engineering. tomorrow.

together. Interim report 1st half 2016/2017 October 1, 2016 – March 31, 2017 thyssenkrupp AG

thyssenkrupp in figures

GROUP TOTAL

		1st half ended March 31, 2016	1st half ended March 31, 2017	Change	in %	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	Change	in %
Order intake	million €	18,837	21,948	3,111	17	9,027	11,993	2,966	33
Net sales	million €	19,400	21,084	1,684	9	9,852	10,998	1,146	12
EBIT 1'n	million €	474	'n324Ŋ	ň798'n	--	281	'n564Ŋ	ň846'n	--
EBIT margin	%	2.4	'n1.5Ŋ	ň4.0'n	—	2.9	'n5.1Ŋ	ň8.0'n	—
Adjusted EBIT 1'n	million €	560	756	196	35	326	427	101	31
Adjusted EBIT margin	%	2.9	3.6	0.7	—	3.3	3.9	0.6	—
EBT	million €	185	'n580Ŋ	ň765'n	--	151	'n703Ŋ	ň855'n	--
Net income/ňloss'n	million €	ň9'n	'n855Ŋ	ň846'n	--	45	'n870Ŋ	ň915'n	--
attributable to thyssenkrupp AG's shareholders	million €	37	'n871Ŋ	ň909'n	--	61	'n879Ŋ	ň940'n	--
Earnings per shareňEPS'n	€	0.07	'n1.54Ŋ	ň1.61'n	--	0.11	'n1.55Ŋ	ň1.66'n	--
Operating cash flows	million €	ň703'n	'n1,340Ŋ	ň636'n	ň90'n	ň105'n	110	215	++
Cash flow for investments	million €	ň546'n	'n726Ŋ	ň180'n	ň33'n	ň293'n	'n364Ŋ	ň71'n	ň24'n
Cash flow from divestments	million €	31	59	27	88	27	38	12	45
Free cash flow	million €	ň1,218'n	'n2,007Ŋ	ň789'n	ň65'n	ň371'n	'n216Ŋ	156	42
Free cash flow before M&A	million €	ň1,212'n	'n1,949Ŋ	ň737'n	ň61'n	ň365'n	'n212Ŋ	153	42
Net financial debtňMarch 31'n	million €	4,816	5,760	945	20	4,816	5,760	945	20
Total equityňMarch 31'n	million €	2,753	2,304	ň450'n	ň16'n	2,753	2,304	ň450'n	ň16'n
GearingňMarch 31'n	%	174.9	250.0	75.1	—	174.9	250.0	75.1	—
EmployeesňMarch 31'n		155,453	158,584	3,131	2	155,453	158,584	3,131	2

¹^{&# | Adjusted EBIT 1Ŋ
x27;n See reconciliation in segment reportingňNote 07'n.}

thyssenkrupp interim report 1st half 2016 / 2017 thyssenkrupp in figures

CONTINUING OPERATIONS

		1st half ended March 31, 2016	1st half ended March 31, 2017	Change	in %	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	Change	in %
Order intake	million €	18,282	21,244	2,962	16	8,791	11,643	2,852	32
Net sales	million €	18,827	20,335	1,508	8	9,588	10,617	1,029	11
EBIT	million €	618	501	ň118'n	ň19'n	341	313	ň29'n	ň8'n
EBIT margin	%	3.3	2.5	ň0.8'n	—	3.6	2.9	ň0.6'n	—
Adjusted EBIT	million €	699	703	4	1	390	412	22	6
Adjusted EBIT margin	%	3.7	3.5	ň0.3'n	—	4.1	3.9	ň0.2'n	—
EBT	million €	338	283	ň55'n	ň16'n	206	208	2	1
Income/ňloss'nňnet of tax'n	million €	162	58	ň104'n	ň64'n	108	64	ň44'n	ň41'n
attributable to thyssenkrupp AG's shareholders	million €	141	42	ň99'n	ň70'n	97	55	ň42'n	ň43'n
Earnings per shareňEPS'n	€	0.25	0.07	ň0.18'n	ň72'n	0.17	0.10	ň0.07'n	ň41'n
Operating cash flows	million €	ň595'n	'n1,281Ŋ	ň686'n	--	ň67'n	170	237	++
Cash flow for investments	million €	ň491'n	'n634Ŋ	ň143'n	ň29'n	ň267'n	'n346Ŋ	ň79'n	ň30'n
Cash flow from divestments	million €	31	54	23	77	26	34	8	32
Free cash flow 1'n	million €	ň1,055'n	'n1,861Ŋ	ň806'n	ň76'n	ň308'n	'n142Ŋ	166	54
Free cash flow before M&A 1'n	million €	ň1,049'n	'n1,858Ŋ	ň809'n	ň77'n	ň302'n	'n139Ŋ	163	54
EmployeesňMarch 31'n		151,682	154,431	2,749	2	151,682	154,431	2,749	2

^{1olidation | ň494'n | 'n587Ŋ | ň445'n | 'n555Ŋ | 6 | 'n8Ŋ | 8 | 'n8Ŋ |

| Continuing operations | 8,791 | 11,643 | 9,588 | 10,617 | 341 | 313 | 390 | 412 |

| Steel Americas | 286 | 440 | 325 | 470 | ň61'n | 'n878Ŋ | ň65'n | 14 |

| Consolidation | ň50'n | 'n90Ŋ | ň61'n | 'n90Ŋ | 1 | 0 | 0 | 0 |

| Group Total | 9,027 | 11,993 | 9,852 | 10,998 | 281
'nSee reconciliation in the analysis of the statement of cash flows.}

In the context of the Strategic Way Forward, thyssenkrupp reached agreement with Ternium in February 2017 on the sale of the Brazilian steel mill CSA. The sale is subject to the approval of the competition authorities and is planned to be completed by September 30, 2017. The transaction meets the criteria of IFRS 5 for reporting the Steel Americas business area as a discontinued operation.

thyssenkrupp interim report 1st half 2016 / 2017 thyssenkrupp in figures

BUSINESS AREAS

	Order intake million €		Net sales million €		EBIT 1Ŋ million €		Adjusted EBIT 1Ŋ million €		Employees
	1st half ended March 31, 2016	1st half ended March 31, 2017	1st half ended March 31, 2016	1st half ended March 31, 2017	1st half ended March 31, 2016	1st half ended March 31, 2017	1st half ended March 31, 2016	1st half ended March 31, 2017	March 31, 2016	March 31, 2017
Components Technology	3,318	3,738	3,338	3,678	146	124	157	176	30,118	31,770
Elevator Technology	3,824	4,014	3,621	3,749	364	352	390	422	51,532	52,378
Industrial Solutions	2,174	3,118	3,115	2,761	242	33	244	64	19,575	19,349
Materials Services	5,768	6,814	5,827	6,681	2	131	13	173	19,791	19,800
Steel Europe	4,029	4,521	3,649	4,279	106	116	115	119	27,368	27,400
Corporate	93	93	114	125	ň255'n	ň243'n	ň234'n	ň239'n	3,298	3,734
Consolidation	ň923'n	ň1,055'n	ň837'n	ň938'n	14	ň11'n	14	ň11'n
Continuing operations	18,282	21,244	18,827	20,335	618	501	699	703	151,682	154,431
Steel Americas	657	873	675	917	ň145'n	ň826'n	ň139'n	51	3,771	4,153
Consolidation	ň102'n	ň168'n	ň102'n	ň168'n	0	1	0	1	0	0
Group Total	18,837	21,948	19,400	21,084	474	Ŋ324ŋ	560	756	155,453	158,584

^{1yssenkrupp in figures**}

Interim management report

Report on the economic position
Summary
Macro and sector environment
Group and business area review
Results of operations and financial position
Compliance
Employees
Technology and innovations
Subsequent events
Forecast, opportunity and risk report
2016 / 2017 forecast
Opportunities and risks

Condensed interim financial statements

Consolidated statement of financial position
Consolidated statement of income
Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated statement of cash flows
Selected notes to the consolidated financial statements
Review report
Responsibility statement

Our fiscal year begins on October 1 and ends on September 30 of the following year.

Additional information

Contact and 2017 / 2018 financial calendar

Interim management report

Report on the economic position

Summary

Positive trend continued in 2nd quarter: Strategic Way Forward with pleasing progress in Group transformation and growth

Important milestone reached in transformation into strong industrial group: Sale of Brazilian steel mill CSA to Ternium concluded Steel Americas exit
Purchase price €1.5 billionňenterprise value'n; with closing of the transaction, corresponding reduction in net financial debt and clear reduction in complexity and volatility
This transaction leads to a negative income effect of around €0.9 billion in the 2nd quarter; improvement in gearing on closing
Signing took place in February 2017, transfer to take retroactive effect from September 30, 2016
Sale subject to the approval of the competent competition authorities; aim is to close the transaction by September 30, 2017, until which time Steel Americas will be reported as a discontinued operation
Continuing operations on growth track: order intake and sales clearly up year-on-year
All capital goods businesses and all materials businesses with double-digit growth rates in 2ndquarter order intake; Components Technology and Elevator Technology with new record highs, Industrial Solutions with highest orders in three years
Capital goods businesses overall and all materials businesses with sales growth
€450 million EBIT effects from "impact" increase efficiency in 1st half
Group and continuing operations with adjusted EBIT higher year-on-year
Group's net income in reporting period impacted by negative earnings effect at Steel Americas
As expected, free cash flow of Group and continuing operations temporarily clearly negative due to increase in net working capital, but already showing clear quarter-on-quarter and year-on-year improvement in 2nd quarter
Full-year forecast revised on account of good operating performance and dislocations on the raw material marketsňsee forecast report'n

Macro and sector environment

Global economic growth will accelerate slightly in 2017 – outlook remains marked by great uncertainty

Compared with start of fiscal year, further stabilization of global economy despite high political uncertainty
Industrialized countries: Continued, slightly faster upturn thanks to continuing expansionary monetary policy and hope of fiscal support in the USA
Emerging economies: Increasing momentum, in part due to higher raw material prices and end of recession in Brazil and Russia

■ But risks and uncertainties for global economy remain exceptionally highňgeopolitical flashpoints, impact of new US economic policy and interest rate liftoff in USA, Brexit negotiations, elections in major EU member states, volatility of oil and raw material prices, high volatility in Chinese financial and real estate sectors'n

GROSS DOMESTIC PRODUCT

Real change compared to previous year in %	2016	20171ŋ
Euro zone	1.7	1.5
Germany	1.9	1.5
Russia	ň0.2'n	1.0
Rest of Central/Eastern Europe	2.4	2.7
USA	1.6	2.3
Brazil	ň3.6'n	0.3
Japan	1.0	1.1
China	6.7	6.5
India	7.0	7.2
Middle East & Africa	2.4	2.9
World	2.9	3.3

^{^'n See reconciliation in segment reportingňNote 07'n.}

	Order intake million €		Net sales million €		EBIT million €		Adjusted EBIT 1Ŋ million €
	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017
Components Technology	1,669	1,979	1,688	1,936	76	66	86	101
Elevator Technology	1,832	2,111	1,752	1,868	171	168	186	207
Industrial Solutions	644	1,959	1,609	1,282	152	20	153	23
Materials Services	2,922	3,683	3,005	3,649	3	93	10	121
Steel Europe	2,183	2,442	1,925	2,371	56	91	65	92
Corporate	36	56	54	67	ň122'n	'n117Ŋ	ň117'n	'n123Ŋ
Consolidation	ň494'n	'n587Ŋ	ň445'n	'n555Ŋ	6	'n8Ŋ	8	'n8Ŋ
Continuing operations	8,791	11,643	9,588	10,617	341	313	390	412
Steel Americas	286	440	325	470	ň61'n	'n878Ŋ	ň65'n	14
Consolidation	ň50'n	'n90Ŋ	ň61'n	'n90Ŋ	1	0	0	0
Group Total	9,027	11,993	9,852	10,998	281	Ŋ564ŋ	326	427

¹^'n See reconciliation in segment reportingňNote 07'n.

