2005-2006 Financial Statements and Management Report

10
€489 MILLION OF UNAPPROPRIATED
NET INCOME TO BE USED TO
DISTRIBUTE DIVIDEND.
Income of ThyssenKrupp ag
The net income of ThyssenKrupp ag in the reporting year according to hgb (German gaap) amounted
to €1,118 million, compared with €920 million the year before. Income from investments decreased
by €409 million to €1,131 million due to the significantly higher profit transfer in the prior year from
ThyssenKrupp Real Estate GmbH, resulting from the disposal of the residential real estate business.
The utilization of the accrued liability recognized at ThyssenKrupp ag in 2004/2005 for valuation risks
from pension liabilities of subsidiaries increased profits by €531 million. The corresponding risks were
recognized at the subsidiaries and reduced their profit transfers.
Other operating income decreased only slightly by €15 million. After deducting expenses for Group
management activities, pension costs for former employees of ThyssenKrupp ag and its predecessor
companies and net interest expense of €162 million, income from ordinary activities amounted to
€1,179 million, compared with €1,578 million in the previous year.
Extraordinary income includes the receipt of a €153 million break-up fee from the terminated acquisition
of Dofasco and costs of €40 million from the merger of ThyssenKrupp Materials & Services GmbH
into ThyssenKrupp ag. In the prior year, the extraordinary loss included the impairment of the carrying
value of the investment in RAG Aktiengesellschaft in the amount of €512 million.
Income tax expense amounted to €174 million; this amount is influenced by the utilization of tax loss
carryforwards still existing at September 30, 2005.
Of the resultant net income of €1,118 million, €570 million was transferred to retained earnings.
Included in this is the write-up on the shares of ThyssenKrupp Steel Beteiligungen GmbH in accordance
with Art. 58 par. 2a AktG of €22 million net of tax.
The remaining unappropriated net income is €548 million. Subject to the approval of the Annual
General Meeting, this amount is to be used to distribute a dividend of €489 million. An amount of
€33 million is to be transferred to retained earnings to strengthen stockholders’ equity. The balance
of €26 million is to be carried forward.
€1.00 dividend per share
The legal basis for the dividend payment is the hgb unappropriated net income of ThyssenKrupp ag in
the amount of €548 million (previous year €448 million). It comprises the hgb net income of Thyssen-
Krupp ag in the amount of €1,118 million (previous year €920 million) less €570 million which has
already been transferred to retained earnings by the Management.