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Capital market-relevant press releases, 2005-12-01, 07:30 AM

ThyssenKrupp in fiscal year 2004/2005


In fiscal year 2004/2005, ThyssenKrupp achieved the highest earnings in its history:
・ Earnings from continuing operations before taxes and nonrecurring items reached EUR 1,836 million (fiscal year 2003/2004: EUR 1,477 million). This earnings level reflects the operating strength of the Group.

・ The net financial payables of EUR 2.8 billion at September 30, 2004 were completely eliminated. This gives ThyssenKrupp the opportunity to expand its core businesses with major acquisitions and to achieve its medium-term sales target of EUR 50 billion.

・ In response to the very good earnings, in its meeting on November 30, 2005 the Supervisory Board endorsed the proposal of the Executive Board to recommend to the Annual General Meeting an increase in the dividend from EUR 0.60 per share to EUR 0.70 per share. On top of this there will be a special dividend of EUR 0.10 per share as a result of the virtually completed divestment program. The dividend to be proposed to the Annual General Meeting therefore totals EUR 0.80 per share. With a dividend yield of 4.6%, the ThyssenKrupp share is among the highest-yielding stocks in Germany.
Other key financials in fiscal year 2004/2005:
・ Demand for the Group's products and services increased strongly. Order intake from continuing operations reached EUR 42.5 billion (previous year: EUR 38.8 billion), 9% more than a year earlier.

・ The Group achieved sales of EUR 42.1 billion, 13% higher than the year before (EUR 37.3 billion). All segments contributed to the growth in sales.

・ Earnings per share including discontinued operations increased from EUR 1.81 to EUR 2.05.

・ ROCE climbed from 12% to 15%.

・ EVA improved from EUR 572 million to EUR 1,087 million.

・ The number of employees increased to 183,729 (September 30, 2004: 174,056).
ThyssenKrupp started the new fiscal year in a more difficult environment. Although the overall economic forecasts point to a continuing improvement in the global economy, the economic risks have increased, in particular as a result of developments on the energy markets. Executive Board Chairman Dr. Ekkehard Schulz: "Despite this we expect ThyssenKrupp to deliver a positive performance overall. Sales in the magnitude of EUR 43 billion are expected in fiscal 2005/2006. Our long-term target for pre-tax earnings is around EUR 1.5 billion, and in fiscal 2005/2006 we once again plan to achieve a figure of this magnitude, excluding major nonrecurring effects. This means that following the extremely good 2004/2005 fiscal year we are again in line with the expectations of the capital market."

Share package sold to the Alfried Krupp von Bohlen und Halbach Foundation

The Alfried Krupp von Bohlen und Halbach Foundation has purchased around 15.3 million treasury shares of ThyssenKrupp AG from the Company at market price. The share package corresponds to 2.98% of the Company's capital stock.

As a result of the sale at a share price of EUR 17.44 (Xetra closing price on November 21, 2005) ThyssenKrupp will receive a cash influx of EUR 267.5 million. The Group's total stockholders' equity will increase by this amount. As a result of the transaction, ThyssenKrupp AG has now sold all the treasury stock purchased from IFIC Holding AG in May 2003. In the first two years treasury stock was used for employee share programs.

Friendly takeover bid by ThyssenKrupp to the shareholders of Dofasco

On November 28, 2005 the Executive Board of ThyssenKrupp AG resolved to submit a friendly takeover bid for a 100% interest in the Canadian steel producer Dofasco Inc. at a cash price of C$ 61.50 per share. The Supervisory Board by its Executive Committee (Präsidium) provided its approval. The Board of Directors of Dofasco unanimously recommends that its shareholders accept the offer.

Prior to this, ThyssenKrupp and Dofasco reached agreement on the submission and the conditions of the takeover bid in the framework of a Support Agreement.

For ThyssenKrupp, the acquisition is an important step in the implementation of the Group's forward strategy in the area of flat-rolled carbon steel aimed at achieving international growth and sustainable value enhancement. The combination of Dofasco's production and distribution operations with ThyssenKrupp's existing processing activities will strengthen ThyssenKrupp's presence in the NAFTA steel market.

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