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Interim management report

Employees

On December 31, 2007, ThyssenKrupp had 193,137 employees worldwide, a rise of 1,787 or 0.9% compared with the end of the previous fiscal year. In particular the Technologies and Elevator segments reported higher employee numbers due to the expansion of their activities.

In Germany the headcount increased by 0.3% to 85,230. This means that 44% of employees were based in Germany. The number of employees outside Germany rose by 1.5% to 107,907. At the end of December 2007, 23% of employees were based in European countries outside Germany and 15% in the NAFTA region. 7% of our employees were in South America and Asia, primarily in China and India, and 11% in other regions.

Health and safety is a key corporate objective in all ThyssenKrupp plants. For this reason we have launched the Group-wide "Zero Accidents" initiative to strengthen the health and safety organization at our operations and to further enhance the corresponding management systems. We are also training our executives so that they can set an effective example in matters of health and safety. In Germany alone, 2,400 executives have already taken part in the multi-day training course; a further 1,500 executives will follow. These activities are being organized in close cooperation with the employers' accident insurance associations. Altogether over 10,000 executives worldwide will undergo training.

All these activities are based on the Group policies on health and safety which clearly state that health and safety rank equally alongside product quality and business success as a corporate goal and represent a central management duty at all levels of the Group. Our policies and safety standards apply at all ThyssenKrupp plants throughout the world. Executives, safety experts and safety officers are constantly working to improve technical safety standards, safety-relevant processes and the safety awareness of all employees. Our specialists provide advice on the reorganization of production plants and processes. At the same time they conduct regular analyses and assessments of existing workplaces, document any need for action and arrange improvements. The health and safety measures are on a broad platform, with the employees being involved in both their organization and ongoing optimization.

The success of the various steps being taken to improve health and safety in our operations is reflected in the fall in the accident ratios. Since the merger of Thyssen and Krupp, accident frequency worldwide has been more than halved and it decreased even further in the 1st quarter of the current fiscal year. We believe that the systematic implementation of our intensified health and safety measures will help prevent many accidents in the future.

Despite all efforts, however, serious and fatal accidents still occur in isolated cases. On November 26, 2007 a service technician in Dresden lost his life while working on an elevator. On December 6, 2007 a tragic accident occurred in the ThyssenKrupp Acciai Speciali Terni cold-rolling plant in Turin; claiming the lives of seven of our employees, this was the most serious accident in the recent history of the company. We regret these accidents and mourn with the victims' families. We extend our deepest sympathies to the bereaved.

We cannot undo the accident in the Turin cold-rolling mill, but we are trying to alleviate the consequences for the families and in particular the children. The families concerned have received initial financial support from us. In addition, an education fund is being set up for the children of the victims. Donation accounts have been set up within the Stainless segment.

We will do everything we can to clarify the cause of the accident quickly and fully so that tragedies like this can be prevented in the future. Not only do we owe this to those who have died, we also have a responsibility for the future. The tragic accidents show that we must not relax our efforts.

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