Presentation ThyssenKrupp, Exane BNP Paribas, Basic Materials Seminar, London, March 28, ThyssenKrupp

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1 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28,

2 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Agenda Karl-Ulrich Köhler CEO Steel AG and Executive Board Member of AG Overview Group Overview and Track Record Steel Strategic Positioning Steel Transatlantic Roll-out and Forward Strategy Investment Conclusion Appendix

3 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group Overview AG Group sales 47.1 billion EBT 2,623 million TKVA 1,510 million Free cash flow 1,771 million Steel Stainless Technologies Elevator Services Sales EBT TKVA FCF 10.7 bn 1,417 m 913 m 1,185 m Sales EBT TKVA FCF 6.4 bn 423 m 199 m 243 m Sales EBT TKVA FCF 12.7 bn 399 m 178 m 378 m Sales EBT TKVA FCF 4.3 bn 391 m 264 m 87 m Sales EBT TKVA FCF 14.2 bn 482 m 294 m 147 m 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 as of FY 2005/06

4 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group Overview continues the Delta EVA Story ROCE and Value Added (TKVA, incl. discontinued operations) % / million ROCE TKVA Δ TKVA 997 Δ14% 513 1,510 1,300 Target ROCE: 12% Δ 924 Δ % 14% 12.0% 17.9% 16% WACC: 9% 7.0% 7.2% Δ 62 * US GAAP (414) (352) 2001/02* 2002/03* 2003/04* 2004/ /06 Q1 2006/07 Mid-cycle target

5 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group Overview EBT Track Record EBT million CAGR: 58.0% p.a. 2.0 bn 2, bn EBT target range: 1.5 bn 1,477 1, Q , /02 */** 2002/03 ** 2003/04 ** 2004/ / /07 * excluding major non-recurring items ** US GAAP

6 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, 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 ( 3.3 billion as of Dec 31, 2006) Available credit lines ( 4.3 billion as of Sept 30, 2006) Treasury stock (25.7 million shares at cost of 697 million) Authorized capital ( 500 million) Estimated OCF (approx. 19 billion from 2005/ /10) Continuous revision of current business portfolio remains top priority for management

7 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Overview Steel Steel AG Group sales 10.7 bn EBT 1,417 m TKVA 913 m Free cash flow 1,185 m Employees 31,634 Steelmaking Industry Auto Processing Sales 1.0 bn Employees 11,954 Sales 5.8 bn Employees 9,148 Sales 2.9 bn Employees 4,464 Sales 2.4 bn Employees 5,081 Metallurgy division Industry division Auto division Tinplate CSA Brazil Steel service Europe Tailored blanks Medium-wide strip Logistics Construction elements Steel Service North America Electrical steel Sales not consolidated; figures as of FY 2005/06

8 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Our Current Focus of Business is Europe Europe Germany Sweden Poland North-East Asia Changchun USA France Spain Italy Wuhan Dalian Mexico Brazil Steel mill Coating Tailored blank production Rolling facilities incl. coating Steel service center Strategic Alliance Projects/under construction

9 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Based on a Unique Plant Concept: 17 m t Capacity in one City Steel Site Configuration Secure Basis for Long Term Profitability Sustainable economies of scale in iron and steel making Excellent plant configuration with highest technology standards Optimum division of labor and logistics at the downstream activities Short distances to key customers Integrated steel mill Downstream rolling and coating Steel service center Tailored blanks Auto producers (OEM) 100 km radius from Duisburg 250 km radius from Rhine-Ruhr region Iron ore and coal imports Steel exports Ford Antwerp GM Ford Ford North Sea Rotterdam GM VW Ford GM DC, Porsche DC VW Audi Audi VW GM (BMW) BMW BMW BMW

10 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, with Almost 90% of Sales Generated in Our European Market Sales by Region FY 2005/06 in % Germany Other Europe w/o Germany 87% of Sales bn 54 NAFTA Asia Europe Other Germany Sweden Poland North-East Asia Changchun USA France Spain Italy Wuhan Dalian Mexico Brazil

11 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, and Strong Market Positions Market Positions by production 2005 Total Flat Carbon Steel # 2 Europe Tinplate # 3 Europe Electrical Steel (GO / NO) # 2 World / # 1 Europe Coated Products # 2 Europe Europe Tailored Blanks # 1 World Germany Sweden Poland North-East Asia Changchun USA France Spain Italy Wuhan Dalian Mexico Brazil Source(s): TKS, TKS-RA, TKS-ES

