1、Annualreport2022/2023thyssenkrupp at a glance(As of September 30,2023)sales generated by thyssenkrupp in fi scal year 2022/2023.2022/2023 Change in%Order intake 1)million?37,060(16)Net sales 1)million?37,536(9)Adjusted EBIT1),2)million?703(66)Net income/(loss)1)million?(1,986)Earnings per share 1)(3

2、.33)Free cash fl ow before M&A 1)million?363+Net fi nancial assets(Sept.30)million?(4,325)(18)tkVAmillion?(2,818)Market capitalization million?4,50165Dividend per share 3)0.151)Group continuing operations2)See preliminary remarks3)Proposal to the Annual General Meetingemployees work together on forw

3、ard-looking solutions for our customers.100,000Forged TechnologiesBearingsMaterials ServicesMulti Tracks4 regional platforms 800 sites48 countries 2022/2023 million Order intakeNet salesAdjusted EBIT 1),2)Materials Services13,68413,613178Bearings 2)1,1511,149101Forged Technologies 2)1,6071,598102Aut

4、omotive Technology5,4285,479223Steel Europe12,18912,375320Marine Systems9591,83980Multi Tracks 2)3,7353,167(132)Corporate Headquarters67(169)Reconciliation(1,700)(1,691)0Group continuing operations 2)37,06037,536703Discontinued elevator operations 2)000Full group37,06037,5367031)See reconciliation i

5、n segment reporting(Note 24)2)See preliminary remarksAutomotive TechnologySteel EuropeMarine SystemsBGFT thyssenkrupp annual report 2022/2023 thyssenkrupp at a glance 2 thyssenkrupp annual report 2022/2023 Contents 3 Contents 1 4 To our shareholders 5 Interview with Miguel Lpez 10 Executive Board 11

6、 Report by the Supervisory Board 20 thyssenkrupp stock 2 23 Combined management report 24 Preliminary remarks 26 Fundamental information about the group 40 Report on the economic position 91 Annual financial statements of thyssenkrupp AG 97 Climate,energy and environment 100 Technology and innovatio

7、ns 104 Purchasing 107 Employees 115 Social responsibility 116 Compliance 120 EU Taxonomy 133 Overview of non-financial disclosures 134 Forecast,opportunity and risk report 162 Takeover-related disclosures 165 Corporate governance statement 3 178 Consolidated financial statements 179 thyssenkrupp gro

8、up statement of financial position 181 thyssenkrupp group statement of income 182 thyssenkrupp group statement of comprehensive income 184 thyssenkrupp group statement of changes in equity 186 thyssenkrupp group statement of cash flows 188 thyssenkrupp group notes to the financial statements 286 Ind

9、ependent auditors report 295 Responsibility statement 4 296 Additional information 297 Multi-year overview 299 Compensation report 2022/2023 331 Independent auditors opinion on the audit of the compensation statement in accordance with 162(3)AktG 333 Executive Board 334 Supervisory Board 337 Glossar

10、y 339 Contact and 2024/2025 financial calendar Our fiscal year begins on October 1 and ends on Septem-ber 30 of the following year.1To our shareholders thyssenkrupp annual report 2022/2023 To our shareholders 4 5 Interview with Miguel Lpez 10 Executive Board 11 Report by the Supervisory Board 20 thy

11、ssenkrupp stock thyssenkrupp annual report 2022/2023 1 To our shareholders|Interview with Miguel Lpez 5 Miguel Lpez has been CEO of thyssenkrupp AG since June 1,2023.In this interview,he talks about the progress thyssenkrupp has made in its transformation despite the challenging conditions and where

12、 he sees its main future opportunities.INTERVIEW WITH MIGUEL LPEZ“We are making thyssenkrupp an enabler of the green transformation.”thyssenkrupp annual report 2022/2023 1 To our shareholders|Interview with Miguel Lpez 6 Mr.Lpez,you took on your new role four months ago.What picture have you gained

13、of thyssenkrupp?First:thyssenkrupp has strong foundations that we can build on to utilize opportunities.thyssenkrupp is a world-renowned brand with cutting-edge technologies for the green trans-formation,a long-standing customer base and a highly motivated workforce.Ive seen that every day in the pa

14、st months.Second:we are well aware that there are some clear challenges we need to address.Can you specify them?Our portfolio is still too complex.We will there-fore be streamlining it further.We are continuing to explore stand-alone options for Steel Europe and Marine Systems.And we are still pursu

15、ing the plans to dispose of Automation Engineering and Springs&Stabilizers.In the course of our transformation process,we also need to improve cash generation so it is Our overarching goal is therefore still to improve the performance and competitiveness of all our businesses.Looking back,how do you

16、 see the past year?Economically,it was a challenging year in which we achieved a robust performance.Our key performance indicators,adjusted EBIT and free our expectations.Earnings were held back by the pressure on margins at Materials Services resulting from the drop in material prices and by high r

17、aw material and energy costs and lower revenues at Steel Europe.That was only partly-motive Technology,Marine Systems and Multi Tracks.However,we achieved a strong im-In September we introduced a holistic,group-wide improvement program to help us reach improvement in the performance of our busi-ness

18、es.We also drove forward the realignment of our portfolio,focused our businesses on future-oriented topics and further enhanced the visibility of our green technologies.The suc-cessful IPO of thyssenkrupp nucera,in particu-lar,and the establishment of the new Decarbon Technologies segment are import

19、ant milestones in the thyssenkrupp transformation process.“thyssenkrupp has strong foundations that we can build on to utilize opportunities.”thyssenkrupp annual report 2022/2023 1 To our shareholders|Interview with Miguel Lpez 7 You mention the new Decarbon Technolo-gies segment.Why does thyssenkru

20、pp need a new segment?thyssenkrupp has world-leading technologies that can reduce a large proportion of todays CO2we want to systematically access that potential and translate it into value-enhancing growth.That is why we established the Decarbon Tech-nologies segment our“green industry power-/2024.

21、In this way,we are positioning the company as a technology leader for the energy transition and making our extensive expertise for the green transformation fully visible.What exactly does the new segment look like?Decarbon Technologies brings together four businesses with key technologies for the en

22、er-gy transition.Rothe Erde is the global#1 in the latest generation of slewed bearings,so it plays an important part in making the energy transition possible.Uhde is a global technology leader in the ammonia chain,which will be making greater use of green production processes in the future.Polysius

23、 is an enabler for the climate-neutral transformation of the cement industry with inno-vative technologies such as its patented Oxyfuel process.thyssenkrupp nucera is one of the worlds leading suppliers of electrolysis plants for the production of green hydrogen.The common feature of all these busin

24、esses,which employ around 15,000 people,is that they have decades of experience and wide-ranging expertise in their industries.Moreover,they have an extensive installed basis and close customer relationships.That is an excellent starting point“We have world-leading technologies that can reduce a lar

25、ge proportion of todays CO2emissions.That offersenormous potential.”thyssenkrupp annual report 2022/2023 1 To our shareholders|Interview with Miguel Lpez 8 In parallel with the realignment of the port-folio,you have rolled out the APEX perfor-?naem eman eht seod tahW.margorp ecnamAPEX means peak and

26、 symbolizes the goal of this new holistic improvement program:in the long-term,we want to tap into the full potential of our businesses cutting-edge technologies.What exactly does that mean?APEX is designed to help our businesses quick-announced at the Capital Market Day in 2021 structure.At the sam

27、e time,we want to foster a groupwide performance culture.Our businesses have already made considerable progress but we are not yet where we want to be.We want to use APEX to narrow the gaps.We are aligning What does APEX focus on?APEX uses sustainable performance improve-ment method that is being ro

28、lled out groupwide.The businesses apply the methodology on the-tent and measures to be taken.They are also responsible for implementation and for their own success.At a range of workshops across all segments,experts from the businesses have /CAPEX,business models and sales,material costs,net working

29、 capital and organization.Some of these are already being implemented at segment level.What role do employees play in the trans-formation process?Our employees are crucial for the success of our transformation.Their commitment is essential to achieve our ambitious goals.That includes sys-tematically

30、 questioning established approaches.It is not just about cutting costs.It is also about being bold and creative,being open to change and developments in our business models:for example,greater modularization and standard-service business.thyssenkrupp is still working intensively on stand-alone optio

31、ns for Steel Europe and Marine Systems.What is the status of these projects?Rising global demand and long-term structural potential for Marine Systems in addition to the That puts us in a stronger position to develop the best possible structure for Marine Systems:we are still aiming to place the bus

32、iness on a stand-alone basis or enter into alliances to improve the global competitive position of this segment.One important basis for a stand-alone solution for the steel business is and remains the green transformation of the segment.Important steps forward were made at Steel Europe in the past f

33、or state aid of around 2?billion from federal and state government in Germany for our “tkH2Steel”project.That will make thyssenkrupp a pioneer in climate-neutral steel production.thyssenkrupp annual report 2022/2023 1 To our shareholders|Interview with Miguel Lpez 9 You mentioned the transformation

34、of thyssenkrupp Steel.How do you see it developing?For many of our customers,climate-neutral steel plays a key role in meeting their own cli-mate targets.Therefore,I am convinced that in the future the sector cannot do without green steel.thyssenkrupp Steel Europe is doing im-portant pioneering work

35、 here.To enable that electricity and hydrogen need to be available in the long term at competitive prices.That is the only way to keep as much production as possi-ble in Germany and exploit our technological edge in green steel.However,thyssenkrupp cannot secure the supply of green hydrogen and gree

36、n electricity at competitive prices on its own.That is a joint task for politicians and industry.Therefore,we are talking for example with possible project partners,including partners in other sectors.What is the idea behind such partnerships?both sides.It is clear that thyssenkrupp Steel will be on

37、e of the biggest consumers of green elec-tricity in the future.Through long-term partner-ships,we can give energy producers the reliable planning base they need for substantial invest-ments in the expansion of renewable energy.In return,thyssenkrupp Steel would also get a reli-able planning base in

38、terms of competitive prices and long-term access to large quantities of envi-ronmentally friendly electricity or hydrogen.That is a classic win-win situation.What plans does thyssenkrupp have for the focus on performance and the green transfor-mation.We have paved the way for that by intro-ducing AP

39、EX and setting up Decarbon Technolo-gies.Moreover,Automotive Technology is enabling sustainable mobility through technolo-gies that are largely independent of the type of powertrain.And Materials Services is contribut-ing to sustainable supply chains and a resource-saving circular economy.As you can

40、 see,all segments at thyssenkrupp have enormous growth potential in the area of sustainability.We want to leverage this optimally.We are mak-ing thyssenkrupp an enabler of the green trans-formation.“All segments have enormous growth potential in the area of sustainability.We want to leverage that op

