thyssenkrupp AG — Interim / Quarterly Report 2012

May 15, 2012

Interim Report 11/12

ThyssenKrupp AG 1st half October 01, 2011 – March 31, 2012

Developing the future.

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

ThyssenKrupp in brief As part of its strategic development program ThyssenKrupp is divesting its

Our employees in around 80 countries work with passion and expertise to develop solutions for sustainable progress. Their skills and commitment are the basis of our success. Stainless Global business area is therefore classified as a discontinued operation in accordance with IFRS. The continuing operations of the Group comprise the re-

For us, innovations and technical progress are key factors in managing global growth and using finite resources in a sustainable way. With our engineering expertise in the areas of "Material", "Mechanical" and "Plant", we enable our customers to gain an edge in the global market and manufacture innovative products in a cost- and resource-efficient way.

The basis for this is responsible corporate governance geared towards long-term value growth. In an ever-changing business environment we are continuously evolving our company to enable us to meet the global challenges of the future with innovative solutions.

ThyssenKrupp in figures		02

		-	۰.

	1
Interim management report
Strategic development of the Group	03
Group review	04
Business area review	11
ThyssenKrupp stock	20
Innovations	21
Employees	22
Financial position	23
Subsequent events	25
Expected developments and
associated opportunities and risks	25

	2
Condensed interim financial statements
Consolidated statement of financial position	29
Consolidated statement of income	30
Consolidated statement of comprehensive income	31
Consolidated statement of changes in equity	32
Consolidated statement of cash flows	33

Selected notes to the consolidated financial statements 34

	3
Review report of the half-year financial report	43
Responsibility statement	44
	4
Further information
Report by the Supervisory Board Audit Committee	45

Report by the Supervisory Board Audit Committee	45
Contact	46
2012/2013 dates	46

This interim report was published on May 15, 2012.

ThyssenKrupp in figures

Group Continuing operations

		1st half ended	1st half ended			2nd quarter ended	2nd quarter ended
		March 31, 2011	March 31, 2012	Change	Change in %	March 31, 2011	March 31, 2012	Change	Change in %
Order intake	million €	21,325	21,674	349	2	11,328	11,596	268	2
Sales	million €	20,700	20,509	(191)	(1)	10,680	10,613	(67)	(1)
EBITDA	million €	1,419	903	(516)	(36)	827	432	(395)	(48)
EBIT	million €	696	43	(653)	(94)	435	76	(359)	(83)
EBIT margin	%	3.4	0.2	(3.2)	—	4.1	0.7	(3.4)	—
Adjusted EBIT	million €	696	217	(479)	(69)	435	134	(301)	(69)
Adjusted EBIT margin	%	3.4	1.1	(2.3)	—	4.1	1.3	(2.8)	—
EBT	million €	433	(274)	(707)	--	297	(91)	(388)	--
Adjusted EBT	million €	433	(100)	(533)	--	297	(34)	(331)	--
Employees (March 31)		169,120	159,009	(10,111)	(6)	169,120	159,009	(10,111)	(6)
Basic earnings per share	€	0.80	(0.89)	(1.69)	--	0.51	(0.59)	(1.10)	--

Group including Stainless Global*

March 31, March 31, Change March 31, March 31, Change 2011 2012 Change in % 2011 2012 Change Order intake million € 24,108 24,268 160 1 12,848 13,008 160 Sales million € 23,636 23,293 (343) (1) 12,266 12,155 (111) EBITDA million € 1,577 836 (741) (47) 932 424 (508) EBIT million € 770 (585) (1,355) -- 497 (228) (725) EBIT margin % 3.3 (2.5) (5.8) — 4.1 (1.9) (5.9) Adjusted EBIT million € 770 177 (593) (77) 497 152 (345) Adjusted EBIT margin % 3.3 0.8 (2.5) — 4.1 1.3 (2.8)		1st half ended	1st half ended		2nd quarter ended	2nd quarter ended
							in %
							1
							(1)
							(55)
							--
							—
							(69)
							—
EBT million € 497 (915) (1,412) -- 352 (402) (754)							--
Adjusted EBT million € 497 (153) (650) -- 352 (22) (374)							--
Employees (March 31) 180,412 170,780 (9,632) (5) 180,412 170,780 (9,632)							(5)
Net income/(loss) million € 334 (1,067) (1,401) -- 233 (587) (820)							--
Basic earnings per share € 0.89 (2.03) (2.92) -- 0.58 (1.14) (1.72)							--
Net financial debt (March 31) million € 6,492 6,480 (12) 0 6,492 6,480 (12)							0
Total equity (March 31) million € 10,706 8,872 (1,834) (17) 10,706 8,872 (1,834)							(17)

* discontinued operation

Business Areas

	Order intake (million €)			Sales (million €)		EBIT (million €)		Adjusted EBIT (million €)	Employees
	1st half ended March 31, 2011	1st half ended March 31, 2012	1st half ended March 31, 2011	1st half ended March 31, 2012	1st half ended March 31, 2011	1st half ended March 31, 2012	1st half ended March 31, 2011	1st half ended March 31, 2012	March 31, 2011	Sept. 30, 2011	March 31, 2012
Steel Europe	6,650	5,695	6,245	5,416	558	123	558	132	33,917	28,843	28,137
Steel Americas	352	1,215	346	1,044	(697)	(518)	(697)	(516)	3,748	4,060	4,258
Materials Services	7,177	6,774	7,015	6,553	248	114	248	130	35,391	36,568	28,123
Elevator Technology	2,664	3,007	2,566	2,670	318	231	318	274	44,937	46,243	46,605
Plant Technology	1,912	1,805	1,866	1,926	246	239	246	240	13,026	13,478	13,956
Components Technology	3,397	3,636	3,368	3,633	241	297	241	231	30,080	31,270	31,304
Marine Systems	575	953	723	586	130	(55)	130	117	5,372	5,295	3,731
Corporate	64	72	64	72	(199)	(218)	(199)	(221)	2,649	2,803	2,895
Consolidation	(1,466)	(1,483)	(1,493)	(1,391)	(149)	(170)	(149)	(170)
Continuing operations	21,325	21,674	20,700	20,509	696	43	696	217	169,120	168,560	159,009

	Order intake (million €)			Sales (million €)		EBIT (million €)	Adjusted EBIT (million €)
	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012
Steel Europe	3,721	2,990	3,287	2,886	300	21	300	30
Steel Americas	268	632	260	546	(319)	(230)	(319)	(228)
Materials Services	3,918	3,573	3,704	3,408	163	74	163	90
Elevator Technology	1,358	1,541	1,267	1,322	147	118	147	132
Plant Technology	896	934	969	983	139	114	139	115
Components Technology	1,795	1,858	1,769	1,880	114	128	114	128
Marine Systems	149	731	219	220	84	61	84	78
Corporate	33	39	33	37	(111)	(119)	(111)	(120)
Consolidation	(810)	(702)	(828)	(669)	(82)	(91)	(82)	(91)
Continuing operations	11,328	11,596	10,680	10,613	435	76	435	134

As part of its strategic development program ThyssenKrupp is divesting its stainless steel and high-performance alloy business. As of September 30, 2011 the Stainless Global business area is therefore classified as a discontinued operation in accordance with IFRS. The continuing operations of the Group comprise the remaining seven business areas and Corporate.

Strategic development of the Group

Expansion of Technologies operations

In the future ThyssenKrupp wants to position itself as a diversified industrial group in attractive growth markets. Although materials remain an important pillar of our business, we are looking in particular to expand our Technologies operations. Population growth, urbanization and globalization – we want to exploit the opportunities offered by these global trends for the growth of the Group. This includes constantly reviewing and adapting our portfolio; business acquisitions and disposals are part of the measures to optimize the strategic positioning of the Group.

Portfolio further optimized

We continued to drive forward the strategic portfolio optimization in the 1st half 2011/2012:

• On January 31, 2012, ThyssenKrupp and the Finnish stainless steel producer Outokumpu agreed to combine Outokumpu and Inoxum, the stainless steel arm of ThyssenKrupp. As a further milestone in the transaction, Outokumpu successfully completed a rights issue raising around €1 billion in April 2012. The combination is subject to approval by the competent regulatory authorities. The transaction is planned to be completed by the end of 2012. The combination will create a new global supplier in the stainless steel sector with sales of €11.8 billion and more than 19,000 employees.
• The sale of the Xervon group to the industrial service provider REMONDIS was completed on November 30, 2011.
• The Brazilian Automotive Systems operations were sold to a subsidiary of the automotive supplier Magna on December 06, 2011.
• UK-based Star Capital Partners acquired the civil shipbuilding operations of ThyssenKrupp Marine Systems on January 31, 2012. The restructuring of our shipyards is now largely completed.
• We completed the integration of the chassis operations of the Bilstein group and Presta Steering into ThyssenKrupp Chassis as planned, creating a major chassis full-service provider with a global footprint and sales of around €3 billion.
• The disposal processes for our US iron foundry Waupaca, our springs and stabilizer business, and ThyssenKrupp Tailored Blanks were continued intensively. We are currently in talks with various potential buyers for each of the three businesses.
• The Elevator Technology business area strengthened its market position in the 1st half of the fiscal year with acquisitions in North America and the purchase of equity interests in the Asian growth market.
• To further expand its presence in the coke plant market, ThyssenKrupp Uhde acquired the Tokyo-based Otto Corporation in October 2011.

impact successful

The Groupwide impact program launched in 2011 is aimed at increasing the productivity, customer focus and innovativeness of the Group. Initial measures have already delivered good results. Based on our current planning, impact will reduce costs Groupwide by around €300 million in the current fiscal year; around half the targeted savings were achieved in the 1st half.

Group review

ThyssenKrupp in the 1st half 2011/2012 – performance dampened by economy

Overall, the strained economic situation had an appreciable impact on the Group's performance in the 1st half 2011/2012 (October 01, 2011 – March 31, 2012). Orders from continuing operations increased only slightly year-onyear to €21.7 billion, while sales were 1% lower at €20.5 billion. This was due to the volume and price trends in our materials activities; by contrast, demand for the products of our capital goods operations was much more stable. Order intake and sales both improved quarter-on-quarter in the 2nd quarter. Including the discontinued operation Stainless Global, which operates under the name Inoxum, order intake in the 1st half 2011/2012 came to €24.3 billion, and sales to €23.3 billion.

Adjusted EBIT from continuing operations decreased to €217 million from €696 million in the prior-year period. With the exception of Steel Americas, all business areas reported positive adjusted EBIT. The loss at Steel Americas was reduced to €(516) million. The other six business areas achieved combined adjusted EBIT of €1,124 million. Corporate costs and consolidation items amounted to €(391) million. Including Stainless Global, adjusted EBIT fell from €770 million to €177 million. Quarter-on-quarter, adjusted EBIT from continuing operations in the 2nd quarter improved significantly to €134 million.

The highlights for the 1st half 2011/2012:

• Order intake from continuing operations increased year-on-year by 2% to €21.7 billion. Elevator Technology and Marine Systems reported significantly higher orders. Order intake in the 2nd quarter 2011/2012 rose by 15% quarter-on-quarter.
• Sales from continuing operations decreased by 1% to €20.5 billion in the 1st half 2011/2012. Higher sales at Steel Americas were unable to offset declines in the other materials activities. With the exception of Marine Systems, the capital goods businesses reported higher sales. Sales in the 2nd quarter increased by 7% quarter-on-quarter.
• Adjusted EBIT from continuing operations came to €217 million compared with €696 million a year earlier. There was a quarter-on-quarter improvement from €83 million to €134 million. With the exception of Steel Americas all business areas delivered positive contributions.
• EBIT from continuing operations was €43 million, down from €696 million a year earlier. EBIT margin slipped from 3.4% to 0.2%.
• Earnings per share from continuing operations decreased from €0.80 to €(0.89).
• Net financial debt, including Stainless Global, was €6,480 million at March 31, 2012, almost unchanged from the figure of €6,492 million at March 31, 2011. Compared with December 31, 2011 net financial debt showed a typical seasonal increase, mainly due to higher net working capital requirements and the dividend payment.

Sharp slowing of global economy

Global economic growth slowed to 3.3% in 2011. Particularly in the 2nd half 2011, the pace of growth slackened considerably. Based on current estimates, economic activity was also weak in the 1st quarter 2012.

The euro zone economy suffered a marked slowdown in the 4th quarter 2011, with GDP falling by 0.3% quarter-onquarter. The economies of many euro zone countries also stagnated in the 1st quarter 2012, mainly due to uncertainty caused by the euro debt crisis. The performance of the German economy was only marginally better. After contracting by 0.2% in the 4th quarter 2011, GDP may have grown again slightly in the first three months of 2012.

After a weak start, the US economy picked up noticeably towards the end of 2011. GDP grew by 0.7% in the 4th quarter 2011 thanks to stronger domestic demand, and again by 0.6% in the 1st quarter 2012. The Japanese economy contracted initially following the natural disaster in spring 2011, but overall the economic situation improved in the further course of the year.

Economic activity was stronger in the emerging countries than in the industrialized nations. China's GDP expanded strongly by 2.0% quarter-on-quarter in the 4th quarter 2011, slowing slightly to 1.8% in the 1st quarter 2012.

Situation in the sectors mixed

Flat carbon steel – There has been no significant growth impetus in the international steel market recently. After a 6% year-on-year increase in global crude steel output in 2011, production in the first three months of 2012 was only 1% up from the prior-year period. This rise was mainly due to China, where production was increased by 2% in the 1st quarter 2012 despite a marked slowing of domestic and export demand. In the rest of the world, steel output was unchanged overall, but with large regional differences. The EU steel industry in particular continued to operate at reduced capacity in response to previous weaker demand and recorded a 4% drop in output. Production at Germany's steel mills was 5% lower than a year earlier. Against this trend, the USA increased its output by 8%.

