2005-2006 Financial Statements and Management Report

FINANCIAL STATEMENTS AND MANAGEMENT REPORT Risk report/Subsequent events, opportunities and outlook
SUBSEQUENT EVENTS, OPPORTUNITIES AND OUTLOOK
Despite the slight weakening of the global economy, the market environment will remain
generally favorable. Against this general background, ThyssenKrupp will maintain its positive
performance. For 2006/2007 we expect sales in the region of €47 billion and earnings before
taxes in the region of €2.5 billion.
SUBSEQUENT EVENTS
There were no significant events requiring disclosure after the balance sheet date.
FOCUS OF THE GROUP IN THE NEXT TWO FISCAL YEARS
ThyssenKrupp will maintain its general focus as a worldwide supplier of steel, capital goods and services.
We have outstanding expertise and profound market knowledge in these areas. Our highly qualified
employees and international network of production operations and sales establishments justify our
focus on these established business activities. The upward trend of the world economy is expected to
promote further growth in our business.
Global growth slightly weaker
The global economic upswing will continue in 2007, albeit at a slightly slower rate. With a 4.5%
increase in world gdp, growth will be only slightly lower than in 2006 at 5.2%. Beyond this forecast
horizon we expect slightly slower growth of the world economy. In view of the high raw material and
oil prices worldwide, the risks to economic growth remain undiminished.
Gross domestic product* change compared to previous year in %
Germany
France
Italy
United Kingdom
Russia
Rest of Central/Eastern Europe
USA
Brazil
Rest of Latin America
Japan
China
India
Rest of Asia
World
* Forecast
1.2
1.6
1.0
2.3
2.5
2.5
5.7
5.3
Continuing high growth momentum is expected in the countries of Asia. In China in particular, the
economic upswing will continue thanks to strong investment. In India, too, the pace of growth is not
expected to slacken in 2007. Above-average growth rates are also forecast for most countries of Latin
America and Central and Eastern Europe.
In the industrialized countries, economic growth is expected to cool. Higher interest rates and the
weakness of the property market are dampening growth prospects in the usa. Weaker growth is forecast
for Japan, too, due to slowing investment and exports. A similar pattern is expected in the euro zone.
In Germany in particular, economic growth is likely to weaken at least temporarily, slowed above all by
a tight fiscal policy and stagnating private consumption.
4.0
4.5
5.1
5.8
7.6
9.0
GLOBAL GROWTH
WILL SLOW SLIGHTLY
TO 4.5% IN 2007.
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