THYSSENKRUPP AG 9 MONTHS October 01, 2013 June 30, 2014

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1 THYSSENKRUPP AG 9 MONTHS October 01, 2013 June 30, 2014 Developing the future.

2 Contents 2013/2014 October01,2013 June30,2014 InterimManagement Report 02 ThyssenKruppinfigures 03 ThyssenKruppinbrief 04 Strategicdevelopment ofthegroup 07 Groupreview 12 Expecteddevelopments 14 Businessareareview 24 Resultsofoperationsand financialposition 27 Subsequentevents 28 ThyssenKruppstock 29 Rating 29 Innovations 30 Employees 30 Compliance 31 Macroand sectorenvironment 35 Opportunitiesandrisks Condensedinterim financialstatements 37 Consolidatedstatement offinancialposition 38 Consolidatedstatement ofincome 39 Consolidatedstatement ofcomprehensiveincome 40 Consolidatedstatement ofchangesinequity 41 Consolidatedstatement ofcashflows 42 Selectednotestothe consolidatedfinancial statements 63 Reviewreport Further information 64 ReportbytheSupervisory BoardAuditCommittee 65 Contactand 2014/2015dates Thisinterimreportwaspublished onaugust14,2014.

3 ThyssenKruppinfigures GroupContinuingOperations 1! 2012/2013 InterimManagementReport2013/2014ThyssenKruppinfigures /2014 Change Change in% 2012/ /2014 Change Orderintake million 29,577 31,052 1, ,401 10, Netsalestotal million 28,649 30,146 1, ,920 10, EBITDA million 950 1, EBIT million EBITmargin % AdjustedEBIT million AdjustedEBITmargin % EBT million Income/4loss54netoftax5 million attributabletothyssenkruppag'sshareholders million Basicearningspershare Operatingcashflow million Cashflowfromdisposals million 1,030 1, Cashflowforinvestments million Freecashflow million Employees4June , ,168 4, , ,168 4, Prior-yearfigureshavebeenadjusted. FullGroup 2! 2012/ /2014 Change Change in% 2012/ /2014 Change Orderintake million 30,716 31, ,401 10, Netsalestotal million 29,872 30, ,920 10, EBITDA million 1,022 1, EBIT million 146 1, EBITmargin % AdjustedEBIT million AdjustedEBITmargin % EBT million Netincome/4loss5 million attributabletothyssenkruppag'sshareholders million Basicearningspershare Operatingcashflow million Cashflowfromdisposals million 1,029 1, Cashflowforinvestments million Freecashflow million Netfinancialdebt4June305 million 5,326 4,122 41, ,326 4,122 41, Totalequity4June305 million 3,573 3, ,573 3, Employees4June , ,168 4, , ,168 4,617 3 Change in% Change in% 25 Allprior-yearincomefiguresandtotalequityhavebeenadjusted. BusinessAreas Orderintake Netsalestotal EBIT AdjustedEBIT million million million million Employees 2012/ / / / / / / /2014 ComponentsTechnology 35 4,223 4,623 4,222 4, ,562 28,500 ElevatorTechnology 4,945 5,074 4,482 4, ,488 49,707 IndustrialSolutions 4,376 4,518 4,040 4, ,660 19,065 MaterialsServices 8,800 9,956 8,794 9, ,994 30,467 SteelEurope 7,338 6,882 7,327 6, ,609 26,047 SteelAmericas 35 1,565 1,595 1,462 1, ,100 3,446 Corporate ,138 2,936 Consolidation 41, , , , ContinuingOperations 29,577 31,052 28,649 30, , ,168 June30, 2013 Orderintake Netsalestotal EBIT AdjustedEBIT million million million million 2012/ / / / / / / /2014 ComponentsTechnology 35 1,539 1,611 1,517 1, ElevatorTechnology 1,696 1,692 1,562 1, IndustrialSolutions 779 1,035 1,306 1, MaterialsServices 3,047 3,700 3,056 3, SteelEurope 2,315 2,178 2,562 2, SteelAmericas Corporate Consolidation ContinuingOperations 9,401 10,161 9,920 10, Prior-yearfiguresforEBITandAdjustedEBIThavebeenadjusted. June30, 2014

4 InterimManagementReport2013/2014ThyssenKruppinbrief 03 ThyssenKruppinbrief ThyssenKrupp has around 160,000 employees in nearly 80 countries working with passion and expertise to develop technologies,productsandservicesforsustainableprogress.theirskillsandcommitmentarethebasisofoursuccess.in fiscalyear2012/2013thyssenkruppgeneratedsalesofaround 39billion. For us, innovations and technical progress are key factors in managing global growth and using finite resources in a sustainable way. With our engineering expertise in the areas of Mechanical, Plant and Materials, we enable our customerstogainanedgeintheglobalmarketandmanufactureinnovativeproductsinacost-andresource-friendlyway. ThyssenKruppstockmasterdata ISIN4InternationalStockIdentificationNumber5 Stockexchanges Symbols Frankfurt,Düsseldorfstockexchanges Bloomberg4Xetratrading5 Reuters4Xetratrading5 DE Frankfurt4PrimeStandard5,Düsseldorf TKA TKAGY TKAG.DE The Steel Americas business area, having been classified as a discontinued operation in accordance with IFRS at September30,2012,wasreclassifiedasacontinuingoperationatSeptember30,2013;theprior-yearfigureshavebeen adjustedaccordingly. Within SteelAmericas,ThyssenKruppSteelUSAwasreportedas a disposal group untilitssale on February 26, Following the disposal of the discontinued operation Stainless Global at the end of the 1st quarter 2012/2013asaresultofthecombinationwiththeFinnishcompanyOutokumpu,incomewasrecordedinthefirst of2013/2014whichisdirectlyrelatedtothisandrepresentsthediscontinuedoperations.the29.9%financialinterestin Outokumpuobtainedaspartofthetransactionwasaccountedforbytheequitymethoduntiltheannouncementofitssale onnovember29,2013anditsequitymethodincomewasnotincludedinebitduetoitsnon-operatingnature;thesalewas closedonfebruary28,2014.

5 InterimManagementReport2013/2014StrategicdevelopmentoftheGroup 04 StrategicdevelopmentoftheGroup Demographic change, the globalization of goods flows and the rapid growth of mega cities mean that global demand is risingallthetime.theworldneeds more consumerandcapitalgoods,infrastructure,energyandrawmaterials.however, thisgrowingdemandissetagainstthefinitenatureofnaturalresources.concernsabouttheclimateandtheenvironment as well as stricter statutory requirements call for better solutions. The world does not just need more, but above all better :Weneedtouseresourcesmoreefficiently,reducetheenvironmentalimpactofproducingconsumerandcapital goods,andbuildmoresustainableinfrastructure. Thankstoitsengineeringexpertise,ThyssenKruppofferssolutionstothesechallengesandwithitscapitalgoods,materials, industrialprocessesandservicesalreadymeetsrequirementsfor more and better inmanyareas bothinindustrialized countriesandinemergingmarkets.ourtechnologicalexpertiseandthehighqualityofourproductsandservicescreate valueforourcustomersandgiveusaclearcompetitiveedge. To align ThyssenKrupp more closely with these trends as a diversified industrial group we launched our Strategic Way ForwardinMay2011.Thepillarsofthisholisticprogramareastrongerperformanceorientation,changesinourcorporate culture,leadershipandstructure,andcontinuousportfoliooptimization.thiswillstrengthenourfinancialbaseandgiveusthe freedomtoexpandouractivitiesstrategically.wetookfurtherimportantstepsinimplementingthestrategicwayforwardin the first 9 months of fiscal 2013/2014. With the sale of ThyssenKrupp Steel USA and the slab supply contract for ThyssenKruppCSA,theendingoffinanciallinkswithOutokumpuandthesuccessfulcapitalincreasewesignificantlyreduced ourriskprofile,strengthenedourkeyfinancialratiosandsecuredvalueforthecompany. SaleofThyssenKruppSteelUSAcompleted OnFebruary26,2014wecompletedthesaleoftheThyssenKruppSteelUSArollingandcoatingplantinCalvert/Alabamatoa consortium of ArcelorMittal and Nippon Steel& Sumitomo Metal Corporation. On completion of the transaction we received a purchasepriceofus$1.55billion;addedtothiscamepurchasepriceadjustments,inparticularforincreasednetworkingcapital. At the same time a valuable long-term slab supply contract was agreed that will provide a sustainable solution for the ThyssenKruppCSAsteelmillinBrazil.TheconsortiumwillpurchasetwomilliontonsofslabsperyearfromThyssenKruppCSAup to2019.theagreementwillreliablysecureaminimum40percentcapacityutilizationofthemillforseveralyears.inaddition, strongerpenetrationoftheslabmarketsinsouthandnorthamericawillfurtherincreasethyssenkruppcsa scapacityutilization. Withthesaleandtheslabsupplycontractwehavecreatedimportantconditionsforfurtherimprovementstoourcashflowprofile andkeyfinancialratios.followingcompletionofthesaleweareconcentratingonfurtheroperatingimprovementsatthebrazilian plant,whereclearprogresshasalreadybeenmadeintechnicalperformanceandefficiency. ThyssenKrupp CSA will remain in the Steel Americas business area, which will continue to be stated separately in our financialreports. EndingofallfinanciallinkswithOutokumpu OnFebruary28,2014wetransferredtoOutokumputhefinancialreceivablecreatedinconnectionwiththeInoxumsaleandin return acquired the companies VDM and AST as well as a number of European stainless steel service centers from Outokumpu.Inaddition,tofulfilltherequirementsoftheEUCommissionwedisposedofour29.9%interestinOutokumpu andendedallotherfinanciallinkswithoutokumpu.withinthyssenkrupptheacquiredcompanieshavebeenintegratedinto thematerialsservicesbusinessareatotakeadvantageofthemarketpresenceoftheexistingdistributionnetwork.overthe pastfewmonthswehaveanalyzedthebusinessmodelsandplansofvdmandastindetail.forast,acomprehensivenew businessplanhasbeendevelopedwhichprovidesforanintensificationandrestructuringofsalesofcold-rolledproductsas well as extensive restructuring measures in production and administration with a significant reduction in personnel. The detailswillbethesubjectofintensivenegotiationswiththestakeholdersinthecomingmonths.atvdmthefocusisnowon intensifyingandsupportingtheidentifiedrestructuringprogramsandgrowthinitiatives. Moredetailsonthetransactionscanbefoundinthe2012/2013AnnualReport,section ProfileandStrategy.

6 InterimManagementReport2013/2014StrategicdevelopmentoftheGroup 05 Loss-makingbusinessKockumssoldwithdisposalgain In view of the announcement by the Swedish government that future naval shipbuilding programs will be carried out nationally,weagreedthesaleoftheswedishshipyardthyssenkruppmarinesystemsabhformerlykockumsiwithfacilities inmalmö,karlskronaandmuskötosaabattheendofjune2014.thesaleoftheactivities,whicharemainlyfocusedon repairanddesign,wascompletedonjuly22,2014andwillresultinadisposalgaininthe4thquarterofthecurrentfiscal year. We are concentrating our naval shipbuilding operations at the sites in Kiel, Hamburg and Emden. These activities deliverareliablecontributiontothegroup searnings. Expansionofimportantgrowthareas Inthereportingperiodwefurtherstrengthenedthestrategicallyimportantareasofengineeringandelevators,investingin particularinorganicgrowth: InNovember2013theIndustrialSolutionsbusinessareasignedanagreementtosetupajointventurewithIndustrieDe Nora,aproviderofelectrochemicaltechnologiesbasedinMilan,Italy.Bycombiningtheirengineering,procurementand construction activities in the field of electrolysis plants, the two partners will widen their technology platforms and increase proximity to customers as well as global presence. The agreement is subject to approval by the competent competitionauthorities. To better exploit global market opportunities in engineering, an important growth area for the Group, the previously separate engineering companies ThyssenKrupp Uhde and ThyssenKrupp Resource Technologies Hpreviously created from ThyssenKrupp Polysius and ThyssenKrupp FördertechnikI were combined under the roof of ThyssenKrupp IndustrialSolutionsinJanuary2014.Integrationandregionalizationarecentralelementsinachievingourgrowthtargets intheengineeringbusinessandincreasingefficiency.byfocusing our competencies ina globalenterpriseweaimto optimallyexploitmarketpotentialinthegrowthregions. Aswellasfurtherstrengtheningitsservicebusinessthroughacquisitionsworldwide,theElevatorTechnologybusiness areainvestedinexpandingandmodernizingitsplants.ingermanytheneuhausensiteisbeingexpandedintoastateof-the-arttechnologypark.inaddition,weplantobuildaresearchanddevelopmenttowerinrottweiltotestandcertify elevator innovations for the tallest buildings in the world. In China a new multi-function building is being built at the Songjiangelevatorplant,andinZhongshanweareinthefinalplanningphaseofanewelevatorplantwithtesttower.In India construction work has started on a state-of-the-art manufacturing center in Pune. We are also modernizing/expandingourfacilitiesintheusaandbrazil. In the Components Technology business area the expansion of new manufacturing sites in the automotive growth markets continued. In December 2013 we opened a new plant in Chengdu HChinaI to build automotive springs and stabilizersforthechinesemarket.infebruary2014constructionworkstartedonafurtherproductionfacilityforcylinder headmodulesin Poços decaldashbrazili. Productionis scheduledtobegin in2015. InJuly2014weopenedanew plant in Shanghai to produce steering and damping systems for the Chinese market. A further cylinder head module factorywillgointooperationinchinalaterthisyear. TheMaterialsServicesbusinessareafurtheroptimizeditsrange,logisticscapabilitiesandservicesandmadetargeted investments in growth markets. In March 2014 we opened a new service center in Alabama HUSAI to strengthen materials distribution in North America. Our warehousing and processing capacities in Mexico for the automotive industry were modernized and expanded. We also opened new bases for the aerospace industry in North Africa and India.Anewcoordinationandcompetencecenterfortheoilandgasindustryiscurrentlyunderconstruction.

7 InterimManagementReport2013/2014StrategicdevelopmentoftheGroup 06 Wealsofurtherintensifiedourresearchanddevelopmentefforts.Onefocusistoexpandanddeepenresearchcollaborations withpartnersfromindustryandacademia.togetherwithothercompaniesandresearchinstitutionsweareworkingona newtechnologytouseprocessgases,inparticularco 2,asarawmaterial.Thetechnologywillimproveclimateprotection andofferssignificantlong-termmarketpotential.inadditionweareextendingourexistingcooperationwithrwthaachen UniversitytoincludenewtopicssuchasIndustry4.0forfuturestrategiccollaborativeprojects. Corporateprogram impact2015 makingfurtherprogress The corporate program impact combines performance-enhancing initiatives and measures to support the Group s Strategic WayForward.Theaimoftheefficiencyprogram impact2015 istoachieveacumulativepositiveebiteffectof 2.3billion from performance measures in the three fiscal years 2012/2013 through 2014/2015. We already achieved savings of 600millioninthepastfiscalyear,significantlyexceedingour 500milliontarget.Inthefirstof2013/2014further EBITeffectsof 750millionwereachieved.Wearethereforeconfidentthatwecanexceedoursavingstargetof 850million forthe2013/2014fiscalyear. ImportantcontributionsarebeingmadebytheGroupwidepurchasinginitiativesynergize+andprogramsinthebusiness areasthatarebeingcontinuedorlaunchedthisfiscalyear.theyincludeaprogramtoimproveproductionprocessesin the Components Technology business area. The aim is to increase the efficiency and productivity of the over 80 productionsitesofthecomponentstechnologygroupworldwide. ACTcreatesnewGroupleadershipstructurewithcompetitivecosts WiththecorporateinitiativeACTH AchieveChange@ThyssenKrupp IThyssenKruppisoptimizingitsleadershipandbusiness structures and associated processes. ACT supports culture change and improvements to performance, efficiency and profitability throughout the Group. Extensive competitive analyses and benchmark studies have identified savings and optimizationopportunitiesamountingtoaround 250millionasaresultofthenewstructuresandprocesses.Mostofthese effectsaretobeachievedbytheendoffiscalyear2014/2015.thenumberofemployeesinadministrativefunctionsworldwide istobereducedbyroughly3,000fromthepreviouslevelof15,000.inaninitialstepthecorporatefunctionsweresignificantly reducedinnumberandreorganized.corporateheadquartersandtheheadofficesofthebusinessareashavebeenoperatingin thenewstructuresinceoctober01,2013.thenew,moreefficientstructuresandprocessesarecurrentlybeingimplementedin thebusinessunitsofthebusinessareasandregions.inaddition,keyfunctionscurrentlyperformedlocallywillbecombined andorganizedefficientlyandcompetitivelyinin-houseservicecentersofa GlobalSharedServices unit.thisconcernssiteindependentactivitiessuchascertainaccounting,it,realestatemanagementandhumanresourcesprocesses.ouraimisto startprovidingthefirstprocessesfromoneofthenewcentersbeforetheendofthisfiscalyear.overall,thenewglobal SharedServicesstructurewillincludesixcentersworldwide,withlocationsintheRuhr,GdanskandAsiaaswellasregional centersinchinaandbrazil.thecollectiveagreementconcludedwiththeigmetallunionandemployeerepresentativesin early May 2014 will enable ThyssenKrupp to implement Global Shared Services throughout Germany. In addition, the Group s structure will be routinely reviewed in the future as part of the annual strategy process in order to ensure it is continuouslyenhancedandadaptedinlinewithchangingconditions. Focusongovernanceandcompliance ThyssenKrupp has made a clear commitment to compliance with laws and internal policies: Any violations, in particular antitrustorcorruptionviolations,willbemetwithzerotolerance.allreportsofmisconductwillbeinvestigated. TheSupervisoryBoardhasselectedcorporategovernanceandcomplianceaskeyareasofitswork.EffectiveFebruary01, 2014theSupervisoryBoardappointedDr.DonatusKaufmannasamemberoftheExecutiveBoard.Heheadsthenewly created Legal and Compliance directorate. This further reinforces our decision to intensify governance and compliance activitiesinthegroup. Moreinformationonourcomplianceactivitiescanbefoundinthesection Compliance.

8 InterimManagementReport2013/2014Groupreview 07 Groupreview Operatingandstrategicmilestonesachieved ThyssenKruppachievedandinsomecasesslightlyexceededitsoperatingandstrategictargetsintheandthe firstofthe2013/2014fiscalyear: AdjustedEBITfromcontinuingoperationswassignificantlyhigheryear-on-yearinallquartersofthecurrentfiscalyearand inthefirstasawholecameto 953million,120%upfromtheprioryearandfullyinlinewithouroutlookforthe fiscal year; this reflects our stronger performance focus and progress in implementing the measures under the impact program.adjustedebitinthewas 398million,improvingsignificantlyforvirtuallytheseventhquarterinarow and almost three times higher than the corresponding prior-year figure. All business areas except Steel Americas made clearpositivecontributionsinallthreequarters;steelamericasreduceditslossesbymorethan 300millionyear-on-year inthefirstandgeneratedpositiveadjustedebitinthe2013/2014.allthecapitalgoodsbusinesses increasedtheirearningscomparedwiththefirstoftheprioryear;at 1,301milliontheirprofitsweresignificantly higherthanthoseofthematerialsbusiness,whichalsogeneratedclearpositiveearningsof 305millionevenincluding SteelAmericas.AdjustedEBITatCorporateinthefirstcameto H358Imillionandconsolidationto H295Imillion. Inthefirstofthefiscalyear,thefullGroupgeneratednetincomeattributabletotheshareholdersofThyssenKrupp AGof 243million;thecontributed 39milliontothis. As expected, free cash flow from continuing operations before divestments at H840I million in the first 9 months 2013/2014wasloweryear-on-yearduetothecompensationpaymenttoDeutscheBahn,thepreparatorymeasuresforthe reliningofblastfurnaceschwelgern2,andanincreaseinnetworkingcapitalduetobusinessgrowthandportfoliochanges HincludingatThyssenKruppSteelUSAuntilcompletionofthesale,andatVDMandASTsincetheirtransferattheendof February2014I.However,thankstothecapitalincreaseatthebeginningofDecember2013andthecashinflowsfromthe completion of the Outokumpu transaction and the sale of ThyssenKrupp Steel USA, the full Group s net financial debt decreasedcomparedwiththeendoffiscal2012/2013from 5.0billionto 4.1billion,equityincreasedfrom 2.5billionto 3.2billion,andgearingwasreducedsignificantlybyaround71percentagepointsto129.9%.Thesefiguresalsoalready includeacashoutflowof 279millionincurredinthe2ndquarter2013/2014asaresultofthewinding-downofthenonoperatingUS-basedsubsidiaryTheBuddCompanyinaChapter11case.Inthisconnectionhealthcareobligationsof 691 millionwerealsoshed,meaningnomorecashoutflowswillresultfromtheseinthefuture. Withcash,cashequivalentsandcommittedundrawncreditlinestotaling 7.3billionatJune30,2014andabalancedand extendedmaturityprofile,thyssenkruppissolidlyfinanced. Capitalgoodsbusinessesdrivegrowthinordersandsales ThyssenKrupp held up well overall in a continuing challenging economic climate in the first 9 months 2013/2014; key driversforthegrowthinordersandsaleswerethesolidperformancesofthecapitalgoodsbusinesses.

9 InterimManagementReport2013/2014Groupreview 08 Orderintakefromcontinuingoperationscameto 31.1billioninthefirst2013/2014,up5%year-on-yeardespite negativeexchangerateeffects;onacomparablebasis,i.e.excludingcurrencyandportfolioeffects,orderintakeincreased by6%year-on-year.orderintakewas 10.2billion,up8%year-on-year.Onacomparablebasisitgained5%. Comparedwiththepriorquarter,orderswerevirtuallyunchanged. Onacomparablebasisallthecapitalgoodsbusinessesexceededtheirprior-yearorderintakeintheandinthe firstoverall.componentstechnologyrecordedparticularlystrongyear-on-yeargainsinallthreequartersandan overall increase of 13% in the first 9 months; the demand recovery for auto components strengthened and the slight improvementinindustrialcomponentsfromtheweakprior-yearlevelscontinued.orderintakeatelevatortechnologywas mainlydrivenbyimproveddemandinchina,theusaandsouthkorea,gainingyear-on-yearonacomparablebasisinall threequarters.industrialsolutionsimprovedonitsstrongprior-yearperformanceonacomparablebasis.ordersinhandat Elevator Technology and Industrial Solutions remained at around 19 billion in total at June 30, 2014, forming a strong baseforprofitablesalesgrowthinthesebusinesses. Orderintakeinthebusinessareasofthematerialsactivitieswasinfluencedbyportfoliomeasures:WitheffectfromMarch 01,2014MaterialsServicesincludesthecontributionsoftheVDMandASTgroupstransferredfromOutokumpu,butorders inthefirstalsoimprovedonacomparablebasisduetohighervolumes aidedinparticularbynumeroussales initiatives.againstcontinuinghighpricepressure,newordersatsteeleuropeweredownyear-on-year,partlyasaresultof thedisposalofthetailoredblanksbusiness;onacomparablebasis,averageordervolumesinthereportingperiodwere slightly higheryear-on-year.3rd quarter orderswere downsomewhatfromthe prior quarter, which wascharacterized by strongermarketactivityandrestockingbycustomers.ordersatsteelamericasincreasedby2%year-on-yearinthefirst9 monthsdespitethesaleofthyssenkruppsteelusaattheendoffebruary2014,butdeclinedinthebothyearon-year and quarter-on-quarter due to the disposal; thanks to positive volume effects, ThyssenKrupp CSA significantly increaseditsorderintakebothyear-on-yearandquarter-on-quarter. Salesfromcontinuingoperationsat 30.1billioninthefirstwerehigheryear-on-yearinallbusinessareasexcept SteelEurope,wheresalesfellduetodisposalsandlowerprices;onacomparablebasissalesincreasedyear-on-yearby6% inthefirstand5%inthe,profitinginparticularfromstronggrowthandhighordersinhandinthe capital goods operations. 3rd quarter sales were 4% higher quarter-on-quarter; seasonally higher sales in the elevator businessand highersalesatmaterials Servicesfor portfolioreasons offsetlowershipmentsat SteelEurope duetobad weatherandoperationalissuesandportfolio-relatedlowersalesatsteelamericas. OrderintakeandsalesofthefullGroupinthefirst2013/2014werealsohigheryear-on-year,eventhoughthe1st quarteroftheprioryearstillincludedcontributionsfromthediscontinuedoperationstainlessglobal.

