thyssenkrupp technologies strategic focus – leading-edge

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Tk Technologies

ThyssenKrupp Field Day Technologies and Elevator, Hamburg, March 14/15, 2006

ThyssenKrupp TechnologiesStrategic Focus – Leading-edge Technology – Value Driver

Olaf BerlienChairman of the Executive Board of ThyssenKrupp Technologies AGMember of the Executive Board of ThyssenKrupp AG

ThyssenKrupp Field Day, HamburgMarch 14, 2006

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Strategic Focus

Leading-edge Technology

Value Driver

ThyssenKrupp Technologies

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ThyssenKrupp: Focused Industrial Group With Three Pillars

Stainless Services

ServicesCapital Goods

ElevatorTechnologiesAutomotive

Steel

Steel

Sales:€9.6 billionEmployees: 32,000



Sales:€5.8 billionEmployees:28,000


Sales:€3.8 billionEmployees:34,000

Sales: 2004/05; Employees: Sep 30, 2005, rounded

ThyssenKruppSales: €42.9 billion • Employees: 184,000

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Nucleus for Successful Segments and Concentration on Core Business

Thyssen Industrie

Thyssen Industrie

Krupp Hoesch Industries

Krupp Hoesch Industries

Krupp Engineering

Krupp Engineering

Portfoliooptimizations

Portfoliooptimizations

ThyssenKruppTechnologies

ThyssenKruppTechnologies

PlantTechnology

MarineSystems

MechanicalEngineering


ThyssenKruppAutomotive

ThyssenKruppAutomotive

ThyssenKruppElevator

ThyssenKruppElevator

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Major Portfolio Changes in the Last Few Months

(+) Atlas Elektronik(+) Atlas Elektronik

(+) Maerz Ofenbau(+) Maerz Ofenbau

(-) G+L Foundry(-) G+L Foundry

(-) Sheffield Measurement

(-) Sheffield Measurement

(-) Autobody ManufacturingSystems

(-) Autobody ManufacturingSystems (+) Inventa-Fischer(+) Inventa-Fischer(-) Novoferm(-) Novoferm

(-) Polymer(-) Polymer

(-) Henschel(-) Henschel

(-) EnCoke Energietechnik(-) EnCoke Energietechnik

(-) Otto India(-) Otto India

(+) HDW-Gruppe(+) HDW-Gruppe

(+) Yara-FertilizerTechnology NL

(+) Yara-FertilizerTechnology NL

(-) Elastomertechnik(-) Elastomertechnik

(-) TK Ingeniería y Sistemas(-) TK Ingeniería y Sistemas

(-) Stahlbau(-) Stahlbau

(-) Turbinenkomponenten(-) Turbinenkomponenten

(-) MetalCutting(-) MetalCutting

Divestments: €1.9 bn in sales

Acquisitions: €1.8 bn in sales

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Strategic Objectives

Sustainable value creation

Market leadership with top-3 positions

Strong international presence

Focus on customers through decentralized company management

Technology leadership and development of innovative products with high customer value

Rapid expansion of service business

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World Market Leadership with Top-3 Positions

Plant Technology

Marine Systems

Mechanical Engineering

• Uhde

• Polysius

• Fördertechnik

• Rothe Erde

• Berco

• Assembly Systems

• Industrietechnik

• Marine Systems

Transrapid • Transrapid

TOP 1-3

TOP 1-2

TOP 1

TOP 1

TOP 1

TOP 1

TOP 1

TOP 1-2

USP

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Strong International Presence

Employeesoutside Germany

Note: FY 2004/05; locations as of November 2005, incl. branches and offices

Salesoutside Germany

122 locations worldwide

NAFTA 16Europe 25

Asia / Pacific 25

SouthAmerica 9

Africa 5

Germany 42

77 %

50 %

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Technology Leadership and Development of Innovative Products

More than 90 patents and utility models registered each year

Plant Technology

Marine Systems


ENVINOX®: Reductionin greenhouse gases

Air-independentpropulsion systems

Bearings fore.g. wind energy

Transrapid

Flying on the ground

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Positive Development of Order Intake and Sales

Order Intake (in € billion)Order Intake (in € billion) Sales (in € billion)Sales (in € billion)

04/0504/05 05/06e05/06e 06/07e06/07e 07/08e07/08e 08/09e08/09e 09/10e09/10e 04/0504/05 05/06e05/06e 06/07e06/07e 07/08e07/08e 08/09e08/09e 09/10e09/10e