After a marked slowdown in the 2nd half 2011, demand on the European flat carbon steel market picked up slightly from the turn of the year. There was a particular improvement in orders from distributors rebuilding inventories. Both distributors and end consumers continued to operate cautiously in the still difficult economic environment. EU shipments by European flat carbon steel producers in the first three months of 2012 fell just short of the high prior-year level. Import pressure remained relatively low, and higher prices were realized on the spot markets. The US flat carbon steel market performed better than expected. Demand from the automotive industry and other manufacturing sectors rose sharply year-on-year. However, the large increase in supply halted the positive steel price trend visible in the final quarter of 2011.

Automotive – Auto industry activity remained strong, above all in North America. In the USA, sales of cars and light trucks rose year-on-year by 10% in the 4th quarter 2011 and 13% in the 1st quarter 2012 on the back of strong pentup demand. The Chinese auto market has been significantly impacted by state intervention measures in the last two years. New registrations were 23% lower year-on-year in the 4th quarter 2011, but rose again by around 90% in the 1st quarter 2012 to 3.9 million cars and light trucks.

In the European Union, new passenger car registrations slipped by 4% year-on-year in the final quarter of 2011 and were 8% lower in the first three months of 2012 at 3.3 million vehicles. In Germany, new registrations rose by 3% in the 4th quarter 2011, and by 1% year-on-year in the following quarter to 774,000 vehicles. With exports still high, car production in the first three months of 2012 was level with the prior year at 1.5 million units. The market for heavy trucks has declined slightly recently.

Machinery – The major machinery markets continued to record high growth rates in 2011. Output was up by 17% in China, 10% in the USA and 12% in Germany.

Germany's machinery manufacturers recorded a 10% increase in orders in 2011, mainly due to very strong domestic and foreign orders at the beginning of the year. Growth then slowed as demand for capital goods weakened. Compared with the high prior-year level, orders fell by 7% in the 4th quarter 2011 and by 9% in the 1st quarter of this year.

Construction – The construction industry remained generally weak in the industrialized countries. The US real estate market improved slightly at a low level, but there are not yet any signs of a sustainable upward trend. Construction growth was higher in emerging countries such as China and India.

The German construction sector was very robust in 2011. Orders for commercial and above all housing construction showed a positive trend. Construction output increased overall by a better-than-expected 13% in 2011. The sector continued to record higher orders at the start of 2012.

Orders and sales unchanged year-on-year

The subdued economic situation weighed noticeably on the performance of ThyssenKrupp. Year-on-year, orders in the 1st half 2011/2012 were slightly up and sales slightly down. Adjusted EBIT was significantly lower than a year earlier.

		1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
Order intake	million €	21,325	21,674	2	11,328	11,596	2
Sales	million €	20,700	20,509	(1)	10,680	10,613	(1)
EBITDA	million €	1,419	903	(36)	827	432	(48)
EBIT	million €	696	43	(94)	435	76	(83)
EBIT margin	%	3.4	0.2	—	4.1	0.7	—
Adjusted EBIT	million €	696	217	(69)	435	134	(69)
Adjusted EBIT margin	%	3.4	1.1	—	4.1	1.3	—
EBT	million €	433	(274)	--	297	(91)	--
Adjusted EBT	million €	433	(100)	--	297	(34)	--
Employees (March 31)		169,120	159,009	(6)	169,120	159,009	(6)

ThyssenKrupp continuing operations in figures

The continuing operations achieved order intake of €21.7 billion and sales of €20.5 billion. Compared with the prior year, orders were up by 2%. Sales fell just 1% short of the year-earlier figure. In the materials area – for example flat carbon steel – both orders and sales were adversely affected by low price levels and declining volumes. By contrast, demand for capital goods, such as elevators and components for the auto industry, was mainly favorable. Quarter-onquarter, orders and sales improved strongly in the 2nd quarter 2011/2012 by 15% and 7% respectively.

Including Stainless Global, the Group's order intake at €24.3 billion was 1% higher year-on-year, while Group sales decreased by 1% to €23.3 billion.

Adjusted EBIT positive

Adjusted EBIT from continuing operations was €217 million, €479 million lower than in the 1st half of the prior year. With the exception of Steel Americas, all continuing business areas recorded positive adjusted EBIT in the 1st half 2011/2012. The loss at Steel Americas was reduced to €(516) million. The other six business areas achieved combined adjusted EBIT of €1,124 million. Corporate costs and consolidation items amounted to €(391) million.

Adjusted EBIT margin from continuing operations decreased from 3.4% to 1.1%.

in million $\epsilon$
1st quarter		261
1st half		696
9 months		1,266
12 months	2010/2011	1,762
1st quarter		83
1st half	2011/2012	217

Including Stainless Global, the Group's adjusted EBIT slipped from €770 million to €177 million; adjusted EBIT margin fell from 3.3% to 0.8%.

EBIT from continuing operations impacted by special items

EBIT from continuing operations in the reporting period came to €43 million. Special items of €172 million at Marine Systems, resulting mainly from the sale of the civil shipbuilding operations, had an adverse effect on earnings. By contrast, Components Technology reported positive special items of €66 million relating to gains on the disposal of the chassis components manufacturer ThyssenKrupp Automotive Systems Industrial do Brasil as well as healthcare savings at the US foundry group Waupaca. At Materials Services, impairment charges of €16 million were reversed at a Chinese shareholding. The restructuring expense in the table below mainly relates to Elevator Technology and Materials Services.

Adjusted EBIT in million €

	1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
EBIT	696	43	(94)	435	76	(83)
+/- Disposal losses/gains	0	(49)	—	0	3	—
+ Restructuring expense	0	40	—	0	8	—
+ Impairment	0	191	—	0	36	—
+ Other non-operating expense	0	20	—	0	11	—
- Other non-operating income	0	(28)	—	0	0	—
Adjusted EBIT	696	217	(69)	435	134	(69)

Including Stainless Global, the Group's EBIT slipped from €770 million to €(585) million; EBIT margin fell from 3.3% to (2.5)%. The reason for this was the negative earnings contribution from the discontinued operations, mainly due to further fair value adjustments of €250 million in connection with the carve-out of Stainless Global.

Analysis of the statement of income

At €20,509, net sales from continuing operations in the 1st half 2011/2012 were €191 million or 1% lower than in the corresponding prior-year period. The cost of sales from continuing operations was €292 million higher than a year earlier at €17,927 million; the increase was mainly due to fixed manufacturing costs. As a result, gross profit from continuing operations decreased to €2,582 million, while gross margin dropped from 15% to 13%.

Research and development cost from continuing operations was level with the prior year.

The €71 million increase in selling expenses from continuing operations was mainly caused by higher expenses for sales-related freight and insurance charges. General and administrative expenses from continuing operations decreased by €39 million, mainly due to lower personnel expense.

The €150 million increase in other expenses from continuing operations was mainly due to goodwill impairment charges in connection with the sale of the civil operations of Blohm + Voss.

Other gains and losses attributable to continuing operations were unchanged from the prior-year period. Gains on the disposal of the Xervon group and the Brazilian Automotive Systems operations recognized in the 1st half 2011/2012 were offset by negative exchange rate effects from non-income taxes.

The main causes of the €65 million reduction in financing income and the €60 million decrease in financing expense from continuing operations were exchange rate effects in connection with finance transactions.

The tax expense from continuing operations of €202 million resulted in an effective tax charge of (73.8)%, mainly due to valuation allowances for deferred income tax assets.

After taking into account income taxes, the loss from continuing operations came to €476 million, a deterioration of €766 million from the prior-year period.

Including the €591 million after-tax loss from discontinued operations attributable to Stainless Global, there was a net loss of €1,067 million in the reporting period, compared with a net income of €334 million in the prior year.

A net loss of €20 million was attributable to non-controlling interest in the reporting period, compared with a net loss of €80 million in corresponding prior-year period. The €60 million improvement was mainly due to the lower loss at ThyssenKrupp CSA.

Earnings per share based on the net income/loss attributable to the shareholders of ThyssenKrupp AG decreased yearon-year by €2.92 to €(2.03). Earnings per share from continuing operations declined by €1.69 to €(0.89).

Net financial debt and capital expenditure

Net financial debt, including Stainless Global, was €6,480 million at March 31, 2012, almost unchanged from the figure of €6,492 million at March 31, 2011. Compared with December 31, 2011 net financial debt showed a typical seasonal increase, mainly due to higher net working capital requirements and the dividend payment.

	in million $\epsilon$ , quarter on quarter rate of change
December 31		5,814
March 31	$+12%$	6,492
June 30	(4)%	6,249
September 30	(43)% 2010/2011	3,578
December 31	$+66%$	5,937
March 31	$+9%$	6,480
	2011/2012

ThyssenKrupp invested a total of €1,062 million in the 1st half 2011/2012, 26% less than a year earlier. €998 million was spent on property, plant and equipment and intangible assets, and €64 million on the acquisition of businesses, shareholdings and other financial assets. Excluding the major projects in Brazil and the USA, capital expenditures came to €750 million, compared with €443 million in the prior year.

Successful bond placement

On February 21, 2012 ThyssenKrupp AG issued a €1.25 billion bond with a maturity of five years under its €10 billion debt issuance program. The joint bookrunners were BNP Paribas, Commerzbank, The Royal Bank of Scotland and UniCredit Bank. The bond carries a coupon of 4.375% p.a. at an issue price of 99.753%. The transaction made use of the favorable market environment and extended the maturity profile of the Group's financial debt. The denomination of €1,000 made it easier for private investors to purchase the bond on the stock market.

Current issuer ratings

ThyssenKrupp has been rated by Moody's and Standard & Poor's since 2001 and by Fitch since 2003. In the 1st quarter 2009/2010 Standard & Poor's lowered our long-term rating to BB+, meaning the Group lost investment grade status with this rating agency. At Moody's and Fitch our rating remains investment grade.

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

Business area review

Steel Europe

Steel Europe in figures

		1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
Order intake	million €	6,650	5,695	(14)	3,721	2,990	(20)
Sales	million €	6,245	5,416	(13)	3,287	2,886	(12)
EBIT	million €	558	123	(78)	300	21	(93)
EBIT margin	%	8.9	2.3	—	9.1	0.7	—
Adjusted EBIT	million €	558	132	(76)	300	30	(90)
Adjusted EBIT margin	%	8.9	2.4	—	9.1	1.0	—
Employees (March 31)		33,917	28,137	(17)	33,917	28,137	(17)

The Steel Europe business area brings together the Group's flat carbon steel activities, mainly in the European market. Premium flat products are supplied to customers in the auto industry and other steel-using sectors. The range also includes products for attractive specialist markets such as the packaging industry.

Orders and sales lower

Although the market has been stable since the start of the year, the value of orders received at Steel Europe was down 14% at €5.7 billion in the 1st half 2011/2012. The main reason for this was the 9% drop in order volumes. The decline was also due in part to the disposal of the Metal Forming business, which was still included in the prior-year figures.

Sales at €5.4 billion were 13% lower than a year earlier, when the Metal Forming business was still included. With selling prices higher on average, shipments decreased by 11% year-on-year. Quarter-on-quarter, however, shipments and sales increased in the 2nd quarter 2011/2012. Sales of tinplate, heavy plate and medium-wide strip in the 1st half 2011/2012 fell slightly year-on-year due to lower volumes. In the electrical steel area, selling prices for grain-oriented products came under substantial pressure.

Production further reduced

Crude steel production including supplies from Hüttenwerke Krupp Mannesmann was reduced by 16% to 5.9 million tons due to weak demand. Operating levels in the downstream rolling and coating operations also had to be adjusted in part. The timing for the restart of blast furnace 9 – currently shut down for relining – is being kept flexible.

EBIT down year-on-year

The business area's earnings before interest and taxes (EBIT) reached €123 million in the reporting period, €435 million lower than a year earlier. EBIT margin slipped from 8.9% to 2.3%. This was mainly due to lower volumes and increasing pressure on prices due to more intense competition.

Steel Europe order intake	Steel Europe EBIT
in million $\epsilon$ , quarter on quarter rate of change	in million $\epsilon$ , quarter on quarter rate of change
2,929	258
Q1	Q 1
3,721	300
$+27%$	$+16%$
Q 2	Q 2
3,006	322
(19)%	$+7%$
Q3	Q3
2,688	253
(11)%	(21)%
Q 4	Q 4
2010/2011	2010/2011
2,705	102
$+1\%$	(60)%
Q1	Q 1
2,990	21
$+11%$	(79)%
Q 2	Q 2
2011/2012	2011/2012

Steel Americas

Steel Americas in figures

		1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
Order intake	million €	352	1,215	245	268	632	136
Sales	million €	346	1,044	202	260	546	110
EBIT	million €	(697)	(518)	26	(319)	(230)	28
EBIT margin	%	—	—	—	—	—	—
Adjusted EBIT	million €	(697)	(516)	26	(319)	(228)	29
Adjusted EBIT margin	%	—	—	—	—	—	—
Employees (March 31)		3,748	4,258	14	3,748	4,258	14

With its steelmaking and processing plants in Brazil and the USA the Steel Americas business area is tapping into the North American market for premium flat steel products.

Presence on North American market expanded

Steel Americas made further operating progress in the reporting period. As the ramp-up of the equipment progressed, we stabilized our customer base. We won new customers in the pipe, agricultural and construction machinery sectors and drove forward the certification process, focusing on the automotive and pipe & tube industries. Order intake and sales showed clear year-on-year improvements in the 1st half 2011/2012. Order intake reached €1.2 billion, and sales €1.0 billion. We sold a total of 1.4 million tons of flat steel on the North American market.