10 InterimManagementReport2013/2014Groupreview 09 impactprogramhavinganeffect adjustedebitupsignificantly Inastilldifficultandhighlycompetitiveclimate,adjustedEBITfromcontinuingoperationsincreasedsignificantlyyear-onyearandquarter-on-quarterto 953millioninthefirstand 398millioninthe2013/2014. InallthecapitalgoodsoperationsadjustedEBITwassignificantlyhigheryear-on-yearinboththefirstand, withtheexceptionofslightdeclinesatcomponentstechnology,the.componentstechnologyprofitedabove all from performance improvements due to restructuring and efficiency measures initiated in the prior year; the slight declineinearningswaspartlyduetoincreasedrepairandmaintenanceexpense.elevatortechnologyand Industrial Solutions achieved higher earnings year-on-year in all three quarters. Elevator Technology profited from a continuousmarginimprovementresultingfromtheperformanceoptimizationandrestructuringmeasures;adjustedebit margin was 0.3 percentage points higher year-on-year in the 1st quarter, 0.5 percentage points higher in the 2nd quarter,and1percentagepointhigherintheat12.0%.thesignificantearningsimprovementsatindustrial SolutionsreflectorderbillingsforfertilizercontractsatProcessTechnologiesandefficiencyenhancementmeasuresin allbusinessunits. Inthematerialsbusinesses,adjustedEBIT withtheexceptionofslightdeclinesatmaterialsservices wassignificantly higheryear-on-yearbothinthefirstandinthe.despitecontinuinghighpricepressureandintense competition, adjusted EBIT at Materials Services was roughly level with the prior year, helped by numerous efficiency enhancementmeasuresandsalesinitiatives.atsteeleurope,themeasuresunderthe Best-in-ClassReloaded program startedtotakeeffect;year-on-year,adjustedebitincreasedby82%inthefirstandalsoimprovedsignificantlyin the.steelamericasremainedslightlynegativeinthefirstwithadjustedebitof H27Imillion.Thanks toefficiencyandvolumegainsand positiveeffectsfrommarket pricesintheusa,however,thelosseswerereduced by more than 300 million compared with the prior year, and positive adjusted EBIT was generated in the 3rd quarter 2013/2014. IncludingthediscontinuedoperationstheGroup sadjustedebitincreasedfromvon 365millionto 953millioninthe first2013/2014,reflectingimprovementsinthecontinuingoperationsandtheabsenceoftheoperatinglosses atstainlessglobalfromthe1stquarteroftheprioryearwiththecompletionofthedisposal. EBITandfinancialpositionimpactedbyspecialitems Inthefirst2013/2014,EBITfromcontinuingoperationswasimpactedbynetspecialitemsof 67million.They relatedinparticulartorestructuringprovisionsatelevatortechnologyinthe1sthalf,incomefromthesaleofthyssenkrupp SteelUSAinthe2ndquarter,incomefromtheupdatedvaluationofalong-termfreightagreementatSteelAmericas,and incomefromthedeconsolidationofthenon-operatingussubsidiarythebuddcompanyatcorporateinthe2ndquarter. ThiswaspartlyoffsetatCorporatebyalossonthesaleoftheOutokumpushareholdinginthe2ndquarter;thiswasinturn largely offset by corresponding financial income of almost the same amount due to derecognition of a share derivative

11 InterimManagementReport2013/2014Groupreview 10 recognizedinthe1stquarterhseealsonote02i.netspecialitemsinthecameto 49millionandincludedin particular restructuring expenses at Components Technology, Elevator Technology, Steel Europe and Corporate, an impairmentchargeatmaterialsservices,aswellasexpensefromtheupdatedvaluationofthefreightagreementatsteel Americas. Specialitemsfromcontinuingoperations million 2012/ /2014 Change in% 2012/ /2014 Change in% EBIT /-Disposallosses/gains Restructuringexpenses /-Impairment/ReversalofImpairment Othernon-operatingexpenses Othernon-operatingincome AdjustedEBIT Prior-yearfigureshavebeenadjusted. Positivenetincomeafterandin Afterspecialitems,EBITfromcontinuingoperationscameto 886millioninthefirst;theprior-yearfigurewas 75million.After-taxearningsfrom continuing operationsincreasedaccordinglyfrom H634Imillionto 58million;they decreased quarter-on-quarter from 272 million to 43 million in the 3rd quarter. This was mainly due to the aforementionedfinancialincomeof 224millionduetoderecognitionofasharederivativeinthe2ndquarter. OnthisbasisthefullGroupgeneratednetincomeattributabletotheshareholdersofThyssenKruppAGof 243millionin thefirstofthefiscalyear,ofwhichthecontributed 39million.Thenetincomefortheperiodincluded income in the first 9 months attributable to the discontinued operations in the net amount of 184 million. This mainly stems from the 1st quarter 2013/2014 from the reversal of provisions for the obligation to offset any negative financial consequencesforoutokumpuundermergercontrolrequirementsinconnectionwiththesaleofinoxumtooutokumpu. Earningspershareimprovedyear-on-yearfrom H1.02Ito 0.44inthefirst2013/2014andcameto 0.07inthe. Netfinancialdebtreduced As expected, free cash flow from continuing operations before divestments at H840I million in the first 9 months 2013/2014wasloweryear-on-yearduetothecompensationpaymenttoDeutscheBahn,thepreparatorymeasuresforthe reliningofblastfurnaceschwelgern2,andanincreaseinnetworkingcapitalduetobusinessgrowthandportfoliochanges. Includingdivestments,inparticularthecashinflowsfromthesaleofThyssenKruppSteelUSA,thefreecashflowofthefull Groupcameto 220million;theprior-yearfigure,whichincludedthecashinflowsfromtheInoxumtransaction,was 510 million. ThefullGroup snetfinancialdebtatjune30,2014cameto 4,122million,downfrombothayearearlierH 5,326millionI andseptember30,2013h 5,038millionI. Netfinancialdebtiscalculatedasthedifferencebetweenthecashandcashequivalentsshowninthestatementoffinancial positionpluscurrentotherfinancialassetsavailableforsale,andnon-currentandcurrentfinancialdebt;thecorresponding assetsintendedforsaleofthedisposalgroupsandthediscontinuedoperationsarealsotakenintoaccount. ThyssenKrupp AG has agreements with banks which contain certain conditions in the event that the gearing ratio Hnet financialdebttoequityiintheconsolidatedfinancialstatementsexceeds150%attheclosingdatehseptember30i.

12 InterimManagementReport2013/2014Groupreview 11 AtJune30,2014thegearingratiowas129.9%,around71percentagepointslowerthanatSeptember30,2013andback below the gearing limit of 150%. The main reasons for the improvement were the capital increase carried out in early December 2013 and the cash inflows from the successful completion of the Outokumpu transaction and the sale of ThyssenKruppSteelUSA. At June 30, 2014 the Group s available liquidity amounted to 7.3 billion, consisting of 3.5 billion cash and cash equivalents and 3.8 billion undrawn committed credit lines. There is thus sufficient scope to cover upcoming debt maturities. The gross financial liabilities repayable up to the end of fiscal year 2014/2015 amount to 1.2 billion. ThyssenKruppisthussolidlyfinanced. Financingmeasurescompletedsuccessfully Capitalincrease OnDecember02,2013theExecutiveBoarddecidedtoincreasethecapitalstockofThyssenKruppAG by a nominal 131,709,191.68, i.e. around 10% of the capital stock, by issuing 51,448,903 new shares excluding shareholders subscription rights. On December 03, 2013 the newly issued shares were placed with German and internationalinstitutionalinvestorsatapriceof 17.15pershareinanacceleratedbookbuildingprocess.Theplacement resultedingrossproceedsof 882.3million,whichcontributedtostrengtheningequityandreducingnetfinancialdebt.The capitalstockof ThyssenKruppAGisnow 1,448,801,144.32andis dividedinto565,937,947 no parbearershares.the speedoftheplacementandthefactthatitwasalmostthreetimesoversubscribedbymainlylong-terminvestorsconfirms thetrustofthecapitalmarketinthelong-termstrategyofthyssenkrupp. Bond OnFebruary19,2014ThyssenKruppAGissueda 1.25billionbondwithamaturityoffiveyearsandeightmonths underits 10billiondebtissuanceprogram.Withanorderbookofover 6billionthebondwasverywellreceivedbythe capitalmarket.thebondcarriesacouponof3.125%p.a.atanissuepriceof99.201%.theissuetookadvantageofthe good market environment and achieved a historically favorable coupon for ThyssenKrupp. It also extended the maturity profileofthecompany sfinancialdebtandstrengthenedthecapitalmarketshareofitsfinancingmix. Syndicated credit facility On March 28, 2014 ThyssenKrupp agreed a new 2.0 billion syndicated credit line with its financial partners. The facility has an initial term to March 28, At the end of the first and second years it can be extendedbyayearineachcasewiththeapprovalofthelenders.thenewcreditlinereplacesthe 2.5billioncreditfacility thatwouldhaveexpiredinjuly2014.

13 InterimManagementReport2013/2014Groupreview/Expecteddevelopments 12 Capitalexpendituresdownyear-on-year Inthefirst2013/2014ThyssenKruppinvestedatotalof 672million,comparedwith 958millioninthefirst9 months 2012/ million of the decline was attributable to the discontinued operations and resulted from the absence ofexpendituresatstainlessglobal on completion ofthe disposal. Inadditioncapitalexpenditures decreasedat ComponentsTechnologyduetodeferralswithintheyearandwerealsoloweratSteelAmericasforportfolioreasons. In the first 9 months of the current fiscal year we spent 304million on the capital goods businesses, including 212million at Components Technology. The majority of the budget for our components business relates to the growth regionsbicandnafta.elevatortechnologyinvestedinexpandingandmodernizingitsplantsingermanyandchinaaswell as further strengthening its service business through acquisitions. Industrial Solutions invested mainly in its Resource Technologies business in service centers in Brazil and Chile and a fabrication site in Australia as well as in patent applications. We invested a total of 362million in our materials operations. Of this, 249million went to Steel Europe, including for the relining of blast furnace Schwelgern 2, and 58million to Steel Americas. Materials Services invested 55million in the first 9 months among other things in the expansion of its service and processing capacities through smalleracquisitionsaswellastheopeningofanewservicecenterinalabamaandanewprocessingcenterinbulgaria. Moreinformationoninvestmentintheexpansionofourgrowthareasisprovidedinthesection"Strategicdevelopmentof thegroup". Expecteddevelopments ThefollowingforecastrelatestothecontinuingoperationsoftheGroupafterthereintegrationofSteelAmericas.Itincludes thedisposalgroupthyssenkruppsteelusauptotheclosingofthesaleattheendoffebruary2014.thevdmandast groupstransferredfromoutokumputothyssenkruppattheendoffebruary2014arealsoincluded: Salesandearnings Fromthepresentperspective,theGroup sbusinessperformanceinthe2013/2014fiscalyearwillbe characterizedbyamoderaterecoveryoftheglobaleconomy.theapparenttrends theendoftheeconomicdownturnin theeurozoneandstabilizationofthepaceofgrowthoutsideeurope cannotyetberegardedascertain. Basedontheassumptionsof generallyslowgrowthinthecoremarketsforourmorecyclicalmaterialsandcomponentsbusinessesinthedeveloped worldregionsandcontinuinggrowthintheemergingeconomies,and nomajordislocationsontherawmaterialsmarkets ourcurrentexpectationsforthyssenkruppinfiscal2013/2014areasfollows: TheGroup ssalesonacomparablebasisshouldgrowyear-on-yearbyamidtohighersingle-digitpercentagerate. Capitalgoodsbusinesses:ThehighorderbacklogsatElevatorTechnologyandIndustrialSolutionsalreadysecurethe expectedsalesgrowthwellbeyondthefiscalyear.atcomponentstechnologythenewplantsinchinaandindiashould deliverincreasingsalescontributions. Materialsbusinesses:AtMaterialsServicesselectivegrowthinitiativesandtheintegrationoftheVDMandASTgroups areexpectedtoresultinhighersales,whilesalesatsteeleurope will beslightlylowerdueto portfoliomeasures. At Steel Americas, continuing technical optimization and increasing penetration of the slab markets in North and South AmericashouldoffsettheabsenceofThyssenKruppSteelUSA ssalesfollowingthedisposal.

14 InterimManagementReport2013/2014Expecteddevelopments 13 AdjustedEBITfortheGroupshoulddoubleyear-on-yearHadjustedEBIT2012/2013: 586million,restatedI.Apartfrom SteelAmericasallbusinessareaswillmakepositivecontributions.Asaresultofoperatingprogress,SteelAmericas loss willagaindeclinesignificantly.inaddition,theexpectedgrowthinourhighlyprofitablecapitalgoodsbusinessesandour GroupwideeffortstoenhanceperformanceundertheimpactprogramwillcontributetoimprovingtheGroup'searnings. Elevator Technology in particular will further improve its earnings and margin. An earnings improvement is likewise expected at Industrial Solutions. In our materials businesses we expect Steel Europe despite continuing strong competition todeliverahigherearningscontributionduetoefficiencygainsfromthe Best-in-ClassReloaded project. Our goal in the subsequent years continues to be to strengthen our equity through a return to net profit; for fiscal 2013/2014,weexpectasignificantimprovementyear-on-yearwithbreak-eventoslightlypositivenetincome. Wewillalsoworkhardtoimprovecashgenerationfromoperatingactivitiesonasustainablebasisandfurtherreducenet financialdebt. Ourfinancingandliquiditywillremainonasolidbasisinfiscal2013/2014andabletocushionfluctuationsresultingfrom suddeneconomicchanges.inadditiontothesuccessfulcapitalincrease,theproceedsfromthesaleofthethyssenkrupp SteelUSArollingandcoatingplantinCalvert/Alabamawillfurthersignificantlyreduceournetfinancialdebtandgearing;in addition, the stringent implementation of our Strategic Way Forward and the efficiency measures under impact will substantially improve the earnings and competitive profile of the Group. Capital spending in the Group as a whole is expectedtobeunchangedyear-on-year. Fiscalyear2014/2015 Inthe2014/2015fiscalyearwewillcontinuetoworkonthestructuralimprovementoftheGroupandrigorouslyimplement our integrated strategic development plan. This may include among other things targeted growth stimulus and further portfoliooptimization.assumingtheglobaleconomycontinuesitsmoderaterecovery,theeconomicdownturnintheeuro zone is over and the pace of growth outside Europe stabilizes, we expect our sales to increase further in line with the generalgrowthoftheeconomy.risingsalesandstructuralimprovementsshouldhaveacorrespondinglypositiveimpacton earnings. In 2014/2015 we additionally expect further significant improvements on the earnings side as a result of the corporate programs initiated, in particular impact 2015, and the continuous stimulus to efficiency provided by benchmarking. We therefore also expect an improvement in the equity and financing situation in 2014/2015. More informationonourcorporateprogramscanbefoundinthesection StrategicdevelopmentoftheGroup.

15 InterimManagementReport2013/2014Businessareareview 14 Businessareareview ComponentsTechnology ComponentsTechnologyinfigures 2012/ /2014 Change in% 2012/ /2014 Change in% Orderintake million 4,223 4, ,539 1,611 5 Sales million 4,222 4, ,517 1,603 6 EBIT 15 million EBITmargin % AdjustedEBIT 15 million AdjustedEBITmargin % Employees4June305 27,562 28, ,562 28, Prior-yearfigureshavebeenadjusted. TheComponentsTechnologybusinessareaproducesandmarketshigh-techcomponentsworldwidefortheautomotiveand machinery sectors. In the auto sector the product range includes assembled camshafts, cylinder head modules with integratedcamshafts,andcrankshaftshpowertraini,steeringanddampingsystems,springsandstabilizersaswellasthe assembly of axle modules HChassisI. In the machinery sector Components Technology supplies components for constructionequipment,windturbinesandnumerousgeneralengineeringapplications.thisbroadspectrumofproductsis basedonyearsofexperienceinbothforgingandcoldforming.togetherwithexpertiseinmachiningandcomplexassembly processes, Components Technology has development and manufacturing know-how for high-performance components alongtheentirevaluechain. Orderintakeandsaleshigher Components Technology continued its strong performance in the 3rd quarter 2013/2014 and achieved order intake of 4.6billioninthe9-monthperiod,ayear-on-yearincreaseof9%,or13%onacomparablebasis.3rd-quarterorderintake increasedbyaround5%year-on-yearto 1.6billion,despitenegativecurrencytranslationeffectsmainlyfromtheUSdollar andbrazilianreal;onacomparablebasisthegrowthwas8%. IntheautomotivebusinesstherecoveryincarandtruckcomponentsinwesternEuropecontinued.Thecarmarketsin ChinaandtheNAFTAregionremainedpositiveandthedemandrecoveryfortruckandoff-highwayvehiclesintheUSA alsostrengthened.however,themarketsinindiaandbrazilremainedweakduetoeconomicuncertainty.atpowertrain andchassis,businesswasstrongpartlyasaresultofnewproductlaunchesinthemid-sizeandpremiumsegments.the build-outofournewplants,aboveallinasiaandsouthamerica,continuestomakegoodprogress.inviewofthegrowing marketopportunitiesinasia,weopenedanewplantforsteeringanddampersystemsinshanghaiatthebeginningof July It has several production lines manufacturing steering components such as steering shafts and electronic steering systems for the mid-size and premium segments. Another production line for passive damper systems is currentlybeingrampedupandwillgointofullproductionshortly. Intheindustrialcomponentsbusinesstherecoveryfromtheweakprior-yearlevelscontinued.DemandinChinainparticular resulted in higher orders for wind turbine components. However there was no reversal in the weak demand trend for constructionequipmentcomponentsinwesterneurope. Followingthetrendinorders,salesinthe9-monthperiodalsoincreasedsignificantlyyear-on-year,by9%to 4.6billion;on acomparablebasissaleswere12%higher.salesimprovedyear-on-yearby6%,onacomparablebasisby9%, andwereupslightlyfromthestrongpriorquarter.

16 InterimManagementReport2013/2014Businessareareview 15 *FiguresforQ12012/2013toQ12013/2014havebeenadjusted. Earningsandmarginhigherinthefirst At 208million in the 9-month period, adjusted EBIT of Components Technology was higher year-on-year, reflecting increasedsalesandaboveallperformanceimprovementsduetorestructuringandefficiencymeasuresintroducedinthe prioryearunderthecorporateprogramimpact. AdjustedEBITinthecameto 70million,downfromtheprior-yearquarter.Itcontinuestoincludestartupcosts fornewplants,productsandproductionramp-ups,andwasadditionallyimpactedbyexpensestorectifydamagetopress linesinthecrankshaftsarea,inpartinpreparationforamajorrepair. EBITforthefirstcontainsspecialitemsmainlyresultingfromrestructuringexpensesforpersonnelmeasuresin constructionequipmentcomponentshbercoiandsteeringsystemshchassisi. Thespecialitemsinthemainlyincludeprovisionsfortheplannedreorganizationofdevelopmentactivitiesinthe steeringsystemsbusinesshchassisi,includingtherestructuringofthedevelopmentlocationinesslingen.thedevelopment unitsforelectronicandmechanicalsteeringgearsaretobecombinedattheeschendevelopmentcenterinliechtenstein. Theaimofthiscombinationistoimprovethespeedandcost-efficiencyofdevelopmentwork. ElevatorTechnology ElevatorTechnologyinfigures 2012/ /2014 Change in% 2012/ /2014 Change in% Ordersinhand4June305 million 3,778 3, ,778 3,970 5 Orderintake million 4,945 5, ,696 1,692 0 Sales million 4,482 4, ,562 1,609 3 EBIT million EBITmargin % AdjustedEBIT million AdjustedEBITmargin % Employees4June305 48,488 49, ,488 49,707 3 TheElevatorTechnologybusinessareasuppliespassengerandfreightelevators,escalatorsandmovingwalks,passenger boardingbridges,stairandplatformliftsaswellasprovidingservicefortheentireproductrange.over900locationsforma tight-knitsalesandservicenetworkkeepingusclosetocustomers. Orderintakehighdespitenegativeexchangerateeffects;ordersinhandatrecordlevel Orderintakeinthefirstwas3%higheryear-on-yearatalmost 5.1billion.Onacomparablebasis,i.e.aboveall withoutnegativeexchangerateeffectsfromourbusinessinamericaandasia,thegrowthinorderintakewas7%,mainly reflecting the positive situation in China, the USA and South Korea. In these countries Elevator Technology continues to

17 InterimManagementReport2013/2014Businessareareview 16 profit from increased demand for new installations. In the 3rd quarter order intake was level with the prior year at 1.7billion, but on a comparable basis likewise increased by 4%. Quarter-on-quarter all business units of Elevator Technologyachievedgrowthandcontinuedthepositivetrendwithatotalincreaseof7%.Ordersinhandreachedanew recordhighof 4.0billion. Pleasingsalesgrowth InthefirstofthefiscalyearElevatorTechnologyachievedsalesof 4.6billion,up3%year-on-yearbothforthe9- monthperiodandforthequarter.adjustedforexchangerateeffects,theincreasewas8%.elevatortechnologyachieved positivegrowthratesinoperatingbusinessparticularlyinnorthandsouthamerica,chinaandkorea drivenbythestrong marketsituationin connectionwithhighdemand for newinstallations. Againsttheseasonallyweaker2nd quarter,sales roseby9%. Performanceprogramhavinganeffect In the first 9 months 2013/2014 Elevator Technology improved its adjusted EBIT year-on-year by 9% to 531million despitenegativeexchangerateeffects.thispositivetrendwasalsoseeninthe,withadjustedebit12%higher year-on-yearat 193million.InthefirstadjustedEBITmargingained0.6percentagepointsyear-on-year,andat 12%inthewas1percentagepointhigheryear-on-year.Theearningsandmarginimprovementmainlyreflectsa pleasingoperatingperformanceandthepositiveeffectsofperformanceoptimizationandrestructuringmeasuresunderthe corporateprogramimpact.intheadjustedebitwas19%upfromtheseasonallyweaker2ndquarter. EBITcameto 476millioninthefirst.Itincludesspecialitemsof 55million,mainlyforrestructuringmeasures ineuropeinthe1stquarter. IndustrialSolutions IndustrialSolutionsinfigures 2012/ /2014 Change in% 2012/ /2014 Change in% Ordersinhand4June305 million 15,761 14, ,761 14, Orderintake million 4,376 4, , thereofmarinesystems 15 million 273 1, Sales million 4,040 4, ,306 1, thereofmarinesystems 15 million 940 1, EBIT million EBITmargin % AdjustedEBIT million AdjustedEBITmargin % Employees4June305 18,660 19, ,660 19, includingothershareholdingsandconsolidation

18 InterimManagementReport2013/2014Businessareareview 17 UndertheGroup'sstrategicdevelopmentprogram,wereachedkeymilestonesintheintegrationandregionalizationofthe plant engineering business. To better exploit global market opportunities in engineering as a major growth area for the Group,inJanuary2014wecombinedthepreviouslyseparatecompaniesThyssenKruppUhdeandThyssenKruppResource Technologies Hcreated from ThyssenKrupp Polysius and ThyssenKrupp FördertechnikI under the roof of ThyssenKrupp Industrial Solutions. As a global, integrated engineering and construction company, ThyssenKrupp Industrial Solutions focuses market strategy, presents a single face to the customer and supports the global exchange of knowledge and engineeringandprojectmanagementcapabilitiesacrossallitsbusinesses.thiswillhelpusachieveourgrowthtargetsand increaseefficiency. Inadditiontotheplantengineeringoperations,managedbythetwobusinessunitsProcessTechnologiesHpreviouslyUhdeI andresourcetechnologieshpreviouslypolysiusandfördertechniki,theindustrialsolutionsbusinessareaalsocomprises the Marine Systems and System Engineering business units. The product portfolio encompasses chemical plants and refineries HProcess TechnologiesI, equipment for the cement industry and innovative solutions for the mining and processingofrawmaterialshresourcetechnologiesi,navalshipbuildinghmarinesystemsi,andproductionsystemsforthe autoindustryhsystemengineeringi. Higherorderintakeandsales IndustrialSolutionscontinuestoperformverypositively.Startingfromanalreadyveryhighlevel,orderintakeinthefirst9 months2013/2014wasupbyafurther3%year-on-yearat 4.5billion.Onacomparablebasis adjustedinparticularfor exchangerateeffects theincreasewas7%.againstthe2012/2013,orderintakegainedasmuchas33%. Sales in the first 9 months 2013/2014 rose 11% to 4.5billion; on a comparable basis sales were 15% higher. At 1.6billion,salesinthewereupyear-on-yearbyasteep21%,benefitingfromtherecognitionofrevenuesfrom anumberofmajorcontracts,particularlyatprocesstechnologies. ProcessTechnologieswasunabletomatchitsveryhighorderintakeofthefirst2012/2013,whichwasmainly drivenbytheshalegasboomandlargeordersforfertilizerplantsintheusa.however,newordersincreased significantlyyear-on-year. Resource Technologies recorded brisk demand particularly for cement plants and increased its order intake slightly comparedwiththefirst2012/2013.withtwocementlinesinboliviaandsaudiarabia,weagainwonmajororders inkeygrowthregions.however,demandfornewminingequipmentremainedweakeroverallinthe. InthefirstthemarketforSystemEngineeringshowedaslightdeclineyear-on-year.However,inthe 2013/2014orderintakepickedupsharply,particularlyasaresultofordersintheautomotivesectorintheUSAandUK.We continuetoseegoodprojectopportunitiesinproductionsystemsforboththeautomotiveandaerospaceindustries. The high level of new orders at Marine Systems in the first 9 months 2013/2014 was mainly due to a major contract received in the 1st quarter to supply two submarines to Singapore. In view of the announcement by the Swedish governmentthatfuturenavalshipbuildingprogramswillbecarriedoutnationally,wereachedagreementwithsaabatthe endofjune2014onthesaleoftheswedishshipyardthyssenkruppmarinesystemsabhformerlykockumsiwithsitesin Malmö,KarlskronaandMuskö.Thesaleoftheoperations,whicharemainlyfocusedonrepairanddesign,wascompleted onjuly22,2014.weareconcentratingournavalshipbuildingoperationsatthesitesinkiel,hamburgandemden.these operationsdeliverareliablecontributiontothegroup'searnings. The generally solid order situation of the Industrial Solutions business area gives us a continuing high order backlog of 14.6billion,providinglong-termplanningcertaintyandcapacityutilizationforthenexttwotothreeyears.