THYSSENKRUPP STOCK / ADR MASTER DATA AND KEY FIGURES

ISIN		Number of sharesňtotal'n	shares	565,937,947
SharesňFrankfurt, Düsseldorf stock exchanges'n	DE 000 750 0001	Closing price end March 2017	€	22.96
ADRsňover-the-counter trading'n	US88629Q2075	Stock exchange value end March 2017	million €	12,993
Symbols
Shares	TKA
ADRs	TKAMY

thyssenkrupp interim report 1st half 2016 / 2017 Contents

thyssenkrupp in figures

Interim management report

Report on the economic position
Summary
Macro and sector environment
Group and business area review
Results of operations and financial position
Compliance
Employees
Technology and innovations
Subsequent events
Forecast, opportunity and risk report
2016 / 2017 forecast
Opportunities and risks

Condensed interim financial statements

Consolidated statement of financial position
Consolidated statement of income
Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated statement of cash flows
Selected notes to the consolidated financial statements
Review report
Responsibility statement

Our fiscal year begins on October 1 and ends on September 30 of the following year.

Additional information

Contact and 2017 / 2018 financial calendar

Interim management report

Report on the economic position

Summary

Positive trend continued in 2nd quarter: Strategic Way Forward with pleasing progress in Group transformation and growth

Important milestone reached in transformation into strong industrial group: Sale of Brazilian steel mill CSA to Ternium concluded Steel Americas exit
Purchase price €1.5 billionňenterprise value'n; with closing of the transaction, corresponding reduction in net financial debt and clear reduction in complexity and volatility
This transaction leads to a negative income effect of around €0.9 billion in the 2nd quarter; improvement in gearing on closing
Signing took place in February 2017, transfer to take retroactive effect from September 30, 2016
Sale subject to the approval of the competent competition authorities; aim is to close the transaction by September 30, 2017, until which time Steel Americas will be reported as a discontinued operation
Continuing operations on growth track: order intake and sales clearly up year-on-year
All capital goods businesses and all materials businesses with double-digit growth rates in 2ndquarter order intake; Components Technology and Elevator Technology with new record highs, Industrial Solutions with highest orders in three years
Capital goods businesses overall and all materials businesses with sales growth
€450 million EBIT effects from "impact" increase efficiency in 1st half
Group and continuing operations with adjusted EBIT higher year-on-year
Group's net income in reporting period impacted by negative earnings effect at Steel Americas
As expected, free cash flow of Group and continuing operations temporarily clearly negative due to increase in net working capital, but already showing clear quarter-on-quarter and year-on-year improvement in 2nd quarter
Full-year forecast revised on account of good operating performance and dislocations on the raw material marketsňsee forecast report'n

Macro and sector environment

Global economic growth will accelerate slightly in 2017 – outlook remains marked by great uncertainty

Compared with start of fiscal year, further stabilization of global economy despite high political uncertainty
Industrialized countries: Continued, slightly faster upturn thanks to continuing expansionary monetary policy and hope of fiscal support in the USA
Emerging economies: Increasing momentum, in part due to higher raw material prices and end of recession in Brazil and Russia

GROSS DOMESTIC PRODUCT

Real change compared to previous year in %	2016	20171ŋ
Euro zone	1.7	1.5
Germany	1.9	1.5
Russia	ň0.2'n	1.0
Rest of Central/Eastern Europe	2.4	2.7
USA	1.6	2.3
Brazil	ň3.6'n	0.3
Japan	1.0	1.1
China	6.7	6.5
India	7.0	7.2
Middle East & Africa	2.4	2.9
World	2.9	3.3

¹^'n Forecast

Sources: IHS Markit, Oxford Economics, national associations, own estimates

Automotive

Continued slight growth in global sales and production of cars and light trucks in 2017 from high prior-year level
Europe: Impact of Brexit very small to date
NAFTA: Uncertainties about impact of new US economic policy on regional and international supply chains
China: Sales and production of cars with double-digit growth in 2016, benefiting in part from pull-forward effects due to reduced tax breaks; further growth expected in 2017 with reduced government incentives
Heavy trucks: Further increase in global production expected for 2017, driven by Asian markets, particularly China; Europe stable; NAFTA Class 8 remains weak, turnaround expected end of 2017

Machinery

Germany: Forecast for 2017 raised slightly, in particular demand from abroad expected to increase
USA: Low investment in oil and gas production ended
China: Growth in 2017 to slow faster than expected at start of fiscal year; lower government fiscal incentives for infrastructure and state-owned companies; however, planned transformation to high-tech nation should keep growth at a solid level

Construction

Germany: Further slight increase in growth expected in 2017; driver remains housing construction, but public sector and commercial construction also solid
USA: Continued solid growth, potential additional stimulus from new administration's fiscal measures
China and India: In China government measures to cool down real estate market taking effect in 2017; continuing urbanization to provide further important impetus in India

IMPORTANT SALES MARKETS

	2016	20171ŋ
Vehicle production, million cars and light trucks
World	90.8	92.1
Western Europeňincl. Germany'n	14.6	14.7
Germany	5.9	5.7
USA	12.0	11.2
Mexico	3.5	4.1
Japan	8.8	9.0
China	27.0	27.7
India	4.1	4.3
Brazil	2.0	2.2
Machinery production, real, in % versus prior year
Germany	0.1	1.0
USA	ň2.7'n	3.4
Japan	ň1.5'n	0.9
China	4.5	3.8
Construction output, real, in % versus prior year
Germany	1.0	2.5
USA	4.5	5.8
China	6.6	4.6
India	2.7	5.5

¹^'n Forecast

Steel

Global finished steel demand continuing to increase slightly in 2017; growth focused on emerging economies, with stagnation expected for China
EU carbon flat steel market up slightly year-on-year in first two months of 2017 with imports again showing higher growth overall: slight decline in volumes from China, but significantly higher imports from other third countries
Market environment remains extremely challenging, particularly on account of global overcapacities and highly volatile raw material prices

Group and business area review

Order intake, sales and adjusted EBIT up year-on-year in continuing operations

ORDER INTAKE BY BUSINESS AREA

million $\epsilon$	1st half ended March 31, 2016	1st half ended March 31, 2017	Change in %	Change on a comparable basis ¹⁾ in $%$	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	Change in %	Change on a comparable basis ¹ in $%$
Components Technology	3,318	3,738	13	12	1,669	1,979	19	17
Elevator Technology	3,824	4,014	5	4	1,832	2,111	15	12
Industrial Solutions	2,174	3,118	43	43	644	1,959	204	204
Materials Services	5,768	6,814	18	17	2,922	3,683	26	25
Steel Europe	4,029	4,521	12	12	2,183	2,442	12	12
Corporate	93	93			36	56	55	55
Consolidation	(923)	(1,055)			(494)	(587)
Order intake of the continuing operations	18,282	21,244	16	15	8,791	11,643	32	31
Steel Americas	657	873	33		286	440	54
Consolidation	(102)	(168)			(50)	(90)
Order intake of the Group	18,837	21,948	17		9,027	11,993	33

¹⁾ Excluding material currency and portfolio effects

Order intake in all capital goods businesses was clearly higher year-on-year in the 1st half and 2nd quarter, supported partly by positive exchange-rate effects.

Components Technology

Car components: Growth in particular in axle assembly, damping systems and camshaft modules; continued high demand in China and positive trend in Western Europe more than offset slowdown in the USA and continuing weak demand in Brazil
Components for heavy trucks: Market improvement in China, Europe solid, slight upturn in USA in 2nd quarter, Brazil still weak
Industrial components: After subdued 1st quarter, growth in demand for wind energy and machinery components and slight recovery in construction equipment components in 2nd quarter

Elevator Technology

Order intake and orders in hand at new record high (€5.4 billion excl. service), driven by major projects and supported by positive exchange rate effects
Positive trend in Europe (particularly Germany and Turkey due to infrastructure projects); China level with prior year despite high price pressure; USA level with prior year after good 2nd quarter

Industrial Solutions

Clear year-on-year increase in 1st half; highest order intake in three years in 2nd quarter confirms turnaround in order intake and strong project pipeline
Marine Systems: Strong 1st half thanks to major submarine order in 2nd quarter; nominated as exclusive strategic partner for Norwegian/German submarine program
Cement plants: Medium-size order in Algeria in 1st quarter and pleasing demand for expansion contracts
In Mining: Medium-size and smaller orders clearly higher year-on-year (incl. belt conveyor systems, bucket wheel excavators, and coal handling facility in Asia as well as biomass power plant in Australia)
Chemical plant engineering: Major projects at advanced stage of negotiation
System Engineering: Several orders for body-in-white lines and test systems from leading German OEMs in Europe and Asia; but temporary decline overall with full-year outlook remaining positive

Orders in the materials businesses Materials Services and Steel Europe were clearly up year-on-year in a volatile environment thanks in particular to higher prices, with significantly increased spot prices on materials markets.

Steel Americas (discontinued operation) clearly up from prior-year due to higher prices.

million $\epsilon$	1st half ended March 31. 2016	1st half ended March 31, 2017	Change in %	Change on a comparable basis ¹ in $%$	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	Change in %	Change on a comparable basis ¹⁾ in $%$
Components Technology	3,338	3,678	10	9	1,688	1,936	15	13
Elevator Technology	3,621	3,749	4	2	1,752	1,868		4
Industrial Solutions	3,115	2,761	(11)	(12)	1,609	1,282	(20)	(21)
Materials Services	5,827	6,681	15	14	3,005	3,649	21	20
Steel Europe	3,649	4,279	17	17	1,925	2,371	23	23
Corporate	114	125	9	9	54	67	24	23
Consolidation	(837)	(938)			(445)	(555)
Sales of the continuing operations	18,827	20,335	8	7	9,588	10,617	11	9
Steel Americas	675	917	36		325	470	44
Consolidation	(102)	(168)			(61)	(90)
Sales of the Group	19,400	21,084	9		9,852	10,998	12

NET SALES BY BUSINESS AREA

¹⁾ Excluding material currency and portfolio effects

Overall sales in the capital goods businesses were slightly higher year-on-year.