Higher startup costs weigh on EBIT

EBIT in the 1st half 2011/2012 came to €(518) million, compared with €(697) million in the prior-year period. Earnings were mainly impacted by continuing soft steel prices on the North American market, repair expenses for the coke plant at the Brazilian steel mill, and unscheduled blast furnace shutdowns. Quarter-on-quarter, EBIT improved from €(288) million to €(230) million in the 2nd quarter.

Progress with ramp-up of new plants

The integrated iron and steel mill near Rio de Janeiro produced around 1.7 million tons of steel in the 1st half and supplied slabs to ThyssenKrupp Steel USA and Steel Europe. The final coke oven battery was completed towards the end of the 2nd quarter and produced the first significant quantities of coke in April. The continuing ramp-up of the coke plant will further improve the energy network. Total crude steel capacity will be more than 5 million tons per year. With the exception of the final hot-dip galvanizing line, all equipment units in the USA are now in operation. The final hot-dip galvanizing line is expected to start production towards the end of the 2011/2012 fiscal year. Once the ramp-up is completed, hot-rolling capacity will be more than 5 million tons per year.

Valuation risks

The book values of property, plant and equipment at Steel Americas remain exposed to valuation risks. Major changes to capital market parameters or expectations on long-term exchange rate trends, as well as a change to the assessment of the strategic development of the business area could make valuation adjustments necessary which could have a significant effect on the financial position and results of the Group.

Steel Americas order intake	Steel Americas EBIT
in million $\epsilon$ , quarter on quarter rate of change	in million $\epsilon$ , quarter on quarter rate of change
84	(378)
Q1	Q1
268	(319)
$+219%$	$+16%$
Q2	Q 2
504	(190)
$+88%$	$+40%$
Q3	Q3
437	(2, 258)
(13)%	Q 4
Q 4	$- -$
2010/2011	2010/2011
583	(288)
$+33%$	$+88%$
Q1	Q1
632	(230)
$+8%$	$+20%$
Q 2	Q 2
2011/2012	2011/2012

Materials Services

Materials Services in figures

		1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
Order intake	million €	7,177	6,774	(6)	3,918	3,573	(9)
Sales	million €	7,015	6,553	(7)	3,704	3,408	(8)
EBIT	million €	248	114	(54)	163	74	(55)
EBIT margin	%	3.5	1.7	—	4.4	2.2	—
Adjusted EBIT	million €	248	130	(48)	163	90	(45)
Adjusted EBIT margin	%	3.5	2.0	—	4.4	2.6	—
Employees (March 31)		35,391	28,123	(21)	35,391	28,123	(21)

With 500 locations in over 40 countries the Materials Services business area specializes in materials distribution including technical services.

Prices and margins still under pressure

Materials Services achieved sales of €6.6 billion in the 1st half 2011/2012, down 7% from the corresponding prior-year period. Excluding the Xervon group divested in the 1st quarter, the decrease in sales amounted to 4%.

Against the background of the financial crisis, the main customer industries in Western Europe placed orders very carefully and continued to run down their inventories. As a result, sales in the warehousing business with carbon steel, stainless steel, tubes and nonferrous metals were slightly lower year-on-year. By contrast, sales volumes in Eastern Europe and North America improved slightly.

The price and margin pressure that commenced in the middle of last year continued in all regions. This also applied to the international direct-to-customer and project business, especially in Europe. Sales of plastics followed a similar pattern to metals; demand from Southern Europe remained particularly weak. In Germany, the sales and warehousing organization was further streamlined. Our materials and logistics operations for the aerospace sector performed very well, with numerous projects expanded and acquired. Sales in Europe and North America were expanded significantly.

Production cutbacks in the steel industry had an adverse effect on sales of metallurgical raw materials. The slide in demand for coke was particularly drastic; in addition, global oversupply caused a sharp fall in prices. Despite declining operating levels in the steel industry, capacity utilization and sales of our steel mill services remained largely stable in the 1st half.

EBIT significantly lower

The business area's EBIT dropped from €248 million to €114 million. This was mainly due to high price pressure and intense competition in the materials business as well as massive volume and sales losses in raw materials distribution. In addition there were impairment charges on a shareholding in China. Adjusted EBIT came to €130 million; adjusted EBIT margin fell from 3.5% to 2.0%.

Materials Services order intake	Materials Services EBIT
in million $\epsilon$ , quarter on quarter rate of change	in million $\epsilon$ , quarter on quarter rate of change
3,259	85
Q1	Q 1
3,918	163
$+20%$	$+92%$
Q 2	Q 2
3,973	149
$+1%$	(9)%
Q 3	Q3
3,618	81
(9)%	(46)%
Q 4	Q 4
2010/2011	2010/2011
3,201	40
(12)%	(51)%
Q1	Q 1
3,573	74
$+12%$	$+85%$
Q 2	Q 2
2011/2012	2011/2012

Elevator Technology

Elevator Technology in figures

		1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
Order intake	million €	2,664	3,007	13	1,358	1,541	13
Sales	million €	2,566	2,670	4	1,267	1,322	4
EBIT	million €	318	231	(27)	147	118	(20)
EBIT margin	%	12.4	8.7	—	11.6	8.9	—
Adjusted EBIT	million €	318	274	(14)	147	132	(10)
Adjusted EBIT margin	%	12.4	10.3	—	11.6	10.0	—
Employees (March 31)		44,937	46,605	4	44,937	46,605	4

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. Over 900 locations worldwide form a tight-knit sales and service network that keeps us close to customers.

Orders at record high, continuous improvement in sales

Elevator Technology enjoyed a successful 1st half 2011/2012. The business area's orders reached an all-time high, while sales also continued to improve.

Orders increased by 13% year-on-year to €3.0 billion, with contributions from both the new installations business and the service and modernization activities. There was significant business growth on the American market, and above all in the USA. Business in Europe remained stable. The Chinese operations reported a more than 40% increase in orders thanks to strong demand for new installations.

Elevator Technology's sales were 4% higher at €2.7 billion, thanks in particular to an increase in service business. Growth in America and Asia more than offset sales declines caused by the in part difficult market environment in some European markets.

The acquisition of United Elevator Company in the USA and Sterling Elevator Services Corporation in Canada further strengthened Elevator Technology's position on the North American market.

Adjusted earnings €274 million

Elevator Technology achieved EBIT of €231 million in the 1st half 2011/2012, compared with €318 million a year earlier. Adjusted for special items – mainly provisions for restructuring – earnings came to €274 million. Adjusted EBIT margin was 10.3%, partly as a result of weak construction activity above all in Southern Europe. 2nd quarter EBIT improved slightly quarter-on-quarter to €118 million.

Elevator Technology order intake	Elevator Technology EBIT
in million $\epsilon$ , quarter on quarter rate of change	in million $\epsilon$ , quarter on quarter rate of change
1,306	171
Q 1	Q 1
1,358	147
$+4%$	(14)%
Q 2	Q 2
1,320	151
(3)%	$+3%$
Q3	Q3
1,297	332
(2)%	$+120%$
Q 4	Q 4
2010/2011	2010/2011
1,466	113
$+13%$	(66)%
Q1	Q 1
1,541	118
$+5%$	$+4%$
Q 2	Q 2
2011/2012	2011/2012

Plant Technology

		1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
Order intake	million €	1,912	1,805	(6)	896	934	4
Sales	million €	1,866	1,926	3	969	983	1
EBIT	million €	246	239	(3)	139	114	(18)
EBIT margin	%	13.2	12.4	—	14.3	11.6	—
Adjusted EBIT	million €	246	240	(2)	139	115	(17)
Adjusted EBIT margin	%	13.2	12.5	—	14.3	11.7	—
Employees (March 31)		13,026	13,956	7	13,026	13,956	7

The Plant Technology business area is a leading provider of specialized engineering and construction services. The product portfolio includes chemical plants and refineries, equipment for the cement industry, innovative solutions for the mining and extraction of raw materials, and production systems for the auto industry. The business area's equipment and processes open up new possibilities for environmental protection and sustainability.

Orders stable

The business area's order intake remained stable overall in the 1st half 2011/2012. Despite stronger competition for coke plants and the continuing tense political situation in the Middle East and associated reluctance to invest, Plant Technology achieved order intake of €1.8 billion, only slightly lower than a year earlier. Continuing strong orders in the mining and minerals business and high demand for production systems for the automotive industry had a positive impact. Newly acquired projects included materials handling equipment and components for customers in Canada. New business in the minerals and cement operations included orders from Africa, Russia and South America.

In the first six months of 2011/2012, Plant Technology's sales were higher than a year earlier at €1.9 billion.

Orders in hand of €6.5 billion at March 31, 2012, mainly from long-term project business, continue to provide good planning certainty and were increased in the course of the reporting period.

Earnings again at high level

Plant Technology achieved EBIT of €239 million in the 1st half 2011/2012, almost reaching the prior-year figure of €246 million. For billing reasons, EBIT margin decreased slightly year-on-year from 13.2% to 12.4%.

Plant Technology order intake	Plant Technology EBIT
in million $\epsilon$ , quarter on quarter rate of change	in million $\epsilon$ , quarter on quarter rate of change
1,016	107
Q 1	Q 1
896	139
(12)%	$+30%$
Q 2	Q 2
1,097	131
$+22%$	(6)%
Q 3	Q 3
1,466	129
$+34%$	$(2)\%$
Q 4	Q 4
2010/2011	2010/2011
871	125
(41)%	$(3)\%$
Q 1	Q1
934	114
$+7%$	(9)%
Q 2	Q 2
2011/2012	2011/2012

Components Technology

		1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
Order intake	million €	3,397	3,636	7	1,795	1,858	4
Sales	million €	3,368	3,633	8	1,769	1,880	6
EBIT	million €	241	297	23	114	128	12
EBIT margin	%	7.2	8.2	—	6.4	6.8	—
Adjusted EBIT	million €	241	231	– 4	114	128	12
Adjusted EBIT margin	%	7.2	6.4	—	6.4	6.8	—
Employees (March 31)		30,080	31,304	4	30,080	31,304	4

The business area supplies a range of high-tech components for general engineering, construction equipment and wind turbines. In the auto sector our activities are focused on crankshafts, camshafts, steering systems, dampers, springs, and the assembly of axle modules.

Order intake and sales again higher

The business area reported a successful 1st half 2011/2012. Despite the sale of the chassis component manufacturer ThyssenKrupp Automotive Systems Industrial do Brasil, order intake increased year-on-year by 7% to €3.6 billion. Both the auto and truck component business and the construction equipment component business achieved growth. In particular, component supplies to the US auto industry were very positive. In addition, the business area profited from strong demand in the mid-size and premium segments and from the growth of individual major customers. New exhaust regulations in Brazil triggered early truck purchases, so demand in the 2nd reporting quarter was lower. In China the government's inflation curbs resulted in slower growth. In addition, the expansion of the wind energy grid was delayed, leading to lower orders for components.

In line with the generally pleasing trend in orders, sales increased year-on-year by 8% to €3.6 billion.

Further rise in EBIT

Components Technology achieved EBIT of €297 million in the 1st half 2011/2012, improving on the good level of the previous year. The figure includes special items relating to the sale of ThyssenKrupp Automotive Systems Industrial do Brasil as well as further significant healthcare savings at the US foundry group Waupaca in the 1st quarter.

Adjusted EBIT was down from the prior year at €231 million. The main reasons were weaker demand in the wind energy sector in China, higher development costs for new products, costs for reopening Waupaca's previously idled Etowah plant in the USA, startup costs for new plants in China and India, a negative exchange rate effects for exports from Brazil to the USA. Adjusted EBIT margin decreased from 7.2% to 6.4%.

Components Technology EBIT
in million $\epsilon$ , quarter on quarter rate of change
127 Q 1
114 $(10)\%$ Q 2
141 $+24%$ Q 3
161 $+14%$ Q 4
2010/2011
169 $+5%$ Q 1
128 (24)% Q 2
2011/2012

Marine Systems

Marine Systems in figures

		1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
Order intake	million €	575	953	66	149	731	391
Sales	million €	723	586	(19)	219	220	0
EBIT	million €	130	(55)	--	84	61	(27)
EBIT margin	%	18.0	(9.4)	—	38.4	27.7	—
Adjusted EBIT	million €	130	117	(10)	84	78	(7)
Adjusted EBIT margin	%	18.0	20.0	—	38.4	35.5	—
Employees (March 31)		5,372	3,731	(31)	5,372	3,731	(31)

The contracts signed in December 2011 for the sale of the civil shipbuilding operations to the UK financial investor Star Capital Partners entered into effect on January 31, 2012. The Marine Systems business area is therefore now focused exclusively on naval shipbuilding.

Pleasing rise in new orders

The market environment for naval orders proved pleasingly stable. Despite the tense political situation in key regions such as the Middle East and North Africa, and budget constraints in many countries, our projects went largely as planned. Order intake at Marine Systems in the 1st half 2011/2012 came to €953 million, up 66% from the prior year.

Sales at Marine Systems held up well overall at €586 million. When comparing this with the prior-year figure of €723 million it should be noted that the civil shipbuilding activities are no longer included from February 2012 and that sales in the prior year were significantly influenced by one-time effects from the contractual agreement with Greece regarding the restructuring of the submarine contacts.

In the course of the 1st half 2011/2012 orders in hand increased further, reaching €6.8 billion on March 31, 2012.

Adjusted earnings held at high level

Marine Systems' EBIT came to €(55) million, down from €130 million a year earlier. Earnings in the reporting period were impacted by special items of €172 million relating to impairment charges in particular on goodwill in connection with the sale of the civil shipbuilding operations. Adjusted EBIT came to a very pleasing €117 million, and adjusted EBIT margin improved from 18.0% to 20.0%.

