00 Lagebericht 2016-2017 Master - thyssenkrupp AG

1 Annual Report 2016 / 2017 Annual Report 2016 / 2017 BUSINESS AREAS~ billion6 regional HQs79 countries ~ 2,000 locationsemployees work every day to ensure thyssenkrupp can implement unique projects.(as at September 30, 2017)Order intake in the 2016 / 2017 fiscal year was the best since the start of our Strategic Way generated by thyssenkrupp in fiscal 2016 / 2017 Components TechnologyIndustrial SolutionsMaterials ServicesElevator TechnologySteel Europethyssenkrupp at a glanceTHYSSENKRUPP IN FIGURES(continuing operations)

2 2016 / 2017 Change in %Order intake million42,75618 Sales million41,4479 Adjusted EBIT million1,72215 Net income million271 24 Earnings per share 32 Free cash flow before M & A million 855 Net financial debt 1 million1,957 44tkVA 1 million 651 Market capitalization million15,61330 Dividend per share 2 1 Full Group 2 Proposal to the Annual General Meeting158,7394 2,756 ORDER INTAKE in millionAt thyssenkrupp we work closely with our customers to develop solutions for the digital age.

3 From steer-ing systems that permit autonomous driving to eleva-tors that can move sideways to assembly lines for battery modules there are many examples of how we as a diversified group are providing concrete answers to the global questions posed by digitization, urbanization and mobility. And key to what everyone at thyssenkrupp does from shop floor to board-room is all our efforts to find new solutions, the most important element is our people. They are what makes the difference; with their curiosity, creativity and intuition they are a unique asset, now and in the future.

4 We are convinced that we do things better when we work together in our own teams, with customers and with call it: engineering. tomorrow. takes great people to do great JiangNo idea should be discarded at least not until other people have heard AgborWe know what is needed to make progress passion, thinking outside the box, and of course: lay PircherIt s the We that makes us different. It s the way we work together that makes us NarobeThe visionaryFor Andreas Meschede, thyssenkrupp s digital future starts in the analogue world.

5 Up to his ankles in straw at a German farm-yard, on the steamy streets of Singapore, or on the floor of a conference room, surrounded by Lego bricks and people build-ing with them: The physicist regularly works at places that help him inspire thyssenkrupp employees to shift perspective in a playful way. Meschede coordinates the Groupwide foresight process, in which thyssenkrupp taps into the creativity of its employees to develop future scenarios. It s not possible to project or calculate the distant future in a straight line.

6 We have to allow ideas that go beyond what we can imagine today but are still logically and physically possible. Interdisciplinary collabo-ration is a key factor for the success of the innovation process. With around 160 colleagues from all business areas, external experts and lateral thinkers Meschede develops scenarios for living and working further into the future. Megacities, mobility, agriculture, air, water and energy are the themes they address. According to Meschede, the central questions are: What is important in the long term, what can become established and shape people s lives?

7 And what will our customers need from us then? The Future of production is one theme with two fundamen-tally different assumptions: What would happen if in 2030 we had total data freedom and placed huge trust in machines? And at the other extreme, what would happen if industry never made it to but was deliberately stopped at What im-pact would that have on production and distribution? Accord-ing to Meschede, defining alternative scenarios allows us to think ahead along more concrete lines and come up with solu-tions today that customers will need tomorrow.

8 The aim is to make strategic innovation decisions that will culminate in new projects, research and applications. So far around 270 ideas have been developed in this way. The thyssenkrupp team working on the Industrial Data Space project (see page on the right) has also taken part in the Foresight process and produced initial results for Industry aim is to make strategic innovation Andreas Meschede, Innovation data guardianIndustry , the linking of industrial production with modern information and communications technology, is one of the most important areas of development for strong, forward-looking industrial enterprises.

9 But without people like Mona Wappler, companies would quickly get bogged down. I want to make a contribution to the digitization of thyssenkrupp , she says. With a background in economics she is helping the company grad-ually learn one of the key skills of the new information era: how to share acquired data in the right way with the right partners. As head of the Industrial Data Space project at thyssenkrupp , she knows that anyone who loses control over their data will also lose out in the race to digitization.

10 The Industrial Data Space (IDS) aims to permit the secure exchange of data be-tween companies while enabling them to maintain sovereignty over their data. Anyone exchanging data in the Industrial Data Space can define exactly which partner may use what data and for how long. The Industrial Data Space research project and the user association of the same name are driving the develop-ment of a standard for the safe and sovereign exchange of data. Twelve Fraunhofer Institutes and more than 70 companies among them thyssenkrupp are now on s a challenge in which Mona Wappler s perseverance, will-ingness to learn and analytical skills are a great advantage.