Rising sales at Components Technology (particularly for auto components) and Elevator Technoloqy (particularly positive trend in the USA, China and Korea) outweighed declining sales at Industrial Solutions (lower number of milestone billings in plant engineering and at Marine Systems)

The materials businesses Materials Services and Steel Europe increased their sales significantly year-on-year due to higher volumes and prices

Materials Services

Continuation of price recovery in almost all product segments, but with decreasing momentum in parts
Overall materials volumes higher year-on-year (4.9 million tons shipments; up 3%)
Stable warehousing and service business; significant growth at auto-related service centers, in particular also due to new service centers in Hungary and Spain
Gains in global materials trading
Gains at AST due to higher volumes and prices
Raw material trading volumes down from 1.6 million tons to 0.6 million tons; stronger focus on higher-value, higher-margin products

Steel Europe

Higher sales due to higher average net selling prices and rising shipments (5.7 million tons; up 10%), but lower volumes in grain-oriented electrical steel and heavy plate
Selling prices rising significantly over the course of the reporting period, also higher year-on-year on average for the 1st half

Steel Americas (discontinued operation) achieved higher sales due to higher prices, with shipments temporarily lower (2.0 million tons; down 9%).

million $\epsilon$	1st half ended March 31, 2016	1st half ended March 31, 2017	Change in %	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	Change in %
Components Technology	157	176	12	86	101	18
Elevator Technology	390	422	8	186	207	11
Industrial Solutions	244	64	(74)	153	23	(85)
Materials Services	13	173	$^{++}$	10	121	$^{++}$
Steel Europe	115	119	3	65	92	42
Corporate	(234)	(239)	(2)	(117)	(123)	(6)
Consolidation	14	(11)		8	(8)
Adjusted EBIT of the continuing operations	699	703	1	390	412	6
Steel Americas	(139)	51	$^{++}$	(65)	14	$++$
Consolidation	0			$\Omega$	0
Adjusted EBIT of the Group 1)	560	756	35	326	427	31

ADJUSTED EBIT BY BUSINESS AREA

¹⁾ See reconciliation in segment reporting (Note 07).

In the capital goods businesses as a whole adjusted EBIT was lower year-on-year despite sustainable efficiency and cost reduction measures.

Continued growth at Components Technology and Elevator Technology could not offset decline at Industrial Solutions

Components Technology

Adjusted EBIT again higher year-on-year
Improvements in car components outweighed declines in industrial components; margin slightly higher year-on-year at 4.8% in 1st half and 5.2% in 2nd quarter

Elevator Technology

Adjusted EBIT and margin in 2nd quarter higher year-on-year for the 18th quarter in succession
Margin at 11.3% in 1st half and 11.1% in 2nd quarter 0.5 points higher year-on-year thanks to performance program

Industrial Solutions

■ Adjusted EBIT down sharply year-on-year, reflecting lower sales and lower-margin project milestones as well as partial underutilization

In the materials businesses Materials Services and Steel Europe adjusted EBIT was significantly higher year-on-year overall, also supported by cost-saving programs.

Materials Services

Positive price trend and continued earnings-securing measures led to strong earnings improvement in all units
AST with significantly higher earnings contribution, reflecting further sustainable restructuring success as well as positive price trend

Steel Europe

1st half earnings higher year-on-year mainly due to higher volumes; particularly in the 1st quarter sharply rising raw material costs plus earnings impact of blast furnace reline at HKM
Significant earnings improvement in 2nd quarter, both quarter-on-quarter and year-on-year, primarily due to higher selling prices

At Corporate adjusted EBIT was largely unchanged year-on-year and continues to include project expenditures in connection with the digital initiatives for IT infrastructure standardization and data and process harmonization.

At Steel Americasňdiscontinued operation'n the positive price trend, cost reduction measures and valuation effects on input tax credits outweighed lower shipments and higher raw material costs and negative cost effects from the stronger Brazilian real.

Earnings impacted by special items

SPECIAL ITEMS BY BUSINESS AREA

million $\epsilon$	1st half ended March 31, 2016	1st half ended March 31, 2017	Change	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	Change
Components Technology	10	52	42	10	35	25
Elevator Technology	26	71	45	16	39	24
Industrial Solutions	$\overline{2}$	32	30		3	1
Materials Services	12	41	29	7	28	21
Steel Europe	10	3	(7)	9		(8)
Corporate	21	4	(17)	6	(7)	(12)
Consolidation	0	$\Omega$		0	0
Special items from continuing operations	81	203	122	49	99	50
Steel Americas	5	877	872	(4)	892	897
Consolidation	0	$\Omega$		$\Omega$	$\Omega$
Total special items	86	1,080	994	45	991	947

$\blacksquare$ Main special items in the reporting period:

Components Technology: restructurings and capacity adjustments at Forging & Machining due to weak market and order situation in Brazil, in "heavy crankshafts" in Germany and construction equipment components in Italy, as well as non-period expenses in steering systems business
Elevator Technology: restructuring and reorganization in Europe and the Middle East
Industrial Solutions: restructuring of chemical plant construction and reorganization
Materials Services: several restructuring measures, winding-up of railway equipment
Steel Americas (discontinued operation): updated valuation of a long-term freight contract; negative earnings effect in connection with sale of CSA

Results of operations and financial position

Analysis of the statement of income

Income from operations

Growth in cost of sales of continuing operations slightly higher than growth in net sales; gross profit margin of continuing operations down year-on-year to 16.5%
Increase in selling expenses of continuing operations mainly due to higher expenses for salesrelated freight and insurance charges and increased restructuring expenses
Increase in general and administrative expenses of continuing operations resulting mainly from higher personnel expenses, due in part to increased restructuring provisions, and higher consulting and IT costs
Deterioration in other gains/losses of continuing operations mainly influenced by losses on the disposal of non-current assets in the reporting half

Financial income/expense and income tax

Decrease in finance income mainly due to lower exchange rate gains in connection with financial transactions alongside higher income from derivatives in connection with financing
Net decrease in finance expense mainly due to lower exchange rate losses in connection with financial transactions and lower interest expense for financial debt and pensions alongside higher expenses from derivatives in connection with financing
Tax expense as in the prior year affected by non-recognition of deferred tax assets for current losses at individual Group companies

Earnings per share

Net income down sharply by €846 million to loss of €855 million mainly due to impact on income from discontinued operations in the reporting period due to impairment charges in connection with the initiated sale of the Brazilian steel mill CSA to Ternium
Improvement in non-controlling interest mainly due to takeover of minority interest in thyssenkrupp CSA in 3rd quarter of fiscal 2015 / 2016
Large decrease in earnings per share to loss of €1.54

Analysis of the statement of cash flows

Operating cash flows

Operating cash flows from continuing operations positive and higher year-on-year in 2nd quarter mainly due to improvement in operating assets and liabilities, but negative and sharply down year-on-year in 1st half due to net increase in operating assets and liabilities
Volume recovery and strong rise in materials prices in the materials businesses
Working down of existing orders and temporary shift in payment profile at Industrial Solutions

Cash flows from investing activities

Capital spending at continuing operations at prior-year level or higher in all business areas in 1st half; share of capital goods businesses in continuing operations up to 53%
Modernization of IT and harmonization of systems landscape at all business areas and Corporate to enhance efficiency, lower costs and as a basis for Industry 4.0

million €	1st half ended March 31, 2016	1st half ended March 31, 2017	Change in %	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017	Change in %
Components Technology	163	227	40	84	136	62
Elevator Technology	56	76	37	35	41	15
Industrial Solutions	33	32	ň3'n	18	15	ň17'n
Materials Services	44	43	ň3'n	30	24	ň20'n
Steel Europe	175	240	37	89	119	33
Corporate	22	25	15	11	19	68
Consolidation	ň2'n	'n12Ŋ	—	ň2'n	'n9Ŋ	—
Investments of the continuing operations	491	634	29	267	346	30
Steel Americas	55	92	67	25	18	ň26'n
Consolidation	0	0	—	1	0	—
Total investments	546	726	33	293	364	24

Components Technology

Building of highly automated plants in growth region China following new orders from international and Chinese OEMs for electric steering systems, springs and stabilizers
Expansion of production in Hungary: cylinder head covers with integrated camshafts, front and rear axle assembly, production of springs and stabilizers and electric steering systems

Elevator Technology

China: new elevator plant in Zhongshan in production, shell of 249 m high test tower at same location completed in March
India: Ramp-up of elevator manufacturing in Pune on schedule
Germany: further progress on construction of 246 m high test tower in Rottweil, opened for research in December

Industrial Solutions

Cement and Mining: expansion of infrastructure and optimization of technology portfolio to strengthen market position
Chemical plant construction: continued investment in optimization of technology portfolio
System Engineering: continued growth and international expansion in forming dies
Marine Systems: further implementation of modernization program at Kiel shipyard ňcurrently mainly IT and infrastructure'n

Materials Services

■ Modernization and maintenance measures at warehousing and service units and AST

Steel Europe

Reline of blast furnace B at HKM
New ladle furnace at BOF meltshop 2 to produce high-quality grades as part of focus on premium products, in particular ultrahigh-strength steels for the auto industry; project started last fiscal year

Corporate

Investments for the Carbon2Chem project
Centrally pooled property investments and license purchases

At Steel Americas (discontinued operation) investments included the insourcing of water and effluent treatment services with the acquisition of two Brazilian companies as well as environmental protection and technical optimization measures.

The slight increase in cash inflows from divestments at the continuing operations was mainly the result of proceeds in the reporting half from the disposal of German property classified as nonoperating real estate.

Cash flows from financing activities

Increase in cash flows from financing activities at the continuing operations mainly due to higher proceeds from borrowings in the reporting period compared with the prior year; offsetting effects mainly due to increased expenditures for the financing of discontinued operations and repayments in the reporting period of currency and cross currency swaps in connection with Group financing

Free cash flow and net financial debt

RECONCILIATION TO FREE CASH FLOW BEFORE M&A

1st half ended March 31. 2016	1st half ended March 31. 2017	Change	2nd quarter ended March 31. 2016	2nd quarter ended March 31, 2017	Change
(595)	(1,281)	(686)	(67)	170	237
(461)	(580)	(120)	(241)	(312)	(71)
(1,055)	(1,861)	(806)	(308)	(142)	166
6	3	(3)	6	3	(3)
(1,049)	(1,858)	(809)	(302)	(139)	163
(163)	(91)	72	(63)	(74)	(11)
(1,212)	(1,949)	(737)	(365)	(212)	153

FCF before M&A of continuing operations and of Groupň€ň1,949'nmillion, prior year €ň1,212'nmillion'n as expected down from prior year in the 1st half due mainly to higher negative operating cash flows
Net financial debt correspondingly up at March 31, 2017 to €5,760 million; includes €85 million dividend payment of thyssenkrupp AG
Ratio of net financial debt to equity ňgearing'n at 250.0% higher than at September 30, 2016 ň134.2%'n
Available liquidity of €6.6 billionň€3.0 billion cash and cash equivalents and €3.6 billion undrawn committed credit lines'n
Under the existing commercial paper program with a maximum emission volume of €1.5 billion, €1.0 billion had been drawn at March 31, 2017

Financing measure carried out successfully

■ Placement of a €1,250 million bond in March 2017; maturity 5 years; coupon 1.375% p.a.

