
Othercurrentfinancialliabilities	24
Othercurrentnon-financialliabilities	298
Liabilitiesassociatedwithassetsheldforsale	558

03/ Costofsales

Inthe1sthalfyearendedMarch31,2010,includedincostofsales arewrite-downs ofinventoriesof€28millionwhichmainly relateto the Steel Europe, Stainless Global and Components Technology businessareas.AsofSeptember30,2009,write-downsamountedto €317 million. Furthermore, impairment losses on intangible assets, property, plant and equipment and investment property of €22 millionwere recognized in cost of saleswith €16million relatingto the2ndquarterendedMarch31,2010.

04/ Share-basedcompensation

Managementincentiveplans

In January 2010, ThyssenKrupp granted 37,240 stockrights under the eighth installment of the mid-term incentive plan. At the same time, in the 2nd quarter ended March 31, 2010, the stock rights grantedinthefifthinstallmentofthemid-termincentiveplanexpired withoutany payment dueadownwardtrendofThyssenKruppValue Added #TKVA\$ inthe performance-period. Dueto a downwardtrend of ThyssenKrupp Value Added #TKVA\$, in the 2nd quarter ended March 31, 2010, the Group recorded from the mid-term incentive plan only expenses of €0.1 million #2nd quarter ended March 31, 2009:incomeof€11.1million\$.Inthe1sthalfyearendedMarch31, 2010, the mid-term incentive plan resulted in an expense of €0.1 million #1st half year ended March 31, 2009: income of €17.7 million\$.

AfterthefirsttrancheoftheGroup'sSharePurchaseProgramof fiscalyear2007/2008hadbeensettledwiththepurchaseof350,924 ThyssenKruppsharesatadiscountbythebeneficiariesinDecember 2009, the second tranche of the Group's Share Purchase Program wassettledwiththe purchase of 40,793 ThyssenKruppshares at a discount in March 2010. The Group's Share Purchase Program resulted in no expense in the 2nd quarter ended March 31, 2010 #2ndquarterendedMarch31,2009:0\$andin€0.9millioninthe1st half year ended March 31, 2010 #1st half year ended March 31, 2009:€5.5million\$.

05/ Accruedpensionandsimilarobligations

Based on updated interest rates and fair value of plan assets, an updated valuation of accrued pension and health care obligations was performed as of March 31, 2010, taking into account these effectswhileotherassumptionsremainedunchanged.

million€

	Sept.30, 2009	March31, 2010
Accruedpensionliability	6,068	6,290
Accruedpostretirementobligationsotherthanpensions	1,076	1,137
Otheraccruedpension-relatedobligations	393	384
Reclassificationduetothepresentationasliabilities
associatedwithassetsheldforsale	#12\$	#119\$
Total	7,525	7,692

The Group applied the following weighted average assumptions to determinepensionandpostretirementbenefitobligationsotherthan pensions:

in%

	Sept.30,2009		March31,2010
	Germany	Outside Germany	Germany	Outside Germany
Discountrateforaccrued
pensionliability	5.25	5.24	4.75	5.32
Discountratefor
postretirement
obligationsother
thanpensions
(onlyUSA/Canada-	—	5.50	—	5.75

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

million€

	1sthalf ended March31,2009		1sthalf ended March31,2010		2ndquarter ended March31,2009		2ndquarter ended March31,2010
	Germany	Outside Germany	Germany	Outside Germany	Germany	Outside Germany	Germany	Outside Germany
Servicecost	30	13	33	14	15	6	16	7
Interestcost	162	61	144	53	81	31	72	27
Expectedreturnonplanassets	#6\$	#52\$	#6\$	#50\$	#3\$	#26\$	#3\$	#25\$
Curtailmentandsettlementgains	0	#1\$	0	0	0	0	0	0
Terminationbenefitexpense	0	8	0	0	0	8	0	0
Netperiodicpensioncost	186	29	171	17	93	19	85	9

The net periodic postretirement benefit cost for health care obligationsisasfollows:

million€

	1sthalf ended March31, 2009	1sthalf ended March31, 2010	2ndquarter ended March31, 2009	2ndquarter ended March31, 2010
	USA/Canada	USA/Canada	USA/Canada	USA/Canada
Servicecost	5	3	2	2
Interestcost	34	27	17	14
Expectedreturnonreimbursementrights	#3\$	#2\$	#2\$	#1\$
Pastservicecost	#25\$	#16\$	#1\$	#2\$
Curtailmentandsettlementgains	#20\$	0	0	0
Netperiodicpostretirementbenefitcost	99:	12	16	13

06/ Totalequity

In the context of the settlement of the Group's Share Purchase Program of fiscal year 2007/2008, as of December 02, 2009, 350,924 treasury shares were sold to the beneficiaries of the first trancheandasofMarch04,2010,40,793treasurysharesweresold tothebeneficiariesofthesecondtrancheusingapriceof€24.62per shareasabasisforthediscountedsellingprice.

