Presentation ThyssenKrupp, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27,

Transcription

1 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27,

2 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Agenda Claus Ehrenbeck Head of Investor Relations Overview Track Record Investment Strategy and Acceleration of Growth Forward Strategy in Steel and Stainless

3 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Group Overview AG Sales 47.1 billion EBT 2,623 million TKVA 1,510 million FCF 1,771 million Employees 187,586 Steel Stainless Technologies Elevator Services Sales 12.1 bn EBT 1,406 m TKVA 876 m FCF 1,146 m Employees 38,840 Sales 6.4 bn EBT 423 m TKVA 199 m FCF 243 m Employees 12,197 Sales 11.4 bn EBT 410 m TKVA 215 m FCF 425 m Employees 54,757 Sales 4.3 bn EBT 391 m TKVA 264 m FCF 87 m Employees 36,247 Sales 14.2 bn EBT 482 m TKVA 294 m FCF 147 m Employees 40,163 Steelmaking Industry Auto Processing Nirosta Acciai Speciali Terni Mexinox Shanghai Krupp Stainless Stainless Int. VDM Plant Technology Marine Systems Mechanical Components Automotive Solutions Transrapid 4 regional business units Escalators/ Passenger Boarding Bridges Accessibility Materials Services International Materials Services North America Industrial Services Special Products Inter-segment sales not consolidated; organizational structure as at Oct 1, 2006; figures for FY 2005/06

4 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Significant Leading Market Positions (I) Steel Flat Carbon Steel (hot-rolled) Top 2 (Europe) Stainless Stainless Flat Top 1 Tinplate Top 3 (Europe) Nickel Alloys Top 2 Electrical Steel Top 2 Titanium Top 1 (Europe) Coated Products Top 2 (Europe) Stainless Processing (forgings, tubes) Top 1 (Europe) Tailored Blanks Top 1

5 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Significant Leading Market Positions (II) Technologies Uhde Top 1-3 Polysius Top 1-2 Fördertechnik Top 1 Marine Systems Top 1 Rothe Erde Top 1 Berco Top 1 Camshafts Top 1 Crankshafts Top 1-3 Waupaca Top 1 (USA) Steering (steering columns) Top 1 Transrapid USP Elevator Elevator (elevators/escalators) Top 3 Services Mat. Services Intern. Top 1 (Europe) Mat. Services NA Top 3 Industrial Services Top 1-3 (Eur.)

6 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Q2 2006/07 Highlights Outlook FY 2006/07 raised: EBT 3.5 bn - excluding major nonrecurring items; sales 50 bn Mid-term targets raised, long-term targets set: in bn EBT TKVA Sales 2009/10 (mid-term) /12 (long-term) Green light for Greenfield projects in the US (Steel, Stainless) Restructuring of Automotive activities continued

7 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, EBT Track Record EBT million 3,500* CAGR: 58.0% p.a. 2, ,677 1, /02 */** 2002/03 ** 2003/04 ** 2004/ /06 H1: 2,114* 1,052* 1, /07 * excl. major nonrecurring items (Elevator fine, 480 m) ** US GAAP

8 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Group Overview by Segments Quarterly EBT 2005/06 and 2006/ / /2007 million Q1 Q2 Q3 Q4 FY Q1 Q2 Steel , Stainless Technologies Elevator (390) Services Corporate (137) (17) (119) (173) (446) (93) (43) Consolidation (5) (4) (4) (30) (43) (6) (5) Group ,623 1, * * * incl. Elevator fine

9 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Group Outlook 2006/07: EBT incl. Major Nonrecurring Items > 3.0 bn EBT outlook in bn 3.5 >3.0 Major nonrecurring items H1 Elevator fine: 480 m (expense: Q2, cash out: Q3) H2 Gain from sale of property portfolio (Q3) Automotive restructuring including effects from potential divestments (H2) excluding including major nonrecurring items

10 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Continues the Delta EVA Story ROCE and TKVA (incl. major nonrecurring items) % / million ROCE TKVA Δ TKVA 1, % 997 Δ14% % H1: 1, Δ % Δ % WACC: 9% 7.0% 7.2% Δ 62 (414) (352) 2001/02* 2002/03* 2003/04* 2004/ /06 incl. Elevator fine ( 480 m) 2006/07 * US GAAP

11 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Group Targets 2009/10 and 2011/12 EBT and sales million Sales: 50 bn 60 bn 65 bn Target 4,000* 4,500-5,000* 2,623 > 3,000*** ,477 1,677 H1: 1,634*** 01/02 */** 02/03 ** 03/04 ** 04/05 05/ /07 * excluding major nonrecurring items ** US GAAP *** including major nonrecurring items Mid-term 2009/10 Long-term 2011/12