41、timally.”thyssenkrupp annual report 2022/2023 1 To our shareholders|Executive Board 10 Executive Board Oliver Burkhard*1972,Chief Human Resources Officer(CHRO)since February 1,2013,Labor Director since April 1,2013,appointed until September 30,2028 Miguel ngel Lpez Borrego*1965,Chief Executive Offic

42、er(CEO)since June 1,2023,appointed until March 31,2026 Dr.Klaus Keysberg*1964,Chief Financial Officer(CFO)since October 1,2019,appointed until July 31,2024 thyssenkrupp annual report 2022/2023 1 To our shareholders|Report by the Supervisory Board 11 Report by the Supervisory Board Dear Shareholders,

43、Before I inform you about the work of the Supervisory Board and its committees in fiscal year 2022/2023 I would like to take a brief look back at this year as a whole and the diverse range of topics to which we devoted our time and attention.The year was once again overshadowed by geo-political cris

44、es and uncertainties.Russias war of aggression against Ukraine is continuing and its future course is uncertain.The relationship between the democratic,industrialized countries and autocratic states is changing and is a matter of intense concern for politicians and companies.In October this year,the

45、 situation in the Middle East flared up again as a consequence of the terrorist attack by Hamas.We were relieved that Covid has now basically passed or at any rate has become relatively manageable.However,the various crises in the world are a cause of considerable concern Prof.Dr.-Ing.Dr.-Ing.E.h.Si

46、egfried Russwurm Chairman thyssenkrupp annual report 2022/2023 1 To our shareholders|Report by the Supervisory Board 12 and require great vigilance.At the end of 2022,one threat cybercrime became a concrete expe-rience rather than an abstract scenario for us at thyssenkrupp.The companys IT infrastru

47、cture was the direct target of an attack.The attackers were detected and isolated in time,preventing consider-able damage to the company and its employees.However,it showed how alert we need to be and how serious the threat is.One issue at the top of the agenda for politicians,industry and society i

48、s the fight against climate change.That has special dimensions for our company.A key milestone for us and for the achieve-ment of the climate targets in Germany and Europe was the EU Commissions approval for the Ger-man government and the state of North Rhine-Westphalia to provide funding of around

49、2 billion for the construction of thyssenkrupp Steels first direct reduction plant in Duisburg.Other elements in the transformation of thyssenkrupp are the successful IPO of our hydrogen subsidiary thyssenkrupp nucera in a challenging capital market environment and the establishment of our new Decar

50、bon Technologies segment,which the company prepared in the fourth quarter and implemented at the start of the new fiscal year.This brings our competencies and the potential of our portfolio into our focus and draws them to the attention of prospective customers around the world.Our technologies and

51、solutions can make a substantial contribution to the decarbonization of the world.I would specifically like to draw attention to various personnel matters relating to the Executive Board of thyssenkrupp AG.In November 2022,the Supervisory Board extended the appointment of CHRO Oliver Burkhard,who ha

52、s been a member of the Executive Board and Labor Director of thyssenkrupp AG since 2013,by a further five years to the end of September 2028.He is doing an excellent job in difficult times and has also been setting a clear direction as CEO of thyssenkrupp Marine Systems since May 2022.At the end of

53、April Martina Merz requested talks on early termination of her service contract and left the company by mutual agreement on May 31,2023.We secured the services of Miguel ngel Lpez Borrego to succeed her as CEO of thyssenkrupp AG with effect from June 1,2023.On behalf of the Supervisory Board,I would

54、 like to extend our sincere thanks to Martina Merz for her tremendous commitment to thyssenkrupp in a period that was exceptionally challenging for the global economy,for our country and above all for our company.She instigated the necessary restructuring of thyssenkrupp in a decisive phase for the

55、company with great circumspection and strategic rationale.Mr.Lpez has taken up the change process that has been initiated and is consistently driving it forward.At its heart is the logical alignment of the businesses to future viability.Furthermore,Dr.Klaus Keysberg has decided not to renew his cont

56、ract when it ends on July 31,2024.He has served the thyssenkrupp group in various senior management positions for nearly 28 years and has been a member of the Executive Board of thyssenkrupp AG and CFO since October 2019.I would like to thank Dr.Klaus Keysberg for his long commitment to the company

57、in a wide range of roles and especially for his work on the Executive Board in the past four years.During this time he supported the extensive change process at the company with wisdom and great circumspec-tion and made a key contribution to the progress that has been made in the transformation of t

58、hyssenkrupp.thyssenkrupp annual report 2022/2023 1 To our shareholders|Report by the Supervisory Board 13 Cooperation between Supervisory Board and Executive Board In fiscal year 2022/2023 the Supervisory Board regularly advised the Executive Board on the man-agement of the company and continuously

59、supervised its conduct of business.We satisfied ourselves that the Executive Boards work complied with all legal and regulatory requirements at all times.The Executive Board fulfilled its duty to inform.It furnished us with regular written and verbal reports containing up-to-date and comprehensive i

60、nformation on all issues of relevance to the company and the group relating to strategy,planning,business performance,the risk situation,compliance and the sustainability strategy.This also included information on variances between actual performance and previously reported targets as well as on bud

61、get variances(follow-up reporting).In addition,the Executive Board regularly reports on the development and implementation of sustainability topics.In the committees and in full Supervisory Board meetings,the members of the Supervisory Board had ample opportunity to critically examine the reports an

62、d resolution proposals submitted by the Exec-utive Board and contribute suggestions.In particular,we discussed intensively and examined the plausibility of all transactions of importance to the company on the basis of written and verbal reports by the Executive Board.On several occasions,the Supervi

63、sory Board dealt at length with the com-panys targets,the risk situation and in this context with cybersecurity in particular,refinancing and liquidity planning and the equity situation.Based on the analysis of the value potential of the groups businesses and the opportunities and risks of strategic

64、 steps,critical operating issues were presented to the Supervisory Board for discussion.Where required by law,the Articles of Association or the rules of procedure for the Executive Board,the Supervisory Board gives its approval for indi-vidual business transactions.The Supervisory Board and Executi

65、ve Board worked together intensively and shared information.At 14 meetings of the Executive Committee,the majority of which were attended by Executive Board members and occasionally by external advisors as well,all topics were discussed in detail and meet-ings of committees and the Supervisory Board

66、 were prepared and followed up.In addition,in the periods between meetings,the chairs of the Supervisory Board and its committees engaged in a close and regular exchange of views and information with the Executive Board and were informed about major developments.Important facts were reported at the

67、latest at the subsequent Supervisory Board or committee meetings.Before the Supervisory Board meetings,the shareholder and the employee representatives each held separate meetings to discuss the agenda items.The Supervisory Board members are required by law and by the German Corporate Governance Cod

68、e(GCGC)to immediately disclose any conflicts of interest.In the past fiscal year,there were no conflicts of interest relating to Executive Board or Supervisory Board members that would have had to be disclosed immediately to the Supervisory Board.thyssenkrupp assists the members of the Supervisory B

69、oard in the organization of the training and professional development measures that the members themselves are generally responsible for un-dertaking in fulfillment of their duties and assumes the costs for such measures.To supplement this,the company offers information events and training sessions

70、on specific topics.In fiscal year 2022/2023,the Supervisory Board held a training session with external support on ESG regulations and frameworks of relevance for the Supervisory Board.Tours of thyssenkrupp sites and further training sessions with external support are already planned for fiscal year

71、 2023/2024.There is an established onboarding process to familiarize new Supervisory Board members with the thyssenkrupp business model,group structures and special topics.The Corporate Office acts as coordinator.In addition,it provides information on rights and obligations,offers support in the for

72、m thyssenkrupp annual report 2022/2023 1 To our shareholders|Report by the Supervisory Board 14 of personal discussions and ensures that the necessary documents and authorizations for digital information interchange are provided.Supervisory Board meetings Meetings of the Supervisory Board and its co

73、mmittees generally take the form of in-person attend-ance with the option of participation via a video link.Meetings are only held exclusively as telephone or video conferences in exceptional circumstances.In the reporting year,only seven out of a total of 39 meetings of the Supervisory Board and it

74、s committees were held as video conferences;all others were in-person meetings.The meetings held as video conferences were of short duration and were arranged at short notice.Attendance at meetings of the Supervisory Board and its committees,which were held as in-person meetings with the option of p

75、articipation via a video link,was 98.3%.The following table shows attendance in individualized form:ATTENDANCE RATE AT THE MEETINGS OF THE SUPERVISORY BOARD AND ITS COMMITTEES FY 2022/2023 Supervisory Board Meetings Committee Meetings MeetingsAttendedAttendancerate in%MeetingsAttendedAttendance rate

76、 in%Prof.Dr.-Ing.Dr.-Ing.E.h.Siegfried Russwurm,Chairman 77100.00%2727100.00%Jrgen Kerner,Vice Chairman 77100.00%262492.31%Birgit A.Behrendt 77100.00%./././.Dr.Patrick Berard(since Feb.3,2023)55100.00%./././.Stefan Erwin Buchner 77100.00%./././.Dr.Wolfgang Colberg 77100.00%4375.00%Prof.Dr.Dr.h.c.Urs

77、ula Gather 77100.00%55100.00%Angelika Gifford 77100.00%./././.Dr.Bernhard Gnther 77100.00%2727100.00%Achim Hass 77100.00%./././.Friederike Helfer(until Feb.3,2023)22100.00%22100.00%Tanja Jacquemin 77100.00%55100.00%Daniela Jansen 77100.00%77100.00%Christian Julius 77100.00%./././.Thorsten Koch 77100

78、.00%11100.00%Katrin Krawinkel(since Jan.1,2023)33100.00%./././.Dr.Ingo Luge 77100.00%66100.00%Tekin Nasikkol 77100.00%313096.77%Peter Remmler(until Feb.3,2023)22100.00%11100.00%Dirk Sievers(until June 20,2023)55100.00%201995.00%Dr.Verena Volpert 77100.00%55100.00%Ulrich Wilsberg(since Feb.3,2023)551

79、00.00%4375.00%Isolde Wrz(until Dec.31,2022)11100.00%./././.Kirstin Zeidler(since July 7,2023)11100.00%./././.thyssenkrupp annual report 2022/2023 1 To our shareholders|Report by the Supervisory Board 15 The members of the Executive Board took part in meetings of the Supervisory Board and its commit-

80、tees;however the Supervisory Board also met regularly without the Executive Board.In total,seven Supervisory Board meetings and one training session were held in the reporting year.The range of topics that the Supervisory Board dealt with included the current business and earnings situation and the