BytheresolutionoftheAnnualGeneralMeetingonJanuary21, 2010,ThyssenKruppAGisauthorizedthroughJanuary20,2015,to purchasetreasurystockforcertainpredefinedpurposesuptoatotal of 10% of the capital stock at the time of the resolution. Treasury stockcanalsobepurchasedbyusingequity derivatives #putorcall optionsoracombinationofboth\$.

07/ Contingenciesincludingpendinglawsuits andclaimsfordamages

Guarantees

ThyssenKrupp AG and, in individual cases, its subsidiaries have issued guarantees in favor of business partners or lenders. The following table shows obligations under guarantees where the principaldebtorisnotaconsolidatedGroupcompany:

million€
	Maximum potential amountof future payments asof March31,2010	Provisionasof March31,2010
Advancepaymentbonds	232	1
Performancebonds	73	1
Thirdpartycreditguarantee	38	0
Residualvalueguarantees	45	1
Otherguarantees	44	0
Total	432	3

Thetermsofthoseguaranteesdependonthetypeofguaranteeand 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 or non-performance with respecttothe warranted qualityordefaultunderaloanagreement.

All guarantees issued by or issued by instruction of ThyssenKrupp AG or subsidiaries upon request of the 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 thirdparty,thensuchathirdpartyisgenerally requestedtoprovide additionalcollateralinacorrespondingamount.

Commitmentsandothercontingencies

Compared to September 30, 2009, in the Steel Americas and Stainless Global business areas the commitment to enter into investment projects in Brazil and North America decreased by €1.0billionto€1.7billion.

Pendinglawsuitsandclaimsfordamages

The Group is involved in pending and threatened litigation in connection with the purchase and the sale of certain companies, which may lead to partial repayment of the purchase price or the award of damages. In addition, damage claims may be payable to contractual partners, customers, consortium partners and subcontractors under performance contracts. Some ofthese claims have proven unfounded, have been ended by settlement or expired under the statute of limitations. A number of legal and regulatory proceedingsarestillpending.

There have been no significant changes since September 30, 2009toothercontingencies,includingpendinglitigations.

08/ Derivativefinancialinstruments

The notional amounts and fair values of the Group's derivative financialinstrumentsareasfollows:

million€

	Notional amount Sept.30,	Fair value Sept.30,	Notional amount March31,	Fair value March31,
	2009	2009	2010	2010
Derivativefinancial instruments
Assets
Foreigncurrency derivativesincluding
embeddedderivatives	4,693	214	4,378	207
Interestrate
derivatives*	786	37	27	4
Commodityderivatives	839	108	502	154
Total	6,318	359	4,907	365
Liabilities
Foreigncurrency derivativesincluding
embeddedderivatives	4,112	155	2,165	101
Interestrate
derivatives*	1	0	1,626	20
Commodityderivatives	374	41	744	161
Total	4,487	196	4,535	282

*inclusiveofcrosscurrencyswaps

09/ Relatedpartiestransactions

ESGLegierungenGmbHisclassifiedasarelatedpartyduetothefact thataclosememberofthefamilyofanExecutiveBoardmemberisa managing director. Inthe 1st half year ended March 31, 2010,the Group recorded sales of €0.2 million with ESG Legierungen GmbH fromthe sale of zinc. Inthe same periodthe Group purchased zinc alloywithavalueof€4thousandfromESGLegierungenGmbH.The transactions were carried out at market conditions and resulted in tradeaccountsreceivableof€44thousandasofMarch31,2010.