Rating

RATING

	Long-term rating	Short-term rating	Outlook
Standard & Poor's	BB	B	stable
Moody's	Ba2	Not Prime	stable
Fitch	BB+	B	stable

Analysis of the statement of financial position

Non-current assets

Increase in intangible assets mainly exchange rate related
Decrease in property, plant and equipment and other non-financial assets mainly due to reclassifications to assets held for sale as a result of classification of Steel Americas as discontinued operation
Decrease in deferred tax assets mainly the result of interest rate changes for pension obligations at March 31, 2017

Current assets

Net increase in current assets mainly due to increase in assets held for sale as a result of classification of Steel Americas as discontinued operation
Increase in inventories and trade accounts receivable, both mainly due to significant rise in capital employed at the continuing materials operations; at the same time decreases mainly due to reclassifications to assets held for sale
Rise in other non-financial assets mainly the result of higher advance payments; at the same time decreases in entitlements in connection with non-income taxes due to reclassifications to assets held for sale
Significant decrease in cash and cash equivalents: mainly the result of negative free cash flow from continuing operations in the reporting period and financing of Steel Americas business area now classified as discontinued operation; offset by proceeds from borrowings

Total equity

Net decrease mainly due to net loss for the reporting period
At the same time increases mainly due to gainsňafter taxes'nrecognized in other comprehensive income from the remeasurement of pensions and similar obligations as a result of higher discount rates

Non-current liabilities

Decrease in provisions for pensions and similar obligations mainly due to higher discount rates
Increase in financial debt mainly due to the placement of a bond in March 2017; decreases due to reclassifications to liabilities associated with assets held for sale

Current liabilities

Net increase in current liabilities mainly due to increase in liabilities associated with assets held for sale as a result of classification of Steel Americas as discontinued operation
Reduction in provisions for current employee benefits mainly due to utilization
Decrease in financial debt mainly reflects repayment of a bond in February 2017 combined with drawings from the existing commercial paper program in the reporting period
Increases in trade accounts payable mainly at the continuing materials operations; at the same time decreases mainly due to reclassifications to liabilities associated with assets held for sale
Reduction in other financial liabilities mainly due to lower interest liabilities and reclassification of derivatives to liabilities associated with assets held for sale
Decrease in other non-financial liabilities mainly in connection with construction contracts

Compliance

Compliance – a question of mindset

We build on strong values: reliability, honesty, credibility and integrity
Compliance is a must
Our values are anchored in the Group mission statement, Code of Conduct and Compliance Commitment
We investigate reports of violations and clear up the facts; violations are stopped immediately; necessary sanctions are independent of person and function
More information on compliance at thyssenkrupp in the 2015 / 2016 Annual Report

Employees

158,584 employees worldwide at March 31, 2017; 2,097 or 1.3% more versus September 30, 2016
Net increase in workforce by almost 2,500, in particular in the high-growth capital goods businesses Components Technology and Elevator Technology in connection with the development of new customers and markets outside Germany
At the same time, overall decrease of more than 400 employees at Industrial Solutions and Steel Europe; in addition, long-term reduction in weekly working hours in both areas
Over 350 additional internships and apprenticeships created for refugees as part of the "we help" aid program initiated in fall 2015
Launch of a new Groupwide health and safety awareness campaign; goal is to achieve at least 10% year-on-year reductions in accident rate per 1 million hours worked up to 2020
More information on HR strategy in 2015 / 2016 Annual Report

Technology and innovations

Innovation strategy and key development areas

Systemic approach across sector and technology boundaries; targeted leveraging of our collective strength as an industrial group; global research and development network of more than 3,500 employees at around 100 locations
Key development areas include technologies for the energy transition, intelligent manufacturing, sustainable mobility

Innovation projects

Carbon2Chem Collaborative project aimed at converting steel mill gases into base chemicals: construction work started on a technical center to translate results of laboratory research to industrial scale; basic engineering and layout planning for electrolysis and gas scrubbing facilities completed; preparations underway for integration of a methanol plant in the gas scrubber
Load management Flexibilization of processes to adjust to fluctuations in power supply: study into adapting cement production to volatile supply from renewable energies completed; simulations of production processes and power supply scenarios identify new opportunities for stable processes while saving costs
Industrial Data Space Secure data space for exchange of information between companies: first application now in use; new information system optimizing truck logistics at thyssenkrupp Steel Europe; platform guarantees full data sovereignty for users at all times
Predictive maintenance Development project launched to increase the availability of electrolysis cells by collecting and analyzing available process data
Autonomous driving: New test and development center for steering technology under construction in EschenňLiechtenstein'n; among other things center will be used for development projects such as steer-by-wire, e-mobility, driver assist systems
Diesel fuel cell: Conventional diesel is broken down catalytically to create additional input materials for fuel cells, which are 25% more efficient than diesel engines. The technology is quiet and clean: As no diesel is burnt, other than CO2 there are no other combustion products or particulates. Prototype for surface ships in use
Steel distribution: First pilot of an autonomous, digitally controlled steel processing machine now in operation; fully automated machine processes up to 70 metric tons of flat steel per day in line with customer requirements

Subsequent events

Subsequent events between the end of the 1st half reporting periodňMarch 31, 2017'nand the date of authorization for issuanceňMay 8, 2017'nare presented in Note 10 to the interim financial statements.

Forecast, opportunity and risk report

2016 / 2017 forecast

Overall assessment by the Executive Board

Pleasing progress on transformation of the Group and continuation of good operating performance in 2nd quarter:
Sale of Brazilian steel mill CSA to Ternium concludes Steel Americas exit
Highest order intake since start of Strategic Way Forward; sales and adjusted EBIT higher yearon-year
Recently however renewed severe dislocations on the raw materials markets, especially for coking coal, with temporary effects on expected costs and net working capital
Following adjustments to full-year forecast mainly reflect effects from good operating performance, sale of CSA and recent dislocations on raw materials markets

For key assumptions and expected economic conditions see forecast section and "Macro and sector environment" in the report on the economic position in the 2015 / 2016 Annual Report and this interim report.

2016 / 2017 forecast

Group sales and sales of the continuing operations to increase on a comparable basis in the high single-digit percentage range
Capital goods businesses: on a comparable basis increase in single-digit percentage range
Materials businesses: on a comparable basis Materials Services, Steel Europe and Steel Americas ňdiscontinued operation'nto achieve increase in double-digit percentage range driven by volumes and in particular prices/costs
Adjusted EBIT of the Group expected to be around €1.8 billionňprior year: €1,469 million'n, supported by €850 million planned EBIT effects from "impact"
Adjusted EBIT of continuing operations expected to be around €1.7 billion
Capital goods businesses
Components Technology: Improvement in adjusted EBITňprior year: €335 million'nfrom significant rise in sales and slight improvement in marginňprior year: 4.9%'n
Elevator Technology: Improvement in adjusted EBITňprior year: €860 million'nfrom slight sales growth and increase in adjusted EBIT margin by 0.5to 0.7 percentage pointsňprior year: 11.5%'n
Industrial Solutions:
Short-term focus on reversing trend in orders and cash flow
Decline in adjusted EBIT due to partial underutilizationňprior year: €355 million'nwith largely stable sales
Marine Systems with temporary sharp decline in margin and earnings
Overall margin temporarily noticeably below target range of 6 to 7%
Materials businesses
Materials Services: Adjusted EBIT significantly higher year-on-yearňprior year: €128 million'n
Steel Europe: Adjusted EBIT significantly higher year-on-yearňprior year: €315 million'n
Steel Americasňdiscontinued operation'n: Adjusted EBIT significantly higher year-on-year ňprior year: €ň33'nmillion'n; elimination of scheduled depreciation due to classification as discontinued operation
Net income of the Group: With positive operating earnings and continued restructuring expense, overall significant net loss expectedňprior year: €261 million net income'nexclusively as a result of negative earnings impact from sale of CSA
tkVA of the Group: Clearly positive trend due to good operating performance, but as a result of negative earnings impact from sale of CSA overall significantly lower year-on-yearňprior year: €ň85'nmillion'n
Capital spending of the Group before M&A: Expected around €1.5 billionňprior year: €1,387 million'n
FCF before M&A of the Group: Significant increase in net working capital at our materials businesses as a result of dislocations on raw materials markets and due to higher volumes and prices will result in overall negative FCF before M&A in the mid-three-digit million euro rangeňprior year: €198 million'n

Opportunities and risks

Opportunities

Strong and stable earnings, cash flow and value added through positioning as diversified industrial group and systematic continuation of "impact" measures as well as utilization of advantages in interplay between business areas, regions, corporate functions and service units
Increasing focus on high-earning capital goods and service businesses
Announced infrastructure programs of new US administration
Strategic and operational opportunities described in 2015 / 2016 Annual Report continue to apply

Risks

No risks threatening ability to continue as a going concern; detailed information on risks described in 2015 / 2016 Annual Report continues to apply
Sale of CSA significantly reduces risks going forward
Economic risks from numerous geopolitical flashpoints; increasing volatility in external environment, among other things due to Brexit vote in United Kingdom; increased uncertainty over global economy and effects on the Group's business models
Trade measures of new US administration being continuously monitored; import tariffs on goods from Mexico could jeopardize existing value chains between USA and Mexico
Risks from attacks on IT infrastructure; countermeasure: further expansion of information security management and security technologies
Atlas Elektronik is in talks with Bremen public prosecutor over ending the current investigation proceedings by mutual agreement

Condensed interim financial statements

Consolidated statement of financial position
Consolidated statement of income
Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated statement of cash flows
Selected notes to the consolidated financial statements
Review report
Responsibility statement

thyssenkrupp AG – Consolidated statement of financial position

ASSETS
million €	Note	Sept. 30, 2016	March 31, 2017
Intangible assets		4,570	4,671
Property, plant and equipment		8,872	7,277
Investment property		66	65
Investments accounted for using the equity method		284	290
Other financial assets		44	47
Other non-financial assets		445	254
Deferred tax assets		2,322	2,060
Total non-current assets		16,604	14,664
Inventories		6,341	7,027
Trade accounts receivable		5,003	5,531
Other financial assets		407	427
Other non-financial assets		2,376	2,461
Current income tax assets		172	233
Cash and cash equivalents		4,105	2,868
Assets held for sale	02	65	2,148
Total current assets		18,468	20,695
Total assets		35,072	35,360

thyssenkrupp interim report 1st half 2016 / 2017

Condensed interim financial statementsōthyssenkrupp AG – Consolidated statement of financial position

