ThyssenKrupp : Charts 1. Quartal 2019/2020 (nur in englischer Sprache)

Charts on Q1 FY 2019/20 Facts & Figures

Ticker: TKA (Share) TKAMY (ADR)

February 2020

Update newtk

Portfolio

Performance

# Elevator

• Final decision on option targeted for the end of February

# Plant Technology

• Best-ownersolution: market approach in progress

• Steel EuropeStrategy 20-30: headcount reduction in advanced negotiation with co-determination
• Auto Technologyand Plant Technologyrestructuring on schedule; dissolving of BA layer in progress
• Performance programssupporting financials in FY 19/20
• • ~80% of measures substantiated; ~60% of measures in execution
  • Personnel restructuring of ~500 FTE realized in Q1

2 | February 2020

Q1 19/201- Cyclical headwinds for Materials businesses

[€ mn]

# Order intake

• Industrials in total stable
• Materials volume- andprice-induced lower

	Q1	yoy
Group	9,660	(450)
th. Materials	5,193	(518)

• EBIT adj.
• FCF bef. M&A
• FY Outlook

1. Figures incl. effects of IFRS 16

3 | February 2020

−Industrials in total with improvements

0

217

24

12

-11

−

Materials volume-, price- and cost-

1

-202

8

induced lower

50

1

−Steel Europe with sig. negative contribution

at cyclical trough

AT

IC

ET

PT

MS

MX

SE

HQ/

Rec.

−On prior year level

−

Operational improvements offset

thereof BCF:

AT +62

by cartel fine

PT +154

-2,476

-2,477

MS +99

Q1

op.

cartel fine

Q1

SE +157

−

Maintained

18/19

improv.

SE

19/20

−Limited visibility and therefore limited planning reliability for our cyclical materials and auto businesses −Effects of Coronavirus particularly in China need to be monitored

Order intake below prior year mainly by lower price environment at Materials businesses

[€ mn]

		2018/19	2019/20
	Q1	Q4	Q1	yoy	yoy (ex FX)1)
Automotive Technology (AT) 2,3	1.283	1.354	1.353	5%	4%
Industrial Components (IC) 2,3	643	631	558	(13%)	(14%)
Elevator Technology (ET)	2.143	2.035	2.232	4%	3%
Plant Technology (PT) 2,3	668	614	568	(15%)	(16%)
Marine Systems (MS)	107	1.807	103	(3%)	(4%)
Materials Services (MX)	3.370	3.340	3.078	(9%)	(9%)
Steel Europe (SE)	2.341	1.814	2.115	(10%)	(10%)
Corporate Headquarters (HQ) 2,3	(0)	3	1	++	++
Reconciliation 3,4	(443)	(295)	(348)	21%
Full Group	10.111	11.303	9.660	(4%)	(5%)

AT:Growth supported by ramp-up of new components plants and projects (Steering, Damper and Camshafts); difficult auto market environment especially stressed by ongoing weak demand in China

IC:Good demand at bearings (wind energy) cannot compensate for cyclical decline at Forged Technologies (crankshafts for heavy duty engines, undercarriages)

ET:Growth in New installation and Modernization in the US,

promising growth in NI in China in units; prior year positively impacted by major project in Australia; positive trend in Service in particular in US and China; order backlog (excl. Service) on new record level

PT:Lower mainly due to large scale Mining order in prior year quarter; Cement with medium-size order in the USA

MS:Orders in marine electronics for German customer and subcontracts for a customer from North Africa

MX:Sig. lower volumes and negative price trend

SE:Higher volumes driven by inventory cycle offset by continued price pressure

1. Adjusted for FX and portfolio effects l 2. New organizational structure based on "newtk" | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported at Corporate are now combined in consolidation line as "Reconciliation"

4 | February 2020

Sales

[€ mn]

		2018/19	2019/20
	Q1	Q4	Q1	yoy	yoy (ex FX)1)
Automotive Technology (AT) 2,3	1.231	1.453	1.367	11%	10%
Industrial Components (IC) 2,3	573	639	544	(5%)	(6%)
Elevator Technology (ET)	1.923	2.125	2.045	6%	5%
Plant Technology (PT) 2,3	615	935	755	23%	22%
Marine Systems (MS)	298	496	381	28%	28%
Materials Services (MX)	3.388	3.291	3.046	(10%)	(11%)
Steel Europe (SE)	2.131	2.237	1.851	(13%)	(13%)
Corporate Headquarters (HQ) 2,3	(0)	3	1	++	++
Reconciliation 3,4	(426)	(336)	(316)	26%
Full Group	9.736	10.843	9.674	(1%)	(1%)

AT:Sales mirror order intake; ramp-up new plants vs. weak auto markets

IC:Increase at bearings for wind energy cannot compensate cyclical downturn at heavy duty engines components and undercarriages

ET:Growth driven by New Installation and Service in both Americas and Asia/Pacific; in particular strong NI volume and continued positive service growth in China

IS:Significant growth driven by execution of projects for chemical plants

MS:Significantly up due to further progress on submarine and surface vessel projects

MX:Further negative price trend and lower volumes due to lower demand in Europe

SE:Unfavorable product mix, negative price trend, sig. lower shipments particularly for auto

1. Adjusted for FX and portfolio effects l 2. New organizational structure based on "newtk" | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported at Corporate are now combined in consolidation line as "Reconciliation"

5 | February 2020

EBIT adj. - Improvements at Industrials in total; Materials volume-, price- and cost-induced lower

[€ mn]

