Earnings situation within the Group

1) In regard of the participation in Hüttenwerke Krupp Mannesmann
2) EBIT = EBT plus interest paid (excluding interest element in allocations to pension provisions); EBITDA = EBIT plus depreciation and amortization
3) EBIT in relation to the total of shareholders' equity (without calculation of accrued and deferred taxes), tax provisions, interest-bearing liabilities (excluding pension provisions) and liabilities from financial leasing, forfaiting and asset-backed securitization
4) Annualized
5) Excluding financial assets
6) Including investments, e.g.securities and structured investments

In accordance with expectations, the Salzgitter Group was exposed to considerable pressure from the impact of the global financial and economic crisis in the first half of the financial year 2009. This was reflected above all in the results of the Steel, Trading and Technology divisions. While the positive contributions made by the tubes product segments, the Aurubis AG holding, and extensive funds invested had a stabilizing counter-effect, they were unable to compensate for the negative influences of the economic environment.

The Group’s external sales contracted in almost all product segments, by 34 % to € 4,125.7 million (first half year of 2008: € 6,233.4 million), owing to significant declines in shipments and selling prices.

In the first half-year, the Salzgitter Group recorded a pretax loss of € 195.2 million (first half of 2008: € +646.4 million). This result has absorbed significant accounting measures mainly in the Steel Division relating to adjustments to the value of inventories, along with other measures carried out in the 2008 financial statements, to ensure that the Group remains free from hidden inventory valuations burdens.

The 23 % holding in the leading European copper producer Aurubis AG, a company consolidated at equity, contributed very satisfactory after-tax earnings of € 32.7 million. The consolidated after-tax result came to € -165.0 million (first half of 2008: € +436.9 million), which brings earnings per share to € -3.07. Return on capital employed (ROCE) from industrial business stood at -12.9 % (first half of 2008: +36.8 %); including around € 1.5 billion in cash and cash equivalents it came to -8.1 % (first half of 2008: +25.9 %).