stockholders, · 2020. 5. 20. · 2 stockholders, ladiesa ndgentlemen,...

22
Remarks by Dr.-Ing. Ekkehard D. Schulz Chairman of the Executive Board of ThyssenKrupp AG at the 12th General Stockholders’ Meeting on January 21, 2011 in the RuhrCongress Bochum Check against delivery

Upload: others

Post on 29-Sep-2020

4 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

Remarks�

by�

Dr.-Ing.�Ekkehard�D.�Schulz�

Chairman�of�the�Executive�Board�

of�ThyssenKrupp�AG�

at�the�

12th�General�Stockholders’�Meeting�

on�

January�21,�2011�

in�the�RuhrCongress�Bochum�

Check�against�delivery�

Page 2: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

2�

Stockholders,�

Ladies�and�Gentlemen,�

On�behalf� of�my�colleagues� I�would� like� to�welcome�you� to� the�12th�General�Stockholders’�

Meeting� of� ThyssenKrupp� AG.� I� am� sure� you� are� expecting� good� figures� and� a� positive�

outlook.�That�is�your�perfect�right.�And�I�can�tell�you�now:�I�will�not�disappoint�you.�

Before� that,� however,� allow�me� to� say�a� few�personal�words.�A�meeting� like� this� is�not� the�

right�stage�for�grand�feelings.�Steel�managers,�especially�engineers,�are�not�exactly�known�for�

emotional�displays.�

Despite� this,� I�would� like� to�share�a�few�brief�personal� thoughts.�This�General�Stockholders’�

Meeting� is� the�twelfth�at�which� I�have�reported�to�you.� It� is�also�my� last�as�Chairman�of� the�

Executive�Board�of�ThyssenKrupp�AG.��

Today�you�see�before�you�an�Executive�Board�Chairman��

• who�is�proud�of�your�Company’s�achievements,�because�the�merger�of�Thyssen�and�

Krupp�is�a�success�story�

• who�is�especially�proud�of�the�employees�who�made�it�all�possible��

• who�is�feeling�slightly�sentimental,�because�a�great�chapter�of�his�life�is�coming�to�an�

end�

• who� is� looking�to� the�future�with�optimism,�because�ThyssenKrupp� is�well�positioned�

and�much�more�than�just�a�global�technology�group.�

ThyssenKrupp�is�a�company�that�unites�history�and�future�like�almost�no�other.�Tradition�and�

progress� are� part� of� our� corporate� culture.� Together,� we� shape,� maintain� and� refine� this�

culture�every�day.�For�that�I�would�like�to�express�my�thanks�to�each�of�the�almost�180,000�

ThyssenKrupp�employees�around�the�world.�

Ladies�and�Gentlemen,�

It� is� always� possible� to� find� points� to� criticize,� but� one� thing’s� for� sure:� There� can� be� no�

complaints� that� the� past� twelve� years� were� too� quiet.� Even� in� difficult� times� we� have�

continuously�evolved�our�Company�to�make�it�fit�for�the�future.��

Page 3: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

3�

Today�we�are�in�good�economic�shape.�But�let’s�be�honest,�one�or�two�years�ago�we�were�not�

quite�so�sure�what�the�future�would�bring.��

However�anyone�who�–�like�me�–�lived�through�the�steel�crisis� in�the�1980s�and�1990s�and�

worked� to� resolve� it�also�knew:�Things�will�of� course�get�better�again� if�we� just�stick� to�our�

values.�

What�are�our�values?�

ThyssenKrupp� stands� for� entrepreneurship.� For� dependability� and� honesty� towards�

employees,�customers,�suppliers�and�shareholders.�For�responsibility�towards�society�and�the�

environment.�And�for�sustainability�in�its�strategic�and�business�decisions.��

It� is� these�ethical� foundations� that�give�meaning� to�our�business�activities�and�ensure� their�

lasting� success.� For�me� it� has�always�been� important� to�maintain,�strengthen�and�broaden�

these�foundations�and�live�out�these�values.��

More�than�ever,� I�am�convinced�that� it� is�because�of� these�values�that� today�we�are�able� to�

say:�We�have�achieved�the�turnaround.��

A�year�ago�I�had�to�report�to�you�on�the�most�difficult�fiscal�year�in�ThyssenKrupp’s�history.�

The�effects�of�the�global�economic�and�financial�crisis�hit�our�Company�hard.��

ThyssenKrupp�has�overcome�the�crisis�by�its�own�efforts.��

What’s�more:�Despite� the�crisis,�we�continued�the� international�expansion�of� the�Group�with�

our�major� projects� in� Brazil� and� the� USA,� as� we� believe� the� new� plants� to� be� strategically�

absolutely�right.��

The� measures� we� introduced� to� enhance� efficiency� and� optimize� our� portfolio� and� our�

structure�were� successful.� In� fiscal� 2008/2009�we� already� achieved� sustainable� savings� of�

around�€0.8�billion.�In�the�past�fiscal�year�we�improved�this�figure�to�around�€1.5�billion.��

Page 4: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

4�

ThyssenKrupp� has� emerged� from� the� crisis� stronger� and� is� back� on� success� track.� This� is�

clearly� reflected� in� our� key� financials� for� fiscal� 2009/2010.� Order� intake,� sales� and� in�

particular�earnings�increased�significantly.��

The�key�figures�of�fiscal�2009/2010�read�as�follows:�

• Order�intake�climbed�year-on-year�by�15�percent�to�€41.3�billion.�With�the�exception�

of� Marine� Systems� all� business� areas� contributed� to� this� growth.� Demand� for� flat�

carbon�and�stainless�steel�and�automotive�and�industrial�components�was�particularly�

strong.��

• The�Group’s�sales�improved�by�5�percent�to�€42.6�billion.�Sales�of�flat-rolled�carbon�

steel,� stainless� steel� and� automotive� and� industrial� components� showed� in� part�

vigorous� growth.� Sales� declined� at� the� shipyards� and� for� billing� reasons� in� plant�

construction;�sales�of�materials�services,�elevators�and�escalators�were�very�stable.�

• In� 2009/2010� ThyssenKrupp� achieved� earnings� before� taxes� of� over��

€1.1� billion.� Year-on-year,� EBT� therefore� improved� by� €3.5� billion.� This� includes�

positive� nonrecurring� items� of� €105�million:� income� came� from� the� disposal� of� our�

Industrial�Services�units�and�the�deconsolidation�of�Hellenic�Shipyards;�this�was�partly�

offset�by�restructuring�expense�in�the�Components�Technology�business�area.�

• The�Group’s�adjusted�earnings�before� taxes�were�around�€1�billion,�up�€2.1�billion�

from� the�prior� year� loss�of�€1.1�billion.�Adjusted�EBT�was� therefore�higher� than�our�

raised�August�forecast.�

• Net�income�was�€927�million,�compared�with�a�net�loss�of�€1.9�billion�a�year�earlier.�

This�represents�an�improvement�of�€2.8�billion.�Earnings�per�share�were�€1.77.�

• On�September� 30,� 2010�net� financial� debt� at� around� €3.8� billion�was� €1.7� billion�

higher�than�a�year�earlier,�due�mainly�to�the�investment�in�the�major�projects�in�Brazil�

and�the�USA.��

• We� want� you� –� our� stockholders� –� to� benefit� appropriately� from� this� positive�

performance.� The� Executive� Board� and� Supervisory� Board� therefore� propose� the�

Page 5: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

5�

payment�of�a�dividend�of�€0.45�per�share�for�the�2009/2010�fiscal�year,�an�increase�

on� the� prior-year� figure� of� €0.15.� This� means� we� will� be� distributing� around�

€209�million� of� the� unappropriated� net� income�of� ThyssenKrupp�AG.� In� addition�we�

are� proposing� to� transfer� around� €184�million� of� the� unappropriated� net� income� to�

retained�earnings.�Together�with�the�reserves�already�resolved�by�the�Executive�Board�

we� are� creating� €584�million� additional� reserves,� which� will� further� improve� the�

balance�sheet�ratios.�

• On�September�30,�ThyssenKrupp�had�177,346�employees�worldwide�–�10,149�or�5�

percent� fewer� than� at� the� end� of� fiscal� 2008/2009.� This� is� mainly� attributable� to�

disposals.�Over� the�course�of� the�year�we�were�able� to�reduce�short-time�working� in�

the�Group�almost�completely.��

Ladies�and�Gentlemen,�

The� figures� show� that� over� the� course� of� the� past� fiscal� year� ThyssenKrupp� resumed� its�

upward�trend.�In�the�new�fiscal�year�we�expect�further�sales�and�earnings�growth�and�another�

significant�increase�in�earnings.�I�will�come�back�to�this�later�in�my�outlook.�I�am�pleased�to�be�

able�to�tell�you�that�we�have�made�a�good�start�to�the�new�fiscal�year:�Based�on�provisional�

figures�we�expect�order� intake�and�sales� in� the� first� quarter�of� the� current� fiscal� year� to�be�

above�€11�billion.�Despite�higher�startup�losses�for�our�new�steel�plants�we�expect�adjusted�

earnings� before� interest� and� taxes� to� come� in� level� with� the� prior� year� DQ1� 2009/2010:�

€277�millionF.� With� the� exception� of� Steel� Americas,� all� business� areas� made� a� positive�

contribution� to� this� performance.� The� negative� earnings� contribution� of� the� Steel� Americas�

business�area�in�the�first�quarter�of�the�current�fiscal�year�will�be�roughly�€300�million�higher�

than�in�the�comparative�prior-year�quarter�DQ1�2009/2010:�€D71F�millionF�due�to�startup�costs�

and�depreciation.�The�Group’s�earnings�show�that�the�structural�earning�power�of�the�Group�

has� improved� considerably.� This� shows� that� we� are� on� track� to� meet� our� ambitious�

expectations�for�the�full�year.�This�is�taking�into�account�the�fact�that�the�startup�losses�for�the�

new�steel�plants�will�have�a�significant�impact.�In�addition,�we�aim�to�achieve�break-even�free�

cash� flow� by� the� end� of� the� current� fiscal� year� –� as� I� already� mentioned� at� the� last�

Stockholders’� Meeting.� Achieving� our� targets� will� require� further� substantial� efforts� in� the�

future,�but�the�first�impressions�of�the�current�fiscal�year�confirm�that�we�are�returning�to�our�

long-term�growth�path.��

Page 6: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

6�

Today�I�am�reporting�to�you�for�the�first�time�in�the�new�Group�structure�adopted�on�October�

1,�2009.�In�this�new�structure,�our�Group�is�organized�in�eight�business�areas�based�on�the�

principle�of�making�strategic�management�more�centralized�and�operating�management�more�

decentralized.�

The�direct�links�between�our�business�areas�and�the�Group’s�headquarters�provide�for�shorter�

decision-making� paths.� The� capital� market� has� also� responded� positively� to� our� new�

organizational�structure�and�appreciates�the�improved�transparency�of�our�reporting.��

Positive�stock�performance�

Ladies�and�Gentlemen,�

Your� stock�has�profited� from� the� strategic�and�operational�measures� introduced� to� improve�

our�earnings�situation.�In�fiscal�2009/2010�the�share�price�was�also�positively� influenced�by�

the�general�upward�market�trend.�At�the�end�of� the�fiscal�year�on�September�30,�2010,�our�

share� price� stood� at� €23.92.�Between� then� and� the� end�of� the� year� it�made� further� gains,�

closing� on� December� 30,� 2010� at� €30.99.� In� the� course� of� the� calendar� year,� the� share�

gained�17�percent,�just�outperforming�the�DAX,�which�rose�by�16�percent.��

And�along�with�the�share�price�itself,�general�interest�in�ThyssenKrupp’s�stock�also�rose.�The�

number� of� analysts� covering� ThyssenKrupp� and�making� investment� recommendations� has�

increased�significantly�in�the�past�two�years.�The�same�is�true�of�the�number�of�professional�

investors� buying� our� shares.� At� the� end� of� the� fiscal� year,�more� than� 80� percent� of� these�

analysts�rated�ThyssenKrupp’s�stock�as�a�‘buy’.�They�see�substantial�potential�in�the�initiated�

structural�improvements�and�the�new�steel�mills�in�Brazil�and�the�USA.��

Allow�me�to�take�a�look�at�our�three�major�projects�in�the�past�fiscal�year:�Brazil,�Alabama�and�

our�new�headquarters�in�Essen.�

Page 7: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

7�

Major�projects�in�Brazil�and�the�USA�

Ladies�and�Gentlemen,�

The� two� major� investment� projects� in� Brazil� and� the� USA� are� the� cornerstones� of� our�

transatlantic�growth�strategy� in�Steel�and�Stainless:�We�are� focused�on�profitable�growth� in�

key�international�markets�of�the�future.�Global�crude�steel�production�will�reach�a�new�record�

level� of� around� 1.4� billion�metric� tons� this� year.� Around� 200� to� 250�million� tons� of� this� is�

premium�flat�carbon�steel.�ThyssenKrupp�is�focused�on�this�segment,�it�is�where�our�strength�

lies.�This�strength�is�based�on�three�factors:�Quality,�innovation�and�cost�leadership.�

The� flat� steel�market� in� the�NAFTA� region�has�a� large,�steadily�growing�premium�segment.�

ThyssenKrupp�currently� has�only�a� very� small� presence� in� this� segment.�Our�goal� is� to� tap�

more�into�this�market�and�gain�a�market�share�of�more�than�5�percent�in�the�mid-term.�Good�

opportunities�also�exist�in�the�NAFTA�region�to�further�expand�our�share�of�the�stainless�steel�

flat�market�from�our�current�roughly�16�percent.�

We� are� convinced� we� will� succeed:� ThyssenKrupp� has� a� good� reputation� throughout� the�

world.�Customers�we�know�from�Europe�and�who�already�purchase�steel�from�us�already�have�

production� operations� in� the� USA,� especially� in� the� southeast.� They� include� German� auto�

manufacturers� such� as� Mercedes,� BMW� and� VW.� In� all� the� models� produced� by� these�

premium�manufacturers�all�over�the�world,�there’s�a�good�chunk�of�ThyssenKrupp.��

ThyssenKrupp�stands�for�quality,�but�also�for�innovativeness.�We�develop�new�materials�and�

work� together�with�our� customers�on�solutions�which�allow� them� to�make� technology� leaps�

and� reduce� costs� in� their� products� and� processes.� Our� innovative� products�make� a�major�

contribution�to�countering�the�growing�shortage�of�raw�materials�through�the�efficient�use�of�

resources.�

Ladies�and�Gentlemen,�

In�December�I�opened�our�plant�in�the�US�state�of�Alabama.�“Big�wheels�keep�on�turning”�–�

so�goes� the� opening� line�of� “Sweet�Home�Alabama”,� the� state’s�unofficial� anthem.�That� is�

also� true� of� our� Group:� With� the� startup� of� the� plants� in� Alabama� and� the� steel� mill�

inaugurated�in�Brazil�in�the�summer,�ThyssenKrupp�is�entering�a�new�dimension�of�its�history.�

Page 8: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

8�

In� Sepetiba� Bay� in� the� Brazilian� state� of� Rio� de� Janeiro,� the� first� blast� furnace� has� been�

producing�around�6,000�metric�tons�of�hot�metal�per�day�since�the�end�of�July.�The�second�

blast�furnace�with�the�same�capacity�was�fired�up�in�mid-December.��

Earlier�on�I�spoke�about�responsibility�towards�society�and�the�environment.�In�all�its�activities,�

including� the� new� plants,� ThyssenKrupp� always� pursues� very� high� standards� for�

environmental�protection.�That�applies�worldwide�–�whether�it’s�in�China,�America�or�Europe.�

In�terms�of�quality�and�technical�equipment,�our�plants�are�regarded�as�benchmarks.�That’s�

how�ThyssenKrupp�built�up�its�good�reputation�around�the�world.�

During�operation�and�in�particular�during�startup�of�a�steel�plant,�emissions�are�unavoidable.�

That�has�also�been�the�case�in�Brazil.�Steel�plant�emissions�do�not�pose�any�risks�to�health.�

Graphite�dust,�such�as�we�have�had�in�Brazil,�is�a�nuisance�but�not�a�health�hazard.�We�invest�

a�great�deal�of�money�to�keep�dust�emissions�as�low�as�possible.�For�example,�a�third�of�the�

€250�million�invested�in�blast�furnace�8�in�Duisburg�was�for�pollution�control�measures.�The�

Düsseldorf� district� government� has� confirmed� that� we� collect� almost� 100� percent� of� dust�

emissions.�And�we�do�just�the�same�in�Brazil.�ThyssenKrupp�CSA�meets�all�the�requirements�

there.��

Where�we�fell�down�was�in�neglecting�to�warn�our�neighbors�about�this�nuisance�in�the�startup�

phase�of� the�blast� furnace�and�melt� shop.�For� this� I� apologize.�We�want� to�maintain�good,�

long-term� relations� with� our� neighbors� –� as� we� do� with� our� neighbors� at� all� our� other�

locations.�We�attach�great�importance�to�this.�That’s�why�we�have�committed�to�make�further�

investments�to�support�infrastructure�development�in�the�region.�

Our�new�integrated�iron�and�steel�mill�near�Rio�de�Janeiro�is�the�biggest�industrial�investment�

in� Brazil� in� recent� times� and� ThyssenKrupp’s� biggest� ever� project.� The� plant,� which� we�

opened�in�June�together�with�President�Lula,�is�of�central�importance�to�our�growth�strategy�

for�premium�carbon�flat�steel:�

Following�completion�of�the�ramp-up�and�optimization�phase�it�will�produce�around�five�million�

tons� of� slabs� a� year� for� our� processing� plants� in� Alabama� and� in� Germany� –� in� excellent�

quality�and�at�low�cost.�The�reasons�for�this�are�obvious:�the�direct�supply�of�iron�ore,�our�own�

power�supply,�optimized�logistics,�and�state-of-the-art�equipment.��

Page 9: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

9�

The� first� slab� in� Brazil� was� produced� in� early� September,� and� at� the� end� of� October� a�

shipment�of�10,000�tons�was�unloaded�in�Duisburg.�The�first�slabs�from�Brazil�have�now�also�

reached� Alabama.� Already,� their� quality� is� so� good� that� we� can� supply� Alabama� directly.�

Nevertheless� our� aim� remains� to� create� the� integrated� production� network� as� quickly� as�

possible.�This�will�reduce�our�costs.�Despite�the�considerable�delays�and�the�quality�problems�

with�the�coke�plant,�we�are�now�making�very�good�progress.�

Alabama,� too,�has�proven� to�be�an�excellent� location:�Starting�materials�are� supplied� cost-

efficiently� to� the� new� plant� via� the� port� of�Mobile.� A� large� proportion� of� our� customers� are�

based�in�the�southeastern�USA.�We�have�found�first-rate�employees�there.�But�above�all,�the�

government,� business� associations� and� the� people� there� have� given� us� great� support.� It�

would�be�nice�to�experience�so�much�enthusiasm�in�Germany.�

The�USA�is�ThyssenKrupp’s�most�important�market�after�Germany.�At�over�400�locations�70�

Group� companies� employ� more� than� 17,000� people� and� generate� sales� of� 6.7�billion�US�

dollars;� that’s�an�eighth�of� the�Group’s� total�sales.� In� the�whole�NAFTA�region,�sales� in� the�

past� fiscal� year� were� 8.7�billion�US� dollars.� ThyssenKrupp� employs� almost� 22,800� people�

there.�

The�importance�of�the�USA�will�increase�further.�The�foundation�stone�for�this�has�been�laid�in�

Calvert.� ThyssenKrupp�will� invest� 5�billion�US�dollars� in� the� overall� plant� complex,� including�

3.6�billion�in�carbon�and�1.4�billion�in�stainless.�Ultimately�we�will�employ�2,700�people�there,�

and�create�many�times�that�number�of�indirect�jobs.�

From�Brazil,� around� three�million� tons� of� steel�will� be� shipped� to�Alabama�and�around� two�

million�tons�to�ThyssenKrupp�processing�plants�in�Germany.�This�means�that�our�investments�

in�North�and�South�America�will�also�benefit�our�locations�in�Germany�and�secure�jobs�here.�

Ladies�and�Gentlemen,�

Steel�will�remain�the�most�important�industrial�material�in�the�future.�The�global�challenges�of�

mobility,� energy� and� resource� efficiency� can� only� be� met� with� steel.� That’s� why� the�

investments�in�our�plants�in�Brazil�and�the�USA�are�true�investments�in�the�future.��

Page 10: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

10�

The�ThyssenKrupp�Quarter�–�a�historic�location�

But�we�have�also�invested�in�Germany,�and�in�doing�so�combined�the�past�and�the�future.�In�

the� middle� of� last� year� our� company� returned� to� a� historic� location.� With� the� new�

ThyssenKrupp�Quarter� in�Essen�we�have�concentrated�the�Group’s�administrative�centers� in�

Essen�and�Duisburg.��

With�the�centralization�in�Essen�and�thanks�to�the�Quarter’s�new�space�management�concept,�

we�have�optimized�our� total� office� space.�By�giving�up� inefficient� former� sites�and�selling�a�

real� estate� package� in� 2008� –� including� the�Dreischeibenhaus� building� in� Düsseldorf� –� the�

construction�of�the�Quarter�was�virtually�cash-neutral.�

At�the�same�time,�a�new�architectural�landmark�has�been�created�in�Essen.�Our�Quarter�is�a�

clear�commitment� to�Germany,� to�North�Rhine-Westphalia�and�to� the�Ruhr.� It�stands�for� the�

start� of� a� new� era,� for� transparency� and� modernity,� for� openness� and� togetherness,� for�

innovation�and�sustainability.�The�positive�impact�that�the�new�environment�is�having�on�work�

processes�can�be�sensed�in�many�areas.�

ThyssenKrupp� is� committed� to� the� principles� of� sustainable� business� management.� Even�

before� the�move� last� June� the� new� Quarter� received� several� awards� for� sustainability� and�

environmental� compatibility.� ThyssenKrupp� demonstrates� its� materials� and� technological�

expertise� in� the� Quarter.� The� numerous� examples� of� this� include� the� sunshade� system,�

consisting�of�400,000�stainless� steel� slats,�and� the�TWIN�elevators,� each�of�which�has� two�

cabs�traveling�independently,�one�on�top�of�the�other,�in�one�shaft.�

At�the�same�time,�the�Quarter�is�already�having�a�signaling�effect,�from�which�Essen�and�the�

region� are� benefiting.� During� our� Quarter� Days� last� September,� an� opening� celebration� for�

employees�and�neighbors,�40,000�people�came�to�visit�on�one�weekend�–�prime�evidence�of�

how�well�the�campus�has�already�become�part�of�the�life�of�the�region.�

Page 11: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

11�

Performance�of�the�business�areas�

Ladies�and�Gentlemen,�

Let�me�now�turn�to�the�performance�of�the�business�areas:�

With� steel� industry� activity� firmer,� the� order� situation� of� the� Steel� Europe� business� area�

improved.� Sales� increased� by� 13�percent� to� €10.8�billion� due� to� higher� shipments.� Steel�

Europe�generated�a�pre-tax�profit�of�€639�million.�The�Steel�Americas�business�area�made�

a�pre-tax�loss�of�€320�million.�Key�factors�in�this�were�the�startup�costs�of�our�major�projects.�

The� Stainless� Global� business� area� increased� its� sales� year-on-year� by� 32� percent� to�

€5.9�billion.�It�improved�its�earnings�before�taxes�significantly�by�€805�million�but�still�posted�

a� loss� of� €121�million.� Stainless� Global� is� currently� working� on� a� comprehensive� forward�

strategy�in�the�NAFTA�region�and�on�developing�and�optimizing�its�locations�in�Europe.�Sales�

of� the�Materials� Services� business� area�were� almost� unchanged� from� the� prior� year� at�

€12.8�billion,� even� though� ThyssenKrupp� Industrieservice� and� ThyssenKrupp� Safway� were�

sold� in� the� 1st� quarter� and� are� included� in� the� figures� for� only� two� and� three� months,�

respectively.�Earnings�before�taxes�were�€411�million.�The�disposal�process�for�the�Industrial�

Services�business�is�being�continued:�The�last�remaining�unit�–�the�profitable�ThyssenKrupp�

Xervon�–�is�up�for�sale.��

The�Elevator�Technology�business�area�performed�well�in�a�still�difficult�market�environment�

in� 2009/2010.�Despite� a� 2� percent� decrease� in� sales� to� €5.2�billion,� earnings�before� taxes�

were�up�6�percent�from�last�year’s�record�performance�to�€602�million.�Elevator�Technology�

continuously�and�successfully�expanded�its�service�and�modernization�businesses.�In�a�tighter�

competitive� environment� in� some� of� its� markets� the� Plant� Technology� business� area�

achieved�sales�of�€3.9�billion�in�2009/2010�–�12�percent�down�from�the�prior�year�for�billing�

reasons.�However,�high�orders�in�hand�continue�to�secure�more�than�a�year’s�sales,�giving�us�

planning� certainty.� Earnings� before� taxes� reached� a� record� €308�million.� The�Components�

Technology� business� area� also� recorded� a� pleasing� performance.� Sales� increased� by� 24�

percent�to�€5.7�billion�and�earnings�before�taxes�rose�to�€220�million.�Improved�demand�and�

rigorous� restructuring�and�cost-reduction�programs�played�a�part� in� this.� In�an�unfavorable�

market�environment,�sales�of�the�Marine�Systems�business�area�decreased�by�24�percent�

to�€1.2�billion.�Earnings�before� taxes� improved�year-on-year�by�€592�million� to�€38�million,�

mainly� due� to� the� disposal� of� Hellenic� Shipyards� in� Greece.� The� restructuring� of� Marine�

Page 12: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

12�

Systems� was� successfully� continued,� and� further� steps� will� follow.� Marine� Systems� will�

concentrate�in�the�future�on�naval�shipbuilding�and�in�particular�submarine�construction.��

ThyssenKrupp�continued�its�portfolio�management�in�the�past�fiscal�year,�further�focusing�its�

core�business�through�several�transactions.�Since�the�merger�of�Thyssen�and�Krupp�in�1999�

we�have�disposed�of�companies�with�sales�of�€11�billion�and�acquired�companies�with�sales�

of�€8.8�billion.�The�acquisitions�and�disposals�were�spread�deliberately�and,�ultimately,�evenly�

between� the� Group’s� materials� and� technology� businesses.� The� focus� at� all� times� was� to�

create�sustainable�value�for�the�Group�and�its�stockholders.�Portfolio�optimization�will�remain�

an�important�management�task�in�the�future.�At�the�same�time�the�Group�will�exploit�strategic�

growth�opportunities�through�acquisitions.�

Back�in�2006�the�Supervisory�Board�of�ThyssenKrupp�AG�approved�a�multi-year� investment�

program� to� strengthen� and� develop� both� the� materials� and� technology� businesses.� For�

strategic� reasons� we� decided� to� start� with� the� investments� in� our� new� steel� plants.� The�

economic� crisis� in� 2008/2009� slowed� our� further� projects.� In� the� meantime,� however,� the�

targeted� investments� made� in� the� technology� business� show� that� we� are� working� hard� to�

maintain� the�balance�of�our�portfolio.�Examples�of� this� include� the�growth�of�Rothe�Erde� in�

China,�the�new�Uhde�location�in�India,�and�the�recently�approved�investments�in�the�Forging�

Group.�In�addition,�the�Elevator�Technology�business�area�has�begun�building�a�new�elevator�

factory�in�Spain.�

Strengthening�innovation�

Ladies�and�Gentlemen,��

Sustainable�growth�requires�permanent� innovation.�New�products�and�processes�are�key� to�

the� future� of� an� integrated� technology� and�materials� group� like� ThyssenKrupp.� Around� the�

world,�some�3,500�highly�trained�and�motivated�engineers,�technicians�and�scientists�give�us�

outstanding�innovation�capabilities.��

To�systematically�strengthen�these�innovation�capabilities�we�have�set�up�the�ThyssenKrupp�

House�of�Innovation,�a�virtual�platform�to�support�our�development�work.��

Page 13: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

13�

This�includes�constantly�evolving�our�technology�strategy�and�identifying�new�areas�of�interest�

for�the�Group�–�from�materials�and�energy�to�environment,�resource�efficiency�and�mobility.�

Connecting�experts�and�expanding�our�partnerships�with�universities,�research�institutes�and�

other� companies� is� the� second� virtual� building�block.�We� foster� a� culture� of� innovation,� for�

example� by� providing� engineers� and� developers� with� the� creative� latitude� they� need.� And�

finally� the� platform� allows� us� to� constantly� improve� our� innovation� management� with�

corresponding�best-practice�methods�and�processes.��

As�the�result�of�all� this,�our�research�and�development�people�again�came�up�with� forward-

looking�new�products�and�technologies�this�year.�The�ThyssenKrupp�Innovation�Contest�was�

won�by�the�cross-Group�project�“InCar”,�our�solution�kit�for�the�auto�industry.�InCar�also�came�

second� in� the� “ÖkoGlobe”� environmental� awards.� Our� experts� were� equally� creative� in� the�

development� of� a� carbon-fiber� reinforced� and� acoustically� optimized� propeller� for� our�

submarines� at� HDW� and� with� a� new� economically� and� ecologically� optimized� coal� barge�

unloading�system�at�our�subsidiary�ThyssenKrupp�Fördertechnik.�

Naturally�we�are�also� involved� in�new�fields�of� technology,�such�as�“electric�mobility”.�After�

all,�the�German�government�has�set�the�target�of�making�Germany�a�lead�market�for�electric�

mobility� with� 1�million� electric� vehicles� on� German� roads� by� the� year� 2020.� These� few�

examples� show� that� ThyssenKrupp� possesses� outstanding� capabilities� that� we� are�

continuously�putting�to�use�in�existing�and�new�products.�

Ladies�and�Gentlemen,�

Innovations� are� only� as� good� as� the� people� who� develop� them.� It’s� our� employees� and�

managers�who�shape�the�success�of�ThyssenKrupp�with�their�ideas�and�initiatives.�To�ensure�

that� we� continue� to� have� the� best� brains� for� this� in� the� future,� we� intensively� train� young�

people,�advertise�for�young�talent�at�universities,�and�develop�the�skills�of�our�employees.��

As�an�engineer� I�am�particularly�keen� to�get�more�young�people� interested� in�mathematics,�

information� technology,� science� and� engineering� subjects,� especially� in� view� of� the� glaring�

shortage�of�engineers,�scientists�and�skilled�workers.�After�all,�there�are�lots�of�good�reasons�

for�becoming�an�engineer,�as�you�can�read�in�a�recently�published�book.�Together�we�must�

ensure� that� more� young� people� choose� to� pursue� a� technical� occupation� or� a� science� or�

engineering�degree.��

Page 14: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

14�

“Discovering�Future�Technology”�initiative�

ThyssenKrupp�is�raising�enthusiasm�for�technology�with�the�“Discovering�Future�Technology”�

initiative.�Launched�in�2004�in�association�with�over�120�academic,�community,�business�and�

media� partners,� the� initiative� has� already� reached� hundreds� of� thousands� of�mainly� young�

people�–�the�thought�leaders�and�engineers�of�tomorrow.��

Among� the� many� partners� from� day� one� are� the� Germany� Ministry� for� Education� and�

Research,�Deutsches�Museum�Bonn,�Technische�Universität�Berlin,�RWTH�University�Aachen,�

the� foundation�Jugend� forscht�as�well�as�various� institutes�of� the�Fraunhofer�Society.�Many�

businesses� also� support� the� initiative,� including� Carl� Zeiss,� Daimler,� Bosch� and� Microsoft�

Deutschland.�We�thank�them�all�for�their�support.�

The�flagship�of�the�“Discovering�Future�Technology”�initiative�is�the�Ideas�Park�–�a�hands-on�

technology�exhibition�for�families,�children�and�young�people.�Over�540,000�visitors�attended�

the�admission-free�Ideas�Parks�in�Stuttgart�in�2008,�Hannover�in�2006�and�Gelsenkirchen�in�

2004.�More�than�500�engineers�and�scientists,�apprentices�and�students�explain�their� ideas�

and�show�how�technology�works.�The�next�Ideas�Park�will�take�place�in�Essen�in�2012.�

