• Focused set-up to enable better development of industrial goods and materials businesses

• Both businesses to have direct access to capital markets

• Supervisory Board to decide on Management Board proposal on Sunday

At an extraordinary meeting on Sunday, September 30, 2018, the Executive Board of thyssenkrupp AG will propose to the Supervisory Board that the Group be split into two much more focused and efficient companies. The capital goods and materials businesses shall be managed in future as independent, listed companies with direct access to the capital markets. The Management Board is convinced that this new structure will allow the businesses to develop better and concentrate on their strengths. Both companies will continue to use the name thyssenkrupp.

Guido Kerkhoff, Chairman of the Management Board of thyssenkrupp AG: "In recent weeks, a wide variety of strategic options for thyssenkrupp have been discussed in public and very often exaggerated. But the world is not black and white. There is not only 'Continue like this' and destruction, but always alternatives that take into account the responsibility both for our employees and for the future viability of the company. That's exactly what we were looking for as management board - without fear and dreaming. We are now proposing a solution that not only creates value for our shareholders, but also significantly improves the development prospects of our businesses".

The separation into two companies will take the form of a spin-off. After the split, thyssenkrupp AG shareholders will hold two shares: one of the future thyssenkrupp Materials AG (formerly thyssenkrupp AG) and one of the new thyssenkrupp Industrials AG. Existing stockholders will continue to hold 100 percent of thyssenkrupp Materials AG and initially a clear majority of thyssenkrupp Industrials AG. The remaining stake will initially be held by thyssenkrupp Materials AG. This will ensure an adequate capital base of thyssenkrupp Materials AG. Liabilities and pension obligations are allocated adequately to both companies. This shall provide both entities with a better capital base, giving them a good start.

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