Financial Statements and Management Report - Thyssenkrupp

1.2 Management report Results of operations
Earnings and dividend
The net income of ThyssenKrupp AG in 2010/2011, determined in accordance with HGB rules, came to
€494 million, compared with €800 million in the prior year.
Net income from investments increased by €247 million to €1,378 million. Income from profit and loss
transfer agreements rose by €233 million to €1,388 million. In particular, income from ThyssenKrupp
Technologies Beteiligungen GmbH increased by €363 million to €437 million (prior year €74 million) and
from ThyssenKrupp Elevator AG by €79 million to €111 million (prior year €32 million). However, Thyssen
Stahl GmbH with €754 million (prior year €813 million) and ThyssenKrupp Materials International GmbH with
€97 million (prior year €178 million) transferred altogether €140 million less than in the prior year. In
addition, ThyssenKrupp Dienstleistungen GmbH posted a loss of €46 million, compared with a profit of €17
million in the prior year. Altogether, loss transfers increased by €22 million. At the same time, income from
investments rose by €35 million; this was primarily due to Krupp Hoesch Stahl GmbH, which distributed a
profit of €42 million, compared with only €5 million in the prior year.
Other operating income increased primarily because of higher intercompany tax allocations. Due to the
transfer of income from subsidiaries and compensation received from a subsidiary of €211 million, other
operating income increased by €298 million. In addition, income from the use of the corporate mark by
Group companies rose by €20 million. Income was reduced by the fact that a special item with an equity
portion of €162 million was reversed in the prior year. Income from the charging-on of licenses, financing
costs and other services increased insignificantly.
Impairment of €315 million related to financial assets and shares in affiliated companies classed as
operating assets.
General administrative expenses increased by €67 million – primarily because of increased IT services,
higher consulting services and other non-personnel costs.
The €431 million increase in other operating expenses reflects three main factors: the €159 million loss from
the disposal of financial assets, which included €158 million attributable to ThyssenKrupp Italia S.p.A., the
income tax expense of €55 million and a credit of €211 million to a subsidiary (see other operating income).
Net interest comprises interest expense and income from both intra-Group and external financing. The
increase in net interest expense is mainly the result of intra-Group capital allocations at Group companies,
the addition of accrued interest on pension obligations in accordance with § 253 HGB of €20 million and the
addition of accrued interest on other non-current provisions of €9 million.
After taking into account these effects, income from ordinary activities came to €532 million, compared with
€592 million in the prior year.
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