SELECCIÓN DE CEPAS DE INTERÉS

The amounts taken into account in the statement of cash flows correspond to the item "Cash and cash equivalents" as reported in the statement of financial position and also include the cash and cash equivalents relating to the disposal groups including the discontinued operations until the time of their actual sale. For the 1st quarter 2012/2013 the discontinued operations include cash flows attributable to the operations of Stainless Global.

In the reporting year there was a net cash inflow from operating activities of €887 million. The €101 million increase resulted mainly from the absence of the cash outflows from discontinued operations reported in the prior year in the amount of €195 million. The cash inflows from continuing operations decreased by €94 million to €887 million; strongly improved net income before impairment losses, deferred taxes and income from investments accounted for using the equity method was partly offset by a significantly lower release of working capital in operating assets and liabilities.

Investing activities resulted in a net cash outflow of €88 million, compared with €190 million the year before. The reduction mainly reflects the absence of the €98 million capital expenditures in the discontinued operations reported a year earlier. Cash outflows from continuing operations were almost unchanged from the year before at €88 million. Proceeds from disposals of consolidated companies in the reporting year related mainly to the sale of ThyssenKrupp Steel USA, while the prior year was impacted in particular by the sale of the stainless steel business to OTK. In addition, the winding-down of the previously consolidated non-operating US subsidiary The Budd Company in a Chapter 11 case resulted in a €279 million disposal of cash and cash equivalents in the 2nd quarter 2013/2014.

Free cash flow, i.e. the sum of operating cash flows and cash flows from investing activities, increased by a total of €203 million to a positive €799 million. The absence of prior-year €293 million negative free cash flow from the discontinued operations was partly offset by a €90 million reduction in free cash flow in the continuing operations in the reporting period mainly as a result of the operating cash flow situation.

Financing activities resulted in a net cash outflow of €666 million, compared with a cash inflow of €1,051 million a year earlier. As well as the absence of cash inflows from the discontinued operations, the difference of €1,717 million included €1,478 million attributable to the continuing operations. This mainly reflected two partly offsetting effects: In the reporting year there was a €1,430 million net repayment of borrowings, while in the prior year there were net proceeds from borrowings of €1,081 million. The associated €2,511 million reduction was partly offset by cash inflows of €878 million from the capital increase carried out in December 2013.

68 Combined management report – Report on the economic position

Results of operations and financial position

Consolidated statement of cash flows

million € Year ended Sep. 30.2013* Year ended Sep. 30.2014 Net income/(loss) (1,576) 195

Adjustments to reconcile net income/(loss) to operating cash flows:

Discontinued operations (net of tax) (53) (186)

Deferred income taxes, net (280) (51)

Depreciation, amortization and impairment of non-current assets 2,069 1,147

Reversals of impairment losses of non-current assets (7) (4)

(Income)/loss from companies accounted for using the equity method, net of dividends received 113 (3)

(Gain)/loss on disposal of non-current assets (147) (305)

Changes in assets and liabilities, net of effects of acquisitions and divestitures:

- inventories 434 (30)

- trade accounts receivable 146 (409)

- accrued pension and similar obligations (142) (217)

- other provisions 355 94

- trade accounts payable (9) 474

- other assets/liabilities not related to investing or financing activities 78 182

Operating cash flows - continuing operations 981 887

Operating cash flows - discontinued operations (195) 0

Operating cash flows - total 786 887

Purchase of investments accounted for using the equity method and non-current financial assets (40) (3) Expenditures for acquisitions of consolidated companies net of cash acquired (35) 28 Capital expenditures for property, plant and equipment (inclusive of advance payments) and investment property (1,120) (1,071) Capital expenditures for intangible assets (inclusive of advance payments) (118) (95) Proceeds from disposals of investments accounted for using the equity method and non-current financial assets 30 24 Proceeds from disposals of previously consolidated companies net of cash disposed 1,098 1,249 Cash and cash equivalents disposed of due to loss of control over companies consolidated so far but not sold 0 (279) Proceeds from disposals of property, plant and equipment and investment property 88 56

Proceeds from disposals of intangible assets 5 3

Cash flows from investing activities - continuing operations (92) (88)

Cash flows from investing activities - discontinued operations (98) 0

Cash flows from investing activities - total (190) (88)

Proceeds from issuance of bonds 1,600 1,250

Repayment of bonds (1,000) (1,000)

Proceeds from liabilities to financial institutions 3,156 1,059

Repayments of liabilities to financial institutions (2,658) (2,481) (Repayments on)/proceeds from notes payable and other loans (11) (256)

Decrease in bills of exchange (6) (2)

Decrease in current securities 2 1

Proceeds from capital increases 0 878

Profit attributable to non-controlling interest (39) (33)

Expenditures for acquisitions of shares of already consolidated companies (7) (9)

Financing of discontinued operations (279) 0

Other financing activities 54 (73)

Cash flows from financing activities - continuing operations 812 (666)

Cash flows from financing activities - discontinued operations 239 0

Cash flows from financing activities - total 1,051 (666)

Net increase/(decrease) in cash and cash equivalents - total 1,647 133 Effect of exchange rate changes on cash and cash equivalents (165) 27

Cash and cash equivalents at beginning of year 2,347 3,829

Cash and cash equivalents at end of year - total 3,829 3,989

[thereof cash and cash equivalents within the disposal groups] (16) (10) [thereof cash and cash equivalents within the discontinued operations] (0) (0)

Additional information regarding cash flows from interest, dividends and income taxes which are included in operating cash flows of continuing operations:

Interest received 120 131

Interest paid (573) (515)

Dividends received 63 60

Income taxes paid (327) (345)

See Note 35 to the consolidated financial statements.

69 Combined management report – Report on the economic position

Results of operations and financial position