12 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, and a Track Record of Continuously Improved Performance 2001/2002 1) 2002/2003 1) 2003/2004 1) 2004/2005 2) 2005/2006 2) Sales m 6,861 7,448 8,387 9,568 10,747 Crude steel production 1,000 t 13,145 13,557 13,978 13,826 13,837 EBT m ,094 1,417 ROCE % TKVA m (417) (162) Employees (Sept. 30) # 29,222 29,249 30,618 31,634 30,647 1) Business Unit Carbon Steel, continuing operations US GAAP 2) Steel (new) IFRS

13 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Strategic Guidelines Steel Sustainable value growth Efficiency improvement Technology leadership Profitable growth Focus on attractive markets for premium flat steel products

14 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Further Significant Cost Savings Expected from Well Established Efficieny Enhancement Program TK best Project landscape over time number of projects Highlights Mrz.-04 Completed In process Sept Sept Jan März Aug Febr.-07 Project landscape by initiatives (Top 5) % Since start of best in fall projects have been launched in the Steel segment Continuous efficiency enhancement programs under best are continued with great intensity across all Business Units Source(s): best plaza Operating efficiency Quality enhancements Sales initiative Purchasing initiative Organization Other initiatives Additional earnings improvements of +Δ million per year!

15 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, NewSteelBody NSB from Steel Technology and Innovation Leadership Cost-effective weight-optimized lightweighting concept NSB compact van Mature solutions for key technologies Synthesis of conventional stampings and innovative tubular parts Approx. 24% weight reduction in body-in-white Virtually cost-neutral production Can be transferred directly to current production vehicles Tailored concept for steels from Stahl NSB body-in-white Reliable production technologies Node joints suitable for volume production Hydroformed tubes Hydroformed sheets DAVEX profiles Rollformed profiles Components tested for feasibility under automotive production conditions BIW concept validated

16 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, 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 Secures dealing in a premium market

17 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Strong Differentiation at Customers with Highest Quality Requirements Sales by Industry FY 2005/06 in % Automotive industry (incl. suppliers) Steel and steel-related processing Trade 11 Mechanical engineering Packaging Construction Other

18 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Long Term Relationships Foster Sustainable Value Performance Sales by Maturity FY 2005/06 in % Multi-year contracts Annual contracts Half-year contracts Quarterly contracts Customer relationship in focus 57% long-term contract exposure as an indicator of reliability and trustworthiness Short-term business not an opportunity business Spot Price premium over the cycle

19 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Lower Volatility in Earnings and a Premium over the Cycle Index (Q = 100) CRU Steel Q Q Price index flat steel world (CRU) Price index carbon flat steel Steel AG All date incl. Q Sources: CRU and own calculations based on CRU, TKS

20 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Margin Leadership in Europe EBITDA Margin Europe* in % Margin Steel Margin range of peers** * margins adjusted for major non-recurring 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

21 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Continuous Improvement of Position as Value Driver and Cash Provider Free Cash Flow and Value Added Segment Steel in m 1,200 1, TKVA Ø 210 m accum. 1,051 m TKVA / / ,000 1, /02 1) 2002/03 1) 2003/04 1) Free Cash Flow Free Cash Flow Ø 556 m accum. 2,779 m ) Business Unit Carbon Steel; size of disks proportional to sales

22 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Premium Flat Carbon Steel Market With Above-Average Growth Demand Flat Carbon Steel by Regions in million t NAFTA % 49% 50% Europe % 49% 50% 22 24% 2005 CIS 29 31% % % China % % World % (CAGR) +2.4% (CAGR) South America 17 32% 21 37% 26 41% Rest of World 71 15% % % 2015 Asia 1) (w/o China) 94 39% % % ) esp. Japan and South Korea Source(s): CRU MerchantSlabMarket 2006-Q4 absolute numbers, WSD Global Steel Product Matrix Premium Products Commodities

23 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Europe and NAFTA with High Relative and Absolute Shares in Premium Flat Carbon Steel Markets Demand Flat Carbon Steel by Regions in million t 83 44% NAFTA 91 49% 97 50% 105 Europe % 49% 50% 22 24% 2005 CIS 29 31% % % China % % World Market Premium Products 2010 RoW NAFTA 8% 20% Asia 22% 220 m t/yr 24% 19% 4% 3% Europe China South CIS America South America 17 32% % % 2015 Source(s): CRU MerchantSlabMarket 2006-Q4 absolute numbers, WSD Global Steel Product Matrix Rest of World 71 15% % % ) esp. Japan and South Korea Asia 1) (w/o China) 94 39% % % 2015 Premium Products Commodities