	2018/19		2019/201)
	Q1	Q4	Q1	yoy
Automotive Technology (AT) 2,3	13	(39)	21	66%
Springs & Stabilizers 3	(17)	(64)	(20)	(16%)
System Engineering 3	7	(28)	(3)	--
Industrial Components (IC) 2,3	43	61	44	3%
Elevator Technology (ET)	204	266	228	12%
Plant Technology (PT) 2,3	(30)	(30)	(18)	41%
Marine Systems (MS)	0	1	(0)	--
Materials Services (MX)	22	(12)	11	(52%)
Steel Europe (SE)	38	(45)	(164)	--
Heavy Plate 3	(12)	(23)	(35)	--
Corporate Headquarters (HQ) 2,3	(63)	(76)	(66)	(5%)
Reconciliation 3,4	(11)	(6)	(6)	42%
Full Group	217	119	50	(77%)

AT:Higher volumes by ramp-up of new plants (Steering, Camshafts); remeasurement pensions; SP and SY with losses

IC:Bearings with increase by volume and mix vs. cyclically lower contribution by components for heavy duty engines

ET:Sales growth across all regions and positive effects from performance program;

ongoing margin improvement in Q1: 11.1% (+0.5 %p yoy)

PT:Slightly improved margins at Chemical and Cement plants, proceeds from sale of a building

MS:Still low margins on billed projects

MX:Lower shipments and prices in main product groups, margin pressure

SE:Lower volumes and prices, particularly with auto OEMs, temp. higher spot market share; higher raw material costs (IO)

HQ:Lower positive one-time effects, continued G&A cost reduction

1. Figures incl. effects of IFRS 16 l 2. New organizational structure based on "newtk" | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported at Corporate are now combined in consolidation line as "Reconciliation"

6 | February 2020

Special Items - continued focus on restructuring and future margin upside

[€ mn]			2018/19
			Q1	Q2	Q3	Q4
		Disposal effect
	AT	Impairment	(1)	(2)	(2)	(85)
	Restructuring				(6)
		Others	(3)	(7)	8	(6)
		Disposal effect
	IC	Impairment			(3)
	Restructuring		(1)	(4)	(9)
		Others	(1)		(10)	(2)
		Disposal effect	1
	ET	Impairment				(4)
	Restructuring	(3)	(22)	(13)	(19)
		Others	(3)	(7)	(4)	(42)
		Disposal effect			2
	PT	Impairment			(1)
	Restructuring	(2)	(1)	(2)	(7)
		Others	(5)	5	(8)	(1)
		Disposal effect
	MS	Impairment
	Restructuring			(1)
		Others
		Disposal effect				(1)
	MX	Impairment			(1)	(4)
	Restructuring	(3)	(2)	(5)	(15)
		Others	2		(4)	(9)
		Disposal effect	(4)	(20)	(3)	(1)
	SE	Impairment				(1)
	Restructuring	(1)	(1)		(1)
		Others	1	(134)	12
	HQ	Disposal effect	(10)	(25)	6	(9)
	Impairment			(3)
	Corp.
	Restructuring	(1)	(1)	(1)	(11)
		Others	(1)	16	(4)	1
	Consolidation/others	(2)	(3)	(4)	(13)
	Group	(36)	(204)	(42)	(242)

	2019/20
FY	Q1

1. (5)

1. (94)

1. (1)

1. (1)
   1

1. (4)

1. (7)

1. (9)
   2

(1)

1. (1)

(1)

(1)

(5)

1. (2)

1. 1

1. (1)

1. (22)

1. 1

1. (16)
   14

1. (4)

1. (166)

Comments on Q1

• Capacity adjustments and personnel reduction at System Engineering and dissolving BA level
• Mainly restructuring at plants in Brazil, Italy and India initiated in prior year at Forged Technologies
• Mainly costs in connection with restructurings in business units Europe / Africa and Americas
• Preparation ofcarve-out
• Partly offset by partial reversal of a provision for a legal case

• Provisions for restructurings at tkAG
• Project expenses in connection with the planned Elevator transaction

7 | February 2020

Outlook 2019/201maintained

[€ mn]

• Economic and geopolitical uncertainties, limited visibility and therefore

Trading		limited planning reliability for our cyclical materials and auto businesses
conditions	•	Effects of Coronavirus particularly in China need to be monitored

EBIT adj.

on prior-year level

FCF bef. M&A

below prior-year

802

						Sequentialoperational improvements in Q2-Q4
		50				supported by
FY	FY	Q1	Q2-Q4E• seasonal upswing from restocking
18/19	19/20E

• performance programs

					80%substantiated
(1,140)	op. improvement
vs.				60%in execution
	cartel fine (Q1),
	restructuring	(2,476)
FY	FY
Q1	Q2-Q4E
18/19	19/20E

1. Figures incl. effects of IFRS 16

1. | February 2020

Adjustments of reporting structure as of Oct 1st, 2019

FY 2018/19 sales1

Automotive

Industrial

Technology

Components

Plant Technology

81%

€5.4 bn

56%

€2.5 bn

€2.9 bn

44%

19%

+ System

Forged

Bearings

Plant Engineering

Mining Technologies

Cement Technologies

Engineering

Technologies

1. Figures on a pro-forma basis

9 | February 2020

thyssenkrupp Group1

Sales €42.0 bn; EBIT adj. €802 mn

Automotive

€5.4 bn

Industrial

€2.5 bn

Elevator

€8.0 bn

Technology (AT)

€(22) mn

Components (IC)

€230 mn

Technology (ET)

€907 mn

•

Chassis/ powertrain

•

Bearings

•

Elevators, escalators,

components

•

Undercarriages

moving walks

•

Production lines: auto/

•

Passenger boarding bridges

•

Crankshafts

aerospace

Plant

€2.9 bn

Marine

€1.8 bn

Materials

€13.9 bn

Steel

€9.1 bn

Technology (PT)

€(145) mn

Systems (MS)

€1 mn

Services (MX)