12 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Accelerates Growth by Investment Program Steel Stainless Technologies Elevator Services Other Total Investments 2005/ / bn 2.0 bn 4.1 bn 1.2 bn 1.7 bn up to 2.1 bn bn Comments Greenfield NAFTA, Greenfield Brazil, capacity increase Duisburg, substance-preserving and value-based investments, acquisitions Greenfield NAFTA, substance-preserving and value-based investments Project-related investments, substance-preserving and value-based investments, acquisitions Projects for efficiency improvement in new installations and services as well as growth by acquisitions New service centers globally and in Eastern Europe, growth in raw materials, other investments and growth by acquisitions Other investments and growth by acquisitions bn, i.e. >75% growth capex, entirely based on value-driven criteria, 4 bn substance-preserving investments* * 45% of the average depreciation / amortization in the segments

13 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Steel: High Quality Requirements and Long-Term Relationships Sales by Industry Others Construction 10 Packaging 3 9 Mechanical Engineering 11 Trade in %, FY 2005/06 Automotive industry (incl. suppliers) Steel and steelrelated processing Key Drivers of Steel Customer relationship in focus: Long-term relationships foster sustainable value performance About 60% long-term contract exposure as an indicator of reliability and trustworthiness Sales by Maturity/Contracts Spot Quarterly 22 Multi-year in %, FY 2005/06 Short-term business is not an opportunity business Price premium over the cycle Half-year Annual

14 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Margin Leadership in Europe EBITDA Margin Europe* in % Margin Steel Margin range of peers** * margins adjusted for major nonrecurring items; margin 2006 of peers in part based on 9 months 2006 ** Arcelor Flat Carbon Steel, Arcelor Mittal, Corus (Carbon Steel w/o long products), Salzgitter division steel, voestalpine division steel

15 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Premium Flat Carbon Steel Market with Above-Average Growth Global market development: Market forecasts up to 2015 Global demand for premium products* million tons p.a. Premium Products Commodities % p.a % p.a. Asia*** 22% RoW** 8% 220 m t p.a. 20% NAFTA China 19% 4% 3% CIS 24% South America Europe Europe and NAFTA with almost 45% share in global demand for premium products * Flat steel products with above-average quality requirements and technological properties ** esp. India *** esp. Japan and South Korea Source(s): CRU MerchantSlabMarket 2006-Q4 absolute numbers, WSD Global Steel Product Matrix

16 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Investment Strategy Steel: The Transatlantic Concept Targeted major transatlantic production capacities Herkules Capacity in m metric tons p.a. Brazil NAFTA Europe ** Slabs 5-15 Greenfield Hot-rolled * 17.5 ~3 m t ~2 m t Cold-rolled TK CSA Coated Utilizing low-cost slabs from Brazil Build on and expand strong European market position Clear strategy to enter NAFTA market with focus on high value-added products * incl. 0.9 million t for Stainless ** slabs incl. share in HKM; hot-rolled incl. heavy plate and medium-wide strip; coated incl. EG, HDG and tinplate Significant dilution of cost base by highly competitive steel mill in Brazil De-bottlenecking and modernizationto process 2 m t of additional slabs from Brazil ( Herkules ) Transfer of proven business model into the modern industrial center of the U.S.

17 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Southern U.S. Exhibits Growing Demand and Local Supply Shortage Typical demand flat carbon steel vs. local capacity South Central U.S. in m t/p.a. Hot-rolled million t/p.a. Canada Outlook Greenfield TKS West North Central South Central East Typical Demand* Local Capacity Cold-rolled Outlook 2010 million t/p.a. + Greenfield TKS Mexico 7.4 Typical Demand* Coated products Local Capacity million t/p.a. Outlook Greenfield TKS Source(s): TKS analysis, Metal Strategies, status as of 2006 * incl. intermediate products 4.1 Typical Demand* Local Capacity 1.8

18 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Transatlantic Strategy Leads to Premium Prices and Lowest Costs USD/t Premium quality & technology leadership ØPrices Greenfield TK Steel Ø Prices NAFTA Margin leadership! Ø Production cost HRC p&o* NAFTA Cost competitiveness Target Greenfield TK Steel Source(s): WSD World Cost Curve 2005; BCG analysis; MEPS; own research TKS * pickled & oiled Existing Hot rolling capacities NAFTA