81、parent-company and consolidated financial statements for the year ended Septem-ber 30,2022.On the recommendation of the Audit Committee and after discussion with the auditors,PricewaterhouseCoopers GmbH Wirtschaftsprfungsgesellschaft(PwC),the Supervisory Board ap-proved the parent-company and consol

82、idated financial statements for fiscal year 2021/2022 and thus adopted the parent-company financial statements.Further topics were corporate governance,the thyssenkrupp approach to the internal control system(ICS),compliance and the mandatory EMIR audit for fiscal year 2021/2022 pursuant to 32 Germa

83、n Securities Trading Act(WpHG),as well as the regular updates on all segments.The reports by the Executive Board on the state of the thyssenkrupp group and its ongoing develop-ment were supplemented by more detailed reports on the CO2 roadmap and status updates on the value and development plans of

84、the individual segments.This formed the basis for the continued intensive discussions on improving performance,portfolio measures and the short-and medium-term earnings targets for all segments.On the basis a focused analysis of value drivers along the entire length of the segments value chains,the

85、Supervisory Board regularly discussed the perfor-mance targets and the extent to which they had been achieved,together with recommendations for implementing the necessary measures faster.The Supervisory Board also discussed in detail the business and investment plans for fiscal year 2023/2024,which

86、were adopted at the September meeting.The portfolio topics considered intensively included the IPO of thyssenkrupp nucera and the plans to place the Marine Systems and Steel Europe segments on a stand-alone basis.In partic-ular,detailed consideration was given to the measures needed for the green tr

87、ansformation of Steel Europe,for example,the decision to build the first direct reduction plant at the Duisburg site and the related significant investment.Another focal topic was the establishment of the new Decarbon Tech-nologies segment and the associated portfolio restructuring to position thyss

88、enkrupp clearly as a technology leader for the energy transition.Following examination of the recommendations and suggestions of the GCGC,in fiscal year 2022/2023,the Supervisory Board adopted a resolution to issue the declaration of conformity.The current declaration of conformity,issued at October

89、 1,2023,is available on the thyssenkrupp web-site.In addition,the Executive Board and Supervisory Board report on corporate governance at thyssenkrupp in the corporate governance statement.Report on the work of the committees The primary task of the Supervisory Boards six committees is to prepare de

90、cisions and topics for discussion at the full meetings.The Supervisory Board has delegated individual decision-making powers to the committees where this is legally permissible.The powers of the committees and the requirements on committee members are set out in the rules of procedure for the respec

91、tive com-mittees.The chairs of the committees provided the Supervisory Board with regular detailed reports on the work of the committees in the reporting year.The chairs of the committees were also in close contact with the other members of their committees outside the regular meetings to exchange v

92、iews on particularly important topics.The compositions of the six committees as of September 30,2023,are shown in the section“Supervisory Board.”thyssenkrupp annual report 2022/2023 1 To our shareholders|Report by the Supervisory Board 16 The Executive Committee(Prsidium)met 14 times in the past fis

93、cal year due to the current situation and the preparations for the seminal meetings of the Supervisory Board.In addition to preparing the full Supervisory Board meetings,the work of this committee focused on the financial position and earnings performance of the group and topics relating to the tran

94、sformation of thyssenkrupp.The Personnel Committee held seven meetings in fiscal year 2022/2023 in order to prepare person-nel matters concerning members of the Executive Board of thyssenkrupp AG for the Supervisory Board.Where required,resolutions were passed or recommendations for resolutions were

95、 made to the Supervisory Board.Alongside the personnel change on the Executive Board,the meetings fo-cused on decisions on aspects of compensation,especially setting the variable compensation,the review during the year of the defined individual targets and the disclosures in the compensation report

96、pursuant to 162 German Stock Corporation Act(AktG)as well as preparations for Executive Board contracts and the termination of such contracts.The committee also dealt with general Exec-utive Board matters,partly in the context of benefits for former Executive Board members,as well as succession plan

97、ning for the Executive Board.The Audit Committee met five times in fiscal year 2022/2023.Alongside Executive Board members,following the election of KPMG Aktiengesellschaft Wirtschaftsprfungsgesellschaft(KPMG)as the auditor at the 2023 Annual General Meeting and its formal appointment by the Audit C

98、ommittee,representatives of KPMG were present at the meetings.KPMG gave the Audit Committee a declaration that no circumstances exist that could lead to the assumption of prejudice by the auditors.The Audit Committee obtained the required auditors statement of independence,reviewed their qualificati

99、on and concluded a fee agreement with the auditors.In addition,a survey with a reduced scope was carried out on satisfaction with the auditor;the results of this as well as the additional services pro-vided by KPMG alongside the audit of the financial statements were discussed in the Audit Committee

100、.Dr.Verena Volpert,Chair of the Audit Committee,engaged in a regular exchange of views with the auditors between meetings.The heads of relevant group functions were also available to provide reports and take questions in the committee meetings.The committees work focused on examining the 2021/2022 p

101、arent-company and consolidated fi-nancial statements along with the combined management report including the fully integrated non-financial statement and the combined corporate governance statement of the Executive Board and Supervisory Board,as well as on preparing the Supervisory Board resolutions

102、 on these items.In addition,the interim financial reports for fiscal year 2022/2023(half-year and quarterly reports)were discussed in detail and adopted,taking into account the auditors review reports.With regard to the relationship with KPMG,the list of non-audit services provided by the statutory

103、auditor that require approval was established and the budget for the performance of non-audit services for fiscal year 2023/2024 was set.thyssenkrupp annual report 2022/2023 1 To our shareholders|Report by the Supervisory Board 17 In several meetings,the Audit Committee monitored the accounting proc

104、ess and discussed the ef-fectiveness of the internal control system and optimizations made to it,the effectiveness of the risk management system and the internal auditing system.It also dealt in detail with the main legal dis-putes and compliance in the company and discussed at length the developmen

105、t of strategic compli-ance measures at thyssenkrupp.The Audit Committee defined the following mandate as the focus of the audit:“Audit of key measures in the internal control system and the risk management system to support the Executive Boards statement on their effectiveness pursuant to GCGC A.5.”

106、The auditors reported the results of their audit to the Audit Committee at its meeting on November 16,2023.In addition,in the presence of the head of Corporate Internal Auditing,the committee discussed the internal audit results,the audit processes and the audit planning of the internal auditing tea

107、m for fiscal year 2022/2023,including audit support for the investment in Steel Europes first direct re-duction plant.Further points of focus were the non-financial statement,which is fully integrated into the management report,the equity capital and rating situation,the EMIR compliance audit for fi

108、scal year 2021/2022 pursuant to 32 WpHG,the current performance of all segments and implemen-tation of the reporting requirements of the EU Taxonomy Regulation.The Strategy,Finance and Investment Committee held five meetings in fiscal year 2022/2023.Dis-cussions focused on preparing decision recomme

109、ndations in its area of responsibility for the Super-visory Board.At each meeting,the committee dealt with the operational and economic situation of thyssenkrupp and its ongoing development.As in the previous year,the other main topics addressed by the committee included the progress towards stand-a

110、lone solutions for Marine Systems and Steel Europe segments.The committee also looked intensively at Steel Europes investment application for the erection of the first direct reduction plant and the related feasibility study.Further areas of focus were the assessment of the risk of cyberattacks,the

111、successful interception of an actual attack on the IT infrastructure of some units in the thyssenkrupp group and the enhancement of IT security measures,financing and liquidity planning and the review of the profitability of specific completed investment projects.Finally,in September 2023,the commit

112、tee dealt at length with the groups busi-ness and investment plans for fiscal year 2023/2024 and decided on those plans.At the September meeting,the committee also discussed a partial realignment of the groups structure and recom-mended the following resolution to the Supervisory Board:The Rothe Erd

113、e business unit(Bearings business unit until September 30,2023)and the Uhde,Polysius and thyssenkrupp nucera business units should be combined in the new Decarbon Technologies segment effective October 1,2023.By establishing this new segment,thyssenkrupp is positioning itself as a technology leader

114、for the en-ergy transition and thus underscoring its extensive expertise for the green transformation.thyssenkrupp annual report 2022/2023 1 To our shareholders|Report by the Supervisory Board 18 The members of the Nomination Committee held one meeting in the past fiscal year.With a view to the upco

115、ming election of shareholder representatives at the 2023 Annual General Meeting,the com-mittee established that in terms of diversity,financial expertise and fulfillment of the profile of required skills and expertise the composition of the Supervisory Board is appropriate.Since one shareholder repr

116、esentative was stepping down,the members of the Nomination Committee proposed a successor for election at the Annual General Meeting.There was once again no cause to convene the Mediation Committee under 27(3)Codetermination Act(MitbestG)in the reporting year.Audit of the parent-company and consolid

117、ated financial statements Elected by the Annual General Meeting on February 3,2023 to audit the financial statements for fiscal year 2022/2023,KPMG audited the parent-company financial statements for the fiscal year from October 1,2022 to September 30,2023 prepared by the Executive Board in accordan

118、ce with the German Commercial Code(HGB)rules and the management report on thyssenkrupp AG,which is combined with the management report on the thyssenkrupp group.The auditors issued an un-qualified audit opinion.In accordance with Art.315e of the German Commercial Code(HGB),the consolidated financial

119、 statements of thyssenkrupp AG for the fiscal year from October 1,2022 to September 30,2023 and the management report on the thyssenkrupp group were prepared on the basis of International Financial Reporting Standards(IFRS)as applicable in the European Union.The consolidated financial statements and

120、 the combined management report were also given an unqual-ified audit opinion by KPMG.The auditors also confirmed that the Executive Board has installed an appropriate reporting and monitoring system that is suitable in its design and handling to identify,at an early stage,developments that could pl

121、ace the continued existence of the company at risk.The financial statement documents and audit reports for fiscal year 2022/2023 were discussed in detail in the meetings of the Audit Committee on November 16,2023 and the Supervisory Board on November 21,2023.The auditors reported on the main finding

122、s of their audit.They also outlined their findings on the internal control system in relation to the accounting process as well as the risk early detection system,and were available to answer questions and provide additional information.The Chair of the Audit Committee reported in depth at the full

123、Supervisory Board meeting on the Audit Committees examination of the parent-company and consolidated financial statements.The Supervisory Board examined the parent-company and consolidated financial statements and the combined management report,including the non-financial statement fully integrated

124、into the man-agement report,as well as the compensation report pursuant to 162 AktG and raised no objections.The parent-company and consolidated financial statements were approved.The parent-company financial statements prepared by the Executive Board of thyssenkrupp AG were thus adopted.The Executi

125、ve Board and Supervisory Board will propose to the Annual General Meeting on Febru-ary 2,2024,to pay a dividend of 0.15 dividend-bearing per share for fiscal year 2022/2023.thyssenkrupp annual report 2022/2023 1 To our shareholders|Report by the Supervisory Board 19 Personnel changes on the Supervis