19 InterimManagementReport2013/2014Businessareareview 18 Significantearningsimprovement,continuinggoodmarginquality Adjusted EBIT in the first 9 months 2013/2014 improved again by a significant 18% year-on-year to 562million. 3rd quarteradjustedebitshowedanevenlarger22%increaseat 190million.Theclearearningsimprovementprofitedfrom order billings in the fertilizer business of Process Technologies and efficiency gains in all business units. Adjusted EBIT margininthefirstalsoincreasedyear-on-yearandwasagainwellwithinthedoubledigittargetcorridorat12.6% H9 months 2012/2013: 11.8%I. 9-month earnings were impacted slightly by special items of 4million, mainly due to restructuringmeasuresinthe2ndquarter.accordinglyebitfortheperiodcameto 558million. MaterialsServices MaterialsServicesinfigures 2012/ /2014 Change in% 2012/ /2014 Change in% Orderintake million 8,800 9, ,047 3, Sales million 8,794 9, ,056 3, EBIT million EBITmargin % AdjustedEBIT million AdjustedEBITmargin % Employees4June305 25,994 30, ,994 30, With some 500 locations in 35 countries, the Materials Services business area specializes in materials distribution and technicalservices.inconnectionwiththeendingofallfinanciallinkswithoutokumputhefullvdmgroup,theastgroup withitsplantsandtheitalianservicecenteraswellasfurtherstainlesssteelservicecentersingermany,france,spainand TurkeyweretransferredfromOutokumputoThyssenKruppandassignedtotheMaterialsServicesbusinessareawitheffect fromfebruary28,2014.thesecompaniesandbusinesseshavebeenincludedinthebusinessarea'sfiguressincemarch 01,2014.ASTinparticularistoprofitfromthebusinessarea sglobaldistributionorganizationinthefuture. Highersalesinalmostallregions In the first 9 months of the fiscal year, the companies in the Materials Services business area sold 9.7million tons of materials,anincreaseofalmost30%.inaddition,over400,000tonsofmaterialwassoldbythenewunitsvdmandast. Warehouseshipmentsofmetalswereup5%year-on-yearat4.2milliontons.Thewarehousingbusinessalsoincludesa widerangeofservicessuchasprimaryprocessingaswellasinventorymanagementforourcustomers.sales volumeswereimpactedbothyear-on-yearandquarter-on-quarterbyourwithdrawalfromrolledsteelwarehousebusiness inrussia;wenolongersawanyrealisticchanceofcompetingwiththedirectsalesofrussiansteelproducers.inallother regionsshipmentsincreasedfurtherthankstointensivesalesinitiatives.despitecontinuedstrongcompetitionweincreased the volume of direct-to-customer business by almost 20% to 2.7 million tons in the first 9 months. Shipments of raw materials more than doubled to 2.9 million tons, mainly attributable to significantly higher shipments of coke/coal and specialores.shipmentsofalloysandmetalsalsoincreasedinboththequarterandthe9-monthperiod.

20 InterimManagementReport2013/2014Businessareareview 19 InthefirstMaterialsServices'orderintakeatalmost 10billionwas13%higheryear-on-year;onacomparable basis the increase was 4%. In the same period we achieved sales of over 9.8billion, 1billion or 12% more than in 2012/2013.ExcludingVDMandAST,saleswereonlyattheprior-yearleveldespitesignificantlyhighervolumes;thesame appliestosales,bothquarter-on-quarterandyear-on-year.themainreasonsweresignificantlyloweraverage pricesinthecurrentfiscalyear,productmixchangesinthedirect-to-customerandrawmaterialsbusiness,andtheeuro/us dollar exchange rate. Average prices for rolled steel and particularly also for stainless steel, nonferrous metals and plastics werewellbelowprior-yearlevels.thesamewastrueofmostrawmaterials. Inconnectionwiththehighgrowthinvolumestherewasanabove-averageincreaseinsalesinourdirect-to-customerand raw materials trading businesses, while warehouse sales of plastics also recorded double-digit growth. Services for the aerospaceindustryremainedstableatahighlevel.thesamewastrueofourservicecenterbusinessfortheautomotive sector.salesofsteelmillserviceswereloweryear-on-yearforportfolioreasons. The performance programs in connection with impact primarily aimed at optimizing our logistics network, operating structure,andadministration werecontinuedwithhighintensityworldwide;inallregionsandbusinessunitsthenumber ofemployeeswasadjustedinlinewiththemarketsituation.ineuropethelegalentitiesarebeingfurtherreduced.atthe sametimetheharmonizationandoptimizationoftheitlandscapeisprogressingsystematically;morethan7,000usersin thebusinessareanowworkonastandardsaptemplate. Materials Servicesremainsfocusedonexpandingitssector-specific portfoliosof products,logisticsandservices. Anew competenceandcoordinationcenteriscurrentlybeingsetupfortheoilandgasindustry.aftertunisia,anewbaseforthe aerospace industry in India started operation. In Mexico the warehousing and processing capacities for the automotive industryweremodernizedandexpanded. ThetransferofVDM,ASTandthestainlesssteelservicecentersaddedmorethan5,000peopletotheMaterialsServices workforce. The integration of the service centers in Germany, France, Spain and Turkey into the existing business area organizationiscomplete.inrecentmonthswecarriedoutadetailedanalysisofthebusinessmodelsandplansofvdmand AST. In particular for AST an extensive new business plan was developed which provided for an intensification and restructuringofsalesaswellasfar-reachingrestructuringmeasuresinproductionandadministrationwithaconsiderable reductionintheworkforce.thedetailswillbethesubjectofintensivenegotiationswiththestakeholdersoverthecoming months.atvdmthefocusnowisonintensifyingandsupportingtherestructuringprogramsandgrowthinitiativesalready identified.

21 InterimManagementReport2013/2014Businessareareview 20 AdjustedEBITlargelystableindifficultpriceandcompetitiveenvironment Inadifficultpriceandcompetitiveenvironment,adjustedEBITof 148millioninthefirstand 58millioninthe 2013/2014waslargelylevelwiththecorrespondingprior-yearperiodsthankstointensivesalesinitiativesand performanceprograms.withtheexceptionofthenewunitsastandvdm,whichmadeanegativecontributionofaltogether 5million,allbusinessoperationsmadepositivecontributionstoearnings. EBIT came to 124 million, up 194million from the prior year. The comparable period in 2012/2013 was impacted by specialitemsof 230million,mainlyforexpenseinconnectionwiththerailcartel.Thespecialitemsinthecurrentfiscal year mainly comprise a disposal gain in the raw materials trading business and various restructuring and impairment charges,inparticularforouroperationsinrussiaandspain. SteelEurope SteelEuropeinfigures 2012/ /2014 Change in% 2012/ /2014 Change in% Orderintake million 7,338 6, ,315 2, Sales million 7,327 6, ,562 2, EBIT million EBITmargin % AdjustedEBIT million AdjustedEBITmargin % Employees4June305 27,609 26, ,609 26, TheSteelEuropebusinessareastandsforthedevelopment,productionandmarketingofpremiumflatcarbonsteel,mainly in the European market. Key customers are the auto industry and other steel-using sectors. The range also includes productsforattractivespecialistmarketssuchasthepackagingindustry. Ordersandsalesdownduetodisposalsandlowerprices SteelEurope'saveragevolumeofbusinessoverthefirstwasloweryear-on-year.Thedeclinewasduepartlyto disposalsandpartlytocontinuedinadequatesteelpricesontheeuropeanmarket.orderintakecameto 6.9billion,down 6%fromtheprior-yearperiodbutlargelystableonacomparablebasis.Ordervolumeswereslightlyhigheronaveragethan a year earlier. However the 3rd quarter was slightly weaker than the prior quarter, which was characterized by stronger marketgrowthandstockbuildingbyourcustomers. Sales inthereportingperiod fell by9%to 6.7billion. Onacomparablebasis in particularexcludingthesoldtailored blanksbusiness thedropinsaleswas2%.themainreasonwasloweraveragenetsellingprices;fromthe2ndquarter the previous negative trend in spot market prices was reflected in mainly lower price agreements with our customers. Shipments decreased in total by 2% to 8.5million tons, and on a comparable basis increased by 1%. Shipments of medium-wide strip and heavy plate showed substantial growth year-on-year. In the 3rd quarter shipment targets were missedbecauseofadropinproductionduetooperationalissuesandsignificantdisruptionstoourproductionandshipping logisticsduetoastorm.stormelacauseddamagetoourmainmeansoftransportation,therailnetwork,intheformof destroyed overhead wires and blocked lines, affecting our shipments into the 4th fiscal quarter. As a result, 3rd-quarter sales volumes were 8% lower quarter-on-quarter; only tinplate profited from the seasonal improvement and registered increasingvolumes. Increasedcrudesteelproductioninpreparationforblastfurnacerelining At9.7milliontons,crudesteelproductioninthereportingperiodincludingsuppliesfromHüttenwerkeKruppMannesmann HHKMIwas11%higheryear-on-year.ProductionandslabpurchasesfromHKMwereincreasedinthemonthsleadingupto thereliningofblastfurnace2induisburg,whichbeganonscheduleinjune.alsoinjunewebeganpurchasingslabsagain foralimitedperiodfromourbrazilianplantthyssenkruppcsatofurtheroptimizethesupplyofstartingmaterialduringthe

22 InterimManagementReport2013/2014Businessareareview 21 reline.overthefullreportingperiodrolledsteelproductionforcustomerswaslevelwiththeprioryearat9.0milliontons.in thestorm-relatedlogisticaldisruptionsaswellasoperationalissuesledtotemporarystoppages.asaresult3rd quarterrolledsteelproductionfellsharplyyear-on-year. "Best-in-ClassReloaded"takingeffect:EBITsignificantlyhigherindifficultmarketenvironment AdjustedEBITinthereportingperiodincreasedby 83millionto 184million.ExcludingtheprofitofTailoredBlanksstill contained a year earlier, the operating earnings improvement was even more pronounced. Within the year the already positivetrendofpreviousmonthscontinuedinthe:adjustedebitwassignificantlyupfromtheprevioustwo quarters at 103million. While the inadequate steel price level continued to impact earnings, the systematic implementation of measures among other things under the"best-in-class Reloaded" program had positive effects on earnings.reducedrawmaterialcostsalsocontributedtotheimprovementinearnings.specialitems,mainlyrestructuring charges,impactedearningstoamuchlesserextentthanayearearlier;ebitinthefirstcameto 164million.In theprioryear,significantexpensesinconnectionwith"best-in-classreloaded"resultedinebitof 33million. SteelAmericas SteelAmericasinfigures 2012/ /2014 Change in% 2012/ /2014 Change in% Orderintake million 1,565 1, Sales million 1,462 1, EBIT 15 million EBITmargin % AdjustedEBIT 15 million AdjustedEBITmargin % Employees4June305 4,100 3, ,100 3, Prior-yearfigureshavebeenadjusted. WithitssteelmillinBrazilHThyssenKruppCSAItheSteelAmericasbusinessareasuppliestheAmericanmarketwithhighqualityslabs.AspartoftheStrategicWayForwardThyssenKrupphaddecidedtoselltheThyssenKruppSteelUSArolling andcoatingplantincalvert/alabama;acontractonthesalewassignedwithaconsortiumofarcelormittalandnipponsteel &SumitomoMetalCorporationonNovember29,2013,andtheclosingtookplaceonFebruary26,2014.Theagreement alsoincludesalong-termslabsupplycontractforthebraziliansteelmill.consequently,thesteelamericasbusinessarea whichhadbeenclassifiedasadiscontinuedoperationinaccordancewithifrs wasreclassifiedasacontinuingoperation at the end of the 2012/2013 fiscal year; within the business area, ThyssenKrupp Steel USA was reported as a disposal groupuntiltheendoffebruary2014.

23 InterimManagementReport2013/2014Businessareareview 22 Increasesinorders,salesandproduction At 1.6billion,orderintakeinthefirst2013/2014wasup2%year-on-yeardespitenegativeexchangerateand portfolioeffects.thecontributionsfromthyssenkruppsteelusaareincludeduptotheclosingofthesaleattheendof February2014.Ona comparablebasisnew ordersincreased by15%.3rd quarter orderintakewas17%lower year-onyear;onacomparablebasishoweverordersgained2%.quarter-on-quarterthevalueofordersreceiveddecreasedby28% duetothesaleofthyssenkruppsteelusa,butordervolumeswereupby13%atalmost1.1milliontons.at 1.5billion, salesinthefirstwere4%higherthanayearearlier,reflectinginparticularhighershipmentsandsellingprices;on acomparablebasissalesincreasedby14%.salesweredownbothquarter-on-quarterandyear-on-year,buton a comparable basis they showed a sharp rise year-on-year the increase was 4%. The Brazilian steel mill raised slab productionto3.1milliontonsinthefirst,19%higherthanayearearlier.1.9milliontonsofslabswassuppliedto the rolling and coating plant in Calvert/Alabama, and 0.2million tons to Steel Europe. With demand for the high-quality slabsbrisk,goodprogressisbeingmadewithbuildingacustomerbaseinnorthandsouthamerica. *FiguresforQ12012/2013toQ12013/2014havebeenadjusted. Clearimprovementinearnings AdjustedEBITinthereportingperiodimprovedby 332millionyear-on-yearto H27Imillion.Thispleasinggrowthwasdue in particular to higher and more efficient capacity utilization, cost optimization, structurally improved reducing agent consumption,savingsmeasuresfromthecorporateprogramimpact,andpositivepriceeffectsonthenorthamericanflat steelmarket.adjustedebitalsoshowedamarkedimprovementontheprioryear,whichwasimpactedbyan unscheduledseveralweek-longstoppageofblastfurnace2.quarter-on-quarter,earningslikewiseincreased,reflectingan insurancerecoveryfromtheblastfurnacedamagelastyearaswellasfurtheroperatingprogress. EBIT came to 126million in the first 9 months 2013/2014, 485million higher than the year before; in addition to operatingimprovements,thiswasmainlyduetohighpositivespecialitemsfromthedisposaloftheussiteincalvertinthe 2nd quarter and positive net special items from the updated valuation of a long-term freight agreement. The negative special items in the 3rd quarter 2013/2014 mainly result from the valuation effect of the above-mentioned freight agreement,whichinthewasnegative. Thechangeinthenumberofemployeesmainlyreflectsthereallocationatthebeginningofthefiscalyearofasteelmill service provider working for ThyssenKrupp CSA from Materials Services to Steel Americas, and the sale of the ThyssenKruppSteelUSArollingandcoatingplantinFebruary2014.

24 InterimManagementReport2013/2014Businessareareview 23 CorporateatThyssenKruppAG Corporate comprises the Group s head office and the shared service activities. The Group is managed centrally by ThyssenKrupp AG as corporate headquarters. To achieve greater global integration, the Group has adopted a threedimensionalmanagementstructurehnetworkorganizationimadeupofoperatingbusinesses,functionsandregions.aspart ofthisnewmanagementmodel,regionalheadquartersarenowoperatinginbrazil,india,chinaandtheasia/pacificregion. TheregionalheadquartersinNorthAmericahasbeenfullyoperationalsincethebeginningofthepriorfiscalyear. The shared services activities comprise Business Services Hfinance and human resourcesi, IT and Real Estate including non-operatingrealestate.salesofservicesbycorporatecompaniestogroupcompaniesandexternalcustomerscameto 126millioninthefirst, 15millionlessthanintheprior-yearperiod. AdjustedEBITatCorporateinthefirst2013/2014was H358Imillion,comparedwith H310Imillionayearearlier. Costreductionsunderimpactcouldonlypartlyoffsethigherexpensesforcorporateinitiatives,inparticularthedataand processharmonization program HdaprohI. Inthe2013/2014adjustedEBITcameto H136Imillion,compared with H93Imillionayearearlier. EBITinthefirstcameto H453Imillion,comparedwith H334Imillionintheyear-earlierperiodandwasimpacted by net special items of 95million. These special items include in particular income from the deconsolidation of the US shellcompanythebuddcompanyinconnectionwithitswindingdowninachapter11caseandalossfromthecompletion ofthesaleoftheoutokumpuinvestmentinthe2ndquarter2013/2014.inthespecialitemsamountedtoonly 2million. StainlessGlobal4discontinuedoperation5 ThemergeroftheStainlessGlobalbusinessareawiththeFinnishcompanyOutokumpuwascompletedonDecember28, 2012.Inthe1stquarter2012/2013upto itsexitfromthegroup, StainlessGlobalachieved orderintake of 1.3 billion, sales of 1.4 billion and EBIT of 72 million. After the exit, income and expenses were recorded in the first 9 months 2013/2014whichweredirectlyassociatedwiththesaleofStainlessGlobalandresultedinnetEBITof 184million.These relatemainlytothe1stquarter2013/2014andreflectthereversalofprovisionsrecognizedinconnectionwiththesaleof InoxumtoOutokumpufortheobligationtooffsetanynegativefinancialconsequencesforOutokumpuundermergercontrol requirements.

25 InterimManagementReport2013/2014Resultsofoperationsandfinancialposition 24 Resultsofoperationsandfinancialposition Analysisofthestatementofincome At 30,146million,netsalesfromcontinuingoperationsinthefirst2013/2014were 1,497millionor5%higher thanayearearlier.costofsalesfromcontinuingoperationsincreasedby 931millionor4%andthusatalowerratethan sales. The increase was mainly due to higher material expense. Gross profit from continuing operations improved correspondinglyby 566millionto 4,634million,whilegrossprofitmarginincreasedto15%. The 27millionincreaseinsellingexpensesmainlyreflectedhigherexpensesforsales-relatedfreight,insurancecharges andcustomsdutiesaswellasincreasedallowancesfordoubtfulaccounts. The 63 million increase in general and administrative expenses from continuing operations resulted mainly from restructuringexpenseincurredinthereportingperiodintheelevatortechnologybusinessareaandhigherconsultingand ITexpenses. The 232milliondecreaseinotherexpensesfromcontinuingoperationsrelatedmainlytotheprovisionsrecognizedinthe prioryearinthematerialsservicesbusinessareainconnectionwiththerailcartel. Othergainsattributabletocontinuingoperationswere 351millionhigherthanayearearlier.Thiswasmainlyduetothe winding-downinthereportingperiodofthenon-operatinguscompanythebuddcompanyandthesaleofthyssenkrupp SteelUSA. The 53millionimprovementinincomeattributabletothecontinuingoperationsfrominvestmentsaccountedforusingthe equitymethodwasmainlyduetotherecognitionoflowerlossesasaresultofthecessationofequitymethodaccounting forthesharesinoutokumpuoyjinthe1stquarter2013/2014.the 339millionriseinfinancingincomefromcontinuing operationswasmainlytheresultofhigherexchangerategainsinconnectionwithfinancetransactions.the 592million increase in financing expense from continuing operations was mainly due to higher currency losses in connection with financetransactionsandtothelossfromthesaleoftheshareholdinginoutokumpuoyj. TheincomefromcontinuingoperationsHbeforetaxIof 301millionresultedintaxexpensefromcontinuingoperationsof 251 million in the reporting period, mainly in connection with non-tax-deductible expense from the Outokumpu shareholdinganditssaleand asintheprioryear valuationallowancesfordeferredtaxassets. Aftertakingintoaccountincometaxes,incomefromcontinuingoperationscameto 58million. The discontinued operations achieved income of 184 million in the reporting period compared with 64 million a year earlier.the 120millionincreasewasmainly duetoa 266millionimprovementin current incometo 184million;this mainlyreflectsthereversal oftheprovisionforpossibleeffectsfrommerger controlrequirementsinconnectionwiththe saleofinoxumtooutokumpu.thiswaspartlyoffsetbythe 146milliongainonthedisposalofthestainlesssteelbusiness recognizedonlyintheprior-yearperiod. Includingtheafter-taxincomefromdiscontinuedoperations,netincomeof 242millionwaspostedinthereportingperiod, comparedwithanetlossof 570millionayearearlier. Inthereportingperiod,earningspersharebasedonthenetincomeattributabletotheshareholdersofThyssenKruppAG came to 0.44, a year-on-year improvement of Earnings per share from continuing operations came to 0.11, comparedwitha 1.15lossayearearlier.