Marine Systems order intake	Marine Systems EBIT
in million $\epsilon$ , quarter on quarter rate of change	in million $\epsilon$ , quarter on quarter rate of change
426	46
Q1	Q 1
149	84
(65)%	$+83%$
Q2	Q 2
2,155	62
Q3	(26)%
$++$	Q 3
247	21
(89)%	(66)%
Q 4	Q 4
2010/2011	2010/2011
222 $(10)\%$ Q 1	(116) Q 1
731	61
Q 2	Q 2
$++$	$^{++}$
2011/2012	2011/2012

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 1st half 2011/2012 came to €72 million, up from €64 million a year earlier.

EBIT amounted to €(218) million, compared with €(199) million in the prior year. The deterioration is mainly the result of higher administrative costs. Adjusted EBIT came to €(221) million. There were no special items in the prior-year period.

Stainless Global (discontinued operation)

		1st half ended March 31, 2011	1st half ended March 31, 2012	Change in %	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012	Change in %
Order intake*	million €	3,273	2,990	(9)	1,790	1,618	(10)
Sales*	million €	3,461	3,206	(7)	1,856	1,768	(5)
EBIT	million €	66	(624)	--	59	(303)	--
EBIT margin	%	1.9	(19.5)	—	3.2	(17.1)	—
Adjusted EBIT	million €	66	(36)	--	59	20	(66)
Adjusted EBIT margin	%	1.9	(1.1)	—	3.2	1.1	—
Employees (March 31)		11,292	11,771	4	11,292	11,771	4

Stainless Global in figures

*including internal orders/sales within the Group

The discontinued operation Stainless Global stands for premium-quality stainless steel flat products and highperformance materials such as nickel alloys, titanium and zirconium.

Order intake and sales lower

Lower raw material prices led to a decline in business at Stainless Global. Although order volumes in the 1st half 2011/2012 were 3% higher at 1.1 million tons, the value of new orders fell by 9% to €3.0 billion due mainly to lower alloy surcharges. 1.2 million tons of stainless steel flat products and 21,800 tons of high-performance materials were produced. Prices for high-performance materials are many times higher than those for stainless products.

Overall shipments were 2% higher year-on-year at 1.1 million tons. Due to the generally lower price level and reduced alloy surcharges, sales nevertheless decreased by 7% to around €3.2 billion.

EBIT down from prior year

Following further fair value adjustments of €250 million in connection with the carve-out of Stainless Global, EBIT decreased from €66 million in the 1st half of the prior year to €(624) million. EBIT margin dropped from 1.9% to (19.5)%. In addition, the generally weaker earnings situation was impacted by the continuing difficult market environment for stainless steel flat products and the associated price pressure. The reduced nickel price also had a negative effect. The earnings figure also includes startup costs of €82 million for the new stainless steel mill in the USA. The high-performance alloys business profited from the continued stable market situation for nickel alloys. Furthermore, with the classification as a discontinued operation, non-current assets are no longer depreciated. In the 1st half 2011/2012 this resulted in the absence of depreciation expenses of €94 million. Impairment charges in the 1st half 2011/2012 came to €47 million

Stainless steel mill in the USA

At the US site in Calvert construction work and the ramp-up of already commissioned equipment is continuing as planned. In the cold-rolling mill the hot-rolled annealing and pickling line has begun operation successfully and is now being ramped up. The third rolling mill is scheduled to go into operation in December 2012. Construction work on the 1 million ton per year capacity melt shop is proceeding as planned; the start of production is scheduled for December 2012. Until then the location will continue to be supplied with hot band and slabs from the European mills.

ThyssenKrupp including Stainless Global

ThyssenKrupp including Stainless Global in figures

		1st half ended	1st half ended		2nd quarter ended	2nd quarter ended
		March 31, 2011	March 31, 2012	Change in %	March 31, 2011	March 31, 2012	Change in %
Order intake	million €	24,108	24,268	1	12,848	13,008	1
Sales	million €	23,636	23,293	(1)	12,266	12,155	(1)
EBITDA	million €	1,577	836	(47)	932	424	(55)
EBIT	million €	770	(585)	--	497	(228)	--
EBIT margin	%	3.3	(2.5)	—	4.1	(1.9)	—
Adjusted EBIT	million €	770	177	(77)	497	152	(69)
Adjusted EBIT margin	%	3.3	0.8	—	4.1	1.3	—
EBT	million €	497	(915)	--	352	(402)	--
Adjusted EBT	million €	497	(153)	--	352	(22)	--
Employees (March 31)		180,412	170,780	(5)	180,412	170,780	(5)

Including Stainless Global, the Group's order intake of €24.3 billion and sales of €23.3 billion were largely unchanged from the prior year. The Group's EBIT came to €(585) million, compared with €770 million a year earlier. EBIT margin decreased from 3.3% to (2.5)%.

ThyssenKrupp stock

Stock prices in the reporting period were once again affected by the debt crisis and generally uncertain macroeconomic expectations.

In the 1st quarter 2011/2012, ThyssenKrupp's stock initially profited from a market environment characterized by measures to resolve the European debt crisis. In the further course of the quarter, however, global economic concerns predominated.

There was no significant change to the parameters in the 2nd quarter. In the first half of the quarter the stock made up ground on the benchmark indices. Subsequently, however, as an early-cyclical stock it again came under stronger pressure than the DAX and DJ STOXX.

After a high of €22.86 on February 09, 2012, ThyssenKrupp's stock price on March 30, 2012 stood at €18.66, virtually unchanged from September 30, 2011. Over the same period the DAX gained around 27% and the DJ STOXX almost 18%.

Shareholder base very stable in difficult environment

The analysis of the shareholder structure carried out at the end of March 2012 showed once again that ThyssenKrupp has a very stable shareholder base – also in regional terms. The twice-yearly analysis is an important tool in planning our discussions with existing and prospective investors at roadshows and investor conferences. Compared with the September 2011 survey there were only very minor regional shifts, almost all in Europe.

The most important region remains North America. Institutional investors there held 15.4% of the capital stock on the date of the survey (previously 15.3%). Investors in the UK and Ireland held 9.3% of the stock (previously 9.4%). The third largest group with 8.6% (previously 9.2%) were investors in Germany. Investors in 16 other European countries held 12.9% of the capital stock (previously 12.2%); their proportion therefore increased by 0.7 percentage points. The most important countries within this group are France (4.1%) and Switzerland (2.0%). The increase in the proportion of the stock held by European investors stems primarily from these two countries. Investors in the rest of the world held an unchanged 0.6% of the capital stock.

Overall, the number of identified institutions with ThyssenKrupp shares in their portfolio also remained virtually unchanged at a high level (456). Private investors own an estimated 10% of the capital stock.

The Alfried Krupp von Bohlen und Halbach Foundation based in Essen remains the largest shareholder of Thyssen-Krupp AG. The Foundation has informed ThyssenKrupp that its share of the Company's voting rights amounts to 25.33%.

Taking into account the shares owned by the Krupp Foundation, the free float, which is generally used for weighting ThyssenKrupp's stock in stock indices, is 74.67% of the capital stock.

Innovations

Light-eBody – Electric mobility in mass production

Together with 13 cooperation partners, including car manufacturers and universities, ThyssenKrupp is developing an innovative lightweight body concept for electric vehicles in the Light-eBody project. The project supports the goal set out in the German government's National Development Plan of getting around a million electric cars onto German roads by 2020. The work is being funded by the Federal Ministry for Education and Research. With tailored combinations of innovative steel materials, ThyssenKrupp engineers aim to promote electric mobility.

With the new body, future electric cars could have a range of 150 km with a battery capacity of 25 kilowatt-hours. Thanks in part to the innovative materials, in mass production the body will be around 25% lighter than conventional bodies. The researchers also aim to improve lifecycle environmental performance. This includes CO2 savings not just during driving but also during production of the materials and parts and during recycling at the end of the product lifecycle.

Laboratory automation for the cement industry

The requirements for quality control in cement plants are becoming ever more challenging. Specified properties have to be maintained precisely during the production of several thousand tons of cement per day.

ThyssenKrupp has developed and commercialized a completely new approach for this: the POLAB® Shuttle. Using the new system, material samples taken directly from the production process can be analyzed automatically. A robot mounted on a rail system transports the samples to the various analysis units in the lab.

In previous automation concepts sample analysis had to be stopped as soon as employees entered the robot workspace. Thanks to the innovative safety concept used by the POLAB® Shuttle, the laboratory now becomes a common human-machine workspace.

Employees

On March 31, 2012 the Group's continuing operations employed 159,009 people, 10,111 or 6.0% fewer than a year earlier.

The construction of the new steelmaking and processing plants in Brazil and the USA created a large number of new jobs in the Steel Americas business area. Elevator Technology, Plant Technology and Components Technology also recruited new employees. The headcount fell at Steel Europe due to restructuring measures and at Materials Services and Marine Systems due to disposals.

Compared with September 30, 2011 the number of employees decreased by 9,551 or 5.7%. The workforce in Germany decreased by 5,472 or 8.7% to 57,739; its share in the total workforce was 36%.

At the end of March 2012 15% of all employees were based in the NAFTA region, 14% in South America, 20% in Europe outside Germany, 14% in Asia – mainly in China and India – and 1% in the rest of the world.

Including Stainless Global, ThyssenKrupp had 170,780 employees worldwide at the end of March 2012, 9,632 or 5.3% fewer than a year earlier. Compared with September 30, 2011 the workforce decreased by 9,270 or 5.1%.

Quarter on quarter rate of change
December 31			167,095
March 31		$+1\%$	169,120
June 30		$+1\%$	171,086
September 30		$(1)\%$	168,560
	2010/2011
December 31		$(5)\%$	159,682
March 31		$(1)\%$	159,009
	2011/2012

Competence Center Global Assignments established

The Competence Center Global Assignments has been set up at Group headquarters to consolidate the management of international employee transfers. It consists of a team of highly qualified experts who manage all aspects of international transfers in liaison with the respective home and host companies. The competence center provides advice to expatriates, initiates the necessary preparations – from visa applications to relocation to intercultural and language training –, calculates salaries, prepares contracts and looks after social security and other insurance issues. Staff of the competence center are on hand to support expatriates on all aspects of their transfer right through to reintegration.

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 and also include the cash and cash equivalents relating to the disposal groups including the discontinued operations. For the reporting period and the corresponding prior-year half, the discontinued operations comprise the activities of Stainless Global.

In the 1st half 2011/2012 there was a net cash outflow from operating activities of €1,719 million, compared with €1,514 million in the prior year. Cash outflow from continuing operations was also higher, rising by €189 million to €1,428 million. A major reason for this was the €516 million decrease in net income before impairment losses/reversals and before deferred taxes. This was partly offset by a €338 million decrease in funds tied up in operating assets and liabilities. In the discontinued operations, operating cash flow was unchanged from the prior year at €(291) million.

Cash outflow from investing activities decreased year-on-year by €536 million to €756 million. The continuing operations reported a €607 million decrease. The reasons for this were €482 million lower capital expenditure for property, plant and equipment and €246 million higher proceeds from the disposal of previously consolidated companies – mainly the Xervon group and the Brazilian Automotive Systems activities. In the discontinued operations cash outflow from investing activities increased by €71 million, mainly due to higher capital expenditure for property, plant and equipment.

Free cash flow, i.e. the sum of operating cash flows and cash flows from investing activities, was negative in both the continuing operations and the discontinued operations; however, the continuing operations recorded an improvement of €418 million compared with the prior year. Overall, free cash flow in the reporting half was €(2,475) million.

Cash inflow from financing activities in the continuing operations came to €950 million, €172 million higher than in the prior year. This increase resulted mainly from two offsetting effects. On the one hand borrowings were €678 million higher, while on the other there was a cash outflow from other financing activities of €157 million, compared with a €149 million cash inflow in the prior year. The cash outflow of €306 million resulting from the change was mainly due to the reduction in liabilities to associated companies and the transfer to the factoring company of payments received from customers in respect of already sold receivables in the reporting half. In the discontinued operations there was a cash inflow from financing activities of €436 million, €55 million more than in the prior year – mainly due to the integration of Stainless Global into the Group financing system. Overall, cash inflow from financing activities increased by €227 million to €1,386 million.

Analysis of the statement of financial position

Compared with September 30, 2011, total assets decreased by €746 million to €42,857 million. This includes a currency translation-related increase of €365 million.

Non-current assets increased by a total of €292 million. The €139 million rise in intangible assets was mainly due to exchange rate effects and higher goodwill in connection with acquisitions in the Elevator Technology and Plant Technology business areas. The small net increase in property, plant and equipment was mainly currency related. Deferred tax assets increased by €71 million; in addition to currency translation effects this was mainly caused by the increase in tax-deductible losses in Germany and abroad.

Current assets decreased overall by €1,038 million.

Inventories stood at €8,351 million on March 31, 2012, up €246 million from September 30, 2011. In addition to exchange rate effects the increase mainly related to the Materials Services business area.

Trade accounts receivable increased by €498 million, mainly due to the generally positive sales trend in the 2nd quarter 2011/2012 and the ramp-up of the new steel plants. In addition, higher percentage completion rates on long-term construction contracts in the Plant Technology business area had an effect.

The €59 million decrease in other current financial assets was mainly due to the recognition of derivatives. Other current non-financial assets increased by €272 million, due in particular to higher refund entitlements in connection with taxes not based on income as well as increased advance payments for the procurement of inventories.

The €733 million decrease in cash and cash equivalents was mainly attributable to the high negative free cash flow from continuing operations of €(2,001) million in the 1st half 2011/2012; this was partly offset by the issue of a new €1,250 million bond in February 2012.