€107 mn

Europe (SE)

€31 mn

•

Chemical plants

•

Submarines2

•

Industrial materials distribution

•Premium flat carbon steel

•

Cement plants;

•

Naval surface vessels

•

Raw materials trading

minerals/ mining

•

Naval electronic systems

•

Logistics; SCM

equipment

•

Stainless steel

production (AST)

1. All figures related to FY 2018/19; AT, IC and PT on pro-forma basis l 2. Non-nuclear

10 | February 2020

FY 19/20 Outlook - limited visibility at Materials and auto businesses

Cost reduction and earning securing measures at all businesses

Q2 18/191Q2 19/20E		FY 19/20E	18/19119/20E1
AT	9		Return to +ve margin; sales upmid-single-digit; further ramp-up of new plants and projects; SP and SY still -ve	(22)
IC	57		Moderate decline;sales bearings up vs cyclically lower sales at heavy duty and construction machinery components	230
	198		11.0% - 12.0% EBIT adj. margin -stable to higher margin on a comparable basis, considering expected add. future	907
ET		standalone costs of €20-30 mn (on a comparable basis 11.1% in FY 18/19); saleswith low to mid-single-digit FX adj.
(10.6%)		(11.4%)
		growth;EBIT adj. margin target 20/21: 11.5%- 13%, furtherlong-term upside
PT	(30)		Significant recovery(however -ve); also in salesdepending on O/I;	(145)
	support by improvements in project execution and growth in high-margin service business
MS	0		Slightly +ve, stable sales;supported by cost cutting, better project execution and higher contribution by new projects	1
MX	53		Largely stable;challenging trading conditions	107
SE	37		Negative;challenging trading conditions, however sequential improvements expected; Heavy Plate still -ve	31
HQ/	(55)		Onprior-year level	(252)
Cons./Others	(29)		(54)
EBIT adj.	240		Onprior-yearlevel;improvements at Industrial compensate weaker earnings at Materials	802
Net income	(161)		Significant higher net lossresulting from lower EBIT and absence of positive effects in prior year	(260)
FCF b. M&A	23		Belowprior-year;operational improvements, depending on O/I and payment profiles for projects at PT and MS,	(1,140)
	cannot fully compensate higher restructuring payments (mid-3-digit €mn) and cartel fine (€370 mn)

1. FY 2018/19 figures for Automotive Technology (AT), Industrial Components (IC), Plant Technology (PT) and Corporate onpro-forma basis; the administrative units of Corporate and the regions will be presented as Corporate Headquarters as of Oct. 1st, 2019

1. | February 2020

Key financials

[€ mn]

			2018/19			2019/201)
	Q1	Q2	Q3	Q4	FY	Q1
Order intake	10,111	10,360	10,219	11,303	41,994	9,660
Sales	9,736	10,638	10,779	10,843	41,996	9,674
EBITDA	465	321	483	256	1,525	237
EBITDA adjusted	500	526	519	413	1,958	398
EBIT	181	32	183	(124)	272	(115)
EBIT adjusted	217	240	226	119	802	50
EBT	99	(55)	80	(207)	(83)	(206)
Net income/(loss)	68	(161)	(77)	(89)	(260)	(364)
attrib. to tk AG stockh.	60	(173)	(94)	(97)	(304)	(372)
Earnings per share2)(€)	0.10	(0.28)	(0.15)	(0.16)	(0.49)	(0.60)
Operating cash flow	(2,245)	319	218	1,781	72	(2,144)
Cash flow from divestm.	25	27	8	49	108	18
Cash flow from investm.	(257)	(323)	(375)	(489)	(1,443)	(327)
Free cash flow	(2,477)	22	(149)	1,341	(1,263)	(2,453)
FCF before M&A	(2,477)	23	(92)	1,406	(1,140)	(2,476)
TK Value Added					(1,068)
Ø Capital Employed	16,058	16,623	16,815	16,749	16,749	17,815
Cash and cash equivalents
(incl. short-term securities)	2,303	2,947	2,845	3,712	3,712	2,087
Net financial debt	4,684	4,834	5,101	3,703	3,703	7,138
Equity	3,274	2,882	2,494	2,220	2,220	1,934
Employees	161,496	161,153	161,740	162,372	162,372	161,538

1. Figures incl. effects of IFRS 16 | 2. Attributable to tk AG's stockholders

1. | February 2020

AT

Automotive Technology1)

[€ mn]

			2018/192)			2019/203)
	Q1	Q2	Q3	Q4	FY	Q1
Order intake	1,283	1,306	1,308	1,354	5,251	1,353
Sales	1,231	1,358	1,365	1,453	5,407	1,367
EBITDA	67	61	65	16	210	(2)
EBITDA adjusted	70	68	57	29	224	94
EBIT	9	0	2	(136)	(126)	(78)
EBIT adjusted	13	9	(5)	(39)	(22)	21
EBIT adj. margin (%)	1.0	0.7	(0.3)	(2.7)	(0.4)	1.6
tk Value Added					(381)
Ø Capital Employed	2,784	2,909	2,988	3,006	3,006	3,081
BCF	(313)	(134)	(75)	126	(396)	(251)
CF from divestm.	1	0	1	0	2	0
CF for investm.	(100)	(98)	(93)	(105)	(396)	(100)
Employees	24,712	24,984	25,513	25,834	25,834	25,891

Current trading conditions

• Order intake in Q1 at €1,353 mn (+5% yoy, ex F/X +4%); sales in Q1 at €1,367 mn (+11% yoy, ex F/X +10%)
• • Significant growth supported byramp-up of new components plants and projects (mainly Steering but also Damper and Camshafts); difficult auto market environment globally especially stressed by ongoing weak demand in China

EBIT adj. in Q1 at €21 mn significantly above prior year;