5.6

7.07.5 7.5

7.0 7.0

5.86.2 6.4 6.5 6.7 7.0

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Sales for 05/06 Secured Since January (After 4 Months) by Orders in Hand

05/06e05/06e 07/08e07/08e06/07e06/07e 09/10e09/10e08/09e08/09e

Sales cover from orders in hand (Jan. 31, 2006)

Order intake

34%44%

22%9% 8%

55%

Salescoverage= 89 %

Sales realized to January

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Strategic Focus


Value Driver


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Plant Technology

ThyssenKrupp TechnologiesSales: €6 billion Employees: 27,700

Marine Systems Mechanical Engineering

Sales: €2.1 billionEmployees: 8,600


Marine Systems

• Rothe Erde• Berco• Assembly Systems• B+V Industrie

Transrapid

Plant Technology


• Uhde• Polysius• Fördertechnik

Note: Numbers based on fiscal year 2005/06 as planned; rounded

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Plant Technology: Engineering Expertise in Large-Scale Plant Construction

Uhde: Chemical and industrial plants

World market position: TOP 1-3

Polysius: Cement plants


Fördertechnik: Plants for mining,processing, and materials handling

World market position: TOP 1

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Plant Technology: Worldwide Network of Engineering and R&D Centers

South Africa (160)

Mexico(330) Thailand

Australia

India (1,100)

Russia (240)

Singapore

Europe (4,050)Canada

Brazil

USA

Chile

Argentine

Saudi Arabia

China

Figures in brackets = no. of employees at Sep. 30, 2005, roundedOther engineering and R&D centers <100 employees

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Worldwide reserves of approx. 650 bn barrels, thereof >80% in Canada (Alberta)

These oil reserves are bigger than those of Saudi Arabia

With Canada’s deposits, today’s world demand for oil could be met for the next 55 years

With rising oil prices,mining has now become profitable as breakeven lies around US$19/barrel

Plant Technology: Oil Sand Mining “Canadian Natural Resources” (I)

Oil sand deposits in Canada

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Plant Technology: Oil Sand Mining “Canadian Natural Resources” (II)

Conveyor System

The longest connected conveyor system of the world of 19 km was

delivered by TK Fördertechnik!

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Plant Technology: Multi-Level Risk Management

Operatingrisks

Business risks atPlant Technology

Financial risks

Competitiverisks

Projectmanagement

Financialinstruments

Flexibility& service

Order selectionOffer controllingSystematic project/order controlling Risk provision in offerBoard reporting (BU, TKT, TKAG)Project auditing

Prepayments & claim managementAssembly, planning liability insuranceHermes guaranteeLetters of creditHedging via currency derivatives

Labor market instrumentssuch as engineering in Russia and India(low cost and flexible)Operations: Expand services

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Marine Systems


Plant Technology Mechanical Engineering




Marine Systems


Marine Systems


Transrapid


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Blohm + VossBlohm + Voss Repair

Nordseewerke

HDWKockums

HellenicShipyards

Nobiskrug

Blohm + VossBlohm + Voss Repair

Nordseewerke

HDWKockums

HellenicShipyards

Nobiskrug

Marine Systems: Creating a European Maritime Systems House under the Leadership of ThyssenKrupp Within Only One Year

First and only European group of shipyards and electronics industry

100% privately owned marine group

Leading world market positions in:- Conventional submarines, frigates, corvettes,

and mega-yachts- Command, control and sonar systems

Leadership in technology and systems integration, including:

- Integrated electronics and sonar systems - Stealth technology - Fuel cells for submarines

European Maritime Systems House

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The drive rating of approx. 50,000 HP corresponds to the output of a power station for a city with approx. 50.000 inhabitants.