24 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Automotive Industry as a Key Driver for Demand in Premium Products Light-Vehicle Production/Assemblies 2010 Forecast NAFTA in m Units West 0.4 m North Central 7.6 m 24% 2% Canada 2.7 m 2% 31% 67% NAFTA will remain a key market for the automotive industry with a projected production of 17 million light-vehicles in % 74% South Central 3.1 m 56% 0% 44% East 1.5 m 15% 85% North Central U.S. remains a traditional production center dominated by the Big Three NAFTA total: 17 m (2010f) Mexico 1.7 m 19% 25% 56% Strong position of growing Asian and European transplants in South Central U.S. and Mexico 30% 4% 65% Big three Asian transplants European transplants, others Source(s): Polk Marketing Systems, TKS analysis, status as of 2006 Southern U.S. and Mexico exhibit strong demand for premium steels from New Domestics

25 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, 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/yr Hot Rolled million t/yr Canada Outlook Greenfield TKS North Central West East Typical Demand 1) Cold Rolled Local Capacity million t/yr South Central Outlook Greenfield TKS Mexico 7.4 Typical Demand 1) Local Capacity 2.5 Coated Products million t/yr Outlook Greenfield TKS Source(s): TKS analysis, Metal Strategies, status as of ) incl. intermediate products 4.1 Typical Demand 1) Local Capacity 1.8

26 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, 2007 Customer- and Profit-Driven Forward Strategy Based on Successful Business Model Strong Growth Perspective 25 Build on and expand strong European market position Clear strategy to enter NAFTA market with focus on high value-added products Secure growth opportunities by utilizing low-cost slabs from Brazil Global strengthening of presence in attractive markets for premium flat carbon steel

27 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, 2007 Greenfield Project Enables Combination of Cost and Technology Leadership Site Selection Well Advanced Cost Advantages 26 Low-cost slabs ex Brazil State-of-the-art production facilities with low operating costs (energy, personnel, ) Optimum logistics No legacy costs 1 2 Market Expertise Well-known target customers with demanding applications 1 2 Louisiana Alabama Technological expertise Steel Reputation and brand High-quality slabs from own production in Brazil

28 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, 2007 Transatlantic Strategy Leads to Unique Positioning 27 Price and Production cost HRC p&o NAFTA Premium quality & technology leadership Margin leadership! Ø Price HRC p&o NAFTA Ø Production cost HRC p&o NAFTA Cost competitiveness Source(s): WSD World Cost Curve 2005; BCG Analyse; MEPS; own research TKS Existing Hot rolling capacities NAFTA

29 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, 2007 Forward Strategy Creates Potential For Significant Value Growth 28 Strong Organic Growth Based on Proven Business Model Sustainable value growth Capex Forward Strategy Europe Forward Strategy NAFTA Forward Strategy Brazil 5.2 bn Efficiency improvement Technology leadership Profitable growth Return hurdle for growth investments 15 % Focus on attractive markets for premium flat steel products Committed to Reliable and significant profit contribution Drive value for the Group! The best is yet to come!

30 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Investment Conclusion Strong commitment to sustainable profit and cash generation as well as value enhancement across business cycles Value creation for shareholders not only by profitable growth initiatives, but also by stable and sustainable dividend payment Continuation of systematic value management by concentrating only on high-performance business areas and active portfolio management Further expansion of service orientation as well as fostering technological and innovative capabilities

31 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Financial Calendar 2007 / 2008 April 24, 2007 Quiet Period to May 10, 2007 May 11, 2007 Interim Report 2nd quarter 2006/2007 (Jan to Mar) May 15, 2007 Analysts and Investors Conference (London, UK) July 24, 2007 Quiet Period to August 9, 2007 August 10, 2007 Interim Report 3rd quarter 2006/2007 (Apr to Jun) Conference call with analysts and investors October 25, 2007 Quiet Period to December 3, 2007 December 4, 2007 Annual Press Conference Analysts and Investors Conference January 18, 2008 Annual General Meeting

32 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, 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:

33 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28,

34 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Appendix

35 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group in Figures (I) Order intake million Sales million 50,782 47,125 Q4 14,012 Q4 12,259 Q3 12,439 Q3 12,138 Q2 12,776 Q2 11,786 Q1 11,555 15% 13,301 Q1 10,942 13% 12, / / / /07