26 InterimManagementReport2013/2014Resultsofoperationsandfinancialposition 25 Analysisofthestatementofcashflows The amounts taken into account in the statement of cash flows correspond to the item Cash and cash equivalents as reported in the statement of financial position and also include the cash and cash equivalents relating to the disposal groups including the discontinued operations until the time of their actual sale. For the 1st quarter 2012/2013 the discontinuedoperationsincludecashflowsattributabletotheoperationsofstainlessglobal. Inthereportingperiodtherewasanetcashoutflowfromoperatingactivitiesof 168million,comparedwithacashinflow of 439millionayearearlier.Ofthe 607millionoveralldeterioration, 801millionrelatedtothecontinuingoperations, whichrecordedacashoutflowof 169millioninthereportingperiodcomparedwitha 633millioncashinflowintheprior- yearperiod.thedeteriorationwasdueinparticulartoanincreaseincapitalemployedinoperatingassetsandliabilities. Investingactivitiesresultedinanetcashinflowof 388million,comparedwithacashinflowof 71milliontheyearbefore. Themainreasonsforthe 317milliondifferencewerethe 149milliondecreaseincapitalexpendituresforproperty,plant and equipment and intangible assets in the continuing operations as well as the absence of the 99 million capital expendituresinthediscontinuedoperationsreportedayearearlier.proceedsfromdisposalsofconsolidatedcompaniesin thereportingperiodrelatedmainlytothesaleofthyssenkruppsteelusa,whiletheprioryearwasimpactedinparticular bythesaleofthestainlesssteelbusinesstooutokumpu.inaddition,thewinding-downofthepreviouslyconsolidatednonoperating US company The Budd Company in a Chapter 11 case resulted in a 279 million disposal of cash and cash equivalentsinthe2ndquarter2013/2014. Free cash flow, i.e. the sum of operating cash flows and cash flows from investing activities, decreased by a total of 290million to a positive 220 million. The absence of prior-year 293 million negative free cash flow from the discontinuedoperationswaspartlyoffsetbya 583millionreductioninfreecashflowinthecontinuingoperationsinthe reportingperiodmainlyduetoreducedoperatingcashflows. Financing activities resulted in a net cash outflow of 508 million, compared with a cash inflow of 971 million a year earlier.aswellastheabsenceofcashinflowsfromthediscontinuedoperations,thedifferenceof 1,479millionincluded 1,241millionattributabletothecontinuingoperations.Thismainlyreflectedtwopartlyoffsettingeffects:Inthereporting periodtherewasa 1,221millionnetrepaymentofborrowings,whileintheprior-yearperiodtherewerenetproceedsfrom borrowings of 1,142 million. The associated 2,363 million reduction was partly offset by cash inflows of 878 million fromthecapitalincreasecarriedoutindecember2013. Analysisofthestatementoffinancialposition ComparedwithSeptember30,2013,totalassetsdecreasedaltogetherby 33millionto 35,264million.Thisincludesa currencytranslation-relateddecreaseof 179million,mainlyduetomovementsintheUSdollarexchangerate. Taking into consideration an exchange rate-related reduction of 58 million, non-current assets decreased altogether by 930 million. The main reason was the 964 million reduction in other financial assets as a result of the transfer to OutokumpuonFebruary28,2014ofthefinancialreceivablecreatedinconnectionwiththesaleofInoxum.Theoperations ofvdmandastacquiredinexchangeandconsolidatedforthefirsttimewerethemainreasonforthe 425millionincrease inproperty,plantandequipment.thedisposalofthe29.9%shareholdinginoutokumpuoyjtomeettherequirementsof theeuinthisconnectionwasthemainreasonforthe 337milliondecreaseininvestmentsaccountedforusingtheequity method.the 114millionincreaseinothernon-currentnon-financialassetsmainlyreflectedadvancepaymentsmadefor property, plant and equipment particularly in the Steel Europe business area. The 162 million decrease in deferred tax assetsmainlyreflectedthewinding-downofthenon-operatinguscompanythebuddcompanyinachapter11case. Currentassetsincreasedbyatotalof 897million;thisincludedacurrencytranslation-relateddecreaseof 121million.

27 InterimManagementReport2013/2014Resultsofoperationsandfinancialposition 26 At 7,864 million, inventories at June 30, 2014 were 1,513 million higher than at September 30, The rise was mainlyduetothefirst-timeconsolidationofvdmandastaswellasthereclassificationoftheformerdisposalgroupberco atmarch31,2014. Tradeaccountsreceivableincreasedaltogetherby 755millionto 5,711million.Aswellastheaforementionedfirst-time consolidationofvdmandastandthereclassificationofberco,thisalsoreflectedincreasedreceivablesinconnectionwith long-termconstructioncontractsintheelevatortechnologybusinessarea. The 180 million decrease in other current financial assets was mainly due to the repayment of a receivable from OutokumpuOyj. The 462millionincreaseinothercurrentnon-financialassetswasmainlyduetoadvancepaymentsmadeinconnection withtheprocurementofinventoriesandotheradvancepaymentsaswellashigherrefundentitlementsinconnectionwith non-incometaxes. The 302milliondecreaseincashandcashequivalentsmainlyreflectedthe 1,000millionrepaymentofabondinJune 2014and 1,471millionrepayment of otherfinancial debt.this was partly offset by proceeds of 878millionfromthe capitalincreasecarriedoutindecember2013andproceedsof 1,250millionfromtheissueofabondinFebruary2014. The 220millionpositivefreecashflowgeneratedinthereportingperiodalsocontributed. Assetsheldforsalewere 1,431millionlowerat 112million,mainlyasaresultofthedisposalofThyssenKruppSteelUSA andtheaforementionedreclassificationofberco. Total equityatjune30,2014was 3,173million,up 661millionfromSeptember30,2013.The mainreasonwasthe capitalincreasecarriedoutatthebeginningofdecember2013whichraisedtotalequityby 878million.Thenetincomeof 242million forthereportingperiodalso contributedtotheincrease.thiswas partly offset bythe 97million currency translationlossesrecognizedinothercomprehensiveincomeandactuariallosseshaftertaxesiof 360million.Theequity ratioimprovedto9.0%. Non-currentliabilitiesdecreasedbyatotalof 597million.Thisincludeda 500millionreductioninnon-currentfinancial debt, mainly reflecting a 989 million reduction in liabilities to financial institutions. This was partly offset by the aforementionedissueofa 1,250millionbond,whichinturnwaspartlyoffsetbythereclassificationofa 750millionbond due in March 2015 to current financial debt. The 230 million decrease in accrued pension and similar obligations was mainlyduetolowerprovisionsforhealthcareobligationsinconnectionwiththewinding-downofthebuddcompany.this waspartlyoffsetbyanincreaseasaresultoftheupdatedinterestratesusedfortherevaluationofpensionobligationsat June30,2014. Current liabilities decreased in total by 97 million. This included a 107 million reduction due to currency translation effects. The 335millionreductioninothercurrentprovisionswasmainlytheresultofthereversalofaprovisionrecognizedinthe prioryear for possibleeffectsfrommergercontrolrequirementsinconnectionwiththesale ofinoxumtooutokumpu.in addition,aprovisionrecognizedintheprioryearwasutilizedinthereportingperiodonthebasisofasettlementreached withdeutschebahninconnectionwiththerailcartel.

28 InterimManagementReport2013/2014Resultsofoperationsandfinancialposition/Subsequentevents 27 At 4,518million,tradeaccountspayablewereupby 805millionfromSeptember30,2013.Thiswasmainlyduetothe first-timeconsolidationofvdmandastandthereclassificationofberco.the 721decreaseincurrentfinancialdebtwas mainly connectedwiththe 1,000millionrepayment of a bondinjune2014andthe 150millionrepayment ofanote payableinmay2014;inadditiontherewasa 255millionreductioninliabilitiestofinancialinstitutions.Thiswaspartly offsetbytheaforementionedreclassificationofabondpreviouslyclassifiedasnon-current.the 221milliondecreasein othercurrentfinancialliabilities mainlyreflectedtherepayment ofliabilitiestoassociatedcompanies.higherliabilitiesin connectionwithlong-termconstructioncontractsandariseinadvancepaymentsreceivedandliabilitiesfromnon-income taxeswerethemainreasonsforthe 559millionincreaseinothercurrentnon-financialliabilities. The 141 million reduction in liabilities associated with assets held for sale mainly reflected the reclassification of the disposalgroupberco. Subsequentevents Therewerenoreportableevents.

29 InterimManagementReport2013/2014ThyssenKruppstock 28 ThyssenKruppstock ValuepotentialfromStrategicWayForwardakeydriverforthestock ThyssenKrupp sstockisperformingverywellinthecurrentfiscalyear.thegrowthinthestock svaluehasbeendrivenby progresswiththestrategicwayforward,asreflectedclearlyinfurtherimprovementsinoperatingbusinessandafurther reductionofrisks. OnJune30,2014ThyssenKrupp sstockstoodat 21.29,up20.4%fromSeptember30,2013.InthesameperiodtheDAX anddjstoxxgained14.4%and12.6%respectively. Inthethestockprofited mainly fromtheraisedforecastforsalesandadjustedebitannouncedinmid-may 2014.InthetwoquartersbeforethatthemainfactorswereportfoliomeasuressuchasthesaleoftheThyssenKruppSteel USA rolling and coating plant, the slab supply contract for ThyssenKrupp CSA, the ending of all financial links with OutokumpuandtheGroup ssuccessfulfinancingmeasuresontheequityanddebtside. BrokerfieldtripsasanefficientdialogueplatformforinvestorsandCompany The positioning of ThyssenKrupp as a diversified industrial group offers clear upside potential. Together with our benchmarkingambitionwewanttoachieveasituationwherethegroup sstockmarketvaluereflectsthefairvalueofallour businesses. A key role in this is played by the commitment of our leadership teams to their operating and strategic goals and their systematic involvement in the dialogue with investors and analysts. Broker field trips to ThyssenKrupp are an efficient platformforthis.theycanlastuptoafulldayandgiveinternationalinvestorstheopportunitytomeetandtalkindepth withgroupexecutiveboardmembersaswellasexecutivesandindustryexpertsfromourbusinessareas.fiveofthesefield tripstookplacefromfebruarytojune2014. NorthAmericamainregionforfreefloat ThecapitalstockofThyssenKruppAGof 1,448,801,144.32isdividedinto565,937,947no-parshares. TheAlfriedKruppvonBohlenundHalbachFoundation,Essen,withaholdingof23.03%ofthecapitalstock whichisnot included in free float is the biggest shareholder, followed by Cevian Capital, Stockholm and Zurich, with a holding of 15.08%.Privateinvestorsholdapprox.10%ofthecapitalstock.Theremainingsharesarewidelyheldinternationally.

30 InterimManagementReport2013/2014ThyssenKruppstock/Rating/Innovations 29 IntermsofdailytradingvolumeinThyssenKruppstock,byfarthebiggestroleisplayedbymarketparticipantsfromtheUK and the USA. North America is ThyssenKrupp s main region for free-float shareholders. US and Canadian investors held around20%ofthefreefloatattheendofmarch2014,withinvestorsintheukandgermanyaccountingforaround9%and 8.5%respectively. Rating We have been rated by Moody s and Standard& Poor s since 2001 and by Fitch since In December 2013 Fitch loweredthyssenkrupp sratingfrombbb-tobb+.ourratingsarethereforebelowinvestmentgrade.allthreeratingshavea negativeoutlook.anegativeoutlook meansthattheratingagency monitorstherating more closelyandthenreviews it, normallywithinaperiodof12to18months. Long-term rating Short-term rating Standard&Poor's BB B negative Moody's Ba1 NotPrime negative Fitch BB+ B negative Innovations Outlook AspartoftheexpansionofourserviceoperationstheElevatorTechnologybusinessareatogetherwithMicrosoftandCGI has developedasystemthatraiseselevatorsafetyandreliabilitytoanew level.itusesalarge number ofsensorsthat monitoreverythingfrommotortemperaturetoshaftalignment,cabspeedanddoorfunctioning.thedatatheygatherare processed intelligently and made available centrally to service technicians. It means ThyssenKrupp is able to offer predictive/preventiveservice.theaimistomaximizetheuptimeofourelevators. InthefutureThyssenKruppwillsupportitscustomersincreasinglywithsustainableproductsandsolutions.Inthiscontext theindustrialsolutionsbusinessareaisworkingonthefurtherdevelopmentofredoxflowtechnology.theaimistoenable thelarge-scaleuseofvanadiumredoxflowbatteries.theseareabletostorelargeamountsofenergy.otheradvantages include high efficiency of up to 80%, modular construction, and separate scalability of capacity and stored energy. The development work is focused on increasing the area of the electrochemically active cells and with it the capacity of the batteries. OurTechCenterControlTechnologyiscurrentlyworkingonthetechnicalandcommercialfundamentalsforaviableCross Energy Management System. The idea is to adapt power consumption better to the constantly changing supply of renewableenergies.thetechcentercontroltechnologyisworkingonsuitableprocessesandtechnologies.theaimisto managetheproductionprocessesofindustrialconsumerssothatconsumptionadaptstotheenergysupplyfromrenewable sources.

31 InterimManagementReport2013/2014Employees/Compliance 30 Employees AtJune30,2014,ThyssenKruppemployed160,168peopleworldwide,4,617or3.0%morethanayearearlier.Compared withseptember30,2013theheadcountincreasedby3,312or2.1%.thisgrowthwasmainlyduetothetransferof5,085 VDMandASTemployeesfromOutokumpu.ThesaleofThyssenKruppSteelUSAresultedina1,522decrease.Thebalance wasduetoamainlyoperationaldecreaseinpersonnelbyaround250employees:areductionofapprox.1,800employees at Steel Europe, Steel Americas, Material Services and Corporate under various initiatives and measures as part of the impactprogramwasoffsetbyanincrease particularlyoutsidegermany ofapprox.1,550employeesatourhigh-growth capitalgoodsbusinessesaspartoftheireffortstodevelopnewcustomersandmarketsintheamericasandasia.asthe result ofinternalrestructuring,1,412employeesmovedfromthe MaterialsServicesbusinessarea tothe Steel Americas businessarea. In Germany the headcount rose by 959 compared with September 30, 2013 to 59,123; without the transfer of the VDM employees,thegermanworkforcewouldhavedecreased.atjune30, %ofallemployeeswerebasedineurope outsidegermany,12.7%inthenaftaregion,13.5%insouthamerica,15.7%inasia inparticularinchinaandindia and1.4%intherestoftheworld. Compliance The anticorruption and antitrust compliance program with its three pillars inform, identify and report and act was rigorously continued and refined in the reporting period. The focus was on carrying out a Groupwide bottom-up risk assessmentandworkingonacompliancestrategyforthecomingyearsupto2020. InformationonthecartelinvestigationatThyssenKruppSteelEuropeandtheassociatedbusinessriskscanbefoundinthe section Opportunitiesandrisks. Groupwideriskassessment Wecarried outagroupwidebottom-upriskassessmentinthereportingperiodwitha significantlywiderscopethanthe previoustop-downassessment.basedonadetailedquestionnaireweanalyzedobjectiveantitrustandcorruptionrisksat GroupcompanylevelandthedegreeofimplementationofthecomplianceprogramattheindividualGroupcompanies.Ina secondstepworkshopswillbeheldatvariousgroupcompaniestodevelopmeasurestocountertheidentifiedrisks.the resultsofthebottom-upriskanalysiswillfacilitatemorefocusedmanagementofthecomplianceprogram.

32 InterimManagementReport2013/2014Compliance/Macroandsectorenvironment 31 Furtherdevelopmentofthecomplianceprogram:Compliancestrategy2020 Since its introduction our compliance program has been continuously optimized to take account of current compliance developments,includingthefindingsfromourinternalcompliancework.thecomplianceorganizationiscurrentlycarrying outaprojecttodeterminethefuturecompliancestrategyofthyssenkruppupto2020. Compliance officers at corporate level, in the business areas and in the regions advise, inform and educate employees around the world about important legal requirements and internal policies and among other things carry out proactive compliance audits and investigate suspected cases of non-compliance. They are supported in the business areas and Groupcompaniesbyanetworkofaround320compliancemanagers generallymanagingdirectorsofgroupcompanies whoensurethecomplianceprogramisimplementedatoperatinglevelintheirareasofresponsibility. Thebasisforthesuccessofthecomplianceprogramisacorporateculturethatstandsforvaluessuchastransparency, integrity and credibility. Our employees bear personal responsibility and our managers additionally bear corporate responsibilityforcomplianceandbasetheiractionsonthese values.theprojecttodevelopthe compliancestrategywill alsosupportthechangerequiredinthemindsetandbehaviorofouremployeesandsocontributetoestablishinganeven strongercomplianceculturethroughoutthegroup.thyssenkrupphasaclearcommitmenttoensuringcompliancewiththe law and internal policies; violations, particularly of antitrust and anticorruption rules, are not tolerated under any circumstanceshzerotolerancei. Macroandsectorenvironment Globaleconomywithonlyslightlyhighergrowthin2014 Globaleconomicgrowthpickedupinthecourseof2013,butat2.9%wasstilllowerthantheweakprior-yearlevel.Leading indicatorsin2014todatesuggestonlyamoderateincreasethisyear.therehasbeenaslightimprovementinsentimentin theindustrializednations basedoncontinuedhighlyexpansionarymonetarypolicy pointingtogrowthofjustunder2% in2014comparedwithjustover1%lastyear.however,growthintheemergingeconomieswillslowslightlyfrom4.8%last yearto4.6%in2014.overallweexpecttheglobaleconomytogrowatarateof3.2%. Theeurozoneeconomycameoutofrecessioninthecourseoflastyear.However,therecoveryisproceedingonlyslowly, especially in major member states such as France and Italy. Necessary reforms and structural adjustments in some countrieswillcontinuetolimitgrowthopportunities.aftercontractingby0.4%lastyear,eurozonegdpwillgrowbyonly1% in2014.

33 InterimManagementReport2013/2014Macroandsectorenvironment 32 TheGermaneconomyisexpectedtoexpandstronglythisyear,drivenmainlybydomesticdemand.Inadditiontonecessary maintenance capital investment, there will also be an increase in expansion capital expenditures due to rising capacity utilizationandcontinuedfavorablefinancingconditions.consumerspendingwillalsoincreaseappreciablythankstorising incomesandasolidlabormarket.however,foreigntradeisexpectedtogenerateonlylittlegrowthimpetus.overall,german GDPwillincreasebyalmost2%in2014comparedwithonly0.4%lastyear. Afteraweather-relatedveryweakstarttotheyeartheUSeconomyisalsopickingupin2014.Inviewoftheadvanced deleveragingprocessamongprivatehouseholdsandcontinuedimprovementsonthelabormarket,consumerspendingis expected to accelerate. With economic conditions more favorable, business spending will also increase. Following 2.2% growthlastyear,theuseconomyisexpectedtoexpandby2.1%in2014. GDPgrowthinChinaisexpectedtoslowslightlyto7.5%thisyearfrom7.7%in2013.Whileforeigntradeshoulddeliver strongergrowthimpetus,thetargetedshifttowardsgreaterconsumption-ledgrowthisnotyetlikelytobeenoughtooffset weakerbusinessspending.followingweakexpansionofjust4.7%lastyear,gdpgrowthinindiawillquickensomewhatin 2014 on the back of slightly better foreign demand and accelerated implementation of ongoing infrastructure projects. However,at5.4%the pace ofexpansion will fallwellshort ofthe growthratesachievedinthe pastdecade.followinga moderateincreaseof2.3%in2013,economicgrowthinbrazilwillslowagainthisyeartojust1.5%.consumerspending, businessspendingandforeigntradehavebeenweakintheyeartodate.whatisneededinparticularisanimprovementin theconditionsforinvestment,forexamplethroughreducedbureaucracy,simplificationofthetaxsystemandinfrastructure expansion.followingweakgrowthofonly1.3%in2013,therussianeconomyisexpectedtodolittlemorethanstagnate thisyearduetothecontinuingcrisissituationandlargecapitalwithdrawals.

34 InterimManagementReport2013/2014Macroandsectorenvironment 33 Industrialactivitygainingmomentumoverall Automotive Sincethebeginning ofthe yeartheinternational automobilemarkets haveprofitedfromcontinuingstable growth in the USA, a recovery on the European market and persistent strong growth in China. In the USA, sales of light vehicleshpassengercars+lighttrucksiintheperiodjanuarytojune2014cameto8.1millionunits,up4%fromthesame periodlastyear.newcarregistrationsinchinainthe1sthalfof2014wereupbyover14%fromayearearlier,withthe marketgrowingtojustunder8.9millionunits.arecoverywasalsonoticeableineurope,wherethemarketgrewby3%to 8.4 million cars in the 1st half. One of the biggest growth drivers was the UK, the EU s second largest market, which recorded double-digit growth H11%I with 1.3 million new car registrations in the first six months. In Germany, the EU s biggestcarmarket,newregistrationswerealsobackup,increasingby2%year-on-yearto1.5millionunitsinthe1sthalf. Followinga4%increaseinglobalautoproductionlastyearto82.5millioncarsandlighttrucks,morevehiclesareagain expectedtorollofftheassemblylinesin2014;weforecastgrowthofupto4%to85.7millionunits.onceagaintherewill bewideregionaldifferences.chineseautoproductionispredictedtoincreaseby9%.intheusa,lastyear srapidgrowth willslowslightlytoaround5%.brazilianautooutputin2014willshrinkby8%to3.1millioncars,backatthelevelof2012. Japaneseautoproductionwillstagnatewithlowgrowthof0.4%.ThevehiclemarketinwesternEuropeappearsrobust,with growthof4%matchingtheglobalgrowthlevel.germany shighlyexport-orientedautomanufacturersincreasedtheiroutput by7%to3.0millionunitsinthe1sthalf.theforecastforthefullyear2014isgrowthof3%or5.7millionvehicles. Importantsalesmarkets * Vehicleproduction,millioncarsandlighttrucks World WesternEurope Germany USA Japan China Brazil Machineryproduction,real,in%versusprioryear Germany USA Japan China Constructionoutput,real,in%versusprioryear Germany USA China India Demandforfinishedsteel,milliontons World 1, ,525.0 Germany USA China *Forecast Machinery Aftera generally difficult2013machinery outputistrendingupwardsagainin2014inmostcountries, but without reaching the high growth rates of the past. In China, a temporary slowing of the economy and reduced capital spendingmeansthechinesemachinerysectorwillexpandbyonlyroughly5%thisyear.afterasevereslumpin2012and onlymoderategrowthin2013,machineryoutputinjapanwillpickupsharply,with10%expansionin2014.followinga2% increasein2013,usmachineryoutputwillgrowbyafurther3.5%thisyear.afterproductiondecreasesin2013,theworst seemstobeoverformostwesterneuropeancountries.moderategrowthof2to3%isexpectedfor2014.