1. • Higher earnings contribution mainly at Damper and Camshafts; positiveone-time effects from remeasurement of pension plans; Springs & Stabilizers and System Engineering with negative contribution
   • Measures initiated to increase profitability: elimination of BA level, creation of lean office structure, as well as capacity adjustments and cost measures at System Engineering
2. New organizational structure based on "newtk": Former Components Technology renamed Automotive Technology, now incl. System Engineering (previously part of former Industrial Solutions) | 2. Figures on apro-forma basis | 3. Figures incl. effects of IFRS 16

1. | February 2020

IC

Industrial Components1)

[€ mn]

			2018/192)			2019/203)
	Q1	Q2	Q3	Q4	FY	Q1
Order intake	643	702	661	631	2,636	558
Order backlog	938	1,014	1,010	1,005	1,005	1,013
Sales	573	650	660	639	2,522	544
EBITDA	72	86	84	83	325	72
EBITDA adjusted	73	87	99	94	353	73
EBIT	42	56	52	51	201	43
EBIT adjusted	43	57	69	61	230	44
EBIT adj. margin (%)	7.5	8.7	10.5	9.6	9.1	8.1
tk Value Added					82
Ø Capital Employed	1,364	1,380	1,393	1,391	1,391	1,502
BCF	46	26	46	113	232	(50)
CF from divestm.	5	1	1	5	12	0
CF for investm.	(12)	(18)	(26)	(46)	(103)	(28)
Employees	14,493	14,350	14,120	13,773	13,773	13,528

Current trading conditions

• Order Intake in Q1 at €558 mn(-13% yoy, ex F/X -14%); sales in Q1 at €544 mn (-5% yoy, ex F/X -6%)
• • Bearings: good development overall especially wind energy China, slight decrease in components for construction equipment and in other business
  • Forged Technologies: cars/trucks: significant decline in cyclical Class 6 truck market (esp. USA), weaker European markets, demand decline in China

undercarriages: cyclical demand decline globally, partially compensated by broader product portfolio and exploitation of new markets and business segments EBIT adj. in Q1 at €44 mn slightly above prior year;

• Bearings: volume- andstructural-driven higher yoy
• Forged Technologies:sales-driven significantly below prior year, tariff disputes between USA and China negatively impacting demand in China, supported by early introduction of systematic cost-reduction measures

1. New organizational structure based on "newtk": Incl. Bearings and Forged Technologies (previously part of former Components Technology) | 2. Figures on a pro-forma basis | 3. Figures incl. effects of IFRS 16

14 | February 2020

ET

Elevator Technology

[€ mn]

			2018/19			2019/201)
	Q1	Q2	Q3	Q4	FY	Q1
Order intake	2,143	1,995	1,999	2,035	8,171	2,232
Order backlog	5,325	5,555	5,461	5,590	5,590	5,745
Sales	1,923	1,869	2,042	2,125	7,960	2,045
EBITDA	220	192	245	224	880	249
EBITDA adjusted	225	220	262	288	995	269
EBIT	199	169	222	202	791	207
EBIT adjusted	204	198	239	266	907	228
EBIT adj. margin (%)	10.6	10.6	11.7	12.5	11.4	11.1
tk Value Added					694
Ø Capital Employed	1,231	1,266	1,275	1,292	1,292	1,750
BCF	45	218	249	269	781	15
CF from divestm.	2	0	1	4	6	1
CF for investm.	(23)	(33)	(85)	(80)	(221)	(32)
Employees	53,285	52,918	53,013	53,084	53,084	52,838

Current trading conditions

Order backlog (excl. Service) at €5.7 bn on new record level

Order intake in Q1 +4% yoy (ex FX +3%); Growth in New installation and Modernization in the US, promising growth in NI in China in units; prior year positively impacted by major project in Australia; positive trend in Service in particular in US and China

Sales in Q1 with growth (+6% yoy; ex FX +5%) driven by New Installation and Service in both Americas and Asia/Pacific; in particular strong NI volume and continued positive service growth in China

Q1 EBIT adj.: significant earnings improvement driven by sales growth across the regions and positive effects from performance programme; ongoing margin improvement in Q1: 11.1% (+0.5 %p yoy)

1. Figures incl. effects of IFRS 16 15 | February 2020

Stable New installation market in all major regions; China stabilizing both in prices and in units

Modernization: positive market development in US; China with strong market growth

Maintenance: positive market development in EA; most pronounced growth in China and India

PT

Plant Technology1)

[€ mn]

			2018/192)			2019/203)
	Q1	Q2	Q3	Q4	FY	Q1
Order intake	668	513	1,048	614	2,844	568
Order backlog	5,021	4,881	5,189	4,847	4,847	4,615
Sales	615	669	725	935	2,943	755
EBITDA	(29)	(17)	(50)	(31)	(127)	(8)
EBITDA adjusted	(22)	(21)	(43)	(23)	(109)	(7)
EBIT	(37)	(26)	(63)	(38)	(164)	(19)
EBIT adjusted	(30)	(30)	(55)	(30)	(145)	(18)
EBIT adj. margin (%)	(4.9)	(4.4)	(7.5)	(3.3)	(4.9)	(2.3)
tk Value Added					(152)
Ø Capital Employed	(64)	(86)	(139)	(152)	(152)	(213)
BCF	(31)	0	(111)	(111)	(253)	123
CF from divestm.	1	0	5	21	28	14
CF for investm.	(8)	(9)	(9)	(9)	(35)	(8)
Employees	11,113	11,107	11,423	11,419	11,419	11,300

Current trading conditions

Q1 order intake significantly down from prior year, mainly reflecting major mining order in prior year