Marine Systems: Export Market Leader for Frigates, Corvettes, and Submarines

Frigates, corvettes, and submarinesWorld market position TOP 1 in naval shipbuilding

Powerfulpropulsion

Almostimpossible to locate

successfuldesignconcept

For normal maritime traffic, additional reflectors are needed to allow other ships to recognizethe frigates

Gas turbine

• Acceleration to over 30 knots

• “Crash Stop” (3 ship lengths)

Longsubmerged

time

Air-independent propulsion (fuel cell, diesel) allows submarines to remain submergedfor 4 to 5 timeslonger

Stealth

MEKO®

Fuelcells

Pro-pulsion

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Marine Systems: Capabilities in Mega-Yachts and After Sales Service

Capability in Mega-yacht BuildingWorld’s Biggest Yachts (over 100 meters)

Capability in Time-challenging RefitsWorld’s Biggest Cruise Liner “Queen Mary 2”

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Plant Technology Marine Systems




Transrapid

Marine Systems





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Rothe Erde: Large-diameter bearings and rings, e.g. for


Berco: Crawlers for excavators and bulldozers


Mechanical Engineering: High-Tech Components (I)

Cranes/construction machineryMedical technology (CT)Offshore equipmentWind turbines

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Mechanical Engineering: Worldwide Growth of Wind Energy

Installed Capacity for Wind Energy per Year Rothe Erde Bearings in Wind Energy Plants

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Mechanical Engineering: High-Tech Components (II)

Assembly Systems: Automated assembly and test systems for engines, transmissions, and axles


B+V Industrie: Components for shipbuilding


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Strategic Focus


Value Driver


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Concentration on High-Profit Business Units

Plant Technology Marine Systems Mechanical Engineering

Transrapid






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Growth in Core Business

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10

million €

average growth in core business: +8% p.a.

average growth in core business: +8% p.a.

Target:€7 billion

Portfolio optimization

Reallocations within the Group

Core businessCore business

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Sustainable Value Enhancement as Value Driver

2. Generate a high free cash flow to finance the Group and fund pensions and dividends

1. Create positive TKVA

3. Significant increase in prepayments to reduce the net financial debt of the ThyssenKrupp Group

At €563 million TKT generated one of the highest free cash flows in the Group

A significant improvement of the TKVA to €151 million

With a net financial credit of €2.2 billion (at Sep. 30, 2005), TKT contributed to reducing the Group’s debt

TKT financial goals Achievement in 2004/052003/04

FCF €392 m

TKVA€69 m

NFC€1.3 bn

03/04 and 04/05 continued operations, US GAAP

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Value Driver for the GroupThyssenKrupp Technologies adds sustainable value to the ThyssenKrupp Group interms of TKVA, in terms of Free Cash Flow, and in terms of Net Financial Funds.

Dominant Market Positions through Leading-edge TechnologyThrough innovative and patented technologies the segment has achieved competitive advantages, which have created dominant market positions worldwide.

Clearly Focused SegmentThrough strong portfolio optimizations within the last few months ThyssenKrupp Technologies now is a clearly focused segment.

Conclusion

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Appendix

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ThyssenKrupp Technologies is a manufacturer of high-tech plant and machinery.

As world leader in innovative system and engineering capabilities, the segment supplies systems, facilities, specialized machinery, and

components, together with associated services.

ThyssenKrupp Technologies is a manufacturer of high-tech plant and machinery.

As world leader in innovative system and engineering capabilities, the segment supplies systems, facilities, specialized machinery, and

components, together with associated services.

Mission Statement

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Executive Board

Personnel Service

Executive Development

Public Relations

Legal/Patents

Corp. Dev.

Controlling

Purchasing

Inv./ TK bestIT

Accounting

Plant Technology

Transrapid

Marine Systems

MechanicalEngineering

Dr. BerlienCEO

Dr. Borgschulte Mr. BrekerDr. Atzpodien

ThyssenKrupp Technologies AGMr. Labonte

Cor

pora

teC

ente

r

Bus

ines

sU

nits

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Key Figures

Sales

EBIT

Free cash flow

Employees (Sep 30/Dec 31)

* not adjusted for discontinued operations; ROCE 2004/05 impacted by disposal loss of MetalCutting2000/01 – 2003/04 as reported under US GAAP; 2004/05 and Q1 2005/06 as reported under IFRS except ROCE

ROCE

5,806

97

75

32,781

2001/02*

11.7

5,733

195

332

32,249

2000/01*

14.2

4,636

37

316*

2003/04

14.7*

5,382

(5)

531

29,871

2002/03*

4.2

EBT 112203 6742

Order intake 5,3045,705 5,4184,984€m

€m

€m

€m

%

€m

25,229

5,765

21

551*

2004/05

(3.7)*

40

5,643

28,042

1,603

81

(1)

Q12005/06

–

92

1,648

27,404

EBITDA 267371 152159€m 193 116

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Sales and Employees by Region