35 InterimManagementReport2013/2014Macroandsectorenvironment 34 Germany sexport-orientedmachinerysectorrecordeda1.5%declineinoutputin2013.despitethemoderateimprovementin theglobaleconomy,ordersinthefirstfivemonthsofthecurrentyeardecreasedby1%inrealterms.a4%riseindomestic orderswasoffsetbya4%dropinforeignorders.however,thankstoordersinhandproductioninthisperiodincreasedbyover 1%.OrdersintheGermanplantconstructionsectorin2013were3%higherthanayearearlier.For2014theindustryexpects orderstostagnateattheprior-yearlevel.overall,germanmachineryoutputispredictedtogrowbyonly0.5%in2014. Construction After a weak year last year, construction activity in Europe has picked up noticeably in 2014 to date. ConstructionoutputinwesternEuropeisexpectedtoincreasebyaround2.5%thisyear,andineasternEuropebyroughly4%. TheUSrealestatemarketseemstobestabilizing despitesomemixedsignals.buildingpermitsandhousingstartswereupin the 1st half of Property prices are increasing again at a slightly faster rate after a temporary slowdown. Orders and outputinthegermanconstructionsectorgrewstronglyuptothemiddleof2014;companieswereabletoworkdowntheirhigh order backlogs. In addition, the housing market continues to benefit from low interest rates and the positive labor market situation.constructionactivityingermanyisexpectedtoriseby3.5%in2014.inchina, construction outputwill grow by around8%thisyear,aslightlylowerratethaninpreviousyears. Steel The situation on the European flat carbon steel market in the 1st half of 2014 was marked by higher volumes compared with last year but also by continuing pressure on steel prices. Output in steel-consuming industries was well above the low levels of the same period last year, leading to increased steel demand. This was additionally boosted by moderateseasonalrestockingbyusersanddistributorsinthefirstmonthsoftheyear.inthecourseofthe2ndquartersteel demandstalledagainslightly.withmaterialsreadilyavailableatshortnoticeandstocklevelsadequate,steelcustomers becamemorecautiousagain alsoinviewoftheupcomingvacationperiod.asaresult,shipmentsbyeuropeanflatsteel supplierstotheeumarketdecreasedagainslightly.atthesametime,importsfromthirdcountriesincreased;significantly moreflatsteelwasimportedinparticularfromthe CISstatesand alsofrom Asia,aidedno doubtinsomecases bythe firmereuroexchangerate.steelpricesontheeuropeanspotmarkets,whichhadbeenquiterobustinthefirstmonthsofthe year,slippedagainfromthespring.thedownwardpressurewasreinforcedbythelargefallinironorepricessincetheturn of the year. In the USA, the extreme weather conditions in the 1st quarter 2014 dampened the economy and the steel market.sincethensteeldemandhasrecoveredstrongly.acontinuinglimitedsupplyonthepartoftheussteelindustry causedasharpriseinsteelpricesinaprilandmay instrongcontrasttothetrendonothermarkets.however,pricesfell slightlyagainafterwards,notleastduetoamarkedincreaseinimports. Againstthebackgroundoftheexpectedslightglobaleconomicrecovery,theglobalsteelmarketwillcontinuetogrowin 2014.Demandforfinishedsteelispredictedtorisebyaround3%to1.53billiontons.Thisweakergrowthcomparedwith previousyearsisduetoslowingmomentuminmanyemergingeconomies.aboveall,growthinthechinesesteelmarket 6%lastyear willslowto3%in2014,andthereareincreasingsignsofanenduringslowdown.themoderaterecoveryin theeuwillcontinuedespiteexistingrisks.comingfromalowlevel,steeldemandisexpectedtogrowbyjustunder4%this year. However, a renewed increase in imports from third countries, not least China, could limit sales opportunities for Europeansteelproducers.Drivenbyanimprovingeconomyandstockbuilding,Germansteeldemandshouldrisebymore than4%toalmost40milliontons.above-averagegrowthofaround5%isalsoexpectedfortheussteelmarket.

36 InterimManagementReport2013/2014Opportunitiesandrisks 35 Opportunitiesandrisks Opportunities Asa globaldiversifiedindustrial groupwithleadingengineeringexpertiseandinnovative,resource-friendlyproductsand processes,thyssenkruppissystematicallyfocusedonthemarketsofthefuture.thisfocusoffersstrongopportunitiesin particularforourelevatorandprojectbusinessesintheemergingeconomies.inaddition,thetargetedcontinuationofour corporateprogramimpactwillhelpimproveproductivityandincreasevalueinallareasofthegroup. Theinformationonourstrategicandoperatingopportunitiespresentedonpages76-78ofthe2012/2013AnnualReport remainsvalid. Risks IfpositivesupportisnotforthcomingfromtheglobaleconomyandthemarketsofrelevanceforThyssenKrupp,theGroupwill faceeconomicrisks.lowergrowthratesintheemergingeconomiesandunresolveddebtcrisesinparticularintheeurozone may diminishourmarket prospects. We continuously monitorand assess the economic situationandothercountry-specific conditionstoenableustotakeactionatanearlystage.wecountersalesrisksfromdependencyonindividualmarketsand sectors by focusing systematically on the markets of the future. As a diversified industrial group with leading engineering expertise,thyssenkrupphasaglobalpresence,enjoysgood,longstandingrelationshipswithitscustomers,andpursuesactive strategicdevelopmentofcustomersandmarkets. ThyssenKrupp manages its liquidity and credit risks proactively. The Group s financing and liquidity remain on a secure foundation in fiscal 2013/2014. At June 30, 2014 the Group had 7.3 billion in cash, cash equivalents and undrawn committedcreditlines. We counter credit risks Hdefault risksi by entering into financial instruments with specified risk limits only with counterpartieswhohaveverygoodcreditstandingand/oraremembersofadepositguaranteescheme.furtherfinancial riskssuchascurrency,interestrateandcommoditypricerisksarereducedbytheuseofderivativefinancialinstruments. Restrictiveprinciplesregardingthechoiceofcounterpartiesalsoapplytotheuseofthesefinancialinstruments. ThyssenKrupphasagreementswithbankswhichcontaincertainconditionsintheeventthattheratioofnetfinancialdebt tototalequityhgearingiintheconsolidatedfinancialstatementsexceeds150%attheclosingdatehseptember30i.atjune 30,2014theGroup s gearingwas129.8%.theimprovementversusseptember30,2013was mainlyattributabletothe capitalincreasecarriedoutinearlydecember2013andtheproceedsfromthesaleofthyssenkruppsteelusainfebruary AlsoinFebruary2014,ThyssenKrupptransferreditssubordinatedfinancialreceivabletoOutokumpuandinexchangetook over the VDM and AST groups and a number of European stainless steel service centers. As part of this transaction ThyssenKruppdivestedits29.9%shareholdinginOutokumpuandendedallotherfinanciallinkswithOutokumpu.Thisstep reducesrisksandsecuresvalueforourcompany;oncompletionofthetransaction,thevalueanddefaultrisksfromthe shareholdinginoutokumpuandfromthevendorloansgrantedwereeliminated. Inadditiontoeconomicuncertainties,theEuropeansteelindustryisexposedtoimportpressureandovercapacitiesonthe market.withtheintegratedoptimizationprogram Best-in-ClassReloaded thesteeleuropebusinessareaiscounteringthe corresponding risks to sales volumes and prices, positioning itself in less cyclical premium market segments, and thus makingakeycontributiontoachievingtheearnings,cashflow,value-addedandcompetitiveprofiledemandedofallgroup companiesaspartofthestrategicwayforward.

37 InterimManagementReport2013/2014Opportunitiesandrisks 36 Newlawsandotherchangesinthelegalframeworkatnationalandinternationallevelcouldentailrisksforourbusiness activities if they lead to higher costs or other disadvantages for ThyssenKrupp compared with our peers. In particular, rising energy costs in 2014 due to the surcharge payable under Germany s Renewable Energy Act HEEGI are already placingasignificantburdenonourgermansteelproductionsiteswhichisjeopardizingourinternationalcompetitiveness. The risk situation is exacerbated by the subsidy investigations initiated against Germany by the EU Commission on December18,2013.TheEuropeanCommissionsuspectsthatthepartialexemptionofnumerouscompaniesfromtheEEG surchargeisincontraventionofeucompetitionlaw.ifinthisconnectionthepartialexemptionfromtheeegsurcharge grantedtothyssenkruppandotherenergy-intensivecompaniesengagedininternationalcompetitionshouldbereduced or withdrawn, there will be substantial risks to the asset, financial and earnings situation of ThyssenKrupp s German production sites. We support the discussion process in connection with the EEG and further regulation efforts through closeworkingcontactswiththerelevantinstitutionsandinthiswayworktoreducethecorrespondingrisks.thecurrent environmentalandenergystateaidguidelinesissuedbytheeucommissionandthereformoftheeegadoptedinjune 2014 take our justified interests into account. It is not yet possible to give any indication of when the subsidy investigationswillbeended.accordingtothelatestinformationavailable,theeucommissionwillseekrecoveryinthe amount of the difference between the deductible under EEG 2012 and the EU environmental state aid guidelines. The exactamountcannotyetbedetermined,butbasedongovernmentstatementswecurrentlyexpectanyrisktothegroup tobelow. Actingonananonymoustip,theGermanFederalCartelOfficehasbeeninvestigatingThyssenKruppSteelEuropeandother companies since the end of February 2013 based on an initial suspicion of price fixing in the delivery of certain steel productstothegermanautoindustryanditssuppliersoveraperioddatingbackto1998.thyssenkrupphaslaunchedits owninvestigationintotheallegationswiththesupportofexternallawyers.theamnestyprogramwecarriedoutfromapril 15toJune15,2013producednoleadsregardingtheongoinginvestigations.TheinvestigationsbytheFederalCartelOffice are ongoing. TheinternalinvestigationslaunchedinresponsetotheinvestigationsoftheFederalCartelOfficeareatan advanced stage but not yet complete. Based on the facts currently known to us, significant adverse consequences with regardtothegroup sasset,financialandearningssituationcannotberuledout. In2013thepublicprosecutor sofficeinbremenlaunchedaninvestigationintoemployeesofatlaselektronikgmbh,among others, onsuspicion of bribingforeign officialsinconnection with commission payments forgreek navalprojects. These paymentsweremadebeforetheshareholdinginatlaswasacquiredbythyssenkruppin2006.atlasreportedthismatterto thepublicprosecutorandthebremeninternalrevenueservicein2010followingacomplianceinvestigation.atlaselektronik isajointcompanyofthyssenkruppandairbus.thecompanyiscooperatingfullywiththeauthoritiesandhasinitiatedan internal investigation in consultation with the public prosecutor s office. The process is being closely supported by the owners. The various elements of our risk management system are systematically geared to the current challenges and risks of the Group.ThisensuresthattherearenorisksthatcouldthreatentheabilityoftheGrouptocontinueasagoingconcern.Beyond this,thedetailedinformationcontainedintheriskreportonpages78-88ofthe2012/2013annualreportisstillvalid. Wereportonpendinglawsuits,claimsfordamagesandotherrisksinNote07.

38 CondensedInterimFinancialStatements2013/2014Consolidatedstatementoffinancialposition 37 ThyssenKruppAG Consolidatedstatementoffinancialposition Assetsmillion Note Sept.30, 2013* Intangibleassets 4,206 4,199 Property,plantandequipment 7,484 7,909 Investmentproperty Investmentsaccountedforusingtheequitymethod Otherfinancialassets 1, Othernon-financialassets Deferredtaxassets 1,662 1,500 Totalnon-currentassets 15,942 15,012 Inventories,net 6,351 7,864 Tradeaccountsreceivable 4,956 5,711 Otherfinancialassets Othernon-financialassets 2,069 2,531 Currentincometaxassets Cashandcashequivalents 3,813 3,511 Assetsheldforsale 02 1, Totalcurrentassets 19,355 20,252 Totalassets 35,297 35,264 June30, 2014 EquityandLiabilitiesmillion Capitalstock 1,317 1,449 Additionalpaidincapital 4,684 5,434 Retainedearnings 03, ,9371 Cumulativeothercomprehensiveincome thereofrelatingtodisposalgroups0sept.30,2013:2;june30,2014:0611 EquityattributabletoThyssenKruppAG'sstockholders 2,243 2,925 Non-controllinginterest Totalequity 2,512 3,173 Accruedpensionandsimilarobligations 04 7,348 7,118 Provisionsforotheremployeebenefits Otherprovisions Deferredtaxliabilities Financialdebt 6,955 6,455 Otherfinancialliabilities 3 4 Othernon-financialliabilities 1 2 Totalnon-currentliabilities 15,305 14,708 Provisionsforemployeebenefits Otherprovisions 1,363 1,028 Currentincometaxliablilities Financialdebt 1,911 1,190 Tradeaccountspayable 3,713 4,518 Otherfinancialliabilities 1,241 1,020 Othernon-financialliabilities 8,455 9,014 Liabilitiesassociatedwithassetsheldforsale Totalcurrentliabilities 17,480 17,383 Totalliabilities 32,785 32,091 Totalequityandliabilities 35,297 35,264 Note Sept.30, 2013* June30, 2014 Seeaccompanyingselectednotes. *FigureshavebeenadjustedduetotheadoptionofIAS19RandthecatchupofdepreciationofBerco0see Recentlyadoptedaccountingstandards andnote021.

39 CondensedInterimFinancialStatements2013/2014Consolidatedstatementofincome 38 ThyssenKruppAG Consolidatedstatementofincome million,earningspersharein Note ended June30,2013* ended June30,2014 ended June30,2013* ended June30,2014 Netsales 09 28,649 30,146 9,920 10,742 Costofsales , , , ,0941 Grossprofit 4,068 4,634 1,307 1,648 Researchanddevelopmentcost Sellingexpenses 02, , Generalandadministrativeexpenses 01, , Otherincome Otherexpenses Othergains/0losses Income/0loss1fromoperations 22 1, Income/0expense1fromcompaniesaccountedforusingtheequitymethod Financeincome Financeexpenses , Financialincome/0expense1,net Income/0loss1beforeincometaxes Incometax0expense1/income Income/0loss1fromcontinuingoperations0netoftax Discontinuedoperations0netoftax Netincome/0loss Attributableto: ThyssenKruppAG'sstockholders Non-controllinginterest Netincome/0loss Basicanddilutedearningspershare 12 Income/0loss1fromcontinuingoperations0attributabletoThyssenKruppAG'sstockholders Netincome/0loss10attributabletoThyssenKruppAG'sstockholders Seeaccompanyingselectednotes. *FigureshavebeenadjustedduetotheadoptionofIAS19R,thereclassificationofSteelAmericasasacontinuingoperation,theeliminationoftheimpairmentofSteelAmericas aswellasthecatchupofamortizationanddepreciationofthyssenkruppcsaandberco0see"recentlyadoptedaccountingstandards andnote021.

40 CondensedInterimFinancialStatements2013/2014Consolidatedstatementofcomprehensiveincome 39 ThyssenKruppAG Consolidatedstatementofcomprehensive income million ended June30,2013* ended June30,2014 ended June30,2013* ended June30,2014 Netincome/+loss, Itemsofothercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossinfutureperiods: Other comprehensive income from remeasurements of pensions andsimilarobligations Change Taxeffect Othercomprehensiveincomefromremeasurementsofpensionsandsimilarobligations,net Shareofunrealizedgains/0losses1ofinvestmentsaccountedforusingtheequity-method Subtotalofitemsofothercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossinfutureperiods: Itemsofothercomprehensiveincomethatwillbereclassifiedtoprofitorlossinfutureperiods: Foreigncurrencytranslationadjustment Changeinunrealizedgains/0losses1,net Netrealized0gains1/losses Netunrealizedgains/0losses Unrealizedgains/0losses1fromavailable-for-salefinancialassets Changeinunrealizedgains/0losses1,net Netrealized0gains1/losses Taxeffect Netunrealizedgains/0losses Unrealized0losses1/gainsonderivativefinancialinstruments Changeinunrealizedgains/0losses1,net Netrealized0gains1/losses Taxeffect Netunrealizedgains/0losses Shareofunrealizedgains/0losses1ofinvestmentsaccountedforusingtheequity-method Subtotalofitemsofothercomprehensiveincomethatwillbereclassifiedtoprofitorlossinfutureperiods: Othercomprehensiveincome Totalcomprehensiveincome Attributableto: ThyssenKruppAG'sstockholders Non-controllinginterest TotalcomprehensiveincomeattributabletoThyssenKruppAG'sstockholdersrefersto: Continuingoperations Discontinuedoperations Seeaccompanyingselectednotes. *FigureshavebeenadjustedduetotheadoptionofIAS19R,thereclassificationofSteelAmericasasacontinuingoperation,theeliminationoftheimpairmentofSteelAmericas aswellasthecatchupofamortizationanddepreciationofthyssenkruppcsaandberco0see Recentlyadoptedaccountingstandards andnote021.

41 CondensedInterimFinancialStatements2013/2014Consolidatedstatementofchangesinequity 40 ThyssenKrupp Consolidatedstatementofchangesinequity EquityattributabletoThyssenKruppAG'sstockholders Cumulativeothercomprehensiveincome million +exceptnumberofshares, Numberof shares outstanding Capital stock Additional paid incapital Retained earnings Foreign currency translation adjustment Availablefor-sale financial assets Derivative financial instruments Shareof investments accounted forusingthe equity method Noncontrolling interest BalanceasofSept.30, ,489,044 1,317 4,684 02, , ,526 Adjustmentdueto retrospectiveadoptionof IAS19R* BalanceasofOct.01, 2012* 514,489,044 1,317 4,684 02, , ,534 Netincome/0loss1** Othercomprehensive income* Totalcomprehensive income** Profitattributableto non-controllinginterest Otherchanges BalanceasofJune30, 2013** 514,489,044 1,317 4,684 03, , ,573 BalanceasofSept.30, 2013* 514,489,044 1,317 4,684 03, , ,512 Netincome/0loss Othercomprehensive income Totalcomprehensive income Profitattributableto non-controllinginterest Capitalincrease 51,448, Otherchanges BalanceasofJune30, ,937,947 1,449 5,434 03, , ,173 Seeaccompanyingselectednotes. *FigureshavebeenadjustedduetotheadoptionofIAS19RandthecatchupofdepreciationofBerco0see Recentlyadoptedaccountingstandards andnote021. **FigureshavebeenadjustedduetotheadoptionofIAS19R,thereclassificationofSteelAmericasasacontinuingoperation,theeliminationoftheimpairmentofSteelAmericas aswellasthecatchupofamortizationanddepreciationofthyssenkruppcsaandberco0see Recentlyadoptedaccountingstandards andnote021. Total Total equity

42 CondensedInterimFinancialStatements2013/2014Consolidatedstatementofcashflows 41 ThyssenKrupp Consolidatedstatementofcashflows million ended June30,2013* ended June30,2014 ended June30,2013* ended June30,2014 Netincome/0loss Adjustmentstoreconcilenetincome/0loss1tooperatingcashflows: Discontinuedoperations0netoftax Deferredincometaxes,net Depreciation,amortizationandimpairmentofnon-currentassets Reversalsofimpairmentlossesofnon-currentassets Income1/lossfromcompaniesaccountedforusingtheequitymethod,netofdividendsreceived Gain1/lossondisposalofnon-currentassets,net Changesinassetsandliabilities,netofeffectsofacquisitionsanddivestituresandothernon-cashchanges: -inventories tradeaccountsreceivable accruedpensionandsimilarobligations otherprovisions tradeaccountspayable otherassets/liabilitiesnotrelatedtoinvestingorfinancingactivities Operatingcashflows-continuingoperations Operatingcashflows-discontinuedoperations Operatingcashflows-total Purchaseofinvestmentsaccountedforusingtheequitymethodandnon-currentfinancialassets Expendituresforacquisitionsofconsolidatedcompaniesnetofcashacquired Capitalexpendituresforproperty,plantandequipment0inclusiveofadvancepayments1andinvestmentproperty Capitalexpendituresforintangibleassets0inclusiveofadvancepayments Proceedsfromdisposalsofinvestmentsaccountedforusingtheequitymethodandnon-currentfinancialassets Proceedsfromdisposalsofpreviouslyconsolidatedcompaniesnetofcashacquired 930 1, Cashandcashequivalentsdisposedofduetolossofcontrolovercompaniesconsolidatedsofarbutnotsold Proceedsfromdisposalsofproperty,plantandequipmentandinvestmentproperty Proceedsfromdisposalsofintangibleassets Cashflowsfrominvestingactivities-continuingoperations Cashflowsfrominvestingactivities-discontinuedoperations Cashflowsfrominvestingactivities-total Proceedsfromissuanceofbonds 1,600 1, Repaymentofbonds 01, , ,0001 Proceedsfromliabilitiestofinancialinstitutions 2,948 1, Repaymentsofliabilitiestofinancialinstitutions 02, , Proceedsfrom/0repaymentson1notespayableandotherloans Increase/0decrease1inbillsofexchange Decreaseincurrentsecurities Proceedsfromcapitalincreases Profitattributabletonon-controllinginterest Expendituresforacquisitionsofsharesofalreadyconsolidatedcompanies Financingofdiscontinuedoperations Otherfinancingactivities Cashflowsfromfinancingactivities-continuingoperations , ,3841 Cashflowsfromfinancingactivities-discontinuedoperations Cashflowsfromfinancingactivities-total , ,3841 Netincreaseincashandcashequivalents-total 1, ,5491 Effectofexchangeratechangesoncashandcashequivalents-total Cashandcashequivalentsatbeginningofreportingperiod-total 2,347 3,829 4,733 5,039 Cashandcashequivalentsatendofreportingperiod-total 3,726 3,520 3,726 3,520 EthereofcashandcashequivalentswithindisposalgroupsF E F E9F E F E9F EthereofcashandcashequivalentswithindiscontinuedoperationsF E47F E F E47F E F Additionalinformationregardingcashflowsofcontinuingoperationsfrominterest,dividendsandincometaxeswhich areincludedinoperatingcashflows: Interestreceived Interestpaid Dividendsreceived Incometaxespaid SeeNote13tothecondensedconsolidatedfinancialstatements. *FigureshavebeenadjustedduetotheadoptionofIAS19R,thereclassificationofSteelAmericasasacontinuingoperation,theeliminationoftheimpairmentofSteelAmericasas wellasthecatchupofamortizationanddepreciationofthyssenkruppcsaandberco0see Recentlyadoptedaccountingstandards andnote021.