126、ory Board There were the following personnel changes on the Supervisory Board of thyssenkrupp AG in the reporting year:On the shareholder representatives side,Friederike Helfer stepped down from the Supervisory Board with effect from the end of the Annual General Meeting on February 3,2023.Dr.Patric

127、k Berard was elected as her successor.On the employee representatives side,Isolde Wrz stepped down as of December 31,2022,Peter Remmler resigned with effect from the end of the 2023 Annual General Meeting and Dirk Sievers left the Supervisory Board on June 20,2023.Katrin Krawinkel,Ulrich Wilsberg an

128、d Kirstin Zeidler were appointed by the court to succeed them as members of the Supervisory Board from January 1,2023,February 3,2023 and July 7,2023,respectively,for the remaining term of office of the employee representatives on the Supervisory Board.The members of the Supervisory Board thanked th

129、e departing members for their good and construc-tive work over many years.The Supervisory Board thanks the Executive Board members,all thyssenkrupp group employees worldwide and the employee representatives of all group companies for their significant efforts and achievements in fiscal year 2022/202

130、3.The Supervisory Board Prof.Dr.-Ing.Dr.-Ing.E.h.Siegfried Russwurm Chairman Essen,November 21,2023 thyssenkrupp annual report 2022/2023 1 To our shareholders|thyssenkrupp stock 20 thyssenkrupp stock KEY DATA OF THYSSENKRUPP STOCK 2018/20192019/2020 2020/20212021/20222022/2023 Capital stock million

131、1,5931,593 1,5931,5931,593 Number of shares(total)million shares622.5622.5 622.5622.5622.5 Market capitalization end September million 7,9122,683 5,7152,7334,501 Closing price end September 12.714.31 9.184.397.23 High 20.9013.82 11.9511.297.70 Low 9.413.55 3.884.224.53 Total Shareholder Return(TSR)1

132、)%(40)(52)61(39)31 Dividend per share 0.150.153)Dividend yield%3.42.1 Dividend payout million 93933)Earnings per share(EPS)(0.49)15.40(0.18)1.82(3.33)Number of shares(outstanding 2)million shares622.5622.5 622.5622.5622.5 Trading volume(daily average)million shares5.14.6 4.14.13.8 1)The statement of

133、 TSR is made in accordance with the calculation method as approved at the AGM 2021 as part of the renumeration system for the Executive Board.The TSR performance is used in the context of the long-term variable renumeration as a measure for how the value of a share commitment(price change and divide

134、nds)develops over a period of time.The TSR performance is calculated per fiscal year based on the share price development plus dividends distributed during the fiscal year.The start value and the end value are based on the average share price,calculated as arithmetc mean of the closing prices during

135、 the last 30 trading days before the start or before the end of the fiscal year.2)Weighted average 3)Proposal to the Annual General Meeting Stock price performance Overall,thyssenkrupps stock clearly outperformed the market as a whole in fiscal year 2022/2023,based on the DAX and MDAX indices.The ma

136、in influences were the robust operating performance and the sound financial position of thyssenkrupp AG.Upside potential also came from marketing in connection with the IPO of thyssenkrupp nucera.thyssenkrupps stock declined significantly from mid-April in the wake of the turbulence in the bank-ing

137、sector.Investors initially cautious response to the announcement of the change of CEO at the end of April was followed by renewed optimism,enabling the stock to benefit from the positive market trend at the end of the fiscal year and recoup the interim losses.thyssenkrupp stock master data ISIN1)Sha

138、res DE 000 750 0001 ADR2)US88629Q2075 Symbols TKA Frankfurt,Dsseldorf TKAMY ADR(over-the-counter-trading)1)International Stock Identification Number 2)American Depositary Receipt thyssenkrupp annual report 2022/2023 1 To our shareholders|thyssenkrupp stock 21 Shares in thyssenkrupp reached a high fo

139、r the year of 7.70 on April 18,2023.The lowest point in the past fiscal year was 4.53 on November 3,2022.On September 30,2023 the stock stood at 7.23,which was more than 60%higher than a year earlier;the DAX and MDAX rose by 27%and 16%respectively in the course of the fiscal year.Shareholder structu

140、re The capital stock of thyssenkrupp AG amounts to 1,593,681,256.96 and is divided into 622,531,741 no-par bearer shares.Each share grants one vote at the Annual General Meeting.thyssenkrupp AG does not currently hold any treasury shares.The biggest shareholder in thyssenkrupp AG is the Alfried Krup

141、p von Bohlen und Halbach Foundation,Essen.The remaining shares are widely held worldwide,with focal points in the USA,Canada and the UK.The free float generally taken into account in the weighting of thyssenkrupps stock in stock market indices accounts for around 79%of the capital stock as of the re

142、porting date.The Krupp Foundations shareholding is not included in the free float.Within the framework of its continuous investor relations activities,thyssenkrupp maintains an inten-sive dialog with shareholders and potential investors.At roadshows and investor conferences in the past fiscal year,d

143、iscussions focused on the improvement in the groups operating performance,im-plementation of the transformation,the companys strategic focus,growth prospects for thyssenkrupp nucera(hydrogen electrolysis)and its IPO,and possible stand-alone solutions for the steel business and Marine Systems.There w

144、as also much discussion of sustainability-related topics.In this context,the dialog with investors on governance topics continued both ahead of the Annual General Meeting and during the year.The Chairman of the Supervisory Board played an active role in this.Information on the various events is avai

145、lable on the readily accessible investor relations site on thyssenkrupps website.800100PERFORMANCE OF THYSSENKRUPP STOCK RELATIVE TO DAX AND MDAXIndexed,fiscal year 2022/2023thyssenkruppDAXMDAX304050607080920222023 thyssenkrupp annual report 2022/2023 1 To our shareholders|thys

146、senkrupp stock 22 Successful stock market listing of thyssenkrupp nucera Shares in thyssenkrupp nucera were listed on the stock market for the first time on July 7,2023.In the course of the IPO,more than 30 million shares were placed,including over 26 million new shares from a capital increase.The i

147、ssue price was set at 20 per share.thyssenkrupp nuceras market capitalization as of this date was therefore around 2.53 billion.Since thyssenkrupp AG still holds over 50%of the shares,thyssenkrupp shareholders continue to benefit from the considerable growth prospects of this company,which is import

148、ant for the decarbonization of many industries.Further-more,the IPO is an important step in the transformation process of the entire thyssenkrupp group.Dividend proposal:0.15 per no-par share The Executive Board and Supervisory Board will submit a proposal to the Annual General Meeting on February 2

149、,2024 that a dividend of 0.15 per share should be paid for fiscal year 2022/ Investors 2Combined management report thyssenkrupp annual report 2022/2023 Combined management report 23 24 Preliminary remarks 26 Fundamental information about the group 26 Profile and organizational structure 29 Strategy

150、34 Management of the group 36 Targets 40 Report on the economic position 40 Macro and sector environment 46 Summarized assessment by the Executive Board 50 Forecast-actual comparison 52 Group review 58 Segment review 81 Results of operations and financial position 91 Annual financial statements of t

151、hyssenkrupp AG 97 Climate,energy and environment 100 Technology and innovations 104 Purchasing 107 Employees 115 Social responsibility 116 Compliance 120 EU Taxonomy 133 Overview of non-financial disclosures 134 Forecast,opportunity and risk report 134 2023/2024 forecast 137 Opportunity and risk rep

152、ort 162 Takeover-related disclosures 165 Corporate governance statement thyssenkrupp annual report 2022/2023 2 Combined management report|Preliminary remarks 24 Preliminary remarks Combined management report This management report combines the management report on the thyssenkrupp group and the man-

153、agement report on thyssenkrupp AG.In it we report on the course of business including business performance as well as on the position and the expected development of the group and of thyssenkrupp AG.The information on thyssenkrupp AG is presented in the section headed“Annual financial statements of

154、thyssenkrupp AG”in the report on the economic position,with disclosures in accordance with the German Commercial Code(HGB).We report in accordance with the German Accounting Standard 20(GAS 20)“Group Management Report.”For several years now,we have used an integrated reporting approach:the combined

155、non-financial statement pursuant to Art.289b of the German Commercial Code(HGB)is included in the combined management report.An overview chart can be found in the section“Overview of non-financial disclosures.”This report follows the internal management model applied by thyssenkrupp in fiscal year 2

156、022/2023.Bearings and Forged Technologies,which were part of the Industrial Components seg-ment in the previous year,are now presented as separate segments:the prior-year figures have been restated accordingly.In the thyssenkrupp Groups new segment structure,which was resolved in the 4th quarter of

157、fiscal year 2022/2023 and introduced effective October 1,2023,the Bearings busi-ness unit was transferred to the Decarbon Technologies segment and the Forged Technologies busi-ness unit was transferred to the Automotive Technology segment.The disposal of the mining,infrastructure,and stainless steel

158、 businesses in the Multi Tracks segment was initiated in fiscal year 2020/2021.The disposal of the stainless steel business was completed at the end of January 2022.In connection with this sale,it was agreed that thyssenkrupp retains shares in the amount of 15%in the Italian company Acciai Speciali

159、Terni S.p.A.(AST).These shares are allocated to“Reconciliation”in segment reporting.Further,the divestment of the infrastructure activities was completed at the end of January 2022 and the disposal of the mining business was completed at the end of August 2022.Since the sale of the Elevator Technolo

160、gy business at the end of July 2020,thyssenkrupp has held an investment that was part of the consideration received for the sale.This investment is allocated to the Multi Tracks segment.For further details regarding this investment,see also Note 03(Single assets held for sale,disposal groups and dis

161、continued operation)and Note 22(Financial instru-ments).Irrespective of the deconsolidation already recognized,in the prior year subsequent ex-penses and income and cash flows directly related to the sale of the elevator activities were still reported separately in the statement of income and the st

162、atement of cash flows.In fiscal year 2022/2023,the subsequent expenses and cash flows are no longer presented separately on the grounds of immateriality.Hedge accounting for CO2 forward contracts in the Steel Europe segment was discontinued at the start of the 2022/2023 fiscal year.As a result,chang

163、es in fair value are no longer recognized directly in equity and thus outside of profit and loss but in cost of sales in the statement of income.In the reporting year,the gains from the measurement of CO2 forward contracts totaled 58 million;in the 4th quarter,this item contained losses of 37 millio

164、n.The corresponding income and expenses are thyssenkrupp annual report 2022/2023 2 Combined management report|Preliminary remarks 25 special items and did not affect the adjusted EBIT of the Steel Europe segment or the thyssenkrupp group.The business performance is presented by segment.Each section

