Anticipated Financial Position

Despite the implementation of an extensive investment program in the Steel Division, we have set our Group’s investment budget in the financial year 2010 at a figure below that of the previous year (€ 677 million). Together with follow-up investments already approved in previous years, the cash-related portion of the 2010 budget of around € 500 million will be substantially lower than the 2009 volume. As before, investments will be effectively triggered on a step-by-step basis and in accordance with the development of profit and liquidity.

Based on the foreseeable amount of investment, the financial resources required for the financial year 2010 will be higher than depreciation and amortization, with the result that the excess amount will have to be funded not only by the cash flow from operating activities, but in addition by available cash and cash equivalents. This is feasible from the standpoint of management, as there is sufficient leeway.

The financial position of our Group should be comparatively sound at the end of the year as well, especially in view of the financial transactions effected in 2009. External financing measures, such as borrowing, are not currently envisaged. However, measures of this kind may become feasible and realizable in the context of larger acquisition projects or if there is a substantial deterioration in the general environment.