43 CondensedInterimFinancialStatements2013/2014Selectednotes 42 ThyssenKruppAG Selectednotes Corporateinformation ThyssenKruppAktiengesellschaft ThyssenKruppAG or Company isapubliclytradedcorporationdomiciledinduisburg and Essen in Germany. The condensed interim consolidated financial statements of ThyssenKrupp AG and subsidiaries, collectivelythe Group,fortheperiodfromOctober01,2013toJune30,2014,wereauthorizedforissueinaccordance witharesolutionoftheexecutiveboardonaugust11,2014. Basisofpresentation The accompanying Group s condensed interim consolidated financial statements have been prepared in accordance with section37x para.3 ofthegermansecuritiestrading ActWpHG and InternationalFinancialReporting StandardsIFRS and its interpretations adopted by the International Accounting Standards Board IASB for interim financial information effective within the European Union. Accordingly, these financial statements do not include all of the information and footnotesrequiredbyifrsforcompletefinancialstatementsforyear-endreportingpurposes. The accompanying Group s condensed interim consolidated financial statements have been reviewed. In the opinion of Management, the interim financial statements include all adjustments of a normal and recurring nature considered necessary for a fair presentation of results for interim periods. Results of the period ended June 30, 2014, are not necessarilyindicativeforfutureresults. ThepreparationofcondensedinterimfinancialstatementsinconformitywithIAS34InterimFinancialReportingrequires Managementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamounts ofassetsandliabilities,incomeandexpenses.actualresultsmaydifferfromtheseestimates. Theaccountingprinciplesandpracticesasappliedinthecondensedinterimconsolidatedfinancialstatementscorrespond tothosepertainingtothemostrecentannualconsolidatedfinancialstatementswiththeexceptionoftherecentlyadopted accounting standards. A detailed description of the accounting policies is published in the notes to the consolidated financialstatementsofourannualreport2012/2013. Recentlyadoptedaccountingstandards In fiscal year 2013/2014, ThyssenKrupp adopted the following standards, interpretations and amendments to already existingstandards: InDecember2010theIASBissuedanamendmenttoIAS12 IncomeTaxes.UnderIAS12,themeasurementofdeferred taxes depends on whether the carrying amount of an asset is recovered through use or sale. Such assessment is often difficult, in particular when the asset is measured using the fair value model in IAS 40 for investment property. The amendmentintroducesapresumptionthatingeneralaninvestmentpropertyisrecoveredthroughsale.theapplicationof the amended standard is compulsory for fiscal years beginning on or after January 01, In the context of the endorsement, the IASB defers the mandatory effective date from January 01, 2012 to January 01, The amended standarddoesnothaveanyimpactonthegroup sconsolidatedfinancialstatementsbecausecurrentlyinvestmentproperty isaccountedforatcostlessaccumulateddepreciation. In May 2011 the IASB issued the new standard IFRS 13 Fair Value Measurement. IFRS 13 contains a definition of fair valueandrulesonhowtodetermineitifotherifrsstandardsrequirefairvaluemeasurement;thestandarditselfdoesnot prescribeinwhichcasesfairvalueistobeused.withtheexceptionofthestandardsexplicitlyexcludedinifrs13,ifrs13 definesstandarddisclosurerequirementsforallassetsandliabilitiesthataremeasuredatfairvalueandforallassetsand liabilitiesforwhichdisclosureoffairvalueinthenotestotheconsolidatedfinancialstatementsisrequired;inparticularit

44 CondensedInterimFinancialStatements2013/2014Selectednotes 43 widensthedisclosurerequirementsfornon-financialassets.thenewstandardiscompulsoryforfiscalyearsbeginningon orafterjanuary01,2013andshallbeappliedprospectively.inthefirstyearofapplicationcomparativeinformationisnot required. The adoption of the new standard does not have a material impact on the Group s consolidated financial statements,butresultsinadditionaldisclosures. In June 2011 the IASB issued amendments to IAS 19 Employee Benefits. The amendments mainly concern the elimination of deferred recognition of actuarial gains and losses corridor method in favour of immediate recognition in othercomprehensiveincomeinequityandtherecognitionofanetinterestexpenseorincomeresultingfromnetliabilities orassetsofapensionplanwhichisdeterminedbyusingthediscountrate.furthermoreanimmediaterecognitionofthe totalpastservicecostsisrequired,theexposureofotheradministrationcostsaspartofnetperiodicpensioncostaswell asthedistributionofcostsresultingfromtop-uppaymentstoemployeesunderearlyretirementovertheperiodinwhich theyareearned.furthermoreadditionaldisclosureregardingthecharacteristicsofpensionplansandtheassociatedrisks for the entity is required. The amendments to IAS 19 are compulsory for fiscal years beginning on or after January 01, 2013.Theadoptionoftheamendedstandardresultsinadditionaldisclosures. The elimination of deferred recognition of actuarial gains and losses corridor method does not have any impacts on ThyssenKruppasactuarialgainsandlosseshavealreadybeenrecognizedinothercomprehensiveincomeinequitysofar. The adoption of IAS 19R impacted the consolidated statement of financial position and the consolidated statement of incomeaspresentedbelow: IAS19R-Consolidatedstatementoffinancialposition Oct.01,2012 Sept.30,2013 June30,2013 million Before IAS19R adjustment IAS19R adjustment After IAS19R adjustment Before IAS19R adjustment* IAS19R adjustment After IAS19R adjustment Before IAS19R adjustment** IAS19R adjustment After IAS19R adjustment Totalassets 38, ,280 35, ,297 36, ,654 Totalequity 4, ,534 2, ,512 3, ,573 Totalnon-currentliabilities 13, ,785 15, ,305 15, ,131 thereof:accruedpensionandsimilar obligations 7, ,696 7, ,348 7, ,593 Totalequityandliabilities 38, ,280 35, ,297 36, ,654 *InclusiveofIAS19RadjustmentasofOct.01,2012andthecatchupofamortizationanddepreciationofBerco. **FigureshavebeenadjustedduetotheIAS19RadjustmentasofOct.01,2012,theeliminationoftheimpairmentofSteelAmericasaswellasthecatchupofamortizationand depreciationofthyssenkruppcsaandberco. IAS19R-Consolidatedstatementofincome YearendedSept.30,2013 endedjune30,2013 endedjune30,2013 million Before IAS19R adjustment IAS19R adjustment After IAS19R adjustment Before IAS19R adjustment* IAS19R adjustment After IAS19R adjustment Before IAS19R adjustment* IAS19R adjustment After IAS19R adjustment Income/0loss1fromoperations Financialincome/0expense1,net Income/0loss1fromoperationsbefore incometaxes 01, , Incometax0expense1/income Income/0loss1fromoperations0netoftax1 01, , *FigureshavebeenadjustedduetothereclassificationofSteelAmericasasacontinuingoperation,theeliminationoftheimpairmentofSteelAmericas aswellasthecatchupofamortizationanddepreciationofthyssenkruppcsaandberco. InOctober2011theIASBissuedtheIFRICinterpretation20 StrippingCostsintheProductionPhaseofaSurfaceMine. Theinterpretationregulatestheaccountingforstrippingcostsintheproductionphaseofasurfacemine.Theinterpretation clarifies under which conditions an asset must be recognized for the relating stripping measures and how initial and subsequentmeasurementofthisassethastobedetermined.theinterpretationiscompulsoryforfiscalyearsbeginningon orafterjanuary01,2013.thisinterpretationhasnoimpactonthegroup sconsolidatedfinancialstatements.

45 CondensedInterimFinancialStatements2013/2014Selectednotes 44 In December 2011 the IASB issued an amendment to IFRS 7 Financial Instruments: Disclosures which requires disclosuresinthecontextofcertainoffsettingarrangements.theobligationfordisclosureshastobeappliedregardlessof whethertheoffsettingarrangementsresultinanyactualoffsettingoftherespectivefinancialassetsandfinancialliabilities. The new disclosure requirements shall simplify comparing financial statements prepared in accordance with IFRS and financialstatementspreparedinaccordancewithusgaap.theamendmentiscompulsoryforfiscalyearsbeginningonor afterjanuary01,2013andshallbeappliedretrospectively.firsttimeadoptionimpliesextendeddisclosures. In May 2012 the IASB issued the fourth omnibus standard Improvements to IFRSs as part of its annual improvement processproject.thisstandardslightlyadjustsfivestandardsifrs1 First-timeAdoptionofIFRS,IAS1 Presentationof Financial Statements, IAS 16 Property, Plant and Equipment, IAS 32 Financial Instruments: Presentation, IAS 34 InterimFinancialReporting.TheamendmentsareeffectiveforfiscalyearsbeginningonorafterJanuary01,2013.The adoptionoftheamendmentdoesnothaveamaterialimpactonthegroup sconsolidatedfinancialstatements. Recentlyissuedaccountingstandards Infiscalyear2013/2014,thefollowingstandards,interpretationsandamendmentstoalreadyexistingstandardshavebeen issuedwhichmuststillbeendorsedbytheeubeforetheycanbeadopted: InNovember2013theIASBissuedamendmentstoIFRS9 FinancialInstruments HedgeAccountingandAmendmentsto IFRS9;IFRS7andIAS39.TheamendmentstoIFRS9establishanewmodelthatrepresentsasubstantialoverhaulof hedgeaccountingthatwillenableentitiestobetterreflecttheirriskmanagementactivitiesintheirfinancialstatements.in additionextensivedisclosuresarerequired.moreoverrecognizingfairvaluechangesofliabilitiesduetocreditratingwithin equity will be possible to be earlier adopted without applying the complete regulations of IFRS 9. Furthermore the IASB decidedtoabandonthemandatorydateofjanuary01,2015;anewdateshouldbedecideduponwhentheentireifrs9 project is closer to completion. The EU has not yet endorsed the standard including the amendments. Currently, Management is not able to finally assess the impact of the adoption of the standard including the amendments if endorsedbytheeuinthecurrentversion. InNovember2013theIASBissuednarrow-scopeamendmentstoIAS19 EmployeeBenefits titled DefinedBenefitPlans: Employee Contributions Amendments to IAS 19. The amendments are applicable to recognizing contributions of employees or third parties to defined benefit plans. Hereby it will be allowed to recognize employees or third parties contributionsasareductionofcurrentservicecostsintheperiodinwhichthecorrespondingservicinghasbeenrenderedif thecontributionsareindependentofthenumberofyearsofemployeeservice.theamendmentstoias19aretobeapplied for fiscal years beginning on or after July 01, 2014; earlier application is permitted. The EU has not yet endorsed the amendments.currently,managementdoesnotexpecttheamendments ifendorsedbytheeuinthecurrentversion to haveamaterialimpactonthegroup sconsolidatedfinancialstatements. InDecember2013theIASBissuedtheannualimprovementsforthe2010to2012cycleandforthecurrent2011to2013 cycleaspartofitsannualimprovementprocessproject.inthecontextofthe2010to2012cycleclarificationsandsmaller amendmentsofsevenstandardswerepublished:ifrs2 Share-basedPayment,IFRS3 BusinessCombinations,IFRS8 OperatingSegments,IFRS13 FairValueMeasurement,IAS16 Property,PlantandEquipment,IAS24 RelatedParty Disclosures and IAS 38 Intangible Assets. In the context of the 2011 to 2013 cycle clarifications and smaller amendments of four standards were published: IFRS 1 First-time Adoption of IFRS, IFRS 3 Business Combinations, IFRS13 Fair Value Measurement and IAS 40 Investment Property. The amendments are effective for fiscal years beginning on or after July 01, 2014; earlier application is permitted. The EU has not yet endorsed the amendments. Currently,Managementdoesnotexpecttheamendments ifendorsedbytheeuinthecurrentversion tohaveamaterial impactonthegroup sconsolidatedfinancialstatements.

46 CondensedInterimFinancialStatements2013/2014Selectednotes 45 InMay2014theIASBissuedamendmentstoIFRS11 JointArrangements clarifyingthatboththeinitialandsubsequent acquisitionofinterestsinajointoperationthatconstitutesabusinessmustbeaccountedforinlinewiththeprinciplesof IFRS 3 Business Combinations except where these principles conflict with the guidance in IFRS 11. In addition, the disclosurerequirementsofifrs3mustbemet.theamendmentsaretobeappliedforfiscalyearsbeginningonorafter January01,2016;earlierapplicationispermitted.TheEUhasnotyetendorsedtheamendments.Currently,Management doesnotexpecttheamendments ifendorsedbytheeuinthecurrentversion tohaveamaterialimpactonthegroup s consolidatedfinancialstatements. In May 2014 the IASB issued amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets providing additional guidelines for determining an acceptable method of depreciation or amortization. The amendments clarifythatrevenue-based methodsare notappropriatefor calculatingthedepreciationofproperty, plantand equipment andareonlyappropriateinlimitedcircumstancesforcalculatingtheamortizationofintangibleassets.theamendmentsare tobeappliedforfiscalyearsbeginningonorafterjanuary01,2016;earlierapplicationispermitted.theeuhasnotyet endorsedtheamendments.currently,managementdoesnotexpecttheamendments ifendorsedbytheeuinthecurrent version tohaveamaterialimpactonthegroup sconsolidatedfinancialstatements. InMay2014theIASBissuedthenewstandardIFRS15 RevenuefromContractswithCustomers.Thepurposeofthenew standardonrevenuerecognitionistobringtogetherthelargenumberofexistingguidelinescontainedinvariousstandards andinterpretations.atthesametimeitestablishesuniformcoreprinciplestobeappliedtoallindustriesandalltypesof revenuetransactions.a5-stepmodelisusedtodetermineatwhichpointintimeoroverwhichperiodoftimerevenuesare to be recognized and in what amount. The standard also includes further detailed guidance and extended disclosure requirements.the newstandard hasto beapplied forfiscal yearsbeginningon orafterjanuary01,2017. In generalit mustbeappliedretrospectively,butvarioustransitionoptionsareallowed;earlierapplicationispermitted.theeuhasnot yetendorsedthestandard.currently,managementisnotabletofinallyassesswhatimpactadoptionofthestandardwill have ifendorsedbytheeuinthecurrentversion. In July 2014 the IASB issued the final version of IFRS 9 Financial Instruments. The new version includes revised requirementsfortheclassificationandmeasurementoffinancialassetsandforthefirsttimeregulationsontheimpairment of financial instruments; with the new expected loss model losses are recognized earlier because both existing and expected losses are recognized. The new regulations must be applied for fiscal years beginning on or after January 01, In general they must be applied retrospectively, but various transition options are allowed; earlier application is permitted. The EU has not yet endorsed the standard. Currently, Management is not able to finally assess what impact adoptionofthestandardwillhave ifendorsedbytheeuinthecurrentversion.

47 CondensedInterimFinancialStatements2013/2014Selectednotes Acquisitionsanddisposals InconnectionwiththenecessaryrefinancingofOutokumpu,ThyssenKruppAGsignedacontractwithOutokumpuOyjOTK onnovember29,2013whichprovidesamongotherthingsforthetransferof100%ofthesharesinvdmandastandother smallerstainlesssteelservicecenteractivitiestothyssenkrupp.thistransferwascompletedonfebruary28,2014.the VDM group is headquartered in Germany and produces high-performance materials used among other areas in the aerospaceandenergygenerationsectors.theitalian-basedastgroupproducesstainlesssteel.thetransferalsoincluded theitalianservicecentersaswellasotherstainlesssteelservicecentersinwillichgermany,toursfrance,barcelona SpainandGebzeTurkey.Inadditiontothecompanyshares,financialreceivablesof 303millionowedtoOTKbythe VDMandASTgroupswerealsoacquired. ThenewcompaniesarebeingintegratedintheMaterialsServicesbusinessareasoastoachievemaximumbenefitfrom the market presence of the existing distribution network. The business models and plans of VDM and AST have been analyzedoverthepastfewmonths.forast,acomprehensivenewbusinessplanhasbeendevelopedwhichprovidesforan intensificationandrestructuringofsalesofcold-rolledproductsaswellasextensiverestructuringmeasuresinproduction andadministrationwithasignificantreductioninpersonnel.thedetailswillbethesubjectofintensivenegotiationswiththe stakeholders in the coming months. At VDM the focus is now on intensifying and supporting the identified restructuring programsandgrowthinitiatives. Thepurchasepricewas 953millionattheclosingandwassettledbytransferringfromThyssenKrupptoOutokumputhe financial receivable created as part of the sale of Inoxum. The financial receivable was stated at 969 million as of December31,2013andwaswrittendownby 16milliontomatchthepurchasepriceinthe2ndquarterendedMarch31, 2014.Underthecontractuallystipulatedadjustmentmechanisms,Outokumpumadea 41millioncompensationpayment inthewhichwasrecognizedinequityasapost-closingpurchasepriceadjustment. Based on the preliminary values as of the acquisition date, the acquisition affected the Group s consolidated financial statementsaspresentedbelow: AcquisitionofVDM/ASTgroup million Goodwill 4 Otherintangibleassets 13 Property,plantandequipment 610 Investmentproperty 11 Investmentsaccountedforusingtheequitymethod 8 Otherfinancialassets 1 Othernon-financialassets 10 Deferredtaxassets 30 Inventories 844 Tradeaccountsreceivable 410 Othercurrentfinancialassets 36 Othercurrentnon-financialassets 51 Currentincometaxassets 1 Cashandcashequivalents 10 Totalassetsacquired 2,039 Accruedpensionandsimilarobligations 132 Othernon-currentprovisions 20 Deferredtaxliabilities 71 Non-currentfinancialdebt 17 Othernon-currentnon-financialliabilities 1 Othercurrentprovisions 31 Currentincometaxliablilities 7 Currentfinancialdebt 310 Tradeaccountspayable 671 Othercurrentfinancialliabilities 114 Othercurrentnon-financialliabilities 55 Totalliabilitiesassumed 1,429 Netassetsacquired 610 Non-controllinginterest 1 Purchaseprices 609 thereof:paidincashandcashequivalents 0 *withoutpurchasepriceofacquiredfinancialreceivablesof 303million.

48 CondensedInterimFinancialStatements2013/2014Selectednotes 47 SincethenewacquiredcompaniesjoinedtheThyssenKruppGroupeffectiveasofFebruary28,2014,theygeneratedsales ofapprox. 1.0billionandalossbeforetaxesof 16million,whichareincludedintheconsolidatedincomestatementof theendedjune30,2014andoftheendedjune30,2014,respectively.iftheacquisitionhadtaken place on October 01, 2013, the companies of VDM, AST and the new service centers would have contributed sales of approx. 2.3billionandlossesbeforetaxesofapprox. 85milliontotheGroup sconsolidatedstatementofincome. Furthermore in the 9 months ended June 30, 2014, the Group acquired additional smaller companies that are, on an individualbasis,immaterial.basedonthevaluesasoftheacquisitiondate,theseacquisitionsaffectedintotalthegroup s consolidatedfinancialstatementsaspresentedbelow: AcquisitionsendedJune30,2014 million Goodwill Otherintangibleassets Tradeaccountsreceivable Totalassetsacquired Othercurrentnon-financialliabilities Totalliabilitiesassumed Netassetsacquired Non-controllinginterest Purchaseprices thereof:paidincashandcashequivalents The disposal of the Steel Americas business area was initiated as of September 30, 2012 as part of the Strategic Way Forward;asaresulttothechangeinthedisposalplanasofSeptember30,2013,onlyThyssenKruppSteelUSAmetthe requirementsforpresentationasadisposalgroup.thesaleofthyssenkruppsteelusatoaconsortiumofarcelormittaland NipponSteel&SumitomoMetalCorporationwasclosedonFebruary26,2014.Overall,thisdisposalandtheexitofthenonoperatingUSsubsidiaryTheBudd Company underchapter11 proceedingsattheend ofmarch2014hadthe following impactontheconsolidatedfinancialstatementsonthebasisofthevaluesasoftherespectivedisposaldate: DisposalsendedJune30, million Otherintangibleassets 8 Property,plantandequipment 799 Deferredtaxassets 255 Inventories 333 Tradeaccountsreceivable 210 Othercurrentnon-financialassets 3 Cashandcashequivalents 317 Totalassetsdisposedof 1,925 Accruedpensionandsimilarobligations 691 Othernon-currentprovisions 5 Non-currentfinancialdebt 1 Othercurrentprovisions 18 Currentfinancialdebt 1 Tradeaccountspayable 107 Othercurrentfinancialliabilities 8 Othercurrentnon-financialliabilities 32 Totalliabilitiesdisposedof 863 Netassetsdisposedof 1,062 Cumulativeothercomprehensiveincome 0731 Non-controllinginterest 0 Gain/0loss1resultingfromthedisposals 317 Sellingprices 1,306 thereof:receivedincashandcashequivalents 1,306

49 CondensedInterimFinancialStatements2013/2014Selectednotes Discontinuedoperationsanddisposalgroups AspartoftheportfoliooptimizationprogramoftheconceptforthefurtherstrategicdevelopmentinMay2011,theGroup hasinitiatedthesaleofseveralbusinesses.withtheexemptionofthestainlessglobalbusinessareathesetransactions havenotmettherequirementsofifrs5forapresentation.therefore,revenuesandexpenseswillcontinuetobepresented as income from continuing operations until the date of the disposal. For entities for which the disposal has not been completedasofthebalancesheetdateoftherespectivereportingperiod,theassetsandliabilitiesofthedisposalgroups havebeendisclosedseparatelyintheconsolidatedbalancesheetofthereportingperiodinthelineitems assetsheldfor sale and liabilitiesassociatedwithassetsheldforsale. Although the disposal of the entire Steel Americas business area initiated in September 2012 met the criteria for presentationasa discontinued operationfromseptember30,2012,thechangetothe planof saleasof September30, 2013meantthattheSteelAmericasbusinessareanolongermeetsthecriteriaforpresentationasadiscontinuedoperation andinsteadisreclassifiedasacontinuingoperation.thechangeofplanalsomeantthatinsteadoftheentirebusinessarea classifying as a discontinued operation/ disposal group, only the ThyssenKrupp Steel USA portion met the criteria for presentation as a disposal group. It was therefore necessary to catch up the amortization and depreciation for the ThyssenKrupp Steel CSA portion that was not charged in accordance with IFRS 5; this results in a charge to pre-tax earningsof 104millionintheendedJune30,2013andof 32millionintheendedJune30,2013. Furthermore the IFRS 5-impairment of Steel Americas as of March 31, 2013 in the amount of 683 million has been eliminated.theprior-yearpresentationofthesteelamericasbusinessareaintheconsolidatedstatementofincomeand consolidatedstatementofcashflowshasbeenadjustedaccordingly. TheStainlessGlobalbusinessareametthecriteriaforpresentationasadiscontinuedoperationfromSeptember30,2011 until completion of the combination with the Finish company Outokumpu on December 28, Therefore, for the StainlessGlobalbusinessareaallincomeandexpensesuntilDecember28,2012aswellasincomeandexpensesincurred afterthedisposalbutaredirectlyrelatedtothedisposalarepresentedseparatelyintheconsolidatedstatementofincome inthelineitem Discontinuedoperationsnetoftax. Disposalgroups InSeptember2012thedisposaloftheThyssenKruppTailoredBlanksgrouphasbeeninitiatedintheSteelEuropebusiness area. Tailored Blanks is supplier of body systems to the auto industry which produces tailored steel blanks. After the approvalhasbeengivenbytheresponsibleregulatoryauthorities,withtheexemptionofthechangchuncompaniesthesale tothechinesesteelproducerwuhanironandsteelcorporationwiscowascompletedasofjuly31,2013;thesechinese companiesarestillsubjecttoapprovalbythelocalauthorities. TheassetsandliabilitiesoftheChangchuncompaniesinChinawhicharestillpartofthedisposalgroupasofJune30, 2014arepresentedinthefollowingtable: DisposalgroupTailoredBlanksChina million Property,plantandequipment Inventories Tradeaccountsreceivable Othercurrentnon-financialassets Cashandcashequivalents Assetsheldforsale Currentfinancialdebt Tradeaccountspayable Othercurrentnon-financialliabilities Liabilitiesassociatedwithassetsheldforsale June30,

50 CondensedInterimFinancialStatements2013/2014Selectednotes 49 InadditioninSeptember2012thedisposaloftheBercogrouphasbeeninitiatedintheComponentsTechnologybusiness area. Berco is a leading global supplier of undercarriages, based mainly on forged components, for the construction machinerysectorandoffersabroadrangeofpartsandservicesforbothoemsandtheaftermarket.itsproductsareused inmachineryfromlargeminingequipmenttominiexcavators.inthecontextoftheinitiateddisposalanimpairmentlossof 4milliononintangibleassetsandof 131milliononproperty,plantandequipmentwasrecognizedincostofsalesinthe 4thquarterof2011/2012resultingfromthewrite-downoftheassetstofairvaluelesscoststosell.Atthesametimea deferredtaxassetof 1millionwasrecognized.Asaresultofunforeseenrestructuringrequirements,whichcouldonlybe implemented with the cooperation of employee and government representatives, the one-year period required by IFRS 5 extendedbeyondseptember30,2013withoutdisadvantagetoexistingsaleopportunities.asaresultofasharpdropin demand of unforeseen proportions from key customers in the mining and construction equipment sectors, a sale at an appropriatevaluecannolongerbeexpectedinthenearfuture.forthisreason,effectivemarch31,2014theassetsand liabilitiesofthebercogrouparenolongerreportedasadisposalgroup,i.e.theyarenolongercontainedinthelineitems Assetsheldforsale or Liabilitiesassociatedwithassetsheldforsale,butareonceagainallocatedtotherespective balancesheetitems.inlinewithifrs5,thepresentationasofseptember30,2013willnotbeadjustedaccordingly. Followingthereclassification ofthe Bercogroupas of March31, 2014,the 6 millionamortizationand depreciationnot chargedsinceoctober01,2012duetoclassificationasadisposalgrouphastobecaughtup;ofthis, 3millionrelatesto theendedjune30,2013, 1milliontotheendedJune30,2013and 2milliontothe1sthalfyear endedmarch31,2014. IntheSteelAmericasbusinessareathechangetotheplanofsaleasofSeptember30,2013meantthatinsteadofthe entirebusinessareaclassifyingasadiscontinuedoperation/disposalgroup,onlythethyssenkruppsteelusaportionmet thecriteriaforpresentationasadisposalgroup. The ThyssenKrupp Steel USA disposal group comprises the ThyssenKrupp Steel USA rolling and coating plant in Calvert/Alabama.Inconnectionwiththeinitiatedsale,measurementatfairvaluelesscoststosellresultedasofSeptember 30,2013inimpairmentlossesof 2milliononintangibleassetsand 335milliononproperty,plantandequipment,which arereportedintheamountof 328millionincostofsales, 3millioninsellingexpenses,and 6millioningeneraland administrativeexpensesinthe4thquarterendedseptember30,2013. OnNovember29,2013ThyssenKruppsignedacontractwithaconsortiumofArcelorMittalandNipponSteel&Sumitomo Metal Corporation on the sale of the disposal group. At the beginning of February 2014 the approval of the relevant regulatoryauthoritieshadbeenreceived. OncompletionofthetransactiononFebruary26,2014,ThyssenKruppreceivedapurchasepriceofUS$1.55billion;added to this came preliminary purchase price adjustments, in particular for increased net working capital. At the same time a valuable slab supply contract was agreed under which the consortium will purchase 2 million tons of slabs a year from ThyssenKruppCSAuntil2019.Thesaleresultedinagainondisposalbeforetaxesof 141million. On June 29, 2014 ThyssenKrupp entered into an agreement on the sale of the Swedish shipyard ThyssenKrupp Marine SystemsABformerlyKockumsAB.TheshipyardwithfacilitiesinMalmö,KarlskronaandMusköbelongstotheIndustrial Solutions business area; it concentrates on the development, design and construction of submarines and corvettes and offersextensivemaritimeservicessuchasshiprepairing.asofjune30,2014thetransactionhasstillbeensubjecttothe approvalbytheboardsofthyssenkruppagandbytheswedishcompetitionauthority.inthemeanwhilethetransaction hasbeenconsummated.

