Credit Suisse 2008 Global Steel and Mining Conference, London, September 24, ThyssenKrupp

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2 Cornerstones of the Group s Strategy 1 Increasing earnings Active portfolio management Growth in core businesses Group initiatives/measures Divestments Capex (billion ) TKS TKL Steel Focus on America Europe TK best Management Development/Academy Acquisitions TKT TKE TKX Capital Goods Services BRIC Middle East Eastern Europe North America Middle East Asia Training/HR Knowledge management Innovation/R&D Clear and standardized orientation to indicators/metrics Value management Target setting and control Resource allocation

3 Delivering Growth in a Supply Constrained World 2 Increasing earnings Active portfolio management Growth in core businesses Group initiatives/measures Reinforce focus of management capacities and investment funds Transatlantic forward strategy Leverage exposure to megatrends Raw materials and industrial materials services Efficiency improvement culture Retention, acquisition and development of skilled workforce / engineers management talent Technology leadership Acceleration of growth in core business Focused growth in bottleneck industries and complementary services Continuous enhancement of core competencies Value management: Maximization and realization of structural value potentials

4 Group Targets 2009/10 and 2011/12 3 Sales, EBT and EPS billion / million / Sales Target 4,000* 4,500-5,000* 800 1,477 1,677 2,623 3,330 EPS 4.30 > 3,200* EPS 5.30 Tax rate 33% EPS / / / / / /08E 2009/10E 2011/12E * excl. major nonrecurring items

5 Steel: Value Drivers 4 EBT / ROCE track record million / % CAGR: 62% p.a. 1,406 1,662 9M: 1,415* 1,900* 1, EBT ROCE / / / / / / /12E 2002/ /05 in the Group structure valid at that time Steel plant in Brazil goes on stream at the end of 2009: 5 m tons of low-cost highquality slabs for NAFTA and European markets Ramping up of processing capacities in Alabama starting in 2010 * excl. major nonrecurring items

6 Steel: Market Outlook 5 Global demand for flat carbon steel million tons Global crude steel capacity utilization rates million tons % p.a % p.a Utilization (rhs) 100% 95% 90% 85% % % % 600 Effective Capacity (lhs) 65% E 2015E Production (lhs) 60% 55% Premium products Commodities e 09e 50% Source(s): CRU MerchantSlabMarket 2006-Q4, WSD Global Steel Product Matrix Source(s): German Steel Federation, own estimates

7 Steel: Strategic Concept 6 Transatlantic forward strategy Steel shipments million tons ~20 ~17.5 TK Steel USA TK Steel Europe % p.a. ~3 m t ~2 m t TK CSA ~5 m t 05/06 06/07 09/10E 11/12E Low-cost and high-quality slabs as ideal basis for further processing in Europe and North America Production of first slab at the end of 2009 Strong organic growth based on proven business model Shipments to increase by more than 40% by 2011/12 Excellently positioned to meet increasing demand for premium products

8 Stainless: Value Drivers 7 EBT / ROCE track record million / % 1,000* CAGR: 42% p.a. 777 EBT ROCE M: 96* / / / / / / /12E World Class Terni project strengthens European position Stainless Alabama going on stream in 2010 Further penetration of NAFTA market 2002/ /05 in the Group structure valid at that time * excl. major nonrecurring items

9 Technologies: Value Drivers 8 EBT / ROCE track record million / % 1,000* CAGR: 90% p.a M: 531* 800* EBT ROCE /03* 2003/ / / / / /12E Long-term * excl. Automotive 2002/ /05 in the Group structure valid at that time Global secular growth trends will continue to drive profitable business: raw materials (mining and processing), food (fertilizers), energy (renewable and fossil), security (surface vessel and submarine) Development of additional business potential, e.g. in Middle East * excl. major nonrecurring items

10 Technologies: Global Engineering Network Geared to Secular Growth; The Only Limit to Growth: Shortage of Highly Skilled Engineers Megatrends Raw materials Oilsand Iron ore Coal R&D Basic engineering Detail engineering 9 Project management About 30 % of the world s raw materials are mined, processed and handled with systems by Food Energy & Env t Global leader in fertilizer plants EnviNOx Saving potential of 120 m t CO 2 e/yr Polysius Refit Package for cement industry Canada (60) USA (260) Mexico (380) Peru Argentina Europe (4,440) Egypt (90) Brazil (130) South Africa (270) Russia (425) China (70) UAE India (2,500) Thailand (350) Singapore Australia (580) Figures in brackets = no. of employees at Sep. 30, 2008 Forecast, rounded; Other R&D centers <50 employees

