Letter from the Board to all employees on the current situation

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Dear employees,

The Corona pandemic still has a serious impact on all of us. Because of that we are proud of what you have achieved in the past days and weeks – not least with regard to our customers. This crisis shows what we can achieve together. We would like to thank you all for this! Because we know very well that the conditions are not always easy for you. We are doing everything we can to protect your health and limit the impact of the pandemic on the company as much as possible.

We have taken numerous measures to achieve this. For example, around 32,000 employees worldwide currently work from home. Special hygiene regulations and other protective measures have been introduced at the sites and, in particular, in ongoing production, and appropriate equipment is in use. As things stand today, around 110 of the company's employees are acutely ill with the coronavirus. Over time, many of those affected have already recovered. The total number of infections with the virus in the company worldwide is stable or even slightly declining. However, there is no reason to sound the all-clear. Unfortunately, two employees - one in Germany, one in the United Kingdom - have died in recent weeks as a result of a corona infection. We are in close contact with their families.

At the same time, the impact of the pandemic on our business is significant. Currently production has at least been reduced in almost all business segments, and numerous sites have been closed or shut down - partly because of official regulations, partly because of the decline in demand. At the beginning of May, more than 30,000 employees worldwide are on short-time work or in a comparable status. This number is likely to increase further in the coming weeks, as overtime and vacation time are often reduced first. In all our businesses, the management teams are focusing on cash/liquidity and limiting cash outflows as much as possible. All this helps to mitigate the financial impact of the pandemic on the company, but only to a limited extent. The second quarter results, which we will publish on May 12, will show the first effects of the crisis, which will present us with further challenges.

As things stand at present, we still expect the Elevator transaction to be completed on schedule. However, if the completion of the Elevator transaction is delayed and economic conditions deteriorate at the same time, thyssenkrupp may need additional funds to bridge any liquidity gap.

In the medium term, the Corona-related liquidity outflows will in all probability mean that the financial leeway from the sale of the Elevator business will be much smaller than originally anticipated. We are preparing solutions for this.    

Irrespective of these current developments, the strategy development announced for the May meeting of the Supervisory Board is largely complete. We will present the main cornerstones to you after the Supervisory Board meeting. In order to further develop the strategy and, above all, to implement it in practice, we will continue to constantly analyze and evaluate the effects of the Corona crisis and update our plans accordingly.

Dear employees,

we will keep you informed of further developments and provide you with a regular update on the situation of the company. thyssenkrupp is in a difficult economic situation. Corona is making the situation even worse. Given the seriousness of the situation, everything must be evaluated and nothing must be excluded. It is now up to all of us to deal with the crisis decisively. But first and foremost:

Stay healthy!


 

Yours sincerely

 

Martina Merz    -   Oliver Burkhard   -    Klaus Keysberg