Assets held for sale decreased by €1,258 million to €4,503 million – mainly due to the sale of the civil operations of Blohm + Voss (€620 million) in the 2nd quarter 2011/2012 and the disposals of the Xervon group in the Materials Services business area (€451 million) and the Chinese operations of the Metal Forming group in the Steel Europe business area (€65 million) in November 2011. In addition there was a net reduction of €122 million at Stainless Global, where increases as a result of continuing operation were more than offset by impairment charges of €515 million based on the agreement with Outokumpu.

Total equity at March 31, 2012 was €8,872 million, down €1,510 million from September 30, 2011. The main factors in this were the net loss of €1,067 million, dividend payments of €280 million and in particular the net actuarial losses from pensions and similar obligations (€304 million after taxes) recognized in other comprehensive income. This was partly offset by unrealized gains from foreign currency translation (€149 million) and from derivative financial instruments (€15 million after taxes) recognized in other comprehensive income.

Non-current liabilities increased in total by €1,163 million. This included a €296 million increase in accrued pension and similar obligations, of which €490 million was due to the updated interest rates used for the revaluation of pension and healthcare obligations at March 31, 2012; this was partly offset by disposals and plan changes. In addition, non-current debt increased by €854 million, including a €619 million increase in liabilities to financial institutions. Bonds increased by a total of €242 million; this resulted from the above-mentioned bond issue in February 2012, which was offset by a reclassification of €1,002 million to current financial debt in connection with a bond falling due in February 2013.

Current liabilities decreased overall by €399 million.

Current provisions for employee benefits decreased by €85 million, mainly due to utilization. The €129 million decrease in other current provisions was mainly due to the implementation of restructuring measures as well as provisions for selling, litigation and financing risks. Current financial debt increased by €1,322 million, mainly due to the abovementioned reclassification of a bond.

Trade accounts payable decreased by €444 million, mainly due to reductions in the Steel Europe, Materials Services and Elevator Technology business areas.

The €465 million decrease in other current financial liabilities was mainly the result of the accounting for derivatives and the reduction in liabilities to associated companies. The €261 million increase in other current non-financial liabilities mainly reflected higher advance payments.

Liabilities associated with assets held for sale decreased by €777 million to €2,447 million, mainly due to the abovementioned disposals of the Xervon group (€397 million) and the civil operations of Blohm + Voss (€325 million).

Subsequent events

Subsequent events between the end of the 1st half reporting period (March 31, 2012) and the date of authorization for issue (May 10, 2012) are presented in Note 13 to the interim financial statements.

Expected developments and associated opportunities and risks

Economic forecasts subject to large uncertainties

The expectations for the economy as a whole and the individual sectors in 2012 are subject to large uncertainties. The main reasons for this are the effects of the sovereign debt crisis and the risk of rising raw material and energy prices. On the other hand, despite now noticeable signs of slowing most emerging countries are still showing relatively solid growth momentum, which limits the risk of a global recession.

For 2012 we expect global economic growth of 2.9%, compared with 3.3% in the prior year. The emerging countries should expand by 5.3% altogether, but the industrialized countries by only 1.2%. We expect somewhat stronger economic momentum in 2013.

In the euro zone, GDP is expected to decline slightly in 2012, hampered by the pressure to consolidate public budgets and cautious business spending. For Germany we expect an increase of only 0.5%.

In the USA, economic growth could pick up slightly to 2.1% in 2012. Industrial activity remains relatively robust, and first positive signs are coming from the labor market, which could strengthen consumer spending. In Japan, the catchup process after the natural disaster last year will lead to an expansion of 1.4%.

The emerging countries will remain growth drivers of the global economy in 2012. GDP growth of 7.8% is expected for China. The other BRIC countries are also expected to show still relatively solid growth rates.

Industrial sectors in part positive

Flat carbon steel – The global steel market will continue to grow in 2012, but at a slightly more moderate rate of under 4% than was expected a few months ago. Steel demand in the emerging countries remains robust and is expected to rise again in 2012. However, the Chinese steel market will expand less strongly than in the past, by around 4%. Based on the slightly more positive economic signals coming from the US market recently, an above-average increase of around 6% is expected there. In the European Union a moderate decline in steel demand appears likely. Real consumption will soften, and no positive inventory effects are expected. However, German steel demand should be stable at around 41 million tons.

Automotive – The global auto market will remain on a moderate growth track in 2012. Worldwide production of cars and light trucks is expected to increase by around 6% year-on-year to 78.3 million units. In the USA, production could rise by a further 12%, and in Japan catch-up demand will result in an estimated increase of 15%. In China, government curbs will restrict growth to 9%. Western European auto production will probably decline by 6% in 2012. In Germany the production level will remain stable but because of statistical changes a decline of 4% will be reported.

Machinery – The machinery sector will not maintain its very high 2011 growth rates in 2012, with capital spending in several countries subdued. Growth could slow to 6% in the USA and 12% in China. Production in Japan is expected to rise by 2%. In Germany, production should at least hold steady at the high level of 2011.

Construction – Construction activity will continue to show regional differences in 2012. In Western Europe little more than stagnation is expected, while the prospects for some Central and Eastern European countries are brighter. The US construction industry could improve markedly. Construction activity in India and China will remain relatively strong with growth rates of 6% and 8% respectively.

Situation on important sales markets

	2011	2012*
Demand for finished steel, million tons
World	1,373	1,422
Germany	40.7	40.8
USA	89	94
China	624	649
Vehicle production, million cars and light trucks
World	73.8	78.3
Western Europe/Turkey	15.1	14.2
Germany**	6.1	5.8
USA	8.5	9.5
Japan	7.9	9.1
China**	16.0	17.5
Brazil**	3.1	3.1
Machinery production, real, in % versus prior year
Germany	12.1	0.0
USA	9.5	6.0
Japan	10.5	2.0
China	17.2	12.0
Construction output, real, in % versus prior year
Germany	13.4	1.7
USA	1.1	5.1
China	14.6	7.8

* Forecast ** different statistical basis for 2012: excl. CKD (complete knock down kits)

Expected results of operations (continuing operations)

The consequences of the sovereign debt crisis have clearly weakened our core markets in fiscal 2011/2012 to date; continuing economic uncertainties cannot be ruled out.

However, based on the stability of our less cyclical capital goods operations as well as improvements in our materials operations, we expect a moderate increase in our adjusted EBIT in the 2nd half of the current fiscal year compared with the 1st half:

• In the materials operations, we expect Steel Europe's earnings to come in at the level of the 1st half with volumes and prices influenced by continuing intense competition, while earnings at Materials Services should be better in the 2nd half. At Steel Americas, the increased stability of the operational ramp-up will bring improvements; these will be set against continuing price pressure due to the market entry.
• In the capital goods operations we expect earnings contributions to improve at Plant Technology and hold steady at Elevator Technology. In the comparatively more cyclical Components Technology business we believe that the current good operating levels will continue into the 2nd fiscal half. The earnings contributions from Marine Systems will normalize.

For fiscal year 2011/2012 as a whole we expect adjusted EBIT for the Group in the mid three-digit million euro range.

Our goal in fiscal 2011/2012 remains to reduce complexity in the Group, cut costs, and sustainably improve cash generation. Reducing our net financial debt remains a major priority.

In the 2012/2013 fiscal year:

• We will continue to work on the structural improvement of the Group and rigorously implement our integrated strategic development plan. This may include measures to achieve sustainable cost reductions or optimize the portfolio.
• Provided the economic effects of the sovereign debt crisis do not extend into our 2012/2013 fiscal year, we expect our sales to increase in line with general economic growth. Offsetting effects could result from portfolio measures.
• Rising sales and structural improvements should have a correspondingly positive effect on earnings. Further upside potential should come from operating improvements at Steel Americas. We will continue to seek to reduce our net financial debt.

Opportunities if the global economy improves

Given a further improvement in the overall economic environment, particularly in the emerging countries, we see significant growth opportunities for ThyssenKrupp with its high-quality innovations. Our cost- and resource-efficient products and processes give us an edge in the global market. In addition, the corporate program impact makes a major contribution to implementing value-enhancing measures and increasing our productivity in all areas of the Group.

Risks controlled through systematic risk management

The debt crises in several countries and the uncertainties on the financial markets are affecting our economic environment. We continuously monitor the impact of these macroeconomic risks on our markets through systematic risk management. In this way we avoid risks that could threaten the existence of the Company and contain other risks at a manageable level.

ThyssenKrupp manages its liquidity and credit risks proactively. The Group's financing and liquidity remain on a secure foundation in fiscal 2011/2012. At March 31, 2012 the Group had €6.4 billion in cash, cash equivalents and committed credited 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. money investments. In times of crisis default risks take on additional significance; we manage them with particular care as part of our business policy. Financial instruments used for financing are traded with specified risk limits only with counterparties who have very good credit standing and/or who are members of a deposit guarantee scheme.

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.

Our steel activities are exposed to volume and price risks from a continuing weak market environment, fluctuating raw material prices and rising energy prices. We secure our competitiveness by adapting selling prices and using alternative procurement sources where possible. As the ramp-up of the new steel mills of Steel Americas continues we minimize possible delays and isolated quality problems in close coordination with our experts at Steel Europe. However the book values of property, plant and equipment at Steel Americas remain exposed to valuation risks. We continuously monitor the relevant factors affecting their valuation. Major changes to capital market parameters or expectations on long-term exchange rate trends, as well as a change to the assessment of the strategic development of the business area could make valuation adjustments necessary which could have a significant effect on the financial position and results of the Group.

We are reducing our dependence on individual sales markets and sectors through our good and long-standing relationships with our global customers and by further expanding our presence in the fast-growing emerging economies.

Political unrest in crisis regions has the potential to create country-specific risks for our current and planned business activities. At present, however, our continuous monitoring of current developments indicates no major constraints from these risks.

Changes to the legal framework at national or European level could entail risks for us if they affect our business operations and lead to higher costs or other disadvantages compared with our competitors. We support the related discussion process and minimize the risks through close working contacts with the relevant institutions.

Beyond this, the detailed information contained in the risk report on pages 108-119 of our 2010/2011 Annual Report is still valid.

We report on pending lawsuits, claims for damages and other risks in Note 7.

ThyssenKrupp AG Consolidated statement of financial position

Assets million €

	Note	Sept. 30, 2011	March 31, 2012
Intangible assets		4,166	4,305
Property, plant and equipment		12,649	12,716
Investment property		301	294
Investments accounted for using the equity method		593	618
Other financial assets		71	93
Other non-financial assets		453	428
Deferred tax assets		940	1,011
Total non-current assets		19,173	19,465
Inventories, net		8,105	8,351
Trade accounts receivable*		5,138	5,636
Other financial assets*		499	440
Other non-financial assets		1,563	1,835
Current income tax assets		134	130
Cash and cash equivalents		3,230	2,497
Assets held for sale	02	5,761	4,503
Total current assets		24,430	23,392
Total assets		43,603	42,857

Equity and Liabilities million €

	Note	Sept. 30, 2011	March 31, 2012
Capital stock		1,317	1,317
Additional paid in capital		4,684	4,684
Retained earnings		2,833	1,235
Cumulative other comprehensive income		178	326
thereof relating to disposal groups/discontinued operations (Sept. 30, 2011: (19); March 31, 2012: (3))
Equity attributable to ThyssenKrupp AG's stockholders		9,012	7,562
Non-controlling interest		1,370	1,310
Total equity	03	10,382	8,872
Accrued pension and similar obligations	05	6,940	7,236
Provisions for other employee benefits*		197	201
Other provisions*		451	496
Deferred tax liabilities		324	288
Financial debt		6,494	7,348
Other financial liabilities		1	1
Other non-financial liabilities		7	7
Total non-current liabilities		14,414	15,577
Provisions for employee benefits*		300	215
Other provisions*		1,200	1,071
Current income tax liablilities		409	327
Financial debt		178	1,500
Trade accounts payable*		4,926	4,482
Other financial liabilities*		1,238	773
Other non-financial liabilities		7,332	7,593
Liabilities associated with assets held for sale	02	3,224	2,447
Total current liabilities		18,807	18,408
Total liabilities		33,221	33,985
Total equity and liabilities		43,603	42,857

* Prior year figure adjusted.

ThyssenKrupp AG Consolidated statement of income

million €, earnings per share in €

	Note	1st half ended March 31, 2011*	1st half ended March 31, 2012	2nd quarter ended March 31, 2011*	2nd quarter ended March 31, 2012
Net sales	09	20,700	20,509	10,680	10,613
Cost of sales	10	(17,635)	(17,927)	(9,073)	(9,326)
Gross profit		3,065	2,582	1,607	1,287
Research and development cost		(81)	(80)	(40)	(43)
Selling expenses		(1,314)	(1,385)	(674)	(706)
General and administrative expenses		(1,116)	(1,077)	(558)	(540)
Other income		111	102	57	50
Other expenses		(51)	(201)	4	(48)
Other gains/(losses)		33	37	8	29
Income/(loss) from operations		647	(22)	404	29
Income/(expense) from companies accounted for using the equity method		45	12	31	5
Finance income		443	378	217	66
Finance expenses		(702)	(642)	(355)	(191)
Financial income/(expense), net		(214)	(252)	(107)	(120)
Income/(loss) before income taxes		433	(274)	297	(91)
Income tax (expense)/income		(143)	(202)	(97)	(213)
Income/(loss) from continuing operations		290	(476)	200	(304)
Discontinued operations (net of tax)		44	(591)	33	(283)
Net income/(loss)		334	(1,067)	233	(587)
Attributable to:
ThyssenKrupp AG's stockholders		414	(1,047)	272	(587)
Non-controlling interest		(80)	(20)	(39)	0
Net income/(loss)		334	(1,067)	233	(587)
Basic and diluted earnings per share	11
Income from continuing operations (attributable to ThyssenKrupp AG's stockholders)		0.80	(0.89)	0.51	(0.59)
Net income/(loss) (attributable to ThyssenKrupp AG's stockholders)		0.89	(2.03)	0.58	(1.14)

* Prior year figure adjusted.