11 Components Are Essential for Wind Turbines 10 New installed capacity for wind energy GW/yr Bearings in wind energy plants BTM Study 2008: % BTM Study 2007: % 18,8 45,7 61, Actual BTM Study 2006 BTM Study 2007 BTM Study 2008 CAGR ( ) BTM2008 = ~18% the worldwide leading manufacturer of slewing bearings 5 bearings are needed for every wind turbine BTM = Birger T. Madsen, Consult Danish Energy Agency

12 Technologies: Growth in a Supply Constrained World 11 Visibility High visibility and planning security order backlog 15.7 bn * sales coverage 99% FY 2007/08 * almost 50% in FY 2008/09 * *as of June 30, 2008 major order for fertiliser complex in Algeria booked in Q4 Order intake, sales billion / % Order intake Sales cover from orders in hand (June 30, 2008) Sales realized to June 2008 >12 1% 24% Earnings quality Continuous improvement of earnings and margin quality selective order intake Sales coverage = 99% 75% attractive project pipeline open book principle 43% 21% 8% 6% 07/08E 08/09E 09/10E 10/11E 11/12E

13 Elevator: Value Drivers 12 EBT / ROCE track record million / % 1,000* CAGR: 1% p.a. 800* EBT ** 9M: 321* ROCE * / / / / / / /12E Long-term ** excl. EU fine 480 m 2002/ /05 in the Group structure valid at that time Investment roadmap with focus on service business EX East project to develop additional business potential in Asia Performance Program 300 * excl. major nonrecurring items

14 Services: Value Drivers 13 EBT / ROCE track record million / % 1,000* CAGR: >100% p.a * 482 9M: 515* ROCE EBT / / / / / / /12E Long-term 2002/ /05 in the Group structure valid at that time Focused expansion strategy Accelerated growth of raw and industrial material business across attractive regions (e.g. Asia, Eastern Europe) and sectors (e.g. aerospace industry) Planned disposal of Industrial Services * excl. major nonrecurring items

15 Services: Focus on Industrial Materials and Raw Materials 14 Services Sales: 16.7 bn EBT: ~ 700 m Reinforce focus Services Sales target: > 20 bn EBT target: 1 bn Materials Services warehousing logistics processing SCM Industrial Services maintenance, production support services, outsourcing steel mill services Special Products trading (steel, tubes, raw materials, minerals, coke) system solutions (railways, harbor construction, flood protection) Sales: 10.2 bn rolled steel, stainless, tubes, NF metals, plastics Sales: 2.0 bn Sales: 4.6 bn Acceleration of growth across attractive regions and sectors: North America, Eastern Europe, Asia, aerospace Disposal / Best owner (Sales: ~ 1.7 bn) Integration Acceleration of growth sale of minority interest to strategic investor Materials Services Special Products Global market leadership Leading international positions

16 is a Long-term Delta EVA Story 15 ROCE and TKVA % / million ROCE TKVA Target 3,000 2,500 2,108 WACC: 9% 7.2% (352) % % 1, % 20.7% WACC: 8.5% from 2007/ % 22.0% 2002/ / / / / /10E 2011/12E

17 Disclaimer 16 The information set forth and included in this presentation is not provided in connection with an offer or solicitation for the purchase or sale of a security and is intended for informational purposes only. This presentation contains forward-looking statements that are subject to risks and uncertainties. Statements contained herein that are not statements of historical fact may be deemed to be forward-looking information. When we use words such as plan, believe, expect, anticipate, intend, estimate, may or similar expressions, we are making forward-looking statements. You should not rely on forward-looking statements because they are subject to a number of assumptions concerning future events, and are subject to a number of uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from those indicated. These factors include, but are not limited to, the following: (i) market risks: principally economic price and volume developments, (ii) dependence on performance of major customers and industries, (iii) our level of debt, management of interest rate risk and hedging against commodity price risks; (iv) costs associated with, and regulation relating to, our pension liabilities and healthcare measures, (v) environmental protection and remediation of real estate and associated with rising standards for real estate environmental protection, (vi) volatility of steel prices and dependence on the automotive industry, (vii) availability of raw materials; (viii) inflation, interest rate levels and fluctuations in exchange rates; (ix) general economic, political and business conditions and existing and future governmental regulation; and (x) the effects of competition. Please note that we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.