• Chemical plants: stable demand in particular for electrolysis plants and equipment, amongst others in Europe and Asia; order forenergy-saving chlorine production plant in Spain
• Mining: lower yoy due to major order in prior year; smaller orders amongst others for stockyard technology in Russia and gravel plant in Germany
• Cement: overall positive development;medium-size order for cement plant in the USA; smaller orders for components and services

Q1 EBIT adj. negative but better yoy, amongst others due to slight recovery in chemical and cement plant engineering as well as proceeds from sale of a building Q1 BCF positive and higher yoy due to favorable milestone mix at Chemical plant projects (MOL & Brunei)

1. New organizational structure based on "newtk": Former Industrial Solutions renamed Plant Technology (now excl. System Engineering, now part of Automotive Technology) | 2. Figures on apro-forma basis | 3. Figures incl. effects of IFRS 16

1. | February 2020

MS

Marine Systems

[€ mn]

			2018/19			2019/201)
	Q1	Q2	Q3	Q4	FY	Q1
Order intake	107	133	145	1,807	2,192	103
Order backlog	5,300	4,944	4,571	5,887	5,887	5,610
Sales	298	497	510	496	1,800	381
EBITDA	12	12	12	16	52	13
EBITDA adjusted	12	12	13	16	53	13
EBIT	0	(0)	(1)	1	0	(0)
EBIT adjusted	0	(0)	(0)	1	1	(0)
EBIT adj. margin (%)	0.0	(0.0)	(0.0)	0.0	0.0	0.0
tk Value Added					(74)
Ø Capital Employed	710	799	883	927	927	1,196
BCF	(148)	(131)	76	(129)	(333)	(49)
CF from divestm.	1	0	(0)	0	1	0
CF for investm.	(8)	(9)	(13)	(28)	(59)	(13)
Employees	5,868	5,859	5,870	6,013	6,013	6,104

Current trading conditions

Q1 Order intake on prior-year level; orders in marine electronics for German customer and subcontracts for a customer from North Africa Q1 EBIT adj. on prior-year level, continuing low margins on projects billed

Q1 BCF up yoy due to higher milestone payments

1. Figures incl. effects of IFRS 16

1. | February 2020

MX

Materials Services

[€ mn]

			2018/19			2019/201)
	Q1	Q2	Q3	Q4	FY	Q1
Order intake	3,370	3,821	3,336	3,340	13,868	3,078
thereof Materials Production	401	489	401	431	1,721	427
Sales	3,388	3,696	3,505	3,291	13,881	3,046
thereof Materials Production	390	463	453	430	1,736	389
EBITDA	49	79	63	(11)	180	54
EBITDA adjusted	50	81	72	17	220	55
thereof Materials Production	16	6	12	8	42	7
EBIT	22	51	34	(41)	66	11
EBIT adjusted	22	53	43	(12)	107	11
thereof Materials Production	7	(4)	3	(2)	4	(3)
EBIT adj. margin (%)	0.7	1.4	1.2	(0.4)	0.8	0.4
thereof Materials Production	1.8	(0.8)	0.6	(0.4)	0.2	(0.8)
tk Value Added					(244)
Ø Capital Employed	3,782	3,898	3,914	3,866	3,866	4,034
BCF	(879)	417	(186)	689	41	(907)
thereof Materials Production	(134)	18	(22)	144	6	(224)
CF from divestm.	1	17	1	13	33	5
CF for investm.	(18)	(36)	(30)	(51)	(135)	(23)
Employees	20,378	20,302	20,242	20,340	20,340	20,238

Current trading conditions

Sales in Q1 below prior year: declining volumes in warehousing and distribution and auto-related service centers as well as AST mainly due to weak demand in Europe; further decline in prices in virtually all product segments

EBIT adj. in Q1 significantly down yoy: margin pressure from declining prices in all business units, partly offset by productivity gains from performance programs and positive effects from derivates; AST with negative earnings contribution due to unfavourable price situation for stainless steel, continuing import pressure and weak market environment; BCF significantly negative

1. Figures incl. effects of IFRS 16

1. | February 2020

SE

Steel Europe

[€ mn]

			2018/19			2019/201)
	Q1	Q2	Q3	Q4	FY	Q1
Order intake	2,341	2,451	2,177	1,814	8,784	2,115
Sales	2,131	2,350	2,347	2,237	9,065	1,851
EBITDA	147	(6)	121	58	321	(48)
EBITDA adjusted	152	149	113	61	475	(46)
EBIT	34	(118)	9	(48)	(123)	(166)
EBIT adjusted	38	37	1	(45)	31	(164)
EBIT adj. margin (%)	1.8	1.6	0.0	(2.0)	0.3	(8.9)
tk Value Added					(586)
Ø Capital Employed	5,307	5,498	5,532	5,447	5,447	5,396
BCF	(832)	(52)	124	687	(72)	(1,045)
CF from divestm.	11	0	(0)	1	12	(2)
CF for investm.	(94)	(117)	(110)	(161)	(482)	(121)
Employees	27,613	27,882	27,934	28,278	28,278	28,093

Current trading conditions

• EU carbon flat steel market with further economic slowdown, mainly driven by:
• • increasing geopolitical and foreign trade tensions and uncertainties
  • market environment remains extremely challenging: continuing structural overcapacities, risks from trade imbalances, increased iron ore prices with falling revenues
  • still noticeably high imports (in particular Turkey, South Korea) and safeguard measures so far had not a major limiting effect
• Shipments further decreased in Q1 (2.2 mt vs. prior year 2.4 mt), in particular auto
• Sales in Q1 down yoy, caused by an unfavorable product mix driven by further negative price trend and lower shipments
• EBIT adj. in Q1 sig. down and negative driven by lower volumes and prices, particularly with auto OEMs; temp. higher spot market share; higher raw material costs (iron ore)