19 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Stainless: Demanding but Longer-Term Customers Sales by Industry in %, FY 2005/06 Key Drivers of Stainless Household Appliances Metal Processing Automotive Tubes White Goods Others Service Centers/ Trading Higher predictability of business through a comparatively higher exposure to longer-term contracts Strong focus on ferritic grades: 35% of s Stainless product portfolio Sales by Maturity/Contracts Multi-year Spot Annual Half-year Quarterly in %, FY 2005/06 Strong brand and additional globally established product brands benchmark for product quality Highly innovative products and services Powerful worldwide service center network

20 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Concentration on the High-Value Segment Instead of Commodities Systematic focus on value-added services within the production chain Using Advantages in Procurement Optimization of Raw Material Qualities Optimization of Raw Material Mix Product-Related Services Coating Shaping (Tubes) Higher Profit Margins Economies of Scale Performance Increase USP compared with Competition Cutting (SSC) Stamping e.g. Discs Surface Finishing Procurement Production to Coil Finishing Shop Raw Material Procurement Steel Melt Shop Hot Rolling Mill Cold Rolling Mill Expansion of Existing Business Utilization of all Growth Options Differentiation regarding Price and Performance

21 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Stainless Base Prices and EBT Development million EUR Base Price EUR/t * , , Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q May Source: TKL 1999/ / / / / / / * (Q1+Q2 2006/07) EBT / quarter Base Price Germany (Austenitic, 2mm sheet, Traders / SSC) EBT per year

22 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Stainless: Attractive Growth Prospects for Demand in NAFTA Region in 1,000 tons p.a. Market Development CR Flat USA 1,800 1,700 1,600 1, , % p.a Market Development CR Flat Canada 1, % p.a Market Development CR Flat Mexico Imports into the USA % p.a. 230 Mexico Europe Source: McKinsey 08/2006, Stainless Total increase NAFTA demand: ~530,000 t p.a. ( ) China Other Σ

23 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Stainless Greenfield Plant Drives Value for the Group Production costs for CR 304 2B* in NAFTA Value-driven forward strategy USD/ton (w/o Capital Cost) Capex Forward Strategy NAFTA 0.8 bn Return hurdle for growth investments IRR 15% Stainless Greenfield project Competitor 1 Competitor 2 TK Mexinox (incl. antidumping duties) Competitor ,000 1,500 2,000 2,500 Cum. capacity Mt thousand Reliable and significant profit contribution driving value for the Group! Source: McKinsey cost model * standard grade

24 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Investment Grade Rating with Every Rating Agency is Key The underlying principle for all our growth initiatives High degree of flexibility due to and Cash ( 2.6 bn as of Mar 31, 2007) Available credit lines ( 4.3 bn as of Sep 30, 2006) Treasury stock (25.7 m shares at market value* of 1,146 m) Authorized capital ( 500 m) Estimated OCF (approx. 18 bn from 2005/ /10) Continuous revision of current business portfolio remains top priority for management * as at June 22, 2007

25 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, billion of Capex Within 5 Years (2005/ /10) Development of Group Cash Flows 6.0 in bn 5.0 Free cash flow (1.2) Operating cash flow Divestments (0.7) (0.5) Capex for segments (value-based + substance-preserving) Capex for projects TK CSA (Brazil) Greenfield Steel Greenfield Stainless / / / /10

26 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Wrap-up: Continues the Delta EVA Story ROCE and TKVA (incl. major nonrecurring items) % / million ROCE TKVA Target 3,000 2,500 1, % 21.4% 22% WACC: 9% 7.0% (414) 7.2% (352) % % 01/02* 02/03* 03/04* 04/05 05/ % H1: 1,046 incl. Elevator fine ( 480 m) 2006/07 Mid-term 2009/10 Long-term 2011/12 * US GAAP

27 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Financial Calendar 2007 and 2008 July 24, 2007 Quiet Period to August 9, 2007 August 10, 2007 Interim Report 3rd quarter 2006/07 (Apr to Jun) Conference call with analysts and investors October 25, 2007 Quiet Period to December 3, 2007 December 4, 2007 Annual Press Conference, Essen/Germany Analysts and Investors Conference, Essen/Germany January 18, 2008 Annual General Meeting, Bochum/Germany February 13, 2008 Interim Report 1st quarter 2007/08 (Oct to Dec) Conference call with analysts and investors May 14, 2008 Interim Report 2nd quarter 2007/08 (Jan to Mar) May 15, 2008 Analysts and Investors Conference, London

