2005-2006 Financial Statements and Management Report

ThyssenKrupp Dienstleistungen GmbH received an appropriate
compensation for this, which will be adjusted in the event of major
changes to the main assumptions underlying the calculation. A
corresponding adjustment was made in the year under review.
13 OTHER FINANCIAL OBLIGATIONS
AND OTHER RISKS
Obligations from rental and lease agreements are due in the coming
fiscal years as follows:
million €
2006/2007
2007/2008
2008/2009
11.9
9.3
4.9
A liability obligation in the amount of €2.8 million (previous year
€2.8 million) exists vis-à-vis Technische Gase Hoesch Messer
Griesheim GmbH & Co. KG.
On October 11, 2005, the European Commission announced
the initiation of administrative fine proceedings against companies
in the elevator and escalator industry. This has also affected some
European companies of the ThyssenKrupp Group. Prior to the
initiation of the administrative fine proceedings, the European
Commission had conducted pre-investigations at the beginning
of 2004. As part of these pre-investigations, several revisions
were carried out at the four major elevator manufacturers in the
European Union and at the corresponding associations. Subject
of the administrative fine proceedings is the allegation that the
respective companies are accused of having violated the European
antitrust law in connection with the manufacturing and servicing
million €
Foreign currency forward contracts
Currency options
Foreign currency derivatives
Cross-currency swaps
Interest-rate swaps
Interest rate derivatives
Commodity forward transactions
Commodity derivatives
Total
FINANCIAL STATEMENTS AND MANAGEMENT REPORT Notes 81
of elevators and escalators as well as the selling of the respective
spare parts in certain member states of the European Union.
ThyssenKrupp is cooperating with the antitrust authorities. The
eu Commission has not yet declared the amount of any possible
administrative fine and therefore ThyssenKrupp is not yet able to
estimate the financial consequences of the administrative fine
proceedings.
On January 26, 2006 ThyssenKrupp ag signed an agreement
with Mittal Steel Company n.v. under which ThyssenKrupp
undertakes to purchase up to 100% of the shares in Dofasco
in the event that Mittal acquires Arcelor. This can lead to an
obligation of up to €4.0 billion.
14 DERIVATIVE FINANCIAL INSTRUMENTS
In connection with the management of currency, interest-rate and
commodity price risks, ThyssenKrupp ag uses derivative financial
instruments. The values of these derivative financial instruments
are as follows:
Derivative financial instruments and the corresponding underlying
transactions can be treated as a single valuation unit if evidence
of a clear hedge relationship can be provided. In these cases the
underlying transactions are recognized at the contractually agreed
hedge rates and the derivative financial instruments are not reported
separately.
ThyssenKrupp ag only uses derivative financial instruments
matched directly to hedged transactions. ThyssenKrupp ag
therefore has no reportable risks, because any negative fair
values applicable to derivative financial instruments are set
against positive developments in the associated underlying
transactions.
The following methods are used to determine the fair value:
Nominal value
Sep. 30, 2005
953.1
—
953.1
750.0
35.8
785.8
—
—
1,738.9
Fair value
1.1
—
1.1
(72.2)
(2.5)
(74.7)
—
—
(73.6)
Nominal value
Sep. 30, 2006
193.8
28.0
221.8
750.0
35.8
785.8
22.4
22.4
1,030.0
Fair value
(8.4)
(0.8)
(9.2)
(48.3)
(1.1)
(49.4)
1.4
1.4
(57.2)