Germany50 %

Rest of World1%

North America 5%

Europe(excl. Germany)

33 %

South America1%

Asia10 %

North America11 %

Germany23 %

Europe(excl. Germany)29 %

SouthAmerica

2%

Rest of World14 %

Sales 2004/05 by region Employees (Sep. 30, 2005) by region

Asia21 %

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Competencies

Industrial plants High-tech components

Overarchingcompetencies

Plant Technology Marine Systems Mechanical Engineering(incl. Transrapid)

ThyssenKrupp TechnologiesSales: approx. €6 billion Employees: 27,700

€2.1 billion €1.7 billion€2.2 billion

Shipbuilding

Project management, system integration

Engineering

Material processing (esp. steel)

Technical services (consulting, training, maintenance, repair, refit)

Process technology

BusinessUnits

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Markets

Plant Technology Marine Systems Mechanical Engineering(incl. Transrapid)

€2.1 billion €1.7 billion€2.2 billion


EnergyFuel cell technology

EnergyAntifriction bearings for wind energy systems

EnergyMining systems for coal/oil sands, coke plants,

refinery/gas technology, tank farms

MarineFrigates, submarines

MarineMarine equipment

TransportationBelt conveyors, port handling facilities

TransportationContainer ships, yachts

TransportationTransrapid

Production FacilitiesFertilizer, polyester, vinyl plants

Production FacilitiesTransfer lines for engines and transmissions

ConstructionTracks and bearings for excavators and cranes

ConstructionCement plants, crushers/grinders, cable cranes

Markets

Technical ServicesConsulting, training, maintenance, repair, refit

Technical ServicesConsulting, training, maintenance, repair, refit

Technical ServicesConsulting, training, maintenance, repair, refit,

BusinessUnits

ConstructionDredgers

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Market Volumes and Main Peers

* only accessible market: “Marine”; to be added: mega-yachts and after-sales business


Plant Technology Marine Systems Mechanical Engineering

Market volume p.a.~ €10 billion

Market volume p.a.~ €6 billion*

Market volume p.a.~ €4 billion

•Fertilizer Plants: Snamprogetti (I), Toyo Engineering (J)

•Petrochemical Plants: Tecnimont (I), Zimmer (D)

•Cement Plants: FLS (DK)

•Submarines: DCN (F)

•Surface vessels: DCN (F), Navantia, formerlyIzar (E), BAE (UK),Fincantieri (I), Vosper (UK)

•Mega-yachts: Lürssen (D)

•Bearings and rings: RKS (F), Forgital (I, F)

•Undercarriages: Passini (I), Japanese/Koreans

•Assembly plant: LSW (D), Comau (I)

•Ship components: Kemel (J), Brown Broth. (UK)

BusinessUnits

MarketVolume

MainPeers

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Product Portfolio (I): Plant Technology

ElectrolysisFertilizersOrganic chemistry/polymers

Pharmaceuticals

Gas technology

Coking plant technology

Refinery technologyPolyester

Foodstuffs Plastics Energy

Mobility Health

Steel

Textiles

Household goods

Cement

Construction

Minerals Mining and handling

Gold, copper, nickel Coal, ore

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Frigates/corvettes Submarines Mega-yachts

Container ships

RepairsSpecial ships

Corvettes (steel & carbon fiber-reinforced plastics)

Patrol boats (OPVs)

Naval support ships

Product Portfolio (II): Marine Systems

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Product Portfolio (III): Mechanical Engineering

Large-diameter antifriction bearings and rings

Track chains, idlers, sprockets, sprocket rims, rollers, undercarriage systems

Sterntube seals, stabilizers, sterntube bushes, steering gear, bearings, separators

Assembly systems for engines, transmissions, and axles/steerings as well as test systems

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Innovations (I): EnviNOx® Process

Reduction in greenhouse gases through almost complete elimination of harmful nitrogen oxides (NOx) and laughing gas (N2O)

Protected by patents and trademarks

First large-scale implementation completed in Linz, Austria (2003)

- > 90% reduction in NOx (since Nov. 04 >98%)

- > 98% reduction in N2O

- Reduction in N2O in the first year of operation:approx. 2400 t N2O = 750,000 t CO2

The operator won the Austrian “save the climate” award for the largest action by an individual company in Austria.

Inclusion in the BAT (Best Available Technique) reference document of the EU Commission for integrated environmental protection.