1. Figures incl. effects of IFRS 16

19 | February 2020

Volume KPI's of Materials Businesses

				2011/12	2012/13	2013/14	2014/15	2015/16	2016/17	2017/18			2018/19			2019/20
				FY	FY	FY	FY	FY	FY	FY	Q1	Q2	Q3	Q4	FY	Q1
		Total shipments	kt	10,868	10,669	13,615	13,421	12,605	10,966	11,096	2,376	2,672	2,388	2,413	9,849	2,254
	MXWarehousing shipments1	kt	5,470	5,300	5,592	5,532	5,518	5,686	5,944	1,338	1,568	1,442	1,436	5,784	1,263
		Shipments AST2	kt	-	-	537	747	848	853	888	192	229	222	202	844	180
		Crude Steel	kt	11,860	11,646	12,249	12,392	12,021	12,060	11,839	2,821	2,902	2,750	2,813	11,286	2,840
		Steel Europe AG	kt	8,408	8,487	8,936	9,276	9,336	9,440	9,171	2,170	2,246	2,110	2,149	8,675	2,167
		HKM	kt	3,452	3,160	3,313	3,116	2,686	2,620	2,668	651	655	640	665	2,611	674
	SE	Shipments	kt	12,009	11,519	11,393	11,725	11,174	11,433	11,302	2,397	2,699	2,720	2,636	10,452	2,242
		Cold-rolled	kt	7,906	7,437	7,137	7,182	7,048	7,169	6,995	1,543	1,718	1,664	1,648	6,572	1,479
		Hot-rolled	kt	4,103	4,082	4,256	4,543	4,126	4,265	4,307	854	981	1,057	989	3,880	759
		Average Steel revenues per ton3	139	127	119	114	107	122	132	139	137	134	132	135	131
		USD/EUR	Aver.	1.30	1.31	1.36	1.15	1.11	1.10	1.19	1.14	1.14	1.12	1.11	1.13	1.11
		USD/EUR	Clos.	1.29	1.35	1.26	1.12	1.12	1.18	1.16	1.15	1.12	1.14	1.09	1.09	1.12

1. Excl. AST/VDM shipments | 2. Included at MX since March '14 | 3. Indexed: Q1 2004/05 = 100

1. | February 2020

HQ

Corporate Headquarters1)

[€ mn]

			2018/19	2)			2019/20	3)
	Q1	Q2	Q3		Q4	FY	Q1
EBITDA	(69)	(60)	(52)	(90)	(271)	(99)
EBITDA adjusted	(57)	(51)	(53)	(71)	(232)	(61)
EBIT	(74)	(64)	(59)	(95)	(293)	(103)
EBIT adjusted	(63)	(55)	(57)	(76)	(252)	(66)
BCF	(73)	(99)	(67)	(113)	(352)	(50)
Employees	1,187	1,119	1,092	1,057	1,057	1,041

As of FY 2019/20 the administrative units of Corporate and the regions are shown as Corporate Headquarters. The Service Units and Special Units will be shown in Reconciliation line.

1. Only administrative Units of Corporate and regions - Former Service and Special Units are combined in consolidation line as "Reconciliation" | 2. Figures on a pro-forma basis | 3. Figures incl. effects of IFRS 16

21 | February 2020

Business Area Overview - Quarterly Order Intake

[€ mn]

			2018/19			2019/20
	Q1	Q2	Q3	Q4	FY	Q1
Automotive Technology1)2)	1,283	1,306	1,308	1,354	5,251	1,353
Industrial Components1)2)	643	702	661	631	2,636	558
Elevator Technology	2,143	1,995	1,999	2,035	8,171	2,232
Plant Technology1)2)	668	513	1,048	614	2,844	568
Marine Systems	107	133	145	1,807	2,192	103
Materials Services	3,370	3,821	3,336	3,340	13,868	3,078
Steel Europe	2,341	2,451	2,177	1,814	8,784	2,115
Corporate Headquarters1)2)	(0)	1	1	3	5	1
Reconciliation2)3)	(443)	(562)	(457)	(295)	(1,758)	(348)
Full Group	10,111	10,360	10,219	11,303	41,994	9,660

1. New organizational structure based on "newtk" | 2. FY 2018/19 figures on a pro-forma basis | 3. Service and Special Units previously reported under Corporate are now combined in consolidation line as "Reconciliation"

22 | February 2020

Business Area Overview - Quarterly Sales

[€ mn]

			2018/19			2019/20
	Q1	Q2	Q3	Q4	FY	Q1
Automotive Technology1)2)	1,231	1,358	1,365	1,453	5,407	1,367
Industrial Components1)2)	573	650	660	639	2,522	544
Elevator Technology	1,923	1,869	2,042	2,125	7,960	2,045
Plant Technology1)2)	615	669	725	935	2,943	755
Marine Systems	298	497	510	496	1,800	381
Materials Services	3,388	3,696	3,505	3,291	13,881	3,046
Steel Europe	2,131	2,350	2,347	2,237	9,065	1,851
Corporate Headquarters1)2)	(0)	1	1	3	5	1
Reconciliation2)3)	(424)	(452)	(374)	(336)	(1,586)	(316)
Full Group	9,736	10,638	10,779	10,843	41,996	9,674

1. New organizational structure based on "newtk" | 2. FY 2018/19 figures on a pro-forma basis | 3. Service and Special Units previously reported at Corporate are now combined in consolidation line as "Reconciliation"

23 | February 2020

Business Area Overview - Quarterly EBIT and Margin

[€ mn]