28 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27,

29 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Appendix

30 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Group Overview (I) 2nd quarter 2005/2006 2nd quarter 2006/2007 Change Change in % Order intake m 12,776 13,962 1, Sales m 11,786 13,114 1, EBITDA m 1,278 1, EBIT m EBT m TK Value Added m ** ROCE % %-p. Net income m Earnings per share * * * * * * * * incl. Elevator fine ** based on H1

31 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Group Overview (II) 2nd quarter 2005/2006 2nd quarter 2006/2007 Change Change in % Capital expenditures* m Depreciation/amort. m Operating cash flow m Cash flow from divestments m Cash flow for investments m (455) (549) Free cash flow m Net financial liabilites m Employees (Mar 31) 187, , * incl. financial investments

32 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Roadmap for Investments Over the Next 5 Years

33 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, This page is left intentionally blank!

34 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Steel: Segment Overview Steel 2nd quarter 2005/ /07 Change Change % Order intake m 3,252 3, Sales m 3,062 3, EBITDA m EBIT m EBT m TK Value Added m ROCE * % %-p. OCF m CF from divestm. m n.a. (128) CF for investm. m (288) -288 n.a. FCF m Employees (Mar 31) 38,441 39, Crude steel output: 3.8 m t (+12% yoy, weak comparable quarter); shipments steady with production close to capacity Continuing strong demand from industrial and automotive clients Higher average revenues per ton reflected in top and bottom line numbers Transfer of Metal Forming/Umformtechnik (from Technologies/Automotive Solutions) to focus steel processing capabilities and meet customer demand for wider services More than 450 m capex spend so far for CSA (Brazil) * based on H1

35 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Steel: Output, Shipments and Revenues per Metric Ton Crude steel output 1,000 t/months Total shipments 1,000 t/months 1,152 1,153 1,130 1,176 1,184 1,246 1,076 1,161 1,156 1,166 1,146 1, / /06 Fiscal year H1 H2 2005/06 Q1 Q2 2006/ / /06 Fiscal year H1 H2 2005/06 Q1 Q2 2006/07 Shipments: Hot-rolled and cold-rolled products Cold-rolled Hot-rolled 1,000t/months Average revenues per ton Q1 2004/2005 = 100 Q1 Q2 Q3 Q / /06 Fiscal year H1 H2 2005/06 Q1 Q2 2006/ / / /07

36 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, High Value Added Products Strengthen Market Position Product Portfolio Steel FY 2005/06* in % 4% 3% 13% 13% 10% Tailored blanks Construction elements Steel service Tinplate Electrical steels Full product range in flat carbon steels Permanent development of new grades and products 26% Coated products Joint R&D with major customers * sales of flat products only 6% 7% 6% 6% 12% Cold strip Heavy plate Medium-wide strip Hot strip Excellent position in a premium market

37 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Premium Over the Cycle and Lower Volatility Index (Q = 100) Steel CRU Price index flat steel world (CRU) Price index carbon flat steel Steel AG All data incl. calendar Q Sources: CRU and own calculations based on CRU, TKS

38 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Stainless: Segment Overview Stainless 2nd quarter 2005/ /07 Change Change % Order intake m 2,096 2, Sales m 1,626 2, EBITDA m EBIT m EBT m TK Value Added m (5) ROCE * % OCF m 223 (107) CF from divestm. m CF for investm. m (44) (71) FCF m 181 (176) Employees (Mar 31) 12,143 12, Crude steel output: 699,000 t (+4% yoy); higher cold-rolled shipments on account of sale of hot-rolled coil Continuing strong end user demand; increased inventories at distributors/ service centers resulting in lower order volumes Price differential growing smaller but still attracting imports from Asia to Europe; base prices normalizing from extremely high levels Value of order and sales impacted by high alloy surcharge (esp. nickel) Working capital still at abnormal high level (shipments Nirosta-SKS-Nirosta due to fire damage in June 2006); normalization by end of fiscal year * based on H1

39 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Stainless: Output, Shipments and Revenues per Metric Ton Crude steel output* 1,000 t/months Total shipments* 1,000 t/months * including Carbon, Forging, Ni-Alloys * including Carbon, Forging, Ni-Alloys and consolidated / /06 Fiscal year H1 H2 2005/06 Q1 Q2 2006/ / /06 Fiscal year H1 H2 2005/06 Q1 Q2 2006/07 Shipments*: Hot-rolled and cold-rolled products 1,000t/months Average revenues per ton Q1 2004/2005 = 100 * not consolidated Hot-rolled, including Slabs Cold-rolled, including Precision strip Q1 Q2 Q3 Q / /06 Fiscal year H1 H2 2005/06 Q1 Q2 2006/ / / /07