36 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group in Figures (II) EBITDA million EBIT million 4,700 3,044 Q4 1,234 Q4 700 Q3 1,290 Q3 911 Q2 Q1 1,278 Q % 1,507 Q1 551 >100% 1, / / / /07 Operating cash flow million Capital expenditures million Q4 Q3 Q2 Q1 3,467 2,351 1,521 1, (568) 2005/ / / /07 2,077 Q4 Q Q2 492 Q % / /07 * incl. financial investments

37 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group in Figures (III) Net income million Earnings per share 1, Q4 540 Q Q3 468 Q Q2 441 Q Q >100% >100% Q / / / /07

38 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group Overview Operating Cash Flow Development of operating cash flow in Q1 2006/2007 million 661 Net income D/A 346 (195) Change in accrued pensions Others 23 (306) Change in net working capital Steel (654) Change in net working capital Stainless Change in net working capital Technologies (187) (98) Change in net working capital Elevator Change in Change in net working net working capital capital Corporate/ Services cons. (478) 320 (568) Operating cash flow

39 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group Overview Net Financial Liabilities Development of net financial position million (832) Gearing (8.4%) (568) (18) Net financial receivables (net cash) Sep 2006 Operating cash flow Divestments Cash acquired/ divested Free Cash Flow: (1,146) Capex 8 Others Gearing 4.1% 391 Net financial liabilities Dec 2006

40 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group Overview Gearing Ratio of net financial liabilities to equity (gearing) million 8,287 7,671 8,327 7,944 8,927 9,426 Equity 4,742 4,235 Net financial liabilities 2,833 Gearing 57.2% 55.2% 34.0% 2.2% (8.4%) 4,1% /02* 2002/03* 2003/04* 2004/05 (747) 2005/06 Q1 2006/07 * US GAAP

41 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Segment Overview Quarterly EBT for 2005/06 and 2006/ / /2007 million Q1 Q2 Q3 Q4 FY Q1 Steel , Stainless Technologies (15) Elevator Services Corporate (137) (17) (119) (173) (446) (93) Consolidation (5) (4) (4) (30) (43) (6) Group ,623 1,062

42 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group Growth Strategy billion of Capex within 5 Years Capex per segment (in %) Capex per region (in %) 9 Stainless Technologies Germany Europe (excl. Germany) Steel Elevator 9 1 Services Corporate 34 North America 9 18 Asia South America

43 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Group Growth Strategy Investment Overview Investment plan (2005/ /10) Breakdown of investments (2005/ /10) Long-term assets Growth (incl. TKCS) Maintenance Total investments Financial investments Long-term assets Long-term assets Focus on organic growth in billion Growth TKCS (Brazil) 3.0 Greenfields TKS (1.8) / TKL (0.5) 2.3 Capacity increase Duisburg 0.4 TK Services 0.4 Expansion/Modernization Subtotal Maintenance (esp. Steel) 4.0 Total Financial investments TK Technologies >0.5 TK Elevator >0.4 TK Services 0.5 Other Total Total investments

44 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Organizational Overview Technologies as of Oct 1, 2006 Plant Technology Sales: 2.3 bn Transrapid H.-Chr. Atzpodien Technologies AG Sales old: 6.0 bn Sales new: ~ 12 bn* Olaf Berlien, Chairman Marine Systems Sales: 1.9 bn Klaus Borgschulte Mechanical Components Sales old: 1.8 bn Sales new: 4.1 bn* Wolfram Mörsdorf Vice Chairman Automotive Solutions Sales old: -- Sales new: 4.4 bn* Karsten Kroos Uhde Surface Vessels Polysius Submarine Fördertechnik Marine Services Business Unit Operating Group former TK Automotive * pro forma combined figures, not consolidated, unaudited Rothe Erde Berco Presta Camshafts TKMCL/Gerlach Präzisionsschmiede Waupaca Sales & Technical Center Assembly Plant (Krause) Presta Steering Umformtechnik Automotive Systems Bilstein Federn Drauz Nothelfer

45 Presentation, Exane BNP Paribas, Basic Materials Seminar, London, March 28, Update on Automotive Restructuring Status Quo EBT million Restructuring (174) FY 2005/06 18 Q1 2006/07 Divestment of Body & Chassis NA plus minor activities in the US completed ( 1.5 bn sales) Related restructuring charges with no further impact on remaining Automotive activities in the current fiscal year Sale of TK Fundicoes (foundry, Brazil) Due to weak performance of remaining activities (e.g. Drauz Nothelfer) further restructuring efforts needed; expected charges 50 m to 100 m in 2006/07 New management started the process of systematic revision of all underperforming Automotive activities