ThyssenKrupp stock

ThyssenKrupp's stock continued to gain until well into the second half of the reporting year and clearly outperformed the DAX. In May 2008 the share price reached an all-time high of €46.63. However, from August it could not escape the general downturn on the stock markets triggered by the international financial crisis and the general concerns surrounding the economy. At the end of September the share price was €21.03, corresponding to a market capitalization of around €11 billion. This section provides detailed information on ThyssenKrupp's stock and our investor relations activities.

Market sentiment overshadows fundamentals

In the 2007/2008 fiscal year ThyssenKrupp's stock initially profited from the company's continued very good performance and the very positive environment on the international markets for steel, materials and capital goods, and in May 2008 the share price reached an all-time high of €46.63. However, in the final quarter of the fiscal year the share price was severely impacted by the international financial market crisis, which began in the USA, and the associated economic downturn. The company's continued very pleasing performance, which led to an increase in the earnings forecast, largely ceased to be rewarded by the capital market. Instead, the share price performance was determined by the widespread assessment of ThyssenKrupp as an early cyclical and by the increasingly short-term behavior of market participants. The latter reacted to new economic figures in many cases with panic selling or to procure liquidity sold the shares which up to then had achieved the highest growth in value. On September 30, 2008, ThyssenKrupp's stock closed at €21.03, 52.9% down from a year earlier, while the DAX and DJ STOXX reference indices lost 25.8% and 30.1% respectively. Further details of the stock's performance are shown in the following charts.

Market capitalization reached a new record high of almost €24 billion in the course of the reporting year. At the end of the fiscal year on September 30, 2008 market capitalization amounted to around €11 billion.

Stock listed in Germany and the United Kingdom

ThyssenKrupp stock has been listed on the following stock exchanges since March 25, 1999:

Liquidity in our stock remained high in 2007/2008: The average daily volume was 4.3 million shares (previous year: 3.8 million shares/day). More than 1 billion shares were traded on the XETRA trading system and the German stock exchanges. Trading in ThyssenKrupp stock accounted for 2.2% of the total trading volume of the 30 DAX stocks.

The importance of ThyssenKrupp stock on the international capital markets is underlined not least by its inclusion in key indices. With listings in the DAX 30, the DJ STOXX, the DJ Germany Titans, the DJ Industrial Goods & Services Titans 30, the FT EuroTop 300 and various MSCI indices, our stock is included in major indices at national and international level. It is also included in the DivDAX, comprising the 15 DAX companies with the highest dividend yield.

Earnings per share €4.59

Earnings per share (EPS) is calculated by dividing the net income attributable to the stockholders of ThyssenKrupp AG by the weighted average of shares outstanding in the fiscal year. In the year under review, the number of shares outstanding averaged 477.8 million.

Dividend proposal of €1.30 per share

A proposal will be submitted to the Annual General Meeting on January 23, 2009 to pay a dividend of €1.30 per share for fiscal 2007/2008. Based on the stock price of €21.03 on September 30, 2008, the dividend yield is 6.2%. The payout ratio is 51.3% of the net income of ThyssenKrupp AG or 27.5% of the consolidated net income attributable to the stockholders of ThyssenKrupp AG.

Capital stock unchanged

The capital stock remains unchanged at €1,317,091,952.64 and comprises 514,489,044 no-par value bearer shares. The shares are evidenced in global certificates. The right of stockholders to certification of their shares is excluded under the Company's Articles of Association. Under Art. 19 of the Articles of Association of ThyssenKrupp AG, each share grants one vote.

Treasury shares now account for around 9.9% of capital stock

In 2007/2008 ThyssenKrupp AG increased the share of treasury shares in the capital stock to around 9.9% in two share buyback programs.

From February 01 to March 07, 2008, 14,791,100 shares or 2.9% of the capital stock were purchased at an average price of €35.34 and thus a total cost of around €522.7 million. In the period July 15 to August 13, 2008, 10,500,000 shares or 2% of the capital stock were purchased at an average price of €33.98. The total amount here was around €356.8 million.

Together with the shares purchased in summer 2006, ThyssenKrupp AG now holds 51,015,552 treasury shares or around 9.9% of the capital stock. The Company has no rights in respect of these shares. At the end of the fiscal year the number of outstanding shares was 463,473,492.

Stockholder base remains very stable despite difficult environment

Our latest analysis of the stockholder structure conducted at the end of September 2008 shows that our stockholder base remains stable even in a very turbulent market environment. This confirms that we are taking the right approach by expanding our dialogue in particular with institutional investors and intensifying our roadshow activities in Europe and the USA.

In fiscal 2007/2008 the proportion of stockholders based in the USA remained high at 11% of the capital stock, despite the financial crisis. The share of stockholders in Europe and the United Kingdom increased in each case to almost 8% of the capital stock. However, the share of institutional investors in Germany decreased slightly to around 10%. Apart from Germany and the United Kingdom, the European countries with the highest percentage of shares are Switzerland, France, the Netherlands and Norway.

The largest stockholder is the Alfried Krupp von Bohlen und Halbach Foundation, Essen. The Foundation notified ThyssenKrupp AG that it held 25.14% of the voting rights of ThyssenKrupp AG at September 30, 2008.

Taking into account the share held by the Foundation and the treasury shares, the free float, which is generally taken into account in the weighting of ThyssenKrupp's stock in stock indices, is 64.95% of the capital stock.

Excellent investor relations

ThyssenKrupp's investor relations activities were again well received by analysts and investors. The business magazine "Capital" and the German Society of Investment Professionals (DVFA) conduct an annual review of the investor relations work of major German and European companies. This year our Investor Relations team won third prize in the DAX segment. One of the key criteria for the judges was the quality of the information. In concrete terms they assessed how the company responds to the information requirements of its target groups on the capital market and whether it gives a transparent, concise and understandable presentation of its key figures and business models. For capital market participants, the linking of strategic targets with concrete medium- and long-term income forecasts is an important measure for creating trust.

Our Investor Relations team sees the award as an acknowledgement but also an incentive to further improve the high standard achieved. This is the third time the Capital Investor Relations Prize has been awarded to ThyssenKrupp.

We further optimized our investor relations program again in the reporting year. Biannual analysts' and investors' conferences and conference calls on the interim reports are now fixed events. The field day, too, is firmly established on the capital market. Our Investor Relations team intensified its roadshow activities and attendance at international investor conferences. New activities include regular investor dinners held in Frankfurt and London to keep investors informed of the Group's performance and provide a deeper insight into the business models of the individual segments. In particular the intensified dialogue with the segment executive boards has been welcomed by the capital market.

Our investor relations activities are based on a shareholder targeting model developed inhouse with which we continuously analyze the main financial markets to identify relevant investors. Our aim is to enhance the efficiency of our dialogue with professional investors.

We also focus on intensifying personal contacts with private investors. A number of events were held in the reporting year to present the Group and the stock's potential to a large number of private investors. In this we work together with stockholder associations as well as major public investment companies such as Cominvest.

Anyone interested can subscribe to our quarterly stockholders' letter "#750.000 compact". Distributed by e-mail, it contains information on all relevant developments and events in connection with the Group and our stock. The stockholders' letter is also available on the Investor Relations website. In addition, our website provides a wide range of information concerning our stock. Here, too, we are constantly setting new standards and have already received a number of awards.

If you would like to contact the ThyssenKrupp Investor Relations team or find out about dates in the 2008/2009 financial calendar, turn to the last page of this Annual Report or visit our website at www.thyssenkrupp.com.