ThyssenKrupp AG Consolidated statement of comprehensive income

million €

	1st half ended March 31, 2011	1st half ended March 31, 2012	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012
Net income/(loss)	334	(1,067)	233	(587)
Foreign currency translation adjustment
Change in unrealized gains/(losses), net	(198)	157	(647)	(177)
Net realized (gains)/losses	0	(8)	0	(1)
Net unrealized gains/(losses)	(198)	149	(647)	(178)
Unrealized gains/(losses) from available-for-sale financial assets
Change in unrealized gains/(losses), net	(3)	1	(1)	1
Net realized (gains)/losses	0	0	0	0
Tax effect	1	0	1	0
Net unrealized gains/(losses)	(2)	1	0	1
Actuarial gains/(losses) from pensions and similar obligations
Change in actuarial gains/(losses), net	795	(434)	191	(64)
Tax effect	(261)	130	(76)	19
Net actuarial gains/(losses) from pensions and similar obligations	534	(304)	115	(45)
Gains/(losses) resulting from asset ceiling
Change in gains/(losses), net	(26)	(4)	(1)	(12)
Tax effect	9	1	1	3
Net gains/(losses) resulting from asset ceiling	(17)	(3)	0	(9)
Unrealized (losses)/gains on derivative financial instruments
Change in unrealized gains/(losses), net	(78)	23	(151)	(53)
Net realized (gains)/losses	(59)	(3)	(6)	2
Tax effect	45	(5)	50	14
Net unrealized gains/(losses)	(92)	15	(107)	(37)
Share of unrealized gains/(losses) of investments accounted for using the equity-method	(24)	(1)	(31)	(11)
Other comprehensive income	201	(143)	(670)	(279)
Total comprehensive income	535	(1,210)	(437)	(866)
Attributable to:
ThyssenKrupp AG's stockholders	687	(1,208)	(253)	(824)
Non-controlling interest	(152)	(2)	(184)	(42)

ThyssenKrupp Consolidated statement of changes in equity

million € (except number of shares)

					Equity attributable to ThyssenKrupp AG's stockholders
				Cumulative other comprehensive income
	Number of shares outstanding	Capital stock	Additional paid in capital	Retained earnings	Foreign currency translation adjustment	Available for-sale financial assets	Derivative financial instruments	Share of investments accounted for using the equity method	Treasury stock	Total	Non controlling interest	Total equity
Balance as of Sept. 30, 2010	464,394,337	1,317	4,684	3,703	127	5	50	10	(1,396)	8,500	1,888	10,388
Net income				414						414	(80)	334
Other comprehensive income Total comprehensive				506	(148)	(2)	(70)	(13)		273	(72)	201
income				920	(148)	(2)	(70)	(13)		687	(152)	535
Profit attributable to non-controlling interest										0	(20)	(20)
Dividend payment Treasury stock sold Tax effects on income	209,770			(209) 0					7	(209) 7	0 0	(209) 7
and expense directly recognized in equity Other changes				1 3					(1)	0 3	0 2	0 5
Balance as of March 31, 2011	464,604,107	1,317	4,684	4,418	(21)	3	(20)	(3)	(1,390)	8,988	1,718	10,706
Balance as of Sept. 30, 2011	514,489,044	1,317	4,684	2,833	170	2	(22)	28	0	9,012	1,370	10,382
Net loss Other comprehensive				(1,047)						(1,047)	(20)	(1,067)
income Total comprehensive				(309)	133	1	13	1		(161)	18	(143)
income Profit attributable to				(1,356)	133	1	13	1		(1,208)	(2)	(1,210)
non-controlling interest										0	(48)	(48)
Dividend payment Other changes				(232) (10)						(232) (10)	0 (10)	(232) (20)
Balance as of March 31, 2012	514,489,044	1,317	4,684	1,235	303	3	(9)	29	0	7,562	1,310	8,872

ThyssenKrupp Consolidated statement of cash flows

million €

	1st half ended March 31, 2011	1st half ended March 31, 2012	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012
Net income/(loss)	334	(1,067)	233	(587)
Adjustments to reconcile net income/(loss) to operating cash flows:
Discontinued operations (net of tax)	(44)	591	(33)	283
Deferred income taxes, net	(81)	29	(25)	116
Depreciation, amortization and impairment of non-current assets	743	882	401	367
Reversals of impairment losses of non-current assets	(2)	(1)	0	0
(Income)/loss from companies accounted for using the equity method, net of dividends received	(41)	(11)	(30)	(5)
(Gain)/loss on disposal of non-current assets, net	(19)	(60)	2	0
Changes in assets and liabilities, net of effects of acquisitions and divestitures and other non-cash changes:
- inventories	(1,384)	(219)	(530)	332
- trade accounts receivable	(579)	(498)	(616)	(567)
- accrued pension and similar obligations	(132)	(140)	(56)	(59)
- other provisions	(134)	(172)	(106)	(38)
- trade accounts payable	94	(465)	470	90
- other assets/liabilities not related to investing or financing activities	6	(297)	145	218
Operating cash flows - continuing operations	(1,239)	(1,428)	(145)	150
Operating cash flows - discontinued operations	(275)	(291)	66	(54)
Operating cash flows - total	(1,514)	(1,719)	(79)	96
Purchase of investments accounted for using the equity method and non-current financial assets	(22)	(18)	(1)	(8)
Expenditures for acquisitions of consolidated companies net of cash acquired	(44)	(39)	0	0
Capital expenditures for property, plant and equipment (inclusive of advance payments) and investment property	(1,225)	(743)	(589)	(377)
Capital expenditures for intangible assets (inclusive of advance payments)	(28)	(72)	(13)	(21)
Proceeds from disposals of investments accounted for using the equity method and non-current financial assets	12	1	7	1
Proceeds from disposals of previously consolidated companies net of cash acquired	17	263	2	(27)
Proceeds from disposals of property, plant and equipment and investment property	107	28	11	14
Proceeds from disposals of intangible assets	3	7	0	0
Cash flows from investing activities - continuing operations	(1,180)	(573)	(583)	(418)
Cash flows from investing activities - discontinued operations	(112)	(183)	(56)	(99)
Cash flows from investing activities - total	(1,292)	(756)	(639)	(517)
Proceeds from issuance of bonds	0	1,250	0	1,250
Repayment of bonds	(750)	0	(750)	0
Proceeds from liabilities to financial institutions	1,674	1,847	571	893
Repayments of liabilities to financial institutions	(178)	(1,187)	(117)	(849)
Proceeds from/(repayments on) notes payable and other loans	483	(8)	312	(157)
Increase/(decrease) in bills of exchange	(4)	1	(13)	(2)
Decrease in current securities	1	0	1	0
Proceeds from non-controlling interest to equity	32	0	30	0
Proceeds from treasury shares sold	1	0	1	0
Payment of ThyssenKrupp AG dividend	(209)	(232)	(209)	(232)
Profit attributable to non-controlling interest	(20)	(48)	(8)	(27)
Expenditures for acquisitions of shares of already consolidated companies	0	(15)	0	0
Financing of discontinued operations	(401)	(501)	59	(110)
Other financing activities	149	(157)	118	109
Cash flows from financing activities - continuing operations	778	950	(5)	875
Cash flows from financing activities - discontinued operations	381	436	(13)	112
Cash flows from financing activities - total	1,159	1,386	(18)	987
Net increase/(decrease) in cash and cash equivalents - total	(1,647)	(1,089)	(736)	566
Effect of exchange rate changes on cash and cash equivalents - total	(10)	46	(111)	(15)
Cash and cash equivalents at beginning of reporting period - total	3,673	3,568	2,863	1,974
Cash and cash equivalents at end of reporting period - total	2,016	2,525	2,016	2,525
[thereof cash and cash equivalents within disposal groups]	[282]	[-]	[282]	[-]
[thereof cash and cash equivalents within discontinued operations]	[-]	[28]	[-]	[28]
Additional information regarding cash flows of continuing operations from interest,
dividends and income taxes which are included in operating cash flows:
Interest received	102	81	49	41
Interest paid Dividends received	(332) 6	(297) 4	(270) 2	(245) 2
Income taxes paid	(161)	(202)	(76)	(64)

ThyssenKrupp AG Selected notes

Corporate information

ThyssenKrupp Aktiengesellschaft ("ThyssenKrupp AG" or "Company") is a publicly traded corporation domiciled in Duisburg and Essen in Germany. The condensed interim consolidated financial statements of ThyssenKrupp AG and subsidiaries, collectively the "Group", for the period from October 01, 2011 to March 31, 2012, were authorized for issue in accordance with a resolution of the Executive Board on May 10, 2012.

Basis of presentation

The accompanying Group's condensed interim consolidated financial statements have been prepared in accordance with section 37w of the German Securities Trading Act (WpHG) and International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB) for interim financial information effective within the European Union. Accordingly, these financial statements do not include all of the information and footnotes required by IFRS for complete financial statements for year end reporting purposes.

The accompanying Group's condensed interim consolidated financial statements have been reviewed. In the opinion of Management, the interim financial statements include all adjustments of a normal and recurring nature considered necessary for a fair presentation of results for interim periods. Results of the period ended March 31, 2012, are not necessarily indicative for future results.

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

The accounting principles and practices as applied in the condensed interim consolidated financial statements correspond to those pertaining to the most recent annual consolidated financial statements. A detailed description of the accounting policies is published in the notes to the consolidated financial statements of our annual report 2010/2011.

Recently adopted accounting standards

In fiscal year 2011/2012, ThyssenKrupp adopted the following standards, interpretations and amendments:

In November 2009 the IASB issued a revised version of IAS 24 "Related Party Disclosures". The revised standard simplifies the disclosure requirements for government-related entities and clarifies the definition of a related party. The application of the amended standard is compulsory for fiscal years beginning on or after January 01, 2011, while earlier application is permitted. The adoption of the amended standard did not have a material impact on the Group's consolidated financial statements.

In November 2009 the IASB issued an amendment to IFRIC 14, which is itself an interpretation of IAS 19 "Employee Benefits", titled "Prepayments of a Minimum Funding Requirement". The amendment applies in the limited circumstances when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover those requirements. The amendment permits such an entity to treat the benefit of such an early payment as an asset. The application of the amended interpretation is compulsory for fiscal years beginning on or after January 01, 2011, while earlier application is permitted for 2009 year-end financial statements. The adoption of the interpretation did not have a material impact on the Group's consolidated financial statements.

In May 2010 the IASB issued the third omnibus standard "Improvements to IFRSs" as part of its annual improvement process project. This standard slightly adjusts six standards and one interpretation. Unless otherwise specified, the amendments are effective for fiscal years beginning on or after January 01, 2011, while earlier application is permitted. The adoption of the amended standards and interpretation did not have a material impact on the Group's consolidated financial statements.

In October 2010 the IASB issued amendments to IFRS 7 "Financial Instruments: Disclosures". The amendments will allow users of financial statements to improve the understanding of transfer transactions of financial assets. The application of the amendments is compulsory for fiscal years beginning on or after July 01, 2011, while earlier application is permitted. In the year of adoption comparative disclosure is not required. Currently, Management does not expect the adoption of the amendments in the notes as of September 30, 2012 to have a material impact on the presentation.

Recently issued accounting standards

In fiscal year 2011/2012, the following amendments to already existing standards have been issued which must still be endorsed by the EU before they can be adopted:

In October 2011 the IASB issued the IFRIC interpretation 20 "Stripping Costs in the Production Phase of a Surface Mine". The interpretation regulates the accounting for stripping costs in the production phase of a surface mine. The interpretation clarifies under which conditions an asset must be recognized for the relating stripping measures and how initial and subsequent measurement of this asset has to be determined. The interpretation is compulsory for fiscal years beginning on or after January 01, 2013; earlier application is permitted. Currently, Management does not expect the adoption of the interpretation – if endorsed by the EU in the current version – to have an impact on the Group's consolidated financial statements.

In December 2011 the IASB issued an amendment to IAS 32 "Financial Instruments: Presentation" which clarifies the requirements for offsetting financial assets and financial liabilities to eliminate existing inconsistencies in current practice. The amendment is compulsory for fiscal years beginning on or after January 01, 2014 and shall be applied retrospectively; earlier application is permitted. Currently, Management does not expect the adoption of the amendment – if endorsed by the EU in the current version – to have a material impact on the Group's consolidated financial statements.

In December 2011 the IASB issued an amendment to IFRS 7 "Financial Instruments: Disclosures" which requires disclosures in the context of certain offsetting arrangements. The obligation for disclosures has to be applied regardless of whether the offsetting arrangements result in any actual offsetting of the respective financial assets and financial liabilities. The new disclosure requirements shall simplify comparing financial statements prepared in accordance with IFRS and financial statements prepared in accordance with US GAAP. The amendment is compulsory for fiscal years beginning on or after January 01, 2013 and shall be applied retrospectively; earlier application is permitted. Currently, Management does not expect the adoption of the amendment – if endorsed by the EU in the current version – to have a material impact on the Group's consolidated financial statements.