165、starts with a brief description of the business model.The German Corporate Governance Code(GCGC)contains recommendations for disclosures on the internal control and risk management system that go beyond the statutory requirements for the man-agement report and are therefore outside the scope of the

166、audit of the content of the management report performed by the auditor.In this report they are assigned to the content of the corporate governance statement;moreover,they are contained in separate paragraphs to set them apart from the disclosures to be audited and flagged accordingly.The links are n

167、ot part of the management report or the audit.thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental information about the group 26 Fundamental information about the group Profile and organizational structure Value proposition thyssenkrupp is an international industrial and te

168、chnology group.Together with our customers we want to use our extensive engineering and innovation expertise to develop cost-effective,resource-and environment-friendly solutions to the challenges of the future.Under a strong umbrella brand we want to make an important contribution to a better,more

169、livable and more sustainable future with our innovative products,technologies and services,and thus demonstrate our responsibility towards future generations.To this end,we pursue ambitious climate protection targets and improve our own energy and climate efficiency.At the same time,we want to use o

170、ur diverse abilities along the rele-vant value chains to provide key support for customers in the green transformation.In this way we aim to enable the fundamental renewal of the industry as a whole and play an active part in shaping the green transformation.Our brand promise and the high standards

171、we set ourselves are reflected in our claim“engineering.tomorrow.together.”Diversity and global reach define thyssenkrupp.We want to combine performance culture with entrepreneurial and social responsibility.Our high standards and shared values are documented in our mission statement,which can be fo

172、und on our website.Organizational and management structure To enhance the visibility of thyssenkrupps capabilities in paving the way for and shaping the green transformation and to give the businesses operating in this growth market a new profile within the group,in the 4th quarter of fiscal year 20

173、22/2023 we decided to realign our portfolio effective Oc-tober 1,2023.Specifically,we combined our key technologies for the decarbonization of industry in a new Decarbon Technologies segment.The Bearings and Forged Technologies business units,which were grouped in the Industrial Components segment i

174、n the past fiscal year were transferred to the new Decarbon Technologies Group and to Automotive Technology respectively.For further details of the realignment of the portfolio,please refer to the“Strategy”subsection.For the purpose of segment reporting,in the past fiscal year our business activitie

175、s were bundled in seven segments:Materials Services,Bearings,Forged Technologies,Automotive Technology,Steel Europe,Marine Systems and Multi T Company Corporate culture thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental information about the group 27 The segments are gener

176、ally divided into business units and operating units.In the past fiscal year,Marine Systems,Bearings and Forged Technologies were managed as business units directly by thyssenkrupp AG.As of September 30,2023,320 companies and 20 investments accounted for by the equity method are included in the cons

177、olidated financial statements;overall we consolidate com-panies from 48 countries.Our service units are combined at two companies,thyssenkrupp Services GmbH and thyssenkrupp Information Management GmbH.They provide cross-cutting services to the businesses and Corpo-rate Headquarters.Furthermore,four

178、 regional platforms offer services required by the operating businesses in the various regions.Details on this can be found under“Corporate Headquarters”in the section“Report on the economic position.”48 Companies in 48 countries are consolidated for the groups financial statements.thyssenkrupp annu

179、al report 2022/2023 2 Combined management report|Fundamental information about the group 28 thyssenkrupp AG is responsible for the strategic management of the group.The individual segments take decentralized decisions,especially as regards operational management,but continue to operate under the str

180、ong umbrella brand thyssenkrupp.The aim is for the businesses to use the freedom needed to focus as much as possible on their customers and markets and thus offer a convincing thyssenkrupp AGSegmentsCorporate HeadquartersSales 1,598 millionAdjusted EBIT 102 million Manufacture of forged components a

181、nd system solutions for the resource,construction and mobility sectors Forged TechnologiesSales 5,479 millionAdjusted EBIT 223 million Volume supplier of chassis and powertrain components Assembly and logistics partner Supplier of body assembly lines and volume producer of light-weight body partsAut

182、omotive TechnologySales 1,839 millionAdjusted EBIT 80 million System provider in submarine and surface vessel construction and in maritime electronics and security technologyMarine SystemsSales 1,149 millionAdjusted EBIT 101 million Manufacture of slewing rings,antifriction bearings and seamless rol

183、led rings for wind energy and various industrial applications BearingsSales 13,613 millionAdjusted EBIT 178 million Global materials distributor Customer-specifi c processing,warehousing and logistics services Intelligent solutions for more sustainable,digital supply chainsMaterialsServicesSales 12,

184、375 millionAdjusted EBIT 320 million Production of fl at carbon steel for the automotive industry and many other sectors Further implementation of Strategy 20-30 with a focus on premium products with higher stability,optimized surfaces and thinner,higher-performance sheets for electromobility Establ

185、ishing climate-neutral steel production as part of the tkH2Steel transformation projectSteel EuropeSales 3,167 millionAdjusted EBIT(132)millionMulti Tracks Plant construction,including for the chemical and cement industries Provider of technologies for highly effi cient electrolysis plants,in partic

186、ular for the production of green hydrogen on an industrial scale Supplier of powertrain and battery production lines and manufacturer of springs and stabilizers for the automotive industry thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental information about the group 29 pr

187、ice/performance ratio for their products and services.We want to foster an entrepreneurial climate that speeds up decision-making,increases efficiency,and puts the customer first.In addition to performance management,Corporate Headquarters concentrates on portfolio management,govern-ance tasks,manag

188、ement development and the allocation of investment funds.Strategy Continuing the transformation process thyssenkrupp is continuing to drive forward its transformation in a challenging and rapidly changing macroeconomic environment.The aim is to realign thyssenkrupp as a sustainable and high-perform-

189、ing company with lean management structures and a clearly defined portfolio focused on profitable growth.The framework for this comprises our brand and our values.To optimally develop the businesses of thyssenkrupp AG,the company is continuing to focus its transformation specifically on the opportun

190、ities for our technologies arising from future-oriented is-sues.We consider that the green transformation offers enormous potential for further profitable growth both now and,in particular,in the medium and long term,for example,in the areas of hydro-gen,green chemicals,renewable energy,e-mobility a

191、nd supply chains.At the same time,we want to improve the performance of all our segments.The declared aims are for the segments to make a sustained positive value and cash flow contribution for the group and to pay a reliable dividend to our shareholders.To achieve all these goals,thyssenkrupp will

192、consistently pursue the route it has embarked on.The framework for this comprises three areas of action:portfolio,performance and green transformation.Portfolio A clear decision has been taken on the direction of thyssenkrupp:we want every individual business to develop in the best possible way and

193、to achieve a sustainable competitive position both eco-nomically and in terms of environmental and climate protection.Therefore,we continuously review and assess the development potential of all individual businesses to find the constellation that offers the best future prospects for them from the p

194、erspective of all stakeholders.To ensure the best possible development of our businesses and focus our portfolio on high-growth markets,we are also continuing to pursue avenues that could involve a change in their ownership structure.Having completed the divestment of individual activities in the co

195、urse of our transformation and closed the heavy plate business in the Multi Tracks segment,in July 2023 we successfully listed our electrolysis business,thyssenkrupp nucera,on the stock market.In this way,we have created new financial headroom for our hydrogen subsidiary so that it can continue to g

196、row and expand its market leadership.At the start of fiscal year 2023/2024 we took the next step in the sustainable realignment of our group:since October 1,2023,the bearings business Rothe Erde(reported separately as the Bearings segment as of September 30,2023)Uhde,Polysius and thyssenkrupp nucera

197、(all three reported in the Multi Tracks segment until September 30,2023)have been bundled in the new Decarbon Tech-nologies segment.All four businesses have key technologies for the decarbonization of the Company Strategy thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental

198、information about the group 30 By establishing this new segment,thyssenkrupp is positioning itself as a technology leader for the energy transition and ensuring full visibility of its extensive expertise for the green transformation.The former Multi Tracks segment has been dissolved.The remaining bu

199、sinesses from the Multi Tracks segment Automation Engineering and Springs&Stabilizers are now part of the Automotive Tech-nology segment.Forged Technologies(reported as a separate segment as of September 30,2023)is now part of Automotive Technology as the end-customer structure is the same.SEGMENT D

200、ECARBON TECHNOLOGIES AS A“GREEN INDUSTRIAL POWERHOUSE”AND SIMPLIFICATION OF THE PORTFOLIO STRUCTUREAutomotive TechnologyDecarbon Technologies(former Multi Tracks)2)BearingsForged TechnologiesSteeringBearingsBilsteinForged TechnologiesDynamic ComponentsAutomotive Body SolutionsAutomotive SystemsForge

201、d TechnologiesSprings&StabilizersAutomation EngineeringRothe Erde1)thyssenkrupp nuceraUhdePolysiusSprings&StabilizersAutomation Engineering1)until September 30,2023 Bearings2)Shareholding in TK Elevator has been allocated to“Reconciliation”in segment reporting since October 1,2023.thyssenkrupp annua

202、l report 2022/2023 2 Combined management report|Fundamental information about the group 31 Consequently,thyssenkrupps activities are now organized in five segments:Automotive Technology,Decarbon Technologies,Materials Services,Steel Europe,and Marine Systems.We will keep the Automotive Technology bu

203、siness within the group.However,in line with the industry trend for collaboration,alliances and development partnerships are also conceivable on a selective basis.We are continuing the disposal processes for Automation Engineering and Springs&Stabi-lizers initiated under the auspices of the Multi Tr

204、acks segment.In the new Decarbon Technologies segment our“green industry powerhouse”we want to sys-tematically access the enormous potential of the green transformation and translate it into value-creating growth.Taking thyssenkrupp nucera as an example,the aim is a turnaround to sustainably profita

205、ble business models.This applies above all for Polysius and Uhde,which have successfully embarked on the technological transformation towards green products and services in recent years.The next step is to drive forward the transformation of the business models for example,through increased modulari

206、zation and standardization of products and by extending the profitable service business.We also see scope for a common positioning and cross-selling potential because the busi-nesses grouped at Decarbon Technologies have a number of common features:many years of ex-perience,in-depth knowledge of int

207、ernational plant engineering,a successful installed base and close customer relationships.On the basis of its market position and competitive strength,we still see good development potential for Materials Services.As well as working to improve its performance,we stepped up investment in the future.W

208、e are continuing to drive forward the operational performance of Steel Europe by implementing the Strategy 20-30.Furthermore,at the end of July we received funding approval from the federal and state governments for the investment in the construction of the first direction reduction plant at our Dui

209、sburg site.The green transformation initiated by this opens up promising future prospects for the steel activities.It is also an important precondition for the goal of a stand-alone solution for Steel Europe.PORTFOLIO FROM FISCAL YEAR 2023/2024 ONWARDS1)September 30,2023 2)excluding Transrapid GmbH,