TheHeitkamp& ThumannGroup located inDüsseldorfandthe Heitkamp Baugruppe located in Herne are classified as related partiesduetothefactthatamember oftheSupervisoryBoard has significant influence on both Groups. In the 1st half year ended March 31, 2010, the ThyssenKrupp Group recorded sales of €8.4 million withthe Heitkamp & Thumann Groupfromthe sale of steel andstainlessmaterialaswellasfromindustrialservicingandsales of€0.2millionwiththeHeitkampBaugruppefromthesaleofgoods. Inthe same period ThyssenKrupp purchased goodswith a value of €7thousandfromtheHeitkamp&ThumannGroupandgoodswitha valueof€0.1millionfromtheHeitkampBaugruppe.Thetransactions were carried out at market conditions. As of March 31, 2010, the transactionswiththe Heitkamp & Thumann Group resulted intrade accounts receivable of €1.7 million and notrade accounts payable, the transactions with the Heitkamp Baugruppe resulted in trade accounts receivableof€11thousandandtradeaccountspayableof €29thousand.

Inthe 1st half yearendedMarch 31, 2010, aGroupsubsidiary recordedsales of€41thousand resultingfroma€2millionelevator modernization contractwhichthe subsidiary received in 2006/2007 fromanentitybelongingtotheAlfriedKruppvonBohlenandHalbach Foundation.

10/Segmentreporting

Since the implementation of the new organizational structure as of October 01, 2009, the Group is organized in the following eight businessareasthat representtheGroup'sactivitieswithinmaterials and technologies. The business areas are in line with the internal organizational and reporting structure. Prior yearfigures have been adjustedaccordingly.

Steel Europe: This business area brings together the premium flat carbonsteel activities,from intelligentmaterial solutionstofinished parts.

Steel Americas: This business area includes the production, processingandmarketingofhigh-qualitysteelproductsinNorthand South America. It also contains the steelmaking and processing plantscurrentlyunderconstructioninBrazilandUSA.

Stainless Global: This business area is a supplier of flat stainless steelproductsandhighperformancematerialssuchasnickelalloys andtitanium.Thebusinessareaalsoincludesthenewstainlesssteel millinUSA.

MaterialsServices: The business area activities comprisematerials distribution, logistics and services, and the provision of technical services.Inadditionto rolledsteel,stainlesssteel,tubesand pipes, nonferrous metals and plastics, Materials Services also offers services from processing and logistics to warehouse and inventory management through to supply chain management. The business area offers technical and infrastructure services in the areas of railwayandconstructionequipment,industrialplantsandsteelmills.

Elevator Technology: This business area is active in the construction, modernization and servicing of elevators, escalators, movingwalks,stairandplatformliftsaswellaspassengerboarding bridges.Alongsideafullrangeofinstallationsforthevolumemarket, thebusinessareaalsodeliverscustomizedsolutions.

Plant Technology: This business area is a supplier of chemical plants, refineries,cement plants,innovativesolutionsforthemining andhandlingofrawmaterialsandminerals,productionsystemsand assemblylinesfortheautomotiveindustry.

Components Technology: This business area offers efficient and innovative components for the automotive, construction and engineeringsectorsaswellasforwindturbines.

Marine Systems:This business area is asupplierfor navalsurface vessels, submarines and premium-segment yachts. After the restructuring and the consummation of the disposals the business areawillfocusitsactivitiesontheconstructionofnavalvessels.

Corporate: Corporate comprises the Group's head office including management of the business areas. It also includes the business services activities in the areas of finance, communications, IT and human resources. In addition, part of Corporate is real estate not used in operating that is managed and utilized centrally as well as inactive companies that could not be assigned to an individual businessarea.

Segmentinformationforthe1sthalfyearendedMarch31,2009and March31,2010aswellasforthe2ndquarterendedMarch31,2009 andMarch31,2010isasfollows:

million€

		SteelEurope Americas	Global	Materials Services	Elevator Technology	Plant Technology	Components Technology	Marine Systems	Corporate	Consoli dation	Group
1sthalfended
March31,2009
Externalsales	4,360	0	1,962	6,837	2,634	2,233	2,394	916	45	0	21,381
Internalsaleswithinthe
Group	814	0	199	267	2	32	5	1	15	#1,335\$	0
Totalsales	5,174	0	2,161	7,104	2,636	2,265	2,399	917	60	#1,335\$	21,381
Income/(loss-before
incometaxes	454	#98\$	#610\$	#76\$	308	173	6	#84\$	#296\$	8	9215:
1sthalfended March31,2010
Externalsales	4,182	23	2,392	5,380	2,442	1,876	2,574	541	48	0	19,458
Internalsaleswithinthe
Group	766	0	279	261	5	18	7	0	14	#1,350\$	0
Totalsales	4,948	23	2,671	5,641	2,447	1,894	2,581	541	62	#1,350\$	19,458
Income/(loss-before
incometaxes	267	#36\$	#176\$	172	308	168	106	#17\$	#275\$	#13\$	504
2ndquarterended March31,2009
Externalsales	1,989	0	917	3,004	1,292	1,171	1,097	370	19	0	9,859
Internalsaleswithinthe
Group	337	0	71	105	1	16	3	1	7	#541\$	0
Totalsales	2,326	0	988	3,109	1,293	1,187	1,100	371	26	#541\$	9,859
Income/(loss-before
incometaxes	109	#22\$	#367\$	#106\$	149	74	#47\$	#117\$	#141\$	13	9455:
2ndquarterended March31,2010
Externalsales	2,228	23	1,305	2,746	1,218	932	1,340	287	28	0	10,107
Internalsaleswithinthe Group	439	0	156	135	3	8	4	0	3	#748\$	0
Totalsales	2,667	23	1,461	2,881	1,221	940	1,344	287	31	#748\$	10,107
Income/(loss-before incometaxes	163	#32\$	#117\$	60	153	73	63	#7\$	#154\$	#11\$	191

11/Earningspershare

Basicearningspershareiscalculatedasfollows:

	1sthalfendedMarch31,2009		1sthalfendedMarch31,2010				2ndquarterendedMarch31,2009 2ndquarterendedMarch31,2010
	Totalamount inmillion€	Earningsper sharein€	Totalamount inmillion€	Earningsper sharein€	Totalamount inmillion€	Earningsper sharein€	Totalamount inmillion€	Earningsper sharein€
Numerator:
Netincome/(loss-(attributableto ThyssenKruppAG'sstockholders-	#161\$	#0.35\$	370	0.80	#329\$	#0.71\$	206	0.45
Denominator:
Weightedaverageshares	463,473,492		463,711,611		463,473,492		463,836,654

Relevantnumberofcommonsharesforthedeterminationof

earningspershare

Earnings per share have been calculated by dividing net income/#loss\$attributabletocommonstockholdersofThyssenKrupp AG#numerator\$bytheweightedaveragenumberofcommonshares outstanding#denominator\$duringtheperiod.Sharessoldduringthe periodandshares reacquiredduringtheperiodhavebeenweighted fortheportionoftheperiodthattheywereoutstanding.

In fiscal year 2009/2010 the weighted average number of outstandingshareswas increased bythesale oftreasuryshares in December2009andMarch2010inthecontextoftheGroup'sShare PurchaseProgram.

Therewerenodilutivesecuritiesintheperiodspresented.

12/Additionalinformationtotheconsolidated statementofcashflows

Non-cashinvestingactivities

Inthe1sthalfyearendedMarch31,2010,theacquisitionandfirsttime consolidation of companies created an increase in non-current assets of €3 million #1st half year ended March 31, 2009: €25 million\$. Inthe 2nd quarter ended March 31, 2010,these increases amounted to €3 million #2nd quarter ended March 31, 2009: €18 million\$.

Thenon-cashadditionofassetsunderfinanceleasesinthe1st half year ended March 31, 2010 amounted to €6 million #1st half yearendedMarch31,2009:€7million\$andinthe2ndquarterended March31,2010to€2million#2ndquarterendedMarch31,2009:€1 million\$.

Non-cashfinancingactivities

Inthe1sthalfyearendedMarch31,2010,theacquisitionandfirsttime consolidation of companies resulted in an increase in gross financialdebtof€4million #1sthalfyearendedMarch31,2009:€1 million\$. Inthe 2nd quarter ended March 31, 2010,these increases amounted to €4 million #2nd quarter ended March 31, 2009: €1 million\$.

13/Subsequentevents

Noreportableeventsoccurred.