EQUITY AND LIABILITIES

million €	Note	Sept. 30, 2016	March 31, 2017
Capital stock		1,449	1,449
Additional paid-in capital		5,434	5,434
Retained earnings		ň5,255'n	'n5,754Ŋ
Cumulative other comprehensive income		474	659
Ŋthereof discontinued operationsŋ		Ŋ—ŋ	ŋ176Ō
Equity attributable to thyssenkrupp AG's stockholders		2,102	1,789
Non-controlling interest		507	515
Total equity		2,609	2,304
Accrued pension and similar obligations	03	8,754	8,018
Provisions for other employee benefits		373	338
Other provisions		589	587
Deferred tax liabilities		33	43
Financial debt	04	6,157	7,069
Other financial liabilities		221	198
Other non-financial liabilities		6	7
Total non-current liabilities		16,134	16,260
Provisions for current employee benefits		408	276
Other provisions		963	1,000
Current income tax liabilities		279	276
Financial debt	04	1,455	1,366
Trade accounts payable		5,119	5,300
Other financial liabilities		975	843
Other non-financial liabilities		7,130	6,975
Liabilities associated with assets held for sale	02	0	759
Total current liabilities		16,329	16,795
Total liabilities		32,463	33,056
Total equity and liabilities		35,072	35,360

See accompanying notes to consolidated financial statements.

thyssenkrupp AG - Consolidated statement of income

million $\epsilon$ , earnings per share in $\epsilon$	Note	1st half ended March 31, $2016^{11}$	1st half ended March 31, 2017	2nd quarter ended March 31. $2016^{11}$	2nd quarter ended March 31, 2017
Net sales	07	18,827	20,335	9,588	10,617
Cost of sales		(15, 610)	(16,978)	(7, 928)	(8,853)
Gross margin		3,217	3,357	1,660	1,765
Research and development cost		(169)	(177)	(88)	(92)
Selling expenses		(1, 381)	(1, 451)	(690)	(762)
General and administrative expenses		(1, 122)	(1,219)	(580)	(620)
Other income		87	90	40	48
Other expenses		(50)	(75)	(25)	(34)
Other gains/(losses), net		17	(3)	17	6
Income/(loss) from operations		599	523	334	311
Income from companies accounted for using the equity method		26	(2)	10	8
Finance income		605	499	225	180
Finance expense		(893)	(737)	(363)	(290)
Financial income/(expense), net		(262)	(240)	(128)	(102)
Income/(loss) from continuing operations before tax		338	283	206	208
Income tax (expense)/income		(175)	(224)	(98)	(144)
Income/(loss) from continuing operations (net of tax)		162	58	108	64
Discontinued operations (net of tax)		(171)	(913)	(64)	(934)
Net income/(loss)		(9)	(855)	45	(870)
Thereof:
thyssenkrupp AG's shareholders		37	(871)	61	(879)
Non-controlling interest		(46)	17	(16)	9
Net income/(loss)		(9)	(855)	45	(870)
Basic and diluted earnings per share based on	08
Income/(loss) from continuing operations (attributable to thyssenkrupp AG's shareholders)		0.25	0.07	0.17	0.10
Net income/(loss) (attributable to thyssenkrupp AG's shareholders)		0.07	(1.54)	0.11	(1.55)

See accompanying notes to consolidated financial statements.

1) Figures have been adjusted (cf. Note 02).

thyssenkrupp AG – Consolidated statement of comprehensive income

	1st half	1st half	2nd quarter	2nd quarter
	ended March 31,	ended March 31,	ended March 31,	ended March 31,
million €	2016	2017	2016	2017
Net income/Ŋlossŋ	Ŋ9ŋ	Ŋ855ŋ	45	Ŋ870ŋ
Items of other comprehensive income that will not be reclassified to profit or loss in future periods:
Other comprehensive income from remeasurements of pensions and similar obligations
Change in unrealized gains/ňlosses'n, net	ň573'n	631	ň578'n	5
Tax effect	175	'n179Ŋ	172	3
Other comprehensive income from remeasurements of pensions and similar obligations, net	ň398'n	452	ň406'n	8
Share of unrealized gains/ňlosses'nof investments accounted for using the equity-method	1	6	ň2'n	10
Subtotals of items of other comprehensive income that will not be reclassified to profit or loss in future periods	Ŋ397ŋ	458	Ŋ408ŋ	18
Items of other comprehensive income that will be reclassified to profit or loss in future periods:
Foreign currency translation adjustment
Change in unrealized gains/ňlosses'n, net	ň22'n	209	ň136'n	3
Net realizedňgains'n/losses	0	'n1Ŋ	0	0
Net unrealizedňgains'n/losses	ň22'n	208	ň136'n	3
Unrealized gains/ňlosses'nfrom available-for-sale financial assets
Change in unrealized gains/ňlosses'n, net	0	2	0	2
Net realizedňgains'n/losses	0	0	0	0
Tax effect	0	0	0	0
Net unrealizedňgains'n/losses	0	2	0	2
Unrealized gains/ňlosses'non derivative financial instrumentsňcash flow hedges'n
Change in unrealized gains/ňlosses'n, net	ň32'n	'n40Ŋ	ň17'n	'n8Ŋ
Net realizedňgains'n/losses	12	24	2	'n24Ŋ
Tax effect	15	4	9	10
Net unrealizedňgains'n/losses	ň5'n	'n12Ŋ	ň6'n	'n22Ŋ
Share of unrealized gains/ňlosses'nof investments accounted for using the equity-method	ň7'n	3	ň7'n	0
Subtotals of items of other comprehensive income that will be reclassified to profit or loss in future periods	Ŋ34ŋ	201	Ŋ149ŋ	Ŋ17ŋ
Other comprehensive income	Ŋ431ŋ	659	Ŋ557ŋ	1
Total comprehensive income	Ŋ440ŋ	Ŋ196ŋ	Ŋ512ŋ	Ŋ869ŋ
Thereof:
thyssenkrupp AG's shareholders	ň411'n	'n228Ŋ	ň511'n	'n882Ŋ
Non-controlling interest	ň29'n	33	ň1'n	13
Total comprehensive income attributable to thyssenkrupp AG's stockholders refers to:
Continuing operations	ň332'n	706	ň499'n	37
Discontinued operations1'n	ň79'n	'n934Ŋ	ň13'n	'n918Ŋ

See accompanying notes to consolidated financial statements.

1'nPrior-year figures have been adjustedňcf. Note 02'n.

thyssenkrupp AG – Consolidated statement of changes in equity

Equity attributable to thyssenkrupp AG's stockholders

			Cumulative other comprehensive income
million €, 'nexcept number of sharesŊ	Number of shares	outstanding Capital stock	Additional paid-in capital	Retained earnings	Foreign currency translation adjustment	Available-for sale financial assets	Derivative financial instruments 'ncash flow hedgesŊ	Share of investments accounted for using the equity method	Total	Non controlling interest	Total equity
Balance as of
Sept. 30, 2015	565,937,947	1,449	5,434	Ŋ4,123ŋ	417	6	Ŋ58ŋ	57	3,182	125	3,307
Net income/ňloss'n				37					37	ň46'n	ň9'n
Other comprehensive income				ň397'n	ň31'n	0	ň13'n	ň7'n	ň448'n	17	ň431'n
Total comprehensive income				Ŋ360ŋ	Ŋ31ŋ	0	Ŋ13ŋ	Ŋ7ŋ	Ŋ411ŋ	Ŋ29ŋ	Ŋ440ŋ
Profit attributable to non controlling interest									0	ň24'n	ň24'n
Payment of thyssenkrupp AG dividend				ň85'n					ň85'n	0	ň85'n
Changes of shares of already consolidated companies				ň3'n					ň3'n	ň4'n	ň7'n
Other changes				14					14	ň12'n	2
Balance as of March 31, 2016	565,937,947	1,449	5,434	Ŋ4,557ŋ	386	6	Ŋ71ŋ	50	2,697	56	2,753
Balance as of Sept. 30, 2016	565,937,947	1,449	5,434	Ŋ5,255ŋ	484	6	Ŋ64ŋ	48	2,102	507	2,609
Net income/ňloss'n				ň871'n					ň871'n	17	ň855'n
Other comprehensive income				458	193	1	ň12'n	3	643	16	659
Total comprehensive income				Ŋ413ŋ	193	1	Ŋ12ŋ	3	Ŋ228ŋ	33	Ŋ196ŋ
Profit attributable to non controlling interest									0	ň24'n	ň24'n
Payment of thyssenkrupp AG dividend				ň85'n					ň85'n	0	ň85'n
Balance as of March 31, 2017	565,937,947	1,449	5,434	Ŋ5,754ŋ	677	7	Ŋ76ŋ	51	1,789	515	2,304

See accompanying notes to consolidated financial statements.

thyssenkrupp AG - Consolidated statement of cash flows

million $\epsilon$	1st half ended March 31, $2016^{11}$	1st half ended March 31, 2017	2nd quarter ended March 31, $2016^{11}$	2nd quarter ended March 31, 2017
Net income/(loss)	(9)	(855)	45	(870)
Adjustments to reconcile net income/(loss) to operating cash flows:
Discontinued operations (net of tax)	171	913	64	934
Deferred income taxes, net	9	71	(6)	38
Depreciation, amortization and impairment of non-current assets	528	534	268	274
Reversals of impairment losses of non-current assets	(2)	$\bf{0}$	5	$\bf{0}$
Income/(loss) from companies accounted for using the equity method, net of dividends received	(26)	$\overline{2}$	(10)	(8)
(Gain)/loss on disposal of non-current assets	(16)	(3)	(17)	(8)
Changes in assets and liabilities, net of effects of acquisitions and divestitures and other non-cash changes
- Inventories	179	(953)	407	(241)
- Trade accounts receivable	(19)	(562)	126	(514)
- Accrued pension and similar obligations	(108)	(118)	(44)	(46)
- Other provisions	(163)	(157)	(52)	(48)
- Trade accounts payable	(681)	369	(117)	626
- Other assets/liabilities not related to investing or financing activities	(459)	(523)	(736)	34
Operating cash flows - continuing operations	(595)	(1, 281)	(67)	170
Operating cash flows - discontinued operations	(109)	(59)	(38)	(60)
Operating cash flows - total	(703)	(1, 340)	(105)	110
Purchase of investments accounted for using the equity method and non-current financial assets	(8)	(2)	$\mathbf{1}$	(1)
Expenditures for acquisitions of consolidated companies net of cash acquired	(16)	(7)	(16)	(5)
Capital expenditures for property, plant and equipment (inclusive of advance payments) and investment property	(413)	(549)	(220)	(290)
Capital expenditures for intangible assets (inclusive of advance payments)	(55)	(76)	(32)	(50)
Proceeds from disposals of investments accounted for using the equity method and non-current financial assets	$\mathbf 0$	$\mathbf{1}$	$\mathbf 0$	$\bf{0}$
Proceeds from disposals of previously consolidated companies net of cash disposed	9	6	8	$6\phantom{1}6$
Proceeds from disposals of property, plant and equipment and investment property	21	47	17	28
Proceeds from disposals of intangible assets	$\mathbf{0}$	$\bf{0}$	$\mathbf{1}$	$\mathbf{0}$
Cash flows from investing activities - continuing operations	(461)	(580)	(241)	(312)
Cash flows from investing activities - discontinued operations	(54)	(87)	(25)	(14)
Cash flows from investing activities - total	(515)	(667)	(266)	(325)