210、allocated to“Reconciliation”as part of segment reporting from October 1,2023AutomotiveTechnologyDecarbonTechnologiesMaterialsServicesSteel EuropeMarineSystems(pro forma)(pro forma)(pro forma)2)2022/2023Sales 7,910 millionAdjusted EBIT 266 million Employees1)31,6892022/2023Sales 3,438 millionAdjusted

211、 EBIT 28 million Employees1)15,1012022/2023Sales 13,613 millionAdjusted EBIT 178 million Employees1)16,3292022/2023Sales 12,375 millionAdjusted EBIT 320 million Employees1)26,8222022/2023Sales 1,832 millionAdjusted EBIT 73 million Employees1)7,745 thyssenkrupp annual report 2022/2023 2 Combined mana

212、gement report|Fundamental information about the group 32 At Marine Systems,both the cost-cutting and performance measures and the order situation show a positive trend.Additional growth opportunities for this segment come from rising global demand and long-term structural increases in defense budget

213、s.In view of the specific market and sector situation,alongside further measures to enhance the performance capability of this business,we are continu-ing to explore options to place it on a stand-alone basis.We are convinced that the planned decon-solidation of this segment offers the best perspect

214、ives for its future development.Performance The overarching goal of the transformation process is still to boost the performance and competitive-ness of all our businesses.This is not simply crucial for the ongoing strategic strengthening the group;it is also the necessary prerequisite for generatin

215、g a sustained positive free cash flow before M&A for the group and ensuring reliable dividend payments.Among other things,this requires the businesses to quickly and sustainably achieve the financial targets announced at the Capital Market Day in December 2021 which have now been adjusted to reflect

216、 the new structure despite the persistently challenging conditions.To support this and the long-term improvement in its performance,the group rolled out a holistic performance program in September 2023.The aim is for the businesses to raise their profitability to the competitive level and to make op

217、timal use of their market opportunities.The program,which is called APEX(“peak”),focuses on optimizing net working capital,with a stricter alignment of all businesses to competitive levels,stricter return and value creation criteria for investment decisions,continued development of our business mode

218、ls and an improvement in performance culture.Further details of our financial targets can be found in the“Targets”subsection.The businesses remain responsible for the implementation of the measures and their success.To manage this program,we have also set up a Transformation Office at thyssenkrupp A

219、G.This provides proven methodological expertise and process support,a platform for exchange and knowledge trans-fer,and extensive competitive analyses and best-practice comparisons.Experts from the businesses have now identified additional cash and performance measures at a range of workshops in the

220、 five areas of action:assets/CAPEX,business models and sales,material costs,net working capital and organization.Some of these are already being implemented at segment level.The Executive Board of thyssenkrupp AG will track the progress of APEX using defined milestones.Where necessary,the program wi

221、ll be supplemented by additional measures to ensure that the ob-jectives are achieved.Green transformation We have set ourselves the goal of being an enabler for the green transformation of our customers through our products and technologies.Thanks to our expertise in sustainable solutions in variou

222、s sectors,we are excellently positioned to drive forward the decarbonization of industry and benefit from the associated business opportunities.thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental information about the group 33 The businesses in the new Decarbon Technologies

223、 segment in particular have innovative technolo-gies that can reduce a large proportion of todays CO2 emissions:Rothe Erde is the global market leader in slewing bearings and is also one of the largest producers of seamless rolled rings,so it helps make the energy transition possible.There are enorm

224、ous global plans for the expansion of wind power,offering correspondingly high future growth potential for Rothe Erde.In the future,green hydrogen will be produced mainly in regions of the world where green electricity is available cheaply.Ammonia can be used as a transport medium to bring it to whe

225、re it is needed.Uhde operates worldwide as a plant engineer for the production of green ammonia and synthetic natural gas(SNG)for flexible,CO2-free use as an energy transport medium,a fuel or a base chem-ical in many energy-intensive sectors of industry.Cement production ranks alongside the steel an

226、d chemical industries as one of the main levers for a significant reduction in global CO2 emissions.With its green technologies,including its patented Oxyfuel plants,Polysius is one of the pioneers of the climate-neutral transformation of the cement industry.Market potential is high because cement p

227、roducers are under enormous pressure to re-duce their CO2 emissions.thyssenkrupp nucera is one of the few suppliers worldwide that can already offer technologies for industrial-scale production of green hydrogen.Following the successful IPO,thyssenkrupp AG will continue to support the development of

228、 thyssenkrupp nucera as a long-term anchor shareholder and benefit from its growth opportunities.With more than 600 completed projects,this company is the market leader in the chlor-alkali business.Our portfolio also includes other promising products and solutions that are essential for the success

229、of the green transformation.Examples are components for automotive engineering that are inde-pendent of the type of powertrain and thus enable sustainable mobility and benefit strongly from the electrification of cars and the use of digitalization by Materials Services to improve supply chains.Along

230、side the products and solutions that we are driving forward for our customers and partners,we are working intensively on the decarbonization strategy for our own group.The release of the funding of around 2 billion we had applied for the“tkH2Steel”project is a key step:thyssenkrupp will be-come a pi

231、oneer of climate-neutral steel production.This 100%hydrogen-capable direct reduction plant with annual production capacity of 2.5 million tons direct reduced iron allows savings of up to 3.5 million tons CO2 a year,making thyssenkrupp a significant player in the European hydrogen economy,with the Du

232、isburg site and the federal state of North Rhine-Westphalia as an anchor point for investments in the development of a cross-border hydrogen infrastructure.thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental information about the group 34 Management of the group The indicat

233、ors used throughout the group for profitability,profit,value added and liquidity form the basis for operational and strategic management decisions at thyssenkrupp.We use them to set tar-gets,measure performance and determine variable components of management compensation in addition to other factors

234、.For us,the most important financial indicators are adjusted earnings before interest and taxes(adjusted EBIT),net income/(loss)of the thyssenkrupp group,thyssenkrupp Value Added(tkVA),the return on capital employed(ROCE)and FCF before M&A(free cash flow before mergers and acquisitions).The Executiv

235、e Board also defines long-term targets for the businesses.These form the framework for the short-and medium-term financial targets and also for the budget and medium-term plans,which are prepared by all units.Adjusted EBIT EBIT provides information on the profitability of a unit.It contains all elem

236、ents of the income state-ment relating to operating performance.These include items of financial income/expense that can be characterized as operational,including income and expense from investments where there is a long-term intention to hold the assets.The thyssenkrupp group has a material investm

237、ent in the former Elevator Technology segment.This investment has no strategic or operational connection to the groups continuing operations.Its earnings are therefore by definition not part of financial in-come/expense from operations and so are not included in EBIT.Adjusted EBIT is EBIT adjusted f

238、or special items,i.e.excluding restructuring expenses,impairment losses/impairment reversals,dis-posal gains or losses and income and expenses in connection with CO2 forward contracts.It is more suitable than EBIT for comparing operating performance over several periods.THYSSENKRUPP KEY PERFORMANCE

239、INDICATORS Operating earnings+/operational components of financial incomeEBIT+/special itemsAdjusted EBITProfi tabilityOperating cash fl ow+/cash flows from investing activitiesFree cash fl ow+/cash inflows/outflows from material M&A transactionsFree cash fl ow before M&ALiquidityEBIT+/cost of capit

240、altkVAEBIT/Capital EmployedValue addedEBIT+/non operational components of statement of incomeNet income/(-loss)Profi tROCE thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental information about the group 35 The adjusted EBIT of the group and the segments and the special item

241、s are described in detail in the“Group review”and“Segment review”in the report on the economic position.Please also refer to the reconciliation in the segment reporting(Note 24).Net income/(loss)Net income is the profit generated by the group in the fiscal year.It is calculated as a positive balance

242、 of all income and expenses.Unlike EBIT,the calculation includes non-operating items,for example,interest and taxes.Net income therefore provides information on the groups earning power.Negative net income is referred to as a net loss.The net income/(loss)of the thyssenkrupp group is explained in de

243、tail in the section“Results of operations and financial position”in the report on the economic position.tkVA/ROCE tkVA is the value created in a reporting year.This indicator enables us to compare the financial suc-cess of businesses with different capital intensities.tkVA is calculated as EBIT less

244、 the cost of the capital employed in the operating business.Capital employed mainly comprises fixed assets,inven-tories and receivables.Deducted from this are certain non-interest-bearing liability items such as trade accounts payable.To obtain the cost of capital,capital employed is multiplied by t

245、he weighted average cost of capital(WACC),which includes weighted equity and debt.We use the return on cap-ital employed(ROCE)to determine the relative return generated.ROCE is the ratio of EBIT to capital employed.If ROCE exceeds WACC,i.e.,the returns due to shareholders and lenders,we have created

246、 value.Information on the development of tkVA/ROCE in the reporting year can also be found in the“Group review”section of the report on the economic position.FCF before M&A FCF before M&A permits a liquidity-based assessment of performance in a period by measuring cash flows from operating activitie

247、s excluding income and expenditures from material portfolio measures.It is measured as operating cash flow less cash flows from investing activities excluding cash inflows or outflows from material M&A transactions.This too links more directly to operating activities and facilitates comparability in

248、 multi-period analyses.A reconciliation and details on the development of FCF before M&A are provided in the analysis of the statement of cash flows in the“Results of operations and financial position”section in the report on the economic position.Capital employed x WACC=capital costs thyssenkrupp a

249、nnual report 2022/2023 2 Combined management report|Fundamental information about the group 36 Targets Financial targets Although market conditions remain challenging,our financial targets still apply.Our clear aim is for all businesses to make further significant progress in improving their operati

250、ng performance and make a sustained positive value and cash flow contribution to thyssenkrupp.Above all,by imple-menting APEX,the holistic performance program that we rolled out at the end of the reporting year,our goal is for the businesses to quickly and sustainably achieve the medium-term financi

251、al targets announced at the Capital Market Day in December 2021,which have now been adjusted to reflect the new structure,and to make optimal use of market opportunities.In the medium term,the groups adjusted EBIT margin should rise to between 4%and 6%.We are also working hard to achieve a significa

252、ntly positive free cash flow before M&A.Similarly,reliable payment of a dividend continues to have the highest priority for us.The medium-term targets for the individual businesses and for Corporate Headquarters,taking into account the realignment of the portfolio effective October 1,2023,are as fol

253、lows:Automotive Technology1)sales of over 7.5 billion a year,adjusted EBIT margin of 7-8%,and a cash conversion rate of at least 0.5 Decarbon Technologies sales of over 5.0 billion a year,adjusted EBIT margin of over 5%,and a cash conversion rate of more than 0.6 Materials Services increase shipment