Düsseldorf,May07,2010

ThyssenKruppAG TheExecutiveBoard

Schulz

Berlien Eichler Hippe Labonte

Reviewreportofthehalf-yearfinancialreport

ToThyssenKruppAG,DuisburgandEssen

We have reviewed the condensed interim consolidated financial statements - comprising the statement of financial position, the statement of income, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and selected notes – and the interim group management report of ThyssenKrupp AG, Duisburg and Essen, for the period from October1,2009toMarch31,2010whichformpartofthehalf-year financial reportaccordingtosection37wGermanSecuritiesTrading Act #Wertpapierhandelsgesetz – WpHG\$. The preparation of the condensed interim consolidated financial statements in accordance withthoseIFRS applicableto interimfinancial reporting as adopted by the EU, and of the interim group management report in accordancewiththe requirements oftheGermanSecurities Trading Act applicable to interim group management reports, is the responsibilityoftheCompany'smanagement.Ourresponsibilityisto issue a report on the condensed interim consolidated financial statements and onthe interim group management report based on ourreview.

Weconductedourreviewofthecondensedinterimconsolidated financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer #IDW\$ and in supplementary compliance with the International Standard on Review Engagements #ISRE\$ 2410. Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed interim consolidated financial statements have not been prepared, in material aspects, in accordancewiththeIFRSapplicabletointerimfinancial reportingas adopted by the EU, and that the interim group management report has not been prepared, in material aspects, in accordance withthe regulationsoftheGermanSecuritiesTradingActapplicabletointerim groupmanagement reports.A reviewislimitedprimarilytoinquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed afinancialstatement audit,wecannot issue an auditor's report.

Basedonourreview,nomattershavecometoourattentionthat causeustobelievethatthecondensedinterimconsolidatedfinancial statements have not been prepared, in material respects, in accordancewiththeIFRSapplicabletointerimfinancial reportingas adoptedbytheEU,orthattheinterimgroupmanagementreporthas not been prepared, in material respects, in accordance with the regulationsoftheGermanSecuritiesTradingActapplicabletointerim groupmanagementreports.

Düsseldorf,May07,2010

KPMGAG Wirtschaftsprüfungsgesellschaft

MichaelGewehr MarkusZeimes

GermanPublicAuditor\$ #GermanPublicAuditor\$

Responsibilitystatement

Tothebestofourknowledge,andinaccordancewiththeapplicable reporting principles for interim reporting, the interim condensed consolidated financial statements give a true and fair view of the assets,liabilities,financialpositionandprofitandlossoftheGroup, andthe Group interimmanagement report includes afair review of the development and performance ofthe business andthe position of the Group, together with a description of the principal opportunitiesandrisksassociatedwiththeexpecteddevelopmentof theGroupintheremainingmonthsofthefiscalyear.

Düsseldorf,May07,2010

ThyssenKruppAG TheExecutiveBoard

Schulz

Berlien Eichler Hippe Labonte

Report by the Supervisory Board Audit Committee

The interim report on the 1st half of fiscal year 2009/2010 (October 2009 to March 2010) 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 May 11, 2010 and explained by the Executive Board and the auditors. The Audit Committee approved the interim report.

Düsseldorf, May 11, 2010

Chairman of the Audit Committee Prof. Dr. Bernhard Pellens

Contact and 2010/2011 dates

For more information please contact:

Communications, Strategy & Technology Telephone +49 211 824-36007 Fax +49 211 824-36041 E-mail press@thyssenkrupp.com

Investor Relations E-mail ir@thyssenkrupp.com

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

Address

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 info@thyssenkrupp.com

2010/2011 dates

August 13, 2010 Interim report 9 months 2009/2010 (October to June) Conference call with analysts and investors

November 30, 2010 Annual Press Conference Analysts' and investors' conference

January 21, 2011 General Stockholders' Meeting

February 11, 2011 Interim report 1st quarter 2010/2011 (October to December) Conference call with analysts and investors

May 13, 2011 Interim report 1st half 2010/2011 (October to March) Analysts' and investors' conference

Forward-looking statements

This report 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

Variances for technical reasons

To meet statutory disclosure obligations, the Company has to submit the interim report to the electronic Federal Gazette (Bundesanzeiger). For technical reasons (e.g. conversion of electronic formats) there may be variances in the accounting documents published in the electronic Bundesanzeiger.

This English version of the interim report is a translation of the original German version; in the event of variances, the German version shall take precedence over the English translation.

Both language versions of the interim report can be downloaded from the internet at http://www.thyssenkrupp.com. An interactive online version is also available on our website in both languages.

TKAG August-Thyssen-Strasse 1 40211 Düsseldorf, Germany www.thyssenkrupp.com