40 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Technologies: Segment Overview Technologies 2nd quarter 2005/ /07 Change Change % Order intake m 2,838 3, Sales m 2,870 2, EBITDA m EBIT m EBT m TK Value Added m ROCE * % p. OCF m CF from divestm. m n.a. (116) CF for investm. m (124) -124 n.a. FCF m Employees (Mar 31) 55,550 53,274-2, Overall, global mechanical engineering industry profiting from continuing high investments Order book: 13.5 bn (Mar 31, 2007) Decline in sales mainly due to unfavorable US$/ exchange rates, disposals and some weaker automotive activities Disposal of PCB assemblies, car jacks and defense engineering business to further streamline the portfolio With TKVA > 160 m (accum.) and ROCE >20% confirming role as value driver Transfer of Metal Forming/Umformtechnik to Steel segment, effective Q1 * based on H1

41 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Technologies: Organizational Overview Plant Technology Sales: 2.3 bn Transrapid Olaf Berlien Technologies AG Sales old: 6.0 bn Sales new: ~ 11 bn Olaf Berlien, Chairman Marine Systems Sales: 1.9 bn H.-Chr. Atzpodien Mechanical Components Sales old: 1.8 bn Sales new: 4.1 bn Wolfram Mörsdorf Vice Chairman Automotive Solutions Sales old: -- Sales new: 3.0 bn Karsten Kroos Uhde Surface Vessels Polysius Submarine Fördertechnik Marine Services Business Unit Operating Group former TK Automotive Rothe Erde Berco Presta Camshafts TKMCL/Gerlach Präzisionsschmiede Waupaca Sales&Technical Center Assembly Plant (Krause) Presta Steering Bilstein Suspension Drauz Nothelfer Sales as at FY 2005/06

42 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Elevator: Segment Overview Elevator 2nd quarter 2005/ /07 Change Change % Order intake m 1,203 1, Sales m 1,054 1, EBITDA m 118 (367)* EBIT m 104 (382)* EBT m 94 (390)* TK Value Added m 63 (419)* ROCE ** % 21.0 (31.1)* OCF m CF from divestm. m CF for investm. m (31) (18) 13 + FCF m Employees (Mar 31) 35,109 37,758 2, EU fine of 480 m imposed (expense: Q2, cash out: Q3) Higher order intake and sales by expansion of new installations and maintenance services Regionally, strong demand in the US, China, France and UK Acquisition of small-sized companies mainly in Italy to further follow the growth approach New entities in Gulf States and Eastern Europe * incl. EU fine ** based on H1

43 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Services: Segment Overview Services 2nd quarter 2005/ /07 Change Change % Order intake m 3,752 4, Sales m 3,383 4, EBITDA m EBIT m EBT m TK Value Added m ROCE * % %-p. OCF m CF from divestm. m CF for investm. m (157) (65) 92 + FCF m (31) Employees (Mar 31) 39,016 43,411 4, Ongoing favorable situation on raw and industrial materials markets Record quarterly sales, mainly driven by Materials Services International (both volumes and prices) with strong demand in Europe (esp. Eastern Europe), South America and Asia Unfavorable US$/ exchange rate effect: otherwise orders +24%, sales +30% Further steps in implementing Asia strategy: joint venture in Vietnam established * based on H1

44 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Financial Calendar 2007 and 2008 July 24, 2007 Quiet Period to August 9, 2007 August 10, 2007 Interim Report 3rd quarter 2006/07 (Apr to Jun) Conference call with analysts and investors October 25, 2007 Quiet Period to December 3, 2007 December 4, 2007 Annual Press Conference, Essen/Germany Analysts and Investors Conference, Essen/Germany January 18, 2008 Annual General Meeting, Bochum/Germany February 13, 2008 Interim Report 1st quarter 2007/08 (Oct to Dec) Conference call with analysts and investors May 14, 2008 Interim Report 2nd quarter 2007/08 (Jan to Mar) May 15, 2008 Analysts and Investors Conference, London

45 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, How to Contact Investor Relations Institutional Investors and Analysts: Phone: Fax: To be added to the IR mailing list, send us a brief with your details! Internet:

46 Presentation, Investors and Analysts Conference of WestLB and Deutsche Börse Group, Zurich, June 27, Disclaimer In this presentation all figures are prepared in accordance with IFRS unless otherwise stated. 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 s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of government regulators. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. does not intend or assume any obligation to update any forward-looking statements to reflect events or circumstances after the date of these materials.