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Innovations (II): Air-independent Propulsion Systems

Increase in time submerged by a factorof 4 to 5, i.e., from a few days to several weeks

Differentiation from competitors

Significant market potential through focus on refitting of existing submarine fleets around the world

Closed-cycle diesel system (on-land test facility)

Fuel cells

Air-independent propulsion systems for non-nuclear submarines

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Innovations (III): New De-oiler

New International Maritime Organization (IMO) regulation for new ships from January 01, 2005Bilge water de-oilers < 15 ppm residual oil content

B+V Industrietechnik solution:Turbulo Mechanical Phase Breaker (TMPB)Bilge water de-oiler < 1 ppm residual oil content

Significant contribution to environmental protection in shipping

High demand exceeding all expectations

Often also refitting of existing container ships by shipping companies

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Acquisitions (I): Howaldtswerke-Deutsche Werft (HDW) in 2005

Overview Strategic Fit

Securing the long-lasting cooperation between the shipyards (B+V, Nordseewerke, and HDW) within a single legal entity instead of in a consortium

Strengthening in financial position through high potential of synergies and cash pooling

Creating a strong German marine shipyard as a starting position for expected European consolidation

Sales €1.4 billion

Workforce 6,600

Main fields of operation

•Naval ships•Yacht building•Merchant ships•Repairs

Companies/locations

•HDW, GmbH (Kiel, Germany)•Kockums AB, (Malmö and Karlskrona, Sweden)

•Hellenic Shipyards Co.(Skaramanga, Greece)

•HDW-Nobiskrug GmbH(Rendsburg, Germany)

•HDW Fuel Cell Systems(Kiel, Germany)

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Acquisitions (II): Atlas Elektronik in 2005/2006

Overview Strategic Fit

Securing mutual key business relations

Extending technology leadership in conventional submarines

Continuing consolidation in naval industry

Sales €0.3 billion

Workforce 1,750

Main fields of operation

•Command and control systems•Sonar systems•Autonomous and unmanned underwater vehicle systems

•Maritime Systems- Port & coastal surveillance systems- Underwater inspection & control systems

Partnershipwith EADS

(40 % share)

•Integration in an electronics group for successful development

•Joint, coordinated servicing of customers on the world market

•Consolidation of German maritime systems technology including maritime activities of EADS

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Sales in the Middle East and Egypt

Growth (I): Strong Position in the Middle East

Plant Technologyorders

Note: sales to customers in the region; sales growth p.a. = CAGR

Cement plantEgypt

Large-scale plants(examples)

PVC plantQatar

Cement plantSaudi Arabia

Fertilizer plantSaudi Arabia

orders currently under construction

already completed orders

03/04 09/10e

€500 m

€1,500 m

+20% p.a.

Continued operations, rounded

€1,100 m

04/05

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Growth (II): Expanding in Asia Pacific

Involvement in Asia Pacific(example: Rothe Erde)

Rothe Erde, Chinasince 2002~ 900 employees

Note: sales with customers in the region; sales growth p.a. = CAGR

Sales in Asia Pacific

Rothe Erde, Japansince 1968~ 100 employees

Rothe Erde, Indiain formation


€590 m

€1,000 m

+9% p.a.

03/04 09/10e04/05

€610 m

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Growth (III): Increase in Service Sales

€800 m

€1,900 m

Technologies service sales

Marine Systems


Plant Technology

Establish and expand contracting by operations centerExpand revamping/plant optimization activitiesEstablish and expand spare parts maintenance and training center businessComprehensive lifecycle support (longer-term maintenance and service agreements)

After-sales service (maintenance and repairs)Material packages for foreign customers

Increase after-sales-market:- Spare parts- Conversion, repairIntensify consulting and trainingNote: sales growth p.a. = CAGR


+15% p.a.

03/04 09/10e04/05

€1,000 m

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Disclaimer

In this presentation all figures are prepared in accordance with IFRS. Moreover the figures in the income statement refer to continuing operations unless otherwise stated.

Due to the conversion process figures included here should be seen as provisional as the IASB may still enact provisions that could be applied retroactively. The audit of the restated figures will be in conjunction with the audit of the full financial statements under IFRS for the fiscal year ending September 30, 2006.

This presentation contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond ThyssenKrupp’s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. ThyssenKrupp does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.

thyssenkrupp technologies strategic focus – leading-edge

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