			2018/19			2019/201)
	Q1	Q2	Q3	Q4	FY	Q1
Automotive Technology2)3)	9	(0)	2	(136)	(126)	(78)
%	0.7	(0.0)	0.1	(9.4)	(2.3)	(5.7)
Industrial Components2)3)	42	56	52	51	201	43
%	7.3	8.6	7.9	8.0	8.0	7.8
Elevator Technology	199	169	222	202	791	207
%	10.3	9.0	10.9	9.5	9.9	10.1
Plant Technology2)3)	(37)	(26)	(63)	(38)	(164)	(19)
%	(6.1)	(3.9)	(8.7)	(4.0)	(5.6)	(2.5)
Marine Systems	0	(0)	(1)	1	0	(0)
%	0.0	(0.0)	(0.1)	0.1	0.0	0.0
Materials Services	22	51	34	(41)	66	11
%	0.6	1.4	1.0	(1.2)	0.5	0.3
Steel Europe	34	(118)	9	(48)	(123)	(166)
%	1.6	(5.0)	0.4	(2.2)	(1.4)	(8.9)
Corporate Headquarters2)3)	(74)	(64)	(59)	(95)	(293)	(103)
Reconciliation3)4)	(12)	(36)	(13)	(19)	(80)	(10)
Full Group	181	32	183	(124)	272	(115)
%	1.9	0.3	1.7	(1.1)	0.6	(1.2)

1. Figures incl. effects of IFRS 16 | 2. New organizational structure based on "newtk" | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported under Corporate are now combined in consolidation line as "Reconciliation"

24 | February 2020

Business Area Overview - Quarterly EBIT adj. and Margin

[€ mn]

			2018/19			2019/201)
	Q1	Q2	Q3	Q4	FY	Q1
Automotive Technology2)3)	13	9	(5)	(39)	(22)	21
%	1.0	0.7	(0.3)	(2.7)	(0.4)	1.6
Industrial Components2)3)	43	57	69	61	230	44
%	7.5	8.7	10.5	9.6	9.1	8.1
Elevator Technology	204	198	239	266	907	228
%	10.6	10.6	11.7	12.5	11.4	11.1
Plant Technology2)3)	(30)	(30)	(55)	(30)	(145)	(18)
%	(4.9)	(4.4)	(7.5)	(3.3)	(4.9)	(2.3)
Marine Systems	0	0	0	1	1	(0)
%	0.0	(0.0)	(0.0)	0.2	0.0	0.0
Materials Services	22	53	43	(12)	107	11
%	0.7	1.4	1.2	(0.4)	0.8	0.4
Steel Europe	38	37	1	(45)	31	(164)
%	1.8	1.6	0.0	(2.0)	0.3	(8.9)
Corporate Headquarters2)3)	(63)	(55)	(57)	(76)	(252)	(66)
Reconciliation3)4)	(11)	(29)	(10)	(6)	(56)	(6)
Full Group	217	240	226	119	802	50
%	2.2	2.3	2.1	1.1	1.9	0.5

1. Figures incl. effects of IFRS 16 | 2. New organizational structure based on "newtk" | 3. FY 2018/19 figures on a pro-forma basis | 4. Service and Special Units previously reported under Corporate are now combined in consolidation line as "Reconciliation"

25 | February 2020

Effects from IFRS 16 "Leases" as of FY 2019/20

Balance sheet

P&L

Cash flow statement

	Assets		~€1 bn
			~€1 bn	•Increase in non-current assets
	Balance sheet total
			~-0.2%p
	Equity ratio
			~€1 bn	•Increase (will be adjusted in gearing ratio calculation by banks)
	Net financial debt
			<€0.3bn	•Elimination of operating lease expenses
	EBITDA
			<€0.1bn	•Positive EBITDA effect partly offset by future depreciation charges
	EBIT
			<€0.1bn	•Higher interest expenses
	Net financial income/expense
			<€0.3 bn	•Lower repayment portion of further historical lease payments
	Operating Cashflow
			~€0.2 bn	•Higher repayment portion of further historical lease payments
	Cash flow from financing acitivities
			~€0.2 bn	•Considering present value of new leased items
	CAPEX (non-cash)

FCF bef. M&A largely unchanged

26 | February 2020

Capex increase due to IFRS 16 adoption amongst others

Group

CT		IS		MX
ET		MS		SE

						up yoy
						(incl. IFRS 16)
€1,443 mn
					Non-cash IFRS 16 effect:
33%		• Considering present value of
	new leased items
					• ~€200 mn impact	100%
15%
	4%
		4%
9%

34%

2018/19

2019/20E

27 | February 2020

Solid financial situation

Liquidity analysis and maturity profile of gross financial debt (without lease liabilities IFRS 16) as of December 31, 2019 [€ mn]

		5,127
				Latest bond (09/2019):
					€1,000 mn
					Maturity: 03/2023
Available committed				1.875%
3,040
credit facilities
				20%	22%	18%	13%	18%	9%
				1,672	1,764	1,482		1,513
Cash and	2,087	1					1,025		739
cash equivalents

1. Incl. securities of €8 mn

12/31/2019	2019/20	2020/21	2021/22	2022/23	2023/24	after
	(9 months)					2023/24

Total: 8,195

Gross financial debt

(w/o lease liabilities IFRS 16)

28 | February 2020

Pensions: "patient" long-term financial debt with gradual amortization

[€ mn]

Accrued pension and similar obligations			Development at unchanged discount rate (schematic)
7,838			7,898		8,243		8,512		8,688
				40		44	202	50	209	57	202
37	175	210
		638
			519			553
		503
503
										8,688					100-200 p.a. amortization
														8,341
									8,266
						7,993
															by payments to pensioners
7.183	7,686	7.490	7.747	8.050		7.788
1.70			1.30		1.00		0.70		0.90
Q1 18/19	Q2 18/19	Q3 18/19	Q4 18/19	Q1 19/20