thyssenkrupp interim report 1st half 2016/2017 Condensed interim financial statements | thyssenkrupp AG - Consolidated statement of cash flows

million $\epsilon$	1st half ended March 31, 20161)	1st half ended March 31, 2017	2nd quarter ended March 31, 20161)	2nd quarter ended March 31. 2017
Proceeds from issuance of bonds	850	1,250	850	1,250
Repayments of bonds	(1,000)	(1,250)	(1,000)	(1, 250)
Proceeds from liabilities to financial institutions	690	2,152	682	2,136
Repayments of liabilities to financial institutions	(255)	(1,994)	(205)	(1,965)
Proceeds from/(repayments on) loan notes and other loans	74	995	(41)	621
Increase/(decrease) in bills of exchange	(2)	6	(2)	4
(Increase)/decrease in current securities	$\mathbf 0$	$\bf{0}$	$\mathbf{1}$	1
Payment of thyssenkrupp AG dividend	(85)	(85)	(85)	(85)
Profit attributable to non-controlling interest	(24)	(24)	(2)	(16)
Expenditures for acquisitions of shares of already consolidated companies	(6)	$\bf{0}$	(4)	$\bf{0}$
Financing of discontinued operations	(170)	(219)	(29)	(120)
Other financing activities	53	(152)	133	(20)
Cash flows from financing activities - continuing operations	126	680	297	556
Cash flows from financing activities - discontinued operations	96	143	(7)	71
Cash flows from financing activities - total	222	823	290	627
Net increase/(decrease) in cash and cash equivalents - total	(996)	(1, 184)	(82)	411
Effect of exchange rate changes on cash and cash equivalents - total	$\mathbf 0$	43	(27)	7
Cash and cash equivalents at beginning of year - total	4,535	4,105	3,648	2,545
Cash and cash equivalents at end of year - total	3,539	2,964	3,539	2,964
[thereof cash and cash equivalents within the discontinued operations]	$[32]$	[96]	$[32]$	[96]
Additional information regarding cash flows from interest, dividends and income taxes which are included in operating cash flows of continuing operations:
Interest received	50	35	23	17
Interest paid	(287)	(214)	(201)	(134)
Dividends received	54	0	53	$\bf{0}$
Income taxes paid	(177)	(219)	(71)	(92)

See accompanying notes to consolidated financial statements.
1) Figures have been adjusted (cf. Note 02).

thyssenkrupp AG – Selected notes

Corporate information

thyssenkrupp Aktiengesellschaft ň"thyssenkrupp AG" or "Company"'n 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 1, 2016 to March 31, 2017, were reviewed and authorized for issue in accordance with a resolution of the Executive Board on May 8, 2017.

Basis of presentation

The accompanying Group's condensed interim consolidated financial statements have been prepared pursuant to section 37w of the German Securities Trading ActňWpHG'nand in conformity with IAS 34 "Interim financial reporting". They are in line with the International Financial Reporting StandardsňIFRS'nand its interpretations adopted by the International Accounting Standards Board ňIASB'n 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 accounting principles and practices as applied in the condensed interim consolidated financial statements as of March 31, 2017 correspond to those pertaining to the most recent annual consolidated financial statements with the exception of the recently adopted accounting standards. A detailed description of the accounting policies is published in the notes to the consolidated financial statements of our annual report 2015 / 2016.

Recently adopted accounting standards

In fiscal year 2016 / 2017, thyssenkrupp adopted the following amendments to already existing standards that did not have a material impact on the Group's consolidated financial statements:

Amendments to IAS 1 "Presentation of Financial Statements", issued in December 2014. The amendments mainly include clarifications regarding the judgment of materiality of disclosures, explanations how to aggregate and disaggregate line items of the balance sheet and the statement of comprehensive income, the order to the notes and the disclosure to significant accounting policies.
Amendments to IFRS 11 "Joint Arrangements": "Accounting for Acquisitions of Interests in Joint Operations", issued in May 2014
Amendments to IAS 16 "Property, Plant and Equipment" and IAS 38 "Intangible Assets": "Clarification of Acceptable Methods of Depreciation and Amortisation", issued in May 2014
Annual Improvements to IFRSs 2012-2014 Cycle, issued in September 2014
Amendments to IFRS 10, IFRS 12 and IAS 28: "Investment Entities Applying the Consolidation Exception", issued in December 2014

01 Acquisitions

In the 1st half ended March 31, 2017, the Group acquired the two Brazilian Ecosteel companies in December 2016 and acquired additional smaller companies that are, on an individual basis, immaterial. Based on the values as of acquisition date, these acquisitions affected in total the Group's consolidated financial statements as presented below:

ACQUISITIONS

	1st half
million €	ended March 31, 2017
Goodwill	11
Other intangible assets	3
Property, plant and equipment	31
Other non-current financial assets	20
Deferred tax assets	1
Trade accounts receivable	3
Current income tax assets	1
Cash and cash equivalents	4
Total assets acquired	74
Deferred tax liabilities	1
Other non-current non-financial liabilities	3
Trade accounts payable	1
Other current financial liabilities	1
Other current non-financial liabilities	3
Total liabilities assumed	8
Net assets acquired	65
Non-controlling interest	0
Purchase prices	65
Thereof: paid in cash and cash equivalents	65

02 Discontinued operation and disposal group

As part of the Strategic Way Forward, thyssenkrupp reached agreement with Ternium on the sale of the Brazilian steel mill CSA Siderúrgica do AtlanticoňCSA'nat the end of February 2017. The sale is subject to the approval of the responsible competition authorities and is due for completion by September 30, 2017. The transaction meets the criteria of IFRS 5 for presentation of the Steel Americas business area as a discontinued operation. Consequently in the current reporting periods all expense and income of Steel Americas are reported separately in the income statement and all cash flows reported separately in the statement of cash flows; prior-period figures are adjusted accordingly. In the statement of financial position, assets and liabilities attributable to Steel Americas are only reported separately at the current balance sheet date.

In connection with the initiated disposal, the assets and liabilities of the discontinued operation are measured at fair value less costs to sell; this amounts to €1.5 billionňenterprise value'n. This results in a negative earnings effect of €0.9 billion, including an impairment loss of €808 million in accordance with IAS 36 immediately prior to reclassification. Of this €8 million relates to goodwill, €1 million to other intangible assets, €83 million to land and buildings, €555 million to technical equipment and machinery, €1 million to other assets and €160 million to other non-financial assets. In addition, a €101 million provision has been recognized for an obligation resulting from the sale to Ternium in connection with the slab supply contract. The expenses are included in the consolidated statement of income in the line "Discontinued operationsňnet of tax'n".

The assets and liabilities of the Steel Americas business area classified as a discontinued operation are presented in the following table:

Assets € million	March 31, 2017
Intangible assets	1
Property, plant and equipment	1,137
Other non-financial assets	154
Deferred tax assets	19
Inventories	455
Trade accounts receivable	88
Other current financial assets	39
Other current non-financial assets	158
Cash and cash equivalents	96
Assets held for sale	2,147
Non-current financial debt	219
Other current provisions	103
Current financial debt	76
Trade accounts payable	221
Other current financial liabilities	92
Other current non-financial liabilities	47
Liabilities associated with assets held for sale	759

DISCONTINUED OPERATION STEEL AMERICAS

thyssenkrupp interim report 1st half 2016 / 2017 Condensed interim financial statementsōthyssenkrupp AG – Selected notes

The results of the Steel Americas business area are as follows:

DISCONTINUED OPERATION STEEL AMERICAS

	1st half ended	1st half ended	2nd quarter ended	2nd quarter ended
million €	March 31, 2016	March 31, 2017	March 31, 2016	March 31, 2017
Net sales	573	749	264	380
Other income	83	182	83	96
Expenses	ň809'n	'n1,794Ŋ	ň402'n	'n1,388Ŋ
Ordinary income/ňloss'nfrom discontinued operationsňbefore tax'n	ň153'n	'n863Ŋ	ň55'n	'n912Ŋ
Income taxňexpense'n/income	ň19'n	'n50Ŋ	ň9'n	'n22Ŋ
Ordinary income/Ŋlossŋfrom discontinued operationsŊnet of taxŋ	Ŋ171ŋ	Ŋ913ŋ	Ŋ64ŋ	Ŋ934ŋ
Gain/ňloss'nrecognized on measurement adjustments/disposals of discontinued operationsňbefore tax'n	0	0	0	0
Income taxňexpense'n/income	0	0	0	0
Gain/Ŋlossŋrecognized on measurement adjustments/disposals of discontinued operationsŊnet of taxŋ	0	0	0	0
Discontinued operationsŊnet of taxŋ	Ŋ171ŋ	Ŋ913ŋ	Ŋ64ŋ	Ŋ934ŋ
Thereof:
thyssenkrupp AG's stockholders	ň104'n	'n913Ŋ	ň37'n	'n934Ŋ
Non-controlling interest	ň67'n	0	ň27'n	0

At Corporate the sale was initiated at June, 30 2016 of a package of non-operation real estate located in Germany which was classified as a disposal group under IFRS 5 and reported under "Assets held for Sale" in the statement of financial position. As of March 31, 2017 the group comprises investment property in the amount of €1 million. Measurement of the disposal group at fair value less cost to sell as of June 30, 2016 resulted in impairment losses of €5 million on investment property which were recognized in cost of sales in the 3rd quarter of 2015 / 2016.

03 Accrued pension and similar obligations

Based on updated interest rates and fair value of plan assets, an updated valuation of accrued pension obligations was performed as of March 31, 2017 taking into account these effects.

ACCRUED PENSION AND SIMILAR OBLIGATIONS

million €	Sept. 30, 2016	March 31, 2017
Accrued pension obligations	8,534	7,781
Partial retirement	178	191
Other accrued pension-related obligations	43	46
Total	8,754	8,018

The Group applied the following weighted average assumptions to determine pension obligations:

WEIGHTED AVERAGE ASSUMPTIONS
	Sept. 30, 2016				March 31, 2017
in %	Germany	Outside Germany	Total	Germany	Outside Germany	Total
Discount rate for accrued pension obligations	1.30	1.78	1.41	1.80	2.09	1.87

04 Issuance of a bond and utilization of the Commercial Paper Program

In March 2017 thyssenkrupp AG issued a bond with a total volume of €1,250 million with a maturity of five years and a coupon of 1.375% p.a. under its €10 billion debt issuance program.