51 CondensedInterimFinancialStatements2013/2014Selectednotes 50 TheassetsandliabilitiesofthedisposalgroupThyssenKruppMarineSystemsABasofJune30,2014arepresentedinthe followingtable: DisposalgroupThyssenKruppMarineSystemsAB million Otherintangibleassets Property,plantandequipment Deferredtaxassets Inventories Tradeaccountsreceivable Othercurrentnon-financialassets Cashandcashequivalents Assetsheldforsale Accruedpensionandsimilarobligations Provisionsforothernon-currentemployeebenefits Provisionsforcurrentemployeebenefits Othercurrentprovisions Tradeaccountspayable Othercurrentnon-financialliabilities Liabilitiesassociatedwithassetsheldforsale DiscontinuedoperationStainlessGlobalbusinessarea June30,2014 As of September 2011 as part of its program for the further strategic development, the corporate, organizational and contractual conditions for creating a separate Stainless Global and consequently the conditions for the first-time presentationasadiscontinuedoperationwereestablished Inthecontextwiththeinitiated disposal,as ofseptember30,2011themeasurement ofdiscontinuedoperations at fair value less costs to sell based on internal calculations and market observations resulted in an impairment loss of 510 million. Thereof, 45 million applied to goodwill and the remaining impairment loss was allocated to property, plant and equipment.theexpenseisrecognizedinincome/lossofdiscontinuedoperationsofthe4thquarterof2010/2011. On January 31, 2012, the agreement to combine the Finnish stainless steel producer Outokumpu and ThyssenKrupp s stainless steel operations was signed. The EU Commission approved the combination in November 2012 with certain conditions.basedonthecontractwithoutokumpuabouttheintendedsale,in2011/2012themeasurementresultedinan additionalimpairmentlossof 400millionthatwasallocatedtoproperty,plantandequipment.Theexpenseof 400million in total is recognized in income/loss of discontinued operations of the year ended September 30, 2012; thereof 265 millionrefertothe1stquarterof2011/2012. Furthermore, due to the shut-down of the Krefeld melt shop by the end of 2013, an impairment loss of 42 million on property,plantandequipmentwasrecognizedinincome/lossofdiscontinuedoperationsofthe2ndquarterof2011/2012. InMay2012,Inoxumagreedwiththerelevantworkscouncilonasocialplaninconnectionwiththeconsolidationmeasures regardingtherelocationofthedüsseldorf-benrathfacilityandtheconnectedpersonnelreduction.thesocialplanincludes early retirement models and compensations for employees leaving Inoxum. Further, it includes compensations for employeesbeingrelocated.thesocialplanwillapplyaccordinglytotheplannedclosureofthekrefeldmeltshopinthe eventtheinoxumtransactioniscompleted.asofseptember30,2012theoverallcostsinconnectionwiththatsocialplan havebeenrecognizedasarestructuringprovisionof 58millionintheaggregateforDüsseldorf-BenrathandKrefeld. OnDecember28,2012thecombinationoftheStainlessGlobalbusinessareawiththeFinnishcompanyOutokumpuwas completed. In this context ThyssenKrupp received 1 billion in cash from Outokumpu for receivables owed by the contributed Inoxum companies. In addition Outokumpu took on the external net financial debt and pension obligations.

52 CondensedInterimFinancialStatements2013/2014Selectednotes 51 ThyssenKrupp holds a share of 29.9% in Outokumpu and a financial receivable outstanding against Outokumpu with a former value of 969 million and an original maximum term of 9 years. Under the purchase agreement, this financial receivable could be adjusted by a maximum of 200 million in the event of negative financial consequences arising for Outokumpufromconditionsimposedundermergercontrollaw. In the context of the necessary refinancing of Outokumpu ThyssenKrupp AG signed a contract with Outokumpu Oyj on November29,2013transferring100%ofthesharesofVDMandASTandofothersmalleractivitiesinthestainlesssteel service center sector to ThyssenKrupp. In exchange, the contract provided for the transfer from ThyssenKrupp to OutokumpuofthefinancialreceivablecreatedinconnectionwiththeInoxumsale.Asaconsequenceofthetransactionthe obligationtooffsetanynegativefinancialconsequencesforoutokumpuundermergercontrolrequirementsinconnection withthesaleofinoxumtooutokumpuuptotheamountof 200millionwasomitted. TomeettherequirementsoftheEUCommissionThyssenKruppAGwillfullydivestits29.9%interestinOutokumpuandall financiallinkswithoutokumpugroupwillbeended.withtheclearancebytheeucommissiononfebruary12,2014,the approvalofalmostalltheregulatoryauthoritiesforthetransactionhasbeenreceived.theclosingtookplaceonfebruary 28, 2014, and after a write-down of 16 million ThyssenKrupp s financial receivable from Outokumpu from the Inoxum transactionwastransferredtooutokumpuwithafairvalueof 953million. TheresultsoftheStainlessGlobalbusinessareathatclassifiedasadiscontinuedoperationuntilDecember28,2012are presentedinthefollowingtable.inadditionthetableincludesincomeandexpenseincurredafterthedisposalbutdirectly relatedtothedisposalofstainlessglobal.intheendedjune30,2014,thismainlyreflectstheincomefromthe reversalofprovisionsaftertherewasnolongeranobligationtooffsetanynegativefinancialconsequencesforoutokumpu undermergercontrolrequirements.intheendedjune30,2013, 5millionincomeandexpenseincurredafterthe disposalmainlycomprisetransaction-relatedinterestincomeandtransactioncosts. DiscontinuedoperationStainlessGlobal million ended June30,2013 ended June30,2014 ended June30,2013 ended June30,2014 Netsales 1, Otherincome Expenses 01, Ordinaryincome/0loss1fromdiscontinuedoperations0beforetaxes Incometax0expense1/income Ordinaryincome/0loss1fromdiscontinuedoperations0netoftax Gain/0loss1recognizedondisposalofdiscontinuedoperations0beforetaxes Incometax0expense1/income Gain/0loss1recognizedondisposalofdiscontinuedoperations0netoftax Discontinuedoperations0netoftax thereof: ThyssenKruppAG'sstockholders Non-controllinginterest The29.9%shareholdinginOutokumpuobtainedafterthedisposaloftheStainlessGlobalbusinessareaisaccountedforin theconsolidatedfinancialstatementsaccordingtotheequitymethod.asofdecember31,2012thisshareholdingisinitially reported with a value of 491 million, based on the share price at the time of the transaction 0.79 multiplied by the numberofoutokumpusharesreceived.thefairvalueoftheacquiredsharesatthetimeofthetransactionwasdetermined inapurchasepriceallocationandfinalizedasofnovember29,2013.adjustedfortheshareinoutokumpu slossesand effectsfromthepurchasepriceallocation,thecarryingamountoftheinvestmentasofnovember29,2013is 253million.

53 CondensedInterimFinancialStatements2013/2014Selectednotes 52 InconnectionwiththenegotiationswithOutokumpu,anagreementwasreachedonNovember29,2013tosellthe29.9% sharein Outokumpu Oyjtofulfill theeucommission conditions. Thismeansthatasofthesame datetheinvestment in Outokumpu meets the criteria for classification as an asset held for sale. The impairment test carried out immediately beforeclassificationasanassetheldforsaleresultedinanimpairmentlossof 17milliononNovember29,2013because therecoverableamountof 236million,basedonthequotedmarketpriceforoneOutokumpushareof 0.38onNovember 29, 2013, was lower than the carrying amount of the investment of 253 million. The fair value less cost to sell of the OutokumpushareholdingatDecember31,2013cameto 255millionbasedontheOutokumpusharepriceof 0.41onthe balancesheetdate.asthisfairvaluewashigherthanthecarryingamountof 253millionimmediatelybeforeclassification as an asset held for sale, the impairment loss of 17 million recognized on November 29, 2013 had to be reversed. Compared withthecarryingamount of 305milionas of September30,2013thecarrying value oftheinvestmentwas therefore 52millionlower. Furthermoreinconnectionwiththeagreementasharederivativeliabilityintheamountof 224millionwasrecognizedfor thefirsttimeasofdecember31,2013,resultingfromthefactthatthepurchasepricefortheinvestmentinoutokumpuis contractuallyfixedat 0.05pershare.Takingintoaccounttheearningsimpactof 52millionresultingfromthereductionof thecarryingamountoftheinvestment,thetotalchargetofinancialincome/expense,netwas 276million.Furthermorein connectionwiththecontractasharederivativeliabilityintheamountof 224millionwasrecognizedforthefirsttimeasof December31,2013,resultingfromthefactthatthepurchasepricefortheinvestmentinOutokumpuwascontractuallyfixed at 0.05 per share. Taking into account the earnings impact of 52 million resulting from the reduction of the carrying amount of the investment, the total charge to financial income/expense, net was 276 million in the 1st quarter 2013/2014.InconnectionwiththedisposaloftheinvestmentonFebruary28,2014,thesharederivativewasderecognized and income of 2 million recognized, reflecting the fact that due to the 253 million limit on the reversal of impairment lossesawrite-uptofairvaluelesscosttosellof 255millionwasnotpossibleasofDecember31,2013.Thiswaspartially offsetbyexpenseof 13millionfromtherecyclingoftheforeigncurrencytranslationadjustmentpreviouslyrecognizedas equityinothercomprehensiveincome. 03 Share-basedcompensation Managementincentiveplans Inthe2ndquarterendedMarch31,2014,themembersoftheExecutiveBoardofThyssenKruppAGweregrantedstock rights of the 4th installment of the long-term incentive plan LTI and it was decided to grant stock rights of the 4th installmentoftheltitoadditionalexecutiveemployees.atthesametime,inthe2ndquarterendedmarch31,2014,stock rightsgrantedinthe1stinstallmentoftheltiexpiredwithoutanypaymentduetothedeclineoftheaveragethyssenkrupp EVAoverthethree-yearperformanceperiodcomparedtotheaverageEVAoverthepreviousthreefiscalyearperiod.Inthe endedmarchjune30,2014thegrouprecordedexpensesof 59.6millionfromtheobligationsofthelong-term incentiveplanltiendedjune30,2013: 16.8million.InthemonthsendedJune30,2014,theLTI resulted in an expense of 22.2 million 3rd quarter ended June 30, 2013: 14.6 million. In the periods presented, income/lossofdiscontinuedoperationsdoesnotincludeanyexpensefromthelti. In September2010thestructure ofthe variable compensation for members oftheexecutiveboard ofthyssenkrupp AG was modified. 25% of the performance bonus granted for the respective fiscal year and 55% of the additional bonus granteddependingontheeconomicsituationwillbeobligatorilyconvertedintothyssenkruppagstockrightstobepaid outafterathree-yearlock-upperiodbasedontheaveragethyssenkruppsharepriceinthe4thquarterofthe3rdfiscal year.intheof2010/2011thestructureofthevariablecompensationforadditionalexecutiveemployeeswas modified. 20% of the performance bonus granted for the respective fiscal year will be obligatorily converted into ThyssenKruppAGstockrightstobepaidoutafterathree-yearlock-upperiodbasedontheaverageThyssenKruppshare priceinthe4thquarterofthe3rdfiscalyear.thiscompensationitemresultedinexpensesof 5.4millioninthe ended June 30, months ended June 30, 2013: 0.8 million and in expenses of 0.5 million in the 3rd quarter endedjune30,2014endedjune30,2013: 0.7million.

54 CondensedInterimFinancialStatements2013/2014Selectednotes Accruedpensionandsimilarobligations Based on updated interestrates and fair value of planassets,an updated valuation ofaccruedpensionandhealth care obligations was performed as of June 30, 2014, taking into account these effects while other assumptions remained unchanged. Accruedpensionsandsimilarobligations million Sept.30,2013* June30,2014 Accruedpensionliability 6,427 6,932 Accruedpostretirementobligationsotherthanpensions Otheraccruedpension-relatedobligations Reclassificationduetothepresentationasliabilitiesassociatedwithassetsheldforsale Total 7,348 7,118 *FigureshavebeenadjustedduetotheadoptionofIAS19R0see Recentlyadoptedaccountingstandards 1. TheGroupappliedthefollowingweightedaverageassumptionstodeterminepensionandpostretirementbenefitobligations otherthanpensions: Weighted-averageassumptions Sept.30,2013 June30,2014 Netperiodicpensioncost in% Germany Outside Germany Total Germany Outside Germany Discountrateforaccruedpensionliability Discountrateforpostretirementobligationsotherthan pensions Thenetperiodicpostretirementbenefitcostforhealthcareobligationsisasfollows: Total ended June30,2013* ended June30,2014 ended June30,2013* ended June30,2014 million Germany Outside Germany Total Germany Outside Germany Total Germany Outside Germany Total Germany Outside Germany Servicecost Netinterestcost Administrationcost Pastservicecost Curtailmentand settlementgains Netperiodicpension cost *FigureshavebeenadjustedduetotheadoptionofIAS19R0see Recentlyadoptedaccountingstandards 1. Total The above presented net periodic pension cost for defined benefit plans in Germany include cost of 5 million in the endedjune30,2013andof 0millionintheendedJune30,2013.Theabovepresentednetperiodic pensioncostfordefinedbenefitplansoutsidegermanydoesnotincludeanycostintheendedjune30,2013 andintheendedjune30,2013attributabletodiscontinuedoperations.thecostsincurredarepresentedin income/lossfromdiscontinuedoperationsintheconsolidatedstatementofincome.

55 CondensedInterimFinancialStatements2013/2014Selectednotes 54 Thenetperiodicpostretirementcostforhealthcareobligationsisasfollows: Netperiodicpostretirementbenefitcost million ended June30,2013 ended June30,2014 ended June30,2013 ended June30,2014 Servicecost Netinterestcost Administrationcost Netperiodicpostretirementbenefitcost Totalequity Capitalstockincrease On December 02, 2013, the Executive Board of ThyssenKrupp AG with the approval of the Executive Committee of the Supervisory Board resolved in accordance with the authorization under 5, par. 5 of the Articles of Association of the CompanytoincreasethecapitalstockofThyssenKruppAGby10percentbyissuing51,448,903newnoparbearershares inthecompanyandtoexcludesubscriptionrights. OnDecember03,2013theannouncedcapitalincreasewassuccessfullycompletedinanacceleratedbookbuildingprocess. Thenewlyissued51,448,903noparsharesinThyssenKruppAGwereplacedwithGermanandinternationalinstitutional investorsatapriceof 17.15pershare.Theplacementresultedingrossproceedsof 882million,thetransactioncosts incurredwererecognizeddirectlyinequity. ThiscapitalmeasurestrengthenedtheGroup sequityandreducesnetfinancialdebt. Authorizations ThefollowingauthorizationswereissuedbyresolutionoftheAnnualGeneralMeetingonJanuary17,2014: InrevocationofthepartlyusedauthorizationtoincreasethecapitalstockissuedbytheAnnualGeneralMeetingonJanuary 20,2012,theExecutiveBoardwasauthorized,withtheapprovaloftheSupervisoryBoard,toincreasethecapitalstockon one or more occasions on or before January 16, 2019 by up to 370 million by issuing up to 144,531,250 new no-par bearer shares in exchange for cash and/or contributions in kind authorized capital. The shareholders are in principle entitledtosubscriptionrights.however,theexecutiveboardisauthorized,withtheapprovalofthesupervisoryboard,to excludeshareholdersubscriptionrightsincertaincases;theoptionofexcludingsubscriptionrightsislimitedto20%ofthe capitalstock. 5,par.5oftheArticlesofAssociationofThyssenKruppAGhasbeenrewordedaccordingly. TheExecutiveBoardwasauthorized,withtheapprovaloftheSupervisoryBoard,toissueonceorseveraltimesbearerof registeredwarrantand/orconvertiblebondsinthetotalparvalueofupto 2billionwithorwithoutlimitedterms,andto granttoorimposeontheholdersorcreditorsofconvertiblebondsconversionrightsorobligationsforno-parbearershares ofthyssenkruppagwithatotalshareofthecapitalstockupto 250millioninaccordancewiththeconditionsofthese bonds.theauthorizationisvaliduntiljanuary16,2019.theexecutiveboardisauthorized,subjecttotheapprovalofthe SupervisoryBoard,toexcludeshareholders subscriptionrightsincertaincases. FurthermoretheExecutiveBoardwasauthorizedtoconditionallyincreasethecapitalstockbyupto 250millionbyissueof upto97,626,250newno-parbearersharesconditionalcapital.theconditionalcapitalincreaseservesthegrantingofnoparbearersharesuponexerciseofconversionoroptionrights,uponfulfilmentofcorrespondingconversionobligationsor upon exercise of an option of the ThyssenKrupp AG to grant no-par shares of the ThyssenKrupp AG in whole or in part insteadofpaymentofthecashamountduetotheholdersorcreditorsofconvertibleorwarrantbondsthatareissuedby ThyssenKruppAGorasubordinateGroupcompanyagainstcashcontributiononorbeforeJanuary16,2019asaresultof

56 CondensedInterimFinancialStatements2013/2014Selectednotes 55 the authorization resolution passed by the Annual General Meeting on January 17, New shares are issued at the optionorconversionpricetobedeterminedineachcaseaccordingtotheabovementionedauthorizationresolution.anew paragraph6hasbeeninsertedin 5oftheArticlesofAssociationofThyssenKruppAG. 06 Issuanceofabondandagreementofasyndicatedcreditfacility OnFebruary19,2014ThyssenKruppissueda1.25billionEurobondwithamaturityof5yearsand8monthsdocumented undertheexisting10billioneurodebtissuanceprogramme.thebondcarriesacouponof3.125%p.a.atanissuanceprice of %. With this transaction ThyssenKrupp AG made use of the good market environment, extended its maturity profileandstrengthenedthedebtcapitalmarketshareinisfinancingmix. OnMarch28,2014ThyssenKruppAGagreedanew 2.0billionsyndicatedcreditlinewithitsfinancialpartners.Thefacility hasaninitialtermtomarch28,2017.attheendofthefirstandsecondyearsitcanbeextendedbyayearineachcase withtheapprovalofthelenders.thenewcreditlinereplacesthe 2.5billioncreditfacilitythatwouldhaveexpiredinJuly 2014.Asofthereportingdatethecreditfacilityhadnotbeenused.Thecreditlinewasnotutilizedasofthebalancesheet date. 07 Contingenciesincludingpendinglawsuitsandclaimsfordamages Guarantees ThyssenKruppAGaswellas,inindividualcases,itssubsidiarieshaveissuedorhavehadguaranteesinfavourofbusiness partnersorlenders.thefollowingtableshowsobligationsunderguaranteeswheretheprincipaldebtorisnotaconsolidated Groupcompany: Contingencies million Maximum potential amountof future payments asof Provisionasof June30,2014 June30,2014 Advancepaymentbonds Performancebonds Thirdpartycreditguarantee 7 0 Residualvalueguarantees 61 2 Otherguarantees 21 0 Total Thetermsofthoseguaranteesdependonthetypeofguaranteeandmayrangefromthreemonthstotenyearse.g.rental paymentguarantees.thebasisforpossiblepaymentsundertheguaranteesisalwaysthenon-performanceoftheprincipal debtor under a contractual agreement, e.g. late delivery, delivery of non-conforming goods under a contract or nonperformancewithrespecttothewarrantedqualityordefaultunderaloanagreement. All guarantees are issued by or issued by instruction of ThyssenKrupp AG or subsidiaries upon request of the principal debtorobligatedbytheunderlyingcontractualrelationshipandaresubjecttorecourseprovisionsincaseofdefault.ifsuch aprincipal debtorisacompany ownedfully or partially bya foreignthird party,thethird partyis generallyrequestedto provideadditionalcollateralinacorrespondingamount. Commitmentsandothercontingencies Duetothehighvolatilityofironoreprices,intheSteelEuropeandSteelAmericasbusinessareastheexistinglong-term ironoreandironorepelletssupplycontractsaremeasuredfortheentirecontractperiodattheironorepricesapplyingasof therespectivebalancesheetdate.comparedtoseptember30,2013,thepurchasingcommitmentsdecreasedduetothe reducedironorepricesby 4.0billionto 10.8billion. Therehavebeennomaterialchangestotheothercontingenciessincetheendofthelastfiscalyear.

