Risk report

Thanks to our systematic and efficient risk management system, our risks are contained and manageable. There are no risks threatening the existence of the Company. Business risks and risks from major projects are well controlled by intensive project controls. We counter price risks for the procurement of raw materials, in particular ore and coal, by passing on the costs in our product prices where possible and making increased use of alternative procurement sources. The global presence of the Group limits market and cyclical risks from regional price and volume developments. Sales risks are also reduced by our strongly diversified product and customer structure; we monitor the sales weaknesses in the US auto industry very closely. To date, the global financial crisis has had little effect on the financing arrangements of ThyssenKrupp; the financing of our investment program stands on a secure foundation. In addition, our financial risks are reduced by the use of derivative financial instruments. The information contained in the risk report in the 2006/2007 Annual Report is still valid.

We report on pending lawsuits, claims for damages and other risks in Note 6.