In� addition,� for� several� decades� we� have� been� supporting� “Jugend� forscht”,� Germany’s�

biggest�and�most�successful�competition�for�young�scientists.�In�May�2010�the�national�finals�

of�the�competition,�for�which�179�young�people�and�107�projects�had�qualified,�were�staged�

in�Essen�by�ThyssenKrupp�in�association�with�the�foundation�Jugend�forscht�e.V.��

Ladies�and�Gentlemen,�

Sustainable�success�for�ThyssenKrupp�is�only�possible�in�an�intact,�viable�society.�This�is�why�

ThyssenKrupp� supports� a� large� number� of� projects� and� initiatives� in� the� social� and�

humanitarian�fields.�They�include�the�project�Chance,�which�has�been�running�successfully�for�

many� years.� The� project� supports� youngsters� who� due� to� lack� of� qualifications� have� no�

chance� of� obtaining� an� apprenticeship.� In� a� nine-month� program� we� prepare� them� for�

vocational�training�in�the�industrial-technical�sector�to�teach�them�the�skills�they�need�to�start�

an�apprenticeship.�Most�of�the�youngsters�do�in�fact�go�on�to�receive�an�apprenticeship�place�

either�at�ThyssenKrupp�or�another�company.�

Page 15: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

15�

We� provide� help� when� natural� disasters� destroy� whole� towns� or� regions,� as� in� Haiti� or�

Pakistan.� Our� employees� donated� €370,000� for� Haiti� and� €240,000� for� Pakistan.�

ThyssenKrupp�matched�each�of�these�amounts.�

For�us,�sustainable�development�also� includes�maintaining�diverse�partnerships�in� the�fields�

of�arts�and�culture.�We�want�to�help�provide�attractive�offerings�in�the�communities�in�which�

our�major�operations�are�based.�For�example�we�support�the�Folkwang�Museum�in�Essen�and�

the�Lehmbruck�Museum�in�Duisburg.�We�provide�sponsorship�for�the�Ruhr�Piano�Festival�and�

the�Duisburg�Philharmonic�Orchestra.� In�sport�we�help�fund�selected�competitions�and� local�

sports� clubs.�We�have� for�many� years� supported� the� International� Rowing�Regatta� and� the�

annual�Rhine-Ruhr�Marathon�in�Duisburg.�

Strengths�and�business�success�

Ladies�and�Gentlemen,��

For� me,� long-term� strategy� and� sustainable� business� success� are� key� criteria� in� business�

management.�Despite� the�crisis�we�stuck�to�our�goals�and�values�and�responded�quickly� to�

the� changed� operating� conditions.�Our� Group� is� back� on� its� long-term� growth� track.� In� the�

past�we�have�concentrated�on�four�strategic�action�areas,�which�will�also�be�important�in�the�

future:�

1.� New� markets:� Our� efforts� to� expand� the� Group� internationally� continue.� They� are�

currently�focused�on�our�major�carbon�and�stainless�steel�projects.�In�addition�we�are�

looking� to�grow�our�activities� in�dynamic�markets,�above�all� in�China�and� India.�The�

systematic� expansion� of� our� elevator� business� in� these� regions� is� a� successful�

example�of�this.�

2.� New� technologies�and�products:�As� the�main� focus�of� all�Group�activities�we�will� be�

strengthening�the�areas�of�innovation�and�technology,�as�they�form�an�important�basis�

for�ThyssenKrupp’s�future�success.�

Page 16: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

16�

3.� Portfolio� optimization:� In� the� future� the� Group� will� continue� to� optimize� its� portfolio�

through� targeted� divestments� and� make� acquisitions� to� utilize� opportunities� for�

strategic�growth.�

4.� Organizational� development:� The� new� Group� structure� and� the� consolidation� of�

administrative� functions�at� the�new�ThyssenKrupp�Quarter� in�Essen�has�significantly�

improved�internal�structures�and�processes.�In�the�future�we�will�continue�our�efforts�to�

improve�the�organization�of�the�Group�on�a�forward-looking�basis.�

Ladies�and�Gentlemen,�

The�German�economy�has�recovered� from�the�global�economic�crisis� faster�and�better� than�

other�industrialized�nations.�Booming�exports�have�accelerated�growth.�In�the�crisis,�Germany�

benefited�significantly�from�its�large�manufacturing�sector.�Companies�responded�intelligently�

by� cutting� capacities� and� introducing� short-time� working.� At� 25� percent,� the� share� of�

manufacturing� value-added� in� total� economic� output� is� much� higher� than� in� other�

industrialized�countries.�Just�a�few�years�ago�German�industry�was�being�called�old�economy.�

Today�the�German�model�of�a�strong�industrial�structure�with�large�corporations,�medium-size�

companies�and�small�craft�businesses�is�seen�throughout�the�world�as�a�model�for�the�future.��

The�global�economic�upturn�will�continue�in�2011.�However,�due�to�the�ending�of�numerous�

stimulus�programs�and�the�need�to�consolidate�government�budgets,�global�economic�growth�

in�2011�will�be�more�moderate�at�just�under�four�percent,�with�growth�in�Germany�of�over�two�

percent.�

In�view�of�the�latest�developments�on�the�raw�materials�markets�we�expect�continued�major�

uncertainties� for� German� and� European� industry� in� the� future.� Since� the� three� big� iron� ore�

producers�switched�their�contracts�with�steel�companies�from�annual�to�quarterly�deals�as�of�

April�1,�2010,�ore�prices�have�been�based�on�the�volatile�spot�market.��

German�industry�–�but�also�the�government�–�must�rise�to�these�new�challenges.�We�need�a�

European� raw� materials� strategy.� The� European� Commissioner� for� Industry,� Mr.� Tajani,� is�

already�supporting� this.�We�expect� to�see� the�decisive�breakthrough�at� international� level� in�

June�at�the�next�G20�summit�in�France.�

Page 17: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

17�

Germany�has�responded�to�the�changed�situation�in�raw�material�supplies.�The�establishment�

of�a�raw�materials�agency�is�aimed�at�increasing�transparency�on�the�markets�and�creating�an�

advisory�center�for�industry,�in�particular�for�small�and�medium-size�businesses.�That’s�a�step�

in�the�right�direction.�

The� decisions� of� the� German� government� and� the� EU� Commission� on� energy� and� climate�

policy�in�Europe�represent�a�further�risk.�For�ThyssenKrupp,�the�increase�in�eco-tax,�additional�

costs�due�to�the�Renewable�Energy�Act�and�the�direct�and�indirect�effects�of�emissions�trading�

will�add�up�to�annual�costs�in�the�region�of�€300�million�from�2015�–�a�huge�burden.�

So�far�it�has�not�been�possible�to�achieve�a�balance�between�climate�protection�and�industrial�

competitiveness.� We� are� prepared� to� be� measured� against� the� most� efficient� production�

plants� in� Europe� and� further� reduce� our� CO2� emissions.� But� no� company� in� the� world�

producing�steel�by�the�blast�furnace�route�can�meet�the�EU�Commission’s�benchmarks.�These�

are�significantly�below� the�emission� levels�of� the�world’s�best�steel�production� facilities�and�

cannot�be�met�with�the�technology�available.�Rules�of�this�kind�severely�impair�conditions�for�

industrial�companies�located�here.�In�the�short�and�medium�term�our�competitive�position�will�

deteriorate.�In�the�long�term�we�will�be�unable�to�plan�reliably�at�our�German�sites.�This�is�a�

case�of�politics�massively�compromising�competitiveness�and� therefore� jobs.�But�any�move�

that� weakens� Europe’s� industrial� core� jeopardizes� our� prosperity� and� that� of� future�

generations.�

Outlook�

Ladies�and�Gentlemen,�

In�fiscal�2010/2011�we�expect�a�further�10�to�15�percent�increase�in�ThyssenKrupp’s�sales;�in�

2009/2010�sales�reached�€42.6�billion.�Earnings�are�expected�to�grow�faster�than�sales.�This�

will�follow�from�further�operating�improvements�and�the�recovery�of�our�sales�markets,�which�

will� more� than� offset� the� negative� earnings� impact� from� the� startup� losses� in� the� Steel�

Americas�business�area.��

Page 18: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

18�

Adjusted� earnings� before� interest� and� taxes� DEBIT� adjusted� for� nonrecurring� itemsF� are�

forecast� to�be�around�€2�billion;� in�2009/2010�the� figure�was�€1.2�billion.�The�comparative�

2009/2010� figure�–� like� the�outlook� for�2010/2011�–� is�based�on� the�modified�definition�of�

EBIT.�

Ladies�and�Gentlemen,�

I�have�given�a�lot�of�thought�to�how�to�say�goodbye�in�just�a�few�words.�

As� you� know,� I� am� now� almost� 70� years� old� and� I’ve� spent� my� entire� working� life� at�

ThyssenKrupp.� I� studied�metallurgy� at� Clausthal� university� and� after� gaining�my� doctorate�

worked� in� various� areas� of� what� was� then� the� Thyssen� group.� Dr.� Cromme� has� already�

described�and�paid�tribute�to�my�career.�

From�the�earliest�steps�in�my�career�I’ve�been�an�engineer�to�the�core�–�and�not�just�within�the�

company.�In�my�capacity�as�honorary�professor�at�Clausthal�university�and�honorary�doctor�at�

the�universities�of�both�Berlin�and�Aachen,�I�am�dedicated�and�committed�to�fostering�young�

engineering� talent.� This� was� one� of� the� reasons� I� initiated� the� “Discovering� Future�

Technology”�initiative�in�2004.�

Being�both�engineer�and�Executive�Board�Chairman�of�ThyssenKrupp�–�that’s�not�just�a�job,�

it’s� a� vocation.� For� me� it’s� the� best� combination� in� the� world,� a� mixture� of� permanent�

inquisitiveness,�impatience�and�constant�dissatisfaction.�Like�all�engineers,�I�don’t�believe�in�

the�status�quo.�The�wheel�of�life�has�no�beginning�and�no�end,�only�intermediate�stages�which�

constantly�have�to�be�optimized�with�creativity�and�determination.�

Engineers�are�driven�by�a�permanent�urge�to�make�everything�better.�That’s�especially�true�of�

my� function� as� CEO� of� a�DAX� company.�My� profession� is�more� varied� than� any� other� and�

brings�people�together�from�all�over�the�world.�Whether�in�mobility,�communications�or�health�

–�scientists�and�engineers�have�always�been�responsible�for�the�big�leaps�in�innovation.�

While� the� indifference�with�which� the�engineering�profession� is� treated� today� is� regrettable,�

more� serious� is� the� lasting� damage� this� indifference� is� causing� to� our� basic� resources.�

Germany� –� a� country� poor� in� raw� materials� –� has� for� centuries� owed� its� prosperity� and�

progress�to�brilliant�thinkers:�Johannes�Gutenberg,�Wilhelm�Conrad�Röntgen,�Friedrich�Krupp,�

Page 19: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

19�

August�Thyssen�and�Carl�Benz�for�example.�They�developed�innovations�which�revolutionized�

or�even�created�entire�industries.��

To� secure� lasting� business� success� and� sustainable� growth� requires� products� and�

technologies�that�can�compete�in�the�global�marketplace.�Germany’s�industrial�base�and�the�

close�cooperation�between�major�companies,�government�research�institutes�and�universities�

offer�optimum�conditions�for�strengthening�and�maintaining�our�role�as�technology�leader.��

But� if� we� are� to� continue� to� translate� our� strengths� into� business� success� in� the� future,�

something� else� is� needed:� People� here� need� to� recognize� technological� progress� and� the�

willingness�to�change�as�the�basis�of�their�prosperity.�They�must�accept�that�the�opportunities�

far� outweigh� the� risks.�We� need� an� innovation-friendly� climate� in� our� country,� including� in�

particular�for�large-scale�projects!��

In�Germany�some�40,000�engineering�students�graduate�each�year,� throughout� the�EU� the�

number� is� around�350,000.�But� that’s� only� about� half� as�many� as� in�China� and� India.�We�

Germans�don’t�hold�a�monopoly�on� inventions;�anyone�can�be�creative.�The�only�resources�

we�have�in�Germany�are�our�ideas,�our�creativity,�our�inventiveness.�If�we�break�this�tradition,�

we�will�destroy�the�basis�of�our�own�existence�and�our�means�of�achieving�future�success.��

But�success�in�a�company�is�not�just�defined�by�financial�figures.�Above�all�it’s�the�people,�the�

employees,�who�form�the�basis�for�business�success�with�their�knowledge�and�commitment.��

A� boss� is� nothing� without� his� team.� He� is� responsible� for� his� employees.� He� leads� and�

motivates.� He� makes� people� proud� of� their� own� achievements.� Only� in� this� way� can�

employees�develop�initiative�and�take�on�responsibility�in�their�working�environment.�It�is�the�

job� of� every� employee� to� proactively� meet� the� needs� of� our� customers.� Because� it’s� the�

customers�who�pay�our�wages.��

And� that� brings�me� to� a� central� point:� Entrepreneurship� is� not� an� end� in� itself.�Motivation,�

communication,�transparency�–�that’s�all�very�well.�But�at�the�end�of�the�day�a�manager�can�

only� secure� jobs,� innovative� talent� and� investment� power� if� he� manages� the� business�

efficiently.�That’s�his�responsibility.�So�you�can�see�–�entrepreneurship�and�responsibility�are�

joined�together�by�an�inseparable�and�sometimes�painful�bond.�

Page 20: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

20�

As�CEO�it�was�my�responsibility�for�many�years�to�look�at�the�whole�company.�The�questions�

that�have�to�be�faced�are�always�the�same:��

• How�can�I�ensure�the�continuance�of�the�company?��

• What�prospects�does�the�future�hold?��

• Have�we�really�explored�all�our�options?��

These�questions�became�particularly�dramatic� for�me� in� the� steel� crisis�of� the�early�1990s.�

The� situation� at� the� time� was� clear:� Without� radical� capacity� cutbacks� the� entire� company�

would�very�soon�get�into�serious�difficulty.�There�was�no�way�out�that�would�serve�all�interests�

equally.�Everyone�was�aware� that� the�process�would�be�painful.�Of�particular� importance� to�

me�was�to�talk�plainly,�be�open�and�involve�everyone.��

That’s�the�only�way�to�generate�trust,�the�only�way�to�find�joint�solutions.��

In� this�difficult� time� for�all� concerned�we�cut� jobs�without� causing�hardship.�There�were�no�

compulsory� redundancies.� Older� employees� were� able� to� retire� in� security,� while� younger�

employees�who�had�maybe�just�started�a�family�kept�their�jobs.�

We�always�reached�solutions�like�this�in�agreement�with�the�works�councils�and�I�would�like�to�

express� my� thanks� to� them� for� their� cooperation.� Codetermination� has� always� been� of�

elementary� importance� to�me.�Mutual� respect� is� a� priceless� commodity� that� secures� social�

peace�–�in�the�company�and�throughout�our�society.��

Ladies�and�Gentlemen,�

As�you�can�see,�crises�come�and�go�but�a�value-based�corporate�culture�remains.�

Let� me� close� with� a� brief� look� back� at� ThyssenKrupp’s� almost� 12-year� history.� Since� the�

merger�in�1999�ThyssenKrupp�has�created�sustainable�value:��

• Up� to� the� start� of� the� economic� crisis� in� 2008,� our� sales� increased� by� 66� percent�

through�both�operating�business�and�portfolio�measures.�

• In�the�same�period�we�quintupled�our�earnings�and�

• increased�the�dividend�by�more�than�80�percent.��

Page 21: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

21�

How�much�ThyssenKrupp�has�changed� in� the�years�since� the�merger� is� also�shown�by� the�

employee�movements.�On�September�30,�1999�the�Group�had�around�185,000�employees.�

On� September� 30,� 2010� the� figure� was� just� over� 177,000.� Almost� one� in� two� jobs� in� the�

Group� has� changed,� through� restructurings,� organic� growth� and� portfolio� measures.� In�

addition,� the� proportion� of� employees� outside� Germany� has� risen� from� just� over� 40� to� 60�

percent.�

This� remarkable� upward� trend� was� brought� to� an� abrupt� halt� by� the� global� economic� and�

financial�crisis.�But�today,�only�a�year�after�the�crisis,�ThyssenKrupp�has�already�returned�to�

this�growth�track.��

ThyssenKrupp� stands� for� sustainable� management.� For� us� sustainable� success� means�

planning�and�acting�not�just�from�one�quarter�to�the�next,�but�over�the�long�term.�That’s�why�

our�customers�and�our�stockholders�have�placed�great�faith�in�us�for�many�years.�Of�that�I�am�

proud.��

Ladies�and�Gentlemen,�

As� you� know,� today� I� am� handing� over� responsibility� for� the� Group:� At� the� close� of� this�

General� Stockholders’� Meeting� Heinrich� Hiesinger,� who� joined� the� Executive� Board� of�

ThyssenKrupp�AG�as�Vice�Chairman�on�October�1,�2010,�will�take�over�as�Chairman.�

In�addition,�Jürgen�Claassen,�our� long-standing�Executive�Vice�President,�will�begin�work�as�

member�of�the�Executive�Board.�

I�wish�Mr.�Hiesinger�and�Mr.�Claassen�all�the�best�in�their�new�challenges.�I�know�that�both�of�

them�will�be�great�assets�to�ThyssenKrupp�AG�in�their�new�functions.�

I� congratulate� the� Executive� Board� of� ThyssenKrupp�AG� on� these� two� additions.� I� wish�my�

Executive� Board� colleagues� all� the� best� for� the� future� too.� I� thank� you� for� your� trust� and�

cooperation�over�the�years.�

I�would�also�like�to�use�this�opportunity�to�thank�you,�Mr.�Hippe,�for�your�work�in�difficult�times�

and�to�wish�you�all�the�best�in�your�new�professional�challenge.�

Page 22: Stockholders, · 2020. 5. 20. · 2 Stockholders, Ladiesa ndGentlemen, OnbehalfofmycolleaguesIwouldliketowelcome youtothe12thGeneralStockholders’ MeetingofThyssenKruppAG.Iamsureyouareexpec

22�

Before�expressing�my�gratitude�to�the�members�of�the�Supervisory�Board,�I�would�like�to�give�

a�personal�thank�you�to�you,�Mr.�Beitz:�The�trust�you�have�shown�me�down�the�years�was�the�

foundation� I� could� always� build� on� –� the� platform� to� keep� the� company� on� course� even� in�

stormy�weather.��

My� thanks�go� to�you� too,�Mr.�Cromme,� for� your� trust�and�cooperation�over� the�past� twelve�

years.�With�your�initiative�to�take�over�Hoesch�AG�in�1991�you�triggered�the�consolidation�of�

the�European�steel�industry.�At�the�same�time�you�paved�the�way�for�the�successful�merger,�

first� of� the� steel� divisions� of� Thyssen� and� Krupp� in� 1997� and� for� the� founding� of�

ThyssenKrupp�AG�two�years�later.�We�can�be�rightly�proud�of�what�we�achieved�together�for�

our�Company�in�this�time.�Thank�you�for�this.�

Ladies�and�Gentlemen,�I�would�like�to�thank�you�for�your�continued�interest�in�ThyssenKrupp.�

It�has�been�an�honor�and�a�great�pleasure�for�me�to�work�for�this�magnificent�company.��

I�bid�you�farewell�with�the�miners’�traditional�good�luck�wish:�Glückauf!