Fluctuations in accrued pensions

• are mainly driven by increases / decreases in discount rates in Germany (>90% of accrued pensions in Germany)
• do not change payouts to pensioners
• do not trigger funding situation in Germany;
  and not necessarily funding changes outside Germany
• are recognized directly in equity via OCI

• IFRS requires determination of pension discount rate based on AA- rated corporate bonds
• Pension discount rate significant lower than interest rates of tk corporate bonds
• >90% of accrued pensions in Germany;
  thereof ~60% owed to exist. pensioners (average age ~77 years)

Accrued pension liability Germany

Accrued pension liability outside GER

Accruals related to partial retirement agreements

Other accrued pension-related obligation

German discount rate

29 | February 2020

Germany accounts for majority of pension plans

[FY 18/19; € mn]

Funded status of defined benefit obligation

2,448

7,122

11,067

8,688

1,566

Partly

Unfunded

Accrued

Plan assets

Defined

underfunded

portion

pension

benefit

portion

liabilities

obligation

• >95% of the unfunded portion in Germany;
  German pension regulations do not require funding of pension obligations with plan assets;
  therefore funding is mainly done by tk's operating assets

1. Othernon-financial assets

1. | February 2020

Reconciliation of accrued pension liabilities by region

Germany			Outside Germany
	(181)
8,232		8,050
			2,836	(2,267)		638
					54
Defined	Plan	Accrued	Defined	Plan	Other	Accrued
benefit	assets	pension	benefit	assets	effects1	pension
obligation		liabilities	obligation			liabilities

• Plan assets outside Germany mainly attributable to UK (~34%) and USA (~27%)
• Plan asset classes include national and international stocks, fixed income securities of governments andnon-governmental organizations, real estate as well as highly diversified funds

Net periodic payments exceed Service costs (incl. in EBITDA) by >€200 mn (long-term ~€300 mn) and amortize pension liability by of Net periodic payment vs. Net periodic pension cost

[€ mn]

Non-cash employees earning	Cash to pensioners
future pension payments
			8,688
Net periodic pension cost (337)		Net periodic payment	425

			126	(529)			1,169
7,607	203	8	(353)
			(72)
				(176)	176
1.70								0.70
Sep. 30,	Service	Admin	Net	from	from	Annual	Others	Sep. 30,
2018	costs1	costs	interest cost	Group	plan assets	contribution	(mainly	2019
						to plan assets	actuarial gains)
In	P&L: personnel costs2	P&L:		Operating Cash Flow		mainly:
financial line			equity (OCI)
financial
							German discount rate
statements		Cash flow statement: "changes in accrued pension and similar obligations"

1. Including past service cost and curtailments
2. Additional personnel expenses include €173 mn net periodic pension cost for defined contribution plans

31 | February 2020

Re-conciliation of EBIT Q1 2019/20 from Group P&L

Group [€ mn]

P&L structure

Net sales	9,674
Cost of sales	(8,442)
SG&A, R&D	(1,415)
Other income/expense	57
Other gains/losses	10
= Income from operations	(117)
Income from companies using equity method	5

Finance income/expense

(93)

EBIT definition

Net sales	9,674
Cost of sales	(8,442)
SG&A, R&D	(1,415)
Other income/expense	57
Other gains/losses	10
Income from companies using equity method	5
Adjustm. for oper. items in fin. income/expense	3
= EBIT	(115)
Finance income/expense	(96)
Operating items in fin. income/expense	(3)

= EBT

(206)

= EBT

(206)

32 | February 2020

Disclaimer thyssenkrupp AG

This presentation has been prepared by thyssenkrupp AG ("thyssenkrupp") and comprises the written materials/slides for a presentation concerning thyssenkrupp. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

This presentation is for information purposes only and the information contained herein (unless otherwise indicated) has been provided by thyssenkrupp. It does not constitute an offer to sell or the solicitation, inducement or an offer to buy shares in thyssenkrupp or any other securities. Further, it does not constitute a recommendation by thyssenkrupp or any other party to sell or buy shares in thyssenkrupp or any other securities and should not be treated as giving investment, legal, accounting, regulatory, taxation or other advice. This presentation has been prepared without reference to any particular investment objectives, financial situation, taxation position and particular needs. In case of any doubt in relation to these matters, you should consult your stockbroker, bank manager, legal adviser, accountant, taxation adviser or other independent financial adviser.

The information contained in this presentation has not been independently verified, and no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information contained herein and no reliance should be placed on it. To the extent permitted by applicable law, none of thyssenkrupp or any of its affiliates, advisers, connected persons or any other person accept any liability for any loss howsoever arising (in negligence or otherwise), directly or indirectly, from this presentation or its contents or otherwise arising in connection with this presentation. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contain herein.

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.

Any assumptions, views or opinions (including statements, projections, forecasts or other forward-looking statements) contained in this presentation represent the assumptions, views or opinions of thyssenkrupp as of the date indicated and are subject to change without notice. thyssenkrupp neither intends, nor assumes any obligation, unless required by law, to update or revise these assumptions, views or opinions in light of developments which differ from those anticipated. All information not separately sourced is from internal company data and estimates. Any data relating to past performance contained herein is no indication as to future performance. The information in this presentation is not intended to predict actual results, and no assurances are given with respect thereto.

Throughout this presentation a range of financial and non-financial measures are used to assess our performance, including a number of the financial measures that are not defined under IFRS, which are termed 'Alternative Performance Measures' (APMs). Management uses these measures to monitor the group's financial performance alongside IFRS measures because they help illustrate the underlying financial performance and position of the group. These APMs should be considered in addition to, and not as a substitute for, or as superior to, measures of financial performance, financial position or cash flows reported in accordance with IFRS. APMs are not uniformly defined by all companies, including those in the group's industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies.

33 | February 2020