As of March 31, 2017 the existing Commercial Paper Program with a maximum issuing volume of €1.5 billion was utilized with €1.0 billion.

05 Contingencies and commitments

Contingencies

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:

CONTINGENCIES

	Maximum potential amount of future payments as of	Provision as of
million €	March 31, 2017	March 31, 2017
Advance payment bonds	159	1
Performance bonds	136	2
Residual value guarantees	61	12
Other guarantees	74	1
Total	430	16

The terms of those guarantees depend on the type of guarantee and may range from three months to ten years ňe.g. rental payment guarantees'n. 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 with September 30, 2016, purchase commitments rose by €3.0 billion to €10.1 billion as a result of higher ore prices and exchange rate changes; of this €7.0 billion relates to the discontinued operation Steel Americas.

There have been no material changes to the other commitments and contingencies since the end of the last fiscal year.

06 Financial instruments

The following table shows financial assets and liabilities by measurement categories and classes. Finance lease receivables and liabilities, and derivatives that qualify for hedge accounting are also included although they are not part of any IAS 39 measurement category.

FINANCIAL INSTRUMENTS AS O F SEPT. 30, 2016

		Measurement in accordance with IAS 39			Measurement in accordance with IAS 17
million €	Carrying amount on balance sheet as of Sept. 30, 2016	'nAmortizedŊ cost	Fair value recognized in profit or loss	Fair value recognized in	equity Amortized cost	Fair value as of Sept. 30, 2016
Trade accounts receivableňexcluding finance lease'n	5,001	5,001				5,001
Loans and receivables		5,001				5,001
Finance lease receivables	1				1	1
Other financial assets	451	340	60	51		451
Loans and receivables		324				324
Available-for-sale financial assets		16		18		34
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n			60			60
Derivatives qualifying for hedge accounting			0	33		33
Cash and cash equivalents	4,105	4,105				4,105
Loans and receivables		4,105				4,105
Total of financial assets	9,559
thereof by measurement categories of IAS 39:
Loans and receivables	9,431	9,431				9,431
Available-for-sale financial assets	34	16		18		34
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n	60		60			60
Financial debtňexcluding finance lease'n	7,578	7,578				7,919
Financial liabilities measured at amortized cost		7,578				7,919
Finance lease liabilities	33				33	33
Trade accounts payable	5,119	5,119				5,119
Financial liabilities measured at amortized cost		5,119				5,119
Other financial liabilities	1,196	970	165	62		1,196
Financial liabilities measured at amortized cost		970				970
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n			163			163
Derivatives qualifying for hedge accounting			2	62		63
Total of financial liabilities	13,927
thereof by measurement categories of IAS 39:
Financial liabilities measured at amortized cost	13,667	13,667				14,008
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n	163		163			163

thyssenkrupp interim report 1st half 2016 / 2017 Condensed interim financial statementsōthyssenkrupp AG – Selected notes

FINANCIAL INSTRUMENTS AS O F MARCH 31, 2017

		Measurement in accordance with IAS 39		Measurement in accordance with IAS 17
million €	Carrying amount on balance sheet as of March 31, 2017	'nAmortizedŊ cost	Fair value recognized in profit or loss	Fair value recognized in	equity Amortized cost	Fair value as of March 31, 2017
Trade accounts receivableňexcluding finance lease'n	5,530	5,530				5,530
Loans and receivables		5,530				5,530
Finance lease receivables	1				1	1
Other financial assets	474	377	57	39		474
Loans and receivables		361				361
Available-for-sale financial assets		16		21		37
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n			57			57
Derivatives qualifying for hedge accounting			0	19		19
Cash and cash equivalents	2,868	2,868				2,868
Loans and receivables		2,868				2,868
Total of financial assets	8,873
thereof by measurement categories of IAS 39:
Loans and receivables	8,759	8,759				8,759
Available-for-sale financial assets	37	16		21		37
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n	57		57			57
Financial debtňexcluding finance lease'n	8,404	8,404				8,725
Financial liabilities measured at amortized cost		8,404				8,725
Finance lease liabilities	30				30	30
Trade accounts payable	5,300	5,300				5,300
Financial liabilities measured at amortized cost		5,300				5,300
Other financial liabilities	1,041	882	69	90		1,041
Financial liabilities measured at amortized cost		882				882
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n			59			59
Derivatives qualifying for hedge accounting			10	90		100
Total of financial liabilities	14,776
thereof by measurement categories of IAS 39:
Financial liabilities measured at amortized cost	14,586	14,586				14,907
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n	59		59			59

The carrying amounts of trade accounts receivable, other current financial assets as well as cash and cash equivalents equal their fair values. The fair value of loans equals the present value of expected cash flows which are discounted on the basis of interest rates prevailing on the interim balance sheet date.

Available-for-sale financial assets primarily include equity and debt instruments. They are in general measured at fair value, which is based to the extent available on market prices as of the interim balance sheet date. When no quoted market prices in an active market are available and the fair value cannot be reliably measured, equity instruments are measured at cost.

The fair value of foreign currency forward transactions is determined on the basis of the middle spot exchange rate applicable as of the interim balance sheet date, and taking into account of forward premiums or discounts arising for the respective remaining contract term compared to the contracted forward exchange rate. Common methods for calculating option prices are used for foreign currency options. The fair value of an option is influenced not only by the remaining term of an option, but also by other factors, such as current amount and volatility of the underlying exchange or base rate.

Interest rate swaps and cross currency swaps are measured at fair value by discounting expected cash flows on the basis of market interest rates applicable for the remaining contract term. In the case of cross currency swaps, the exchange rates for each foreign currency, in which cash flows occur, are also included.

The fair value of commodity futures is based on published price quotations. It is measured as of the interim balance sheet date, both internally and by external financial partners.

The carrying amounts of trade accounts payable and other current liabilities equal their fair values. The fair value of fixed rate liabilities equals the present value of expected cash flows. Discounting is based on interest rates applicable as of the balance sheet date. The carrying amounts of floating rate liabilities equal their fair values.

Financial assets and liabilities measured at fair value could be categorized in the following three level fair value hierarchy:

FAIR VALUE HIERARCHY AS O F SEPT. 30, 2016

million €	Sept. 30, 2016	Level 1	Level 2	Level 3
Financial assets at fair value
Fair value recognized in profit or loss
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n	60	0	60	0
Derivatives qualifying for hedge accounting	0	0	0	0
Fair value recognized in equity
Available-for-sale financial assets	18	16	3	0
Derivatives qualifying for hedge accounting	33	0	33	0
Total	111	16	96	0
Financial liabilities at fair value
Fair value recognized in profit or loss
Derivatives not qualifying for hedge accounting ňFinancial liabilities held for trading'n	163	0	51	113
Derivatives qualifying for hedge accounting	2	0	2	0
Fair value recognized in equity
Derivatives qualifying for hedge accounting	62	0	62	0
Total	227	0	114	113

FAIR VALUE HIERARCHY AS O F MARCH 31, 2017

million €	March 31, 2017	Level 1	Level 2	Level 3
Financial assets at fair value
Fair value recognized in profit or loss
Derivatives not qualifying for hedge accounting ňFinancial assets held for trading'n	57	0	57	0
Derivatives qualifying for hedge accounting	0	0	0	0
Fair value recognized in equity
Available-for-sale financial assets	21	18	3	0
Derivatives qualifying for hedge accounting	19	0	19	0
Total	97	18	79	0
Financial liabilities at fair value
Fair value recognized in profit or loss
Derivatives not qualifying for hedge accounting ňFinancial liabilities held for trading'n	59	0	59	0
Derivatives qualifying for hedge accounting	10	0	10	0
Fair value recognized in equity
Derivatives qualifying for hedge accounting	90	0	90	0
Total	159	0	159	0

The fair value hierarchy reflects the significance of the inputs used to determine fair values. Financial instruments with fair value measurement based on quoted prices in active markets are disclosed in Level 1. In Level 2 determination of fair values is based on observable inputs, e.g. foreign exchange rates. Level 3 comprises financial instruments for which the fair value measurement is based on unobservable inputs.

The following table shows the reconciliation of level 3 financial instruments:

RECONCILIATION LEVEL 3 FINANCIAL INSTRUMENTS

million €
Balance as of Sept. 30, 2016ňassets/ňliability'n'n	ň113'n
Changes recognized in profit or loss	37
Reclassification due to the presentation as liabilities associated with assets held for sale	76
Balance as of March 31, 2017Ŋassets/Ŋliabilityŋŋ	0

The financial liability, which is based on individual valuation parameters and recognized at fair value, primarily comprises a freight derivative which was valued according to the contractually agreed minimum volume on the basis of recognized hedge models taking into account the market data prevailing at the closing date. The resulting income effect is recognized in the consolidated statement of income under "Discontinued operationsňnet of tax'n".

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

DERIVATIVE FINANCIAL INSTRUMENTS

million €	Notional amount as of Sept. 30, 2016	Carrying amount as of Sept. 30, 2016	Notional amount as of March 31, 2017	Carrying amount as of March 31, 2017
Assets
Foreign currency derivatives that do not qualify for hedge accounting	2,100	41	1,546	22
Foreign currency derivatives qualifying as cash flow hedges	360	14	459	11
Embedded derivatives	70	1	181	6
Interest rate derivatives qualifying as cash flow hedges1'n	618	9	118	3
Commodity derivatives that do not qualify for hedge accounting	278	18	382	29
Commodity derivatives qualifying as cash flow hedges	64	10	56	4
Commodity derivatives qualifying as fair value hedges	0	0	21	0
Total	3,490	93	2,763	76
Equity and liabilities
Foreign currency derivatives that do not qualify for hedge accounting	2,662	30	2,340	29
Foreign currency derivatives qualifying as cash flow hedges	400	7	426	14
Embedded derivatives	169	2	103	3
Interest rate derivatives that do not qualify for hedge accounting	11	0	18	1
Interest rate derivatives qualifying as cash flow hedges1'n	406	32	459	51
Commodity derivatives that do not qualify for hedge accounting2'n	483	131	395	26
Commodity derivatives qualifying as cash flow hedges	152	23	152	25
Commodity derivatives qualifying as fair value hedges	50	2	140	10
Total	4,332	227	4,032	159

¹^'n Inclusive of cross currency swaps

²^'n Inclusive of freights

07 Segment reporting

Segment information for the 1st half ended March 31, 2016 and 2017, respectively and for the 2nd quarter ended March 31, 2016 and 2017, respectively is as follows:

SEGMENT INFORMATION

million €	Components Technology	Elevator Technology	Industrial Solutions	Materials Services	Steel Europe	Corporate	Steel Americas1Ŋ	Consolidation	Group
1st half ended March 31, 2016
Net sales	3,335	3,619	3,109	5,695	3,050	19	573	0	19,400
Internal sales within the Group	3	2	6	132	598	95	102	ň939'n	0
Total sales	3,338	3,621	3,115	5,827	3,649	114	675	ň939'n	19,400
EBIT	146	364	242	2	106	ň255'n	ň145'n	14	474
Adjusted EBIT	157	390	244	13	115	ň234'n	ň139'n	14	560
1st half ended March 31, 2017
Net sales	3,677	3,749	2,749	6,542	3,580	38	749	0	21,084
Internal sales within the Group	1	0	11	139	699	87	168	'n1,106Ŋ	0
Total sales	3,678	3,749	2,761	6,681	4,279	125	917	'n1,106Ŋ	21,084
EBIT	124	352	33	131	116	'n243Ŋ	'n826Ŋ	'n11Ŋ	'n324Ŋ
Adjusted EBIT	176	422	64	173	119	'n239Ŋ	51	'n11Ŋ	756
2nd quarter ended March 31, 2016
Net sales	1,687	1,751	1,605	2,933	1,608	4	264	0	9,852
Internal sales within the Group	1	1	4	73	317	50	61	ň506'n	0
Total sales	1,688	1,752	1,609	3,005	1,925	54	325	ň506'n	9,852
EBIT	76	171	152	3	56	ň122'n	ň61'n	8	281
Adjusted EBIT	86	186	153	10	65	ň117'n	ň65'n	8	326
2nd quarter ended March 31, 2017
Net sales	1,933	1,867	1,273	3,572	1,973	1	380	0	10,998
Internal sales within the Group	3	1	9	77	398	66	90	'n645Ŋ	0
Total sales	1,936	1,868	1,282	3,649	2,371	67	470	'n645Ŋ	10,998
EBIT	66	168	20	93	91	'n117Ŋ	'n878Ŋ	'n8Ŋ	'n564Ŋ
Adjusted EBIT	101	207	23	121	92	'n123Ŋ	14	'n8Ŋ	427

¹^'n Discontinued operation

In the Industrial Solutions business area, average capital employed increased from €ň475'nmillion as of September 30, 2016 to €241 million as of March 31, 2017.

Net sales as well as adjusted EBIT and EBIT reconcile to the respective figures as presented in the consolidated statement of income as following:

RECONCILIATION NET SALES

million $\epsilon$	1st half ended March 31, 2016	1st half ended March 31, 2017	2nd quarter ended March 31, 2016	2nd quarter ended March 31, 2017
Net sales as presented in segment reporting	19.400	21.084	9.852	10,998
- Net sales Steel Americas	(573)	(749)	(264)	(380)
Net sales as presented in the statement of income	18.827	20.335	9.588	10,617

RECONCILIATION EBIT TO EBT

million $\epsilon$	1st half ended March 31, 2016 ¹⁾	1st half ended March 31, 2017	2nd quarter ended March 31, 2016 ¹⁾	2nd quarter ended March 31, 2017
Adjusted EBIT as presented in segment reporting	560	756	326	427
Special items	(86)	(1,080)	(45)	(991)
EBIT as presented in segment reporting	474	(324)	281	(564)
+ Non-operating income/(expense) from companies accounted for using the equity method	0	$\mathbf{0}$	$\Omega$
+ Finance income	647	622	277	238
- Finance expense	(987)	(858)	(423)	(358)
- Items of finance income assigned to EBIT based on economic classification	42	(39)	13	(26)
+ Items of finance expense assigned to EBIT based on economic classification	8	20	3
EBT-Group	185	(580)	151	(703)
- EBT Steel Americas	153	863	55	912
EBT from continuing operations as presented in the statement of income	338	283	206	208

¹⁾ Figures have been adjusted (cf. Note 02).

08 Earnings per share

Basic earnings per share are calculated as follows:

EARNINGS PER SHARE

	1st half ended March 31. 2016 ¹⁾		1st half ended March 31, 2017		2nd quarter ended March 31, 2016 ¹⁾		2nd quarter ended March 31, 2017
	Total amount in million $\epsilon$	Earnings per share in $\epsilon$	Total amount in million $\epsilon$	Earnings per share in $\epsilon$	Total amount in million $\epsilon$	Earnings per share in $\epsilon$	Total amount in million $\epsilon$	Earnings per share in $\epsilon$
Income/(loss) from continuing operations (net of tax) (attributable to thyssenkrupp AG's shareholders)	141	0.25	42	0.07	97	0.17	55	0.10
Income/(loss) from discontinued operations (net of tax) (attributable to thyssenkrupp AG's shareholders)	(104)	(0.18)	(913)	(1.61)	(37)	(0.06)	(934)	(1.65)
Net income/(loss) (attributable to thyssenkrupp AG's shareholders)	37	0.07	(871)	(1.54)	61	0.11	(879)	(1.55)
Weighted average shares	565,937,947		565,937,947		565,937,947		565,937,947

¹⁾ Figures have been adjusted (cf. Note 02).

There were no dilutive securities in the periods presented.

09 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 discontinued operation. As of March 31, 2017 cash and cash equivalents of €0 million (prior year: €114 million) result from the joint operation HKM.

10 Subsequent event

thyssenkrupp completed the full takeover of Atlas Elektronik in early April 2017.

Essen, May 8, 2017

thyssenkrupp AG The Executive Board

Hiesinger

Burkhard

Kaufmann

Kerkhoff

Review Report

To thyssenkrupp AG, Duisburg and Essen

We have reviewed the condensed consolidated interim financial statements – comprising the consolidated statement of financial position, the consolidated statement of income and the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows and selected explanatory notes – and the interim group management report of thyssenkrupp AG, Duisburg and Essen, for the period from October 1, 2016, to March 31, 2017, which are part of the half-year financial report pursuant to § ňArticle'n 37w WpHG ň"Wertpapierhandelsgesetz" German Securities Trading Act'n. The preparation of the condensed consolidated interim financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the parent Company's Board of Managing Directors. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review.

We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der WirtschaftsprüferňInstitute of Public Auditors in Germany'n ňIDW'n and additional observed the International Standard on Review Engagements "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" ňISRE 2410'n. Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in material respects, 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 respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures 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 audit opinion.

Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU nor that the interim group management report has not been prepared, in material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.

Essen, May 11, 2017

PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

Prof. Dr. Norbert Winkeljohann Michael Preiß ňGerman Public Auditor'n ňGerman Public Auditor'n

Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles for halfyear 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 year.

Essen, May 8, 2017

thyssenkrupp AG The Executive Board

Hiesinger

Burkhard Kaufmann Kerkhoff

Additional information

Contact and 2017/2018 financial calendar

For more information please contact: 2017 / 2018 financial calendar

Communications

Telephone:+49 201 844-536043 Fax: +49 201 844-536041 E-mail: [email protected]

Investor Relations E-mail: [email protected]

Institutional investors and analysts

Telephone:+49 201 844-536464 Fax: +49 201 8456-900702

Private investors

Telephone:+49 201 844-536367 Fax: +49 201 8456-900702

Published by

thyssenkrupp AG thyssenkrupp Allee 1, 45143 Essen, Germany Postfach, 45063 Essen, Germany

Telephone:+49 201 844-0 Fax: +49 201 844-536000 E-mail: [email protected]

www.thyssenkrupp.com

Forward-looking statements

This document contains forward-looking statements that reflect management's current views with respect to future events. Such statements are subject to risks and uncertainties that are beyond thyssenkrupp's ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of government regulators. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. thyssenkrupp does not intend or assume any obligation to update any forward-looking statements to reflect events or circumstances after the date of these materials.

August 10, 2017

Interim report 9 months 2016 / 2017ňOctober to June'n Conference call with analysts and investors

November 23, 2017

Annual report 2016 / 2017ňOctober to September'n Annual press conference Analysts' and investors' conference

January 19, 2018

Annual General Meeting

February 14, 2018

Interim report 1st quarter 2017 / 2018ňOctober to December'n Conference call with analysts and investors

May 15, 2018

Interim report on the 1st half 2017 / 2018ňOctober to March'n Conference call with analysts and investors

This interim report was published on May 12, 2017. Produced in-house using firesys.

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 plusň+'nsign, deteriorations are shown in bracketsň'n. Very high positive and negative rates of changeň≥500% or≤ň100'n%'nare indicated by ++ and −−respectively.

Variances for technical reasons

Due to statutory disclosure requirements the Company must submit this financial report electronically to the Federal GazetteňBundesanzeiger'n. For technical reasons there may be variances in the accounting documents published in the Federal Gazette. German and English versions of the financial report can be downloaded from the internet at www.thyssenkrupp.com. In the event of variances, the German version shall take precedence over the English translation.

AI assistant

thyssenkrupp AG — Interim / Quarterly Report 2017

435_10-q_2017-05-19_2e2ee2d7-cc4d-4eb3-8c31-88ed867b8657.pdf

engineering. tomorrow.

thyssenkrupp in figures

GROUP TOTAL

thyssenkrupp interim report 1st half 2016 / 2017 thyssenkrupp in figures

CONTINUING OPERATIONS

thyssenkrupp interim report 1st half 2016 / 2017 thyssenkrupp in figures

BUSINESS AREAS

Interim management report

Condensed interim financial statements

Additional information

Interim management report

Report on the economic position

Summary

Macro and sector environment

Global economic growth will accelerate slightly in 2017 – outlook remains marked by great uncertainty

GROSS DOMESTIC PRODUCT

THYSSENKRUPP STOCK / ADR MASTER DATA AND KEY FIGURES

thyssenkrupp interim report 1st half 2016 / 2017 Contents

Contents

thyssenkrupp in figures

Interim management report

Condensed interim financial statements

Additional information

Interim management report

Report on the economic position

Summary

Macro and sector environment

Global economic growth will accelerate slightly in 2017 – outlook remains marked by great uncertainty

GROSS DOMESTIC PRODUCT

Automotive

Machinery

Construction

IMPORTANT SALES MARKETS

Steel

Group and business area review

Order intake, sales and adjusted EBIT up year-on-year in continuing operations

ORDER INTAKE BY BUSINESS AREA

Components Technology

Elevator Technology

Industrial Solutions

NET SALES BY BUSINESS AREA

Materials Services

Steel Europe

ADJUSTED EBIT BY BUSINESS AREA

Components Technology

Elevator Technology

Industrial Solutions

Materials Services

Steel Europe

Earnings impacted by special items

SPECIAL ITEMS BY BUSINESS AREA

Results of operations and financial position

Analysis of the statement of income

Income from operations

Financial income/expense and income tax

Earnings per share

Analysis of the statement of cash flows

Operating cash flows

Cash flows from investing activities

Components Technology

Elevator Technology

Industrial Solutions

Materials Services

Steel Europe

Corporate

Cash flows from financing activities

Free cash flow and net financial debt

RECONCILIATION TO FREE CASH FLOW BEFORE M&A

Financing measure carried out successfully

Rating

RATING

Analysis of the statement of financial position

Non-current assets

Current assets

Total equity

Non-current liabilities

Current liabilities

thyssenkrupp AG Interim / Quarterly Report 2017