Financial Statements and Management Report - Thyssenkrupp

1.6 Management report Expected developments and associated opportunities and risks
Legal risks associated with third-party claims
Claims can result in legal risks. In the associated legal proceedings ThyssenKrupp is represented by its own
experienced corporate counsel, if necessary with the additional support of external attorneys. We minimize
claims for damages under product liability law through the high quality of our products.
When contractual partners assert claims against ThyssenKrupp under plant construction, supply and service
contracts, we examine the individual claims carefully and make provision where payment obligations are
considered likely.
Our strict compliance program reduces the risk of antitrust violations and corruption at all levels of the
Group. In the Compliance Commitment the Executive Board of ThyssenKrupp AG states that antitrust
violations and corruption are not tolerated in the Group. We monitor and regularly update our supplementary
policies and publications as well as our internal compliance organization.
We have separated the legal counsel service from compliance in terms of organization and staff. Within
compliance the advisory function was also segregated from general principles and compliance
investigations. In May 2011 we resolved further measures which will be implemented in the framework of a
multi-year program. These measures include an increase in the number of employees in the compliance
organization, namely by appointing regional compliance officers in selected regions.
We appointed KPMG AG to audit our compliance program to auditing standard 980 of the Institute of Public
Auditors in Germany (Institut der Wirtschaftsprüfer e.V.) for the period April to September 2011. The audit
covered the structure, implementation and in particular the effectiveness of our compliance program, and
was therefore the most extensive audit possible under IDW PS 980. Due to the special rules applying in the
USA, the subsidiaries in this country were not part of the audit. KPMG confirmed that the compliance
management system at ThyssenKrupp AG is appropriately implemented and was effective in the period
reviewed. Insofar as recommendations for compliance work were made on the basis of the audit findings,
their implementation is being examined.
In extensive training programs and an interactive compliance e-learning program, we inform our employees
about compliance requirements, infringement risks and potential sanctions. In 2010/2011 more than 3,500
employees of ThyssenKrupp AG and the Group companies worldwide took part in classroom training
sessions. To supplement the compliance training program, we have introduced a Groupwide interactive elearning
program comprising modules on competition law and combating corruption, which is available in
eleven languages. The second cycle of the e-learning program which started in August 2008 is aimed at
refreshing the knowledge of employees who have taken part previously and for the first time training
employees outside Europe. Since the launch of the second cycle, 25,600 employees of ThyssenKrupp AG
and the Group companies worldwide have completed online training courses on competition law and anticorruption
policies.
A report on pending litigation and claims for damages can be found in the Notes.
Regulatory risks
Our business operations are in some cases closely dependent on the legal framework at national or
European level. Developments such as changes to competition rules in individual sections of the markets
can involve risks for us and lead to higher costs or other disadvantages. To contain these risks we maintain
close working contact with the relevant institutions to prevent distortion of competition.
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