254、 volumes to over 6 million tons,adjusted EBIT margin of 2-3%,a cash conversion rate of approximately 0.8 on a multi-year average and ROCE of over 9%Steel Europe increase shipment volumes to around 11 million tons,adjusted EBIT margin of 6-7%,cash conversion rate of over 0.4 and adjusted EBITDA per t

255、on of around 100 over the steel cycle Marine Systems annual sales growth of around 7%,adjusted EBIT margin of 6-7%,cash conver-sion rate of approximately 1.0 Corporate Headquarters further reduction in administrative expenses Further information on our segments and the respective measures to achieve

256、 the targets can be found in the“Segment review”in the report on the economic position.More information on our key performance indicators can be found in“Management of the group”in this section of the report;details on the forecast for the current fiscal year are provided in the“fore-cast report.”1)

257、Without Automation Engineering and Springs&Stabilizers thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental information about the group 37 Sustainability and Indirect Financial Targets Sustainability is a core component of thyssenkrupps mission statement and an integral part

258、 of our corporate strategy.Our aim is to offer innovative products,technologies and services worldwide that contribute to the sustainable success of our customers.Strategic sustainability management is co-ordinated by the Technology,Innovation&Sustainability department and the Chief Executive Office

259、r bears responsibility for sustainability.Together with the corporate functions,service lines and seg-ments,stakeholder requirements are continuously identified and targets and measures are derived to improve our sustainability performance.Sustainability activities at thyssenkrupp are governed by th

260、e Sustainability Committee,which consists of the Executive Board of the group,the CEOs of the segments,the heads of the corporate functions and experts.The Sustainability Committee decides on the ongoing development of existing measures and the implementation of innovative measures.It also takes dec

261、isions on the Indirect Financial Targets(IFTs).The responsibility for implementing the measures lies with the corporate functions,service lines and segments,which regularly report on progress.Detailed information on our sustainability activities in the areas of climate,energy and environment,purchas

262、ing,employees,occupational health and safety,social responsibility and compliance can be found in the relevant sections of the Annual Report and on our website.In the reporting period,thyssenkrupp also stepped up its focus on sustainability communication on topics such as climate change in its new e

263、mployer campaign“Be active.Join#GENERATIONTK.”The aim of this campaign is to raise the awareness among both our workforce and prospective employees that we as an in-dustrial company have enormous leverage to mitigate climate change.We offer opportunities to work together on efficient solutions and i

264、nnovative products that can reduce greenhouse gas emissions and on climate-friendly technologies and to drive them forward on an industrial scale as basis for a better future for coming generations and for thyssenkrupp.Another area of focus in the past fiscal year was the ongoing development of a fu

265、ture-oriented working culture,which we are supporting,for example,in cross-segment“Lean&Agile”projects to optimize workflows with broad-based em-ployee involvement.The project spectrum ranged from“smart investment in photovoltaics”to“the role of managers in the recruitment of employees.”As part of t

266、he“New Ways of Working”program,we are continuing to support our employees and managers with extensive offerings on hybrid work-ing and collaboration.In the next step,employees in Germany will be offered additional opportunities for mobile working abroad.Further information can be found in the releva

267、nt subsections of the“Em-ployees”section.The Sustainability Committee has set IFTs in the areas of climate,energy and environment,technol-ogy and innovation,employees,and purchasing.The annual targets are defined in consultation with the segments,which are responsible for achieving the targets and d

268、rive forward their implementation together with the businesses.Since fiscal year 2020/2021,we have been integrating sustainability activities gradually into the long-term compensation of the Executive Board and top-level manage-ment through the IFTs.This has already been implemented for the proporti

269、on of women in leadership positions and the accident frequency rate.To reflect our climate targets,since fiscal year 2021/2022,CO2 emissions intensity,calculated as the total of our direct emissions(scope 1)and emissions from purchased energy(scope 2)relative to sales,excluding the Steel Europe segm

270、ent,has been integrated into long-term compensation.For the Steel Europe segment,the volume of net CO2-reduced steel has been integrated into long-term compensation.The volume of net CO2-reduced steel is calculated from the reduced carbon input at the Duisburg site and the resulting CO2 savings,allo

271、cated over production volume.For fiscal year 2022/2023,we integrated the improvement in our employee Net Promoter Score(eNPS)into long-term compensation for the first time and the increase Company Sustainability SocietyEconomyEnvironmentProductsProcessesSupply chainOur understanding of sustainabilit

272、y thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental information about the group 38 in the proportion of women in leadership positions was once again included.The thyssenkrupp eNPS is part of the annual Employee Pulse Check survey,expressed by the willingness of employees

273、to recommend thyssenkrupp as an employer.For the current fiscal year,2023/2024,long-term com-pensation includes the newly developed indicator High Risk Supplier Reduction(HSR),which measures the annual reduction in the proportion of suppliers classified as potentially risky in the initial risk analy

274、sis performed in accordance with the German Act on Corporate Due Diligence Obli-gations in Supply Chains(LkSG)relative to the total population of potentially risky suppliers.In this way,we aim to achieve a general reduction in the risk of violating the legal provisions of this legisla-tion in respec

275、t of environmental protection,human rights,and occupational safety within our portfolio of suppliers.Further,if other risks are identified in the annual and ad-hoc risk analysis,these must be mitigated as soon as possible by prompt measures that is consistent with the provisions of the legislation.(

276、Further details can be found in the“Compensation report”).All established IFTs are aligned to the aim of continuous improvement and are constantly being adjusted and extended in parallel with our ongoing strategic development.We can report as follows on the achievement of the annual targets for our

277、IFTs:We significantly exceeded the energy efficiency target in fiscal year 2022/2023.The emissions intensity target for the group excluding the Steel Europe segment was to reduce emissions intensity by 1 ton CO2 per million sales to 36.5 tons CO2 per million sales in the reporting period.This target

278、 was exceeded,with an emissions intensity of 31.2 tons CO2 per million sales.The target for the Steel Segment in the reporting year was production of 50,000 tons net CO2-reduced steel;this target was exceeded with a production volume of 76,000 tons.Adjusted R&D intensity increased to 2.8%with higher

279、 R&D costs and was therefore with the companys target range of around 3.0%.The proportion of women in leadership positions increased steadily and met the target of 14%.The annual indicator of em-ployee satisfaction,based on willingness to recommend thyssenkrupp as an employer(eNPS)shows that we are

280、on the right track.The accident frequency rate was 2.4 and thus achieved the target set by thyssenkrupp.The target previously set for the group for the planning period has been reduced by 0.1 points as the targets were achieved ahead of schedule in recent years.The number of sus-tainability audits p

281、erformed significantly exceeded the target.thyssenkrupp annual report 2022/2023 2 Combined management report|Fundamental information about the group 39 OVERVIEW OF INDIRECT FINANCIAL TARGETS Group StatusSept.30,2022Status Sept.30,2023 ChangeSectionEnergy efficiency gains of 85 GWh in 2022/2023 GWh25

282、5340+33%Climate,energy and environmentAnnual reduction of emissions intensity1)by 1 t CO2 per million sales to 34.5 t CO2 per million sales in 2024/2025 t CO2 per million sales28.931.2+8%Adjusted R&D intensity of around 3.0%2.4 2.8+0.4%pts.Technology and innovationsIncrease the proportion of women i

283、n management positions by at least 1%per year to 17%by 2025/2026%13.114.6+1.5%pts.EmployeesReduce the accident frequency rate by at least 0.1 per year to 2.2 by 2023/2024 Accidents per millionhours worked2.32.4+4%EmployeesAt least 60 sustainability audits each year#108104(4)%Purchasing 1)Based on th

284、e group without the Steel Europe segment.The target for the current fiscal year 2023/2024 is to improve energy efficiency by at least 205 GWh.The aim is to reduce the emissions intensity of the group excluding the Steel Europe segment by 1 ton CO2 per million sales to 34.5 tons CO2 per million sales

285、 in fiscal year 2024/2025.For the Steel Europe segment,the target is to significantly increase the volume of net CO2-reduced steel to 500,000 tons by fiscal year 2024/2025.In the present fiscal year 2023/2024,adjusted R&D in-tensity should be around 3.0%and accident frequency should improve to 2.2.A

286、cross the entire company,we aim to increase the proportion of women in leadership positions to 15%in the current fiscal year and to 17%by fiscal year 2025/2026.As an indicator for employee satisfaction,we strive to continuously improve the employee Net Promoter Scores(eNPS)to a positive value by fis

287、cal year 2025/2026.The newly developed High Risk Supplier Reduction(HSR)indicator will be imple-mented as a new IFT at group level from the present fiscal year,analogously to its integration into long-term compensation.In the future,this indicator will be used to report how the measures we take redu

288、ce sustainability risks in our supplier portfolio.It therefore replaces the previous IFT for the number of sustainability audits performed.The target for the HSR to reduce the proportion of sup-pliers classified as potentially risky in the initial risk analysis performed in accordance with the Ger-m

289、an Act on Corporate Due Diligence Obligations in Supply Chains(LkSG)relative to the total popu-lation of potentially risky suppliers to 68.9%in fiscal year 2023/2024 and to 36.4%by fiscal year 2026/2027,which would be a total improvement of just under 50 percentage points.thyssenkrupp annual report

290、2022/2023 2 Combined management report|Report on the economic position 40 Report on the economic position Macro and sector environment Sluggish recovery of the global economy Germany increasingly lagging behind War in Ukraine,continued high inflation rates,ongoing supply bottlenecks and the shortage

291、 of skilled workers in industrialized countries are still holding back global economic expansion and slowing down the recovery.The many negative factors in the macroeconomic environment are hampering both investment and consumption.While global GDP increased by 3.1%year-on-year in 2022,growth is lik

292、ely to drop to a lower rate of 2.6%this year.The global growth rate will probably be just 2.3%in 2024.The industrialized countries are expected to generate GDP growth of 1.6%this year and just 1.2%in 2024.Economic output in the emerging markets is predicted to rise by 3.8%this year and 4.2%next year

293、.The outlook for global economic growth remains affected by uncertainty.Although the pace of infla-tion seems to have slowed for now,inflation rates are expected to remain very high in the foreseeable future,holding back both investment and consumer spending.It is unclear whether and,if so,when cent

294、ral banks will raise interest rates again.This could lead to instability in the financial sector and the failure of individual banks.A possible worsening of the debt problem,especially in some Euro-pean countries,as a result of central bank interest rate policy could cause major euro-zone econo-mies