In December 2011 the IASB issued amendments to IFRS 9 "Financial Instruments" and IFRS 7 "Financial Instruments: Disclosures" that defer the mandatory effective date of IFRS 9 from January 01, 2013 to January 01, 2015. In addition the amendment provides relief from the requirement to restate comparative financial statements for the effect of applying IFRS 9. Instead, additional transition disclosures have been added to IFRS 7 to help users of the financial statements to understand the effect that the initial application of IFRS 9 has on the classification and measurement of financial instruments. Earlier application of IFRS 9 is still permitted. Currently, Management is not able to finally assess the impact of adoption of IFRS 9 – if endorsed by the EU in the current version.

.

01 Acquisitions and disposals

In August 2011, as part of the portfolio optimization, the Group initiated the disposal of the ThyssenKrupp Xervon Group in the Materials Services business area which was consummated in November 2011. The Xervon Group is one of the world's leading providers of technical services for industrial plant construction and maintenance. This disposal, the disposal of the Chinese activities of the Metal Forming Group that were initiated in April 2011 and consummated in November 2011, the disposal of ThyssenKrupp Automotive Systems Industrial do Brasil Ltda., the disposal of parts of the Marine Systems business area that were initiated in April 2010 and consummated end of January 2012, as well as other smaller disposals that are, on an individual basis, immaterial affected in total, based on the values as of the respective disposal date, the Group's consolidated financial statements as presented below:

million €

	1st half ended March 31, 2012
Goodwill	19
Other intangible assets	9
Property, plant and equipment	197
Other financial assets	1
Deferred tax assets	7
Inventories	167
Trade accounts receivable	312
Other current financial assets	64
Other current non-financial assets	28
Current income tax assets	1
Cash and cash equivalents	136
Total assets disposed of	941
Accrued pension and similar obligations	94
Other non-current provisions	3
Deferred tax liabilities	10
Non-current financial debt	2
Other non-current financial liabilities	3
Other current provisions	52
Current income tax liablilities	8
Current financial debt	29
Trade accounts payable	114
Other current financial liabilities	175
Other current non-financial liabilities	222
Total liabilities disposed of	712
Net assets disposed of	229
Cumulative other comprehensive income	(16)
Non-controlling interest	6
Gain/(loss) resulting from the disposals	56
Selling prices	263
thereof: received in cash and cash equivalents	255

In addition in the 1st half year ended March 31, 2012, the Group acquired smaller companies that are, on an individual basis, immaterial. Based on the values as of the acquisition date, these acquisitions affected in total the Group's consolidated financial statements as presented below:

million €

	1st half ended March 31, 2012
Goodwill	73
Other intangible assets	20
Property, plant and equipment	3
Inventories	1
Trade accounts receivable	13
Other current financial assets	2
Other current non-financial assets	2
Cash and cash equivalents	8
Total assets acquired	122
Accrued pension and similar obligations	1
Deferred tax liabilities	1
Non-current financial debt	1
Current financial debt	1
Trade accounts payable	19
Other current non-financial liabilities	14
Total liabilities assumed	37
Net assets acquired	85
Non-controlling interest	0
Purchase prices	85
thereof: paid in cash and cash equivalents	77

02 Discontinued operations and disposal groups

As part of the portfolio optimization and of the decision about the concept for the further strategic development in May 2011, in fiscal year 2009/2010 as well as in fiscal year 2010/2011 the disposal of parts of the Marine Systems business area and the disposal of the entire Stainless Global business area have been initiated. While the parts of the Marine Systems business area were disposed of in the 2nd quarter of 2011/2012, the disposal of the Stainless Global business area is not consummated as of the balance sheet date.

The disposal of parts of the Marine Systems business area did not meet the requirements of IFRS 5 for a presentation as a discontinued operation. Therefore, revenues and expenses were continued to be presented as income from continuing operations until the date of the disposal on January 31, 2012. However the initiated disposal of the entire Stainless Global business area met the criteria for a presentation as a discontinued operation for the first time as of September 30, 2011. Therefore, all revenues and expenses of this business area of the reporting period will be presented in the consolidated statement of income in the line item "discontinued operations (net of tax)". The prior year presentation has been adjusted accordingly. For entities for which the disposal has not been completed as of the balance sheet date of the respective reporting period, the assets and liabilities of the disposal group and of the discontinued operation have been disclosed separately in the consolidated balance sheet of the reporting period in the line items "assets held for sale" and "liabilities associated with assets held for sale".

In April 2010 the disposal of parts of the Marine Systems business area has been initiated. The transaction comprises the disposal of Blohm + Voss Shipyards GmbH, operating in shipbuilding in particular of premium-segment yachts and 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 construction of former HDW Gaarden are part of the disposal group. In the year ended September 30, 2011, the civil part of former HDW Gaarden has been disposed of. Due to the termination of the negotiations with the Abu Dhabi MAR Group on the complete takeover of the civil shipbuilding activities and a joint venture in naval surface ship building, as of June 30, 2011, assets held for sale of €133 million and liabilities associated with assets held for sale of €145 million have been reclassified to the corresponding balance sheet positions. As of December 31, 2011 as already as of September 30, 2011, the sale of the civil operations of Blohm + Voss was part of the disposal group which was the yacht building and repair and components businesses in Hamburg. The valuation at fair value less costs to sell led to an impairment loss of €125 million on goodwill which was recognized in other expenses and impairment losses of €6 million on other intangible assets and of €24 million on property, plant and equipment which were recognized in cost of sales in the 1st quarter of 2011/2012.

Discontinued operation: Stainless Global business area

As part of its program for the further strategic development with the cornerstones to reduce the Group's debt, enable sustainable growth, create value and increase earning power, in May 2011 the Group decided to focuse the portfolio and to divest businesses for which there are stronger strategic alternatives.

Therefore as one measure, effective September 30, 2011, the corporate, organizational and contractual conditions for creating a separate Stainless Global and consequently the conditions for the firsttime presentation as a discontinued operation were established.

In the context with the initiated disposal, as of September 30, 2011 the measurement of discontinued operations at fair value less costs to sell based on internal calculations and market observations resulted in an impairment loss of €510 million. Thereof, €45 million applied to goodwill and the remaining impairment loss was allocated to property, plant and equipment. The expense is recognized in income/(loss) of discontinued operations of the 4th quarter of 2010/2011.

Based on the contract with Outokumpu about the intended sale, as of December 31, 2011 the measurement resulted in an impairment loss of €265 million that was allocated to property, plant and equipment. The update of the measurement as of March 31, 2012 resulted in an additional impairment loss of €250 million that was also allocated to property, plant and equipment. The expense is recognized in income/(loss) of discontinued operations of the 1st quarter of 2011/2012 and of the 2nd quarter of 2011/2012, respectively.

The calculation of the share component of 29.9% of the new company was based on the closing rate of the Outokumpu share of February 02, 2012 and of May 08, 2012, respectively. Until the final fixing of the

value ratios at the closing of the transaction, significant value fluctuations may occur.

Furthermore, due to the shut down of the Krefeld melt shop by the end of 2013, an impairment loss of €42 million on property, plant and equipment is recognized in income/(loss) of discontinued operations of the 2nd quarter of 2011/2012.

The results of the 1st half year and of the 2nd quarter of the Stainless Global business area that classifies as a discontinued operation are as follows:

million €	1st half ended March 31, 2011	1st half ended March 31, 2012	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012
Net sales	3,091	2,904	1,663	1,597
Other income	10	14	0	9
Expenses	(3,037)	(3,045)	(1,608)	(1,667)
Ordinary income/(loss) from discontinued operations (before taxes)	64	(127)	55	(61)
Income tax (expense)/income	(20)	51	(22)	28
Ordinary income/(loss) from discontinued operations (net of tax)	44	(76)	33	(33)
Gain/(loss) recognized on measurement adjustments of discontinued operations (before taxes)	—	(515)	—	(250)
Income tax (expense)/income	—	—	—	—
Gain/(loss) recognized on measurement adjustments of discontinued operations (net of tax)	0	(515)	0	(250)
Discontinued operations (net of tax)	44	(591)	33	(283)
thereof:
ThyssenKrupp AG's stockholders	43	(589)	33	(282)
Non-controlling interest	1	(2)	0	(1)

On initial classification as a discontinued operation, non-current assets are no longer amortized and depreciated, therefore in the 1st half year ended March 31, 2012, amortization and depreciation of €94 million were suspended; thereof €48 million refer to the 2nd quarter ended March 31, 2012.

The assets and liabilities of the discontinued operation as of March 31, 2012 are presented in the following table:

million €

	March 31, 2012
Other intangible assets	27
Property, plant and equipment	1,421
Investment property	12
Investments accounted for using the equity method	17
Other financial assets	2
Other non-financial assets	3
Deferred tax assets	168
Inventories	1,960
Trade accounts receivable	703
Other current financial assets	38
Other current non-financial assets	106
Current income tax assets	18
Cash and cash equivalents	28
Assets held for sale	4,503
Accrued pension and similar obligations	292
Provisions for other non-current employee benefits	22
Other non-current provisions	82
Deferred tax liabilities	107
Non-current financial debt	53
Other non-current non-financial liabilities	1
Provisions for current employee benefits	3
Other current provisions	54
Current income tax liabilities	10
Current financial debt	110
Trade accounts payable	1,433
Other current financial liabilities	143
Other current non-financial liabilities	137
Liabilities associated with assets held for sale	2,447

03 Total equity

Due to the expiration of the existing and not yet used authorization to increase the capital stock by up to €500 million (Authorized Capital) on January 18, 2012, the Executive Board has been authorized again by the resolution of the Annual General Meeting on January 20, 2012, with the approval of the Supervisory Board, to increase the capital stock on one or more occasions on or before January 19, 2017 by up to €500 million by issuing up to 195,312,500 new no-par bearer shares in exchange for cash and/or contributions in kind. The shareholders are in principle entitled to subscription rights; the option of excluding subscription rights is limited in total to 20% of the capital stock. Art. 5 para. 5 of the Articles of Association of ThyssenKrupp AG has been reworded accordingly.

04 Share-based compensation

Management incentive plans

In the 2nd quarter ended March 31, 2012, the members of the Executive Board of ThyssenKrupp AG were granted stock rights of the 2nd installment of the long-term incentive plan (LTI). Furthermore stock rights of the LTI were granted to additional executive employees. At the same time, in the 2nd quarter ended March 31, 2012, the stock rights granted in the 7th installment of the mid-term incentive plan (MTI) expired without any payment due to the decline of the average ThyssenKrupp EVA over the three-year performance period compared to the average EVA over the previous three fiscal year period. In the 1st half year ended March 31, 2012, the Group recorded expenses of € 1.4 million (1st half year ended March 31, 2011: €5.9 million) from the obligations of the mid-term and long-term incentive plans MTI and LTI; thereof income of €0.4 million (1st half year ended March 31, 2011: expense of €0.2 million) are presented in income/(loss) of discontinued operations. In the 2nd quarter ended March 31, 2012, these plans resulted in an expense of €11.2 million (2nd quarter ended March 31, 2011: €2.5 million); thereof no expenses are presented in income/(loss) of discontinued operations in the 2nd quarter ended March 31, 2012 and March 31, 2011, respectively.

In September 2010 the structure of the variable compensation for members of the Executive Board of ThyssenKrupp AG was modified. 25% of the performance bonus granted for the respective fiscal year and 55% of the additional bonus granted depending on the economic situation will be obligatorily converted into ThyssenKrupp AG stock rights to be paid out after a three-year lock-up period based on the average ThyssenKrupp share price in the 4th quarter of the 3rd fiscal year. In the 3rd quarter of 2010/2011 the structure of the variable compensation for additional executive employees was modified. 20% of the performance bonus granted for the respective fiscal year will be obligatorily converted into ThyssenKrupp AG stock rights to be paid out after a three-year lock-up period based on the average ThyssenKrupp share price in the 4th quarter of the 3rd fiscal year. This compensation item resulted in expenses of €4.4 million in the 1st half year ended March 31, 2012 (1st half year ended March 31, 2011: €2.0 million) and in expenses of €4.3 million in the 2nd quarter ended March 31, 2012 (2nd quarter ended March 31, 2011: €0.8 million).

05 Accrued pension and similar obligations

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, 2012, taking into account these effects while other assumptions remained unchanged.

million €

	Sept. 30, 2011	March 31, 2012
Accrued pension liability	6,007	6,316
Accrued postretirement obligations other than pensions	1,080	1,057
Other accrued pension-related obligations	210	155
Reclassification due to the presentation as liabilities
associated with assets held for sale	(357)	(292)
Total	6,940	7,236

The Group applied the following weighted average assumptions to determine pension and postretirement benefit obligations other than pensions:

in %

	Sept. 30, 2011		March 31, 2012
	Germany	Outside Germany	Germany	Outside Germany
Discount rate for accrued pension liability	5.00	4.41	4.20	4.09
Discount rate for postretirement obligations other than pensions (only USA)	—	4.75	—	4.25

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

million €

	1st half ended March 31, 2011		1st half ended March 31, 2012			2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012
	Germany	Outside Germany	Germany	Outside Germany	Germany	Outside Germany	Germany	Outside Germany
Service cost	39	18	38	17	19	9	19	9
Interest cost	125	51	134	45	63	25	67	22
Expected return on plan assets	(6)	(56)	(6)	(50)	(3)	(28)	(3)	(25)
Net periodic pension cost	158	13	166	12	79	6	83	6

The above presented net periodic pension cost for defined benefit plans in Germany include cost of €7 million in the 1st half year ended March 31, 2012 (1st half year ended March 31, 2011: €7 million) and of €4 million in the 2nd quarter ended March 31, 2012 (2nd quarter ended March 31, 2011: €4 million) attributable to discontinued operations. The above presented net periodic pension cost for defined benefit plans outside Germany include cost of €1 million in the 1st half year ended March 31, 2012 (1st half year ended March 31, 2011: €1 million) and of €1 million in the 2nd quarter ended March 31, 2012 (2nd quarter ended March 31, 2011: €1 million) attributable to discontinued operations.