57 CondensedInterimFinancialStatements2013/2014Selectednotes 56 Pendinglawsuitsandclaimsfordamages FormerstockholdersofThyssenandofKrupphavepetitionedperArt.305UmwGReorganizationAct previousversion forajudicialreviewoftheshareexchangeratiosusedinthemergerofthyssenagandfried.kruppaghoesch-kruppto formthyssenkruppag.theproceedingsarependingwiththedüsseldorfregionalcourt.shouldarulingbemadeinfavour of the petitioners, the Court would require settlement to be made via an additional cash payment plus interest. The additionalpaymentalsowouldberequiredtobemadetoallaffectedstockholders,eveniftheywerenotpetitionersinthe judicial proceedings. However, the Group expects no such payments to become due as the exchange ratios were duly determined,negotiated between unrelated partiesand auditedandconfirmed bytheauditorthathasbeenappointed by court, and differ onlyinsignificantlyfromthe valueratiodetermined bytheexpertappointed bythedüsseldorfregional Court. In connection with the rail cartel various companies of the Deutsche Bahn group DB had filed claims against ThyssenKruppGfTGleistechnik,ThyssenKruppMaterialsInternationalandfurthercartelparticipants.DBsoughtextensive information and in this connection estimated the total damages caused by all participants in the cartel at approx. 550 millionplusinterestofapprox. 300million.AsaresultoftalksheldwithDBonthisasettlementofthelegaldisputewas agreed. In January 2014 the responsible bodies and in the case of DB the funding providers gave their approval. The settlementhasthereforeenteredintoeffect.thesettlementpaymentwasmadeinfebruary2014.inthemeantimefurther companieshavealsoassertedorinmostcasesannouncedout-of-courtclaimsagainstthyssenkruppinconnectionwith therailcartel.thyssenkrupphasrecognizedprovisionsforrisksinconnectionwiththeclaimsfordamages. ClaimsfordamageshavebeenfiledagainstThyssenKruppAGandcompaniesoftheThyssenKruppGroupinconnection with the elevator cartel. ThyssenKrupp is answering claims for damages being pursued in court. Provisions for litigation risks are recognized where individual claims meet the requirements of IAS 37 for probability of occurrence and can be reliablyestimated. Actingonananonymoustip,theGermanFederalCartelOfficehasbeeninvestigatingThyssenKruppSteelEuropeandother companies since the end of February 2013 based on an initial suspicion of price fixing in the delivery of certain steel productstothegermanautoindustryanditssuppliersoveraperioddatingbackto1998.thyssenkrupphaslaunchedits own investigation into the allegations with the support of external lawyers. The amnesty program we carried out from April15toJune15,2013producednoleadsregardingtheongoinginvestigations.TheinvestigationsbytheFederalCartel Officeareongoing.TheinternalinvestigationslaunchedinresponsetotheinvestigationsoftheFederalCartelOfficeareat anadvancedstagebutnotyetcomplete.basedonthefactscurrentlyknowntous,significantadverseconsequenceswith regardtothegroup sasset,financialandearningssituationcannotberuledout. In connection with the majority interest previously held by the Industrial Solutions business area in the Greek shipyard HellenicShipyardsHSYandtheconstructionofsubmarinesfortheGreekNavy,theGreekgovernmenthasfiledlegaland arbitrationactionstoclaimcompensationofapprox. 2.1billionandreimbursementofa 115millioninstallmentpayment fromthyssenkruppindustrialsolutionsagandthyssenkruppmarinesystemsgmbhaswellasfromhsyandthecurrent majorityshareholderofhsyduetotheonlypartialcompletionanddeliveryofthesubmarinestodate.inouropinion,these claimsareunjustified. Inadditionfurtherlegalandarbitrationactionsandofficialinvestigationsandproceedingsaswellasclaimshavebeenfiled againstthyssenkruppcompaniesormaybeinitiatedorfiledinthefuture.theyincludeforexamplelegal,arbitrationand out-of-courtdisputesinconnectionwiththeconstruction,taxconcessionsgrantedandoperationofthebraziliansteelplant, theacquisitionordisposalofcompaniesorcompanyunitswhichmayleadtopartialrepaymentofthepurchasepriceorto the payment of damages or to tax charges. Furthermore, damage claims may be payable to contractual partners, customers, consortium partners and subcontractors under performance contracts. Predicting the progress and results of lawsuitsinvolvesconsiderabledifficultiesanduncertainties.thismeansthatlawsuitsnotdisclosedseparatelycouldalso individuallyortogetherwithotherlegaldisputeshaveanegativeandalsopotentiallymajorfutureimpactonthegroup snet

58 CondensedInterimFinancialStatements2013/2014Selectednotes 57 assets,financialpositionandresultsofoperations.however,atpresentthyssenkruppdoesnotexpectpendinglawsuitsnot explainedseparatelyinthissectiontohaveamajornegativeimpactonthegroup snetassets,financialpositionandresults ofoperations. 08 Financialinstruments Thefollowingtableshowsfinancialassetsandliabilitiesbymeasurementcategoriesandclasses.Financeleasereceivables andliabilities,andderivativesthatqualifyforhedgeaccountingarealsoincludedalthoughtheyarenotpartofanyias39 measurementcategory. FinancialinstrumentsasofJune30,2014 Measurementinaccordance withias39 Measurement inaccordance withias17 million Carrying amounton balancesheet June30,2014 +Amortized, cost Fairvalue recognized inprofit orloss Fairvalue recognized inequity Amortized cost Fairvalue June30,2014 Tradeaccountsreceivable,net0excludingfinancelease1 5,661 5,661 5,661 Loansandreceivables 5,661 5,661 Financeleasereceivables Otherfinancialassets Loansandreceivables Available-for-salefinancialassets Derivativesthatdonotqualifyforhedgeaccounting 0Financialassetsheldfortrading Derivativesthatqualifyforhedgeaccounting Cashandcashequivalents 3,511 3,511 3,511 Loansandreceivables 3,511 3,511 Totaloffinancialassets 9,597 thereofbymeasurementcategoriesofias39: Loansandreceivables 9,420 9,420 9,420 Available-for-salefinancialassets Derivativesthatdonotqualifyforhedgeaccounting 0Financialassetsheldfortrading Financialdebt0excludingfinancelease1 7,584 7,584 8,027 Financialliabilitiesmeasuredatamortizedcost 7,584 8,027 Financeleaseliabilities Tradeaccountspayable 4,518 4,518 4,518 Financialliabilitiesmeasuredatamortizedcost 4,518 4,518 Otherfinancialliabilities 1, ,024 Financialliabilitiesmeasuredatamortizedcost Derivativesthatdonotqualifyforhedgeaccounting 0Financialliabilitiesheldfortrading Derivativesthatqualifyforhedgeaccounting Totaloffinancialliabilities 13,187 thereofbymeasurementcategoriesofias39: Financialliabilitiesmeasuredatamortizedcost 12,928 12,928 13,371 Derivativesthatdonotqualifyforhedgeaccounting 0Financialliabilitiesheldfortrading Thecarryingamountsoftradeaccountsreceivable,othercurrentreceivablesaswellascashandcashequivalentsequal theirfairvalues.thefairvalueofloansequalsthepresentvalueofexpectedcashflowswhicharediscountedonthebasis ofinterestratesprevailingonthebalancesheetdate. Available-for-salefinancialassetsprimarilyincludeequityanddebtinstruments.Theyareingeneralmeasuredatfairvalue, whichisbasedtotheextentavailableonmarketpricesasofthebalancesheetdate.whennoquotedmarketpricesinan activemarketareavailableandthefairvaluecannotbereliablymeasured,equityinstrumentsaremeasuredatcost.

59 CondensedInterimFinancialStatements2013/2014Selectednotes 58 The fair value of foreign currency forward transactions is determined on the basis of the middle spot exchange rate applicableas ofthebalancesheetdate,andtakingaccount of forward premiums or discountsarising fortherespective remainingcontracttermcomparedtothecontractedforwardexchangerate.commonmethodsforcalculatingoptionprices areusedforforeigncurrencyoptions.thefairvalueofanoptionisinfluencednotonlybytheremainingtermofanoption, butalsobyotherfactors,suchascurrentamountandvolatilityoftheunderlyingexchangeorbaserate. Interestrateswapsandcrosscurrencyswapsaremeasuredatfairvaluebydiscountingexpectedcashflowsonthebasisof marketinterestratesapplicablefortheremainingcontractterm.inthecaseofcrosscurrencyswaps,theexchangeratesfor eachforeigncurrency,inwhichcashflowsoccur,arealsoincluded. Thefairvalueofcommodityfuturesisbasedonpublishedpricequotations.Itismeasuredasofthebalancesheetdate, bothinternallyandbyexternalfinancialpartners. Thecarryingamountsoftradeaccountsreceivableandothercurrentliabilitiesequaltheirfairvalues.Thefairvalueoffixed rateliabilitiesequalsthepresentvalueofexpectedcashflows.discountingisbasedoninterestratesapplicableasofthe balancesheetdate.thecarryingamountsoffloatingrateliabilitiesequaltheirfairvalues. Financialassetsandliabilitiesmeasuredatfairvaluecouldbecategorizedinthefollowingthreelevelfairvaluehierarchy: FairvaluehierarchyasofJune30,2014 million Balanceasof June30,2014 Level1 Level2 Level3 Financialassetsatfairvalue Fairvaluerecognizedinprofitorloss Derivativesthatdonotqualifyforhedgeaccounting0Financialassetsheldfortrading Derivativesthatqualifyforhedgeaccounting Fairvaluerecognizedinequity Available-for-salefinancialassets Derivativesthatqualifyforhedgeaccounting Total Financialliabilitiesatfairvalue Fairvaluerecognizedinprofitorloss Derivativesthatdonotqualifyforhedgeaccounting0Financialassetsheldfortrading Derivativesthatqualifyforhedgeaccounting Fairvaluerecognizedinequity Derivativesthatqualifyforhedgeaccounting Total Thefairvaluehierarchyreflectsthesignificanceoftheinputsusedtodeterminefairvalues.Financialinstrumentswithfair value measurement based on quoted prices in active markets are disclosed in Level 1. In Level 2 determination of fair valuesisbasedonobservableinputs,e.g.foreignexchangerates.level3comprisesfinancialinstrumentsforwhichthefair valuemeasurementisbasedonunobservableinputs. Thefollowingtableshowsthereconciliationoflevel3financialinstruments: Reconciliationlevel3financialinstrumentsinmillion BalanceasofSept.30,20130asset/0liability11 Changesrecognizedthroughprofitorloss BalanceasofJune30,20140asset/0liability

60 CondensedInterimFinancialStatements2013/2014Selectednotes 59 Thefinancialliability,whichisbasedonindividualvaluationparametersandrecognizedatfairvalue,comprisesafreight derivative which was valued according to the contractually agreed minimum volume on the basis of recognized hedge modelstakingintoaccountthemarketdataprevailingattheclosingdate.theresultingincomeeffectisrecognizedinthe consolidatedstatementofincomeunder"otherexpenses"and"otherincome",respectively. ThenotionalamountsandfairvaluesoftheGroup sderivativefinancialinstrumentsareasfollows: Derivativefinancialinstruments million Notional amount Sept.30,2013 Carrying amount Sept.30,2013 Notional amount June30,2014 Carrying amount June30,2014 Assets Foreigncurrencyderivativesthatdonotqualifyforhedgeaccounting 2, , Foreigncurrencyderivativesqualifyingascashflowhedges Embeddedderivatives Interestratederivativesqualifyingascashflowhedges* , Commodityderivativesthatdonotqualifyforhedgeaccounting Commodityderivativesqualifyingascashflowhedges Total 3, , Liabilities Foreigncurrencyderivativesthatdonotqualifyforhedgeaccounting 1, Foreigncurrencyderivativesqualifyingascashflowhedges Embeddedderivatives Interestratederivativesqualifyingascashflowhedges* 1, Commodityderivativesthatdonotqualifyforhedgeaccounting** Commodityderivativesqualifyingascashflowhedges Total 3, , *inclusiveofcrosscurrencyswaps **inclusiveofcargoderivatives 09 Segmentreporting At January 01, 2013 the former Plant Technology and Marine Systems business areas were combined into the new Industrial Solutionsbusinessarea.Industrial Solutionsisa leadinginternationalsupplierinspecialandlarge-scale plant construction as well as naval shipbuilding. After the Steel Americas business area was classified as a discontinued operationasfrom September30,2012,itwasreclassifiedas a continuing operationeffectiveseptember30,2013.the figuresfortheprior-yearperiodhavebeenadjustedaccordingly.

61 CondensedInterimFinancialStatements2013/2014Selectednotes 60 Segment information for the 9 months ended June 30, 2013 and June 30, 2014 as well as for the 3rd quarter ended June30,2013andJune30,2014isasfollows: Segmentinformation million Components Technology Elevator Technology Industrial Solutions Materials Services Steel Steel EuropeAmericas Corporate Stainless Global* Consolidation Group endedjune30,2013 Externalsales 4,213 4,480 4,026 8,556 6,006 1, , ,872 InternalsaleswithintheGroup , , Totalsales 4,222 4,482 4,040 8,794 7,327 1, ,402 01, ,872 EBIT** AdjustedEBIT** endedjune30,2014 Externalsales 4,581 4,631 4,433 9,475 5,512 1, ,146 InternalsaleswithintheGroup , , Totalsales 4,586 4,634 4,466 9,839 6,691 1, , ,146 EBIT ,070 AdjustedEBIT endedjune30,2013 Externalsales 1,514 1,561 1,302 2,984 2, ,920 InternalsaleswithintheGroup Totalsales 1,517 1,562 1,306 3,056 2, ,920 EBIT** AdjustedEBIT** endedjune30,2014 Externalsales 1,601 1,608 1,558 3,707 1, ,742 InternalsaleswithintheGroup Totalsales 1,603 1,609 1,585 3,780 2, ,742 EBIT AdjustedEBIT *discontinuedoperation **ThefiguresofComponentsTechnologyundSteelAmericashavebeenadjusted. Net sales and adjusted EBIT as well as operating EBIT reconcile to EBT from continuing operations as presented in the consolidatedstatementofincomeasfollowing: Reconciliationofsales million ended June30,2013 ended June30,2014 ended June30,2013 ended June30,2014 Salesaspresentedinsegmentreporting 29,872 30,146 9,920 10,742 -SalesofStainlessGlobal 01, SalesofdiscontinuedoperationstoGroupcompanies SalesofGroupcompaniestodiscontinuedoperations Salesaspresentedinthestatementofincome 28,649 30,146 9,920 10,742 ReconciliationofEBITtoEBT million ended June30, ended 2013* June30,2014 ended June30, 2013* ended June30,2014 AdjustedEBITaspresentedinsegmentreporting Specialitems EBITaspresentedinsegmentreporting 146 1, DepreciationofcapitalizedborrowingcostseliminatedinEBIT Non-operatingincome/0expense1fromcompaniesaccountedforusingtheequity method Financeincome Financeexpense , ItemsoffinanceincomeassignedtoEBITbasedoneconomicclassification ItemsoffinanceexpenseassignedtoEBITbasedoneconomicclassification EBT-Group EBTofStainlessGlobal EBTfromcontinuingoperationsaspresentedinthestatementofincome *FigureshavebeenadjustedduetotheadoptionofIAS19R,thereclassificationofSteelAmericasasacontinuingoperation,theeliminationoftheimpairmentofSteelAmericas aswellasthecatchupofamortizationanddepreciationofthyssenkruppcsaandberco0see Recentlyadoptedaccountingstandards andnote021.

62 CondensedInterimFinancialStatements2013/2014Selectednotes Costofsales CostofsalesfortheendedJune30,2014,includeswrite-downsofinventoriesof 93millionwhichmainlyrelate tothesteelamericas,componentstechnologyandmaterialsservicesbusinessareas.asofseptember30,2013,writedownsamountedto 94million.IntheendedJune30,2013,costofsalesincludeswrite-downsofinventoriesof 37millionwhichmainlyrelatedtotheSteelEurope,ComponentsTechnologyandMaterialsServicesbusinessareas. Furthermore,costofsalesof2013/2014includes 64millionrestructuringexpense,whichrelatesmostlytotheElevator TechnologyandSteelEuropebusinessareas;thereof 13millionrelatestotheendedJune30, Income/0expense1fromcompaniesaccountedforusingtheequitymethod IntheendedJune30,2014,thelineitemincludesexpensesof 52millionincurredinthe1sthalfyearended March31,20141sthalfyearendedMarch31,2013: 38millionresultingfromtheinvestmentinOutokumpuaccounted for using the equity method; these expenses comprise the 1st quarter 2013/2014 pro rata losses of Outokumpu from October01,2013toNovember29,2013andthemeasurementatfairvalueendedJune30,2013:expensesof 108millionandendedJune30,2013:expensesof 70million. Earningspershare 12 Basicearningspershareiscalculatedasfollows: Earningspershare endedjune30, 2013* endedjune30, 2014 endedjune30, 2013* endedjune30, 2014 Totalamount inmillion Earningsper sharein Totalamount inmillion Earningsper sharein Totalamount inmillion Earningsper sharein Totalamount inmillion Earningsper sharein Income/0loss1fromcontinuingoperations0netoftax1 0attributabletoThyssenKruppAG'sstockholders Income/0loss1fromdiscontinuedoperations0netoftax1 0attributabletoThyssenKruppAG'sstockholders Income/0loss10attributabletoThyssenKruppAG's stockholders Weightedaverageshares 514,489, ,123, ,489, ,937,947 *FigureshavebeenadjustedduetotheadoptionofIAS19R,thereclassificationofSteelAmericasasacontinuingoperation,theeliminationoftheimpairmentofSteelAmericas aswellasthecatchupofamortizationanddepreciationofthyssenkruppcsaandberco0see Recentlyadoptedaccountingstandards andnote021. Relevantnumberofcommonsharesforthedeterminationofearningspershare Earnings per share have been calculated by dividing net income/loss attributable to common stockholders of ThyssenKruppAGnumeratorbytheweightedaveragenumberofcommonsharesoutstandingdenominatorduringthe period.sharesissued,soldorreacquiredduringtheperiodhavebeenweightedfortheportionoftheperiodthattheywere outstanding. IntheendedJune30,2014andintheendedJune30,2014theweightedaveragenumberofshares increasedasaresultofthecapitalincreasecarriedoutatthebeginningofdecember2013seenote05. Therewerenodilutivesecuritiesintheperiodspresented.

63 CondensedInterimFinancialStatements2013/2014Selectednotes Additionalinformationtotheconsolidatedstatementofcashflows Theliquidfundsconsideredintheconsolidatedstatementofcashflowscorrespondtothe Cashandcashequivalents line itemintheconsolidatedstatementoffinancialpositiontakingintoaccountthecashandcashequivalentsattributabletothe disposalgroupsinclusiveofdiscontinuedoperations. Non-cashinvestingactivities IntheendedJune30,2014,theacquisitionandfirst-timeconsolidationofcompaniescreatedanincreaseinnoncurrentassetsof 694millionendedJune30,2013: 14million.IntheendedJune30,2014these increasesamountedto 35millionendedJune30,2013: 4million,mainlyresultingfromthecompensation paymentofoutokumpuseenote01. The non-cash addition of assets under finance leases in the 9 months ended June 30, 2014 amounted to 7 million endedjune30,2013: 7millionandintheendedJune30,2014to 2millionended June30,2013: 2million. Inconnectionwiththesecondconstructionstageofthe ThyssenKruppQuarter locatedinessen,therewasanon-cash additionofproperty,plantandequipmentof 44millionintheendedJune30,2014endedJune30, 2013: 20 million and of 8 million in the 3rd quarter ended June 30, rd quarter ended June 30, 2013: 10million. Non-cashfinancingactivities IntheendedJune30,2014,theacquisitionandfirst-timeconsolidationofcompaniesresultedinanincreasein grossfinancialdebtof 313millionendedJune30,2013: 1million;intheendedJune30,2014 theseincreasesamountedto 0millionendedJune30,2013: 1million. Inconnectionwiththesecondconstructionstageofthe ThyssenKruppQuarter locatedinessen,therewasanon-cash increaseinfinancialdebtof 44millionintheendedJune30,2014endedJune30,2013: 20million andof 8millionintheendedJune30,2014endedJune30,2013: 10million. Essen,August11,2014 ThyssenKruppAG TheExecutiveBoard Hiesinger Burkhard KaufmannKerkhoff

64 2013/2014Reviewreport 63 Reviewreport ToThyssenKruppAG,DuisburgandEssen Wehavereviewedthecondensedconsolidatedinterimfinancialstatements-comprisingstatementoffinancialposition,the statementofincomeandstatementofcomprehensiveincome,thestatementofchangesinequity,thestatementofcash flows and selected explanatory notes and the interim group management report of ThyssenKrupp AG, Duisburg and Essen,fortheperiodfromOctober1,2013,toJune30,2014,whicharepartofthehalf-yearfinancialreportpursuantto Article37xAbs.paragraph3WpHG"Wertpapierhandelsgesetz"GermanSecuritiesTradingAct.Thepreparationofthe condensedconsolidatedinterimfinancialstatementsinaccordancewiththeifrsapplicabletointerimfinancialreportingas adoptedbytheeuandoftheinterimgroupmanagementreportinaccordancewiththeprovisionsofthegermansecurities 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 statementsandontheinterimgroupmanagementreportbasedonourreview. Weconductedourreviewofthecondensedconsolidatedinterimfinancialstatementsandtheinterimgroupmanagement reportinaccordancewithgermangenerallyacceptedstandardsforthereviewoffinancialstatementspromulgatedbythe Institut der Wirtschaftsprüfer Institute of Public Auditors in Gemany IDW and additional observed the International Standard onreviewengagements"review of InterimFinancialInformationPerformed bytheindependentauditor ofthe Entity"ISRE2410.Thosestandardsrequirethatweplanandperformthereviewsothatwecanprecludethroughcritical evaluation,withmoderateassurance,thatthecondensedconsolidatedinterimfinancialstatementshavenotbeenprepared, inmaterialrespects,inaccordancewiththeifrsapplicabletointerimfinancialreportingasadoptedbytheeuandthatthe interim group management report has not been prepared, in material respects, in accordance with the provisions of the GermanSecuritiesTradingActapplicabletointerimgroupmanagementreports.Areviewislimitedprimarilytoinquiriesof company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statementaudit.since,inaccordancewithourengagement,wehavenotperformedafinancialstatementaudit,wecannot issueanauditopinion. Basedonour review, nomatters havecometoour attentionthat causeusto presumethatthecondensed consolidated interimfinancialstatementshavenotbeenprepared,inmaterialrespects,inaccordancewiththeifrsapplicabletointerim financialreportingasadoptedbytheeunorthattheinterimgroupmanagementreporthasnotbeenprepared,inmaterial respects,inaccordancewiththeprovisionsofthegermansecuritiestradingactapplicabletointerimgroupmanagement reports. Essen,August13,2014 PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft Prof.Dr.NorbertWinkeljohann VolkerLinke GermanPublicAuditor GermanPublicAuditor

65 Furtherinformation2013/2014ReportbytheSupervisoryBoardAuditCommittee 64 ReportbytheSupervisoryBoardAuditCommittee Theinterimreportforthefirstofthe2013/2014fiscalyearHOctober2013toJune2014Iandthereviewreportby thegroup sfinancialstatementauditorswerepresentedtotheauditcommitteeofthesupervisoryboardinitsmeetingon August13,2014andexplainedbytheExecutiveBoard.Theauditorswereavailabletoprovideadditionalinformation.The AuditCommitteeapprovedtheinterimreport. Essen,August13,2014 ChairmanoftheAuditCommittee Prof.Dr.BernhardPellens

66 Furtherinformation2013/2014Contactand2014/2015dates 65 Contactand2014/2015dates Contact CorporateCommunications Telephone Fax InvestorRelations Institutionalinvestorsandanalysts Telephone Fax Privateinvestors Infoline Fax Address ThyssenKruppAG ThyssenKruppAllee1,45143Essen,Germany Postfach,45063Essen Telephone Fax Forward-lookingstatements 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 sabilitytocontrolorestimateprecisely,suchasfuture market and economic conditions, the behavior of other market participants, the ability to successfullyintegrate acquired businesses and achieve anticipated synergies and the actions of government regulators.ifanyoftheseorotherrisksanduncertaintiesoccur,orif theassumptionsunderlyinganyofthesestatementsproveincorrect, thenactualresultsmaybemateriallydifferentfromthoseexpressedor impliedbysuchstatements.thyssenkruppdoesnotintendorassume any obligation to update any forward-looking statements to reflect eventsorcircumstancesafterthedateofthesematerials. Roundingdifferencesandratesofchange Percentages and figures in this report may include rounding differences.thesignsusedtoindicateratesofchangearebasedon economic aspects: Improvements are indicated by a plus 4+5 sign, deteriorations are shown in brackets 4 5. Very high positive and negativeratesofchange4 1,000%or 41005%5areindicatedby++ and respectively. 2014/2015dates November20,2014 Annualpressconference Conferencecallwithanalystsandinvestors January30,2015 AnnualGeneralMeeting February13,2015 Interimreport 1stquarter2014/2015HOctobertoDecemberI Conferencecallwithanalystsandinvestors May12,2015 Interimreport 1sthalf2014/2015HOctobertoMarchI Conferencecallwithanalystsandinvestors August14,2015 Interimreport 2014/2015HOctobertoJuneI Conferencecallwithanalystsandinvestors Variancesfortechnicalreasons Under statutory disclosure requirements, the Company must submit thisinterimreporttotheelectronicfederalgazette4bundesanzeiger5. Fortechnicalreasonstheremaybevariancesbetweentheaccounting documentscontainedinthisreportandthosepublishedinthefederal Gazette. ThisEnglishversionoftheannualreportisatranslationoftheoriginal Germanversion;intheeventofvariances,theGerman versionshall takeprecedenceovertheenglishtranslation. Bothlanguageversionsoftheinterimreportcanbedownloadedfrom theinternetathttp://

67 ThyssenKrupp AG ThyssenKrupp Allee Essen, Germany