295、 to slide into recession.Further escalation of the war in Ukraine could greatly hamper economic development,especially in western Europe.Moreover,possible intensification of the numerous other geopolitical and trade conflicts such as an escalation of the China-Taiwan conflict could lead to major dis

296、tortion of economic growth.In addition,there are risks for various key sectors because the semi-conductor supply situation remains tense.High energy,material and raw material prices,especially in industrialized regions,entail serious risks for global growth prospects.Floods and natural catas-trophes

297、 caused by global climate change are a constant threat in many regions.The upswing in the EU economy,driven mainly by the service sector,has cooled down noticeably in 2023.Following growth of 0.4%in the 2nd quarter of 2023,the economy grew by just 0.1%in the 3rd quarter of 2023(compared with the pri

298、or-year period in each case).The weak development of energy-intensive industries,in particular,is hampering the macroeconomic development.Inflation rates,which are stagnating at a high level,and the increasing shortage of skilled workers in many sectors of the economy are significant risk factors fo

299、r future development.In view of this,GDP growth expectations for 2023 are just 0.4%;slightly higher growth of 0.8%is predicted for 2024.2.6%The global economy is expected to grow by 2.6%in 2023 and by 2.3%in 2024.thyssenkrupp annual report 2022/2023 2 Combined management report|Report on the economi

300、c position 41 A decline of 0.4%in economic output is currently forecast for Germany in 2023.The country therefore lags well behind the development in neighboring European countries.In the 3rd quarter of 2023,the German economy contracted by 0.7%year-on-year,following a slight decline of 0.1%in the 2

301、nd quarter of 2023.The outlook also remains very subdued.Downside factors include cost inflation,especially in energy-intensive industries,the increasing shortage of skilled workers and persistently high inflation,which is adversely affecting investment and consumption.A slight upturn in the econ-om

302、y and growth of 0.5%are forecast for 2024.In the USA,GDP is expected to rise by 2.5%in 2023.In the 3rd quarter of 2023,GDP grew by 3.0%year-on-year,following a rise of 2.4%in the 2nd quarter of 2023.Overall,the economy and the US labor market have proven unexpectedly robust,especially in the 2nd hal

303、f of 2023.This is also re-flected in the stable development of corporate investment and consumer spending.The Federal Re-serve is expected to raise interest rates further,which could dampen future growth prospects.At present,economic growth is only expected to be 1.6%in 2024.The economic outlook for

304、 China in 2023 remains well below the growth rates in the years before the Covid pandemic,with GDP forecast to grow by 5.0%.The economic recovery remained sluggish in the 3rd quarter of 2023,with growth of 4.4%(compared with the prior-year period);in the 2nd quar-ter of 2023,the Chinese economy stil

305、l grew by 6.3%.Weakening exports,palpable consumer re-straint and the concerns that the real estate crisis could worsen are putting a sustained brake on the Chinese economy.At present,GDP is expected to grow by just 4.6%in 2024.The Indian economy is continuing its robust growth with GDP forecast to

306、rise by 6.6%in 2023.In the 3rd quarter of 2023,economic output increased by 6.2%(compared with the prior-year period)and in the 2nd quarter of 2023 it rose by 7.8%.Overall,the Indian economy is proving resilient to negative influences;key factors are still consumer spending and the positive developm

307、ent of the service sector.The future development could be affected by high inflation,with negative effects such as the sharp rise in the cost of food on consumer spending and weaker demand for exports because of the weak global economy.Nevertheless,looking ahead to 2024,GDP is still expected to grow

308、 by 6.2%.In 2023,Brazilian GDP is forecast to rise by 3.2%.In the 3rd quarter of 2023,GDP grew by 3.0%year-on-year.In the 2nd quarter,growth was 3.3%.Economic growth in Brazil is also being driven principally by the service sector.That said,high inflation is expected to have a negative impact on con

309、sumer spending.The weak economic situation in manufacturing industry overall and especially in truck production is attributable to more stringent environmental regulations.Overall,growth of only 2.0%is forecast for 2024.GDP in Germany to decrease by 0.4%in 2023;slight recovery in 2024 thyssenkrupp a

310、nnual report 2022/2023 2 Combined management report|Report on the economic position 42 GROSS DOMESTIC PRODUCT Real change compared to previous year in%20231)20241)European Union 0.40.8 Germany(0.4)0.5 Eastern Europe and Central Asia 2.92.8 USA 2.51.6 Brazil 3.22.0 Japan 1.70.9 China 5.04.6 India 6.6

311、6.2 Middle East&North Africa 1.82.7 World 2.62.3 1)Calender year,Forecast(partly)Source:S&P Global Market Intelligence,Global Economy(October 2023)Industrial development affected by various uncertainties Automotive Global automotive production will probably continue to recover in 2023.The steady eas

312、ing of the bottlenecks affecting the global supply chains continued during the year.In 2023,output of cars and light commercial vehicles is approaching the level registered in 2019,the last year before the pandemic.In China,the worlds largest automotive market,production and sales volumes are also e

313、xpected to continue to rise in 2023.Automotive production in Western Europe will probably increase year-on-year.Nevertheless,the considerable declines in previous years cannot be offset so output will remain significantly lower than in 2019.Sales volume should develop positively compared with 2022,b

314、ut still be significantly lower than in 2019.Domestic output in Germany will probably be up slightly in 2023 compared with the previous year but will remain below the pre-pandemic level of 2019 next year as well,even though further growth is forecast.Domestic sales volumes in Germany will probably b

315、e higher than in the prior year.North American automotive output will most likely continue its growth track in 2023 and projections for further growth suggest that it could reach the pre-pandemic level in 2024.Volume sales in North America are likely to be higher in 2023 than in the previous year.Ag

316、ainst the background of concern about a recession,high inflation,rising interest rates and the weakening of the global economy,production and sales volumes remain comparatively low.Overall,automotive output is expected to move sideways in 2024.Automotive production still signifi-cantly below previou

317、s production rec-ords in 2023 despite an upward trend thyssenkrupp annual report 2022/2023 2 Combined management report|Report on the economic position 43 IMPORTANT SALES MARKETS 202220231)20241)Vehicle production,million cars and light trucks2)World 82.388.6 89.1Western Europe(incl.Germany)9.911.1

318、11.0Germany 3.64.3 4.5North America(USA,Mexico,Canada)14.315.2 16.3USA 9.89.9 11.2Mexico 3.33.8 3.8Japan 7.48.6 8.2China 26.227.6 27.8India 5.15.5 5.5Brazil 2.22.2 2.3Machinery production,real,in%versus prior year World 2.22.2 3.3European Union 4.01.3 1.3Germany 0.71.1 0.7USA 1.9(1.8)(0.3)Japan 8.0(

319、2.9)0.2China 0.74.3 5.2India 6.26.0 6.1Construction output,real,in%versus prior year World 2.53.0 3.3European Union 3.00.2 0.5Germany(1.9)(1.4)0.9USA(8.2)(1.2)1.3Japan(4.0)1.7 1.2China 7.05.4 5.4India 8.89.7 7.5Demand for steel,in%versus prior year World(3.3)1.8 1.9Germany(8.8)(10.0)10.6EU(27)(6.9)(

320、5.5)6.0USA(2.6)(1.1)1.6China(3.5)2.0 0.0 1)Calender year,forecast(partly)2)Passenger cars and light commercial vehicles up to 6t Sources:S&P Global Market Intelligence,Comparative Industry(October 2023),S&P Global Mobility,LV Production(October 2023),IHS Markit,Oxford Economics,worldsteel Machinery

321、Sales in the global machinery sector will probably rise by 2.2%year-on-year in 2023.The general economic weakness,continued high interest rates and the sustained economic weak-ness in the industrialized nations are holding back growth.Growth of 3.3%is forecast for 2024.The indicators in China point

322、to growth of 4.3%in 2023 following a weak year in 2022.Subdued momen-tum and 5.2%growth are also expected for 2024.Following a strong performance in the first half of 2023,the economic situation in the US machinery sector is currently cooling sharply.Overall,a de-cline of 1.8%is forecast,with the se

323、ctor expected to stagnate in 2024.The machinery sector in the European Union is also losing momentum rapidly at present.Only moderate growth of 1.3%p.a.is International machinery production will increase by 2.2%in 2023.thyssenkrupp annual report 2022/2023 2 Combined management report|Report on the e

324、conomic position 44 forecast for this region in 2023 and 2024.In particular,the shortage of skilled workers and the weak-ness of the German machinery sector are dampening output in Europe.At present,there is no sign of a positive trend reversal in the German machinery industry.Although the sector is

325、 still benefiting from well-filled order books from previous years,order intake has been declining sharply since summer 2023.In August 2023 alone,orders contracted by 21%year-on-year in real terms.Therefore,growth prospects are well below the European average.The main rea-sons for the weak developme

326、nt of the sector include record energy prices,the increasingly negative impacts of the shortage of workers and the weakness of international markets.Consequently,growth of only 1.1%is now forecast for 2023 as a whole;in 2024,growth is expected to be 0.7%.Construction Following the overall weakness o

327、f the previous year,output in the construction industry worldwide is expected to rise by 3.0%in 2023.The growth drivers remain the momentum in the developing countries and emerging markets and state-aided investment in the infrastructure sector.The weaker development of residential construction is h

328、olding back growth in most regions.An in-crease of 3.3%is forecast for 2024.The development of the construction industry in the European Union is significantly below the global trend.A slight increase of 0.2%is predicted for 2023.Growth looks set to remain subdued in 2024 as well,with a growth rate

329、of 0.5%.In Germany,there are still numerous adverse factors affecting the construction industry.For instance,continued high borrowing costs are still holding back demand in the private sector.Record-level energy and living costs are a further constraint on investment in housing construction.Sharply

330、higher construction costs are also dampening construction of commercial properties.Moreover,there have been significant declines in new orders for roadbuilding and office premises.Overall,there has been a significant deterioration in business sentiment in the construction sector and in order expecta

331、tions for the coming year.Fol-lowing a decline of 1.4%in 2023,an increase of 0.9%is anticipated for 2024.In China,the construction sector will probably grow by 5.4%in 2023.However,potential escalation of the crisis in the real estate market represents a massive risk for the sector.By contrast,growth

332、 could be boosted by intervention by the Chinese state to support the sector and further spending programs,especially for infrastructure.For 2024,the provisional expectation is a similar growth rate of 5.4%.Construction activity in the USA is currently on an upward trend following a very weak year i

333、n 2022.Although high interest rates and construction costs are still having a detrimental effect on private housing construction,state spending programs are injecting high momentum,especially in the infrastructure and energy sectors.The sector is still expected to contract by 1.2%in 2023 but slight growth of 1.3%is forecast for 2024.thyssenkrupp annual report 2022/2023 2 Combined management report