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

million €
	1st half ended March 31, 2011	1st half ended March 31, 2012	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012
	USA/Canada	USA	USA/Canada	USA
Service cost	4	2	2	1
Interest cost	28	22	14	11
Expected return on reimbursement rights	(2)	(2)	(1)	(1)
Past service cost	(4)	(33)	(2)	(3)
Net periodic postretirement benefit cost/(income)	26	(11)	13	8

06 Issuance of a bond

In February 2012 ThyssenKrupp AG issued a 1.25 billion Euro bond documented under the existing 10 billion Euro Debt Issuance Programme. The bond has a five year maturity and carries a coupon of 4.375% at an issue price of 99.753%.

With this transaction ThyssenKrupp AG makes use of the good market environment and extends its maturity profile.

07 Contingencies including pending lawsuits and claims for damages

Guarantees

ThyssenKrupp AG as well as, in individual cases, its subsidiaries have issued or have had guarantees in favour of business partners or lenders. The following table shows obligations under guarantees where the principal debtor is not a consolidated Group company:

million €

	Maximum potential amount of future payments as of March 31, 2012	Provision as of March 31, 2012
Advance payment bonds	246	1
Performance bonds	166	1
Third party credit guarantee	44	0
Residual value guarantees	60	2
Other guarantees	35	0
Total	551	4

The terms of those guarantees depend on the type of guarantee and may range from three months to ten years (e.g. rental payment guarantees). The basis for possible payments under the guarantees is always the non-performance of the principal debtor under a contractual agreement, e.g. late delivery, delivery of non-conforming goods under a contract or non-performance with respect to the warranted quality or default under a loan agreement.

All guarantees are issued by or issued by instruction of ThyssenKrupp AG or subsidiaries upon request of the principal debtor obligated by the underlying contractual relationship and are subject to recourse provisions in case of default. If such a principal debtor is a company owned fully or partially by a foreign third party, the third party is generally requested to provide additional collateral in a corresponding amount.

Commitments and other contingencies

Due to the high volatility of iron ore prices, in the Steel Europe and Steel Americas business areas the existing long-term iron ore and iron ore pellets supply contracts are measured for the entire contract period at the iron ore prices applying as of the respective balance sheet date. Compared to September 30, 2011, the purchasing commitments were reduced by €8.3 billion to €20.1 billion due to the lower ore prices on a US dollar basis despite of the opposite effect of the slightly weaker Euro.

Pending lawsuits and claims for damages

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

There have been no significant changes since September 30, 2011 to other contingencies, including pending litigations.

08 Derivative financial instruments

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

million €

	Notional amount Sept. 30, 2011	Fair value Sept. 30, 2011	Notional amount March 31, 2012	Fair value March 31, 2012
Derivative financial instruments
Assets
Foreign currency derivatives including embedded derivatives	4,429	136	4,449	93
Interest rate derivatives*	299	5	308	7
Commodity derivatives	511	78	447	40
Total	5,239	219	5,204	140
Liabilities
Foreign currency derivatives including embedded derivatives	5,489	275	3,641	88
Interest rate derivatives*	750	35	1,122	30
Commodity derivatives	384	68	206	56
Total	6,623	378	4,969	174

* inclusive of cross currency swaps

09 Segment reporting

Segment information for the 1st half year ended March 31, 2011 and March 31, 2012 as well as for the 2nd quarter ended March 31, 2011 and March 31, 2012 is as follows:

million €

	Steel Europe	Steel Americas	Materials Services	Elevator Technology	Plant Technology	Components Technology	Marine Systems	Corporate	Stainless Global*	Consoli dation	Group
1st half ended March 31, 2011
External sales	5,156	249	6,616	2,565	1,844	3,361	721	33	3,091	0	23,636
Internal sales within the
Group	1,089	97	399	1	22	7	2	31	370	(2,018)	0
Total sales	6,245	346	7,015	2,566	1,866	3,368	723	64	3,461	(2,018)	23,636
EBIT	558	(697)	248	318	246	241	130	(199)	66	(141)	770
1st half ended March 31, 2012
External sales	4,461	770	6,324	2,670	1,917	3,629	586	32	2,904	0	23,293
Internal sales within the
Group	955	274	229	0	9	4	0	40	302	(1,813)	0
Total sales	5,416	1,044	6,553	2,670	1,926	3,633	586	72	3,206	(1,813)	23,293
EBIT	123	(518)	114	231	239	297	(55)	(218)	(624)	(174)	(585)
2nd quarter ended March 31, 2011
External sales	2,712	175	3,487	1,267	963	1,766	217	16	1,663	0	12,266
Internal sales within the Group	575	85	217	0	6	3	2	17	193	(1,098)	0
Total sales	3,287	260	3,704	1,267	969	1,769	219	33	1,856	(1,098)	12,266
EBIT	300	(319)	163	147	139	114	84	(111)	59	(79)	497
2nd quarter ended March 31, 2012
External sales	2,382	443	3,316	1,319	977	1,875	220	26	1,597	0	12,155
Internal sales within the Group	504	103	92	3	6	5	0	11	171	(895)	0
Total sales	2,886	546	3,408	1,322	983	1,880	220	37	1,768	(895)	12,155
EBIT	21	(230)	74	118	114	128	61	(119)	(303)	(92)	(228)

* Discontinued operation

Net sales and operating EBIT reconcile to EBT from continuing operations as presented in the consolidated statement of income as following:

million €
	1st half ended March 31, 2011	1st half ended March 31, 2012	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012
Sales as presented in segment reporting	23,636	23,293	12,266	12,155
- Sales of Stainless Global	(3,461)	(3,206)	(1,856)	(1,768)
+ Sales of Stainless Global to Group companies	370	302	193	171
+ Sales of Group companies to Stainless Global	155	120	77	55
Sales as presented in the statement of income	20,700	20,509	10,680	10,613

million €

	1st half ended March 31, 2011	1st half ended March 31, 2012	2nd quarter ended March 31, 2011	2nd quarter ended March 31, 2012
EBIT as presented in segment reporting	770	(585)	497	(228)
- Depreciation of capitalized borrowing costs eliminated in EBIT	(19)	(21)	(10)	(11)
+ Finance income	446	385	219	71
- Finance expense	(716)	(667)	(364)	(208)
- Items of finance income assigned to EBIT based on economic classification	(5)	(64)	(2)	(63)
- Items of finance expense assigned to EBIT based on economic classification	21	37	12	37
EBT - Group	497	(915)	352	(402)
- EBT of Stainless Global	(64)	641	(55)	311
EBT from continuing operations as presented in the statement of income	433	(274)	297	(91)

10 Cost of sales

Cost of sales for the 1st half year ended March 31, 2012, includes write-downs of inventories of €35 million which mainly relate to the Steel Europe and Materials Services business areas. As of September 30, 2011, write-downs amounted to €232 million. In the 1st half year ended March 31, 2011, cost of sales includes write-downs of inventories of €38 million which mainly relate to Steel Americas. In addition, income/(loss) from discontinued operations includes writedowns of inventories of €31 million in the 1st half year ended March 31, 2012 (1st half year ended March 31, 2011: €16 million).

11 Earnings per share

Basic earnings per share is calculated as follows:

	1st half ended March 31, 2011		1st half ended March 31, 2012		2nd quarter ended March 31, 2011		2nd quarter ended March 31, 2012
	Total amount in million €	Earnings per share in €	Total amount in million €	Earnings per share in €	Total amount in million €	Earnings per share in €	Total amount in million €	Earnings per share in €
Income/(loss) from continuing operations (net of tax) (attributable to ThyssenKrupp AG's stockholders)	371	0.80	(458)	(0.89)	239	0.51	(305)	(0.59)
Income/(loss) from discontinued operations (net of tax) (attributable to ThyssenKrupp AG's stockholders)	43	0.09	(589)	(1.14)	33	0.07	(282)	(0.55)
Net income/(loss) (attributable to ThyssenKrupp AG's stockholders)	414	0.89	(1,047)	(2.03)	272	0.58	(587)	(1.14)
Weighted average shares	464,463,095		514,489,044		464,531,852		514,489,044

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

Earnings per share have been calculated by dividing net income/(loss) attributable to common stockholders of ThyssenKrupp AG (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Shares sold during the period and shares reacquired during the period have been weighted for the portion of the period that they were outstanding.

In fiscal year 2010/2011 the weighted average number of outstanding shares was increased by the sale of treasury shares in February 2011 in the context of the Group's share purchase program, by the sale of treasury shares in May 2011 in the context of the employee share purchase and by the sale of treasury shares in the accelerated bookbuilding process to mainly institutional investors in July 2011.

There were no dilutive securities in the periods presented.

12 Additional information to the consolidated statement of cash flows

The liquid funds considered in the consolidated statement of cash flows correspond to the "Cash and cash equivalents" line item in the consolidated statement of financial position taking into account the cash and cash equivalents attributable to the disposal groups inclusive of discontinued operations.

Non-cash investing activities

In the 1st half year ended March 31, 2012, the acquisition and firsttime consolidation of companies created an increase in non-current assets of €65 million (1st half year ended March 31, 2011: €0 million). In the 2nd quarter ended March 31, 2012 these increases amounted to €3 million (2nd quarter ended March 31, 2011: €0 million).

The non-cash addition of assets under finance leases in the 1st half year ended March 31, 2012 amounted to €3 million (1st half year ended March 31, 2011: €15 million) and in the 2nd quarter ended March 31, 2012 to €1 (2nd quarter ended March 31, 2011: €2 million).

Non-cash financing activities

In the 1st half year ended March 31, 2012, the acquisition and firsttime consolidation of companies resulted in an increase in gross financial debt of €2 million (1st half year ended March 31, 2011: €0 million); in the 2nd quarter ended March 31, 2012 and March 31, 2011, respectively, there were no increases.

13 Subsequent events

In May 2012, Inoxum agreed with the relevant works council on a social plan in connection with the consolidation measures regarding the relocation of the Düsseldorf-Benrath facility and the connected personnel reduction. The social plan includes early retirement models and compensations for employees leaving Inoxum. Further, it includes compensations for employees being relocated. The social plan will apply accordingly to the planned closure of the Krefeld melt shop in the event the Inoxum transaction is completed. On the basis of a preliminary assessment the overall costs in connection with that social plan are expected to amount to approximately €60 million in the aggregate for Düsseldorf-Benrath and Krefeld.

Essen, May 10, 2012 ThyssenKrupp AG

The Executive Board

		Hiesinger
Berlien	Claassen	Eichler	Kerkhoff	Labonte

Review report of the half-year financial report

To ThyssenKrupp AG, Duisburg and Essen

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 October 1, 2011 to March 31, 2012 which form part of the quarterly financial report according to section 37w German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). The preparation of the condensed interim consolidated financial statements in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the German Securities Trading Act applicable to interim group management reports, is the responsibility of the Company's management. Our responsibility is to issue a report on the condensed interim consolidated financial statements and on the interim group management report based on our review.

We conducted our review of the condensed interim consolidated 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 accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material aspects, in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries 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 a financial statement audit, we cannot issue an auditor's report.

Based on our review, no matters have come to our attention that cause us to believe that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the regulations of the German Securities Trading Act applicable to interim group management reports.

Düsseldorf, May 10, 2012

KPMG AG Wirtschaftsprüfungsgesellschaft

Klaus Becker Michael Gewehr

(German Public Auditor) (German Public Auditor)

Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim reporting, the condensed interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit and loss of the Group, and the Group interim management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group in the remaining months of the fiscal year.

Essen, May 10, 2012

ThyssenKrupp AG

The Executive Board

Hiesinger

Berlien Claassen Eichler Kerkhoff Labonte

Report by the Supervisory Board Audit Committee

The interim report for the 1st half of fiscal year 2011/2012 (October 2011 to March 2012) 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 14, 2012 and explained by the Executive Board and the auditors. The Audit Committee approved the interim report.

Essen, May 14, 2012

Chairman of the Audit Committee Prof. Dr. Bernhard Pellens

Contact and 2012/2013 dates

For more information please contact:

Corporate Communications

Telephone +49 201 844-536043 Fax +49 201 844-536041 E-mail press@thyssenkrupp.com

Investor Relations E-mail ir@thyssenkrupp.com

Institutional investors and analysts

Telephone +49 201 844-536464 Fax +49 201 8456-531000

Private investors

Infoline +49 201 844-538382 Fax +49 201 8456-531000

Address

ThyssenKrupp AG ThyssenKrupp Allee 1, 45143 Essen, Germany P.O. Box, 45063 Essen, Germany Telephone +49 201 844-0 Fax +49 201 844-536000 E-mail info@thyssenkrupp.com

2012/2013 dates

August 10, 2012 Interim report 9 months 2011/2012 (October to June) Conference call with analysts and investors

November 22, 2012 Annual Press Conference Conference call with analysts and investors

January 18, 2013 Annual General Meeting

February 12, 2013 Interim report 1st quarter 2012/2013 (October to December) Conference call with analysts and investors

May 15, 2013

Interim report 1st half 2012/2013 (October to March) Conference call with analysts and investors

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.

Rounding differences and rates of change

Percentages and figures in this report may include rounding differences. The signs used to indicate rates of change are based on economic aspects: Improvements are indicated by a plus (+) sign, deteriorations are shown in brackets ( ). Very high positive and negative rates of change (≥1,000% or ≤(100)%) are indicated by ++ and −− respectively.

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.

ThyssenKrupp AG ThyssenKrupp Allee 1 45143 Essen, Germany www.thyssenkrupp.com